Organizational behavior refers to systematic study that focuses on how people individually or in group behave within the organization. It is also concerned with what an individual do in an organization and how their interpersonal processes and behavior affect the organizational performance. It is important for every organization to identify the behavior of their employees and its impact on the organizational effectiveness. Capco is a leading international company that provides solutions to financial services sector that includes banking or financial institutions. The company has 20 offices around the world with 2000 employees working in the company. In the year 2013, company ranked 27th among the 100 best companies to work for which was listed by the Sunday times. Report also understands the different approaches to management and leadership within the organization. The report also focuses on usefulness of motivational theories in the organization.
There are several organizational structures and cultures that an organization follows to render quality services to the market customers and clients. Every organization has own defined structure and culture that they follow for their smooth functioning. Organizational culture refers to the values, behavior and beliefs of the organizational employees. While, organizational structure refers to the hierarchy of the tasks, roles and responsibilities so that they should achieve objectives.
The Capco Company focuses on flat organizational structure as this structure consists of fewer layers of management (Badre, 2008). Company follows top to bottom chain of command at their workplace. As these structures have few layers so flow of information and communication network is effective and clear. Capco has flat organizational structure then company's culture concentrate on role culture. In the organizational culture company is assigns a specific job or role to every individuals. Company pursuing role culture will spread the tasks among their employees and assure that all tasks are covered among their employees with no duplication (Holloway, 2012).
Boston Consultancy is among the leading international consultancy firm with 80 offices in different countries. They render their services to many businesses, government and financial institute. Boston Consultancy firm posses tall organizational structure with many layers of management that leads to ineffective flow of information from one level to another. Company with tall hierarchy follows power culture at their workplace. Boston consultancy with this type of organizational culture respond to the events very quickly but the employees will depend heavily upon the top management decision. All decisions in the Boston consultancy group emit from the center authority.
Effective Organizational structure and culture of Capco Company will benefit by improving their performance in the competitive market (Hoon Yang, Lee and Lee, 2007). Organizational structure is an essential part of organizational culture. For example, if Capco has good organizational structure than it will lead the organization in achieving their goals and objectives that is to meet the expectation of their clients and customers. Strong organizational culture also helps the Capco to motivate their employees to render quality service in the organization.
Relationship between organizational structure and its culture have direct impact on the performance of the business. It leads to effective motivation. Proper organizational structure and culture will help the employees to feel motivated and improve their performance so that it directly affects the performance of business in the market situation. Motivated employee will contribute their best in accomplishing the goals by satisfying market customers (Smelser, 2011).
Every individual working in the company possesses different behavior from each other. Individual behavior will help the Capco in contributing to their success in the UK market. There are several factors that influence the individual behavior at the Capco Company. These are:
Every organization has different leadership styles like autocratic, participative and free-rein style of leadership (Smelser, 2011). These three leadership style have own importance in the organization. As Capco Company focuses on adopting participative style of leadership because company provide climate to their employees so that they are free to ask any questions and also suggests improvements for the company so that they should meet the challenging needs of the financial services industry. Here, in company managers focuses on bottom up approach of leadership with little bureaucracy (Cummings and Worley, 2014). The participative leadership style will help the Capco company in encouraging creativity as it empower their employees to give suggestions and advice that help company in being more efficient. While, Boston consultancy group adopt the free rein leadership style, because the firm focuses on creative employees to take decisions by their own. Company provides complete freedom to their employees so that they should solve their problem by their own.
Both the organization follows their leadership style but participative style is best suited for every organization because it encourages their employee to contribute their ideas and suggestions for improving their Company performance.
Organizational theory supports the practice of management at the Capco Company. Organizational theory studies the organizational structure, behavior of individuals and group that help the organization to cope with the continuous change. Each theory focuses on the various ways in which organization can be made effective. The various theories that support the practice of management include:
Every organization follows different approaches to management to improve their performance so that they should attain success in the competitive environment (Gelfand, Erez and Aycan, 2007). The different approaches to management include Capco company focuses on bureaucratic approach to management as it focuses on defining hierarchical structure within an organization. The employees are given specific tasks and duties to be performed. This approach to management focuses on defined rules and norms that every employee has to follows. Capco Company ensures flat organizational structure that focuses on fewer layer of management so decisions power is with the higher authority.
Scientific management approach is an oldest management theory that examines the work flow in the Capco to improve efficiency and labor productivity. The management approach focuses on accomplishing the goals by reducing wastage, increase the method of production and effective distribution of products (Holloway, 2012).
Basically there are three leadership styles that organization focuses in period of change. These different leadership styles like autocratic, participative and laissez-faire. These styles have direct impact on the motivation in the organization at the time of changes:
Autocratic style: If the Capco possess autocratic style of leadership then they should motivate their employees by using soft approach, this will help their employee to feel the sense of belonging towards the organization. Autocratic style follows that power which are with the manager so they might threaten their employees to cope up with the change but autocratic leaders should decrease pressure or ensure less control on the employees so they feel motivated to cope up with the change (Gallistel, 2013).
Participative style: Capco focuses on participative leadership style which can easily motivate their employees by encouraging them by giving more advice and suggestions for the company to cope up with the change. Impact of this leadership style has positive impact on the motivation so that employees should adopt the change. Participative leaders should encourage them in decision making process that ensures the personal involvement and positive outcome to adopt the change.
Laissez-faire style: Laissez-faire leadership style focuses on delegating authority to all their employees so that they should make their own decisions that are effective for the Capco (Helbing, Yu and Rauhut, 2011). This leadership style also has positive impact on the motivation of their employees as they have total freedom to take their decisions so they should by their own adopt the changing situation. These styles ensure trust among the employees so leaders are not required to motivate their employees.
Maslow theory focuses that individual at the workplace is being motivated to accomplish their certain needs. It focuses on five motivational needs of an individual that is being divided into physiological needs, safety, social, self-esteem and self-actualization needs. By applying this motivational theory in the Capco will have direct impact on their productivity (Zellars, Tepper and Duffy, 2002).
Capco faces two work situations in their company that is work load and need for innovation to meet the expectations of their Client Company or customers. For adopting these two situations in the Capco they should motivate their employees by applying Maslow need hierarchy theory (Brewis and et.al., 2007). For the situation of overcoming the work load:
Another work situation in the Capco includes need for the innovation in rendering services to their market customers. Manager should adopt the Maslow need hierarchy theory to motivate their employees in encouraging their creativity and innovation at the workplace.
Motivational theories help in understanding the main motivational driving force, so that managers can manage the individual or group more effectively. Capco Company can use various motivational theories for their managers so that they should manage their workforce by meeting their needs (Griffin and Moorhead, 2011). There are two theories that Capco should use for their managers that are:
Herzberg's Motivation-Hygiene theory: Herzberg's two factor theory concludes that there are two factors that help the employees in motivating to adopt the change for their lifetime. These two factors are termed as motivators (Satisfiers) and Hygiene factors (dissatisfiers). Usefulness of motivational theory for their manager includes:
McGregor's Theory X and Y: McGregor's theory X focuses that individual working in the company is lazy and are not interested in their job. Hence, Manager will result in adopting autocratic style of leadership so that they should make employee work. Capco managers will rely on punishment or penalty to make employee work. While, theory Y assumes that employees in the Capco is self motivated and passionate enough to perform their job efficiently. Theory Y manager believes that employees possess ability to solve their problem by own. They exercise self control and direction to achieve the objectives. Usefulness of this theory for managers is:
Groups in the organization will help in completing the various tasks to achieve the organizational common objectives. Capco Company focuses on forming groups at the workplace because their projects require variety of skills and abilities. Quality of group within the Capco will lead to the development stages:
Forming: The first stage in group development includes forming, this means new groups are formed in the Capco. They need strong leader that can help the group to move ahead within the organization to accomplish the goals (Uddaby, Greenwood and Wilderom, 2008).
Storming: Once the team has been formed now they need to handle the conflicts and disagreements in the group. At this stage group member needs to resolve the conflict in the team member.
Norming: At this stage conflicts are settled in the group. Team members learn to solve the problem which arises at the team level. At this stage of development team member feels empowered and leaders became less directive.
Performing: This stage ensure higher level of performance while processing their strength and weakness in achieving company goals and objectives. At this stage it is difficult to identify the actual leaders (Green-Raleigh, Carter and Petrini, 2006).
Adjourning: Adjourning stage is the last stage in group development because at this stage group life comes to an end. Group member leaves the group after accomplishing the goals and objectives.
Group behavior within the Capco company will lead to give more freedom to their employees because in the group each and every member in the group have right to take their own decisions. Group behavior also help in building commitment towards the company because group members while accomplishing to their individual goals will directly contribute in achieving overall common goals of the company (Moideenkutty and et.al., 2005). Sometimes group behavior in the Capco Company will also lead to ensure more conflict within the group because group consists of different behavior employees with their own values and beliefs that help in influencing the group decisions.
Effective teamwork will lead to obtain productive results, lesser internal conflicts lead to pleasant work experience. Capco Company focuses on forming teamwork in the workplace so that they should effectively and efficiently contribute in meeting the demands of market customer (Hatch, 2012). There are certain factors that promote the development of teamwork include:
Leadership: Leadership is the main factor that helps to promote the development of effective teamwork because leader is the one who handles the group member and motivate them to achieve the goals and objectives. Capco Company needs the effective leader that manages the conflicts and problem within the team members and helps them in developing their skills.
Effective communication: Communication is the core factor that helps in promoting teamwork within the Capco Company. Teamwork within the workplace will lead to enhances productivity and also increases the staff efficiency by completing the tasks in the group (Adler and Gundersen, 2007). Effective communication methods and mediums will contribute in accomplishing productive results. Any challenges or problem arises in the group or between the team members then through effective communication they should overcome the challenges or problems.
Conflict solving: Conflict solving strategies also help in promoting development of teamwork. Conflict may arise in the group which will lead to inappropriate results that help in lowering down the performance of Capco. So, leader must possess conflict solving skills to promote development of teamwork.
With the changing technological environment, company need to insure flexible process and procedures within the Capco so that they should come up with the technological change (Hasenfeld, 2009). The positive impact of technology on team functioning within Capco includes:
Quickly transfers the information: With the technological advancement in Capco company, it will positively impact on team functioning. With the upgraded technology it will help in quickly transferring the information within the various teams and department. Capco can use email to communicate with their team members and various departments within the organization (Hoon Yang, Lee and Lee, 2007).
Easy Communication: Technology also helps the Capco Company in enhancing their communicating process between their employees. Manager should also use technology like teleconferencing, video conferencing to transfer information from one team to another.
Storing the data: The impact of technology has positive impact on the team functioning as with the upgraded technology is easier for the team members to store their relevant data and information in the computer system so that it won't get corrupted or misplace. Technology helps in smooth functioning of teams within the Capco (Weerawardena and Mort, 2006).
With the positive impact of technology there are certain negative impact of technology on team functioning within the Capco include:
Privacy and hacking: With the increasing computer technology the Capco manager focuses on storing, rectifying and modifying the relevant data in the computer system. With the rapid change in technology, the competitors are hacking and corrupting the data that are stored in the computer. This act as a negative impact of adopting technology in the Capco.
Misrepresentation: By using the technology misrepresentation occurs very easily. As offer letter, letter heads are stored in the computer and it should be easily modified and this lead to fraud (Treven, Mulej and Lynn, 2006).
Report has concluded that the relationship between the organizational structure and culture can directly impact on the performance of the business within the UK market. It has also concluded that the organizational theories like classical theory and bureaucratic theory supports the practice of management in the given organization. It also focuses on the impact of different leadership styles that may have on motivation of their employees in the organization. Lastly, the report has suggested the various factors that promote the development of effective teamwork in organization.