Requirements of organisation and behaviour

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Organisation and Behaviour

TABLE OF CONTENTS
INTRODUCTION .........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Comparison between CAPCO and HSBC.............................................................................3
1.2 Relationship amongst structure and culture...........................................................................4
1.3 Factors influencing individual behaviour ..............................................................................5
TASK 2............................................................................................................................................5
2.1 Comparing effectiveness of leaderships ................................................................................5
2.2 Organisational theories ..........................................................................................................6
2.3 Approaches to management...................................................................................................7
TASK 3............................................................................................................................................8
3.1 Impact of leadership on motivation .......................................................................................8
3.2 Comparison of application of motivational theories..............................................................9
3.3 Managers requirements ......................................................................................................10
TASK 4..........................................................................................................................................10
4.1 Nature of groups and their behaviour ..................................................................................10
4.2 Factors affecting team effectiveness in CAPCO .................................................................11
4.3 Impact of technology ...........................................................................................................12
CONCLUSION ............................................................................................................................13
REFERENCES ..............................................................................................................................14

INTRODUCTION
Organisations are formed by collective functioning of some individuals towards a
particular aim. The behaviours and attitudes of employees affects organisational structure and
culture. This report is based on the concept of organisation behaviour and factors that enhance or
affect this component in business environments. Capco being a renowned firm in finance sector
and HSBC, a dignified corporate bank of UK are considered for conducting research on this
subject. Since, these two companies are operating smoothly with strong foundational dynamics;
it would be easier to grasp an understanding of organisation and behaviour. This assessment will
cover a clear understanding of structure and culture of both the companies. Moreover, certain
brief details shall be provided regarding leadership, management and motivation techniques that
can be applied in an enterprise for enhancing its functioning.
TASK 1
1.1 Comparison between Capco and HSBC
Capco and HSBC are two leading companies in finance sector. Organisational structure is
designed for systematic management of various business activities. The purpose behind
functioning of a company must be served when selecting a structure. Capco has a flat
organisational structure with matrix influence. The reason behind choice of this arrangement is
business process of the company. Capco has to deal with projects that require diverse set of
skills. Matrix structure helps in getting this quality in work while flat structure decreases the
complications of managing different levels. Employees are arranged according to this structure
within a company. It is significant that culture is completely based on this choice of structure
(Wood and et. al., 2016). Charles Handy proposed a theory that relates to four types of culture
in a business organisation. According to this theory, Capco has task culture in its working
environment. This type of culture is initiated because task culture provides flexibility and
innovation to business processes.
On the other hand, HSBC has a divisional structure. Business organisations that have
divisional structure, consists of separate functioning departments or teams. Basically, HSBC
chose this structure to semi-automate its business operations and manage complete processing at
international level smoothly. The first division is made at international level that is according
to continents and then separate business centres or banks are established in each operational

country. Since, individual working departments are functioning in the organisational structure
of HSBC; a person culture is developed. HSBC Bank Middle East Limited is not answerable to
the business centre that is operating in Egypt. This implies that individual departments function
independent and seek only HSBC Holdings UK as the chief authority.
1.2 Relationship amongst structure and culture
Organisational structure and culture have a deep routed relationship. For Capco to
develop in international markets, the structure of organisation must be designed in a way that
positive working culture is established. The organisational structure that is developed in Capco is
a flat structure. Employees are assigned specific roles and responsibilities in accordance to this
structure. Basically, structure or arrangement is the foundation of communication channels
within business organisation. When employees will have effective communication, they will
develop certain bonding amongst their colleagues. This enhances a healthy corporate culture.
According to Charles Handy's theory of organisational culture, task culture is based on
team formation that leads to accomplishment of particular tasks or projects. Capco organisation
requires teams which are innovative and competent enough to meet deadlines. The structure and
culture of company have deep interlinks. Flat structure with matrix combination has helped the
organisation to experience flexibility with greater employee support and easy management.
Matrix combination helps in grouping individuals with diverse skills. Although certain risk is
involved, Capco has been experiencing great success with this organisational structure and
cultural environment. It has helped the company to fight complex challenges that often occur in
finance industry. Task culture complements flat structure because employees are completely
aligned with business objectives.
1.3 Factors influencing individual behaviour
Individuals or employees that provide their services to Capco must be completely
satisfied with their working environment and job. There are certain factors that can influence this
individual behaviour. These are described ahead:
Personal factors: Individuals working in a business enterprise like Capco are highly
influenced by personal factors. Employees’ behaviour is a display of his inner attributes and
attitudes. Age, gender, personal well-being, mental and emotional health, cultural perceptions,
religious beliefs, etc. are certain components that form the personal factors affecting behaviour

of individuals (Rothaermel, 2015). A person can be productive and profitable only when there is
balance in his personal attributes. Personality is also a part of personal factors. Different traits
which are portrayed by an individual in several circumstances are conscientiousness,
extraversion, agreeableness, neuroticism and openness. All these traits create certain barriers
while developing relationships with colleagues.
Leadership: Managers and leaders are the initiators of a culture inside a company. Their
actions and decisions have a great impact on behaviour of employees. If leaders cross their
professional boundaries and take biased decisions, then inequality and injustice will be
predominant in functioning structure (Tourish, 2013). This will lead to production of negative
atmosphere inside the culture. Hence, it is very important for Capco to take appropriate decisions
regarding selection of particular leader and manger.
Job responsibilities: Work pressure and ineffective time management from the
administrative side of company is also a factor that affects individual behaviour. The type and
amount of responsibilities must be divided in accordance to skill level and capabilities of a
person (Mihalache and et. al., 2014). Overburdening will automatically result frustration and
anxiety towards company. Moreover, individuals will not be able to maintain work life balance
which will affect their health and mental status simultaneously.
TASK 2
2.1 Comparing effectiveness of leaderships
Leadership Style Capco HSBC
Autocratic styles Capco has flat organisational
structure. Autocratic
leadership when implied in
this structure may result in
quick decisions but innovation
levels and creativity will
decrease.
Overall operations of the
company are easily managed
Divisional structure is
practised in HSBC which
involves separate functioning
of various operational
departments.
Autocratic leaders tend to
impose their decisions over
their subordinates or followers.

when autocratic leaders will
rule (Miner, 2015). But
autocratic leaders have a
tendency to rule like dictators
and do not entertain views and
opinions of other individuals.
It also disrupts company's
working environment.
Every functioning department
have their own style of
working which cannot tolerate
high levels of interferences
(Naylor, Pritchard and Ilgen,
2013). Hence, HSBC will face
certain difficulties in this
leadership.
Currently, HSBC doesn't have
an autocratic leader.
Transformational style Basically, transformational
leaders have an attitude which
involves complete
development of the company
with a long term vision of
future.
They do not believe in
individual progress. So, Capco
can prosper a lot with help of
transformational leadership in
its working atmosphere.
This type of leadership
involves development of a
motivational atmosphere
which boosts confidence levels
of employees. People tend to
develop interests when
transformational leaders are at
power (Shafritz, Ott and Jang,
2015). This means that HSBC
will also emerge and flourish if
transformational leadership is
implemented.
From above table, it is clearly depicted that the impact of organisational structure is quite
different when considering autocratic and transformational leadership styles. Modern day
functioning of Capco and HSBC is based on transformational leadership. It is a bit dominant in
their working arrangement because business organisations nowadays aim at sustainability. This
concept can only be achieved when overall development is guaranteed which is possible with
transformational leadership.

The above comparative table describes the effect of two leadership styles in the
functioning structure of Capco and HSBC. The significance of leadership style is felt when
businesses face certain crisis situations. Since, leaders and managers provide working path to
employees, their attitudes and behaviour will help in forming better organisational culture. Apart
from transformational leadership, transactional approach can also be implemented by these two
companies for achieving excellence (Clegg, Kornberger and Pitsis, 2015).
2.2 Influence of organisational theories on management practise
Organisational theories are general approaches that are used for managing business
processes. Capco is a finance sector company and requires continuous innovation in its
approaches. The company is operating with a functioning structure that is based on a blend of
scientific management theory and human relations management theory. The influence of these
two organisational theories has been described below:
Scientific management theory: This theory is based on managing time and actions that
employees have to take for performing business operations. The authorities of Capco are able to
assign specific tasks to individuals based on their capabilities and skills. It helps in managing
client deadlines and generating better quality work within stipulated time. The influence of this
theory is positive and more productive for the company. On the other hand, scientific
management theory has helped Capco to inculcate innovation with efficiency and quality control.
Human relations management theory: The human relations management theory is based
on development and growth of human resource which is aligned with company's progress. This
theory has helped Capco to utilise scientific management approach in a way that no stress or
work pressure is being experienced by individuals. Moreover, the company has developed
strategies that care more for employees.
The management practise of Capco is efficient because it consists of adaption of two
management theories that is scientific and human relations all together.
2.3 Approaches to management
Following are the basic approaches to management that is being used by Capco to
manage its business activities :

Bureaucratic Approach: The management style or approach which involves a dominant
reflection of autocratic leadership is bureaucratic. Managers that adapt this approach for their
governance in Capco, emphasise on instructing their subordinates. They tend to give orders and
commands which must be followed without any delay and negligence. Educational trainings are
organised by the company in this approach for betterment of management skills of the leaders
and practitioners (Functional Versus Divisional Organisational Structure, 2017). Bureaucratic
approach as a specific advantage that staff members are clear about the tasks they have to
complete. It doesn't involve overlapping of other functions.
Administrative Approach: This management approach was proposed by Henry Fayol.
The administrative approach is based on five principles that is planning, organising,
commanding, coordinating and controlling. The company can gain huge profits though this
technique but less attention is given to employee benefits because complete system is centralised
(5 Different Types of Leadership Styles, 2017). A disciplined structure is maintained which
prohibits development of negative politics or culture in the working environment. The
administrative approach for management practise helps in smooth functioning of business
processes which leads to increase in productivity levels. The disadvantage of this approach is
development of stress and immense competition. Internal environment is also disturbed.
Scientific Approach: Aforementioned scientific management theory is the basis of this approach.
When jobs and responsibilities are distributed amongst employees with this approach, then
customer expectations are easily met. Since, Capco is a finance sector company; people invest
their money to get good returns. The application of scientific management approach results in
efficient management of client demands. Despite of a centralised approach, it maintains better
management of resources (Five Approaches to Organisational Design, 2016). Not only human
competencies but financial capabilities of the company are improved when scientific
management approach is applied effectively. The disadvantage that is often faced when scientific
approach is applied is rigidity towards workforce. The workforce experiences a excessive
oppression and work load which limits productivity and efficiency.

TASK 3
3.1 Impact of leadership on motivation
HSBC is a multinational bank based in UK. This company has been known for its
qualitative and quantitative decisions in both financial and business sectors. Mainly, business
decisions are made by leaders and managers. The working staffs of HSBC experience varying
motivation levels because of different leadership styles managers and leaders adopts. The
following points describe impact of variable leadership styles on motivational levels.
1. Autocratic leadership is not open to ideas and opinions of other employees. It is
completely based on commands and instructions that manager give to their subordinates.
When effective communication is not maintained, motivation gets deteriorated and
efficiency of company is decreased (Wood and et. al., 2016). On the contrary, the
ability and knowledge levels of leaders become a motivational factor for their followers.
Negative impact on motivation levels is more due to autocratic leadership.
2. Democratic leadership is a form where active participation is entertained by leaders and
managers. Capco can experience a cheerful working atmosphere when democratic
leadership is predominant in functioning structure. Decision making process engages all
employees and welcomes their opinions and ideas. Moreover, the increased involvement
motivates individuals to actively participate in future discussions. According to Maslow's
motivational theory, it is the duty of leaders to identify needs and requirements of
individuals which are classified in the hierarchy. Democratic leaders use this approach so
employee motivation level is maintained. This leadership has a positive effect on
motivation of individuals.
3. Transformational leadership is attributed by charismatic leaders and managers. They
develop a strong coordinated bond with their subordinates. During conflicting situations
or crisis and emergencies, employees find it easy to convey their ideas and problems.
This dimension of transformational leadership, develops motivation amongst staff
members. Hence, transformational leadership has a positive impact over motivation
levels of staff because chances of oppression and exploitation is minimum.

3.2 Comparison of motivational theories
Maslow’s Theory of motivation Herzberg’s Theory of motivation
• The Maslow’s theory of motivation is
based on a hierarchical identification of
needs of individuals that are
functioning in a company and their
satisfaction levels. Five levels are
proposed in this theory which
determines various needs of employees
at these different levels. Simple yet
descriptive this makes it easy for
application (Fitzgerald, 2014).
• When applied in HSBC’s internal
environment, employee needs and
motivation levels can be judged easily.
Any of the various levels that are
defined in this motivational theory can
turn into motivator for individuals.
• HSBC's working staff will experience
will experience certain importance
when their needs are focused. Be it
safety or stability trust towards
company shall increase when Maslow's
theory is applied.
• Herzberg’s theory on the other hand is
completely based on motivator’s
achievement, recognitions and
opportunities for development and
growth (Harper, 2015).
• There are no levels or parameters
defined in this theory. Hence, managers
or leaders gauge hygiene and
motivating factors as the basis of
decision making.
• Instead of evaluating results, the
application of this theory brings in
suggestions and recommendations. This
makes use of Herzberg’s motivational
theory quite complex and prescriptive.
• HSBC can experience little bit difficulty
when applying dual factor model of
Herzberg.
• Another drawback that occurs with this
theory of motivation is that only higher
order factors are eligible for motivating
employees (Rosemann and vom Brocke,
2015).
The selection of motivational theory can be made with reference to above made
comparison. HSBC Holdings plc has to maintain the brand reputation it has acquired in these
many years of operation.

3.3 Managers requirements
As discussed earlier, motivation is a key factor in driving performance of employees. It is
important for managers of HSBC to recognise factors that are demotivating or breaking morale
and support of employees. The reason behind this need of understanding the importance of
motivation by managers is the responsibility and duty towards employees and company.
Corporate businesses function to maximise their profits (Rothaermel, 2015). This is only possible
when workforce is efficient enough to perform assigned tasks and projects. Motivation theories
are a source of informative frameworks which when applied to organisational dynamics yield
high labour turnover and reduce working costs of the company. Managers have the responsibility
to execute strategies that will meet business objectives. If they do not apply motivational
theories, then it would become difficult to identify barriers that are deteriorating productivity
levels.
It is important for manager of HSBC to understand motivational theories. For instance,
if employees are not feeling safe and secure while working in the company then a need is arise.
When managers are aware about this need, quick actions can be taken and a solution can be
provided for making the working atmosphere more secure.
There are various factorial elements which can decrease motivational spirits of people in
a workplace. These can be no appreciation or rewards for great quality work, cultural
differences, non-transparent governance, unhygienic working conditions, imbalance in work and
personal life, etc. When managers make efforts to detect and understand the source of these
factors, then a need is felt for applying motivational theories (Mihalache and et. al., 2014). Well
defined frameworks help in effective application and better outcomes. Hence, HSBC must
inculcate a strategy that will help managers and leaders to develop better organisational
behaviours inside the structure of its company.
TASK 4
4.1 Nature of groups and their behaviour
Teams are formed inside the organisational structure of a company so that operations can
be easily executed. It provides a clear management at each level. Leaders and managers perform
this task of dividing employees into groups because it simplifies complex processes into small
units (Miner, 2015). These units when perform their respective functions helps companies in

achieving business objectives with more efficacy. There are two types of groups which are
explained below:
1. Formal groups: These types of groups or teams are the ones which function
systematically and professionally inside the workspace. Capco’s corporate structure
concentrates on formation of these groups because their purpose of functioning is for the
benefit of the organisation. Since, formal behaviour is attributed; every member that
functions in it has to fulfil their own set of duties and responsibilities (Naylor, Pritchard
and Ilgen, 2013). These groups do not indulge in unfair practises or activities which are
not beneficial for firm only when ethical practises are encouraged. Company and its
employees share a corporate social responsibility which assures that formal groups do not
involve in activities that are unfair and illegal.
2. Informal groups: When employees build a bond of friendship or rivalry or mutual
understanding then a natural group formation takes place. Such groups are called
informal groups. People identify their needs and requirements but do not function
together to achieve company’s goals and objectives (Shafritz, Ott and Jang, 2015).
Informal groups can portray positive and negative behaviour in Capco’s culture. Their
orientation is unprofessional and not relevant to corporate principles. No person
belonging to organisation can intervene in activities of informal groups unless there is a
threat to corporate culture and internal functioning of the company.
4.2 Factors affecting team development
The formation of teams and groups inside business organisations is just not the only task
of leaders. Teamwork principles must be instigated amongst employees so that purpose of this
team is served. Following factors are responsible for supporting or hindering teamwork.
1. Diversity: This factor can several times lead to development or deterioration of the team.
Diversity can bring in innovation and creativity amongst members. Groups with members
that have diverse variety of skills are more successful in designing innovative strategies
(Five Approaches to Organisational Design, 2016). However, conflicts and clashes can
arise due to different working style and cultural beliefs of people. Capco’s working
structure has teams that are working efficiently with diverse skills and talents.

2. Communication: it is significant to develop effective communication channels amongst
team members. When people are unable to exchange their views and opinions then
essence of team is lost. Consequences of ineffective communication results in breaking of
groups and development of rivalry. This implies that communication can inhibit or
restrict effectiveness of teamwork.
3. Leadership: Entire management is handled by leaders in a team. Their decisions and
actions are responsible for every outcome a team faces. Leaders can turn out to be
inspirers and directors for strategies. Therefore, team leader should adopt effective
leadership so that positive contribution is given to teamwork. Capco has a separate
division that allows team leaders and members to bond and explore all positive
possibilities. RefereNCES
4.3 Impact of technology
Technological developments have resulted in automation of various business industries.
From manufacturing to service industry, companies have evolved and developed with help of
technology. Capco being a finance sector company functions with aids from information
technology. It has software that helps in managing customer requirements with at most accuracy
and precision. The probability of committing mistakes is decreased when technological
intervention is experienced (Proehl,s 2013). Considering the case of team functioning there are
two types of impacts felt. These are positive and negative. Capco’s different functioning teams
can use technical advancements in enhancing their researches, marketing techniques, customer
support, etc. The efforts and resources which are required for performing such team functions is
reduced when technologically advanced instruments and devices are used by team members.
The greatest impact of technology which is felt in team dynamics is augmented reality.
People may not be physically present at a place but they can still interact and perform business
operations without actually meeting. This technology is artificial intelligence and virtual
presence. Video conferencing and calling enables team members to stay connected and
implement their strategies efficiently.
Team functioning can turn out to be fatal on the contrary. In cases where people misuse
emails and mobile phones for their own benefits and to fulfil unfair intentions, technology can be
detrimental (Bartsch, Ebers and Maurer, 2013). The essence of collective working is lost and

people start fighting over pity issues. Several instances of damage to property and ineffective
management have been experienced by team members because of technology. Capco’s overall
functioning is disrupted if teamwork is not adaptive to technology. Hence, there are certain
complications in using technologically advanced equipment but if handled properly and
efficiently by leaders and managers of these teams.
CONCLUSION
This report contains several findings that relate to behaviours of individuals in an
organisation. The impact of leadership and management on the culture and functioning dynamics
is bit deep. In addition to this fact, culture and structure of Capco and HSBC are also compared
and elaborated in this assessment. On can easily understand the effect some factors can have on a
person’s behaviour in a business enterprise through the facts that have been described above. It is
important for the managers or leaders to adopt a motivational theory which can help in assessing
internal needs and requirements of employees. This will not only increase efficiency but also
help in meeting business objectives effectively.

REFERENCES
Books and Journals
Bartsch, V., Ebers, M. and Maurer, I., 2013. Learning in project-based organizations: The role of
project teams' social capital for overcoming barriers to learning. International Journal of
Project Management. 31(2). pp.239-251.
Clegg, S. R., Kornberger, M. and Pitsis, T., 2015. Managing and organizations: An introduction
to theory and practice. Sage.
Cummings, T. G. and Worley, C. G., 2014. Organization development and change. Cengage
learning.
Dooley, K., 2014. Organisational Behaviour: Business Models for a Profitable and Sustainable
Future. Browser Download This Paper.
Fitzgerald, A., 2014. Organisational Behaviour: Core concepts and applications.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Harper, C., 2015. Organizations: Structures, processes and outcomes. Routledge.
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