Organizations and Behaviour - Importance of Organisational Structure and Culture - Essay Example

Organisations and behaviour AFFILIATION: Importance of Organisational structure and culture With the advent of time, the organisations have undergone drastic changes especially their structures and cultures have been improvised to comply with the requirements of the business world. Due to concentrated business activities, intense competition, globalisation and elimination of trade barriers, the corporations have to change their frameworks so that they can respond proactively to the changing dynamics of the business world (Bass & Bass, 2008). The scholars of the management field have carried out various studies to evaluate the latest forms of the organisational structures and new features of the organisational culture which are prevalent in the present firms. It was found that the enterprises have to design their business outline in such a way that every activity is synchronised and integrated (Hetland et al., 2011). Each and every activity has to be collaborated so that their combined effect is evident in the organisation’s performance (Chen & Huang, 2007; Nyabadza, 2010). The crucial requirements are changes in the corporation’s culture, procedures, policies, infrastructure, Information Technology (IT) and management styles so that they can meet the demands of the current market requirements (Kouzes & Posner, 2012). British Telecom and Ryanair In order to assess the organisational structure and culture at British Telecom (BT) and Ryanair, the websites of the two corporations have been reviewed in detail. From the analysis of BT’s strategy and management philosophy, it is evident that it has flat organisational structure so that there are less formal levels and hierarchy is simple. The major elements of the flat form of organisation are that all the functions are transparent and every business activity is clear (Mullins, 2010). In order to support the creation of innovative and creative culture, BT has made sure that it provides its employees with sufficient autonomy to make decisions, promotes team working atmosphere so that everyone is willing to make meaningful contribution, encourages risk taking behaviour so that there are new ideas and innovative solutions are implemented and the employees are involved in every vital business decision so that they feel valued and appreciated. However, on the other hand, Ryanair which is a low-cost European airline has a matrix form of organisational structure so that every department works in coordination with the other. The matrix form of corporations provides the departmental heads an opportunity of networking with key employees of other departments and develop strategic cross-functional teams. Such structures assist an organisation in efficiently utilising its resources and ease the decision making process (Mullins, 2010). However, the organisational culture is bureaucratic because mostly the decisions are made by the chairman of Ryanair. The head of the corporation believes in top down approach and there are pre-defined company policies and procedures. But it is promoting the teamwork approach within the business operations so that the employees work together in a collaborative manner and they can maintain the competitiveness in the market. In other words, the culture and structure of Ryanair and BT are different and each one is successful in its respective industry. Impact of organisational structure and culture on organisation’s performance Every organisation needs a well-defined structure so that the employees are aware about their responsibilities, reporting duties and position within the enterprise. Basically, the organisation structure provides a framework for carrying out the business activities and it gives a graphical representation of all the positions available within the firm (Bloom et al., 2011). In other words, an organisational structure comprises of the activities like supervision, task allocation and coordination so that the corporation’s goals are attained (Chen & Huang, 2007). It has been stated by Chen and Huang (2007) that structure of a firm is the viewing perspective or glass through which the individuals view their company and the work environment. The organisational structure affects the organisation’s performance in two ways; firstly, it lays the foundation for determining the company’s operating policies and procedures and secondly, the extent to which the organisation’s actions will enhance the organisational performance. Likewise, it is stated by Bloom et al. (2011) that there is no specific organisational culture which can be implemented in the firm as it varies among every firm depending on its industry, target market, level of business activity and area of operation. According to Mullins (2010), organisational culture provides direction, mobility and meaning in the business so that the resources can be effectively allocated by availing the opportunity of networking with different peoples inside and outside the organisation. Similarly, organisational culture is defined as the norms evident in the behaviours and attitudes of employees so that there is positivity within the work environment. When the employees will be happy with the work culture, it will be represented in enhanced level of profitability, increased customer satisfaction, high productivity, innovative and new products and services, rising employee retention rate and etc. (Chen & Huang, 2007). Hence, when the organisational culture is in compliance with the requirements of the employees, the desired outcomes will be achieved and overall the organisation’s performance will be enhanced. Factors influencing individual behaviour at work Almost all the employees are motivated to enhance their efforts level if they are contended with the organisation’s work environment and culture. It is imperative for the Human Resource (HR) department of the organisation to identify the elements which will enhance the productivity and satisfaction level of employees (Mullins, 2010). The crucial factors which influence the employee’s behaviour at work are as follows: 1. Leadership style of the managers/supervisors 2. Contribution of their work in the organisational goals 3. Interest and relevance of the responsibilities 4. Relationship with the colleagues 5. Standards and philosophy of the company 6. Individual’s personality characteristics such as interests, aptitudes, values, expectations and abilities (Kumari & Pandey, 2011). Leadership styles Various leadership styles As employees are the most valuable asset of the company, it is vital for the corporations to motivate them by providing them an appropriate working environment along with mandatory resources (Lipman, 2013). One of the major factors which impact the satisfaction level of employees is the leadership style of their supervisors or managers. As the leaders have to induce their subordinates to attain the goals effectively by following the right direction and implementing the most applicable approach, it is crucial for them to demonstrate a style which is in accordance to the requirements of their followers (Bass & Bass, 2008). Moreover, leadership is described as the method of mobilising, enlisting and motivating people to employ and utilise their intellectual competencies and abilities towards the attainment of a specific goal or purpose (Nyabadza, 2010). The major forms of leadership styles are charismatic, transformational, participative, autocratic, laissez-faire, situational, task-oriented and bureaucratic (Mullins, 2010). However, it is imperative for the leaders to select one approach which will motivate their subordinates towards task attainment direction. Every leader has to make sure that the leadership style is adapted in accordance to the type of organisation, the business environment, the company philosophy and the nature of the market (Hetland et al., 2011). BT has a charismatic leader who believes in trusting his employees and giving them leverage in their work. The person is of the opinion that when individuals are provided autonomy and friendly work environment they are willing to enhance their productivity level and make valuable contribution. Hence, the leader has made it imperative that he leads his subordinates by sharing his vision and assisting them in achieving the organisation’s goals. Steve Jobs of Apple is considered to have adapted a transformational leadership style as he revolutionised the working behaviour of his employees. He introduced the entrepreneurial features in the work culture so that the employees are motivated to recommend new solutions for customers and enhance the performance of the company. Hence, innovation, creativity, team working, agility and risk taking were the main features of leadership style demonstrated by Steve Jobs. Thus, the leadership style of the leaders i.e. executives, managers and supervisors influence the behaviours and attitudes of employees. A competent workforce is an indication of the presence and success of an effective leader. Therefore, it is mandatory for the organisations to create a competent pool of workforce by developing a competent leadership style of their organisational leaders. Organisational theory and management practice With the advent of time, a large number of practitioners and scholars have been making valuable contribution in the field of management by evaluating various aspects of the management practices. The organisation theory is developed on the basis that the business enterprises are the social arrangements for encouraging people to work in a collaborative way to achieve their goals (Mullins, 2010). In all corporations, both management theory and organisational theory are incorporated to utilise the potential avenues present in them. Some individuals try to adhere to the theory but they have to understand their personal traits to be successful on their jobs (Hetland et al., 2011). One approach of following the organisational theory is that the HR department might want to know the effective set of policies to inducing the staff members of the company to have excellent performance. But it will be crucial for the department to assess the requirements of the individuals so that they are provided appropriate set of tools and resources for performing their tasks efficiently (Kouzes & Posner, 2012). If too much emphasis is given on organisational theory, then other areas of a corporation may be overlooked. Hence, the management theory assists and organisation in keeping a balance between the organisational theory and management practices. The managers and leaders have to make sure that they determine the impact of any change in the organisation as it will impact the productivity level of the employees and overall performance of the organisation. Different approaches of management Since the organisations want guidance on carrying out their activities efficiently, they have to implement the best management practices within their businesses. When selecting from the range of approaches of management, it is imperative to embed the distinctive features of those one which align with the organisational structures, business world, market requirements and employees’ needs. The major approaches of management as developed by the scholars are classified as situational, social system, contingency, behavioural, traits, classical, bureaucratic, systems and operational (Chen & Huang, 2007; Northouse, 2012). Considering the present scenario, almost all the organisations are developing their management practices as a blend of contingency, behavioural and trait perspectives (Kumari & Pandey, 2011). For instance, BT has implied that it has a flexible strategy so that it can respond proactively to the changes in the marketplace. Similarly, it gives utmost importance to the employees’ needs and satisfaction level by providing them the most compatible job responsibilities and tasks. Thus, it has developed the management in accordance to the requirement of its business operations. Likewise, Marks and Spencer has the same traditional management approach of systems or scientific perspective. The company believes in organising everything in a disciplined form so that it can manage its operations effectively. Simultaneously, it makes sure that the internal stakeholders are satisfied so that it can prosper successfully in the business environment. Due to changing dynamics of the business world, it is mandatory for the corporations to realise the importance of strategic management practices. Every firm has to implement those business practices and policies which will enhance the performance of the organisation in the long-run and the desired objectives are successfully attained (Bloom et al., 2011). Motivation in the organisation Impact of leadership styles on motivation In every organisation, the staff is the major driving force of enhanced performance. In such dynamic and competitive business environment, only those corporations can survive who have a competent, motivated and loyal workforce (Mullins, 2010). In addition to the employees, it is imperative for the firms to have those managers and leaders who have the ability of getting the work done by the subordinates. As every individual has certain set of needs and is willing to go an extra mile to achieve them, the organisations have to make sure that they provide the employees with those motivators which will induce them to enhance their efforts (Chen & Huang, 2007). When the organisations are undergoing any form of change, the leaders have to identify the resistance points which can be encountered during this crucial phase (Northouse, 2012). For instance, the senior staff will be reluctant to adapt to new policies as compared to the fresh employees. There is fear of losing power, sense of job insecurity is developed, pay cuts are expected and decline in morale might happen as well. In order to mitigate the risk of decreasing productivity and de-motivating the employees, the leaders have to gain their trust (Kark & Van Dijk, 2007). The leaders have to give clarification about the changes which are happening so that the employees feel motivated and get themselves engaged in the modern work culture. Additionally, the leaders have to demonstrate the positive aspects of the organisational reforms so that the employees have clarity about their new roles and responsibilities. Each and every employee should be made part of the entire process so that the value and morale of the person is enhanced. Hence, the leaders have to make sure that they motivate the employees on continuous basis so that they remain loyal to the corporation and are willing to make worthwhile contribution in its enhanced performance (Hetland et al., 2011). Implication of motivational theory in workplace In the management field, the concept of motivation has been studied in detail because it is the crucial element for retaining the employees. When the workforce will develop positive associations with the company, then it will be willing to enhance its efforts and make worthwhile contribution in the organisation. In order to create a motivated and optimistic work environment, it is imperative to implement various motivational theories within the workplace (Kouzes & Posner, 2012). Some of the well-known motivational theories which have been developed by the experts are Herzberg’s Two Factor Theory, Maslow’s Hierarchy of Needs, McGregor Theory X and Theory Y, Taylor’s Theory, Vroom’s Expectancy Theory and many more (Mullins, 2010). The three most widely used theories are Herzberg’s Two Factor Theory, McGregor Theory X and Theory Y, Taylor’s Theory and Vroom’s Expectancy Theory. The basic foundation of all these theories is that the employee’s behaviours and attitudes are influenced by their perceptions, beliefs, values and self-esteem. Besides these internal factors, the employees’ behaviours are impacted by the organisational culture and norms as well (Kark & Van Dijk, 2007). For instance, BT has created a policy that the rewards will be linked to the performance of the employees which will be evaluated on the basis of attainment of their goals. Even those employees are appreciated who recommend an innovative idea or achieve breakthrough performance level; they are rewarded in the form of company-wide recognition such as presenting an award or provided benefits in accordance to their expectations. Likewise, Apple rewards its employees on the basis of their innovative ideas. It is the business practice that everyone has to do something new and different so that the person is rewarded and appreciated for the excellent contribution. Even the staff is encouraged to try out unique suggestions and rewards are given to those people who are willing to take risks. Therefore, the organisations should imply those aspects of the motivational theories in their enterprises which comply with their business requirements and corporate culture. Managers and motivational theory The motivational theories provide guidance to the managers about developing a motivated workforce. As every employee is encouraged to enhance the performance by his/her own set of motivating factors, it is important for the organisations to identify the motivators of each individual. It allows the managers to bring required changes within the organisation such as altering the management practices, improving the leadership styles, enhancing the performance management system and others (Bloom et al., 2011). As every motivational theory has certain key areas to be focused, the managers can accumulate those crucial aspects and try to embed them in the organisation. Simultaneously, there should be proper alignment between the organisational goals, management practices, leadership styles and employee’s motivators. In today’s world, the companies have to strengthen their internal sources to compete effectively in the market. Hence, the managers should implement the motivating factors which will increase the productivity level of employees and enhance the organisational performance (Lipman, 2013). Conclusion With the advent of time and developments in the business world, the structures, culture and parameters of the organisations have been refined and rejuvenated. Since the market changes on a frequent basis, it is mandatory for the organisations to create such a work environment which will ease the proactive and strategic approach of conducting business activities. The employees are the crucial asset of every company and it is vital for the enterprise to keep them motivated and satisfied so that they enhance their performance. When the organisation will have efficient workforce, it will be able to flourish and thrive successfully in its respective market. Now-a-days, every firm is trying to allocate and utilise its resources in the most efficient manner so that it can maintain its competitive edge. However, it is imperative that the management practices and leadership styles are in alignment with the industry standards so that the long-term success of the organisation is achieved. References Bass, B. and Bass, R., 2008. The Bass Handbook of Leadership: Theory, Research and Managerial Applications. New York, USA: Simon and Schuster, Inc. Bloom, N., Genakos, C., Sadun, R. and Reenen, J.V., 2011. Management practices across firms and countries. Harvard Business Review, Working Paper 10-052, pp. 1-40. Chen, C.J. and Huang, J.W., 2007. How organizational climate and structure affect knowledge management – the social-interaction perspective. International Journal of Information Management, 27(2), pp. 104-118. Hetland, H., Hetland, J., Andreassen, C.S., Pallesen, S. and Notelaers, G., 2011. Leadership and fulfillment of the three basic psychological needs at work. Career Development International, 16(5), pp. 507-523. 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The lived experience of the strategic leader: What effective CEOs do, how they do it and an exploration into how they think about it. [Online] Available at: [Accessed 6 December 2013] Read More