Unit 3: Organisations and Behaviour

Learning outcomes
Explore organizational structure and culture
Examine different approaches to management and leadership and theories of
organization
Examine the relationship between motivational theories
Demonstrate an understanding of working with others, teamwork, groups and group
dynamics
Assessment criteria
1.1 Compare and contrast different organisational structures and culture
1.2 Analyse the relationship between an organisations structure and culture and the effects on
business performance
1.3 Analyse the factors which influence individual behavior at work
Organisations and Behaviour
OB: The study of human behavior, attitudes, and performance in organizations.
Value of OB: Helps people attain the competencies needed to become effective
employees, team leaders/members, or managers
Competency : an interrelated set of abilities, behaviors, attitudes, and knowledge
needed by an individual to be effective in most professional and managerial
positions
Organisation Structures
All businesses have to organise what they do
A clear structure makes it easier to see which part of the business does what
There are many ways to structure a business
Types of Organisations
Hierarchical
Flat
Tall
Functional
Product based
Geographically based
Matrix
Centralisation
Decentralisation
Hierarchical structure
Organisation employees are ranked at various levels within the organisation
Each level is one above the other
At each stage in the chain, one person has a number of workers directly under them,
within their span of control
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Tall hierarchical organisation has many levels

Flat hierarchical organisation only has few levels
Functional - people according to the function they perform in their professional life
or according to the functions performed by them in the organization.
Divisional - is based on the different divisions in the organization
Product - is based on organizing employees and work on the basis of the different
types of products.
Geographic large organizations have offices at different place
Matrix - is a combination of function, and product structures. This structure is the
most complex organizational structure.
Centralisation organisation head office(or a few senior managers) will retain the
major responsibilities and powers.
Decentralisation organisations will spread responsibility for specific decisions
across various outlets and lower level managers.
o Centralized relies on one individual to make decisions while decentralized
organizations will rely on several individuals for decisions
Culture: The dominant pattern of living, thinking, and believing that is developed and
transmitted by people, consciously or
unconsciously, to subsequent generations
Power culture
Role culture
Task culture
Person culture
Forward and backward looking cultures

Power Culture - control is the key element. Power cultures are usually found within a
small or medium size organisation.
Role Culture - organisations are split into various functions and each individual within
the function is assigned a particular role.
Task Culture - a team based approach to complete a particular task.
Person Culture - The focus of the organisation is the individual or a particular aim
(charities or non profit organisations. )
Forward looking organisations are risk takers and do well because of it

Dyson the vacuum cleaner manufacturer

A backward looking culture does not embrace change and is led by systems and procedures

M&S

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Flat Organisation Chart

a flat organisation will have relatively few layers or just one layer of management.
the Chain of Command from top to bottom is short
the span of control is wide. Due to the small number of management layers,
flat organisations are often small organisations
Span of Control
In an organisation, it is highly likely that a person will have responsibility for
managing a number of other people in the organisation
Two types of span of control
- Narrow span of control
- Wide span of control
Narrow span of control
A narrow span of control allows a manager to communicate quickly with the
employees under them and control them more easily
Feedback of ideas from the workers will be more effective
It requires a higher level of management skill to control a greater number of
employees, so there is less management skill required
Wide span of control
There are less layers of management to pass a message through, so the message
reaches more employees faster
It costs less money to run a wider span of control because a business does not need
to employ as many managers
The width of the span of control depends on:
The type of product being made products which are easy to make or deliver will
need less supervision and so can have a wider span of control
Chain of Command
Chain of command is an unbroken line of Authority than extends from the top to the
lowest level of organization
shows who reports to whom within the hierarchy

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Factors Influencing individual behaviour at work

Abilities and skills

Attitudes - anticipated outcomes
Personality
Perception
Traits and types
Understanding self and others
Self-efficacy

Assessment criteria
2.1 compare the effectiveness of different leadership styles in different organisations
2.2 explain how organizational theory underpins the practice of management
2.3 evaluate the different approaches to management used by different organisations
Development of Management Approaches

Scientific Approach
Bureaucracy Approach
Human Behaviour Approach
Social System Approach
Classical administration Approach
Socio-Technical Systems Approach
Systems Approach
Operational Approach
Decision Theory Approach

Scientific Approach
improve economic efficiency, especially labor productivity
It was one of the earliest attempts to apply science to the engineering of processes
and to management
Bureaucracy Approach
It has Division of labor, Hierarchy of authority, Formal selection, Career managers and
Formal rules
Human Behaviour Approach
Understand human relations and Emphasis on greater productivity through motivation and
good human relations
Social System Approach
Understanding the behaviour of groups and individuals

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Social System, a system of cultural relationship and Relationship exist between external
and internal environment of the organisation

Contingency Approach
In developing management concepts the environment within which the concepts are
to be applied has to be considered.
Internal environment - Structure, Process and Technology.
External Environment - Social, Economic, Political factors
Classical Administration Approach
Management is a process
concentrates on the role and functions of managers and distills the principles to be
followed by them
Functions of management
Principles of management
Organisation Theories
Leadership
Team building
Management

Leadership
Getting others to follow
Getting people to do things willingly
Use of authority in decision making
Importance of Leadership
It is related to motivation, interpersonal behaviour and the process of
communication
Good leadership involves the effective process of delegation and empowerment a
dynamic process
Leadership helps to develop teamwork and the integration of individuals and group
goals

Leadership and Management

A manager
Administers
Maintains
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Focus on system and structure

Relies on control
Does things right
A leader
Innovates
Develops
Focus on people
Inspires trust
Does the right thing

Leadership activities
Opportunist
Diplomat
Technician
Achiever
Strategist
Magician
Transformational
Change
Leadership behaviour
Directive leadership tell the subordinates what exactly expected and give them
directions
Supportive leadership friendly and approachable manner and concern of the
subordinates needs and welfare
Participative leadership consulting with subordinates and evaluation of their
opinions
Achievement oriented leadership setting challenging goals to subordinates and
seeking improvements
Transformational Leadership
Generating greater awareness of the importance of the organisation and task
outcomes
Activating their higher level needs
Higher levels of motivation and commitment among followers
Leadership Relationship
There are number of variables which affect the leadership relationship
o The characteristics of the leader
o The attitude, needs and other personal characteristics of followers
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o The nature of the organisation (structure, purpose)

o The social, economic and political environment
Leaders styles
Coercive demand immediate compliance
Authoritative mobilise people towards a vision
Affiliative creates emotional bonds and harmony
Democratic build consensus through participation
Coaching - develop people for the future

Reference
Mullins, L. J, (2005), Management and organisational behaviour, EDEXCEL
Organisational Structure and culture, 2010, [online] available at:
www.learnmanagment2.com, [Accessed: 24-Jan- 2011]
Robbins, S., 2003, Essentials of organisational behaviour

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