The Relationship Of Organization Structure Commerce Essay

The purpose of this report understands you about the organization behavior. To that it includes organization structure, cultures, leadership styles, management approaches, and motivational theories to understand you about the organization behavior.

For you to understand this terms this report uses Google and Creative Solutions. Google is a international IT based company which provide various kind of information to the world. Larry page and Sergey Brin are the founders of Google Company. Creative Solutions is also IT based company in Sri Lanka. By using this two companies you can understand how they using different organization structure, cultures, leadership styles, management approaches, and motivational theories to understand you about the organization behavior.

Task 01 – The Relationship of Organization Structure and Organization Culture

(http://en.wikipedia.org/wiki/Google, 2012)

Section 01

LO1.1 – Compare and Contrast Organization Structure and Culture.

In ICT Industry, there’s lots of companies in the world and in Sri Lanka that doing their operations. They provided many services to the people. Google is one of famous and leading ICT Company in the world.

Google is founded by two PhD students in Stanford University, the massive search engine Google officially launched in September of 1998. These two university students develop this Google very fast. The term of Google become officially in 2006, the term pop-up regularly in our normal conversation “Just Google it “. Newsday’s everyone knows about the Google and it’s the most popular searching engine in the network. Creative Solutions is has assisted international companies with software development, maintenance, support and quality assurance since 1999. By providing a high quality, cost-effective service out of their state of the art Research and development centre in Sri Lanka, they help their clients meet their deadlines and achieve higher level of profitability.

An organization structure a consists of activities such as task allocation, coordination and supervision, which are directed towards the achieved of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. And the Organization culture is the collective behavior of humans who are part of an organization and the meanings that the people attach to their actions.

Larry Page and Sergey Brin founded Google in September 1998. Since then, the company has grown to more than 30.000 employees worldwide with a management team that represents some of the most experienced technology professionals in the industry.

Executive Officers

Larry Page – CEO

Eric E.Schmidt – Executive Chairmen

Sergey Brin – Co-Founder

Nikesh Arora – Senior Vice President And Chief Business Officer

David C. Drummond Senior Vice President, Corporate Development and Chief Legal Officer

Patrick Pichette – Senior Vice President And Senior Financial Officer

Senior Leadership

Alan Eustace

Amit Singhal

Andy Rubin

Dennis Woodside

Jeff Huber

Kent Walker

Laszlo Bock

Rachel Whetstone

Salar Kamangar

Shone Brown

Sridhar Ramaswami

Sundar Pichai

Susan Wojcicki

Urs Hoelzle

Vis Gundotra

Board of Directors.

Larry Page CEO

Sergey Brin Co-Founder

Eric E.Schidmit

L. John Doerr

Diane B Greene

John L Hennessy

Ann Mather

Paul S Ottelline

K Ram Shriram

Shirly L Tilghman

And this is the normal structure of the Creative Solutions,

In this two organization their organization structure is different to each other. Google is the fourth-most admired company in the United States. Google was also listed as the top company to work for in both 2007 and 2008. Google is a one of most popular organization that many employees like to have jobs there. The main reason for this employee admiration is Google’s cross functional organizational structure, which the company maintains though seller leadership and innovative management techniques. And in the Creative Solutions using a functional organization structure. A functional organization structure is best suited as a producer of standardized goods and services at large volume and low cost. 

The culture in an organization plays a major role in the organization. The culture in an organization helps to attract the best talent available in the industry. Google was the one of few companies that successfully blended technology innovation with strong organization culture. The culture in the Google is very interesting, motivate and attractive. Culture in Creative Solution is same as the Google, but exactly not like that. Because the culture in Creative Solution also is very motivate, interesting and attractive. They using small methods to attract innovative people and good customers.

LO1. 2 – The Relationship between Organization Culture and Structure

(http://www.businessdictionary.com/definition/organizational-culture.html, 2012)

(http://www.wisegeek.com/what-is-the-relationship-between-organizational-structure-and-organizational-culture.htm, 2012)

The Organization Culture in Organization is a major role. Organizational structure and organizational culture have a dependent relationship with one another. In the business world, management structure determines the behaviors, attitudes, dispositions, and ethics that create the work culture. If a company’s organizational structure is strictly hierarchical, with decisions making power centralized at the top, the company’s culture will likely reflect a lack of freedom and autonomy at the lower levels. If the company’s management structure is decentralized, with shared power and authority at all levels, the culture is likely to be more independent, personalized and accountable. It’s really easy to work in that structure.

The way company allocates power and authority determines how employees behave. These choices manifest in a company’s organizational structure and organizational culture. Most companies use a hierarchical structure that looks like a pyramid. The chief executive or president sits at the very top of pyramid. Other officers directly report to him.

In the Google, there organizational structure and organizational culture also connected to one another. There hire people who smart and determined, and they favor ability over experience. Although Googlers share common goals and visions for the company, they hail from all walks of life and speak dozens of language, reflecting the global audience that they serve. And they not at work, Googlers pursue interests ranging from cycling to beekeeping, from Frisbee to foxtrot. They strive to maintain the open culture often associated with startups, in which everyone is a hands-on contributor and feels comfortable sharing ideas and opinions. In their weekly all-hands meetings not to mention over e-mail or in the café_ Googlers ask questions directly to Larry, Serge and other execs about any number of company’s issues. Their officers and cafes are designed to encourage interaction between Googlers within and across teams, and speak conversations about works as well as play. The organizational structure is very different because they are made up of many shareholders that have a say in what the company does and turns into.

In Creative Solutions, their culture and structure attached to each other. The culture in Creative Solutions is very interesting and very motivate, and they using a functional organizational structure. It’s best suited as a producer of standardized goods and services at large volume and low cost.

LO2.2 – Organizational Theory

(http://management.blurtit.com/q7346416.html, 2012)

Organizational theory and management theory is used in many aspects of a working business. Many people strive to adhere to the theory to help them become better at their jobs or more successful in life, although this may lead to them having to sacrifice some of their personal principles in order to succeed.

One example of following organizational theory in the financial sector would be an employee or manager who wants to know how to achieve goals by having a set structure to follow. In addition, someone in a Human Resources sector will have to make decisions throughout their working day that will undoubtedly change the structure and practice of a working day for all other employees in the company.

If an individual gets so wrapped up in trying to fit the mould of what they interpret their role should be in terms of organizational theory, they may start to neglect other areas of business.

In the same way, management theory may also underpin the personal values of some individuals. 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.

It is difficult to try to execute both management and organizational theories as a psychological contract between the employer and employee still needs to be maintained. This will need to consider how fairly the company is treating the employee and how ‘fairly’ the employee is treating the company, i.e. are they actually putting 100 percent effort into their work? Any changes to the organization or management in a company, is undoubtedly going to have an effect on all of this.

LO2.3 – Different Approaches to Management used by Google and Creative Solutions.

Google –

Human behavior approach.

This is based on psychology and social psychology. It means management should understand about the human behavior. Management should increasing productivity through motivation and good human relations. In Google they creating friendly, peaceful and relaxed environment for their employees. In Google, their employees highly motivated to their duty well. They maintain a simple and open communication structure. Google has a flat structure that uses cross hierarchical, cross functional teams and they good at decision making.

Relationship approach.

This means keeping a good cultural relationship. Relationships exist among the external as well as internal environment of the organization. Cooperation among group members is necessary for the achievement of organization objectives. For effective management, efforts should be made for establishing harmony between goals of the organization and the various groups therein. In Google they maintaining with the Laissez- Faire style. This will help to keep to good, strong relationship between employees and the leaders in the Google.

Selecting employees approach.

In Google, they selected their employees in a special way. They get billions of application in a year. So they are maintaining a good employees selecting system. They are selecting people with good skilled, good personality and with high academic achievements because it’s easy work with them and its saving Google’s money.

Creative Solutions –

Culture approach

Creative solutions create a good, friendly and attractive environment for their employees that can work easily. It’s always encouraging the employee to do their best and highly motivated.

Keeping same leadership style

In Creative Solutions they using Democratic Leadership styles, and its help them to encourage their employees to make good decisions and sharing ideas.

Interpersonal behavior.

Creative Solution always focusing on their employee’s interpersonal behavior. So that they always selecting, training their employees to make them as good, skill full employees.

Section 2

LO2.1 – Different Leadership Styles

There are different leadership styles in an organization they used to have a successful growth. There are three leadership styles in management,

Autocratic Leadership Style

Democratic Leadership Style

Laissez-Faire Leadership Style

In Google they are using Laissez-Faire Leadership Style. The French fraise means “leave it be”. It describes a leader leave his her colleagues to get on with their works. These types of leadership works for teams in which the individuals are very experienced and skilled self-starters. The Company hired smart engineers, promoted most brilliant into leadership positions and then pretty much left them alone. The reason to do that, they were smart and if they have any problem they figure it out or ask questions if they needed help. Google took time and effort to find out the leadership qualities that are most important in their culture. And in the Creative Solutions, they using the same leadership style in their culture. The effectiveness of this Laissez-Faire Leadership style is final responsibility still lies with the leader. The Laissez Faire leader lets her followers have free reign over the approach, the decision making and basically all aspects in getting the job done.

In Creative Solutions they are using democratic leadership style in their structure. Democratic Leadership style, leader will take the final decision, and he/she invites other team members to contribute the decisions-making process. By involving this increase the job satisfaction and also develop the people’s skills, and so motivated to work hard. This style takes more time to take things happen, but the end result is better.

LO3.1 -Faced the Technological Breakdown Using Different Leadership Styles

Last week there’s a huge technological breakdown, and its effect to the whole industry. Because of that most companies in the industry has fallen down in their operations. This technological breakdown not only effect to the industry, its effect to the share market also. And also it effect to the industry in worldwide. In this situation Google is different leadership styles to face this technological breakdown. And Creative Solutions also using different leadership styles to face this technological breakdown.

Normally Google is using Laissez-Faire Leadership style in their organization and Creative Solution using Democratic Leadership style in their organization. But in this case it’s better if they use all three leadership styles, because good leaders use all this three leadership styles to get the best result in their activity. By using all three leadership styles in this case, we can avoid this technological breakdown.

In autocratic leadership style leaders tell their employees to what they want done and how they want it accomplished, without getting the advice from their followers, its better use it is when you have all the information to solve the problem, you are on short time and your employees well motivated. And this is using for only rare occasions. In democratic leadership style, involves leader including one or more employees in the decision making process, it allows them to become part of the team and allows you to make better process. And the leader maintains the final decision. By using all this three types of leadership styles it’s easy to identify the problem and faced it well, and also it’s good for the employee’s motivation.

Section 3

LO3.2- Motivational Theory

(http://www.managementstudyguide.com/maslows-hierarchy-needs-theory.htm, 2012)

Motivation is a word divided from Latin word ‘movere’, meaning “to move”. Motivation is a general term applying to the entire class of drives, desires, needs, wishes, and similar forces. Motivation can be either positive or negative. It’s a process that accounts for an individual’s intensity, direction and persistence of effort toward attaining an organizational goal.

Diagram 01.

There are Three Major Motivational Theories in management.

Maslow’s Hierarchy Theory of Needs

Aldefer’s ERG Theory

Herzberg’s Motivation-Hygiene Theory

Maslow’s Hierarchy Theory based on the assumption that there is a hierarchy of five needs within each individual. This Maslow’s Hierarchy Theory most often display like a pyramid. The lower level in the pyramid, are made for the most basic needs and the complex needs are in the top of the pyramid. Each one of these needs significantly satisfied its drives and forced to the next level. Applying this Maslow’s Hierarchy Theory to the Creative Solutions, we can identify what are the higher-order needs and what are the lower-level needs and then can find a way to satisfy them.

In Aldefer’s ERG theory, he recatogorized Maslow’s Hierarchy Theory of Needs into three simple categorized. They are,

Existence Needs

Relatedness needs

Growth Needs

Diagram 02

Existence

Relatedness

Growth

Applying this into the Creative Solutions we can identify the most concrete needs and satisfy them. Existence needs are the most concrete needs and after satisfying them we can think about the next level and it’s automatically jump into the next level.

In Herzberg’s Motivation-Hygiene Theory, there are two kind of factors affect on motivation and they are Hygiene factors and motivators. Hygiene factors determine dissatisfaction and motivators determine satisfaction. Herzberg’s theory confirms that only satisfaction can make a good productivity. Applying this to the Creative Solutions they avoid unpleasantness at work and create job satisfaction in the working environment. So its help to made a good service to the customer

LO3.3 – Motivational Theory for Managers

(http://www.accel-team.com/motivation/, 2012)

As a motivational theory Herzberg’s Motivation-Hygiene Theory is suitable for the managers in Creative Solution. Applying this motivational theory to the Creative Solutions, it helps to motivate managers and get the best result from them. There are two factors in Herzberg theory, they are

Hygiene Factors

Motivational Factors

Hygiene factor are those are essential in a work place. If its not entered to the work place, then they lead to the dissatisfaction. These factors describe the job environment/scenario. Hygiene factors include,

Pay.

Companies Policies and Administrative Policies.

Fringe Benefits.

Physical Working Conditions.

Status.

Interpersonal Relations.

Job Security.

And motivational factors are motivating the employees to the superior performance. Motivational factors are called satisfiers. Motivational factors include,

Recognition.

Sense of Achievement.

Growth and Promotional Activities..

Responsibility.

Meaningfulness of the Work.

The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and give their best to the organization. The job must utilize the employee’s skills and give a good compete to the competitors. Focusing on the motivational factors can improve work-quality.

Task 02 – HR Manager Presentation in Google

Conclusion

The purpose of this report understands the organization behavior in the world. It can understand how the organization using different organization structures, cultures, motivational theories and leadership styles.

For that this report uses Google and Creative Solutions as the international and local company. So that it’ll help to understand how these two organizations uses different organization structures, cultures, motivational theories and leadership styles.