Explain how organisational theory underpins the practice of management

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This unit for HND business management course deals with the understanding for influence made by politics, power and culture on the behavior of organisational stakeholders. A key question in this unit is to Explain How organisational theory underpins the practice of management in current age business organizations. Students in this unit would be able to apply the organizational behavior theory pertaining to the various organizational situations to deal with the organizational elements. This unit provides the idea to students for impact of organisational theory towards the management practice followed in current age organizations.

Answering the key question “Explain how organisational theory underpins the practice of management”

Organisational theory deals with the usage of politics, power and cultural factors within an organization. These elements are key factors in order to drive organizational growth and shape up the practice of management followed. For example, there are different culture types such as power, role, task and person and each culture type has different impact on the practice of management followed within the orgaisation. Hofstede’s dimensions of culture plays vital role towards the cultural theory. Similarly, organisational politics and difference between organisational, personal and decisional changes influence practice of management. Finally, power as a property viewpoint and type of power also control power sources which have great influence on the practice of management within the organization. Hence this clarifies that organisational theory has great impact on practice of management and shapes the overall culture within the organization as well. Best best quality HND assignments with the leading HND Assignment help company in UK.

Sample for Unit 3 Organisations and behavior

Pearson BTEC Level 5 HND Diploma in Business

Contents

Organizations and Behaviour. 1

Pearson BTEC Level 5 HND Diploma in Business. 1

1.      Task 1: Power Point presentation. 3

2.      Task 2. 6

2.1.       Compare the effectiveness of different leadership styles and consider how each style would impact on the two organisations. 6

2.2.       Explain how organisational theory is linked to the style of management which is most likely to be practised in the two organisations. 7

2.3.       Evaluate the different approaches to management used by different organizations. 8

2.3.1.        Human behaviour approach. 8

Features. 9

Uses. 9

2.3.2.        Decision theory approach. 9

Features. 9

Uses. 10

Limitation. 10

2.3.3.        Empirical approach. 10

Features. 10

Uses. 10

Limitation. 10

2.3.4.        Contingency school approach. 11

2.3.5.        Operational approach. 11

Uses. 11

3.      Task 3. 11

3.1.       Discus the impact that different leadership styles may have on motivation in organizations in periods of change. 12

3.2.       Compare the application of different motivational theories within the work place. 13

3.3.       Evaluate the usefulness of motivational theories. 14

4. Task 4. 15

4.1. Explain the nature of groups and group behaviour within organization. 15

4.2. Discuss factors that may promote or inhibit development of effective teamwork in organization. 16

4.3. Evaluate the impact of technology on team functioning within a given organization. 16

Conclusion. 17

Introduction

Organizational culture refers to the working culture in an organization and pertains to the various impacts that an organizational culture would have on the performance of the individual. Organizational culture not only comprises of the various elements that are internal to the organization such as manpower, employee workforce and working conditions, but also reflects the need of the company to ensure that the organizational work space is effective and conducive to the work environment.

1.    Task 1: Power Point presentation

2.    Task 2

2.1.       Compare the effectiveness of different leadership styles and consider how each style would impact on the two organisations

Leadership style has been shown to be a major factor in the effectiveness of the organization and various leadership styles come with their effectiveness and suitability for that situation. Translational style may in certain situations give different results, so it is the case with all the styles of leadership. A leaders’ ability to inspire, motivate and create commitment to common goal is crucial (Bass, 1997). Traditional leadership focuses on mainly rational process, but theories of transformational and charismatic leadership focuses on emotional values. (Yukl, 1994). The transformational leaders have been described as broadening and elevating the interest of the followers, generating awareness and acceptance among the followers to go beyond self-gains but for the gain of the whole group (Bass, 1997). Transactional leaders on the other hand motivate the subordinates to perform as expected (Burn, 1978).

            Dubrin, Ireland and William (1988) notes that effective organizational leader are generally consistent in the way they try to affect the behaviour of the group members with this consistent pattern of behaviour being the leadership style of a given manager.

             The behavioural nature of the human being shows that, a leader is a complex creature, hence a need for varying styles of leadership as appropriate to the prevailing situation. A single style of leadership cannot be sovereign to management. They is always a need to modify the style adopted to suit a particular situation.

            The nature of management in the City College and the enterprise are participative in nature. A participative leader is one who shares decision making authority with the group. In the City College, the departments work together, as such, the administrative assistant working with the human resource manager, who in turn works with the production controller and so forth. The whole process is interdependent and cooperative.

            The participative style could be either consultative leader, consensual leader or democratic leader.

1. Democratic leader places final authority in the group, here the leader listens to the subordinate and takes decisions from suggestions or opinions. Also referred t as free-rein leader.
2. Consultative leader is one who seeks opinions from group before making a decision.
3. Consensual leader encourages group discussions on issues and make the decision from general consensus.

The relationship between two dimensional theories to the definition of a ‘one best way’ of leading manifests itself most clearly in the way. Blake and Monton (1964) built on the concept to propose that the most effective leadership style is the one which is high on both dimension, i.e. team management and the welfare of the workforce.

      At City College, the employees are emphasized as working as a team, which recognizes interdependences with each other together with the task to be done. Also at the enterprise they are trained and motivated to complete the task and also work as a team and do it towards the organization.

2.2.       Explain how organisational theory is linked to the style of management which is most likely to be practised in the two organisations

            Organizational theory is not a single theory. Dwight Waldo noted in a review of field work 1978: “organizational theory is characterized by vogues, heterogeneity, claims and counterclaims”. Organizational theory studies organizations to identify the patterns structures they use to solve problems, maximize efficiency and productivity, and meet the expectations of stakeholders. It then uses patterns to formulate normative theories which helps the organization functions best. The need to chip in into the ever growing world of business and the need for expansion, a need to apply the organization theory’s knowledge into management is of key interest. This expansion includes changes, both in infrastructure and human resource management. In order to keep up, organizational theories will have to be applied in the form of innovative designs, which will help make management processes much easier. Organizational theory has a vast importance to management

Some organizational theories include:

1. Bureaucracy theory: it helps to set appropriate function for management.
2. Contingency theory: it refers to the size and portion of the company. It evaluates environmental situations which lessen the inverse position of workers.
3. Scientific management theory: gives various technical supports to the management process.
4. Economic sociology theory: by implementing this theory a manager can easily make the budget for the company.
5. Classical theory: by adopting this approach, mangers can lead towards a systematic approach by following this theory.

All the above mentioned theories suggest ways to interact in order to achieve success. It may also dictate the way a business should organize to achieve success. One crucial importance of the organizational theory is that it helps to avoid a recession.

Alternative Answer

2.2 Explain how organisational theory underpins the practice of management

Contigency theory approach to the administration states that administration viability is contingent and also depends upon the application of administration practices and key situations. One size does not fit all. In this content there are three key theories which should be referred and termed as Contigency theory, Classical theory and Scientific management. These three organisational theories underpins the practice of management in organisational context.

2.3.       Evaluate the different approaches to management used by different organizations

      Over the years, different types of approaches to management have been adopted in the courses of management. Notwithstanding the vast number currently available so many other approaches are going to emerge in the future which will satisfy the ever increasing needs.

2.3.1.   Human behaviour approach

This approach was developed from over the years from the contribution of Maslow, Hertzberg, Vroom, Mc Cland, Argyris, Likeert, Lewis, Mc Gregor and a host of others.This type of approach bears the existing and newly developed theories and methods of the relevant social sciences upon the study of human behavior ranging from personality dynamics of individuals to the relations of culture.

Features

• Draws heavily from psychology and sociology.
• As management is a process of getting things done by people, managers should understand human relation.
• Emphasis on greater productivity through motivation and good human relation.
• Motivation, leadership, participation and dynamism are core values.

Uses

Demonstrate how management can be effective by applying knowledge of organization behavior.

Limitation

• Treating management as equivalent to human behavior.
• Talks about organization and behavioral in vague terms.

2.3.2.  Decision theory approach

Developed from the works of Simon, cyert, Forrester and a host of others

 Features

• Management is decision making
• Members of organization- decision makes and problem solvers.
• MIS, process and techniques of decision making are the subject matter of study.
• All factors affecting decision making are subject matter to study of management, Besides processes and techniques in decision making factors affecting decisions are information systems, social and psychological aspects of decision makers.
• Quality of decision affects the organization effectiveness.
• Organization can be treated as a combination of various decision centres. The level and importance of organization members are determined on the basis of the importance of decision, which they make.

Uses

• It demonstrates how managers can discharge their functions effectively and for this approach it provides various tools.

Limitation

• This approach does not take total view of management. Decision making is vital in every school but management is more than mere decision making.

2.3.3.  Empirical approach

Contributors: earnest Dale, Moony and Reily, Urwick.

Features

• Managerial experience is passed from participant to student for continuity in knowledge management.
• Study of successful and failure cases help practicing managers.

Uses

• Learning through experience

Limitation

• Situation of past not the same in all cases.

2.3.4.  Contingency school approach

In developing management concepts the environment within which the concepts are to be applied has to be considered. Internal environment: structure, processes, technology; external environment: social, economic, political etc.

2.3.5.  Operational approach

This school focuses on the role and functions of the managers and breaks it into the principles to be followed.

Developed by; Fayol, Lyndall Urwick, Harold Koontz, Newman, Mc Farland, Taylor etc.

Uses

Flexible and practical but not universal

In conclusion city college have adopted some approaches to managements such as contingency school approach, operational approach and human behaviour approach while Enterprise adopted approaches such as Empirical approach & Decision theory approach from the above approaches to management.

While an empirical approach is more suited to City College owing to the steady nature of work profiling and business, The Enterprise would be more suited to the needs of the Contingency Approach of leadership.

3.    Task 3

3.1.       Discus the impact that different leadership styles may have on motivation in organizations in periods of change.

            The functions of leadership to any organization cannot be over emphasized. The leadership styles have made revolutionary changes in organizations in the last couple of years. It is no longer news that firms which adopt strong leadership style tend to come out more robust and successful. Though advancement of technologies companies’ workings are lot easier than before, but companies which have strong leaders take competitive advantage (McBain, 2012).

            Employee motivation is one of the policies off mangers to increase factual job management amongst employees in organizations (Shadare et al. 2009).

Autocratic leadership

An autocratic Manager is one who rarely seeks the mangers consent before embarking on any task. Autocratic managers motivate their workers by establishing confidence in the manager’s ability to make accurate and productive decisions, this type of leadership style is applicable to Enterprise. Employees become comfortable with the leader and tend to reckon with the leader’s decisions.

Transformational leadership

This is a charismatic leader who believes he has a vision for the future of the company and his vision will change the fortune of the subordinates.  He motivates by trying to get the employees to keen into his vision, once that is achieved, the employees will work out to achieve those goals. This type of leadership can’t be found in Enterprise

Democratic leader

In this type of leadership, the employees get involved in the decision making process, the manger cannot take major decisions without the consent of the workers. The motivational tactics here is that of inclusion. This leadership style can be found in the case of City College, the various staff in the department are kept active the decision making process. The employees will then take emotional interest in the success of the organization.

3.2.       Compare the application of different motivational theories within the work place.

Over the years, many schools of management have attempted to develop well-articulated theories and studies of motivation, and its effectiveness within the industry. Each of the theories at some time has been applied and tested as to its effects on worker’s welfare, the task and personnel as well as work goals. It is often said, the most important task of the manger is to motivate the workforce (Ruthannkoot, 2003)

            Several motivational theories have been put together by management experts to support the need for effective motivation in an organization. Some f the presumptions include:

1. Abraham Maslow- Hierarchy of Needs
2. Douglas McGregor- Theory X and Y
3. Fredrick Herzberg – Two factor theory
4. Elton Mayor – Human Relation school of thought.
5. Fredrick Winslow Taylor- Theory of scientific management.

Implementation

1. Use traditional and innovative compensation strategies to leverage the expectancy theory. By this the two companies will put forth the goal that for each specific task, employees will put an account of effort to correspond with the values of compensation, they are likely get as in the case of City College
2. Tie compensation incentives directly into specific performance objectives to push your employees to excel. Use both intangible and tangible rewards; this increases the commitment to the company goal as in the case of Enterprise that has a high need for effective motivational needs of manpower with an employment scale of 75000 people.
3. Institute employee’s development programs. These programs allow the workers to move into positions of leadership, fulfilling their ambitions.
4. Gauge the intrinsic innovations of your employees to determine whether Mc Gregor theory X or theory Y is more appropriate or whether there is another that serves the purpose. Theory X sets forth the premise that employees are inherently averse to working, and should be motivated externally. Theory y set the premise that employees are internally driven to succeed at the projects that are truly of interest to them. In the case study, theory X is more appropriate in City College and enterprise. Also they is a need to make the employees understand that creativity and innovation is needed if theory Y is needed.

3.3.        Evaluate the usefulness of motivational theories.

An employee’s performance typically is influenced by motivation, ability and the work place. Motivation is crucial because of its relevance as a determinant of performance and its intangible nature. Some of the benefits City college and Enterprise could drive includes:

1. Satisfaction of employees: the employees here are motivated through facilities financial and non- financial. Financial facilities are essential to fulfil basic and other psychological needs. This can be applied to both the companies as the performance in both the companies is dependent upon the performance of the employees.
2. Minimize disputes:  the development of transparency bout the internal matter stimulates the workers to perform their work effectively. The number of disputes in case of Enterprise can be higher owing to large fleet and lager employee pool.
3. Minimizes supervising cost: it helps to develop self-reliance by the workers. Therefore, close and regular supervisions are not required to that extent.
4. Reduction in employee turnover: the reputation of an organization is affected by the employee turnover. This creates a lot of problems. A lot of time is spent on recruiting employees and retaining, but in the real sense, only motivation can save the organization from such waste. Hence a need for a roper and appropriate adoption of a motivational theory.
5. Helps to reduce absenteeism in the organization: Motivated employees do not remain absent from work as the work place becomes a source of Joy to them.

4. Task 4

4.1. Explain the nature of groups and group behaviour within organization.

Organizations are formed of teams that are dedicated towards accomplishing the tasks that have been aligned. These members are constantly interacting amongst themselves, and as such can influence each other. The groups found in an organization could be categorized into two broad types, the formal groups and the informal groups. Formal groups are formed as a result of the rules of the company or its other functions; the informal group on the other hand is formed from the interrelation among people. Millegan and Kris, 2003, assert that groups can be formed from process such as storming, norming, performing and adjourning. While City college has participative and proactive groups, Enterprise has a competitive edge to the groups. This may also be due to the pressure of revenue that has to be generated in Enterprise.

The behaviour of the workers to a large extent matches with other workers from other groups. With constant interaction amongst the worker the group people to influence the outcome of the organization.

4.2. Discuss factors that may promote or inhibit development of effective teamwork in organization.

Effective teamwork can benefit a company with improved skills of communication, broaden its sense of accountably and so on, but on the same time there also some obstacles to effective teamwork that managers need to be able to identify and subsequently do away either. There are dozens of these Factors which promote or inhibit the development of effective teamwork.

1. Motivation: this factors boasts the morale of the worker and makes him want to deliver at all cost, in its absence, the workers is down and not willing to work leading to absenteeism and low productivity.
2. Incentives: these could be in from of remuneration or premium or group bonuses. When workers get extra pay for work given them, their productivity is greatly increased.
3. Mental coordination: when a worker of a group cannot controls his emotions at work and becomes anxious then it may affect the general productivity of the organization.
4. Training: proper training must be carried out on worker to increase their level of competence. This is of importance in situations of critical situations.
5. Communication: with good communication can foster teamwork, poor communication is a barrier to developing a productive work atmosphere.

4.3. Evaluate the impact of technology on team functioning within a given organization.

Technology is drastically changing the business landscape. Although organization cultures and is strategies shape the use of technology, the influence more often times the other way round. Technology is the most effective equipment in this world of globalization (Macleond, 2009). Advancement of technology has tremendous effect on team work, as the technology helps in coordination process. Some of the impacts of technology on the two organizations could be:

• The work place: allowing work from home and on the move, like the case if telework.
• Management process: providing support from complex decision making process
• Organization: making networking and virtual corporations a reality.
• Business strategy; eliminating time and distance, promoting electronic commerce.

Conclusion

It may thus be stated that for an organization to prosper, effective people’s management and motivation that is directly linked to the performance of the individual are the base factors that are in turn responsible for the performance of the company. This is the prime reason why the most effective line of management would not only focus on the management of people in the organization but would also cater to the needs of leadership.

Reference

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