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Organization Behaviour identifies a companys current structure and its culture where the days to day to tasks are being achieved. A structure of a company must be very important where the collected data from the low level must be presented to the top level to come up with effective decisions. And also the culture does also play a main role which resembles the way the work is done.
As the reports states the structure of Neptune orient lines and Timex and Fergasam consist a difference which NOL has a wide span of control and Timex has a narrow span of control. This depends upon the business they exist. Since NOL is a shipping company and it has branches all over the world the company structure is wide where there are lot of subordinates working under the superiors. Timex and Fergasam's narrow span of control enables them to keep their regulations and work smooth which doesn't have any kind of issue's. The culture also differs in a way where Neptune orient lines culture is much diversified an on the other hand the Timex culture s more complicated since its a family owned business which trust on innovation.
Leadership styles are also a crucial factor which affects a company's growth and stability. A fair leadership style would incur the above following advantages where as Neptune Orient Lines consists of a friendlier environment through its branches with well diversified cultures and traditions within the company. So the style of leadership would be more into a democratic leadership style which the workers are being motivated of having the ability to give their own ideas to the well being of the company. Timex culture is a traditional culture where the business is more into regulations and the work is completed in a very systematic order. The de-motivation levels would be a negative point in this company during the times of market changes.
Finally the behavioural problems of the workers are being identified both by the HR departments of the companies where these issue's are being diagnosed and solved by the colleagues in the HR department. Neptune orient lines do consist a contingency approach to management in case of any changes in the market which would not affect their growth and stability. Structure, culture and a proper leadership style would be a proper step to increase company effectiveness and also to progress in the future.
Organization behavior shows or defines how a particular business is where the structures and the cultures of the organizations must be clearly identified to create the future plans. Further the leadership styles that are being adopted in the company which is crucial in leading the workforce and the company to its common goal. The main objective of this report is to identify the organizational behaviors of two companies in two different industries.
First Neptune Orient Lines group which is the largest shipping and transportation company listed on the Singapore exchange. With over 11,000 staff across 104 countries, the group delivers quality services through its likely key brands known as APL and APL Logistics.
Sri-Lankan based organization known as Timex and Fergasam also named as, the undisputed leader in the apparel industry in Sri-Lanka employs 8000 employees with offices in U.S.A, Hong Kong and manufacturing plants in Sri Lanka, India & Bangladesh. The company owns it 18 state of the art manufacturing facilities and holds many certifications including WRAP. As a common prospect both these companies engage in imports and exports, so further this report will explain the company structure's, culture and also the several behavioral patterns of these two companies.
Organization structure determines the manner and extent to which roles, power and responsibilities are delegated, controlled and coordinated further how information flows between the levels of management. (Business dictionary, 2012).
Organization culture represents the values and behaviors that contribute to the unique social and psychological environment of an organization. (Business dictionary, 2012).
1.1Structure and culture of the two Organizations http://www.jobstreet.com.sg/logos/agenalogos/nol_intro_logo.jpg
1.1.1(Neptune Orient Lines) structure
Figure NOL Structure
As the organization structure of NOL group contains a lot of subordinates working under one superior, from the CEO to the low level workers. Since this is shipping company the structure is arrange with lot coworkers to make the operations to process firmly without any issues. As the diagram above shows we can a wider span of control, since this is a worldwide organization where the superiors are able to handle and monitor how the work conducts in this process. As mentioned the decentralized corporate structure, featuring separate divisions for NorthAmerica and Asia which are linked through online communications enables the company to serve two vastly different regions.
Command also goes through the hierarchy where the authority goes from top to bottom. When it comes to decision making it's mostly a decentralized one because there are lot of branches worldwide so the power is divided between the workers which makes the work fast and reliable.
The task of each and every worker is clearly stated where the jobs are formalized and clearly clarified to the employee. With the better standards and clear aims the NOL group can justify its procedures when covering work processes.
At NOL, they value the cultural diversity and its positive impact on the success of their company. Through their business activities in container shipping and logistics they are represented teams who work to make the company future a success.
When the culture comes into play NOL always pay attention on innovation and risk which the company has set the minds of the workers to take risk in whatever the challenge they get. So this kind of culture would keep the company goals attainable. Since the company consists of two shipping brands known as APL (American President's Line) and APLL (American President's Line Logistics) the culture is being diversified into many ways where any of the upcoming risks or challenges can be identified and treated.
With over 11,000 employees delivering services across 115 countries, the NOL group company with diverse operations in transportation and logistics services. For NOL the people are the foundation, spirit and future. They are the key to fostering the growth and expansion of the global business further they help the employees to develop the skills that help advance their careers and meet business needs.
Being the 7th largest shipping company in the world, NOL group has to go with head to head competition in order to maintain or go forward. Competitors such as Evergreen, Maersk, K-line...etc With the consisting brands the company has been able to compete with its competitors.
1.1.3(Timex and Fergasam) Structure
Since this is a Sri-Lankan based company the degree of departmentalization is low where as they have a low amount of departments such as manufacturing, designing and product departments. These few departments will give the company the strength to further growth, further these would be product departments where the products (clothing) should be allocated to the market.
Timex is a family owned business where the command goes from the director board to the lower levels, from the managers to the subordinates. The commands may be made due to the own rules and regulations of the director board.
Further decision making is done by the management whereas the low level employees are not taken into consideration, so they might be de-motivated. On the other hand the decisions taken would be straight and reliable because they know the exact situation of the company.
The tasks of every superior and the subordinates are being clearly clarified by them where as the jobs are very well standardized and rated to perform an efficient outcome.
1.1.4(Timex and Fergasam) Culture
Timex and Fergasam main aim is to provide quality products in fewer quantities where they look for more new techniques in producing the fashions. Eg: avirate fashions. (aviratefashion, 2011).
When it comes to innovation and risk taking Timex would have an average progress since this is a family own business and further the decisions are taken by the director board which represents the family members so the degree to which risk and innovation in this organization is comparatively low.
This organization complies on attention to detail which the company focuses on the customer feedback because they depend on the customer choice, so the firm also follows the rules and procedures correctly to gain the maximum.
1.1.5 Comparison of the structure and culture
As mentioned above the structure of the two companies are different where the NOL group is worldwide company which consists of lot of subordinates to handle the tasks. So the span of control is wide where lot of subordinates work under the superiors to handle their day to day activities. Times and Fergasam consists of a narrow span of control where they are a Sri-Lankan based company so the amount of tasks are much less to handle with.
As the culture shows above the both the companies likes to take risks and are very innovative, but the NOL group has a wide variety of skills within the company where the culture is diversified so they can easily adopt to any change in the industry. Finally Timex and Fergasam consists of a culture which is very much into rules since this a family own business. So the culture is very formal where as the workers face a very organized system.
1.2 Relationship between Structure and Culture
Spam of control and aggressiveness - In the NOL group it consist of a wide span of control which holds a large number of skilled employees who can change the idea into a reality. So the effectiveness of this workforce would be easy for the organization to face the head to head competition from other rival firms in the market.
Work specialization and Attention to detail - The workforce in this organization has a very improved way of working towards the goal, further they are multi skilled to corporate with any upcoming issues. So when it comes to customer needs they can easily find them and assure that customers get the satisfaction of their service or product traded.
Formalization and outcome orientation - In NOL the jobs are well standardized where the employees know what they do, so they company can have a positive figure of their output and also increase the profits of the organization with according to this combination.
1.2.2Timex and Fergasam
Departmentalization and Team orientation - Company consists of few departments where a large number of employees work in one department. So this would encourage the team work where as a number of employees would engage in the same procedure so efficiency would be at its most.
Centralization and low people orientation - Timex mainly takes decisions from its director board so the degree to which the employees are combined in these decisions will be relatively low. So the employees would be de-motivated in this scenario so the output would be less when compared to the production target.
Chain of command and Stability - Since the company exists of a strong strategic level management, the decisions are very accurate where these are being put into action in order to gain advantage of the changing market. Due to this updated information and skilled workforce plus its decisions the company stability is in a high position which they can adjust to any changes in the export market which is also due to their innovation skills.
1.3 Behavioural problems and solution
Solutions to those issue's
Employee personal problems which affects their performance.
De-motivation due to loads of work or work given doesn't match with the abilities.
They may also not be an efficient part in decision making.
Employees may feel bored and also get absent at work due to same procedure of work.
Other extra benefits such as fringe benefits: company vehicle, other quantitative benefits.
The company can meet the employee's personally and discuss the problems and help them.
The jobs must be formalized where the employee must be given clear objectives in the particular task.
They must give a chance to the employee's to give their feedback in taking decisions, which motivates them.
The degree to which job rotation is low in Timex group where they must give different tasks for the employee's to complete.
Also they must look forward in giving these other extra benefits to the workers as to achieve the main goal.
These following problems occur in both companies (NOL and Fergasam) have the same employee behavioral problems and the companies have various solutions to help the employee problems.(NOL) has various ways of solving the employee problems as they have a high skilled set of workers in the HR department where as the company provides various ways to solve the matters. The company's identify these behavioral problems through the HR department of the both NOL and Timex and Fergasam. These workers are being diagnosed with their problems and are given solutions.
Timex and Fergasam have also the following solution methods but not like NOL where as they use more improved and quality methods. But the Timex organization the employees are being hired to work very efficiently since the company is in the clothing industry so the senior workers must look up to the needs of their subordinates to get a better output.
2.0 Leadership styles and effects
2.0.1 NOL Group
The general manager of the NOL group who handles operations within the country faces a great risk. The manager is well qualified with his educational and further with his professional qualifications in the shipping field. Eg: contains a wide variety of skills such the capability of working with administrative, human resource and financial obligations. With wide variety of skills and knowledge the manager of the NOL group will be able to handle the operations firmly with fewer defects. Further we can explain his leadership style a democratic leader. The manager allows the subordinates to express their ideas, so it would be an effective step to attain the company goals. As we see the leadership style of the NOL manager the workers are well satisfied with the work they do because the authority is passed in every action involved in every task the company follows.
Since the company operates firmly with this effective leadership style the company will have the ability to increase the profits, turnover and reduce the labour turnover.
Further as we take the Ohio state studies the GM of the NOL considers both the factors task and people oriented leadership style so this makes the working environment more suitable and easy. This would make the work process more effective and productive which the company will be better off in the future.
2.0.2 Timex and Fergasam
The leadership style of the chairman of Timex group would be taken as an autocratic leadership style where the decision making is taken by the board of directors. So this contains strict rules and regulation whereas the company operates accordingly with its operations. In the employee side the main cause would be the de-motivation which their personal views would not be taken into consideration. And they would feel that they are not part of the company so their efficiency would decline along with the production levels.
An autocratic leadership style may affect the company's performance in future so the recommendation would be to maintain a decentralized structure, which the opinions of the subordinates would be taken into account. The company must adjust the motivation levels of people by giving them extra benefits which would satisfy and assure job security for them. By having an autocratic leadership style this would affect the business worse where low productivity levels would result low profits and sales.
Further when considering the leadership behavioral concept from the Ohio state university the chairman of Timex is mainly focused on company success so the chairman looks at the behavioral of the company structure and also a task oriented leader which: Initiates, organize, clarify and gather information.
When comparing the leadership styles of the two companies, Neptune Orient Lines consists of a more democratic leadership style where their culture is diversified and the company consists of a friendly environment where the day to day activities are carried out very effectively. Timex and Fergasam consists of a more autocratic leadership style where this is a family own business. The command is from top to bottom where the subordinates have to workout what the top level order them to. So the degree of de-motivation is high in this company.
2.1Classical Approach (Management styles)
Classical approach to management is dated back to the Industrial Revolution. the classical approach was an approach that places reliance on such management principals as unity of command, a balance between authority and responsibility, division of labor, and delegation to establish relationships between managers and subordinates. This approach constitutes the core of the discipline of management and the process of management.
2.1.1 NOL Group
As we refer to the 14 principles of (Henry Fayol) in the Administrative management, the NOL group would not follow all these principles but they follow some such as centralization which they engage the subordinates in decision making which would improve motivation towards their work which would result in a better output. NOL consist of a good chain of command which the authority delegates through a firm path so this also includes unity of command which the subordinates receive commands from only one superior in different departments. Further the mid level employees such as managers and executives are very kind and friendly to their subordinates which also boost the team spirit and rather satisfy the principle of esprit de corps. These would be the few principles that NOL would be following currently and will improve further as it commences in the industry.
When considering the bureaucratic management the decisions are made according to the firm's own rules and regulations which does not involve any personal influences. And NOL also consist of a better and improved way of coordination which the environment of the work place is good so this would pass clear and better information through the chain of command.
2.1.2 Timex and Fergasam
Since Timex is a family owned business which is having a wide development through their apparel exports and imports, they have many rules and procedures. The key element is discipline which the employees must obey and respect the rules that are being governed in the organization. Better discipline would be a result of an effective leadership and also will have a good understanding between the management and the workers. Since it's an apparel industry firm they receive and give orders to suppliers and customers, so as an affective organization they deliver materials and other needed stuff at the right time and the right place. This would further increase the company reputation or even flow more demand for their products in the industry.
Specialization would also be a key factor for Timex where as the workers are given one task which they can get hold and work with zero defects. They also conduct job rotation which does not make the workers get bored which results a lower output.
As mention above Timex also take decisions base upon the organization rules and regulations which do not engage any personal influences. Even though this is a family owned business the rules are given top priority which protects their stability in the industry. However the communication between the hierarchies is not much effective since behavioral prospects of the workers are differed, so there might be several issues regarding the communication and coordination in Timex. But this would be again minimized by a solution by the top management to focus on the company goal.
2.2 Contingency Approach to Management
Contingency theory is a class of behavioral theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation.
A contingency approach is a needed factor for companies where the changes in internal and external factors may heavily influence a business's future. As these factors keep on changing the companies must change their management approaches in order to survive.
2.2.1 Contingency approach for NOL group
When taking this company the external environment have slight changes which the management must look up to since the importing and exporting industry is not affected by such changes the company has no much of a harm. When taking these external factors such as the exchange rate, export regulations. NOL can clearly identify these situations where the individual tasks must be more standardized which the company can face any rising challenge.
Further the impact on globalization will also be a crucial factor where the company must change its management approach, the changes in organization structure may occur where as to allocate more efficient staff to fulfill new customer needs in the new markets. By changing these prospects NOL can be able to move forward with these changing external factors. Since the NOL has no much effect from the internal factors it would be easy for the company to maintain its growth and stability in the particular industry.
2.2.2 Contingency approach for Timex and Fergasam
Timex and Fergasam have a low native towards contingency approach since it's a family owned business. So the level of contingency used is relatively low where as the structure doesn't change due to any change in internal factors. The decision making is also centralized even due to changes in external environment which the company stability and growth in the apparel market is strong and recognized. So the contingency management would not be their main aim for Timex as they are concerned. Further the change in management styles cannot be seen more often where as the top level is very reluctant to pass authority to the lower levels such as decision making.
However the changes in management style are needed for organizations where as the external and internal environments may change big time to increase in globalization and many more factors. Further the changes may affect other parties such as shareholders, customers and employees which would worse off the situation.
The organizations mention above NOL and Timex and Fergasam states their structures and cultures which the relationships are being clearly identified and helps the businesses to go on further. With the behavioral problems and the solutions provided the internal aspects can be solved where the managerial system of these companies may also have to be changed according to the classical approach. Mostly when considering the internal and external environment factors, the companies must change their accordingly so the profits and sales.
When evaluating these considered factors the company must look at the both sides such as changing the management structures would worse off the employees and other concerned stakeholders. Employee behavioral problems may not always be solved whereas private companies focus on profits and low costs.
Further if these companies can operate with these changes in structure, culture and internal external aspects, they must do these changes where as the changes in management styles, leadership styles and behavioral theories.
2.4 Company Information
All information provided for the NOL group
Senior Operation Analyst
APL Logistics Limited
#8 3rd floor, York Arcade Building,
Leyden Bastian Road,
Colombo 01. Sri Lanka
T | +94 11 4728600 EXT : 8685 D | +94 11 4728685 M | +94 77 7415938 F | +94 11 2335881 W | www.apllogistics.com
All information provided for Timex and Fergasam group
Exports Assistant Mnager
Timex & Fergasam Group