LO 1: UNDERSTAND THE RELATIONSHIP BETWEEN ORGANISATIONAL STRUCTURE AND
CULTURE
Guidelines (Approx. Word Count - 200)
In your answer, you should:
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Question1.1: - Compare and contrast different organizational structures and culture
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Hint: - The organizational structure refers to the way the jobs, responsibilities and power are organized within an organization. The organizational structure of KBR is indeed a reflection of the opportunities which the business is seeking to maximize all over the world. It has divided or bifurcated the organization into various segments to cater the requirements of various business units so that each part can proliferate individually and gain expertise in its own area. Main six units through which KBR serves its customers are as under:
1. Upstream- service provider for engineering, construction, purchasing and related works for energy generation.
2. Downstream- service provider for business clients in the petrochemical, refining and coal gasification market.
3. KBR services- provider of services for construction and maintenance.
4. KBR Technology- safeguards the technological competitive advantage of the organization.
6. Government and Infrastructure (G & I) - service provider for various businesses for public and private sector businesses all over the world.
The organizational structure of KBR is a hierarchically designed to deliver its business goals and strategy and reflect the intended outcome of the project.
The Fluor Corporation is one of the biggest competitors of KBR and has a streamlined organizational structure for serving the goals and objectives of the organization. It has a culture of Knowledge management which restores the best potential of employees within a flatter organizational structure.
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Question:- 1.2 Explain how the relationship between an organization’s structure and culture can impact on the performance of the business
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Hint: - There is a great influence of organizational structure on the business performance of the organization. KBR has a mix organizational structure of hierarchical, flat and matrix form serving various objectives at different levels. The hierarchical structure at lower levels defines roles and responsibilities of every person. The people at the top of the hierarchy have more power and authority than the lower ones. Unlike the hierarchical structure of KBR, Aspire Defence Services Ltd (ADSL) has a flatter structure with only a few layers. This is because both of the divestments have a different set of roles and responsibilities. In the case of KBR the management needs to handle a vast team of employees across the world, thus, there needs to be a defined project management strategy which can be well diffused in a hierarchical structure. ADSL is more of a technical government sector with more of official or government functions. Thus, a flatter organizational structure will be beneficial in this case. There is a Senior Management Team (SMT) at the top which takes high-level decisions for contract delivery, financial control and so on. It provides a god level of contact and communication within the organization.
Simultaneously, with the help of a matrix structure, a group of workers with different skills is created from across the functions of the business for a specific project. This organizational style is highly beneficial for the project based nature of the KBR.
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Question: - 1.3 Discuss the factors which influence individual behavior at work
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Hint: - There are mainly five factors which influence the individual behavior at work. They are as under with relevant examples:
1. Demographic factors- These are basically the socioeconomic factors like education, nationality, race, sex, age etc. Example-
· Most of the IT companies prefer people with sound education qualification, experience and knowledge of IT.
· A MNC operating in any particular country demands the workforce with the ethnicity of the same country for better growth.
2. Ability and skills- It is a combination of the physical and mental capability of individuals of the organization. Any individual can work in an organization only if his abilities and skills match the job requirement. Example-
· An individual with perfect physical health required for the manufacturing industries related to furnace or chemicals.
· Computer skills are must for the people working in the accounts department.
3. Perception- Denoted the cognitive process of individual to interpret the environmental stimuli for his work environment and conditions. Example:
· Motivated employees have a positive perception towards the work culture.
· Positive perception towards SAP leads to easy adoption and involvement.
4. Attitude- It is basically the tendency of individuals to respond towards various objects, persons or situations. Example:
· Resistance towards any change process by the employees denotes their negative attitude.
· Acceptance of various factors as per the Maslow’s need hierarchy depends on the attitude of the individuals.
5. Personality- It is the study of characteristics and distinctive traits of an individual and their interrelationship. Example-
· Openness in the personality allows easy acceptance to various changes.
· Conscientiousness personality allows scope for future planning than being spontaneous.
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LO 2: UNDERSTAND DIFFERENT APPROACHES TO MANAGEMENT AND LEADERSHIP
Question:- 2.1 Compare the effectiveness of different leadership styles in different organizations
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Hint: - Under various guidelines for the expected workforce for KBR, there is a high expectation of a skilled and experienced workforce. It should be technically competent with good oral and written communication. Similarly, there is also a guideline for managers as to be technically competent and display honesty and integrity for example. They should also be visionary in their leadership and managerial skills. Considering an open organizational culture of KBR, below are the leadership styles used by it:
a) Democratic Leadership- allows the managers or the leaders to extend the decision-making process within the team and seek full involvement and feedback on the same. It helps the team members to connect and build a social equality within the organization. Deborah Marsh is a strategic leader with a viewpoint that all cross functional teams must work together to achieve the desired outcome.
b) Laissez- Faire- It allows all rights and power to the workers to make decisions as well. It is also applicable in the case of KBR. Jamie Wilson who joined as skilled trade person carries various jobs of his level and also has full authority to contribute to the decisions for himself within the organization.
On the contrary, the competing company Fluor Corporation to KBR has a dynamic and vibrant HR head Glenn guiding the Fortune 500 company in all its odds and cons. Being a mechanical engineer, he has been recently advanced r promoted to be the head HR position. As a true leader, he cares less for himself and more for his organization. The leadership style followed by Glenn Gilkey is Collaborative and decisive which serves as an inspiration for others to perform at their best to achieve the desired outcome and results. He is highly visionary in his leadership approach which further fosters a high level of trust and collaboration among the employees.
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Question: - 2.2 Explain how organizational theory underpins the practice of management
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Hindi: - Organizational theories are the basic guidelines for the streamlined functioning of any organization. These theories provide a basic structure for the smooth governance of the organizations. It is a sociological study of organizations with the perspective of their businesses, bureaucracies and their interrelationship with the environment of operation. It is a complementary study of the organizational and human resource behavior. There are many phases or implementation of organizations over the time so as to fit in the best organizational practice for the organizations. Over the period, there were many theories including Bureaucracy, Rationalization (Scientific Theory) and Division of Labour. Out if these three concepts, the most successful and practiced is the Rationalization or Scientific Theory of organization. F.W. Taylor analyzed the most efficient method to derive the maximum output from minimum input through this theory. It has two significant parts- Specificity of goals and formalization. As per this specificity and formalization, specific goals are derived and allocation of appropriate resources is done. As per the scientific theory of Organizational management by F.W. Taylor, the following are the influences on the management practices:
· Division of work between managers and workers
· Appropriate incentive system based on the performance of every individual for further motivation.
· The workers should be scientifically trained
· There should be a scientific approach to the roles and responsibilities of every individual
· Efficient and timely completion of work.
It is basically a scientific theory to create a rational organizational system and even rationalize the individual worker as well. There is a specific standardization done for each task and the expected performance or outcomes are matched against it. There were some controversies however towards this theory. They are as under:
Ø Rebel of workers against sophisticated business studies.
Ø The incentive system was little unrealistic as per the workers as they were expected to work continuously at their optimum level.
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Question: - 2.3 Evaluate the different approaches to management used by different organizations.
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Hint: - Management approach used by KBR:
· Hawthorne Study- It was basically a solution or remedy against the rigid Scientific and Universal management process theory by Taylor and Fayol. It highlighted towards the needs of the workers both physiological and economic. It further developed motivated and contented employees who felt connected to their organizations and thus performed more efficiently than before. It was as retaliation against the ill treatment given to the workers in organizations towards their needs and ambitions. It led to the increase in the productivity of the workers with a further focus on satisfactory interrelationships between the co- workers. It also enhanced effective group and team influence towards the organizations goals and objectives. Further, there were also major improvements in the interpersonal skills of the employees through motivation, leading, communicating and counseling.
The management approach used by the competitor company Fluor Corporation:
· Contingency theory of management- It defines that there is no defined process or method to lead a company or make decisions. It is entirely on the wit of the leaders in action to take appropriate actions and decisions as per the situation. Since Fluor Corporation has the prime focus on the Marketing Management, it needs to be led by the visionary ideas and governance of the efficient leaders of the organization in that situation.
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LO 3: UNDERSTAND WAYS OF USING MOTIVATIONAL THEORIES IN ORGANISATIONS
Question: - 3.1 Discuss the impact that different leadership styles may have on motivation in organizations in periods of change
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Hint: - As per a discussion in the point number 2.1, the different leadership styles in KBR are Democratic and Laissez- Faire, while in Fluor Corporation (one of the competitors of KBR), it is Collaborative and decisive. But the case and situation are not the same at the time of economic depression. There are many factors which are hampered at the time of economic depression the major being the financial sector. Accordingly, there are variations in regular processes and procedures of the organization. There are also many variations in the regular factors affecting the employment cycle. Accordingly, there needs to be a rigorous step taken to keep the employees motivated and intact with the organization. At this time, the most effective leadership style is that which keeps the chaos, disturbance and financial turbulence under control. For this, there has to be strict governance. In the case of both the organizations, the leadership style used at the time of economic depression is Authoritarian or Autocratic Leadership style. It helps the leaders to keep a close control over followers by keeping a close regulation of policies and procedures given to them. It provides a guideline for the managers or the leaders to get a specific work done through the desired process for the desired result at the time of economic depression.
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Question: - 3.2 Compare the application of different motivational theories within the workplace
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Hint: - The comparison of the Maslow’s Hierarchy of needs to Hertzberg’s hygiene and motivation factors within the workplace are as under:
Example- In the organization like Tesco, the motivation of the employees are taken care by both the means, by taking care of the hygiene factors and the satisfies as well. On one hand where the motivation is done by appropriate and timely communication, it also enhances the hygiene factors like involving them in various responsibilities and decision-making process. Staffs are included in the forums where the pay rises and rewards are a matter for discussion. Their decisions are even taken for deciding the menu for their restaurants. This further motivates the employees to stay connected to the organization. It creates a sense of involvement of the employees in their own employment.
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Question: - 3.3 Evaluate the usefulness of a motivational theory for managers
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Hint: - Today is the era of enhanced communication, globalization and improvement in technology by the organizations to get into a Win- Win situation of the business. Simultaneously, there lies a huge pressure on the managers of this century in order to meet the expectation of the organization and live up to the mark of self-satisfaction. The intelligent workforces are capable enough to study the pros and cons of the profits and loss. To be short and precise, the approaches to the motivation are the underpinned by motivation. Though there are many motivational theories classical and modern books of theories, but it can now be classified into three broad categories of instrumentality, content and process theory to better define the influence of motivational theories on the managers of the 21st century.
a) Instrumentality theory- defines the interrelation of the rewards and punishment and their linkages towards the desired action or behavior of individuals in an organization. It includes the scientific or rational theory of F.W. Taylor emerging in late 19th century emphasizing on the need to rationalize work on economic outcomes.
b) Content theory- focusing on the motivation factor. Highlighting mainly the hierarchy needs of Maslow and two-factor model of Hertzberg it states that motivation and satisfaction go hand in hand.
c) Process Theory- It highlights on the psychological factors affect motivation like Vroom’s Expectancy model, Latham and Locke’s model of goals and perceptions of equity model of Adams.
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LO 4: UNDERSTAND MECHANISMS FOR DEVELOPING EFFECTIVE TEAMWORK IN
ORGANISATIONS
Question: - 4.1 Explain the nature of groups and group behavior within organizations
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Hint: - In literal words, a cluster or collection of people that are located or gathered at a particular place for a particular work is known as a group. Now, development or formation of a group or a cluster of people for a certain task is a very useful approach for the accomplishment of any task. In the case of management practices, this term group is better defined as a team. Effective use of a team can be a tremendous method to pool in innovative ideas and experience for any work, task or objective. Rather almost all the organizations can benefit out of successful groups or teams within. As the team progresses there is a kind of dynamics or interrelation developed amongst the team members. It is basically a positive approach to helping each other in a team in a positive direction towards a common goal or objective for mutual benefits.
KBR has indeed been very successful in handling a positive group dynamics within the organization as a result of which there has been a continuous success and development within the organization. Initiated by Morris in 1901 through a small pipe fabrication business, it expanded to a huge KBR company with the leadership guidance of the founders and the effective group dynamics of the team on function.
Similarly, The Fluor corporation, one of its competitors has gained the status of being a Fortune 500 company through its positive and successful team and its dynamics. The guidance through effective leadership styles along with an efficient team has made the success happen this way.
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Question: - 4.2 Discuss factors that may promote or inhibit the development of effective teamwork in organizations
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Hint: - Factors which promote the effective teamwork within KBR are as under:
· Leading engineering, construction, and service organization
· Over 57000 employees across the world
· The team works with wide range of clients providing them specialist expertise and experience.
Factors which promote effective teamwork in Fluor Corporation are as under:
· Globally recognized the company with vast diversifications in engineering, industrial, and marketing industry.
· Also have business in energy and chemicals, industrial and infrastructure, global and government services.
· Sustaining and accepting challenges in the business for about 100 years.
· Good problem-solving teams handling teams across six continents in the world.
· Equipped with a full spectrum of services to meet any challenges.
Factors which do not help the development of teamwork in bothe the cases are common-
· Dissatisfied and demotivated team members
· Poor technology and business plans
· Poor management and leadership team
· Less or no psychological connect with the organization.
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Question:- 4.3 Evaluate the impact of technology on team functioning within a given organization
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Hint: - Fostering a culture of open-mindedness, the teams of KBR are highly influenced by the technical support. Being an organization with specialized functions in engineering, construction, and similar services, there is a huge inclusion of technical support at each level. Where the people and the teams are the key strengths of this organization the managers or the leaders work with an analytical mind utilizing best of the technological support in this field. There are multi-disciplined engineers with problem-solving minds and designers with a passion for excellence and professional pride. Robust tools and technology are the prima fasciae of this organization along with the innovative business ideas and commercial software. All these have streamlined the process of this organization to such an extent that there is a very less scope of fault or disappointment among the working teams. Besides this, a group of highly equipped technical consultants is a part of the working team of this organization.
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