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Ans1a) Organizational culture is an idea in the field of Organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization."
This definition continues to explain organizational values also known as "beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develop organizational norms, guidelines or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another."
Organizational culture is not the same as corporate culture. It is wider and deeper concepts, something that an organization 'is' rather than what it 'has' (according to Buchanan and Huczynski)"Organizational behaviour: an introductory text" A Huczynski, DA Buchanan - 2007 - Financial Times/Prentice Hall}.
Corporate culture is the total sum of the values, customs, traditions and meanings that make a company unique. Corporate culture is often called "the character of an organization" since it embodies the vision of the company's founders. The values of a corporate culture influence the ethical standards within a corporation, as well as managerial behavior.
Senior management may try to determine a corporate culture. They may wish to impose corporate values and standards of behavior that specifically reflect the objectives of the organization. In addition, there will also be an extant internal culture within the workforce. Work-groups within the organization have their own behavioral quirks and interactions which, to an extent, affect the whole system. Roger Harrison's four-culture typology, and adapted by Charles Handy, suggests that unlike organizational culture, corporate culture can be 'imported'. For example, computer technicians will have expertise, language and behaviors gained independently of the organization, but their presence can influence the culture of the organization as a whole.
Ans1b) From the analysis of the Phrase "Provided the underlying culture is strong, a bad patch will sooner or later end. Properly regarded, setbacks can be instructive. Enduring cultures regard them not as calamities but challenges, and absorb their lessonsâ€¦.." We can hypothesise that 'underlying culture 'refers to organisational culture; 'bad patch' refers to a period where business performance is low or employees are moving away form the organisational culture resulting in low business performance; 'Properly regarded, setbacks can be instructive' means that the organisation can learn from their mistakes and overcoming obstacles, and 'Enduring cultures' are cultures that are long lasting in the organisation. Substituting translations into the above mentioned phrase, it would state that: once organisational culture is strong and lasting, periods of low business performance will soon end, the organisation will learn from its mistakes and overcome challenges.
This paper proposes to critically evaluate how structure and culture of organisations affect their business performance and individual behaviour in the workplace by: defining structure and identify four types of organisational structures, defining culture and identify the types and different dimensions of culture, Defining business performance and identifying and analyzing the factors influencing individual behaviour at work. Furthermore it will seek to compare and contrast the different organisational structures and organisational culture. Analyze the relationship between organisational structures and organisational culture and its effects on business performance. Additionally the learning cycle will be defined and it will be used to show how structure affects an individual's behaviour at work and along with the other factors that will be identified and with the different types of culture show how this affects business performance. Upon completion of this, recommendations will be made for improving...
Ans2a) Organizational studies, organizational behaviour, and organizational theory is the systematic study and careful application of knowledge about how people - as individuals and as groups - act within organizations. Organizational Behaviour studies encompasses the study of organizations from multiple viewpoints, methods, and levels of analysis. For instance, one textbook  divides these multiple viewpoints into three perspectives: modern, symbolic, and postmodern. Another traditional distinction, present especially in American academia, is between the study of "micro" organizational behavior -- which refers to individual and group dynamics in an organizational setting -- and "macro" organizational theory which studies whole organizations, how they adapt, and the strategies and structures that guide them. To this distinction, some scholars have added an interest in "meso" -- primarily interested in power, culture, and the networks of individuals and units in organizations -- and "field" level analysis which study how whole populations of organizations interact. In Europe these distinctions do exist as well, but are more rarely reflected in departmental divisions.
Whenever people interact in organizations, many factors come into play. Modern organizational studies attempt to understand and model these factors. Like all modernist social sciences, organizational studies seek to control, predict, and explain. There is some controversy over the ethics of controlling workers' behaviour. As such, organizational behaviour or OB (and its cousin, Industrial psychology) have at times been accused of being the scientific tool of the powerful. Those accusations notwithstanding, OB can play a major role in organizational development and success.
One of the main goals of organizational theorists is, according to Simms (1994) "to revitalize organizational theory and develop a better conceptualization of organizational life." An organizational theorist should carefully consider levels assumptions being made in theory, and is concerned to help managers and administrators.
Ans2b) An organization (or organisation - see spelling differences) is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. The word itself is derived from the Greek word á½„ÏÎ³Î±Î½Î¿Î½ (organon [itself derived from the better-known word á¼”ÏÎ³Î¿Î½ ergon - work; deed - > ergonomics, etc]) meaning tool.
In the social sciences, organizations are studied by researchers from several disciplines, the most common of which are sociology, economics, political science, psychology, management, and organizational communication. The broad area is commonly referred to as organizational studies, organizational behavior or organization analysis. Therefore, a number of different theories and perspectives exist, some of which are compatible,
Organization - process-related: an entity is being (re-)organized (organization as task or action).
Organization - functional: organization as a function of how entities like businesses or state authorities are used (organization as a permanent structure).
Organization - institutional: an entity is an organization (organization as an actual purposeful structure within a social context
Ans 3a) Motivation - A Transformational Leadership Skill1
How many times have you awakened in the morning and did not want to go to work? But you went in
anyway, not because you wanted to or had to, but because your commitment to the organizational goal
and the leadership was important. That is the effect of transformational leadership, it motivates you not
only to believe in the vision, but also to commit and stay the course until the goal has been attained. The
ability to motivate, inspire, and coach followers to want to go the extra mile and find the energy to
attain or maintain competitive advantage in this global economy is not an anomaly, but a necessity.
Combine these characteristics with the ability to set a clear direction and create an organizational
culture where everyone is aware of their contribution, and you have a recipe for success.
How do we define transformational leaders?
Over the last two decades there has been an emergence of a relatively new leadership theory known as
"transformational" leadership. A transformational leader not only formulates and articulates a vision,
he/she also delegates responsibility, assigns accountability and develops their followers. Researchers
such as Titchy and Devanna identified transformational leadership as "when a leader transforms, or
changes, his or her followers in three important ways that together result in followers trusting the
leader, performing behaviors that contribute to the achievement of organizational goals". Lewin's study
on leadership shows that this leadership style is the most practical, because the leader not only
transforms the organization, but the followers and themselves. A Transformational leader offers
guidance to followers, participates in the group as a follower and requests input from members, As a
result, followers are more engaged in the process, better motivated and creative.
Shamir, House and Arthur in their article for the Journal of Organization Science concurs with Titchy and
Devanna, but adds that a transformational leader enhances follower emotions with respect to the vision
and goal, instills an emotional attachment through trust and confidence in their leadership.
Transformational leaders are leaders as well as colleagues that collaborate with their team and
disseminate information and communicate feedback on a timely basis because their focus is on
changing "the needs, values, preferences and aspirations of followers from self interests to collective
interests", continues Shamir, House and Arthur on the development of the different ways in which
transformational leaders strive to refocus followers intrinsic motivation.
Motivation: What motivates people?
Motivation is a collection of learned attitudes and beliefs suggests Success Performance Solutions, a
Consulting firm in Lancaster, PA. Or the manner in which an individual is driven towards a goal, what
keeps one going even in the face of adversity, the reason one sticks to a leader or gives a little more to a
project. Psychologists often refer to the motivators as the initiators of behavior because they give us a
1R. Kenny Leblanc is a communication professor in the South Florida area. She has a fundamental
interest in leadership formation, training, and succession planning. Currently Ms. Leblanc is a doctoral
student majoring in Strategic Leadership.
sense of satisfaction and accomplishment. They add depth and breadth to behaviors by providing insight
into "why we do what we do." While, most behavioral theories include motivation as a function of
primary drives such as hunger, sex, sleep, or comfort. Weiner points out that behavioral theories tend to
focus on either intrinsic (fundamental) or extrinsic (inessential) motivators which have also been
associated with arousal, attention, anxiety, and feedback/reinforcement.
Motivation is commonly defined as getting people to do what you want them to do, either through
persuasion (getting their cooperation) or incentive (monetary reward). There are a multitude of positive
and negative motivators and it is a pivotal concept in most leadership theories. Traditionally, leaders use
power as a form of motivation either through coercion or influence. Transactional leaders on the other
hand use more than rewards to motivate employees. This leadership style is not a style that has a blame
factor when goals are not attained or plans go wrong; rather this style is useful when leaders trust and
have a high level of confidence in his/her followers.
Individuals and corporations use motivators for goal setting, leadership development and organizational
culture. The incentives are seen in Ames and Ames' cognitive theories which deal with intrinsic
motivation such as goal-setting acts and goals (personal or organizational).
Studies indicate that motivators are flexible and vary depending on the structure and culture of the
organization. As a result this allows employees to adapt to the motivational system of an organization.
Alderfer's ERG Theory, states that the motivation for achievement is a function of an individual's self
The types of motivators (financial or status) are clearly defined by Hull's drive reduction theory. Tolman
states that an individual's crucial drive is an intrinsic motivation creating an internal state such as wants
or needs. The rewards and recognition (monetary and nonfinancial) persuade individuals to pursue their
goals by aligning their personal goals with the goals of the organization. Transformational leaders need
to be aware that, motivators are not only in the form of monetary rewards; they also encompass the
goals that people want to attain including experience benefits, organizational position (title), and career
opportunities such as coaching and mentoring. McClelland's Theory explains that motivators are a
reflection of personality characteristics that are acquired through experiences, expectancies, and
achievements. Thus, as individuals grow and change, the motivators use by the leadership must also
change in order to satisfy their needs and wants.
The fit: leadership style and organizational structure
William Quisenberry wrote in Helium that "Motivation is essentially described by the textbook as 'the
extent to which persistent effort is directed towards a goal.'" Essentially, it is important for leaders to
understand the different forms and characteristic values of motivation theories, and how to properly
implement them in their organization. He defines four approaches to motivation and their emphasis on
management practice: paternalistic approach, scientific management approach, participative
management, and the combination approach.
A leader will find him/herself instinctively switching between styles and motivators in accordance to not
only the people but also the organization. This is often referred to as "situational leadership" indicates
Gary Neilson and Bruce Pasternack of Booz Allen Hamilton, a global consulting firm. They continue that
there is a reason some companies succeed and others do not and that the ability to achieve results is
not an accident but the combination of the correct leadership style for the organizational structure and
culture. The combination discussed motivation and behavior in work organizations, which includes;
drives, needs, outcomes, satisfaction, extrinsic rewards, performance, and influences.
Results: the combination of a transformational leader and the right motives?
During their tenure leaders must confront one of the most important issues asking an important
practical question, "What leadership style(s) work best for me and my organization?" The answer to this
question lies in the understanding that there are many styles and theories to choose from. A major
factor in leadership development is to consider developing a new leadership style which combines more
than one style in order to deal with not only the culture, but also the high level of diversity of
Followers do not automatically accept new leaders. One reason is the element of the unknown. There
have been countless examples of leaders taking over a new organization or group and their failures
because they did not take into account the current culture and needs of the people within the
organization. Edward Liddy's failure at AIG is one such example. He thought that the leadership style he
had developed at Allstate could be transferred to AIG without any problems. It is not the easiest of tasks
to expect individuals to be creative, improve work quality, perform as a team, work more with less and
provide outstanding customer service; while not taking into account the right motivations for these
people and the need for him as a leader to build trust, adapt his leadership style and overall transform
the people and the organization toward a prosperous direction. Liddy assumed that he could take the
helm of the organization and transform it without him changing or making any adaptation.
Although the Transformation Leadership approach is often highly effective, there is no "right" method
that fits all situations. According to Booz Allen Hamilton in choosing the most effective approach one
â€¢ The skill levels and experience of the members of your team
â€¢ The work involved
â€¢ The organizational environment
Building consensus for change is easy; implementing these changes, however, is next to impossible
without a compelling vision and mission from the top as well as a strong foundation of common values
at the base. An organization headed by a transformational leader seems destined for greatness. It is a
well balanced organization infused with the right motives from a leadership with the correct style tends
to react quickly to market developments. And often long term global opportunities without losing sight
of the big picture (the goals of both the organization and its people). Just-in-Time organizations, as they
are tagged, can turn on a dime because the leadership inspires creative outbursts, innovative processes
and maintains competitive advantage due to the fact that everyone knows his or her role and
implements it diligently in this organization, creating the overall effect of flawless effectiveness and
"The right people-imbued with the right values, armed with the right information, and motivated by the
right incentives-are the driving force behind a winning organization" states Neilson and Pasternack. The
challenge for leaders has always been to align all of these factors so that individual self-interests are in
accord with the organization's goals; otherwise, you will never get out of that bed and get to.
Ans4a) Teams that work well together have the potential to deliver great results and really make a difference to organisational success. Sadly many organisations fail to truly exploit the potential of teams. So what simple strategies could make a real difference to team working in organisations?
Strategy 1: Help people to understand each other better
In organisations you have a wide range of people from different backgrounds and functions with different values, ways of looking at things and responding to challenges. Used well this can be a real asset. The key is to get people to understand this and not see someone else's ideas or challenge as being a criticism just a different way of looking at a problem.
Strategy 2: Help people understand the connections
In just about any organisation of any size the achievement of anything relies on different parts of the organisation working together. It is all too easy for people to get lost in silos and see their part of the jigsaw as being all that matters. Creating visual representations of processes can be a great way of illustrating the importance of different parts of the organisation to achieving results.
Strategy 3: Make meetings count
Teams need to meet from time to time. These meetings can be a big contributor to success or just a huge drain on time. Make sure that your meetings make a difference by having a clear purpose that needs to be achieved by the end of the meeting.
Strategy 4: Praise effort as well as results
Few people (if any) turn up at work with the intention of doing a bad job. Even when I have been part of teams that were deemed by some to not be delivering, there was a huge amount of effort and energy going into making things better. Keep the motivation high by recognising and praising efforts as well as results.
Strategy 5: Encourage fun and creativity
The work of the organisation is serious business but it does not mean that it cannot be fun. Encouraging people to think creatively can be a great way of unlocking brilliant ideas and motivating people effortlessly.
Bottom Line - Getting teams to work well together can real transform the results that are delivered. So what strategies do you need to implement to deliver great results?
Duncan Brodie of Goals and Achievements (G&A) works with professionals, teams and organisations to develop their management and leadership capability.
With 25 years business experience in a range of sectors, he understands first hand the real challenges of managing and leading in the demanding business world.
"Thomas Cook needed a system that was easier
to operate, offered better service, could generate
precise target groups more efficiently, and at the
same time reduce costs. That's why we chose
Rainer Wegmann, IT Project Manager, Thomas Cook AG
SAP Customer Success Story
Retail - Tourism Marketing
mySAPâ„¢ CRM Enables Travel Company to Target
Customers Quickly, Precisely, and Effectively
"With over 5 million contacts and more than 8 million travel
orders in our customer database, Thomas Cook needed a partner
that both understood the difficulty of maintaining a database of
this scale for our dialog marketing campaigns and ensured that
the system would run without problems," says Rainer Wegmann,
Thomas Cook AG's IT project manager, as he describes the task
that faced a prospective implementation partner in mid-2004.
Following a pitch phase to select a suitable software partner,
Thomas Cook - based in Oberursel, Germany, and one of the
world's leading travel services companies - chose SAP. Thomas
Cook asked the SAP® Consulting organization to help implement
a solution that makes running direct marketing campaigns easier,
quicker, and more transparent and - as a result - raises the
booking rate generated through these efforts. To meet Thomas
Cook's needs, SAP consultants recommended the company
implement the marketing and analytics functionality of the
mySAPâ„¢ Customer Relationship Management (mySAP CRM)
solution. As a result, Thomas Cook now has a CRM solution
that not only fulfills its immediate business objectives but also
has the right amount of flexibility to grow with future business
Thomas Cook AG is one of the
world's top 3 travel services
companies. The company -
based in Oberursel, Germany -
implemented the marketing and
analytics functionality of the
mySAPâ„¢ Customer Relationship
Management (mySAP CRM)
solution as a replacement for
its legacy system for dialog
marketing. As a result, the firm
streamlined its direct-response
campaigns and ensured higher
â€¢ Obtain improved and increased
amounts of customer data
â€¢ Improve speed and facilitation of
customer segmentation process
â€¢ Reduce costs of campaigns
â€¢ Reach more customers with
â€¢ Integration of customer database
with more than 5 million
customer data entries and over
8 million customer reservation
entries into the new database
system based on mySAP CRM
â€¢ Measure and evaluate results
of campaigns and their
Solution and Services
Why SAP® Solution
â€¢ Existing knowledge of how to
implement and use SAP®
â€¢ mySAP CRM easier to operate
than rival products
â€¢ Marketing functionality offering
more attributes for customer
AT A GLANCE
â€¢ SAP Consulting organization
was the key partner that made
this large-scale project a
â€¢ More data from non-SAP
systems is integrated into the
â€¢ Customer segmentation is
easier to operate with higher
flexibility through rich set of
customer attributes for more
â€¢ Coordination of campaigns with
other key departments and
partners enables brand
â€¢ Marketing department is able to
streamline and standardize its
processes for creating and
â€¢ With high-speed segmentation,
marketers can now define
complex segmentations and
execute the database selections
faster than before - providing
new insights into customer
â€¢ Highly flexible customer
structures provide print shops
with more customer and
campaign-relevant data for
Dialog Marketing a Key Strategy for Thomas Cook
There is only one company that tourists and vacationers associate
with the vision "The Whole World of Travel" - Thomas Cook.
Since its beginnings in 1841, when Thomas Cook - an English
publicist whose name the company now uses - organized his
first tour by rail, the company has grown to become synonymous
with the package tour and mass
tourism industry. Today, with â‚¬7.7
billion in sales and 23,300 employees,
the company belongs to the
world's top three travel services
companies and is Europe's number
two travel provider. Services offered
include travel shops, tour operators,
and charter airlines. To complement
the company's brand
strength, Thomas Cook also owns
a whole host of other renowned
tour operator brands and airlines, including Thomas Cook
Reisen, Neckermann, JMC, Condor, and Thomas Cook Airlines.
One of the cornerstones of the continued success of Thomas
Cook's strategy is the application of direct marketing techniques
to apply the above vision to as many customers as possible.
Approaching customers directly on the basis of previous bookings
and reservations enables Thomas Cook to create extremely
targeted marketing campaigns that achieve high conversion
rates. For Thomas Cook, direct marketing is also the best way to
retain and grow prized customers.
The Road Map from CSP to SAP Software
From an early stage on, Thomas Cook understood that making
direct marketing activities and campaigns particularly effective
required the right technology to leverage transaction history.
However, as Wegmann comments, the legacy system Thomas
Cook had been using for dialog marketing before implementing
the functionalities of mySAP
CRM was both slow and complicated.
Programmed by Thomas
Cook itself, in the late '80s, the
database ran on a programming
language called CSP, which is no
longer supported by IBM.
By 2004 the system - adapted to
suit Thomas Cook's initial
requirements in Germany - had
reached its limits with the
addition of hundreds of thousands of new customer information
data sets over the years. It was taking too long to generate target
groups and segments from the millions of references. In
addition, searching for errors had become too complex and the
system didn't have enough attributes to cope with the requirements
of today's tourism market where no two vacationers have
the same preferences. To bring the marketing department back
into line with the company's goals of reducing costs and maximizing
revenue, and to prepare it for increasing volumes of data,
the marketing and IT department decided in 2004 to rethink the
marketing strategy. As Wegmann adds, "Thomas Cook needed a
system that was easier to operate, offered better service, could
generate precise target groups more efficiently, and at the same
time reduce costs. That's why we chose SAP software."
"Thomas Cook can now reach more
customers without having to increase
spending. In the past, we were only able
to integrate one type of reservation
system to collect customer data. Now,
we can integrate four."
Rainer Wegmann, IT Project Manager, Thomas Cook AG
mySAP CRM Offers Flexibility for a Variable Market
With help from SAP Consulting to cope with the vast scale of
the task, Thomas Cook decided to follow the consultants'
recommendations to implement both the marketing and the
analytics functionality of mySAP CRM. Besides bringing its
customer database system up-to-date, the company now also has
highly effective capabilities for enlarging and adapting its direct
marketing strategy to suit market realities and for turning
prospects into long-term customers. "Thomas Cook can now
reach more customers without having to increase spending. In
the past, we were only able to integrate one type of reservation
system to collect customer data. Now, we can integrate four,"
Wegmann sums up.
The data about customers is exported into a single file. Once
the information reaches the dialog marketing department,
mySAP CRM also makes it easier for employees to handle the
database system and create different segments at the customer
level. Especially in today's travel market, which has undergone
dramatic changes since 2001, finding and selecting the right
target group for the right campaigns are essential to realizing
consistent conversion rates.
"The dialog marketing department now has more opportunities
to be creative with customer segmentation and can define complex
selections by themselves," adds Wegmann. "The segment
builder functionality is particularly positive because we can now
work with alternative target groups and make selections for our
airline subsidiary, Condor. We weren't able to do that before." By
being able to integrate SAP systems and non-SAP systems into
the selection process, Thomas Cook now benefits from quicker
planning cycles. And with a whole new range of attributes to
choose from, the company has gained new insights into
Streamlining Campaigns and Response Rates
With these results, Thomas Cook is now leveraging transaction
history to tell marketers what to say and when to say it. With the
streamlining functionalities mySAP CRM provides, the company
has improved coordinated collaboration with external partners.
In addition, partner travel agencies unable to target customers
with their own CRM systems can request dialog marketing
services from Thomas Cook's marketing department.
"The results are definitely tangible," says Wegmann. "Since
implementing mySAP CRM in June 2005, Thomas Cook has
conducted four large campaigns aimed at more than 200,000
customers. On top of that, we have led three smaller mailing
campaigns and 35 additional campaigns for travel agencies.
That is more than before and will become even more."
To make justification of marketing expenditure even more
tangible, the analytics functionality of mySAP CRM gives the
marketing department the ability to provide concrete analyses
and real-time performance measurements of campaign results.
With the system now implemented in all of Thomas Cook's
German brands, the company is close to reaching its return on
investment. Furthermore, Thomas Cook already has plans in
the pipeline to roll out mySAP CRM in the foreign subsidiaries -
a move that Wegmann plans to carry out with help from SAP
Consulting. He points out that SAP Consulting not only
contributed to making the project much more successful, but it
also provided - where others couldn't - the high-quality service
Thomas Cook needed.