2. 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.
3. 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.7
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
4. 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:
5. 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.
6. 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.
7. 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.
8. 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
Authoritarianstyle.
Democratic style.
Transformational
leadership.
Transactional
leadership.
9. 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
10. 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.
11. 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:Discussionof 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:
12. Autocratic leadership
Autocratic 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 leadership
Leaders 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
13. 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).
14. 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
15. 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
16. 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.
17. 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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