Organization and Behaviors - Essay Example

? Organisation and Behaviours Client’s xx February Part A: Specification of Assessment Report Question P1: Compare and contrast different organisational structures and culture I have learned in the course of my study the importance of organisational structures in terms of strategically placing the workforce and the tasks in a kind of system that allows smooth operation and successful achievement of the organisation’s goals. As the business world becomes more complicated and the competition becomes even tighter each day, the importance of establishing a management structure that clearly defines the relationship between the various positions and the functions of each position has become inevitable. There are different types of organisational structure, however the three main types are: (1) Functional / Market; (2) Product and Market; and (3) Matrix. The functional/market type of organisational structure is basically categorised under the traditional style of management (Droege 2011). Per definition, it is a kind of structure wherein people are arranged according to the role they perform in the organisation (Brooks 2003). This type of structure is highly hierarchical and bureaucratic because distinctly classifying and separating the job from one to another creates a kind of structure that can be described as top-down authority management. In a functional organisational structure, people are arranged in departments which operate based on certain rules, policies, and standard operating process. Order and discipline are highly valued in this kind of organisation which normally results to a reporting system that usually follows a strictly entwined chain-of-command. However, the growing competition that exists in the business arena compels most organisations to expand and adjust to the changing needs of the business. With this circumstance, the purpose of the functional/market structure does not do companies any more justice as this kind of structure usually works well in small scale organisations. Hence, another organisational structure comes into operation and this is the product and market structure. Unlike the functional structure, product and market structure is more diversified and enhanced in terms of providing a quality and speedy decision-making (Droege 2011). Decision-making becomes more efficient and prompt in this organisational structure because the people who work within a certain product, customer, or geographic location are grouped together based on their capabilities, knowledge, and expertise. Compared to the functional structure, the product and market structure does not follow a strict top-down system of reporting, thus lessens pressure and increases work performance. However, one major problem with product and market organisational structure, which is minimised in the functional structure, is that the interest of a particular group can be put ahead of the goals of the entire organisation. Another problem here, which is also not an issue with functional structure, is the fact that creating different groups for different products, costumers, or locations can possibly lead to unnecessary expenses due to duplication of resources. The matrix organisational structure, on the other hand, is perceived to be the most effective kind of management system, specifically for large organisations (Droege 2011). It is basically the combination of the functional and product, or more structures. The matrix structure considers what the organisation requires in order to get the best of both worlds. Unlike the first two structures, the matrix is considered to be the most intricate organisational structure but most effective if properly pulled off. Not like the product and market structure wherein duplication of resources is an issue, a matrix structure can facilitate sharing of highly specialised employees and equipment. For instance, an employee who is an expert in a particular field can divide his/her time between one project and another. Also, because of this sharing concept in a matrix structure an exchange of ideas between different groups or departments is always possible. Apart from structure, culture is another crucial factor in any organisations. If structure categorises the people and their functions in positions or groups, a culture defines how a business operates based on its established values, beliefs, and norms. Like the organisational structure, there are also different types of organisational culture but the most popular and most used are: (1) power culture; (2) role culture; (3) task culture; and (4) person culture. The power culture is more like the functional structure of an organisation. It values hierarchy, and control and discipline are the priority. Also like the functional structure, this type of culture is usually seen in small scale organisations in which all of the decision-making processes depend on the top-most position in the company. Role culture, on the other hand, is more like the product and market structure of organisation. In this kind of culture, the people are divided into different departments based on its responsibilities and tasks. Although this kind of culture does not concentrate on one central figure or group, the well-defined procedures and systems which are required to be followed at all times usually make the organisation predictable and less flexible. The task culture, by contrast, is centred on the idea of team-based approach in carrying-out a task. This kind of culture is more of like a matrix structure wherein there are various reporting lines featured. In this culture, the expertise of the employees is more valued than the position. The person culture is, perhaps, the most different among the other types of culture. It is usually used in charity or non-profit organisations wherein the focus is on the people or a particular objective. In this type of culture, everybody is considered to be superior in their own ways. Indeed, it is the most individualistic and liberated kind of culture because the people operating within the organisation are provided the freedom to express themselves and undertake decisions for themselves (Huczynski and Buchanan 2000). Question P3 Analyse the factors which influence individual behaviour at work Organisational behaviour is another important lesson in understanding management. There are basically five important factors which influence individual behaviour at work. The demographic factors, or socio-economic background, of a person are the most fundamental sources of his/her values, beliefs and perceptions. An individual’s education, ethnicity, age, gender, nationality, religious beliefs, or even marital status can all impact how a person perceives things and circumstances. Therefore, the demographic factors have been important considerations for organisations in choosing the right person for the right position. The second factor that influences an individual’s behavioural pattern at work is the person’s skills and abilities. The physical capacity of a person and his/her ability to efficiently perform a pre-determined goal highly impact his/her behaviour. At work, if the person’s job matches his/her abilities and skills there is a huge possibility that this person will perform well. On the contrary, if the job requirement is incompatible with what the person can do and is trained of the person might be de-motivated and fail to meet expectations. Perception is another factor that influences a person’s behaviour at work. How a person gives meaning to the circumstances around him/her based on his/her reference certainly affects his/her behaviour towards work. Indeed, there are various factors which shape a person’s perception, but what is important here is that the organisation must always be aware of how to create a favourable working environment for everyone so that its people, no matter how they perceive things, will always keep a positive attitude. Attitude also impacts a person’s behaviour at work. Attitude, as defined, is the tendency of people to react positively or negatively to particular situations, people, or things (Brooks 2003). Again, there are different factors affecting a person’s attitude. Therefore, the organisation must always think of ways to maintain a positive working environment so its people will also have a positive attitude towards the organisation. A positive working attitude always yields to a successful achievement of the goals of the organisation. Finally, personality, or the characteristics and distinguishing attributes of a person, also impacts a person’s behaviour at work. Personality implies the uniqueness that exists in every member of the organisation. Having said that, it is important to always consider and respect the differences of people in order to create and maintain a positive working environment. Personality plays a huge role on how people behave given a certain situation. It is important, therefore, that organisations understand the personality of their people in order to further understand how they operate as individuals Question P4: Analyse how organisational theory underpins principles and practices of organising and of management Meanwhile, studying the different organisational theories help people understand the intricate relationships that exist within organisations. These theories provide knowledge about organisations from manifold perspectives, processes, and levels of examination. Moreover, organisational theories enlighten people about how organisations of different sizes, structure, and culture operate within certain business environment which are all highly important in underpinning the principles and practices of organising and management. Question P5: Compare the different approaches to management and theories of organisation used by two organisations Target Corporation is considered a premier organisation within the retail industry. It is highly admired for its accomplishments and its ability to teach other organisations while giving back to their society in general. One of the truly distinctive characteristics of Target Corporation is its focus on individual development. The genesis of this belief is that the customer comes first. The managers of the corporation believe that if associates are expected to treat their customers with attention and respect, associates should then be treated in the same manner. The management accomplishes this in many forms. Independence and freedom are embedded in the company’s culture. This is very much evident with how the management treats its team members and team leaders. Basically, what the company wants to inculcate into its culture is the idea of “assisted self-service” store instead of strictly self-service. On the other hand, Southwest Airlines is governed by a board of directors and company officers. The president of Southwest Airlines is Colleen Barrett, and the chairman of the board is Herbert D. Kelleher. Southwest views the rest of its organisation design and structure as informal and flat. There is little hierarchy, with empowered employees at all levels (Menon 2001). The decision-making strategies of Southwest Airlines are defined by its flat organisational structure and result in employees being empowered to make decisions (Menon 2001). Unlike other airline companies, Southwest employees are authorized to manage customer issues. In addition, workers and management work on committees to do planning and decision making as well as problem solving. Southwest Airlines reports high job satisfaction among employees; it is further noted for high morale and a highly motivated workforce (Miles and Mangold 2005). The amazing management practices of Southwest Airlines have fostered an empowered culture that is innovative, dedicated, loyal, and highly productive. Question P7: Explain the different motivational theories and their application within the workplace The word motivation may seem easy to define but in reality, defining motivation and truly understanding the philosophy and psychology of motivating people are relatively convoluted. Individuals can be motivated in various ways. Conventionally, motivation is understood as providing tangible rewards to employees as some kind of driving force to make them work harder and achieve more, and the most obvious tangible reward is a good salary. Financial rewards seem to be one of the conventional motivators. A number of theorists subscribe to the idea that payment is the most likely reason people wish to work. Graham and Sluckin (1954) and Opsahl and Dunnette (1966) stated that it is easy to find people industry who value money highly. F.W Taylor (1911) also believed that workers would be motivated by obtaining the highest possible wages through working in the best and most efficient way. Taylor believed that what workers wanted from their employers more than anything else was good wages. This approach is known as the rational-economic concept of motivation. But studies today show that financial rewards are not the only motivators of people in the workplace. Individuals are also motivated by knowing that they are being treated fairly in the workplace. John Stacey Adams (1965) subscribes to this in his Equity Theory. This looks at how fairly people are treated in comparison to others. When people decide if they have been treated fairly they will consider different inputs and outcomes. If an individual feels that they have not been treated fairly in the workplace it will have an adverse effect on how motivated they are towards their job and will therefore affect their productivity. On the other hand if they think they are being treated fairly this will have a positive effect on their performance. Certain types of motivation can also be described as Intrinsic. This is where the individual is motivated by a “psychological” reward either by facing and overcoming challenges or by their individual achievements. There are many theories that support both Intrinsic and Extrinsic motivation. Lawler (1968) gives an insight on job design and how it can affect motivation. He argued that making jobs more challenging (job enrichment) and giving the individual more tasks (job enlargement) will increase an employee’s sense of accomplishment and achievement after good performance. This will help satisfy their higher needs as described by Maslow in his hierarchy. The correct job design for an individual will increase their satisfaction which in turn will lead to motivation and a considerably improved performance in the work place. It is however important to take individual differences into consideration as differences in motivation do exist. The changes in the nature of jobs therefore vary in terms of how effective they are. Elton Mayo’s (1924-32) theories also support the idea of Intrinsic Motivation. He stated that workers are not just concerned with money and that their motivation could be improved by satisfying their social needs whilst they are at work. Vroom’s Expectancy Theory (1964) looks at motivation in a different way. He believed that individuals can be motivated by the results of their actions. In order to explain his theory Vroom constructed a model that had three variables. The variables were force, valence and expectancy. Force is the effort an individual will use in order to carry through a particular course of action. Valence is how attractive or unattractive the outcome of this action is and Expectance is the individual’s expectation that the outcome will be met. According to Vroom, motivational force is a function of valence and expectancy. This is shown in the following formula: Force = Valence x Expectancy or (F = V x E). It can be argued that the most significant factor that affects motivation in the work place is the attitude of the individual. Douglas McGregor (1960) defined two assumptions that can be made about the attitude of an individual. His assumptions are known as Theory X and Theory Y. If an individual is a Theory X worker then their motivation can only occur through security levels and physiological levels. He concludes that Theory X workers dislike work. They have a lack ambition and they do not want to accept any responsibility. It is therefore impossible for them to achieve a higher level such as self-actualization and they will never realize their full potential. Theory Y workers on the other hand are motivated. Their motivation occurs at the affiliation, self-actualization and esteem levels as well as the physiological and security levels. McGregor states that this is because Theory Y workers have self-direction and self control towards objectives and they want to accept and purposely go looking for additional responsibility. They do have ambition and are therefore more likely to fulfil their potential. Question P8: Assess the relationship between motivation theory and the practice of management A question frequently raised by management leaders is “How do we motivate our employees?” Effectively motivating workers to attain a common goal is one of the most significant functions as a leader. There are various incidences that challenge organizations on how they can retain employees due to limited opportunities for advancement and the present competitive labour market. It does not seem situations will improve in the future. The increasing turnover rate of employees shows a loss of skills, knowledge, and experiences and can result to a significant economic impact and cost to organizations as well as impacting the needs of the consumers. Therefore, leaders who can motivate their team members assist the organization by ameliorating employee retention and reinforcing positive behaviours (Ramlall 2004). Question P10: Investigate the factors that lead to effective teamwork and the influences that threaten success. P1 Organisations are moving towards a team environment because work teams modularize organisational tasks, effectively streamlining the organisation’s effort toward a common goal. The strategy of developing teams is seen in the light of employee motivation; employees feel more empowered if they are given some level of autonomy in doing the tasks delegated to them. To foster such strategy, teams are of critical importance especially in organisations that comprise a large number of employees. As work settings increasingly evolve in complexity, engaging a rising number of interpersonal interactions, individual effort has a diminishing impact. Thus, to increase efficiency, a group effort is necessary. The development of teams has become a vital strategy in many organisations. Team building is a key element in buttressing and improving the effectiveness of small task groups and must be an essential ingredient of a total program of organisational development. Effective teams have special features that enable them to excel at teamwork and accomplish special performance benefits. On top of technical and administrative skills, a necessary feature for the success of teams is interpersonal skills. Members of a team must be able to communicate effectively, by means of both one-on-one and intra-group modes. Cooperative and collaborative decision-making within and among teams entails the skills of influencing other people, group problem solving and conflict resolution. Through learning, team members must gain problem-solving skills that aide in homing in on problem areas, collecting facts, analyzing causes, producing alternatives, choosing solutions, and other related aspects (Dinkmeyer & Eckstein 1995: 199). Part B – Research: Individual Presentation and Report Response to Question 1: Target Corporation, with its bull’s eye logo, is one of the biggest retail companies in America. It adopts the motto, “Expect more, pay less” which proposes that consumers can get a lot of things without spending too much money. The corporation has been very successful in business so far due to its commitment to the customers, style in running the organisation, and employment processes. In fact these commendable characteristics of the company make them one of the Most Admired Companies in 2005 according to Fortune Magazine. What makes Target Corporation great is the fact that it embodies essentially preserved, strong, and dedicated organisational and corporate cultures in order for the organisation to adapt to rapidly changing times. It heavily promotes executives from within, provides positive atmosphere to customers and its team members, and basically has charismatic CEOs. It drives to make an impact on society and to not just make profits. Independence and freedom are embedded in the company’s culture. This is very much evident with how the management treats its team members and team leaders. Basically, what the company wants to inculcate into its culture is the idea of “assisted self-service” store instead of strictly self-service. Training, recruiting, and retention programs all conform to this philosophy, which in return helps Target Corporation internally and externally as an organisation. Target store managers reportedly rate workers using a color-coded system: green is positive, yellow is alarming and red signifies a problem (Rowley 2003). The managers monitor this color-coded system to see what areas they need to improve on in regards with its employees work habits or customer service skills. Target feels that a positive change to employees also creates a positive atmosphere for customers to shop, and this allows Target to succeed in the retail market, as well as permit the demand for stores to grow. With the growing number of stores, Target continues to build a reputation of superb customer-employee relationship that is truly significant to the corporation’s success. Response to Question 2: On the other hand, preserving the core ideology is also of great concern for any organisation striving to build an institutional that will stand the test of time. The concept of promoting key leadership positions from within the organisation increases the likelihood that the new leader has the right attitude for the organisation. Moreover, management training programs not only facilitate the progression of people, but also allow organisations to further solidify their core ideology. Target Corporation has always considered its team members whenever a higher position becomes available. In fact, most of its leaders are all promoted from within (Clifford 2001). These leaders all demonstrate strong alignment to the core ideology and learn the Target culture through living it in their daily performance of their duties. Hardly ever does any employee enter into management without first moving through the ranks and assuming different management classes or programs offered by the corporation. In addition, Target spends a large portion of its capital resources on personal development and it offers an online job announcement system that makes all new job opportunities accessible to all associates. This highly helps the organisation in its method to hiring from within. This organisation thoroughly selects, furthers, and promotes managerial talent grown from inside the organisation to the greater degree. However, Target believes that leadership is not the single most important factor to really succeed in the business world. Rather, it is the combination of both leadership techniques and the leaders’ personal traits. The fusion of these two factors allows them to create a central ideology that persists beyond their tenure as the leader. The need for new ideas and creativity is also a main part of Target Corporation’s culture to grow continuously. Therefore, it creates an environment that motivates its team members to collaborate effort towards keeping an impenetrable culture. The employees are always taken care of and its customers are constantly served as the customers wish to. Target Corporation never stops from realizing substantial growth. The company then develops and leads a team of strong managers to help establish new lines of business, embrace technology, and spearhead international growth without compromising its core ideology. Response to Question 3: With the corporation’s preserved, strong, and dedicated culture, Target has outdone themselves in regards with maintaining their status as one of the world’s leading retail chains. In following the organisation’s philosophies and innovations, Target has greatly grown. Their competitive training and development offered to its team members prove to be effective in creating a talented and innovative team. Its image in providing a pleasurable experience to its customers makes them one of the top quality retail stores. Target’s culture in providing motivation to its team members, and establishing positive relationships between employees, managers, and customers are all essential in keeping the company on top. Target Corporation, in totality, has clearly understood the needs of the people serving for the company and the people that the company serves for. Nonetheless, the corporation has surpassed their competitors and created a mass empire in the discount retail market. Response to Question 4: It is part of the corporation’s organisational culture to give the utmost service to its customers. Therefore, to further enhance its way of providing services to the people, Target uses technology. The company chooses technology and innovations as their main objective for acquiring this great success as a corporation. During the initiating years of Target victory, its management employed various ways to have technology work for them in a positive manner. “In 1996 it installed a computerized payroll system to serve the chain. As early as 1970, it produced daily reposts on what had sold in stores, and in 1972 it began testing electronic point-of-scale terminals” (Rowley 2003: 154). Target’s way of looking at technology is to have sophisticated technology controls, which organizes inventory, sales, and other important information for the corporation (Rowley 2003). In today’s society, technology has greatly evolved, and Target has kept up with it. Some may even say that Target is the leader in retail technology. Response to Question 5: During the course of this research, I realised that I actually had limited number of relevant resources pertaining to the company I chose to discuss. Although Target Corporation is huge and popular organisation, I was not able to comprehensively cover the leadership style(s) which pervade within the organisation. I also was not able to find more information about the structure of the company that could have helped me further understand the management and working environment in the company. Next time, I will be more resourceful in obtaining information about my chosen organisation. I could have checked on online libraries for more details about the company. List of References Brooks, I 2003, Organisational Behaviour, Individuals, Groups and Organisation, 2nd ed. Prentice Hall, Harlow. Clifford, L 2001, ‘Getting Malled: Big Retailers Are Locked In A Bloody Battle For The Shrinking Middle Class Pocketbook’, Fortune, vol. 144, no. 2, p.114. Dinkmeyer, D and Eckstein, DG 1995, Leading by encouragement, CRC Press. Droege, SB 2011. Organisational Structure. [ONLINE] Available at: http://www.referenceforbusiness.com/management/Ob-Or/Organisational-Structure.html. [Accessed 20 February 2011]. Huczynski, A and Buchanan, D 2000, Organisational Behaviour: An Introductory Text, Prentice, London. Menon, S 2001, ‘Employee Empowerment: An Integrative Psychological Approach’, Applied Psychology, vol. 50, no. 1, pp. 153-180. Miles, SJ and Mangold, WG 2005, ‘Positioning Southwest Airlines through employee branding’, Business Horizons, vol. 48, no. 6, pp. 535-545. Ramlall, S 2004, ‘A review of employee motivation theories and their implications for employee retention within organisations’, Journal of American Academy of Business, vol. 5, pp. 52-63. Rowley, L 2003, On Target: How the World’s Hottest Retailer Hit a Bullseye, John Wiley & Sons, Inc, New Jersey. Read More