The History Of Organisation And Behaviour Business Essay

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Organisational structure and culture is closely dependant of each other. A structure can define behaviour, dispositions, ethics and attitudes of a work culture, as if a company's structure is strictly hierarchal then the company's culture will reflect lack of freedom and autonomy at lower levels. If a company's structure is decentralized, with shared power and authority at all levels, then it is likely to be more independent, personalized and accountable.

Organizational structure is the way a company arranges its management and lines of authority. It determines roles, responsibilities and the flow of information within the company. Work culture results from those decisions.

Most companies use a hierarchical structure that looks like a pyramid on paper. The chief executive or president sits at the very top of the pyramid. His direct reports, usually the vice-presidents, are on a line under him. Their direct reports are on a line under them. The pyramid stretches outward and downward based on the number of levels of management the company needs to operate according to its objectives.


Different types of structures in an organization

Line Structure

This is the kind of structure that is very specific in line of command. The approvals and orders come from top to bottom in a line, hence the name line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This is the sort of structure that allows for easy decision-making and is also very informal in nature. They have small numbers of departments, which makes the entire organization decentralised. [1]

Line and Staff Structure

Though line structure is suitable for most organizations, especially small ones, it is not effective for larger organisations. This is where the line and staff organizational structure comes. Line and structure combines the line structure where approvals and orders come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized in nature. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates. The decision-making process becomes slower in this type of organizational structure because of the layers and guidelines that are typical to it. [1]

Functional Structure

This kind of organizational structure divides people according to the functions performed by them in the organization. The organization chart for a functional organization consists of Vice President, Sales department, Customer Service Department, Engineering or production department, accounting department and Administrative department.


Every organization has some specific culture in it which is formed by its employees as well as by the environment and many other factors. Mainly there are following cultures in practice:

CLAN culture

It is any open and friendly culture in which workers are free to work according to their wishes. It is just like an extended family. Workers express themselves more. Group loyalty, sense of tradition and group cohesion is given strong concern. The organization places a premium onteamwork, participation, and consensus.

Hierarchy culture

In this culture rules and regulations are the key for the governing. Leaders try to coordinate and organize in an efficient way. Here running a smooth organization is very critical, the only thing which hold the group together are the formal policies.

Adhocracy culture

This culture provides a dynamic, entrepreneurial, and creative place to work. Employees and leaders are tended to take more risk and strive for innovation. A commitment to experimentation andthinking differently are what unify theorganization. Individual initiative and freedom are encouraged.


An organization's structure should be in compliance with its culture, because it affects company's performance. While considering TESCO it should be kept in mind that the manager will surely use a better structure which can support the culture of the organization. The effect of it will not only on the financial aspects but as well as social and company's goodwill. [1]

C) Behavior of an individual at workplace

Many factors can influence the behavior of an individual at workplace.

Leadership style can influence a person to think in different way about the organization.When employees perceive leadership perceived as trustworthy, full of integrity and honourable, it motivates them to be more productive. The rest of the organization will mirror what leadership does.

Organizational structure can also help in motivating an employee to achieve company's goal. A healthy organizational structure will enable employees to be more efficient, while an unhealthy structure can keep employees from reaching their potential.

Family Life of employees' can have a direct impact on their behavior. If there's a conflict in the family life, it can affect the employee's behavior at work. The employee may respond negatively to criticism at work and interaction with the leadership. Happiness at home can result in a motivated and happy employee.

Business Relationships have an impact on employee behavior. For example, if a company has a partnership with another business and the other business has high expectations, employees may respond in their performance because of those high expectations.


There different styles of leadership, which are being practiced in organisations. Leadership styles are adopted in accordance with the culture and environment of an organisation.

Autocratic style

This style is used by organisations where a leader tells their employees what to do and how it could be done. Leader does not consider the advice of his follower. Some of the appropriate conditions to use it is when you have all the information to solve the problem, you are short on time, and your employees are well motivated. [5]

Democratic style

This style is used by the organisations where a leader can involve some of its employees in decision making process while keeping final deciding theory in his hands. This style shows believe and capability of a leader in its employees. This is normally used when you have part of the information, and your employees have other parts. [5]

Delegative style

This is used when employees are able to analyse the situation and determine what needs to be done and how to do it. This is not a style to use so that you can blame others when things go wrong, rather this is a style to be used when you fully trust and confidence in the people below you. [5]

Organisational theory

Organisational theory underpins the practice of management in TESCO as it causes conflicts with some personal and individual values.For instance, they may disagree with a particular rule or regulation that has been introduced by the company, however in order to carry out their job as a manager effectively and professionally, they need to move away from their principles and execute the job.

Four different approaches to management used by different organisations.

Human behaviour approach

This approach is effective when the organisation behaviour is friendly. It has a main feature that management is the process of getting things done by people, managers should understand human behaviour. Emphasis is put on increasing productivity through motivation and good human relations. Motivation, leadership, communication, participative management and group dynamics are the central core of this approach. An individual's behaviour is not determined by organization factors alone but also by his attitude, pressure, conflicts of cultural environment etc. Hence these factors must be taken into account.

Social system approach

Organization is essentially a cultural system composed of people who work in cooperation. For achieving organization goals, a cooperative system of management can be developed only by understanding the behaviour of people in groups.Organization is a social system, a system of cultural relationships. Relationships exist among the external as well as internal environment of the organization. For effective management, efforts should be made for establishing harmony between goals of the organization and the various groups therein.

Decision theory approach

It is effective in the organisations where decisions are very critical. Management is essentially decision-making. Members of the organization are decision-makers and problems solvers. Organization can be treated as a combination of various decision centres. The level and importance of organization members are determined on the basis of importance of decisions, which they make.Quality of decision affects the organization effectiveness. Besides processes and techniques in decision makingfactors affecting decisions are information systems, social and psychological aspects of decision-makers.

System approach

The use of this approach is effective where the environment of business is complex. System is defined as "An organized or complex whole; an assemblage or combination of things or parts forming a complex unitary whole. A system is basically a combination of parts, subsystems. Each part may have various sub-parts. An organization is a system of mutually dependent parts, each of which may include many subsystems.

Task 3

Different leadership styles can affect the motivation of employees in an organisation. Such as if a leader adopts the autocratic style, and then its employees can face conflicts with some issues in time of change. If a company going through a change in technology then employee will look forward towards their leader for commands and if then a leader choose a delegative style to sort the problem, and then he will face problems. In the time of changing strategy all employees would wish to contribute toward this change thus democratic style would be most preferable in spite of autocratic. [5]

Motivation theories

Maslow's Hierarchy

According to Maslow's theory of motivation each level in needs hierarchy must be substantially satisfied before the next need become dominant. Every person have five needs which are following:

Physiological needs: Food, drink, shelter, sex and other physical requirements

Safety needs: Safety and security from physical and emotional harm

Social needs: Affection, acceptance and friendship

Esteem needs: Self-respect, autonomy, recognition, attention

Self-actualization needs: Growth, achieving potential and self-fulfilment

Herzberg's two factors theory

Frederick Herzberg's two factors theory proposes that intrinsic factors are related to job satisfaction, while extrinsic factors are associated with job dissatisfaction. He believed that factors which led to job satisfaction were separate from those that led to dissatisfaction. Some of these factors are below:

Intrinsic Factors

Extrinsic Factors




Company Policy

Work itself







Personal life

Reinforcement Theory

This theory states that behaviour is a function of its consequences. Consequences that immediately follow behaviour and increase the probability that the behaviour will be repeated are called reinforcement. Using reinforcement theory managers can influence employees' behaviour by using positive reinforcement for actions that help the organisation to achieve its goals, and managers should ignore, not punish, undesirable behaviour.

TESCO's manager provides basic needs to its employees. This will include a place of work, regular monthly pay and essential facilities such as cafeteria or locker for personal needs. Manager provides the security of formal contracts of employment. It ensures health and safety in the workplace. TESCO promotes team and group working at various levels.



A group is defined as two or more interacting and interdependent individuals who come together to achieve specific goals. A group's performance mainly depends upon the resources which are brought by each individual of group. Groups are of following types:

Production groups consist of front line employees who produce some tangible output. Autonomous production groups are self-directed or self-managing while semi-autonomous production groups typically have a dedicated supervisor who oversees all operations.

Service groups consist of employees that work with customers on a repeated basis, such as airline teams, maintenance groups, sales groups, call centres, etc.

Management groups consist of an executive or senior manager along with managers that report directly to him/her. Management groups are often able to organize themselves towards goals such as policy making, budgeting, staffing, and planning.

Project groups are generally cross-function groups of individuals brought together for the duration of a specific, time-limited project. Project groups are usually disbanded once the project is complete.

Action and performing groups are groups that typically consist of expert specialists who conduct complex, time-limited performance events. Examples include musical bands, military crews, surgery teams, rescue units or professional music groups.

Advisory groups consist of employees that work outside of, but parallel with, production processes. Examples include quality circles, selection committees, or other advisory groups pulled together to make recommendations to an organization.

In examining the performance of people in groups, whether formal or informal, there isnumber of key issues that have to be considered and these are: -

1. Group size

The size of a group is one factor that can determine its likely actions. Large groups:

• require a higher degree of validation than smaller;

• require clearer lines of communication;

• tend to pay less attention to the needs of individuals than smaller groups.

• focus more on task requirements than personal issues;

• are more susceptible to the growth of such - groups than smaller groups

which are likely;

2. Purpose of group

Work - groups are assigned definite purpose within the organizational structure.

Work - groups are often asked to focus their efforts on specific problems, usually of a short-term nature. Some groups are especially set up for this very purpose, such as squads, working parties and project groups. Short-term tasks are usually assigned some explicit time limit.

3. Nature of task

The nature of the task is broadly decided in terms of the group's resolution and objectives. A fairly specific task and outcome will demand different extents from the group compared with, say a generally-stated problem requiring further questions to be asked. Some types of the tasks can be: -

• On-going or routine;

• Implementing new process or actions;

• Creating new ideas;

• Solving particular problems or issues;

• Important consultations with customers or competitors.

Team and Teamwork in an organisation

Teams play vital role in performance of an organisation, some of its characteristics are following:


In order to have everyone professionally working together, you need to lay the proper groundwork. If the foundation and training aren't there, then no amount of hyperbolic boosterish will right the ship later on. From the beginning, the essential values of teamwork need to be implanted. Team building exercises, such as situational scenarios, ropes courses and games, are an effective way to do this.


Establish clearly defined roles for each and every team member, as this gives him a sense of purpose. However, it is important that he knows where his specific job falls in relation to the big picture. Too much tunnel vision can lead to the "not my problem" effect, which is obviously counterproductive to teamwork.


Some workers are more skilled than others, and some tasks are harder than others. Impatience can be divisive, which is the last thing you want. Remind yourself that you are all working towards a common objective, and offer a helping hand instead of denigration or judgment.


Schedule regular meetings to ensure that everyone is still on the level. This can be done as a group or in private, as long as productive feedback and an open dialogue are the letter of the law. Being proactive and stopping problems before they start not only helps your business, it also reinforces teamwork in the sense that you know that everyone worked together.


By this point, everyone is presumably sold on working together for the greater good. However, it doesn't hurt to add extra, performance-based bonuses here and there, as long as they are for the entire group. Individual accolades can sometimes lead to team members creating their own agenda and losing focus. But when everyone stands to benefit, with no individual axes to grind, productivity increases.

Use of new technologies

The use of new technologies can improve and in some cases hinder team functioning. As technology changes teams must update and maintain their knowledge in order to function effectively.

Technologies which have improved team functions

Mobile phones have come a long way from the yuppie bricks of the 1980s and there are now more mobile phones in the UK then there are people. Mobile phones allow teams to interconnect even when team members are out of the office, on the road or otherwise unavailable. Sometimes having always contact to team members can hinder team functioning.

Phone technologies such as blackberry and 3G datacards allow team members to work and linktenuously and this out in the field or with clients.

Personal computers allow team members to carry out various tasks and communicate more effectively. Laptop computers allow you to do this anywhere. They are now lighter, more powerful and a longer battery life. Personal Digital Assistants (PDA) now have much of the same functionality as their betterfriends, but are smaller, handier and have a longer battery life. Many PDAs now have Wi-Fi as usual and some are also phones (and some phones have many PDA features).