ST PATRICK’S COLLEGE

Organizations and Behavior

Executive summary

The report is all about the different organizational structure and behaviors existing in the

organizations. Organizational structure and behaviors have great contribution in the control or

influence the performance of the employees. Organizational structure and behaviors have a

relation. Culture or behavior contributes to shaping the organizational structure.

In the report, we can see four companies in the four cases. The first company is Oticon which is

a Danish company. Oticon is the world’s second largest hearing aids producer having

approximately 1200 staff. It has own research and production systems. Nice Cars one of the

four’s company. Nice Cars which passed through difficult phases and finally overcome the

recession after a long time. Another company is The Benefits Agency which is a service

provider. It provides different services including social security and providing employment. Last,

of all we can see the Zico computers Ltd which supplies computers and computers software

worldwide having 34000 staffs in 70 offices.

In the report, we will discuss and analyze the structure and behavioral facts of these companies.

The different behavioral issues and their effectiveness to these companies will briefly discuss in

the report.

Table of Contents

Executive summary.........................................................................................................................1

Introduction......................................................................................................................................3

Task 01: Comparison and contrasting different organizational structures and cultures..............3

Task 02: Explanation of how the relationship between an organization’s structure and culture

can impact on the performance of the business...........................................................................5

Task 03: Discussion of the factors which are influenced individual behavioral at work............6

Task 04: Comparison the effectiveness of different leadership styles in different organization.6

Task 05: Explanation of how organizational theory underpins the practice of management......8

Task 06: Evaluation of the different approaches to management used by different

organizations................................................................................................................................9

Task 07: Discussion of the impact that different leadership styles may have on motivation in

organizations in period of change..............................................................................................10

Task 08: Comparing McGregor & Herzberg theories indicating the one which can be more

effective when applied in the case of Benefit Agency..............................................................11

Task 09: Evaluation of the usefulness of motivation theories to managers.............................12

Task 10: Explanation of the nature of groups and teams and their behavior within

organizations..............................................................................................................................13

Task 11: Discussion of the factors that may promote or inhibit the development of effective

teamwork in Zico Computers....................................................................................................14

Task 12: Evaluation of the impact of technology on team functioning within a given

organization...............................................................................................................................14

Recommendation...........................................................................................................................15

Conclusion.....................................................................................................................................16

References......................................................................................................................................17

Introduction

The internal behavior and the norms of the employees are referred as the organizational

behavior. Every organization has its own pattern or structure. The behavior of the employees is

the most complex element of the organization. This organizational behavior influence directly

shaping the organizational structure. The efficiency of the works greatly depends on the effective

structure of the organization. An effective organizational structure helps to get the optimal output

from the human resource of the organization. As the structure depends on the behavior of the

employees, managers have to analyze and research the behaviors of the employees. It is not an

easy task to determine the behavior of the employees. In the report, we will see the different

behaviors and structure of an organization. We will also discuss the effectiveness and analyze

this briefly in the context of the cases and the organizations of the cases.

Task 01: Comparison and contrasting of the different organizational

structures and cultures.

According to Louis A. Allen, “Organization is the process of identifying and grouping the work

to be performed, defining and delegating responsibility and authority, and establishing a

relationship for the purpose of enabling people to work most effectively together in

accomplishing objectives.”

The relation and relational framework of the employees within an organization are referred as

organizational structure. Selecting or creating an effective organizational framework is needed to

have the best utilization of the workers and management. The organizational culture believes

tradition, thoughts of the employees within an organization. It influences forming the structure of

the organization.

Organization follows some popular structures. They are briefly discussed below:

Entrepreneur structure: Entrepreneur structure has control to the top management. The

decisional and other power remains center in this structure.

Functional structure: Functional structure divides or classifies the employees or workers

according to the functions.

Matrix structure: Sometimes managers use different skilled or experienced people to achieve

some special task or goals. It is referred as matrix structure.

Product based structure: When the employees or department are divided according to the

works or products is called product based structure.

Geographical structure: the Geographic structure is the structure where the organization has

some different offices or business to the different geographical places (Spagnolo & Giancarlo,

1999).

Oticon has a matrix structure. New chief executive recruited employees having multitalented.

The employees have more talent to apply it achieving goals more easily. Oticon may follow the

geographical structure if it combined with the parental company. Now Oticon runs its works in

Denmark having 1200 staffs. It mainly follows the functional structure as it has many

departments like research, production to run it successfully.

Organizational behavior influences to make an effective organizational structure. The

organizational systems, believe of the employees, the tradition all makes the organizational

culture. According to Charles Handy, there are four types of Cultures. Like as:

Role culture: Role culture concentrates on the rules and regulation and the actions of the

organization.

Power culture: Power culture is the management system where the power is centralized.

Person culture: Person culture always focuses on the benefits of the employees.

Task culture: Task culture motivates the employees providing incentives and other rewards.

Oticon has role culture. The chief executive Mr. and changed the structure and culture of the

organization. It introduced some rules and structure to finish the traditional structure.

Oticon a leading hearing aid producer company had horizontal structure. The management team

of the Oticon had only 10 members. Each of them was in top management to take decisions.

After joining Knud as chief executive the structure was changed as a matrix. Knud modifies the

structure as well as the culture of the Oticon as it was facing severe losses in the 90’s. Finally,

Oticon faced the profit by changing the pattern or framework.

Task 02: Explanation of how the relationship between an organization’s

structure and culture can impact on the performance of the business.Culture is one of the most effective elements top shaping the organizational structure. It also

directly influences the performance of the employees. Behavior helps to build an effective

structure and it helps to improve the performance. Some relationship and effects are discussed

below:

Administrative impact: The structure or the behavior helps to increase the efficiency of the

works. The employees of all levels can work effectively in a well-structured framework. The

efficiency and decision-making process will be faster by the effective structure.

Organizational Flaws: Effective organizational structure helps to flow the information of the

organization. Receiving the important and needed information organization need to establish an

effective structure.

Resourcefulness: Every organization needs a good structure to increase the creativity. In the

scenario, we saw the Oticon finally grow up by the creative structure. The powerful structure of

the organization helps greatly to increase the creativity of the employees.

Growing: Oticon faced severe recession but it had grown through the effective structure.

Organization grows in its structure. The effective structure is very much needed to grow

perfectly (Meglino & others1998).

Behavior is a complex element having a great impact on the organization. The success of the

organization very much depends on the structure as we saw Oticon overcome the recession by

the newly introduced structure.

Task 03: Discussion of the factors which are influenced individual behavioral

at work.Organization forms by individuals. Individuals work together to gain the organizational goals.

Individuals may have different behaviors. Individuals also can influence the organizational

behavior. Individual behavior is the personal beliefs, attitude, Perception, abilities, personality

and values & power of individuals.

The factors that are affected the individual behavior at work:

Perception: Perception is the sense or thoughts individuals learn seeing or hearing something.

Perception may vary from person to person.

Attitude: Attitude is the personal manner individual shows to the others. Attitudes make

differences from person to person.

Abilities: Ability is the skill, talent or proficiency one has. Ability is the skill of doing something

individually.

Race and culture: Race and culture may different from the other employees. race and culture

are gained by born.

Gender: Oticon has male and female employees. Sometimes many works remain in gender

oriented.

Personality: Personality is the attitude of individuals which is the beliefs of others to him

(Weary and others, 2012).

Values and power: Values and power are one of the most important elements of individual

behavior. Value is very much needed to become a success and make positive impression to

others.

Task 04: Comparison the effectiveness of different leadership styles in a

different organization.A leader is a person who motivates, inspire, direct and take decisions to become success gaining

the future mission. Leadership is the actions of the effective leaders. It includes all the major

activities of a leader. Employees get direction from the leader. Leaders always guide the

employees. There are different leadership style having own attribution.

Figure 01: Leadership style (Source- own).

Comparison of these leadership styles are given below:

Authoritarian style Authoritarian leadership is the leadership where the authority is in the

hand of central people. They make the decisional process.

Democratic style It is almost same the authoritarian style but the major difference is

leaders consult the employees to take a decision.

Transformational

leadership.

Transformational leadership is the leadership pattern where leaders

work and discuss with the employees and workers to identify the

changes and make changes in the task.

Leadership style

Authoritarian style.

Democratic style.

Transformational leadership.

Transactional leadership.

Transactional leadership.

Transactional leadership is the leadership where leaders focus on the

organization as a group. It focuses more on the group performance.

Leaders promote the works through rewards (Van de Ven and Andrew,

1986).

Nice Cars follows the democratic style. Facing losses it took a business tour with the employees.

The owner of the Nice Cars followed the style and makes it possible to regain the expansion.

Task 05: Explanation of how organizational theory underpins the practice of

management.Organizational theory is the theory which helps to create the structure. It is the plan to create an

effective structure. Organizational theory concerns of the organizational behavior to improve the

efficiency. Nice Cars owner also develop the theory to adapt the changes.

Organizational theory can be classified in different ways:

Classical organizational theory: the Classical theory is mainly based on the science. Scientific

theories are applied in the theory.

Figure 02: Organizational theory (Source- Own).

Organizational theory

Classical theories

Scientific Management approaches

Administrative theories

Modern organizational

theory

Systems approach

Socio-technical approach

Scientific Management Theory: It is one of the most used classical organizational theories. It is

based on science to gain more efficiency.

Administrative approach: Henry Fayol developed the theory of administrative approach

including some principles like as planning, organizing, staffing, motivating etc.

Modern organizational theory: Modern organizational theory was developed to cope with the

changes occurred by the change in the behavior or the cultures of the organization. Modern

organizational theory has some most used approaches:

Systems approach: System approach is the systems having some subsystems. Organization is a

system having these components.

Socio-technical approach: It is used to balance the social effect on the organization. It considers

the organization as social systems (Borofsky and Yael, 2015).

Nice Cars also has an organizational theory. It follows the systems approach. We saw in the

scenario that the owner had paid a visit to Japan with his team finding the questions of losses.

The owner observed the systems of the Japanese company and found the answers. It made Nice

Cars successful again.

Task 06: Evaluation of the different approaches to management used by

different organizations.The Japanese approaches to management theory were developed by William Ouchi. The

Japanese system of the management in more involved in management and the productivity is so

high. It is a model that can be used everywhere successfully. It has a highly developed system for

gaining efficiency. Japanese theory of management is also known as theory Z. theory Z is the

mixed theory of Japanese theory and American theory.

Western theory of management is the model which focuses more on the market allocation. It

focuses on the market regulating human resource, the skills of the labor, increasing the skills of

the employees. The theory believed that skilled and experienced employees can gain the better

management and market allocation.

The similarities and differences between the Japanese and Western approaches to management:

The management style of the Japanese and Western is not an individual method, it includes

philosophy of the both origin. The Japanese management had research on the American

approaches for 30 years and adapted approaches from it. Western management also researches

on the Japanese approaches. The Japanese management is more effective and productive.

Western management may fail to compete with the Japanese management. The relationship with

the employees in Japanese management is so strong. They deal and treat as employees as a

lifetime partner. Even they know the way to fired employees in facing an economic crisis. On the

other hand, the relationship of the employees with the Western management is not satisfactory.

The beliefs of the western management are employees are an external part of the organization.

Employees are part of the production whose get payment for their works. When the organization

paid them and become free from the responsibilities.

Nice Cars was facing severe recession. The owner took the decision to pay a visit to the Japanese

management. The management was 2 times slow from the Japanese management. Nice Cars

observed the production time of them was doubled than the Japanese automobiles. They took

steps to remove the mistakes to gain efficiency.

Nice Cars followed the Japanese theory that has some features like as:

Employees should be taken or considered as family,

Group work is effective than working single,

Employees need more space to show the talent and workings skills,

Skilled employees can develop the productivity and the ability of the works.

Task 07: Discussion of the impact that different leadership styles may have on

motivation in organizations in a period of change.Leadership is the process of motivating and influencing the employees of the organization. There

are different leadership style and their impact on the organization to motivate the employees.

Different leaderships and their impact on the motivation are given below:

Autocratic leadershipAutocratic leadership is the leadership style where leaders have

the ultimate power to control the employees. Leaders provide

orders and task instead of discussing with them. Organization

faces fewer difficulties to complete the task as the leaders select

the process. Employees motivate generally in the systems but

they don’t discourage as leaders take the time-oriented right

decisions.

Democratic leadership In democratic style, leaders discuss with the employees before

taking decisions. Employees take it positively. Leaders do so

when the task needs to do fast. The works of the employees

boost up in this system.

Laissez-faire leadershipLeaders observe the employees and find the fault or negative

impacts of the task. Employees can make decisions and

complete the task in their own way. Employees are more

responsible for the leadership systems.

Task 08: Comparing McGregor & Herzberg theories indicating the one which

can be more effective when applied in the case of Benefits Agency.

Comparison of McGregor theory X and Y and Herzberg’s Two-Factor theory:

McGregor theory X and Y Herzberg’s Two-Factor theory

Douglas McGregor developed the theory of X

and Y. X-factors are the motivators like

money, promotion etc. Employees of the

category work more effectively by getting

these. Employees of Y category need

recognition of their works. These people do not

Herzberg’s two-factor theory is one of the most

used theories of motivation. In the theory, there

are two factors to motivate or discourage the

employees. They are Hygiene Factors and

Motivator Factors. Hygiene factors are the

factors that discourage the employees. It may

demand incentives they get motivation by the

recognition of their works.

include salary, income, and financial reward.

Motivator factors are the factors that motivate

the employees. it includes the personal growth

of the employees, job satisfaction etc. (Worley

& Jewel, 2006).

The employees of the Benefits Agency want more independence. From my perspective, I

recommend that the employees need recognition of their works. The Benefits Agency can apply

the Y factor of McGregor to motivate them perfectly. As the employees are reliable to their

works and want more independence the Y factors will be able to motivate them perfectly.

Task 09: Evaluation of the usefulness of motivation theories to managers. Human resource is the most complex elements of the organization. Motivating the employees is

not an easy task. To motivate them perfectly managers should have a huge knowledge of

motivation as well as the employees to understand their needs. Motivation is the only thing that

helps to get the maximum output from the employees. Motivational theories help to know the

motivational facts and know the employees perfectly.

The usefulness of motivational theories to managers is given below:

Motivational theories help to know the employees needs deeply,

Salary or other financial motivators are not the only factors of motivation,

Motivation is needed to maximize the production as well as gain efficiency,

It reduces the employees turnover and opportunity cost,

It motivates employees greatly to gain maximum output.

Managers may fail to motivate the employees perfectly having poor knowledge of motivational

theories. To motivate the employees and build a great relationship with the employees it is very

much needed to know the motivational theories (Sommerfeldt & Vernon, 2010).

Task 10: Explanation of the nature of groups and teams and their behavior

within organizations.

The team is the combination of two or more people to work together gaining the mission. Groups

are also a combination of people to achieve the goals. There are may be some groups in a team.

Group is formed to achieve an individual work. The team is the main group of people.

Figure 03: Group behavior (Source- own).

Formal groups: Formal group refers the group which is created to achieve the organizational

goals.

Informal groups: Informal groups are made by the human resource. The vision of the group is

to build friendship relation among them. The informal group may be divided into two categories:

Friendship group and Interest group (Andersen & Erling S., 2008).

Zico computers Ltd follow the formal groups. It has many skilled and productive employees.

They are an informal group. Zico computers Ltd have many employees from the same culture.

The group is a part of the team. The team is the whole people in the mission of gaining the

organizational goal. More groups may form a team to accomplish the individual task. The group

Group behavior

Formal group

Informal group

Friendship group

Interest group

is a part of a team. The team is the main group of the people. The subgroups are called the

groups.

Task 11: Discussion of the factors that may promote or inhibit the

development of effective teamwork in Zico Computers.Zico computers are a large computer supply organization having huge employees and offices

worldwide. To create an effective team in Zico computers there are many factors to develop. It

may concern the following factors to develop the teamwork.

Technology: Zico computers is a technology based organization. The main products of the

company are a computer. Technology helps to build a more effective team. The communication

systems of the organization may develop by using the latest technology.

Communication: Communication is a must for effective teamwork. Each member of the team

should be connected to others for effective teamwork. The efficiency of works increases as the

communication system develops.

Leadership: Leaders play a vital role to build and run an effective team. Members get

information and guidelines from the leaders. So leaders as well as the leadership pattern fact so

much on the teamwork.

Diversity: Zico computers have offices worldwide. So many diverse people work together there.

Diversity is needed to merge the people from various cultures to make easy and comfortable at

teamwork (Bennett & Anthony, 2007).

Task 12: Evaluation of the impact of technology on team functioning within

Zico Computers.Today’s world greatly depends on the technology. In the age of globalization, technology must

cope with the global world. Zico computers Ltd is technology based organization and it also uses

technology on team functioning. Technology must for the team functioning of the Zico

computers. Various technology and their impacts are briefly discussed below on team

functioning:

Telecommunication: In the age of modern communication everyone has a mobile phone to

communicate with the world. We can use to communicate immediately to the employees and the

clients through mobile phones or telephone.

Communication: without good communication, Zico computers may fail to gain the new

customers or the previous clients. So it can use better communication systems to gain efficiency

in works.

Workstation: Computer is a must in the modern communication world. The offices need a high

speed modern computer to save the information and communicate with the internal members of

the company.

Networking: To make an effective team networking is a must. Without networking, Zico

computers will fail to build an effective team. Communicate with the employees and the internal

members it should have a developed networking systems.

Besides these technologies Zico computers need more advanced and the latest technologies to

build an effective team. Using the latest technologies Zico computers will able to build an

effective team to gain the goals more efficiently.

Recommendation

In the above report, we saw different cases on the organizational behavior and cultures. Behavior

and cultures affect greatly the organization to create the structure that may help to make easy

gaining the goals. Besides these managers should have more knowledge of culture, behavior as

well as the motivation to make the employees more effective at their works. Behavior and

cultures are the fact that helps to create a perfect organizational structure and that structure helps

employees to work effectively.

Conclusion

Organizational behavior is the thing that helps to judge the employees and know the employees

well. Employees are most complex elements of the organization. To gain ultimate feedback and

output from them managers need to know them and their necessity well. Knowing these we can

merge the employees together as a team. Teamwork is more effective than working individuals.

Technology is the thing that is needed for more efficiency at work. Managers should have perfect

knowledge of motivational theories to motivate the employees. employees satisfaction helps to

get more feedback and more feedback is needed for gaining organizational goals more easily.

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