How Organisational Theory Underpins The Practice Of Management Business Essay
The most significant motive of this assignment is to look into distinct concepts in Organizational behaviour. I, Shizad, will look into distinct tendency in the subject. Organizational behaviour basically means a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.
On this assignment task 01 analyzes about the structure and the culture of the organization and the relationship between the structure and the culture two different organizations. It also talks about the factors that influence the work behaviour of this organization. Here also we are considering the leadership styles and the technological level of the businesses. Finally should apply motivation theories to these businesses.
Task 02 analyzes the organizational theories, principles and practiced which are used in the modern day organization. We have to evaluate these tasks in practice on the businesses which I have chosen. Here we should consider the businesses’ labour turnover, nature of the business, effective team work.
Introduction to American & Efird Lanka
A&E is in the textile industry for more than 120 years and remains one of the largest textile manufacturers in the world. A&E was formed in 1891 and became popular and successful. In 1947 the company bought controlling interest in Efird Manufacturing. After merging American Yarn Processing and Efird Manufacturing in 1952, the company name changed to American & Efird® Mills, Inc.
Leading edge technology, orchestrated delivery logistics, continuous and sustained innovation, peak process efficiency, dedicated and flexible service and wide spectrum product portfolio are some of the key words in the A & E lexicon. It always recognized that innovating and creating industry leading products needs to be closely coupled with dependability and on-time delivery to ensure success
Introduction to Texwin Clothing (Pvt) Ltd
Texwin Clothing (Pvt) Ltd is situated at the remote village - Pulasthigama which is approximately about 40 km from Polonnaruwa town in a land which is spread out to 2 acres. Texwin Clothing (Pvt) Ltd is a subsidiary organization of Winter Quilts Group of Companies, which has its main plant in Dehiwala, with two other subsidiary factories, Lankapura Apparels, located in Hingurakgoda, Polonnaruwa. The manufacturing plant of Texwin Clothing (Pvt).Ltd is a well – planned and organized one with adequate space for manufacturing units with very good ventilation and safety. Texwin Clothing (Pvt).Ltd is in a remote area it can be graded as one of the Best Garment manufacturing plants which exports about 4 containers weekly.
LO1 Understand the relationship between organisational structure and culture
Organisational Structure and Cultures of both companies
American & Efird Lanka’s Organisational Structure – Hierarchical Structure
Figure - Organisational Structure of A&E
American & Efird Lanka’s Culture
In this business the work load to the employees is very high, the employees have lot of work to do and de-motivated. There is pressure passed down to the sub-ordinates from the senior supervisors. There are many Inter-dependant conflicts within the organisation. More responsibilities are given to the employees; this will de-motivate some workers because they may not be willing to take responsibilities (Theory X Workers), and some others workers will be motivated because they like responsibilities (Theory Y Workers).
Texwin Clothing (Pvt)’s Organisational Structure
Texwin Clothing (Pvt). Ltd has its work divided according to function, and in this case the work is shared among three departments under three mangers, i.e.: the Production Manager, the Human Resource and Administrative Manager and the Quality Assurance Manager, who in turn have the responsibility over various sub - groups under the main department. This type of structure enables a particular employee to gain more expertise and specialization in a particular field.
As an example, The General Operations department, the Training and Development Unit, and the Shift Operations Unit are directly under the control of the Human Resources Manager, and the employees of each of the sub – units are able to gain expertise in the particular area, and will not have to worry about the work handled in any other department, thus enabling the employees in each unit to carry out their tasks in an efficient and effective manner.
Texwin Clothing (Pvt)’s Culture
Texwin represents a role culture, where every individual is assigned a particular role. In this particular culture they have the benefit of specialization. Texwin is a lot conscious about punctuality as time management in a garment factory is of great importance in order to produce the targeted amount of garments each day. Also, there is a particular Training and Development Dept. at Texwin which specializes in developing the skills of the employees.
The physical structure of Texwin symbolizes the company’s underlying values and beliefs. Texwin, as was stated before, is a one storey building, with all of its departments spread out in a particular order, so that efficiency is maintained. Also, there is a large back garden at Texwin, where the employees can relax after a busy work.
Similarities of Organisational Structure and Culture of both Companies
Both the companies are engaged in Functional Structure, this is where with fewer and fewer people on each higher level.
Both companies are considering Human Resource Department which is very important.
Role culture – Everyone are given a particular responsibility to perform.
Differences of Organisational Structure and Culture of both Companies
A&E Company is exporting and has a wide culture, but Texwin is and have a friendly culture.
There are many various departments in both companies.
Impact of Organisational Structure and Culture on the performance of the business
The successfulness of the organization depends on the culture and the structure of the business. If the company has a great culture and structure, the employees are more likely to be motivated. For example if the structure of the business is good, the employees will feel and they their own can analyze the direction they are going. As surely a good organizational structure will drive the organization towards its goals and objectives. Furthermore, a strong culture also might improve the motivation of its employees.
There can be seen a decentralized structure. It enables decisions to be made closer to the operational level of work.
Accountability and responsiveness is higher.
Always make higher performances.
More keeping with developments and more flexible structures.
Effective motivation and encouragement can be done.
Time is managed efficiently various duties and responsibilities have distributed.
Disagreements are less because decision making is done with other party’s involvement.
Functions can be isolated due to some failures of communication and technological issues.
This is not stable for urgent situations.
There can be occur competitions among each department than concentrating the overall achievement of the organization.
How Organisational theory underpins the practice of management
A&E Company and Texwin Clothing Company are both using scientific management approach. Managing an organization is not an easy task. Management has a number of functions. For example, organizing, controlling, coordinating etc.
Figure - Management Approaches
Scientific management principles (Fredrick Taylor - 1900)
The management theory of Taylor helps to improve the efficiency through observation and improvements. When we analyze both companies it seems A&E highly practices all the scientific management principles of Taylor.
Idea was to improve how workers got the job done and to make sure management got the best from their workers. Therefore productivity will be effective and efficient.
This approach persuades the management into adopting a more positive job in leadership.
It contributes to key improvement in physical working environment for the workers.
It reduces the workers role because more decisions are taken by the leaders.
It makes planning and control exclusively in the hands of the management.
1.4 Different Management Approaches
Bureaucracy is the structure and set of regulations in place to control activity, usually in large organizations and government. Max Weber outlined the key characteristics of a bureaucracy:
Human Relations Approach:
The human relations approach argues that people are emotional rather than economic - rational beings; organizations are cooperative social systems rather than mechanical ones; and organizations are composed of informal structures, rules, and norms as well as formal practices and procedures.
People built up organization in order to perform well and to increase profit. So to improve the performance, organization should be managed properly. So in order to manage organization or improve the performance of management, organizations can use different management thoughts or theories.
2.1 Leadership Style in both companies and effectiveness of them
American & Efird Lanka and Texwin Clothing are using Democratic leadership styles. In this style of leadership that keeps all decision making at the centre of the organisation. This style of management does have low motivation and likely one-way communication. Managers using the leadership need good communication skills and able to explain issues clearly and understand responses from others.
Two-way communication which allows feedback
Workers are fully involved into business
Discussing with workers may take long time
High level of involvement may release top secrets
More production, therefore very suitable for this business.
Need flexible and experienced workers
Figure - Democratic Leadership
2.2 Different leadership styles to management
Leader takes all decisions
Gives little information to staff
Supervises workers closely
Mostly one-way communication
De-motivates staff who wants to accept responsibilities
Won’t be suitable to all employees (Theory Y workers)
Would be best to the theory X workers.
Managers do want they think is best for workers
Some consultation might take place
Managers want workers to be happy in their jobs
Some workers will be dissatisfied with the apparent attempts to consult
Used by managers who have a genuine concern for workers’ interests, but feel that ‘managers know best’ in the end.
Managers delegate virtually all authority and decision
Very broad criteria might be established for the staff to work within
Workers may not appreciate the lack of structure
Lack of feedback as managers will not be monitoring closely
When managers are too lazy or busy to intervene
Good to this business
Figure - Leadership Styles
Finally I would say that Democratic Leadership Style is the best because it allows the subordinates to come up into the decision making power and allow them to bring innovative ideas. This style also leads to higher productivity because employees feel they are committed and involved with the project.
2.3 How different Leadership Styles motivate Employees
How employees are motivates:
Total freedom is given to the employees therefore they will try to work hard when there is a breakdown in technology.
Most people don't like supervisors, so this management style ensures trust in the workers.
How employees are motivated:
High Employee commitment, because of job security as they are for lifetime.
Increases efficiency because they all work uniformly.
Rules will make them to work uniformly.
How employees are motivated:
This soft approach will motivate them because they will feel that they are also a part of the business.
Less communication gap, therefore employees and top management can easily communicate.
How employees are motivated:
Decreased pressure due to less control because the manager is responsible.
Hard approach will make the employees to work hard and somehow try to finish the task and take corrective action to solve the breakdown.
3.1 Motivational Theories
Motivation of workers has direct impact on the productivity of the business.
Figure - Motivational Theories
3.2 Usefulness in carrying out his job responsibilities effectively
The employees are made responsible to carry out PEST control on disease carrying insects. In order to achieve this objective and to keep the employees motivated the first two levels of Maslow’s hierarchy can be used as follows
The basic pay of the employees can be increased or in addition to the basic pay an overtime rate can be paid. The facilities such as a balanced meal can be provided during the time they are on over time as to encourage them. The time can be allocated among each and every employee as to give them a break in between the tiring work they do. This shows the organization is concerned about the employees and will lead to motivation.
While they are at work, they can be provided with necessary instruments and equipments to keep them safe such as face masks, gloves and etc. Also it is better to give them a proper training and development program at the beginning of their recruitment. They will be educated to work in a safety background and how to use pesticides and fertilizers carefully. In addition to these each and every employee can be provided with a hand book which gives brief information on how to deal with these kinds of poisonous chemicals. Then the number of accidents during working hours will be reduced.
Rather than providing safety only to workers, their families can also be looked after by providing medical schemes, life insurance as well as health and safety insurance. Also the workers can be motivated by granting them a certain percentage of the company’s profit in order to make them feel them that they are secured and are part of the organization.
4.1 “Individual behaviour is influenced by many variables at work”
Every worker has a unique behavior within the firm because various components influence them. This factor depends on their personality and perception. There are some common factors which affect the employee behavior in a working environment.
1. Demographic factors: The demographic factors are socio economic background, education, nationality, race, age, sex etc. Organizations prefer people, who belong or who has a better socio economical background, such as well educated, people who are in their young age, and people who have more experience etc. when they are to be carried out better believed, than the other.
2. Personality: Personality can be defined as the study of the traits and the distinguishing characteristics of an individual, the internal affairs between them and the way, which a person answers to other people and situations. That several factors, that influence the personality of an individual, are transmission, family, company, culture and situation. It can be concluded that the study of personality characteristics offers an opportunity to understand the Individuals. It helps them orderly in the leading of its effort and moving it for the achievement of the organizational goal on.
3. Perception: The cognitive procedure of using the 5 senses for interpreting of the environment stimuli in a meaningful way designated is called perception. Each individual on the basis his/her reference can organize on that and can interpret environment changes. There are many factors that influence the perception of an individual. It is important to manger, to create the favorable work environment so that employees perceive it in most favorable way. The employees are probably, to carry out better if they will perceive it in a positive way.
4. Attitudes: The physical capacity of an individual to make something can be named as ability. The individual behavior and the achievement are influenced with the abilities. A person can carry out well in the organization if his abilities with the task condition are adapted. The managers play important role in the matching of the abilities of the employee with the special task condition.
4.2 Nature of groups and group behaviour within A
Group is the gathering of people in order to do a particular task and achieve a common objective. There are various stages in groups;
Group behaviour within A&E
More freedom given to the employees therefore members have their rights to take decisions within the group.
Focused on the same objective in order to achieve a common goal.
More conflicts within the group.
4.3 Factors that may promote effective teamwork
Effective teamwork is very important to any business as they will lead to higher productivity.
Excellent leadership: This is one of the main components of an effective teamwork. The leader should always motivate the employees and should always bounce back when there is a failure.
Good Communication: This is very important to the business. In a teamwork a very good communication is required because to avoid conflicts and misunderstandings.
Conflict resolution: The leader should be able to resolve the conflicts between the members in the team.
4.4 Technological affect on team functioning
Since this is a multinational company, technology plays a very big role here.
Electronic Mail (e-mail): emails can have a positive impact on the organization as it allows asynchronous communication. This helps team members to communicate effectively without being communicated face to face. This means team members need not to be in the same place and the same time to communicate with each other effectively
Videoconferencing: This will enable the employees to communicate face to face, showing the body languages and will be very useful.
Teleconferencing: This is the cheapest method compared to others.
Social Websites: This will enable the members to share pictures, videos and documents among them.
Privacy & hacking: this is also a negative impact. Today due to technology a person can hack the overall business strategies and documents. Not only technology due to rapid change over competition, the competitors hack each other’s privacy through employees also. Therefore the organizations should take this as a negative impact though the new innovation of technology is on rise.
Technical failure: as the organization is a cross functional organization the lack of communication will be a failure towards the organization, as the communication process leads on emails and networks through technology.
Forgery and misleading may happen: by the use of the technology the forgery can take place easily. The letter heads of the organization can be easily changed and drafted as original. This will have an error in the procurement department of the organization.
This report analyses organisational structures and culture of American & Efird Lanka and Texwin Clothing Companies. Hence the degree to which these structures arrange can help company operations and to reach it customer expectations as well as the changes of the existing market. Besides, organizational structure and the culture is the major two facilitator of the business success of both companies. Effective teams have a high success rate than a normal team as they includes many expertise from different department, according the case from different countries which had resulted in increasing number of organizations using effective teamwork to handle their important projects.
We learned that success of every business comes from failure and for every success, leaders learn from failures and reflect and implement strategies by facing various challenges. Thus, the organization comes to know why loss of performance in the way of success with the help of survey done by managers in different teams across the countries. Factors proven which threaten the success in terms of performance are recommended to act upon each issue reported on the results of survey equally. In fact, different leadership styles and motivational theories must be acted correctly in different stages of implementing the recommended plan.
Technology is used by many individuals and organizations to make the complicated work easier .Company’s in today’s world are highly investing on technology and builds their strengths and competitive advantages by using latest technological equipments so it is very important for every company acquire the best technology to the company before competitors’ does. The company can use the recommended technological improvements which can help will help the entire organization improve performances. Any organization without technology in this turbulent world will not survive. Therefore the effective teams can enjoy and improve their performances according to the recommended solution of technology.
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