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Organizational behaviour is the study of overall attitude and application of knowledge about people who works within the organization. After analysing the given case we can easily demonstrate the overall importance of understanding how the people of an organisation interact and how they behave in various situation. Various functional structures help to set a flexible organizational culture (Van Reenen, 2011). Besides this there are some factors which influence individual behaviour at work. Different charismatic leadership also ineluctably influence the motivational activities. Managers or upper level worker influence other workers to obtain organizational goals by giving them motivation.
In case of this report there is a practical example of a well establish company Inditex’s most renowned outlet Zara. They always prefer to make flexible and integrated organizational structure. They also give customerpreference while making their product. This case will help us to identify how to cope with the culture of an organization and also how to make effective organizational structure.
1. Requirement 1:
1.1. Compare and contrast of different organisational structures and culture:
According to (Robbins and Alexandra, 2002), organizational structures are the functional activities and working process of an organization. On the other hand organizational culture refers to different beliefs, values, norms used by the member of the organization.
Organizational structure includes work specification, chain of command, formalization, controlling power, management procedure, formalities etc. Whereas, organizational culture refers to those activities which has no obligation or don’t need to maintain protocols in the organization. This culture can be created by any of its member. It represents the way of approach and the environment which is familiar to the employees.
Griffin (2009) suggests that organizational structures are made by the top level management. It is a kind of sophisticated work. On the other hand any one can make participate with the culture of an organization.
Structural features of an organization are formal, inflexible, centralized and strictly maintained by the workers.Whereas organizational cultures are decentralized and differs the image of an organization.
Let’s have an overview of organizational structure and culture:
It is formal.
It is informal.
It is contingency-centred base.
It is ideology-centred base.
It is very much fixed.
It is so flexible.
It is documented.
It has no document, people just always used to it.
1.2 Relationship between an organisation’s structure and culture and it’s impact on the performance of the business:
Organization’s structure and culture are interlinked. Both are dependent with one another. When the structural format of a company is ambiguous and complex, the workers can’t set an easy culture. It hampers their workings. Though good culture can made by any employee but if the structure is centralized at the top, company cultures get lack of liberty. Thus workers can’t show up their potentiality. Structure reflects the values and core cultural activities of a worker.
If the top level management shrink the freedom of the workers it will not give the expected output. Culture plays vital role for obtaining success in the organisation. That’s why most of the successful organizations make smooth structure to maintain the refreshment in the working place. For example if we can analysis the given case study of Zara we can easily illuminate that. Zara rejected rigid operation and establish flexible relationship with customers.
The organization’s structure that impacts the performance of Zara:
Zara is one of the most successful sister-concern of the Inditex textile company. It uses some exceptional organizational structure. Those are given below.
Keeping control of all of its major operations expand the success of Zara.
It rejected rigid organizational structure and follows flexible structure.
It introduced just-in-time (JIT) operation in its company.
It brings new and customer oriented product.
It focuses on only what is selling at the moment.
It collects customer’s perception about the design and product. If customers are happy with the requirements then it makes large production. Thus it reduces loss and increase profit.
It always builds strong customer relationship by linking their choices with the company headquarter.
1.3. Factors which influence individual behavior at work:
Technology: Technology is the strongest factors that influence individual behaviour at work. Prior of the innovation of different technological equipment,people faced lots of difficulties in their working place. Development of information technologies and advancement of internet makes working much easier. In past people worked everything manually in hand written format. Now everything is computerized.
Safety at work: People always want safety in his or her working place. Workplace safety climate improves the skills and worker can give proper concentration.
Wealth and power: After getting proper power and sufficient financial support employees develop their potentiality.
Importance and meaningfulness of the work: If a worker understands the importance of his post and meaningfulness of the work e or she gets more enthusiasm to do that.
Motivation: after getting proper motivation to obtain the success of the company any worker spirit up his or her capabilities and tries level best performance.
2. Requirement 2:
2.1. Comparing the effectiveness of different leadership styles in different organisations:
Leader is the person who motivates and influences the mentality and working process of other people. Leadership is the process of influencing and co-operating other people to achieve the goals and objectives. Effectiveness of different leadership styles in different organisation are following.
Democratic leader: Although this type of leader makes all types of decisions but they give opportunities to the workers togive their decisions too. Under the shadow of this type of leader any worker can work freely and give own perception. This is effectivebecause the participation is large thus lots of ideas come from this process. For example: doctor of a hospital.
Bureaucratic Leadership: This type of leaders works with the constitution of the company. They observe how well the workers executed with the rules and regulation of the company and make sure that everybody follows the rules strictly (McNichol, 2007). For example Max Weber.
Autocratic leadership: In this format of leadership power is centralized to the leader (Curlette, 2009). Workers don’t have any right to oppose the decisions of the leader. It is basically effective to give punishment and labor riot in the organization. For example Donald Trump.
Laissez-faire Leadership: this is a French word which means “live it be”. It suggests that workers can do whatever they want. It is effective when the leader observes the improvement of the skill of workers. A perfect example of it is Danish government.
2.2 How organisational theory underpins the practice of management:
Organizational theory is the comprehensive study of organizations to identify the problems and improve the productivity to meet the desires of the stakeholders. Different organizational theories are given below.
Bureaucracy theory: This theory holds the rules and laws implement by the office. It helps to set the appropriate function of management.
Contingency theory: It refers to the size and portion of the company. It evaluates environmental situation which lessen the inverse position of workers.
Scientific management theory: it gives various technological supports to the managers.
Economic sociology theory: it helps to understand the socio economic situation. By implementing this theory managers can easily make the budget for the company.
Classical theory: this is the most basic approach for an organization. Organization leads towards a systematic approach by following this theory.
These above theories make the manager dexterous while making decisions. Different organizational theories suggest the way to interact to achieve success. It helps to understand the way the business should structure to make profit. Even though, in the time of recession organizational theories help to overcome the situation.
2.3 Different approaches to management used by different organisations:
Different approaches to management used by different organization includes-
Human behaviour approach: Management people gather knowledge about the behaviour of person to adapt the organizational culture.
Social system approach: It suggests that organization holds some social cultural relationship.
Socio-Technical Systems Approach: It is the combination of social system and technological system. Technical system consists of technological uses.
Decision Theory Approach: It helps managers to take effective decision makings and to reduce obstacles.
Management Science Approach: It describes how well manager use scientific approach to make innovative ideas and decisions.
Contingency or Situational Approach: Complex managerial approaches which used to take actions outside the system.
Operational Approach: Study of basic management process which evaluates the principle functions and describes the core management process.
3. Requirement 3:
3.1 different leadership style’s motivation in organisations in periods of change:
Leadership process makes revolutionary changes in organisations in last few decades. Research shows that most of the successful organization depends on the strong leadership. Though advancement of technologies companies workings are lot easier than before, but companies which have strong leaders take competitive advantage (McBain2012).
Key role of today’s organization now depends on how they are motivated. If workers are motivated properly then objectives of the company can easily obtain. True leaders take the responsibility to guide and motivate other workers.
According to Webb (2007), in last few decades the responsibility of a leader to motivate the workers is far more than before. With the change of time different leadership style also adjust with some more requirements. Motivation is the most important of them. In prior leaders just guided people and controlled them in many ways. But now leaders control workers mind by giving them motivation and inspiration.
3.2 Applications of different motivational theories within the workplace and criticism:
Motivation is a psychological process of influencing and controlling peoples mind in a certain direction. Motivational theories and its criticism are:
Frederick Herzberg’s theory: Frederick Herzberg developed a two factor model for motivation. His proposed two factors are maintenance factor (work, responsibility, promotion, growth etc.) and motivation factor (payment, strategies, environment, job salary etc.). It suggests that if the companies fulfill the maintenance factors then employees will automatically.
Criticism: this theory just focused into one factor. But it is not accurate in all occasion. Especially in this competitive world iforganizations don’t focus on all needs andrights of workers, potential workers don’t stay.
Merrill and Reid theory: This theory identifies four personal styles like driver (Action based), expressive (Perception based), amiable (Relationship based),analytical (Thinking based). The environment and the structure of the company will set in such a way thus it can fulfill those personal styles.
Criticism: Only personal styles cannot fulfill the demands of employees.
McClelland’s Theory of Motivation: This theory suggests that making connectivity in the workplace can structure the needs of employees. Achievement, power and affiliation are three basic styles of this motivation. When worker used to get these, they can improve their performance.
Criticism: If this theory is inaugurated then control will not be centralized to the authority.
3.3 Usefulness of a motivation theory for managers:
The managers can influence the following way to the employees;
Success of the manager depends on how they implement motivational theories.
Managers can solve inverse situations by applying those theories of motivation.
Managers need to treat reciprocal human being by motivating them.
Knowledge of motivational theories can restructure the techniques and evaluate success.
Motivational theories can enhance the performance of managers and give scope to take proper risks.
4. Requirement 4
4.1 Nature of groups and group behaviour within organisations:
Two or more people of an organization make a group. It is the interaction among people. Member of a group can easily influence others. Groups can be formal or informal. Formal groups are formulated according to the rules of company like management group, director group, project group etc. But formal groups are formed with the interrelation among people. Group can bedeveloped by some stages like formation,storming, norming, performing and adjourning. (Millegan and Kris, 2003)
A group of people behavior is similar in lots of case. Thus there is a mental match among the people of a certain group. Within the organization if a group people wants then they can create major impact in the organization.
Group membership can fulfill certain needs and demands. Another important part is the group leadership. In formal group there is a group leader who dominant others. Group behavior can gives up the spirit p the skills of the workers.
4.2 Factors that may promote or inhibit the development of effective teamwork in organisations:
A group of two or more people when works to achieve specific goal of an organization is called teamwork .Severalfactors whichpromote or inhibit the development of effective teamwork are given below.
Training: Proper training must make an employee more accurate in his or her work. It upholds the perfection of critical situation.
Delegation: If a worker is well known about his own responsibility then it makes the job much easier. Otherwise situation may be scattered.
Patience: When any worker of a team cannot control the emotion then it may affect other team member’s performance.
Incentives: To enhance high performance, people of a team need to get some short term or long term incentives.
Motivation: It always increases the potentiality of a worker otherwise teamwork may hamper or looks very much pedestrian.
In the given case we realize how well Zara execute their teamwork. The store managers always gather information about customer’s choice and quickly give that information to headquarter. Thus its designer can make new model for the desire of customer. Zara focused on flexible and integrated organizational structure. It avoids rigid structure thus worker can operate smoothly. Its workers have exclusive communication among them which promote their effective teamwork.Concisely if we approach total procedure of Zara it is very clean that its team spirit and rules of communication is very flexible and authentic.
4.3 Impact of technology on team functioning within an organization:
Technology is the most effective equipment in this world of globalization (MacLeod, 2009). Advancement of technology enhances the teamwork. Without the development of technology no organization can coordinate team functioning. It creates the acceptance towards customers. If we compare with Samsung companies technological view it will be lot more easily. In the beginning of Samsung company, there was doubt that weather they can stay in the competition. But because of its technological advancement and proper strategy now it is one of the best electrical organizations.
Samsung invents new addition of technology day by day like galaxy tab, i-pod, smooth monitor etc. in its working place it also gives proper support to its employees. Thus they work flexibly and coordinate with each other smoothly. Technological support makes a proper blend of accurate team functioning in Samsung.
If I am the Human Resource Manager of Wal-Mart then I would identify the lacking’s of worker. I will always try to solve the demands and expectation of workers. As our company gives customers good product with low price, thus I always give motivation to workers to increase sales volume. My target will be to make sure that every worker can fulfill his own responsibility. If each and every worker is perfect from his own position than ultimate goal will be obtain.
To understand the overall scenario of an organization, study of organizational behavior is obligatory. Without the clear concept of it no organization can improve rapidly. The purpose is making sure that every employee is concern about the structure, rules and the culture of the company. If we can make sure about the understanding of it then the organization must be derived to the right pathway.
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