The Key Aspects Of Functional Organizational Structures Commerce Essay

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As the name describes the structures of these types of organizations are designed after considering the functionalities of each employee position. Following diagram shows a structure of a Functional Organization. As the diagram shows that the structure starts with a key person such as a Director, CEO or Chairman. Then the layout goes on displaying the people that comes under that person and so on. These type of plans helps to easily identify the different levels of the organization and the employees that comes under it.

Matrix Organizational Structures

Matrix is the best model that can be used to show the organizational structure if the company has many products that goes though the same departments. For an instance if a company has 2 products and these products have the same department, the Matrix Structure can be used. The following diagram shows a matrix Structure.

In the diagram shown above there are 3 Product Managers. They have to work with the other departments such as R&D, Production, Sales and Accounts to make their products. For an example when Product "A" Manager is planning to upgrade his product he has to inform the other department heads. Once they are informed new teams will be formed from each department. These teams will be controlled by the Product manager and the Manager of the respective department.

Centralized Organizational Model

In a centralized organizational structure, decision-making is done by the top management and only a few people are responsible for making decisions and creating the organization's policies.In this scenario information flow from top to bottom. The lower level and the middle level employees are not permitted to make take decisions and are forced to work according to the decisions which were taken by the top level management.

The arrows show the information/decision/policy flow. As shown the information flows from the top management to Middle and Lower levels.

Decentralized Organizational Model

In this model event the middle and the lower level management is allowed to get involved in decision making. However since decision making is not centralized clashes might occur between different levels. But since everyone is involved in decision making employee satisfaction is very high.

The arrows show the information/decision flow.

When considering the different cultures companies have Strong culture and the Weak culture stands out from the others. Other than them there are cultures like Power Cultures, Role Cultures, Task Culturesand Person Cultures which are can be also found in different organizations.

Strong Culture

If a company has a strong culture in an organization it means that the employees of that specific company have common beliefs and values towards the company. This Culture has many advantages. Firstly because the employees share common beliefs and values forming a team is easy considered to other cultures. Also since the numbers of conflicts are minimum less supervision is required. It also reduces the resources costs such as time spent on solving the problems, time and money spent on training etc. How ever in this culture the employees tend to get bounded to the right way and the wrong way concept. This means they find it hard to think out of the box. They always try to do thing in the traditional way. This will have an impact on the creativity of the employees. Also if the company tries to introduce a new process it might result in a labour turn over.

Weak Culture

In this type of culture the employees don't share many common beliefs or values but that doesn't mean that they don't have common beliefs at all. In weak there is no right way or wrong way of doing things. Since the employees tend to think out of the box employees can suggest be many ideas or ways to achieve a target. Even though it can be considered as an advantage it might also lead to conflicts.

Power culture

In an organization that has this culture the decision making and controlling is centralized around one key person. This culture can be found in small and medium organizations. The decisions can be mage within a small period of time since they are made by one person. The main disadvantage in this culture is that the employees tend to feel they are undervalued this might cause high labour turnover. However since only one person is involved in decision making, decisions can be made quickly.

Task Culture

Task Cultures are very popular in modern organizations. In these types of cultures different teams will be assigned to achieve a particular task. Almost every software developing company uses this method. They assign different teams to different projects. The team members are allowed to make decisions within their team. Since different members are assigned to complete different tasks, they feel valued and motivated.

When considering The ABX institute scenario, it is said that the company has been in the market since early 1990. Which means it has been in the market for over 20 years. It is also mentioned that it has 18 branches in the country including 3 franchised branches. These 2 points indirectly means that the ABX institute is a well established is also said that they are willing to change their organizational processes according to the regional customer market & potential. This means they try to introduce new processes rather adhering to the traditional organizational process they have. For over 20 years the management have not planedto introduce non ICT subjects we can think that they are staying in the main objective which is an attribute of the strong culture. Though they do not try to introduce non ICT subjects they have introduced various new ICT subjects. This is an attribute of the weak culture. Considering the facts that are mentioned above it can be stated that the institute has a mixed culture in the company.

Since it is stated that the structure starts from the board of directors & flows down to the level of low level staff members it can be assumed that the institute has a less complicate and more traditional functional organizational structure where the information flows from top to bottom.

Assumption: All the branches have the same structure.

The following diagram is designed only for one branch.

ABX institute offers variety of education services to it's customers. Explain how the relationship between the ABX's organizational structure & culture effects to it's success.

The organizational structure and the organizational culture have a direct impact on an organization's performance. For an example employees working for an organization that has a weak culture might find hard to perform well because of the constant disagreements between them and the company might have to spend more time and resources to solve the disagreements. This might also cause high labour turnover if the employee feels he's ideas are undervalued. In such scenarios the time and resources spent on that particular individual becomes a waste and then the company has to training a new person to the vacant position. In these types of situations the time and the other resources that can be spent on the development of the organization are wasted. In the ABX Institute if a lecturer leaves the institute because he feels his ideas are undervalued it might be a huge loss of the institute.

Also if an organization has a strong culture, the employees do not like to go out of the path to do some thing new. For example if the ABX institute have a strong culture they might not try to introduce new types of courses which do not fall under degree or Msc programs such as video editing, graphic designing, courses related to networking etc. In this case they are omitting the students who want to do these programs. This will definitely have an impact of the institute because these students will go to the competitors of ABX to follow these courses which will have an impact on the ABX institutes revenue.

When comparing with other cultures Power Culture can be considered as the least recommended culture to have in an organization. In Power Culture one person will always make the decisions behalf of the organization. Even though the decision can be made easily and quickly there is a high chance of these decisions go against the company or go wrong because of the lack of consultation. The employees may also feel they are undervalued and dictated by another person. This might cause high labour turnover and the relationship between the decision maker and the employees will also go down. The high labour turnover will bring additional costs such as recruitment cost, accommodation costs, training costs to the institute.

The Role Culture can be stated as the most recommended and the most popular culture that is used in modern organizations. In this culture an employee is assigned to do a particular task and the employees are responsible for completing these assigned tasks.

1.3 As an island wide ICT education provider, ABX broaden it's human resources, explain the term individual behaviour& what are the facts that influenced the individual behaviour at work.

Individual behaviour refers to how a person behaves at work place, his behaviour is influenced by many attributes such as Abilities, Gender, Race, Perception, Personality etc. Human behaviour is complex and differs from person to person. Recruiting the correct person that fits for the job and the organization is one of the toughest challenges an organization has face when recruiting an individual. Different behaviours of different employees needs to identified when assigning tasks for employees. Assigning the correct job to the correct person will the organization to get the maximum benefits from the employee.

In the ABX institute firstly the managers need to identify the goals an individual needs to achieve and based on these goals the managers needs to determine what type of individual needs to be recruited. There are many facts that influence an individual behaviour at work.


Abilities not only refer physical abilities. It also includes mental abilities such as Memory Power, Analytical Skills etc. where as physical abilities include muscular strength, stamina, body coordination etc.

When recruiting a new person, first the managers' needs to identify the type of the job and what types of abilities are required to carryout the job functions. For instance an accountant needs to have more mental abilities than physical abilities. If a wrong person is recruited to an important position as such the company might have to face many disasters situations in the future.


Although it is proven that men and women are equal in their job performance, different societies treat these two types differently when the jobs are concerned. Absenteeism is one area where differences are found. This creates a difference in self perception of one's abilities, personal values and social behaviour.


Personality is one major area that has an impact on the individual behaviour. There many personality types that can be found. Certain people might be every extrovert where as some might be very introvert. Some might like to accept challenges where as some might not. The sales team of a company needs to be very extroverted. They should be willing to meet new people and they should be able to convince the customers to give them the business.


Attitude is a characteristic that reflects a person's willingness to perform some work. Having a positive attitude in a working environment is very important. If a new project is assign to a person who has a negative attitude and if he thinks it is impossible to achieve even before planning the project he has decided the result of the project. This decision can demotivate the other subordinates as well.

2.1 Identify & explain what are the organizational theories that ABX's higher management implemented to achieve it's success.

Before trying to understand the organizational theories ABX used to achieve the success they did, it is vital to understand what Organizational theory means. An Organization can be defined as a group of people working together to achieve a set of pre specified common goals. When a team is working towards a common goal they meet many obstructions. An organizational theory is used to find answers to these obstructions. An organizational theory can be defined as the study of organizations for the benefit recognizing common ideas for the purpose of finding answers to problems, maximizing efficiency and productivity and meeting the essentials of stakeholders.

There are 3 major concepts that come under organizational theory. Further these concepts can be divided in to other cub concepts.

By looking at the ABX institute scenario, it is clearly visible that these organizational theories have helped the institute to achieve their goals.

ABX is an institute that has been in the education market for over two decades. For an institute to survive for a long period as such Individual Process must play a major role. Firstly each employee needs to understand his stand and his job functions. In this situation Role theory plays an important role to help the employees to understand their job functions without any Role Ambiguity, Role Conflicts or Role Incompatibilities. It is clear that every employee in the ABX institute knows his job role. So it can be assumed that this is a well established concept in the ABX institute. The second factor that comes under Individual Process, Motivation is the force behind an individual's decision to execute or not execute certain acts or behaviours. Motivation plays a vital role in an organization. Organizations always try to motivate their employees. Increments, assigning additional job functions, promotions, incentives are some of the methods that are used to do so. Lecturers can be identified as the heart of an institute and they contribute more towards the success of an institute. Lecturing is one of the most hectic jobs because they have to stay up to date with the information they have and some lectures might drag up to 4-5 hours at a stretch. Because of this the company needs to motivate the lecturers in order to keep them with the institute and by looking at the growth it is clearly visible that the institute has taken the necessary steps to do so.

As mentioned in the definition an Organization is a group of people working together to achieve a common goal. For an organization to be successful Group Process should be a major part in the organization.Communication skills is one of the most important factors that comes under Group process. Every member of the organization must have good communications skills to work with each other. In this scenario ABX institute has 15 branches all over the country. So all the activities, requirements and other information needs to be passed to the Head Office in order to the institute to perform well. Also to build or to strengthen up the bonds between employees good communication skills are essential. Power and Influence is another area that is relevant to groups. Influence can be defined as the force by an individual that modifies another person's activity or behaviour and power is the force behind influence to make it effective. Power can be found in a group very often. In a team many people have some kind of a power. They might get this power because of many reasons such as position, experience, knowledge etc. For an example the team leader gets his power because of his position, senior members get their power because of their experience and the other staff might get the power because of the knowledge they have in a specific area. For the team effectively each member of the team needs to follow the instructions of the other individuals. In certain instances even the team leader might have to work under the supervision of another member of the team. By considering the number of branches, the organizational structure and the experience ABX has it can be assumed that the high level of the communication skills and giving the employees the power to take decisions has benefitted the company.

As mentioned earlier organizational culture and the organizational structure too plays an important role for the success of an organization. Having a clear organizational structure indirectly describes the responsibilities of each employee and how the information should flow. The organizational culture describes the working environment of the organization and explains how things are done in the company. The Organizational Structure and the Organizational Culture helps to reduce the complication about the job responsibilities. The ABX institute does have a clear Organizational Structure and a good understanding about their culture. This has helped them to become a leader in their field.

2.2 Organization to organization the management theories can be differs, Identify &explain the management theories implemented for ABX and compare those with another organization's management theories. (P2.2)

The main purpose of introducing management theories in an organization is to utilize organizational resource and maximize the efficiency. Implementation of a management theory helps an organization to cut off the unnecessary costs and the increase the production by maximizing the efficiency. There are mainly five types of Management Theories that can be found.

Scientific Management Theory

Administrative Management Theory

Behavioural Management Theory

Management Science Theory

Organizational Environment Theory

Are the five theories that can be found.

The following diagram shows the peak time of each theory.

This diagram doesn't mean that after the ending period of the theory it is no longer in use. As mentioned above this diagram only shows the peak period of each theory.

Scientific Management Theory

This theory was introduced by Frederick W. Taylor in early 1890. He believed that if the amount of time and effort that each worker expended to produce a unit of output could be reduced by increasing specialization and the division of labour, then the process would be more efficient. Based on his experiments and observations he developed four principles to increase efficiency in the organization.

Principle 01: Study the way workers perform their tasks, gather all the informal job knowledge that worker possess, and experiment with ways of improving the way tasks are performed.

Principle 02: Codify the new method of performing tasks into written rules and standards operating procedures.

Principle 03: Carefully select workers so that they possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures.

Principle 04: Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for the performance above the accepted level.

Administrative Management Theory

The Administrative Management Theory focuses on how to create an organizational structure that leads to high efficiency and effectiveness. There are tow people who have researched in this area and they were also able to publish their own theories.

Max Webber Theory

Max Webber was a German professor of Sociology who lived from 1864 to 1920. According to his theory there are 5 principles in this system.

Principle 01: In bureaucracy, a manager's formal authority derives from the position he or she holds in the organization.

Principle 02: In bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts.

Principle 03: The extent of each position's formal authority and task responsibilities, and its relationship to other positions in an organization, should be clearly specified.

Principle 04: So that authority can be exercised effectively in an organization,positions should be arranged hierarchically, so employees knowwhom to report to and who reports to them.

Principle 05:Managers must create a well-defined system of rules, standardoperating procedures, and norms so that they can effectively control behaviour within an organization.

Fayol's Principles of Management

Henry Fayol (1841-1925), the CEO of Comambault Mining introduced 14 principle. He thought these principles are essential to increase the efficiency of the management process. Following are the 14 principles in the Fayol's Theory.

Division of Labour Job specialization and the division of labour should increase efficiency,especially if managers take steps to lessen workers' boredom.

Authority and Responsibility Managers have the right to give orders and the power to exhort subordinates for obedience.

Unity of Command An employee should receive orders from only one superior.

Line of Authority The length of the chain of command that extends from the top to the bottomof an organization should be limited.

Centralization Authority should not be concentrated at the top of the chain of command.

Unity of Direction The organization should have a single plan of action to guide managersand workers.

Equity All organizational members are entitled to be treated with justice and respect.

Order The arrangement of organizational positions should maximize organizational efficiencyand provide employees with satisfying career opportunities.

Initiative Managers should allow employees to be innovative and creative.

Discipline Managers need to create a workforce that strives to achieve organizational goals.

Remuneration of Personnel The system that managers use to reward employees should beequitable for both employees and the organization.

Stability of Tenure of Personnel Long-term employees develop skills that can improveorganizational efficiency.

Subordination of Individual Interests to the Common Interest Employees shouldunderstand how their performance affects the performance of the whole organization.

Esprit de Corps Managers should encourage the development of shared feelings of comradeship,enthusiasm, or devotion to a common cause.

Behavioural Management Theory

The theorist who experimented under this subject found out that most of the employee turnovers happen due to conflicts that occur between employees and the management. So rather than finding methods to make normal employees efficient like in other theories Behavioural Management Theory focuses on changing the manager's behaviour to motivate normal employees.

Mary Parker Follett Theory

Mary Parker is name that can not be omitted when talking about Behavioural Management Theory. After studying Tylor's Theory she found out that Tylor is ignoring the human side of the organization. She pointed out that management often neglect a lot of ways in which employees can contribute to the organization when managers allow them to participate and exercise initiatives in their everyday work and she also proposed that authority should go with knowledge whether it is up in the line or down. She also encouraged the managers to communicate directly with each other to speedup the decision making process. One important part in her theory was the "Cross Functioning" theory. She mentioned that members of different departments working togetherwill also will help the organization to utilize their resources.

She believed, person who can best help the organization achieve its goals. Follett took a horizontal view of power and authority, in contrast toFayol, who saw the formal line of authority and vertical chain of command as being most essential to effective management.

Management Science Theory

Management Science theory can be defined as the modern version of the Scientific Management Theory. The Management Science Theory is divided in to four main sub categories. Following are the four categories,

Quantitative Management

Operations Management

Total Quality Management

Management Information Systems

Each of these sub categories focuses on different aspects of management. It helps the managers to make decision depending on the results of these sub management areas.

Organizational Environment Theory

This theory focuses on how managers can influence behaviour within organizations to consider how managers control the organizations relationship with its external environment. This theory helps to maximize the production process by increasing a manager's ability to acquire and utilize external resources such as raw material, outsourced skilled workers, outsourced machines etc.

The Open-System View

The open-system view was developed by Daniel Katz, Robert Kahn and James Thompson in the 1960s. According to them this system has 3 stages. Input stage, Process Stage and the Output Stage are the 3 stages. In the Input Stage the Raw Materials and the skilled workers will be gathered. The Raw materials will be converted in the finished goods in the process stage and the Output Stage includes releasing the finished goods in to the market.

According to the ABX Institute scenario and considering the organization's structure wecan assume that they are using the Administrative Management Theory in the organization.

3.1 Different divisional heads at ABX maintains different types of leadership qualities, & approaches to achieve their business targets. Demonstrate how the leadership styles & approaches affect to the organizations effectiveness. (P3.1)

Each person in the world has different leadership qualities. The main challenge a company face when recruiting a new employee is to get the correct person who has the correct leadership qualities to the vacant position.Recruiting a wrong person might end up in disasters situations such a company not covering the targets or facing huge financial losses.

No matter what department a manger controls, there are few leadership qualities that are common to all the managers. For an example every manager should be good resource manager and they should be able to work in a team. Also a manager is expected to handle or manage the employees that come under him/her. So he/she should be a person who is willing to lead his team from the front.

A manager is an important part of an organization. An employee in the manager category is considered as an asset to the organization because of many reasons such as,

Managers act as the leaders of each department. So if one department doesn't function properly, it will effect all the other departments.

The managers are capable of making quick decisions based on their experience and the knowledge.

A manger makes it easy for the other employees to work with the external environment.

Managers are capable of making strategic decisions.

But how do these qualities effect an organization? Let's find answers to this question by focusing on few practical scenarios.

Firstly let's focus on the Financial Manager. A Financial Manager should be highly analytical. He/she should be able to find out the unnecessary cost of an organization and limit them. Also The Finance Manager also should forecast the budget for the next finance year. These two actions help the organization to save money.

The Sales Manager of an organization plays a vital role. It is said that a good sales manager should be able to "Sell a refrigerators to an eskimo". What this really means is that a good sales manager should be able to sell the product to anyone even if the product is useless to that person. He is responsible for bring in the revenue to the company. The sales manager should be a good negotiator and should have extroverted personality.

Next let's take the Production Manager. Based on the demand he should be able to determine the number of units that needs to be manufactured. Determining the correct number of units will not only to reduce the production cost, it will also help to keep the price of the product in a static level without any fluctuations.

When relating the ABX Institute scenario to the above mentioned examples every manager tries to bring more revenue in to the company cut off the additional expenses and uplift the productivity of the company by motivating the employees.

3.2 Discuss the Different varieties of employee motivational theories. Identify & state what are the most suitable set of motivational theories that can be practically implemented to the internal staff of ABX.

Motivation can be defined as a force that makes individuals to commit to a task. A motivated employee tends to work more towards the benefit of the company and participates more actively in organization's activities. So keeping the employees motivated is an important responsibility of the management.Many people have introduced many different theories in order to keep the employees motivated.

Maslow's hierarchy of needs

Abraham Maslow introduced a pyramid that has 5 stages. He divided the needs of an individual and included them in the pyramid und the 5 stages.

According to Maslow's Theory Physiological needs are the first types of needs an individual face. It includesnecessities such as breathing, food, water, sex, sleep etc. These are the most basic needs that are required for a human being to live. Once all these needs are satisfied the individual starts to feel the needs in the second stage which is the safety stage. Personal Security, Financial Security, Shelter, Employment are some of the needs that comes under this stage. Once all the needs of this stage are fulfilled then the needs of the next that is love and belonging. In this stage the individuals feel the need of a family, friendship and intimacy. Once he finds it his needs will be moved to the next stage which is the esteem stage. This stage focuses on achieving self esteem, confidence, respect of others etc. once they are achieved a person will move to the last stage of needs which is self actualization. This stage includes areas such as morality, creativity, spontaneity.

The most important fact in this theory is that a person doesn't feel the needs of the next stage until the demands of the current stage are met.

Herzberg's two factor theory

The developer of two factor theory Frederick Herzberg found that job satisfaction and job dissatisfaction acted independently of each other. According to him entities that bring job dissatisfaction or job satisfaction were allocated in to two groups. Hygiene factors bring job dissatisfaction and the motivators bring job satisfaction to an employee. The objective here was to increase the motivators and reduce or remove the hygiene factors from the company. Following table shows some of the motivators and hygiene factors.

Hygiene Factors




Administrative Policies


Job Security




Interpersonal Relations


Vroom and Expectancy Theories.

This motivation theory was introduced by Victor Vroom in 1964. Expectancy Theory predicts that employees in an organization will be motivated when they believe that:

Putting in more effort will yield better job performance

Better job performance will lead to organizational rewards, such as an increase in salary

These predicted organizational rewards are valued by the employee in question

Vroom's theory is based on three concepts.

Valence: The value of the perceived outcome (What's in it for me?)

Instrumentality:  The belief that if I complete certain actions then I will achieve the outcome. (Clear path?) 

Expectancy: The belief that I am able to complete the actions. (My capability?)

Valence (reward preference): it refers to the strength of an individual's preference for receiving a reward. It is an expression of the value he places on a goal (outcome or reward). The value attached to a goal or reward is subjective as it varies from person to person. People have different valence for various outcomes. The relative valence they attach to various outcomes is influenced by conditions such as age, education and type of work. The valence of a person for a goal may be positive or negative depending upon his positive or negative preference for this goal.

Expectancy (Effort-Reward Probability): it refers to the extent, to which the person believes that his efforts will lead to the first level outcome.It is an association between effort and performance. If the individual feels that chances of achieving an outcome are minimal, he will not even try. On the other hand, if expectancy is higher, the individual will put higher efforts to achieve the desired outcome.

Instrumentality(performance-Reward Probability): it refers to the probability to which the performance (first level outcome) will lead to the desired reward (second level outcome). For instance, an individual wants a promotion and feels that superior performance is very important in achieving promotion. Superior performance is the first level outcome and promotion is the second level outcome. The first-level outcome of high performance acquires a positive valency by virtue of its expected relationship to the preferred second level outcome of promotion. In other words, superior performance (first-level outcome) will be instrumental in obtaining promotion (second level outcome).

Like all the most of the organizations ABX institute was implemented in order to make profits. To increase the profit margin, the employees are expected to bring more revenue into the company. To achieve each target the employees needs to be motivated. The best way to motivate an employee is to show that his performance is always monitored by the management and if his performance is in a good level the company is willing to give a promotion or an incentive in return. Also the company is always expected to backup the employee and should show him the paths to achieve his target. According to the mentioned points Vroom and Expectancy Theories seems the most suitable theory to implement in the company.

3.3 briefly explain the importance of implementing motivation theories to a work place in mangers point of view.

An employee in the manager category has many responsibilities. Resource Management, Achieving Targets, Expanding Business, Keeping a healthy relationship with the customers are some of them. Basically this means is that he is a very busy person who has a lot of pressure on him. So he tends to divide some his targets among the subordinates. In the end deadline the performance of the subordinates will reflect the abilities of the manager and his skills.

Like all the other employees a manager doesn't want his skills to go unnoticed to the management. So he tries his best to achieve his targets. This means the subordinates has to do well and all of them need to achieve their targets. This is not possible unless the subordinates are motivated. If they feel like their efforts are not appreciated by the manager and the higher management, they might not try to go the extra mile to get to their targets. This will affect the targets of the manager and the departmental performance. So even if the manager is a motivated person he will go unnoticed to the management. This will have a direct impact on his increments, incentives and his promotions. If things don't get better the management might even try to replace him.

But if the manager has a good motivated team. With the help of the subordinates he will be able to achieve his targets and reduce the pressure on him. Also if he is sure that his team is going to handle the targets, the time that is spent to monitor the team can be used for some other purposes.

The facts mentioned above explains why it isimportantto implement motivation theories in a work place in mangers point of view.

4.1 Describe the common nature &behaviour of groups in organizations.

A group can be defined as two or more people working and interacting together for a common purpose. Working in small groups helps an organization to achieve its tasks easily and quickly compared to one person trying to achieve the goal. Groups have many advantages associated with them.

Less time consuming

Many and different ideas

High quality of work

Less pressure on the people involved

Are some of them.

How ever working in a group can also be a complex task. Disagreement between the team members might lead in to conflicts, which will waste the time. Also if one person fails to deliver the expected out come the whole project might end without giving the expected results. So to get the best results it is crucial to forming an effective team. Before forming a team it is necessary to find out the type of the group that is required. The following diagram shows the types of groups that can be found.

Formal Groups

These types of groups are more task oriented. For an example an organization assigning a group of employees in to a group to achieve a target. All the members of the group will have sub goals and responsibilities. Task groups and command groups come under this category. The difference between a command group and a task group is that a command group is permanent and the task group is not. A department of a company can be considered as a command groups where as a group that is dissolved after achieving the goals are described as task groups.

Informal Groups

Unlike formal groups the informal groups are formed by the employees themselves. An informal group could be formed for any reasons. Interests, support, growth, influence other are some of them. As shown in the graph friendship groups and interest groups come under informal groups. Friendship groups often consist people who are I the same age with same interests. Interest groups are more focused on strengthening the group. Most of the interest groups were established for the purpose of influencing other or winning rights.

4.2 Identify, explain about the facts that affects to the effective teamwork & describe what kind of threats are possible to the success of the organization.

Even though working in groups make achieving goals easy. For a group to be successful the understanding between group members needs to be in a high position. Practically a long period of time needs to be spent in order to build an effective group.

There are many threats that can affect the success of a group. Firstly since there are many members in a group there's going to be many ideas or views when the group meets an issue that needs to be answered. However all these ideas cannot implemented as the solution for the particular issue. So in this case finding the best solution is vital. This might lead in to conflict situations where each person tries to prove his idea is better than the others. This is a process that drags up for hours or maybe days. Basically it will waste the time and the project resources. This will also bring down the effectiveness of the team.

Poor Communication is another factor that can be found within groups that affects the performance of the group. Since all the work done by a group is interlinked, In order to work in a group the members of the group needs to be aware of the progress of the other members work. If a member is unable to cover up his work before the deadline other members should have the courtesy of helping that particular member to finish his work. This will not only help that particular member to finish his work within the deadline it will also help the group to complete the assigned project within the deadline but this is not possible unless the communication between the members is not good.

Most of the time a group consist more than one senior member. When appointing a leader most of the senior members might expect the leadership but only one person can be appointed. Once a leader is appointed the other senior members might not adhere to group leader. This will not only lead in to a conflict it will also slow down the work. This will have a direct impact on the performance of the team.

Lack of commitment of the members is another issue that will have an impact on the performance of the group. Most of the time lack of commitment happens because of demotivation. If the members are not motivated they might not give their fullest support to other group members and might not try to do their best to complete the work. This will remit heavy work load on other group members.

4.3 Briefly describe what source of an affect that the technology can give to the team functioning factor

Few decades back to work in a group or to have a meeting all the members were expected to come to a specific location. This is a very costly act if the members are stationed in different locations. It also takes more time to setup a meeting in this manner.

In the modern era with the development of the technology it has made possible to people to work in a group even if they are not stationed in different locations. For an instance a group can consist a person from America, a member from Europe and a member from Asia and still they will be able to work concurrently without any disturbances because of the technology that are available.

Following are some of the technology that has enabled team members to work even if they are not stationed in one specific location.


Mobile Phones



Conference software



These technologies keeps on evolving and adding new features enabling the user to do there work quickly and easily. For an example when mobile phones were introduced they were large and only allowed the users to make and answer a call but now a days the mobile phones have evolved from the large brick phone to sophisticated smaller phones that enables to even navigate from one geographical area to another and many more. Basically The mobile phones have become PDA's that enables the users to manage their day today activities, make conference calls, access internet etc.

All these additional features have made it easy to group members to communicate with each other even if they are not stationed in the same location. Also these technologies helps reduce many costs. For example if we take a large multinational company obviously it is going to have many branches in many different geographical locations. In some instances some employees might have to work in a group which consists few employees from other branches. When carrying on with the work in some situations these group members find the need of meeting the other members. If the technology is not available, this is going to cost the company a large amount of money becausethe company has to bear travelling, accomodation and food costs. But now with the help of the Conference software, Skype, 3G, Computers, Mobile Phones. All these costs can be omitted. If a member meet a need of talking to aonther group member mobile phones, emails, blogs can be used.

From my point of view the most important and the best features of these technologies are not mentioned above. The best features in these technologies are safety, proof and quickness. Unlike snail mail, e mail is quick and safe because it is encrypted. The copy that is saved in the sent items can act as a proof. Same with the text massages. Keeping backups and searching data in a traditional system is very hard and requires more time.