Impact On The Performance Of The Business Business Essay


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From the very beginning of human civilization, behavior of people influenced others decision (Lemos, 2011). That's why in this competitive world to stay in the market, marketers need to understand the dynamic behavior of people of organization. Organizational behavior is the systematic study and careful approach of individuals and the way they react and cooperate with others (Curlette, 2009).This is a scientific approach of behavioral act of individuals or a group of people.

In this report we will try to analyze various organizational structures and organizational culture of British Telecom. BT is the most ancient telecommunications company in the world. But they hold their glory and success by providing better service day by day and making perfection in their structure of organization. This is UK based telecommunication Company which started its journey in 1846(BT Group plc, 2012).

To overcome various inverse situations in the organization we need to identify those factors which influence the individual's behavior at work. Effective leadership styles and organizational theory helps us to find the proper way to set a management process. The fundamental purpose of this paper is to understand the main functions of organizational behavior.

Task 1:

L01: Understand the relation between organizational structure and culture:

1.1 Compare and contrast of different organisational structures and culture:

Organizational structure is the process or way which is maintained to establish the rules and regulations of the company. This is formalized by the authority and written document which is strictly followed by the employees. (Ronald2010).

On the other side organizational culture is the informal belief of individuals within the organisation. It is a set of norms, assumptions which is made unconsciously and followed by the group of people of the organization.

So, organizational structure is the overall framework of the company whereas organizational culture is the mental process which leads the workers to certain credence.

British Telecommunication is the gigantic telecommunication company in this world.As a trainee manager on the BT's first track leadership, I think it creates open market in the field of telecommunication. It introduced verities technologies in telecommunication sector and allows customers to use it. BT usesbureaucratic leadership style. The employees must need to maintain the constitution of it. To make the technological change in BT, it uses combined culture. All employees refer to achieve a certain goal collaboratively. BT uses good employer-employee relationship (BT Group plc, 2012).

On other side Ryanair is the Irish airline. It gets rapid success from the beginning because of its low cost strategy. Though it gives customers service with low cost but it creates superior value for its customers. It uses flat management structure which possible because of the change of autocratic leadership to democratic leadership. It gives proper freedom to its employees. The employees' culture is also making customer oriented relationship which tends this company the zenith of success.

1.2 Relationship between an organisation's structure and culture and its impact on the performance of the business:

Organizations structure and culture are mutually related with one another. Organizations structure is centralized and formalized by the top level management. The culture of an organization depends on its structure. The movement and the way of behaviour of an organization basically depend on its structure ( MacLeod 2009).

If the structure of an organization is flexible and easy to understand then employees can express their potentialities. They can share their thoughts and ideas about the betterment of the company. But if the company maintains dictatorship in the company then employers face difficulties.

Again if a company gives highest freedom to its labours then there is chance to create haphazard situation in the structure of the companies decision making. Employee's behaviour may be arrogant.

So it is very much true that the structure of an organization and culture of an organization are dependent with one another.

1.3. Factors which influence individual behavior at work:

As a future leader of BT's top management team, I strongly support to study about the factors which influence individual behaviour at work. Those factors are following.

Technology: Technology is the major factor concerning individual's behaviour at working place (McNichol,2007). Because of the grace of modern technology, employees can ease their difficulties. Prior of newer technologies people invested lots of time and brain to complete a simple work.

Safeness: People want more smooth environment and safety at their working place. In past lots of labour died while working in life risking work in various industries. But now they emphasize on the safety.

Motivation & incentive: A true leader can influence the mind of an employee by giving him or her appropriate motivation. Manager can enhance the ability of a worker by giving incentive and motivation.

Understanding the value of work: If an employee can understand the importance of his or her work and the value he or she creating for the company, then he or she will spirit up the work.

Empowerment: After getting desired power and sufficient wealth, employees get proper enthusiasm to work hard.

Task 2:

L02: Understand different approaches to management and leadership

2.1. Comparing the effectiveness of different leadership styles in different organisations:

According to Kouzes and Posner (2007), leadership is the process of influencing and motivating other workers and taking prime decisions at inverse situation. Different leadership styles in different organizations are given below.

Autocratic leadership: In accordance toGriffin (2010), autocratic leadership is a type of leadership where all source of power centralized. Although employees get mere opportunity to express their decision but it can be handy to establish the empowerment towards the employees.

Bureaucratic Leadership: This is the most traditional leadership style where leaders ensure that employees follow all types of laws regarding to the company. It suggests that workers need to do everything according to the constitution of the company. However in this process everything happens systematically. For example our company (British Telecom) follows this type of leadership style.

Democratic leader: Although leaders make all of the important decision, but according to this process every worker gets the opportunity to express his or her decision. Leaders need to consider everybody's decision under their consideration (McBain, 2012).

Laissez-faire Leadership:It explains the supreme freedom of the employees. This can be effective in the creative organizations. However Danish government can be a good example of this leadership style.

2.2 How organisational theory underpins the practice of management:

With regards to business organization, organizational theories help to identify the way business should be formed and make profit in a structure way. The way organizational theories help the practice of management given below:

Classical theory: This is the most fundamental theory which ensures a systematic approach of the company. Manager can routinely give instructions and prepare the schedule.

Bureaucracy theory: the constitution and structure of the company is described by this theory. It refers to organize the functional activities of the organization.

Human relations theory: This theory suggests the way people of an organization interact with each other and the facilities they deserve while working. For example workers always search security in their job, comfort, friendly environment etc. when they achieve those facilities then they focus on productivity.

Economic sociology theory:This theory is a blend of economic and social situation of the organization. It describes that if a company holds good position in the mind of customers then its worker also will be motivated to work hard.

However, if a manager wants to achieve dexterous success for the management as well as the organization, he or she must need to implement these organizational theories.

2.3 Different approaches to management used by different organization:

Decision Theory Approach: Decision making is the most crucial part of a business organization. This approach demonstrates the right decision in the right time.

Social system approach: This approach is significant as it holds the cross cultural relationship among people. However it is broader than the management process. Thus study of this approach may hamper time.

Contingency or Situational Approach: This is a complex type of approach which able to evaluate the course of action outside the system (Webb, 2007).

Human Behavior Approach: As managers complete the works by others, thus they need to concern attitude and behavior of people. Knowledge about human behavior helps to identify the lacking of the company.

Operational Approach:Though all of the managerial functions are not accepted still manager really need to understand this approach to emphasis the functions and principles of an organization.

Management Science Approach:This approach helps to find the techniques and measurements to solve critical reasoning. Management problems can be solved through mathematical tools.

Task 3:

L03: Understand ways of using motivational theories in organizations:

3.1Different leadership style's motivation in organizations in periods of change:

In accordance to Griffin (2010) leadership styles make difference while giving proper motivation in achieving the goal. However, with the change of time, the responsibilities of a leader also changed. A charismatic leader now makes sure about all requirements of the employees. Leadersnow try to read the mind of their workers and fulfil their needs by giving them proper motivation.

A few decades ago leaders just controlled overall situation of an organization and gave appropriate directions. But now leadership styles follow motivational work. Leaders give workers their basic needs as well as incentives to inspire them to concentrate in workings thus they can achieve thegoal quickly.

Success of the company now highly depends on how the employees will be motivated. Because of the technological advancement the performance of companies increased but organization which can influence its workers get competitive advantage. Research shows that change in leadership styles depends on how the employees react and being motivated.

Comparing applications of different motivational theories within the workplace:

Motivation is a set of internal and external psychological forces that tends to choose a certain course of action. Within the workplace, various motivational theories applied which are following.

Frederick Herzberg's theory:This theory of motivation developed by two factors which includes maintenance factor and motivational factor. Maintenance factor contains work, responsibility, promotion, growth etc. and motivational factor includes payment, strategies, environment, job salary etc. This model suggests that maintenance factor is essential but people need motivational factor to enhance the capability and achieve job success (Millegan, 2003)

Merrill and Reid theory:This theory basically focused on personal styles like driver (Action based), expressive (Perception based), amiable (Affiliation based), analytical (Rational based). It help people to feel being connected with their work collaborate.

McClelland's Theory of Motivation: Making connectivity in the workplace promotes the performance of individuals. Moreover three fundamental styles of this theory are power, achievement and affiliation (Ricky, 2010).However in this process power is decentralized.

3.3 Usefulness of a motivation theory for managers:

Managers' knowledge about giving exact motivation depends a lot on motivational theories. The usefulness's are following.

Managers use motivation theory to understand the psychological movement of employees.

To obtain the objective of an organization managers give motivation by analyzing motivational theories.

Success of the company refers to comprehensive study of motivational theory.

Proper knowledge about motivational theory helps to make coordination with workers.

Managers can easily handle the employees by giving them motivation according to their desire.

Task 4:

L03: Understand mechanism for developing effective teamwork:

4.1Nature of groups and group behaviour within organisations:

Two or more people of an organization working together make a group. Groups are basically formed as formal groups and informal groups. Formal groups are basically made for obtaining the objectives of the organization whereas informal groups are made for personal interest. Formal groups are made by the authority (for example: management group, director group, project group etc.). But informal groups are made without any permission or rules of the company. (Freyand Curlette,2009). It just shows the mental match of a set of people.

Behaviour of individuals within a group influences other members of the group, mostly of informal groups. Group members share their thoughts, belief and decision with one another. Group members also can work together to achieve a certain goal.

However group leaders perception also makes difference while decision making. Group leader influences others mentality and plays the central role. Within organization group leader stands for derive the all group members towards a certain aim.

4.2 Factors that may promote or inhibit the development of effective teamwork in organisations:

Teamwork is asystematic concept where two or more professionals works together to achieve a single target. Important factors which promote which promote or inhibit the development are following.

Training: Proper training makes a worker expert. If a fresh employee gets proper training then he or she can be handy for the team.

Motivation:Giving proper motivation can enhance the speed of teamwork rapidly. Otherwise workers may lose their mind to work consciously.

Persistence:Without patience, efforts of a team will be in vain. Patience helps do the task in a structured way.

Designation: if a worker is well aware about his position in the team then he can do his job perfectly.

Incentives: After getting desired incentives, employees get encourage and feel the aggression for the betterment of the team.

4.3 Impact of technology on team functioning within an organization:

Technology is the most valuable tool for grapping success in this competitive world. Innovation of new technologies facilitates the business groups. For example with the assistance of information technology we can live closer than before. Technology makes the team functioning more accurate than before. However with the period of time, advancement of technology has made teamwork lot easier than before.

In prior people worked hard for the proper combination in the teamwork. But now technology makes it much comfortable. Just a few decades ago people faced difficulties to accomplish corporate cultures. But now because of technological advancements like various social communication sites through internet, various communication media it is within or grip(McNichol, 2007).

For example we can discuss about the SONY brand. They stay in the competitive market since 1946 through their technological strength. They generate new technologies according to the demand of the customers. They are making updated versions of their electronic equipment and spread out the whole world. Thus technology makes major impact in the process of team functioning of their company.


Fundamental perception of organizational behavior is to evaluate the nature of human (individual thoughts, belief, way of being motivated etc.) and the nature of the organization (structure, system, technique etc.)(Griffin, 2010).As we discussed in our report about some major functions of an organizations behavior, we can identify the sectors which must need to focus. However, the prime purpose of a manager in the organization is toobserve carefully those human nature and behavior and lead them to obtain the basic objectives.

Moreover study of organizational behavior gives a solid foundation to the managers to filter the obstacles of the organization. Thus it can emerge a quality full structure for the company and as well as achieve more effective strategies to advance in the competition.

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