Danyal and Farids OB

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CON FED

HND Business

Course Title:HND Business

Unit Name:

Organization and Behavior Assessor :

Ms. Neelam MarwatInternal Verifier :

Mr. Sajid Fahim

Assessment Title:Analysis of motivational theories, leadership and behavior at a given

organisationAssessment Method:

ReportAssessing in:

Danyal Ahmed and Farid Aslam

Number of Pages:(Total 12 Pages Maximum)

Outcomes Covered: 1 and 2

Organization BEhaviour Outcome 1 and 2



Introduction:

“An organizational structure consists of activities such astask allocation, coordination and supervision, which aredirected towards the achievement of organizational aims. Itcan also be considered as the viewing glass or perspectivethrough which individuals see their organization and itsenvironment.”

Organization structure:

In an organization there are two types of structures on which the business operate formal and

informal but right now I am emphasizing on the formal structure of a business such structuresare used in businesses where individuals are established in a network of relationships

because the authority and responsibility and

communication can be controlled such organizations are more centralized such functions are

assigned to individuals or to particular departments in which they are answerable for

completing the task one can see such tasks in many organization small business or new

entrepreneurs are more inclined towards centralized kind of structure e.g. like large stores

they have one department for buying goods and dealing with prices and one department

which would do marketing here I am referring to just advertisement as marketing for a small

business like make broachers and throwing flyers giving promotion on sales for customers to

buy a particular product for a certain time period these all decisions are made by the owner or

the ceo a more task oriented organization most of the very large firms also apply such

structure in there businesses like tesco wall mart .



Organization structure consists of different things which are as follows

1. Work specialization

2. Departmentalization

3. Tall and Narrow structure

4. Flat and Wide structure.

5. Matrix structure.

6. We are going to discuss each characteristic below step by step

Work specialization:

Any one having work experience according to the requirements of the organization can be

taken in an organization according to their rule .they should be having a work experience to

work in an organization.

Departmentalization:

When a person is selected in an organization he will be put in such a department in which he

is specialized to do work for the organization for example: a man knowing to make accounts

can be sent to finance department .there are different type of departmentalization’s



1. Functional departmentalization

This deals with the group activities performed according to the function.

2. Product departmentalization

This deals with products introduced in the organization

3. Process departmentalization

Is that which deals with a task given to an organization and they have to perform on it .

4. Geographical Departmentalization

Is that in which standards would wary from one area to another. In this there can be a strong

relationship between a customer and an organization. But there is a disadvantage of it also

and that is too much cost will come on traveling, collecting information etc.

5. Customer departmentalization:

Customer departmentalization is totally linked with the customers .to collect customers

informationManufacturer can handle different types of customers i.e. Industrial buyers and

consumers. For example Manufacture can handle different types of customers i.e. buyers,

consumers etc.

Elem ents of Organizational Structure:

Span of control

Chain of command

Formal or informal

Centralized or decentralized

Departmental

Specialization

Types of organizational structure:

Flat Structure:

A flat organization is one which, in relation to its size has a small number of hierarchical levels. The structure is simple with a fast access of communication.



Decision making is quick. The structure is in expensive to maintain and the chainof command is easily identifiable. While on the other hand it is risky in a way thatit’s too hard for one person to handle many responsibilities.

Figure 1

Tall Structure:

A tall organization is one which, in relation to its size has a large number of levels of management hierarchy. There is close supervision among the

employees and this keeps them motivated. The role of individuals is clear andwell defined, activities are standardized and they take place in an efficientmanner. Tall structure is criticized to be expensive with slow decision making andslow communications. Often there is a conflict between sub units.

Advantages

• The operation manager has a close eye on every employee and tasks thatare assigned can be fulfilled completely

• Interaction between the employees they can help out each other in their work.

• There are no conflicts between the employees if there is it can be resolvedeasily.

• The policies are easier and quicker to implement



Disadvantages

• The disadvantage is that organizations have to cope up with thechallenges of greater flexibility in the form of opposing views of teammembers.

• The group and team conflicts need to be handled efficiently.

• Work load on the on the individual employee.

Matrix structure:

Matrix structure is the combination of Product, customer and functionaldepartmentalization. This means that every department working in anorganization is responsible for his work .All of the departments work on aproject and when it finishes they go on the next project.

Advantages:

The advantages for matrix structure are as follows:

1. All of the department work together

2. All specialized people work on a single project

3. There is flexibility in the work

Disadvantages:

The disadvantages are as follows:

1. When too many people are working then there is slow decision makingfor the project.

2. There is no loyalty between the managers

3. When too many people are working on a single project many

managers are required in which cost for those managers go high.

Culture:

Culture is a collective self image and style. Policies and practices style of the organization. it is shared value and beliefs norms and symbols likearmy in Pakistan the system is very centralized .there are many factorsgoing in organization culture as follows:



1. Economic conditions2. The nature of business and its tasks3. Leadership styles4. Policies and practices

5. Structure6. Characteristics of the work force

Economic conditionsThey are very important in culture in a stage of recession too much moneychasing to goods or as depressed or challenged situation. very strongdecisions are taken to deal with the competitors .

The nature of business and its tasks:

Type of technology used in a business to complete its tasks and be coefficient is different from business to business as a business has to create

pace and priorities associated with different forms of work e.g. nasdak isvery different genre than a person who researches in Africa or in anadvanced lab.

Leadership styles:

The approach used in exercising authority will determine the extent towhich sub ordinate feel alienated and uninterested. Leaders are known asthe entrepreneurs they play a very vital role in the organisation culture allthe descion making is under the leadership. This is an important factor

because issues like who will do the job, how to do the job and when to dothe job is be resolved for this a team need a formal structure and a leader.Furthermore leadership is also important because leader motivate theemployees. If the employees are motivated then the output is more thenthe input.

Policies and practices:

Level of trust and understanding that exists between all the members of an organisation e.g. employees and managers can often be seen inpolicies, these are the major factor of an organisation culture, relationship

between the members of an organisation is known as policies and in suchrelationship brings different tasks which have to be achieved and that areknown as practises. In such practices have to be achieved.

Structure:

They way in which work is organised authority exercised and peoplerewarded will reflect and emphasises or control flexibility or rigidity



Characteristics of work force:

Organisational culture will be effected by the demographic nature of thework force e.g. age sex and personality.

P2:-

Analyze the relationship between an organization’s structure and

culture and the effects on business performance.

An organization cannot work without both the factors that areculture and structure. Its like they are linked with each other if there is

structure in the organization and there is no culture so there will be a verybig mishap in the organization .The organization will down as quick as itcan because there is a big need for having culture in the organization.There should be respect for every one, there should be someone whocould lead an organization, there should be a leader who could makedecisions.

There are many factors and advantages of culture relating withstructure .If there is a structure and people working in that organizationdon’t know how to talk to the managers even though they are givendepartments in which they are specialized to work for they can never succeed in that project assigned to them .Many other factors like

leadership which is a must ,if its not there will be no one making decisionsin the organization every one will become a leader himself so at the endthere will be big setback for the organization. There are policies whichhave to be followed which give a boost to the organization because itshows the way to the workers how the work is done

Same goes with structure if suppose there are is culture in anorganization, every one is giving respect to every one plus there areleaders, polices every thing that comes in culture but there is no structureinvolved like departments , different types of structures for different typesof tasks the project if assigned to them will go down the drain because noone will know where to work and whom to work for .specialized people aremeant to be set there in which they are specialized e.g. a personspecialized in doing a work for finance if he is sent to do marketing he willfail simply because he is not specialized to do that work, if there was astructure he would have been sent into the finance department .

Even though in different types of businesses there is cultureand structure involved because without it a business cannot run .Anybusiness running with culture and structure will be the best business in themarket because they will be following different rules and regulations, they



will be set in that place in which they are specialized to do work for .e.g. if a company wants to make a product then it will go through differentdepartments there will be decisions taken and hence it will be brought inthe market step by step .So structure and culture is really a must in anytype of organization , business etc.

P3:-

A nalyze the factors which influence individual behavior at work.

There are many factors that influence individual behavior at work but onethe of the most important are as follows1. Personality.2. Perception .

1. Personality:Personality is defined as the distinctive traits and the characteristic of aperson and the relation to others. Personality plays a very important rolein individual behavior of work in an organization. It shows the character of a person in the organization. Personality is jugged by other people in twoways mentally and physically. Personality in an organization makes tellsthe person who he is .Personality can be in a good way as well in a badway. Its not necessary that personality of a person in an organization whiledoing work is in the positive way it can be in a negative way also e.g. If aleader has lead the organization in a good way that shows his personalityin a positive way but if a leader could not lead the organization in a good

way so that shows his bad personality .Personality in an organization hassome following factors:

1. Neuroticism.It plays an important role of showing emotions in a body .If it is high in a

body then it shows tension on a persons face .It makes a person getnervous and he becomes sensitive and on the other hand if it is low itshow activeness in a person and gives a fresh look on a persons face.

2. Extraversion:It deals with the energetic levels of the body. If it is high it shows a personto be fully energetic but if it is low it shows that the person is not energeticplus he is a bit shy and quite.

3. Openness to experience:Openness is about the imagination. High openness has wide range of imagination and low openness has low range of imagination.



4. Agreeableness:Agreeableness derived from the word “agree”. It is necessary to have

high level of agreeableness which can boost up ones personality .e.g.To agree on different ideas etc

5. Conscientiousness:It deals with the attention of which a person is working if conscientiousness is high the person is always going to focus on the

job assigned to him he will try his level best to fulfill that job but if it islow then he will show signs of carelessness and will not be willing to dothe job so its better that one should have high level of it.

Perception:

Perception plays a very vital role like personality does in the

organization Perception the word means to perceive .Managers makedecisions on how they perceive which means that they can feel thesurroundings near them that includes

PeopleEvents.Activities etc

Like in manufacturing perception involves a process leading to aproduct output. The human brain is having massive amounts of information’s which is gathered by their senses which can be

processed usually spontaneously without a reflective thought .So in anorganization it is very necessary to feel your surroundings and knowwhat they are thinking. As discussed that managers are the one whoperceive so it is a hard work for the managers in the organization to befully up to the requirements of every one . he should have an idea whatthe customers his employees are thinking and should shareinformation’s with them.

P4:-A nalyze how organizational theory underpins principles

and practices of organizing and of management. The organizational theory underpins the principles and practices of organizing the management so first we will discuss what management is

Management:



“Management is the strategy of getting peopletogether to work on a task given to achieve a certain goal in thelimited resources.”

If we divide management:

Man:{which gives the image of human resources }Age:{which tells us about the time }M:{M stands for money}Ent:{ Ent stands for enterprise }

So combining them we can see that to earn money at a given time

in the human resources. Management is the key to leading anorganization .Culture and structure are linked with management.Management shows the art of working in an organization.Management is necessary because it guides the person for achieving the goal.Different theories are given which are further discussed below :

1.Fayal’s theory about management :

Fayal gave a theory about management and it has five steps as

follows:

1. Planning:

Planning is the first and the major part of management in an

organization .Planning has to be done because no goal can be

achieved without a plan. Plan is a short tem thinking when the plan

has been accompolished then strategy takes place.Whenevr some

new work comes into an organization first it has to go through a

plan of how to achieve that goal

2. Organizing

Organizing deals with establishing the internal structure of an

organization. Even though a plan has been made but it cannot be

accomplished so easy, there are teams made to achieve that goal



according to the plan so these all aspects have to be organized in

a way so that the goal is easily achievable. Different managers are

made they futher bring more employees for the work they organize

each and every thing.

3. Commanding

Commanding is derived from the word command which means to

motivate. Fayal has given a light on commanding in management

because there is need of motivation when there is a task given to

the people in an organization. Without motivation every thing is

going to be dull and no one will be willing to do any type of work.

4. Coordinating

Coordinating deals with monitoring the activities done by people,

employees working in the organization for a given task. Each

individual work is brought together coordination takes place by

checking the time , given resources etc.

5. Controlling

Controlling the last step of fayal’s theory discusses about

performance of an organization and establishing it according to the

standard of the firm .This is the last step and in this step what ever

the work has been done in the organization and whatever the goal

has been achieved it is then controlled in to get the best outcome

result.

The manager’s role theory by Henry

mintz berg:Henry Mintz Berg discusses three main points in his theory aboutmanagement and they are given as follows:

1. Interpersonal2. Informational roles3. Decisional roles



Interpersonal roles:1. Figurehead2. Leader 3. Liaison

1. Figure Head:The first point is figure head .Figure head gives a light on themanager which means that a manager is the one who representsthe organization. Manager is a character in an organization thatevery one follows. And he is the one who leads from the front.2. Leader:Manger then leads an organization .He works as a leader .He thenappoints different employees working for him.3. Liaison:It deals with communicating and building a relationship. Manager’s

duty is communicate with outside the organization and motivatingthem to work.

Information roles:Monitor Disseminator Spokesman

1. Monitor:Monitor means to observe .Manager plays an important role inmonitoring an organization where he keeps an eye on the whole

organization and keeps his employees updated and shareinformation’s with every one.

2. Disseminator:

Manager shares information from outside the organization and fromother employees working outside the organization.

2. Spokesman :

As manager shares information inside the organization he also

shares his information outside the organization .His plans ,ideas ,policies etc .

Decisional Roles

Entrepreneurs:



Enterpenurers are thought to be leaders they are those peoplewho give ideas and bring co effiency in there staff trough differentways by using different theories e.g theory x and theory y theyutilize the resources and the time given to them to make their teammore efficient an effect which is just like synergy 2+2=5 but in

reality enterpenurers are idea givers or the people who pioneer ideas e.g steve jobs of apple , bill gates are all thought to be greatenterpenurers

Disturbance handler :Manager is the only one who can handle any disturbance created inan organization. He takes necessary steps to resolve any type of problem inside the organization. E.g any unseen problem surgeonetc.

Resource allocate:

Managers are responsible for allocating human, physical or monetary resources etc

Negotiator :Managers have the ability to negotiate. They have an ability todiscuss problems of different departments and then solve thoseproblems by getting different ideas and sharing them with theemployee’s .After the problem has been solved then he gets a profitfrom that unit.

P5Cases:

Case study 1:In the first case study we have seen that the organization wassuffering very badly due to its culture. The organization was goingdown day by day .Their employees were not satisfied from theorganization culture because whatever they used to do theycouldn’t get a feedback .The employees were not given attentionE.g. whatever they uses to do was disliked by the organization they

were not given the proper information they needed to work on .

It was a big setback and had to be solved .it took one year tochange the prevailing culture of the organization by the managersand different consultants working in the organization. They plannedto rebuild the culture of the organization by first giving training tothe employees and letting them know how to build up a team and



work on any project .The training had to be done because theywere totally lacking it .There was another training given to the executives of theorganization because they were the biggest setbacks for theorganization because they didn’t know how to reply to the their

employees so proper training was given to them in which theylearnt how to discuss the major problems occurring to employeesand to solve it in a decent wayThen there was a research done in the organization in which ameeting was held to take interviews from every individual workingin the organization . Every employee , top level managers , lowlevel managers participated in this interview. The interview that wastaken from them was all about the past culture. Every one workingin that organization gave their views on how the culture was andwhat changes should have been made to bring the organizationalculture on the top .This interview gave a very good result to the

researchers.After some time when interviews were taken and trainings weregiven then a positive sign could be seen in the organization .Everyemployee working and managers etc every one was loving andfeeling the new culture of the organization. Employees weresatisfied as communication between them and the mangers wasgood .

Case study 2:

In this case study there is a light given on the structure of an

organization .there are many structures in an organization but over here we are studying about the matrix structure an its conflict.Conflict means a clash and matrix structure is that structure inwhich there are different departments and everyone is allowed towork in his department only this would lead to a conflict because ineach department there are managers and those managers willfocus on their departments only.It was a very big issue so the researchers had to be called up andwhen they started researching they found out that the employeeswere facing problems with the management which was of two typesNo.1 Functional mangers

No.2 Project managersSo the researchers’ started

taking the interviews from 46 people working in the organization.When the interviews were over they got to know that as theauthority was equally divided among the departments so managershad the power of changing the rules and the regulations of thedepartment . What conflict they were facing was that when the ruleswere changed the employees were not properly informed .the rules



and the norms of the organization as the authority was equaldivided among all the departments.So the researchers came up with a very simple plan and that wastactical decisions were made by involving both the departments.The goals were clearly defined to employees from which the

employees became happy because the task that were given beforeto them were not clearly defined to them. Hence after all thisresearch about the matrix structure and defining goals to theemployees with decision taking from both the departments resultedin a positive sign.So it is clear that command and authority should be taken properlyin the organization and letting the employees know about thedecision taken by the managers and inform them clearly.

M1

• Task for M1:

• This task should be taken as continuation of your answers to

P1 and P2, Here you will discuss what is the prevailing

structure and culture in the organization. This will be seen with

the view that you can see the application of the concepts in

real life:

The organization that we have taken is Tesco.

Background of TESCO:

Tesco is a supermarket .it was brought up by Sir Jack. His visionwas to have large number of variety of products in his store and to

sell those products on cheap rates .The first store was opened in

1929 in a place called Burnt Oak Edgware. Tesco is the biggest

supermarket chain in Britain and also have expanded their

businesses in foreign in E.U. They are no trying to cover all the

small shops available in any city just to expand their business.

Organizational structure of Tesco:

There are two types of structures involved in TESCO and they areas follows:

1.The structure of a Tesco store.

2. the structure of a company.



Store structure:

The structure of a store is really easy to understand because the

employees know who their managers are and they get to know who

the charge of each department is and who they are working for.

There is only one head manager and then the employees.

The organizational structure of Tesco Company:

Tesco company has found more efficient ways of handling the

tasks Technology nowadays plays a very important role in the

organization. Tesco has advanced its technology so much that the

problems that were being faced by the employees earlier have

been left back. E.g stock odering etc.

The company is giving a free hand to the general staff and allowing

them to deal with the customers themselves.

Structure that Tesco follows:

Tesco is a big company and runs centrally so it does not have that

type of a structure but mainly according our knowledge about

management Tesco is following matrix structure because mostly

every person working in the company is linked with his own work

and works in his own department..e.g. employees working in the

store have their mission to serve their customer. There are

manages board of directors etc.

Span of control:

The span of control is given to the managers and they are doing

their work with their workforce. This means that each manager will

have more employees to communicate with. There are team

leaders managers night managers are different than day managers

stock taking is done by night managers but the waste is checked by

day managers there is a head manager which is accountable for

the budget working hours and job appointments.

Board of directors:

There are board of directors in Tesco. Board of directors appoint

Tesco’s managers’ which means all the decisions that have to be



taken will be done by the board of directors. Tesco’s board of

directors are in a place called Cheshunt.

Departments

There are different departments in Tesco company .e.g. likefinance, ordering, etc but as the company is running centrally so it

minimizes the cost of having different departments and offices etc.

The finance department deals with the money if it is in Tesco’s

company or in their small stores. Tesco believes in providing

services they have booklets which have items which are customers

see and order from the book from by barcodes and the order is

posted and the good deliver on the other way there objective is to

all the items available for the customers Ordering of the products

for the stores is dealed with the ordering department.

Culture of Tesco:Tesco never takes anyone for granted. Tesco knows that their customers don’t have to shop in Tesco. Tesco has to do everythingthat they can to give an experience to their customers that theyshould come again and become their regular customers. Tescoknows about one thing that if one becomes good with thecustomers and give them a healthy sweet environment of doingshopping they can get the best feedback.That is the biggest reason that it has been like 25 years some of their regular customers come and shop because they know it what

ever they want they can get it from Tesco.When there is Easter or Christmas when there are those busy daystheir staff from the head office also comes to help out so that theycan keep their customers happy and satisfied.Customer satisfaction really brings Tesco on the number one chart.(tesco)

D1Give your recommendations on Tesco structure andculture:

Tesco’s problem in the structure:As we know that Tesco doesn’t have proper departments becauseit is run centrally .There are no proper departments finance andhigh level managers, low level managers etc. The biggest problemin this kind of matrix structure that they can face is it that if oneshop of Tesco fails in any of the most important factors like finance,ordering etc they won’t be having a backup plan for it .As there is a



matrix structure and everyone is willing to do his own job if anyproblem will occur so no will care what will happen and this canmay result in a very big loss.Our recommendation should be that they should open a small officewhich can be given any name but its main purpose should be that

in any type of problem they should be up to it whether it’s a financeissue or supplying, ordering etc.There should be high level managers on top after that then thelower level managers and every one should be in touch with all of the shops and the super market .This not only will lead them intoout of a major problem but also in decision making and stuff willbecome much easier. Wide range of experience will come inbecause they will be in touch with each department and let everydepartment be updated with full information.Tesco has issues regarding the supply chain some times as thepart delays in the supply of items from the ware houses to the

stores most of the items are import e.g they buy nuts from chitral toAfrica latece which comes from Romania , the pit time which is justa window of 5 hours in the morning shift have to comply with thestock as in it uses last in first out the rule of lifo and fifo last in firstout first in first outSupply chain management must address the following problems:

• Distribution Network Configuration: number, location andnetwork missions of suppliers, production facilities, distributioncenters, warehouses, cross-docks and customers.

• Distribution Strategy: Operating control must be centralized or

decentralized according to the situation .There should be directshipment delivery scheme . cross docking which means direct storedelivery should be checked. Mode of transportation should bechecked in which motor carrying is involved including truck loadingetc is also included . and questions of operating control

• Trade-Offs in Logistical Activities: The above activities must bewell coordinated in order to achieve the lowest total logistics cost.

• Information: There should be held different kinds of processesthrough the supply chain to share valuable information,in whichdemand signals can be taken .information about transportation canbe known .There can be a daily forecast report for thetransportation. .

• Inventory Management: Quantity and location of inventory,including raw materials, work-in-progress (WIP) and finished goods.



• Cash-Flow: There should be an arrangement scheme be broughtand different methods should be adopted for the cash flow. Proper payment process should be done and continuous informationshould be taken of cash inflow and payments.

M2Here you will apply the concept of organizations theory andand apply your knowledge to the organization under study:

As we know that there are different types of theories of management which include some basic things which are as follows:

LeadingMonitoring

CoordinatingSatisfying the customersRewardsResource allocator Negotiator.

All of these have been discussed earlier and they play a very vitalrole in any organizations management. Every Tesco store is run inits own way where fast moving, high achieving high awards whoare dedicated to providing them the best service. The biggest boostto Tesco is that they have flexibility in every thing that is the key for them .No matter what happens if there is a crucial situation or avery relaxing one the service will be the same because it is beinglead by a good leadership .Leadership in Tesco is really visible to anyone one because anyperson going to any outlet of Tesco will have the same goodexperience they had in that other one.There is good monitoring done in Tesco and that is that there is aneye on every employee. Each employee working for theorganization helps the customer .The whole Tesco team works likea single unit that’s why today they are on the top and they have avalue in the market which cannot be beaten. Because withoutmonitoring, Tesco knows that one bad mistake done by anyone willbring the image of the organization down.With monitoring coordination also plays an important role inTesco. And there is no such organization like Tesco that does notfull fill coordination results. From top level managers to low levelevery one coordinates with each other to bring the best result.Sometimes there are night shifts and sometimes there are day

ones but the work progress is still in the same speed and it is not tobe changed because just for a simple reason and that is of



satisfaction of their customers .There customers that have beencoming up since 25 years just because of one simple reason andthat is of good management policies adopted by Tesco. Managersplay their role in their departments while employees carry on thegood work of serving the customers to satisfy them.

Tesco is a diverse business these days with a wide range of activities with a wide range of awards for different activities.Tesco is expanding rapidly and day by day Tesco Company islaunching new stores and operating overseas. Tesco Company isnow bringing six level broadband structures which gives linemanagers more direction and shows ways how give payments tostaff. Tesco is also moving towards total reward introducing someflexibility in its benefit provision.So Tesco is performing all the main points of a managerial theory.

D2

In this task you will come up with recommendations for theorganization theory for the organization. You must consider thesituation, organization is facing and which approach will be mostappropriate accordingly

As we know that the theory of management includes monitoring,ordering , conveying messages to the employees etc they all aresome of the major factors on which theory of management lies. Andthe basic need that these things require is techonology .As we know that Tesco is not having any proper departments e.g.general offices , higher level managerial offices etc so the biggestdrawback that Tesco can be hit with managerial problems. If thereis lack of technology Tesco can face a very big setback to itsmarket .Now recently there came a big problem in Tesco with themanagement and that was due to technical faults all of themonitoring could not be done . Supplies go short .There was lack of coordination.Tesco apologized to its customers also because 67 of its 2184supermarkets in uk had to be closedSo our recommendations would be to advance the technologies inthe supermarkets so that the managerial portion of the super market wont hit beause all the points that include monitoring ,coordinating and stuff can be lost

Danyal and Farids OB

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