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Studies on organisations and its behaviour is very important to understand the organisations and it is related to the organisational structure, leadership styles and the management approach that use the organisation. There are various types of organisational structures and cultures as well as various types of management approaches. In this study it will give a clear knowledge on organisational structure and cultures and the impact of those things on the organisations, the different approaches to management such as scientific , contingency, human relations and the difference of these various approaches and the impact of these approaches on the organisation. In addition to it will help to get a clear knowledge on using motivational theories in organisation and the impact of leadership style on the motivation of employees. Team building is an important part of organisational activities and this will help to understand the mechanism for developing effective team work in organisations.
a. Relationship between organisational structure and culture
i. Different types of organisational structures
According to the Daft (2009: 67) to work effectively organisation need to have a proper structure. This organisational structure clearly shows the communication and instruction execution path. It shows each and every employee reporting structure and authorization path of information. There are many types of organisational structure in organisations.
Traditional structures are following substructures mentioned below.
Line structure - This type of structure is suitable for a small organisation, which has few employees. And they don't have many departments. Instructions to execute comes directly from top to respective employee.
Line and staff structure - Even though the line structure is effective it cannot be applied to large organisations. Therefore the direct reporting will be put into the department level. Managers assigned has authority to control their subordinates.
Functional structure - In this structure people classified according to the functions that they are performing.
The next type of organisational structure is the divisional structure. It is based on the different divisions of the organisation. Sub categories of divisional structure are as follows as per the findings of Madura (2007: p. 423).
Product structure - Employees are categorised based on the products that they are producing.
Market structure - Structure definable according to the market that they are operating. Each market considers as a separate division in this structure.
Geographic structure - Companies which are having or operating in many locations can apply this structure. Within the remote branch or zone the structure will be defined and very few people may report to the headquarters due to the Daft (2009: 78).
Divisional org structure
Figure 1.1: Divisional structure
The next main structure is the Matrix structure. It is a combination of product structure and functional structure. This makes more efficient in operations. But the structure may be bit complex.
Figure 1.2: Matrix structure
ii. Adopting organisational structure
Chef's Sauce is started as a proprietary company and gradually developed and expanded its business around the country. With the expansion of the organisation Mr. Sumith registered the business as a private limited company. From the beginning he was personally monitoring and controlling all activities of the organisation. Now with the with the expansions and developments it became practicality difficult to manage all the operations by himself.
During the past the company had limited no of employees and the operations are limited. This allows Mr. Smith to attend to each and every activity of the organisation. But now the situation is different Mr. Smith is not in a position to monitor all the employees within the company. There are many people who do similar type of jobs and sometimes time nor permitted. Therefore he decides to put the organisation into a more formalise structure which Mr. Smith has full control of the system with reference to Daft (2009: 98).
Mr. Smith is a good leader and a manager. The idea he wanted to implement is to create another layer of manager who are reporting to him where he can directly guide them to achieve the organisational objectives. Each manager assigned as a leader for each department or the functional division. Employees who are working under each manager are reporting them as the immediate supervisor. By making the change Mr Smith can easily overlook all the operations and individually monitor each division's performance. Based on the targets which need to cover by the organisation can assign into each department as sales or may be as cost saving activity Cole (2001; p. 123).
Problems and solutions
The main issue Mr. Smith is facing is the attitude of the employees. Some of them who was previously working directly under Mr. Smith may not happy to work under another Manager since they were previously in the same level. This issue may bit control and manage applying to strategies. The first one is to recruit external employees to the Manger post. The second method is to appoint the most senior people to the managerial post. Anyway since in the past all the employees have worked under Mr. Sumith directly he may have a courtesy discussion with the employees to explain the requirement of the change and organisational objective further followed by the benefits that they'll get when the company is performing better Nicotera et al. (2003: p. 121).
iii. Bureaucratic Organisation structure
When the organisations are expanding it need to have processes and controls in a very streamline manner. This defines policies such as human resource related, administration related, procurement related and for any other functional area related. These policies are always for the better performance of the company. Such changes may take as sometimes by some employees as a burden to perform some tasks. But if the defined structure is adopted by all the employees then the organisation can perform smoothly and faster. Sometimes these policies may consist of some punishment as well as rewarding strategies. These will increase the trust of the employees about the internal processes. Without having a set of clear guidelines it is a bit difficult to manage the large no of employees Madura (2007: p. 516)..
It is recommended to apply these styles to lower level employees. Because generally lower level employees are bigger in number than other employees. Since the no of employees are high very difficult to monitor the work of each and every one of them. Most of the time the lower level employees are youth who are joining as fresher to the labour market. The organisational culture and the operational processors they need to understand at the very first time. With a proper guideline this could be easily fulfilled.
The best example is the Pizza Hut delivery system. These employees are working on a clear set of rules and regulations. They are suppose to work on predefined set of policies. If the set policies being violated they need to compensate for the damage. Benefit that the Pizza Hut is enjoying in this level of employees is if the current worker not performing or not working according to set rules, simply terminate the employment of them and recruit another from the waiting list of prospective employees. Reason is there are many people waiting outside to get an opportunity for a similar task Cole (2001; p. 128).
b. Organisation structure
According to the Madura(2007: p. 428) organisation structure defines the culture of the organisation. Most of the small organisations are having a traditional organisation structure such as line structure. When the line structure is practiced at an organisation all the employees are reporting to one individual. Most of the time this person may be the owner or the managing director of the company. These types of the organisations are small in size. People working are most of the time relatives or friends. Therefore the rules and regulations are minimal. It is easy to control the company by the owner. Organisations culture is more like a family business .
Functional organisation is divided according to the functions that they are performing. By making these employees are getting assigned only to do a particular job function. They are getting restricted to do any other work though they are capable. On the other hand they are becoming specialised in a particular job function. In some situations if the employee is capable of many job functions and due to this divisional structure if he is unable to perform other activities and contribute their skills as per the findings of Cole (2001; p. 112).
The product structure is defined to categorise people for each designation. The idea of definition is to manage existing product range in a more controlled manner. These controls are implemented there can be a situation where the employees are getting frustrated about the new implementation. If this happens it is very difficult to manage it.
Matrix structure is a simple structure which operates as a combination of product structure and the functional structure. This is a good model of structure to use. Because in a one section one type of structure could be used. In the other sections another kind of structure can be used. Employees can be managed properly minimising no of complaining due to Nicotera et al. (2003: p. 151).
c. Performance and behaviour at work
Subject : Performance of people at work
Employees are paid for the work that they are doing for their organisation. As an employer they always expect to get the maximum return for the amount that they are paying. But unfortunately the maximum that the employer expecting as a result is not getting delivered by the employees. This is most of the time due to the personal attitudes of the employees. Employees may try to achieve some internal political agendas rather than doing the assigned specific job role. Within the company people may be scared about their job security. In such situation they always try to get stable by using many methods. These may be sometimes ethical but most of the time un ethical. Organisation need to have a clear HR managing policy to control such malfunctions at work place Nicotera et al. (2003: p. 171).
a. The strategist is effective for the business
Strategic leadership is a one of the best leadership style that approach offers the vision and route for the growth as the success of an organisation. The success of the I and M company is the best example for the "strategist" that achieve the best effect level of their business.
In I and M they are using strategy in the management of workers and their main strategy is to motivate workers to take the plan to improve their productive input into the company. It always involves thinking and planning that need to make better strategies and the strategic leaders are always trained and encourage the employees to best prepare the company for a better future and it is the secret of the I and M company Pisapia (2009: p. 43).
I and M always analysing the present situation of the business and looking ahead to prepare for the future of the business and awareness is a big part of their company. I and M training employees to think and act more effectively to attain the best result possible for the company with proving the "Strategist is effective for the business" Lussier and Achua (2009: p. 67).
b. Impact of the scientific management
According to the Taylor (2008: p. 89) scientific management means the understanding the things exactly and planning to do it in the best and cheapest way. In the scientific management analyse the things and make a workflow to do it and the objectives of the scientific management are economic efficiency and labour productivity. In the scientific management there are specific features such as a systematic approach to solve the problems, economy, definite plan, discard old method, definite aim, changing attitudes and a set of rule, techniques to apply scientific techniques of work , recruitment, selection and training workers etc.
These characteristics can be applied to the obtain best overall effect to an organisation. As an example in scientific management there is a definite plan for the work. It is very important to achieve the organisational objectives because a plan gives a correct direction to the achieve objectives. The economy is a basis of scientific management and it will eliminate all the unnecessary elements of the production and make it with minimum cost. It helps to reduce the organisational expenses and reduce increase the profit. Scientific techniques are very essential in organisational development and in the scientific management the application of scientific techniques to work , recruitment , selection and training of workers is high and it will provide lots of benefits to the organisation due to DuBrin (2008: P. 345).
In the scientific management it tries to find the best method to do work and it will help to do it effectively and low cost. In addition to that scientific management is a process that organising, directing and controlling person's actions and therefore there if an aim to the managers .All those things have a good positive impact on the organisation and hence it helps to achieve the organisational aims and goals as per the findings of Taylor (2008: p. 95) .
c. Contingency approach and human relation approach
Elsy (2009: p. 89) says that contingency approach is known as a situational approach in another way and there is no theory or method and management can apply to all situations. The features of this are;
Management is entirely situational
The conditions of the situation will decide the techniques and control system will design to fit the exacting situation.
There is no any best way and need to adapt according to the situation or managerial action is contingent leading external environment.
Management policies and procedures should react to the environment
The manager should understand the best way of managing
In the human relations approach in the management it is management type that maintains psychology and sociology needs of the workers and get into the work. In the organisation workers need not only financial things but also appreciation and they like to treat as humans not like a machine and the managers should try to understand the emotions of workers. In the human relation approach of managing the worker needs better communication with managers and managers need to communicate effectively and there is no conflict and misunderstandings among the members of the organisation. There are no strict supervision and employees also participate in decision making and it will increase the productivity as well as satisfaction as per findings of DuBrin (2008: P. 349).
In the management of a hotel chain with the changing business environment the contingency approach is suitable because the stated ways and things are not suitable for the changing environment and with the changing environment it need the decision according to that situation. Therefore the contingency approach is suitable for the hotel chain management as well as when managing people in this situation also to increase productivity and satisfaction use of the human relations approach also important. When managing a fast food chain it human resource are used highly and when handling human resource the most suitable approach is human relations approach and with the features of it the business can achieve its objective very effective with reference to Elsy (2009: p. 99).
i. Leadership styles
According to the Dereli (2010: p. 11) employees of the Highlands Ltd are in a merger with Lowlands Ltd. Employees in both organisations are in a confused state of not knowing what will happen to the company. The change process which is going on may not understand by the employees. Some of them are in an offensive stage and some are already confused. It is very important to explain the employees the changes which are going within the organisation. As an important step the benefits that the employees getting. This need to do in a more formalise manner to have a discussion for the entire group at once or at least division by division separately. To manage the employees there can be
Transformational Leadership style - This is the leadership style which gets the participation of the team members. The idea is to get the best support from all the people within the organisation to develop further. Initially can try to get the support from all the employees at Highland Ltd.
Bureaucratic Leadership - If the transformational leadership style does not work for some employees the next step is to control them with power. For this purpose the best method is to use bureaucratic leadership style. Need to control the other people who can be controlled and identify the people who need to be eliminated from the system as per the findings of the Dereli (2010: p. 17).
ii. Best possible method of implementation
Out of Transformational leadership style and the bureaucratic leadership style best method to implement is transformational leadership style. Because the employees who are within the organisation worked for many years of their life for the betterment of the company. On the other hand the best practices and the production knowledge are with them. If the bureaucratic style applied people may think negatively about the new management. This may impact the smooth management of the company in future. But if all the employees could transform to the new environment by using the transformational style the best can be again taken from them.
iii. Herzberg's Motivational theory
Herrera (2008: p. 34) says that Herzberg suggests two fold theory in motivation. Those two are hygiene factors and motivational factors. Hygiene factors refer to the employee working conditions of the employees. This is the basic level of facility what have been offered to them. Due to this the employees may get dissatisfied and demotivated or some may just in the boundary level. But by providing motivational factors employees could be motivated. At the moment it is required to identify the facilities which are provided to the employees and need to get an understanding about their behaviour style. According to that it is possible to provide more motivational factors to the employees.
Herzberg two factory theory
Figure 3.1: Herzberg model
b. Motivational theories
According to the Frey and Osterloh (2001: p. 112) Maslow's motivational theory support with understanding human needs. It looks into the employee present situations and propose a suitable next level for them to move in to. From the basic needs to self actualisation there are various methods which can be applied to motivate the employees. Highlands can understand these stages and according to provide benefits to motivate employees.
File:Maslow's Hierarchy of Needs.svg
Figure 3.2: Maslow's theory
Macgregor's theory X and Y refer to the two sides of the employees. In theory X it refers the bad side of the employees. Such as people are lazy, they don't want to work hard, need to punish them and etc. On the other hand theory you refer to the other extreme of people are working and they are committed to work and need to be rewarded. These styles may apply in some situations within the organisation. Because some employees may not possible to correct. It is better to always remove them from the system as per the findings of Herrera (2008: p. 56).
c. Vroom's Motivational theory
Subject: Vroom's Motivational theory for managers
As you all aware we are in the process of transformation to a new era of our company. With this transformation management and board of directors which to draw your attention on to the leadership styles which you need to apply within the organisation. Please refer the below brief description about the Vroom's motivational theory and it is highly recommended you to get more knowledge of practical implementation methodology for your own division Frey and Osterloh (2001: p. 89).
Vroom's Motivational theory refers to the outcome of each employee. It is based on the Expectancy theory. This refers to the employee motivational level and how much that they need to be rewarded. It is required for you to understand your individual employees outcome and their performance. Using this theory you will be able to understand
Correlate employee performance to the outcome to the aimed performance level
Ensure that employees are achieving their performance level
Reward diversified employees
Fair rewarding system for the organisation
For employees the organisation will become an interesting place to work
Employee motivational level will be assessed continuously Herrera (2008: p. 42).
d. Team structure and behaviour
i. Team building
West and Markiewic (2008: p. 76) says that teams are effective tools of employee motivation and the team building gives different types of meaning in different ways and simply it is the process of facilitating that group of people to achieve their goals instead of individual workers. Another way it is skill to identify and motivate individual employees to form a team to live together, work together and achieve their organisational goals together.
There are four stages in team building. They are ;
Forming- The members are formal towards each other and no clear goals or expectation. This stage team will be able to establish and determine their expectations and building commitment towards the goal. In this stage team members are being familiar with each other.
Storming- This stage conflicts can arise with people who having different ideas. They can identify the difference than the similarities and communication is important in this stage. In this stage team members express their real style as per the findings of West (2012: p. 131).
Norming - Identify each other and there is conflict resolution and get the idea of "we " feeling rather than " I"
Performing - At this stage of performing are a self controlling, practical, loyal as well as productive.
When the people have no clear understanding of each other they are tend to behave as formal group and after they understand each other clearly and match the ideas, believes in each other they tends to behave as informal group due to the West and Markiewic (2008: p. 89).
ii. Strategy for dealing with dysfunctional teams
If a particular division is not functioning, it means most of the time there can be a serious nature of the issue within the team. Sometimes the team members may not available, team members may have some issues with each other. Due to these problems, the team may not able to function. As the first thing, it is required to understand the problem in detail. Once the problem identified the rest of issues can be considered. If the team is again willing to work as one team can consider them to work on. Or identified employees can be put into different teams and dissolve the team. All these processors and decision taken need to be documented with reasons for the implementation as per the findings of the West and Markiewic (2008: p. 79).
iii. 9 Roles of teams
According to the Belbin (2012: p. 34) Dr Meredith Belbin found the 9 team roles that work more effectively and the roles are
Resource investigator and
Figure 3.30pm Belbins Team Roles
Source : http://www.aurora-tds.co.uk/belbinforyoungpeople.html
The Highlands Ltd is a company that merges with another company and to the building of the good employee relations , motivation and retention the Belbin's 9 team role will make a good contribution. Sharper are desperate for achievement and display extrovert qualities sometimes obvious leaders at the start of a task and it will help to motivate the people in the Highlands. The plant is a generates of new ideas and it will help to do innovative things to the company. A complete finisher gets things done and not need the motivation or stimulation. Therefore it will help to control over the quality of output in Highlands Ltd and Monitor has a critical eye that helps to make accurate decisions for the company. The implementer is a well organised worker and team worker always helps to pull the team together and also they are flexible and adapt to the different situations. Because Highlands Ltd is merged with other the team worker is a more essential role to enhance team activity in both groups as per the findings of the Aurora TDS Ltd website (2012).
The coordinator is another role that helps to ensure the team works together and a research investigator always fin the resources available and very skilful to find the resources. The specialist is an expert in every work and succeed on particular tasks. Therefore the combination of these members will help to the Highland Ltd to make a good team with building of employee relations with reference to Belbin (2012: p. 56).
e. Factors affecting development
Reynolds and Holwell (2010: p. 76) say that presently there is an issue within the Highland due to a merger. People are excited and not knowing what to do. As the employee relations manager, it is necessary to talk with employees and understand the issues that they are having. It is required to explain them the importance of the merger with examples. How other organisations grow. It is necessary to conduct a team building programmes and capacity building programmes to again get them into a track. These team work can get success by assigning a target for every week. If the production team is same. Once the teams identified and entered to the processor, we can request our payment from them. Though all these trainings and changes done still there won't be effective. It is always a requirement to address on behalf of top management. Once the project implemented it is recommended to address at least
f. IT system
Presently Highlands does not have any computerised system. Use of mobile phones for the internal communication also less due to various reasons. Therefore the implementation of a system depends on the technical solution what we are providing. Once it is implemented the connectivity need to give to each and every employee in the division. Using the desktop of the computer common messages can be put into the main login page. For the people who are going from place to place, it is required to take the stock and GPS location using a special app. And on the other hand employee need to get it smoothly as per findings of 1Reynolds and Holwell (2010: p. 58).
There are organisation structures which regularise the organisation's activity. According to the organisation structure the functions and activities can be defined. Most of the time organisations structure defines its culture as well. Once the people group into separate divisions they can be simply assigned set of roles and responsibilities to perform. The performance of the company is also depends on the personal behaviour of the individual. Section two describes different management styles which can be executed within the organisations. These theories need to apply according to the behaviour of the people. Other than the management styles there are motivation theories which can be applied to increase the performance of the organisation. These individual styles ultimately maters the company's performance. Therefore the management need to decide what are the right management styles which are more suitable to apply across the organisation. To minimise uncertainties within the company and to make the employees know about what's going on it is necessary to implement the proper communication system. There are IT related solutions which can be implemented without any cost.