Introduction to Organizational behavior
Organizational behavior is the study of the performances and the activities of the employees and various attributes such as the structure of the organization and the culture in which the organization is operating. It includes how these factors affect the working of the organization (Palmer and Hartley, 2008). Organizational structure refers to the hierarchy of the employees and the functions and tasks they are assigned for. The nature of organization structure influences the working nature. Every organization works on different principles and values. The organizational culture refers to the sum total of the beliefs and foundation values based on which the organization operates. It is the way in which the employees relate with each and behave. This has the strong influence on the efficiency and profitability of the organization. The report focus on the three different scenarios with respect to the organizational structure and the culture.
1.1 Comparing different types of organizational structure and culture with examples.
Organization is the formal body in which the employees work together to achieve certain goals and targets. For that purpose there is the division of work based on the hierarchy of the designations and posts. This formal structure is known as the organizational structure. To match the firms need to fulfill their strategies the organization adapt different organizational structure such as Functional, divisional and Matrix structure.
Functional: In the functional structure of the organization the employees are divided in the wings which are related to the functional areas of the organization such as the HR, marketing, Finance, production etc.
Multidimensional: In this type of organizational structure, the employees are divided in to the departments which are classified on the basis of product or geographical divisions (Welford, 2013).
Matrix: There are organizations which work on projects of limited duration with specified targets. The groups and teams are created to maximize the intellectual and creativity to achieve the target.
British Airways possess the functional structure. The organizations use this type of structure due to the limited product line and the employees are supposed to handle the activities related to their respective departments headed by single manager whereas the organization which offer variety of products and services adopt multidimensional structure. General electrics is an example of this type of organizational structure. In this firm, the employees belongs to different product divisions such as Capital, Business solutions, Heath care and energy or on the geographical basis a group within the country and the outside that is Global growth and operations (Craig and Campbell, 2012). The organizational structure is the Matrix structure. Matrix structure focus on the horizontal linkages in contrast to functional and divisional structure which rely on vertical linkages. Boeing is an example of the Matrix structures. Efficient communication is the key of matrix structure. Boeing utilizes this structure and with the free flow of communication it increases the organization's flexibility and team collaboration.
The three different types of culture are:
Power culture: The culture heavily dependent on the success of the organization and the abilities of employees is power culture. The example of such culture is APPLE. It has the intense commitment to corporate goals.
Role culture: In contrast with the power culture, Role culture has the narrow band of senior management. It focuses on the functional areas with high degree of standardization for example in UK public sector bodies (Aldrich, 2008).
Task Culture: This is project oriented and best suited for matrix structure organization. In order to accomplish the specific tasks with easy working relationships and mutual respect. One such example is NASA.
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1.2 Impact of relationship between organizational structure and culture on the performance of organization
The relationship between organizational structure and culture is beneficial for both, organization and its employees. The organizational culture and structure may affect a employee in two way positive and negative. British airways managing good culture and environment for its employees and the company is working with hierarchical structure. The organization promotes positive attitude by increasing employee's responsibility. The duties and responsibility are allocated in appropriate manner among employees, it shows that organization believe in development of individual (Nickels, McHugh and McHugh, 2011). The company investing in its Human assets by provide training to them and improvement in organization's outcome is taken as return on investment.
For example The company introduced training program named 'putting people first'. This shows that company is maintaining an environment where employees are groomed and efforts are made to enhance their performance. BA give training to employees for working with professionalism, it helps in better handling of customers by providing them best services. Culture of an organization directly impact on performance of the employee. Company's top management taking feedback on timely basis so that problems could be identify and fixed them as soon as possible. These structure helps in communicating in both ways such as upward and downward so the lower level employees can also report any problems directly to top level management (Chen and Rosenthal, 2008).
1.3 Factors affecting the individual behavior and the need to understand the individual behavior.
Along with the degree of efficiency and abilities, the performance and the behavior of an individual depends on various factors such as the Leadership, work culture, job responsibilities and communication level.
Leadership: The influence leader with the clearly stated goal encourages the employees to work with full dedication and enthusiasm.
Work Culture: Fundamental factor that affects the individual behavior is the work culture. Favorable work culture with certain cord of ethics makes the employees more comfortable and increases his willingness to work (Cantwell, Dunning and Lundan, 2010).
Job responsibilities.: When the employees are felt valued his willingness to upgrade the skills increases. Assigning the task as per his abilities brings positivity in the employer's behavior.
Effective communication: The effective vertical and horizontal conversation in the organization enables the employees to work with greater interest and efficiency. The components such as seeking opinions from the employees in decision making process, their involvement in projects, grievances redress plays the crucial role in increasing the job satisfaction of employees and the profitability of the organization.
Understanding the individual's behavior helps the senior management to apply certain strategies for the improvement. By considering the three components task performance, loyalty and the punctuality individual's behavior can be assessed. By evaluating these attributes the job satisfaction and dedication towards the organization can be judged and accordingly remedial measures can be adopted (Johnson, Lenartowic and Apud, 2006). This helps in understanding the need of more interaction and involvement, training programs, development sessions, counseling, mentoring and further in realizing the need of improvement in operational management.
2.1 Comparing different styles of leadership in different organizations.
The mangers of different organization chooses different leadership styles to manage the working of the employees and make them perform the tasks. The chosen organization British Airways uses the transactional leadership style in comparison to the competitor Airlines Easy Jet Airlines operating in Europe whose manager user the participative leadership style.
Transactional leadership styles refers to the process in which the leader focus on the supervision, organization and group performance. The prime focus of the leader is to enhance the efficiency and the profitability of the organization (Carroll and Shabana, 2010). The manager at British Airways set the predetermined goals together with the employees and supervise them to lead the work efficiently. The manager motivates the team by frequent performance appraisals and providing them rewards and bonuses on their accomplishments. This increases the employee's spirit to give better performance and contribute the organization significantly by maintaining the consistency. On the other hand, the manager of Easy Jet Airlines uses the participative or democratic style of leadership. In this type of leadership there is the full involvement of the team members in the decision making process. Easy jet Airlines using participative leadership style seeks the opinions and views of employees in their respective areas to increase the customer service standards and provide the experience of comfortable flight at affordable prices (Zott, Amit and Massa, 2011).
2.2 Organizational theories and their impact on practice of management
Organizational theory can influence the over all performance of organization when it applied in practices. Different theories relating to study of organizational culture and structure, approaches to management, leadership style and motivational theories; help managers to understand their role in organization and to take decisions which can help in business growth or success. These theories are set of ideas and outlines which help manager to understand actual need of business so that they can plan work accordingly (Robbins, 2009). These theories help the representative in finding out the way by which employees get motivation and show them how to do it.
Scientific management theory dealing with improvement in organization efficiency by utilizing scientific, engineering, and mathematical analysis. This theory helps management in reduction of wastage, increase in productivity with maximum utilization of resources.
Henry Fayol give 14 management principle division of work, authority, discipline, unity of command, unity of direction, subordination of individual interest to the general interest, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative and esprit de corps which help management in planning, organizing, controlling, commanding, and coordinating (Waltz, 2009).
Bureaucracy theories say that every organization has a well defined line of authority or hierarchy so that the order can be regulated by higher level of management to the lower one and the communication can also be done that manner.
2.3 Evaluating different approaches to management in different organization
The organizations use different approaches to the management to respond top the emerging issues and the undergoing functioning. The approaches to the management is subjective for every organization depending upon the functionality and objectives.
The chosen organization adopts the decision theory approach. The core functionality of the senior management is the decision making the problem solving. The management of the British Airways are endowed with the responsibilities related to the different aspects in all the departments such as Airport services, in-flight services, financial services, environmental issues, employees related matters and other related. In this are supposed to take the optimum decision for smooth and efficient functioning. The management takes decision considering different aspects of the operation through market research, customer survey and with the help of expertise and specialists (Randeree and Chaudhry, 2012). Then they perform the task of supervision and the part of execution and implementation is done by the operational management team.
On the contrary, management approach of the Easy Jet Airlines has the focus on the working of the sub-parts and subdivisions of the departments. This is known as the system approach. The management considers the organization as the combination of different departments in contrast to the fragmentation approach. Easy Jet Airlines considers organization as whole and provides the thoughtful and personalized services to the patrons. With the more vertical and horizontal integration, the different sections such as the HR, marketing, aircraft, airport terminal team work as a unit and achieve the sales target and provide high skilled services (Haller, Fisher and Gapp, 2007).
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3.1 The impact of different leadership styles on the motivation of staff.
To optimize the performances of the employees the manager at the British Airways adopts the pragmatic approach for the leadership. This means that adopts different leadership styles at different situation. The circumstances demand different methods to keep the employees motivated and dedicated towards the work (Guzman, 2013).
Normally, in the regular time periods the organization uses the transactional leadership style. That means to keep the employee's morale high, the manager made frequent performance appraisals and also rewards them on their achievements (Alles and Cabrera, 2006).
The time when the sales are low, the manger uses transformational leadership in which the manager motivates the employees through high level of communication and visibility. The management seeks their involvement in decision making to improve operational management to attract more travelers and bring increment in sales and profit.
Further, the organization encourages the participative leadership at the time of transition in the organizations offerings. The senior management of British Airways boosts the morale of employees by seeking their opinions and views to make changes in their services for the betterment. Due to the intimate involvement in the working the better understands the customers needs and their perception. Participative leadership makes the employees feel valued and realizes that their opinion matters.
At the crucial times of inflation, recession or the duration when company is under deep trouble and crises, the management of British Airways adopts the Autocratic leadership model. In this style of leadership the management possess total authority and impose their will on the employees. Due to the difficult challenges faced by the organization, the management rely on the specialists and expertise and take all the decision on own without anybody's involvement. This does not last longer, hence not affects the employee's morale to great extent.
3.2 Comparing the application of different motivation theories in an organization
The organization realizes the importance to keep the employees motivated. Their efficiency and productivity has the considerable impact on the profitability of the organization. For that purpose, the chosen organization British Airways adopts the scientific method and uses two very effectual theories of motivation. Using both the theories has the different impacts on the working of employees.
1.Herzbergs two factor motivation Theory: The theory states that motivation of the employees is influenced by two types of factors, Motivators and Hygiene factors. Motivators refers to the work challenges, responsibilities, opportunities to show abilities and other related and hygiene factors are the maintenance factors that keep the consistency of the motivation. They are job security, salary, work culture, paid insurance and other benefits (Riley, 2012).
2.Alderfer's ERG motivation theory: The acronym ERG stands for existence, relatedness and growth. It states that if an individual is given the opportunities to fulfill the needs on the grounds of these three levels, he stays motivated towards the work. Existence includes the basic requirements fool, cloth and shelter. Relatedness is for maintaining interpersonal relationships (Analoui, Doloriert and Sambrook, 2013). In the growth perspective Aldefer has isolated the needs related to the personal development such as the self esteem and self actualization.
The organization uses these theories to keep the employees motivated and dedicated towards work. The theories have similar content that is to provide the employees the reason to work in the organization with optimum pay scale, work culture, organizational environment but with different process and goal setting.
3.3 The usefulness of the theories for managers in the chosen organization.
Using these scientific approaches to keep the employees motivated and helped the organization in the very considerable way. By adopting the theories with different process and similar goals and content relevancy, the management keeps their employees dedicated towards the work.
The use of the Herzberg's two factor theory enabled the management to identify requirements of employees in different aspects by bifurcating into parts the motivators and Hygiene factors. The management of British Airways realized the importance of stimulating the motivators such as opportunities given to show and enhance the abilities, involvement in decision making, sense of importance to organization increases the job satisfaction level of employees (Carroll and Shabana, 2010). And by optimizing the hygiene factors such as the salaries, privileges and incentive to them increases their willingness to work with the organization for longer duration of time.
With the similar goal but with different approach the Alderfer's ERG theory enabled the British Airways to understand the need of the employees in better way by identifying the needs at different level.
Organizational Behavior is the study of group and individual performance. There are many factors that affect the functioning such as job performance, employee interaction, leadership style and the motivation techniques adopted by managers. British Airways adopts different leadership styles and motivation techniques at different situation to keep the functioning at optimum level.
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