Organizations and Behaviour

Unit 03

Table of Contents
Introduction to the assignment................................................................................................3
Introduction to the organizations.............................................................................................4
Introduction of Google Inc........................................................................................................4
Introduction of Microsoft Corporation.......................................................................................5
Lo1 Relationship between organizational structure and culture...........................................6
Compare and contrast different organizational structure and culture (1.1)...............................6
Organizational Structure.......................................................................................................6
Types of Structure................................................................................................................6
Structure of Google Inc........................................................................................................... 11
Structure of Microsoft Corporation..........................................................................................13
Organizational Culture............................................................................................................ 15
Types of Culture..................................................................................................................... 15
Culture of Google Inc............................................................................................................. 16
Culture of Microsoft Corporation.............................................................................................17
Relationship between an organizations structure and culture and how it can have an impact
on performance of the business (1.2).....................................................................................18
Factors that affect individual behaviour at work (1.3).............................................................19
Personality.......................................................................................................................... 19
Perception.......................................................................................................................... 20
Attitude............................................................................................................................... 20
Learning............................................................................................................................. 20
LO2 Different approaches to management and leadership..................................................21
Effectiveness of different leadership styles in different organizations (2.1).............................21
Leadership.......................................................................................................................... 21
Leadership style in Microsoft Corporation..............................................................................22
Leadership style in Google Inc...............................................................................................22
How organizational theory underpins the practice of management (2.2)................................22
Management Theories........................................................................................................... 22
Classical Approach................................................................................................................. 23
Scientific Management.......................................................................................................23
Max Webers Bureaucracy theory........................................................................................24
Behavioral Approach.............................................................................................................. 24
Contemporary Approach........................................................................................................ 25

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System Approach..............................................................................................25
Different approaches to management used by organizations (2.3)........................................27
Management approaches used by Microsoft Corporation......................................................27
Management approaches used by Google Inc.......................................................................27
LO3 Understanding ways of using motivational theories....................................................28
The impact that different leadership styles may have on motivation in organization and in
different periods of change (3.1).............................................................................................28
Organization periods of change.............................................................................................28
Application of different motivational theories within the workplace (3.2).................................29
Motivational theories.............................................................................................................. 29
Motivation........................................................................................................................... 29
Content Theories.................................................................................................................... 30
Process Theories................................................................................................................... 32
New theories of motivation.....................................................................................................33
Motivation Theory on Google Inc............................................................................................34
Motivation Theory on Microsoft Corporation...........................................................................34
Evaluating the usefulness of a motivation theory for managers (3.3).....................................35
LO4 Understand mechanisms for developing effective teamwork in organizations..........36
The nature of groups and group behaviour within organizations (4.1)....................................36
Groups................................................................................................................................... 36
Formal Groups.................................................................................................................... 36
Informal Groups.................................................................................................................. 36
Group decision making........................................................................................................... 37
Factors that promote or inhibit the development of effective teamwork in organization (4.2)..38
Team...................................................................................................................................... 38
Types of teams................................................................................................................... 38
Team Building......................................................................................................................... 39
Impact of Technology (4.3).....................................................................................................40
Conclusion............................................................................................................................... 41
References............................................................................................................................... 42

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Introduction to the assignment

In this assignment Im discussing 4 main points on organization behaviour, 1st Ill talking about
the relationship between organizational structure and culture, secondly about leadership and its
importance for organizational behaviour, third how the motivational factor can have an effect on
an organizational behaviour and lastly how teams and groups can have impact on the
organization and how technology changed them (teams and groups).
I have taken 2 organizations from the computer technology world as a way to explore and
analyze. The two companies are Google Inc. and Microsoft Corporation.

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Introduction to the organizations

Introduction of Google Inc.

Google Inc. was founded on September 4, 1998 by

Larry Page and Sergey Brin. Google started its
business as an internet search engine (Google
Search).
At the beginning the two Stanford university graduates started the company in a garage of a
friend (Susan Wojcicki) in California, USA with the first employee being Craig Silverstein a fellow
Stanford university student. Google got its first funding on 1998 a contribution of $100,000 at the
same time Google got incorporated in California and became Google Inc.
In March 1999 the company moved its offices to Palo Alto, California, and faced its first lawsuit
against Google regarding their search engine. With the lawsuit problem getting resolved they
patent their PageRank mechanism in 2001. In 2003 the company again moved its offices to
Amphitheatre Parkway, Mountain View, California (Googolplex) following its success Google
had bought many subsidiaries in the years to come and diversified its product lines and
services, as of year 2014 their net assets were $131.133 billion (Google Inc., 2015)
If we take look at the company now in the present Google has become a global tech giant with
its arsenal of subsidiaries such as (YouTube, Ad Mob, Blogger, Nest Labs, Boston Dynamics
and Bump) with its original product (Google Search engine) perfected now the company is going
ahead with other areas. Its next success being its Android operating system they were able to
capture the Mobile phone industry as well in fact now their whole ecosystem of technology is
centered on their android phone market. If we were to look at the future the company we can
see that they are looking into areas like Self-driven vehicles, Augmented reality devices and
most importantly currently there are about 1 billion people using their products and their next big
goal is to reach another billion customers (The next billion plan).
Mission of Google Inc.
Organize the worlds information and make it universally accessible and useful (Google Inc.,
2015).

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Introduction of Microsoft Corporation

Microsoft Corporation was founded on April 4, 1975 by

Bill Gates and Paul Allen. Microsoft started its business
as a computer operating system developer (MS-DOS).
When Microsoft developed MS-DOS in 1980 IBM
(International Business Machines) got them under contract for using Microsofts MS-DOS in
their personal computers this decision had a big impact on Microsofts future because after this
date onwards every personal computer shipped out for customers all around the world was
installed with MS-DOS.
In 1985 Microsoft together with IBM released Microsoft Windows the first GUI (graphical user
interface) operating system from a line of successful operating systems to come from Microsoft.
The company ran into a plethora of law suits regardless Microsoft continued to release now
softwares and technologies in the years to come. In 1990 Microsoft introduced Microsoft Office
the start of Windows office suit now which we cant survive without in our academic life.
By year 2000s Microsoft had managed to become a worldwide monopoly on the computer
market and Bill Gates became the richest man (Net Worth - $60 Billion), Their income was
partially generated by their royalties from other manufacturers using there technology in their
computer devices. In the same year (2000) Bill Gates handed over his CEO position to Steve
Ballmer and self-appointed himself as the Chief Software Architect of the company.
In 2001 Microsoft Corporation had started its next success Xbox and started competing with
gaming industry giants like Sony and Nintendo, by now Microsofts subsidiaries also grew with
important acquisitions like Hotmail, Visio Corporation and Bungie Software.
Under Steve Ballmer in 2013 the company went through a major company-wide reorganization
by shifting its executive into different roles because by this time Microsoft was suffering from a
lot of bureaucracy internally that is not a good for a company like Microsoft where they partly
depend on new innovative ideas from the employees.

Mission of Microsoft Corporation

Empower every person and ever organization on the plant to achieve more.

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Lo1 Relationship between organizational structure and

culture
Compare and contrast different organizational structure and culture (1.1)
Organizational Structure
The structure of an organization can be regarded as a framework for getting things done. It
consists of units, functions, divisions, departments and formally constituted work teams into
which activities related to particular processes are grouped together. (Armstrong, 2006)
Organizational structure determines the manner and extent to which roles, power and
responsibilities are delegated, controlled and coordinated within the organization and how
information flows between different management levels.
Key elements of organizational structure
Work specialization
Departmentalization
Authority
Chain of command
Unity of command
Span of control
Delegation
Centralization and Decentralization
Formalization

Types of Structure
Geography Structure Groups are divided on the basis of their geographical location.

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Advantages of geography of structure

1. Groups allocated make decisions according to their local environment (customer market
needs are different from a place like India to UK so decisions have to unique to that
market).
2. Large international organizations will have better Management over its resources.
Disadvantages of geography of structure
1. Duplication of jobs meaning theirs a chance to create same function job in two offices in
the same company that leads to unnecessary organizational expenses.
2. Inconsistency in standards may develop from one area to another same can happen in
regards to organizations culture (it will be harder to keep one unique culture among all
the branches of the organization and will lead in to internal company differences)

Function Structure Functional organization involves grouping together people who

perform similar tasks or similar technology or materials (Riley, 2011).

Advantages of function structure

1. Expertise is pooled meaning for example if we take and IT department in a company
since they are grouped together they can work more efficiently and can come with new
innovative ideas faster.
2. It avoids job duplication
Disadvantages of function structure
1. If inter department communication are done poorly, coordination between departments
will drop and that will lead to confusion and ultimately loss of performance (Profit).
2. When doing a project employee efforts and attention may focus on internal processors of
doing things rather than getting good outputs (results) to their project (Customers)

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Product/Brand Structure Groups are allocated according to the product or product line.

Advantages of product/brand structure

1. Accountability meaning individual managers can be held accountable for the profitability
of individual products (services) (Riley, 2011).
2. Specialization meaning employees (departments) will be hired and trained to carry out a
single line of product or brand, also this will lead to better coordination between inter
department employees.
Disadvantages of product/brand structure
1. It increases the overhead costs and managerial complexity of the organization (Riley,
2011).
2. Different product divisions may fail to share resources, ideas and customers (Riley,
2011).

Matrix Structure - Matrix structure crosses functional department and organizations

desired outcome (product/service/project).

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Advantages of matrix structure

1. Exchange of resources and information is more efficient since different projects and its
employees can share them across departments and projects.
2. Project manager (Leader) have to take more of a democratic approach when managing
the project, project manager have to take supervisors (function specialist) inputs before
making decisions or alterations on the project.
Disadvantages of matrix structure
1. Internal complexity can slowdown goal attainment, when its a large project the line of
authority can get very complex and confusing for the employees to work this will lead to
inefficiency in the whole project.
2. Since there are management teams for each and every project matrix structure can be
more expensive to maintain.

Multifunctional Team Structure A multifunctional team structure is a group of individual

brought together from more than one functional area of a business to work on a problem
or process that requires the knowledge and experience across the area to successfully
complete the work (Riley, 2011).
Advantages of multifunctional team structure
1. In this structure all the problem that arise with line of authority and bureaucratic
procedures are eliminated.
2. Improved morale and enthusiasm due to cross-functional interaction.
Disadvantages of multifunction team structure
1. Since employees taken from their respective department and working with other teams
there can be conflicts inside the team in regards to loyalties.
2. Effectiveness of the team mostly depends on employees selected, factors like
personality, interpersonal skills and the groups dynamics will have an effect on the
effectiveness of the team/department.

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Multidivisional Structure This is an organization structure in which each product line,

market or business need is placed in its own self-contained unit

Advantages of multidivisional structure

1. Since products/services and business need is placed in its own self-contained unit the
organization have better financial and strategic control over them the reason being
ultimately all decision making responsibilities are retained at the headquarter level.
2. Growth is easier because new units that implemented in the organization doesnt have to
be integrated across the organization.
Disadvantages of multidivisional structure
1. Since there are separate units theres a high chance for duplication of jobs (functions)
across the organization.
2. With this structure there can be competition for resources between different units
(divisions).

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Structure of Google Inc.

Google Inc. follows an ordinary management structure that is separated and gathered into areas
of concern that supports the corporation in marketing its global presence. As the figure shown
above depending on the location and the product market, small-scale entities are divided and
combined under their individual groups. This confirms centralized planning that is important for
multinational corporations and at the same time gives the smaller units enough flexibility to
innovate like a small startup company, also it gives the employees also that feel of a small
company which is a good mind set for company where innovation is key.
Google also hire supervisors in some positions such as Chief Internet Evangelist and
distinguished entrepreneur to help recognize and enable new technologies or a Chief Culture
Officer to preserve their distinctive atmosphere together these managers guarantee the
company remains innovative and in the forefront of the technology world.

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Structure of Microsoft Corporation

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When Bill Gates and Paul Allen started the company Bill Gates wanted to create a family work
environment but as the company
grow they moved in to a
functional structure.
Now still in the present they are
still following a functional
structure in which is divided into
different regions. Under Steve
Ballmer he introduced a
Research and Development
team into each functional group,
he did this in hope of new
innovative ways to deal with their functions and to speed up and make the departments more
efficient.
After some time the use of these R&D teams in their functional departments created difficulties
in coordination with other divisions and was suffering from bureaucracy and redundancy.
Currently with the new CEO Satya Nadella R&D teams are taken away and he did a shuffle of
executives in the company to change the long lasted leaderships of the company and gave it a
boost in employee performance. When Nadella took over the company his main focus was to
break down the barriers that was there in front of the employees to work more efficiently, also he
gave more importance to the engineering departments which was not performing well when he
took the CEO position.

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Organizational Culture
The organizational culture is the pattern of values, norms, beliefs, attitudes and assumptions
that may not have been articulated but shape the ways in which people behave and things get
done. (Armstrong, 2006)
Organizational Structure defines how the line of authority flows through the company and how
each individual employees and jobs can contribute/perform to archive organizational goals.
Organizational Culture defines the organizations social and psychological environment and also
Organizational Culture is directly influenced by its values, beliefs and behavior.

Types of Culture
Power culture In power culture the organization is controlled by key central figures and
often its the owner or founders of the organization. This culture model is very adaptable
and informal, Organizations who follows these types of culture are not tightly structured
so when changes occur in the organization or its business environment the organization
can adopt rapidly. For power culture to be successful the employees of the organization
need to have good personal relations within the company because important decisions
are primarily taken by the key central figures thus making this culture type effective in
small organizations.
Role culture Instead of key central figures controlling and influencing the organization
rules and procedures control the organization, organizations structure defines how the
line of authority and responsibility of each functions of the organization and its managers
function. While this type of culture is well suited for a large organization because of is its
rules and guidance (no confusion on authority) for an organization who follows this
culture can be slow to change because of its internal bureaucracies.
Task culture Task culture put emphasis on not the decisions that have to be made and
who does that but more likely the task at hand and how to accomplish it therefore in
these environments there are no clear cut leaders. Because this culture is more result
oriented and have a democratic atmosphere it goes hand in hand with matrix structured
organizations.
People culture In people culture individual employees are the central point of the
organization meaning In this culture environment the person (employee) who brings the
valued skills, expertise and talent to the organization and the task at hand are the once
who makes the important decisions while the managers of the organization are lower in
terms of impotence to the organization for example in a university professors and
lecturers are more important to the university than the management.

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Culture of Google Inc.

Compared to Microsoft Google is a younger a company but already after 16 years Googles
organizational culture is very strong.
Google hires people that understands
and represent their companys
values/ethics, the employees they hire
also have the intense desire for
unlimited amounts of information and
creativity. This desire allows the
companies employees to work towards
the same goals and receives over 1,300
applications a day. Googles hiring policy
is aggressively non-discriminatory and
favored ability over experience.
Googles culture is a combination of things. It is ethical, customer-responsive and spiritual.
Google encourages its employees to be creative in problem solving which sometimes calls for
risk taking. These employees are allowed just
enough freedom in their jobs that they do not
take it for granted and this keeps them on
ethically good grounds, The Google
employees also have a sense of team so this
encourages them to work together to achieve
goals rather than compete against one
another, this in return prevents unethical
behaviour and time wasted on internal
disputes also their corresponding
ramifications like loss of productivity and team
moral.
Google maintains a small company feel. Its
commitment to innovate depends on everyone being comfortable sharing ideas and opinions.

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Culture of Microsoft Corporation

Microsoft culture standards could be traced back to the companys start-up days when Bill
Gates, Paul Allen and four programmers
created a safe haven of innovation and hard
work.
When Microsoft was founded and in its early
day Microsoft culture was very simple and
had very transparent hierarchy at workplace
everyone is treated equally and ideas were
exchanged. But with the time passing with its
success and expansion Microsoft couldnt
hold on to that type of culture unlike Google
which to this day managed to keep that small company feel among the employees.
Regardless Microsoft is considered by many in
the technology field to be an ideal place to
work. The company has won several awards
for innovation, for their commitment to diversity
and for their flexible work methods
arrangements at work. Microsoft has always
been a leader in the market with regards to its
compensation. With a total strength of about
117,354 employees worldwide and a total
revenue of exceeding $93 Billion. It is one of
the best well known technology companies in the world.
Employees at Microsoft are recognized as the intellectual fuel and are provided with various
benefit plans and resources which are designed to retain them in the company. As a technology
company Microsoft offers a lot of flexibility to its employees. On the other hand working in
Microsoft has seen better days when Steve Ballmer was the CEO the company was in stagnate
when it comes to new innovative ideas and products and employees were soon became people
who just maintained the current products and was looking for a breakthrough from the top
management.
When Satya Nadella took the CEO position again the culture of the company slowly turned into
a company which listens to its employees this is mainly due to Satya Nadella was a former
employee with working experience of 22 years in the company.

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Relationship between an organizations structure and culture and how it can

have an impact on performance of the business (1.2)
A companies structure and culture can be separated in a sense these two aspects of the
company are very much interdependable with each other.
In the earlier stages of organization the structure of the organization is more important because
in the formation period of an organization there is no clear cut culture but as the organization
progress from the organization itself the culture of the organization is formed and adapted on its
own unique atmosphere.
Since the structure governs how the organizations
employee roles and responsibilities are allocated
and how they can be evaluated and rewarded, also
the structure of an organization determines the flow
of communication between different levels of the
workplace hierarchy this communication aspect
can be also influenced by its culture for example
Google Inc. because of its culture its not
uncommon site to see the CEO of the company
(Larry Page) working alongside with his employees
in the workplace (Googolplex).
Different organizational structures can have different effects on the organizations culture its
performance if we take as an example the matrix organizational structure, it has a bit different
culture and different way of communication in it. In matrix structures the managers are not
having the same kind of authority as of a functional structure where the key decisions are made
by the manager because of his role in the workplace but in a matrix structure the field (function)
experts makes the decisions if this is persistent throughout the organization and the top
management decides to change its approach to managing the divisions regardless of the culture
that has been set forth by the matrix structure systems its going to affect the company
performance gravely.

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Factors that affect individual behaviour at work (1.3)

Personality
Personality is the total pattern of characteristic ways of thinking, feeling and behaving that
constitute the individuals distinctive method of relating to the environment (Riley, 2011).
Personality of an employee can be categorized and one way to do it is evaluate the employee
under The Big Five Factors.
The big five factors

Neuroticism Measures the different ways people have reacting emotionally to difficult
situations and stress.
Extraversion This describes how energetic and enthusiastic a person is especially
when dealing with people.
Conscientiousness This describes how well a person is organized, motivated and
systematic a person is in his life and when pursuing goals.
Agreeableness This describes a persons attitude towards other people.
Openness to new experiences Describes an individuals pro-activeness towards
seeking and appreciation of experience for its own sake.

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Perception
Perception is a process by which individuals give meaning to their environment by organizing
and interpreting their sensory impressions.
There are three factors that can influence the perception of a person
The perceivers personal characteristics Interests, expectations and biasness.
The targets characteristics Distinctiveness, contrast between the target and the person
whos perceiving and similarities.
The situation Place, time and location can draw attention from or distract attention from
the target.

Attitude
Attitude is a mental and neural state of readiness exerting a directive or dynamic influence upon
the individuals response to all objects and situations with which it is related (Riley, 2011).
Components of an Attitude
Cognitive component These are the beliefs, opinions, knowledge or information held
by a person.
Affective component This is the emotional or feeling part of an attitude.
Behavioral component- This the initial intention to behave on action in a certain way.
Ways of how work can influence attitude and vies versa
Attitude towards work - Individuals feelings and standpoint on working, wok conditions,
colleagues and he organization working for.
Attitudes at work Attitude about other people, politics and other non-work factors like
class, lifestyle, religion, age and sex.

Learning
Learning is the process of acquiring, though experience, knowledge which leads to changed
behaviour (Riley, 2011).
Learning is any relatively permanent change in behaviour that occurs as a result of experience.
There are two theories of learning
Operant Conditioning - In this theory it describes the behaviour is a function of its consequences
and is learned though experience.
Social learning In this theory it describes social learning is done by individuals learning
through their observation of others and through their direct experiences.

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LO2 Different approaches to management and leadership

Effectiveness of different leadership styles in different organizations (2.1)
Leadership
Leadership is the process of inspiring people to do their best to achieve a desired result.it can
be also defined as the ability to persuade others willingly to behave differently. The function of
team leader is to achieve the task set for them with the help of the group (Armstrong, 2009).
A leader is someone who can influence others and who has management authority and
leadership is what the said leader do, basically its the process of influencing a collection of
people to achieve goals.
Leadership Styles
Autocratic Leadership This style of leadership resembles a
dictator, these leaders do not share their power of decision
making and will not care much about organizations social
norms he or she will fire someone without any notice. Most of
the time rewards will be given in as financial rewards and
punishments are often warning letters, this style of leadership
may not be perfect for all but when it comes to a situation
where control over the employees are essential this style is very effective.
Bureaucratic Leadership In this leadership style its all about the leader making sure
that everyone is abiding and doing work according to the rules, theirs a clear difference
between the leader and the employee but unlike in autocratic leadership the employees
have the chance to progress through the levels of the organization. This kind of
leadership styles are highly used in office environment.
Democratic Leadership In this style of leadership the
employees are also having the power to make decisions and
also employees are self- motivated to do their tasks and the
leader doesnt always intervene in their work. In democratic
leadership its more of an educational role than a controlling
leadership role, this leadership style is based used where
creative thinking is much more involved.
Laissez-Fair Leadership In this style of leadership the leader is giving little to no
guidance for the leaders subordinates so its up to the
employees to come up with their own goals and objectives.
Even though this style of leadership promotes trust among
employees to carry out their tasks the lack of guidance
sometimes can hinder the performance of the team.

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Leadership style in Microsoft Corporation

In February, 2014 Satya Nadella took over Steve Ballmer as CEO of the company after which
Satya Nadella with a 22 years of experience in the company has done some changes.
Satya Nadella is following a democratic leadership style more or less, earlier when Steve
Ballmer was CEO he (Nadella) was not happy with the way Ballmer was guiding the company,
Nadella was saying in some areas Microsoft has dropped its competitive edge. So when
Nadella came into power he revamped all the projects which were lagging behind but he was
always careful enough to stay away from the teams who gives the creative outputs to the
company so he doesnt hinders the process. Nadella being a unique combination of technology
knowledge and the business knowledge gave both the developers and the higher management
a good communicator between the two some say he will become the next Bill Gates.

Leadership style in Google Inc.

In September 1998 when Google was founded by Sergey Brin and Larry Page, Larry Page have
been taking the role of CEO of the company to this day hes still the CEO.
When it comes to business side of the company both Sergey and Larry take Autocratic
approach but when it comes to the company and its employees Larry page takes a democratic
and sometimes laissez fair style of a approach to lead them, One of his main traits is that hes
always on the lookout for if hes being autocratic because hes thinking is for a company like
Google ideas need to be shred and natured, but this doesnt mean he doesnt have any control
over them in order to have a active role in the management of google Larry asks employees to
forward him a 60 word updates or new ideas on their current projects so he can be constantly
be involved and have good idea of progress thats happening and possible new ideas that they
can put in to work.

How organizational theory underpins the practice of management (2.2)

Management Theories
There are 3 main approaches to management theories
Classical Approach
Behavioral Approach
Contemporary Approach

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Classical Approach

Classical
Approach

Scientific Genaral
Manageme Administrat
nt ive
Scientific Management
Published in Principles of scientific management (1911) by Fredric Winslow Taylor (Father of
Scientific management).
F.W.Taylers scientific management revolves around on 4 points
Developing a science for each element of an individuals work.
Scientifically select, train, teach and develop the worker.
Cooperate with the workers to ensure that all work is done in accordance with the
principles of the science that has been developed.
Divide work and responsibility almost equally between management and workers.
General Administration or Classical Administration
Henri Fayol in 1916 published a 14 principles of management.
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual interests to the general interest
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability tenure of personnel
Initiative
Espirit de corps

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Max Webers Bureaucracy theory

Weber believed in a management system were its more formalized, firm structure of
organization and he called it bureaucracy. This non-personal view of organizations followed a
formal structure where rules, formal legitimate authority and capabilities were characteristics of
a proper management system.
Characteristics of bureaucracy
Division of labour Jobs broken down into manageable routine and well-defined tasks.
Authority Hierarchy Job positions organized in an order with clear chain of command.
Formal Selection People are selected for jobs based solely on their technical
qualification.
Formal rules and regulations System of written rules and slandered operating
procedures.
Impersonality Constant use of rules and regulations regardless personalities.
Career Orientation Managers are career professional not owners of departments they
manage.

Behavioral Approach

Behavioral
Approach

Organizatio
Hawthrone
nal
Studies Behaviour
Hawthorne Studies
This is an experiment done from 1924 to 1932 on Western Electric, USA the studies were
conducted to see if outside factors such as lightening of the workplace or sounds of the working
place can have an effect on employees productivity.
The conclusion is social norms, group standards and attitudes more strongly effect employee
output and work behaviour than do monetary incentives.

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Contemporary Approach

Contempor
ary
Approach

System Contingenc
Approach y Approach
System Approach

System approach consists of the following

Inputs Raw Material, Human Resources, Capital, Technology, Information
Outputs Products and Service, Financial Results, Information, Human Results
Feedback After getting a output we can get feedback about the output and adjust
accordingly.
Process Employee work activities, Management activities, and technology/operations
methods.
Environment The external environment can have effect on all of these stages. For
example in a production company if the suppliers go on strike the entire company will get
effected by it.
But in this approach there are some implications
Good management and communication between the stages is crucial for proper
functioning of the entire organization.

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Decisions taken in one area of the organization will have an effect in other
areas of the organization.
In system approach organizations are not self-contained so must adapt to changes
arising from the eternal environment.
Contingency Approach (Situational Approach)
Contingency is all about situational approach to management so theres no exact way to
manage an organization, each and every organization is different from each other and have to
face different problems so in an organization using contingency approach the manager have to
find a best fit between the demands of
The tasks at hand
The people (employees)
The environment (external factors)
There are different contingency variables to consider when managing in accordance with the
situation
When the organization size grows, with it the complexity of the organization also
increases (problems) so for managers they should be able to handle and coordinate
problem solving.
Routine technologies require organizational structure, leadership styles and control
systems that differ from those required by customized technology.
Environmental uncertainty can also be a huge factor to consider when we are talking
about contingency approach management, whats good in a stable and predictable
environment may not be totally inappropriate in a rapidly changing and unpredictable
environment. Below are the important factors to look after in the environment for an
organization.

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Different approaches to management used by organizations (2.3)

Management approaches used by Microsoft Corporation
When Microsoft was managed by its co-founder bill gates, the organization was managed in a
way that the company can find a good work culture in the organization and a culture that
rewards innovations, for these reason alone the companys recruitment policies were wide
opened for action oriented employees. In Bill Gates time only the concept of making the
workplace like home was started, even though now Google has perfected it in the present day.
Because of Microsoft rapid growth as a successful company the company grew far and wide in
an instance with it came a complex unmanaged bureaucracies, even at early ages of the
organization they suffered from bad bureaucracy.
With Steve Ballmer the company came to a stagnant state compared to competitors, when his
predecessor Bill Gates hands him over the company the company was leading on all areas of
the company and had a big worldwide monopoly on technology. He was not quick enough to
react for external environment factors such as the rise of other technology (Company) like
Facebook and Google. Now Satya Nadella is recovering the company after him (Steve) hes
(Nadella) reducing the bureaucracies that was holding back the employees from doing their job
properly and we can already see some results with new products like HoloLens from Microsoft.

Management approaches used by Google Inc.

Compared to Microsoft Google is a younger organization but Google was also subjected to a
huge leap from its humble beginning to its present day status but unlike Microsoft google
managed to keep it bureaucracies to a minimum by their approach to this problem the founders
laid the foundation of the googles culture in a way that even though google is a big company it
feels like a small organization. They did it with effective use of communication, division of work
and unity of command.
In Google Inc. employees are given the 80/20 concept, its a concept that manages employees
time 80% of the wok time is dedicated for their respective work and the other 20% is for them to
tinker with their own ideas and innovations, even in the 80% of the time given for developers
they have the freedom within their groups to figure out targets and objectives. Management of
Google from an earlier stages of the company has made jobs unique to their respective projects
and have carefully developed each jobs elements.

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LO3 Understanding ways of using motivational theories

The impact that different leadership styles may have on motivation in
organization and in different periods of change (3.1)
A leader is a big influence and contributor to the motivation of an organization, leadership of an
organization can change a companys culture its structure so in return will change the motivation
of employees. Different styles of leadership can have different effects on the employee
motivation. For example
Democratic Leadership In democratic leadership the employees are also contributing
to the decision making process and gets them involved into the matter individually so
they get motivated to contribute, they get more motivation specially when its involving
department issues.
Autocratic Leadership in autocratic leadership motivation of the employee can go both
ways, given that the leader is taking the right decisions consistently and have gained the
trust of the employees then they are motivated to work under that leader but if the leader
is making mistakes and taking dangerous risks then employees will get demotivated to
work under that leader.

Organization periods of change

There are four changes in organization and we can consider them as stages of an organization.
Formative Period This is when a new organization is just founded or started. Although
there is a founding vision to why the organization was started, changes of creativity and
discovery are needed to overcome obstacles and accomplish breakthroughs.
Rapid Growth Period Leadership and coordination are added to sustain growth and
solidify gains. Change is focused on the mainstream business.
Mature Period The growth now levels off and changes are only needed to maintain
established markets and ensure maximum gains are achieved.
Declining Period Many organizations this means down sixing and reorganization or
restructuring. Changes must include tough objectives and compassionate
implementation. The goal is to get out of the old and into something new. Success in this
period means that the four periods start over again (Riley, 2011).
When it comes to different stages in the period of an organization the leadership style taken by
the leader can have an impact on the whole process of change. For example if a company is on
the formative stage and the leader is taking a autocratic approach to manage and lead the
employees it wont be a success because at the formative stage the company itself is finding its
purpose and nothing is standardized yet so input of the employee s crucial in this sage
otherwise hers going to be a never ending disputes and clashes between the employees and
the management.

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Application of different motivational theories within the workplace (3.2)

Motivational theories
Motivation
Motivation is the process by which the behaviour of an individual is influenced by others,
through their power to offer or withhold satisfaction of the individuals needs and goals (Riley,
2011).
Motivation is the process by which a persons efforts are energized, directed and sustained
towards attaining a goal.
Motivational theories are mainly threefold

Motivatio
n
Theories
Newer
Content Process
Approach
Theories Theories
es

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Content Theories
Maslows hierarchy of needs theory

In this theory Maslow categorized five needs of levels from lower to higher in order, for person
first they have physiological needs as the basic need meaning things like food, clothing and
shelter and there after safety, love, esteem and lastly self-actualization at this level all the below
stages are fulfilled, now the person is truly happy and satisfied.
In this theory there are three major attained needs that are major motives in work.
Need for achievement - The drive to excel and succeed at what you do.
Need for power The need to influence the behaviour of others.
Need of affiliation The desire for interpersonal relationship.

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McGregors Theory X and Y

In this theory employees are categorized into two groups X people and Y people

McGregor is saying that for X type of people their needs to be constant supervision and leaders
have to be authoritarian in order for them to work properly. For Y type of people are self-
disciplined so no need of constant supervision and takes less effort to get their full potential.
Herzbergs motivation hygiene theory
This theory describes a system where employee job satisfaction are effected by either hygiene
factors at work place or motivator factors at workplace.
Hygiene Factors
Company policies and administration
Supervision
Working Conditions
Salary
Interpersonal Relations
Status
Job Security
Motivator Factors
Achievement
Recognition
Work itself
Responsibilities
Advancement
Growth

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Process Theories
Expectancy Theory
In 1964 Victor Vroom worked out a formula for assessing and measuring peoples motivation,
based on expectancy theory Vroom suggested that the strength of an individuals motivation is
the product of mainly two factors (Riley, 2011).
The strength of his preference for a certain outcome Valence
His expectation that the outcome will in fact result from a certain behaviour
Subject probability (Expectation)
So the Equation looks like this
F=V*E

Force of
Expectati
Motivatio Valence
on
n

Goal-Setting Theory
This theory proposes that setting goals that are accepted, precise and challenging yet
achievable will result in higher performance than having no or easy goals.
Benefits of participation in goal setting
Increases the acceptance of goals.
Provides for self- feedback that guides behaviour and motivates performance.
Fosters commitment to difficult, public goals.

Reinforcement Theory
Reinforcement theory assumes that a desired behaviour is a function of its consequences, is
externally caused, and if reinforced its more likely to be repeated. furthermore positive
reinforcement is preferred if its a behaviour beneficial for the organization and you want it to
continue and when its the opposite like when a undesirable behaviour is shown ignoring it will
be much more effective than punishing it.

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Equity Theory
This theory proposes that the employee perceive what they get from a job situation (outcome) in
relation to what they put in (inputs) and then compare their inputs outcomes ratio with the inputs
outcomes ratios of relevant others.

Distributive justice The perceived fairness of the amount and allocation of

rewards among individuals. (Who received what)
Procedural justice The perceived fairness of the process use to determine the
distribution of rewards. (How who received what)

New theories of motivation

Mccobys Theory of social character
This theory explores the dominant values that determine motivation according to Mccoby.
Expert
Helper
Defender
Innovator
Self-developer

Costa and McCraes five factor theory

In this theory Costa and McCrae describes a persons personality is a combination of five traits.
Openness to experience
Conscientiousness
Extraversion
Agreeableness
Neuroticism

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Motivation Theory on Google Inc.

When it comes to Google they offer some usual benefits like flex spending accounts, dental
benefits insurance, and vacation packages however Google is better known for some unique
and more than attractive perks and benefits which just serve to show the extreme lengths the
company goes to make its employees happy and motivated here are some of the remarkable
benefits (Martin, 2014).
Lunch and dinner is available free of charge, in addition an assortment of delicious but
healthy meals are available every day, prepared by gourmet chefs.
Reimbursement of up to $5000 for employees for legal expenses.
At the Googolplex (Google Head Office), theres an onsite doctor and free fitness center
and trainers available (Microsoft.com, 2015).

Motivation Theory on Microsoft Corporation

In Microsoft employee motivation is done more of Elton mayos way, Microsoft gives monetary
rewards and incentives but they didnt make them their main source of motivation for the
employees here are some areas which they provide benefits and perks.
A culture of wellness and balance Microsoft is widely known for offering a one of the
strongest and comprehensive compensation and benefits package.
Career Development Employee career and professional development is a partnership
between the employee and hes or hers manager and its reinforced by Microsoft
numerous career resources.
Same like in Google Microsoft also provides it employees gyms and fitness centers. On
campus retail shops and sport fields and on campus cafes (33)

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Evaluating the usefulness of a motivation theory for managers (3.3)

For managers motivation is about getting extra levels of commitment and performance from
employees (Riley, 2011).
Mangers can use these tools to motivate the employees and there are two ways to motivate
By providing them with
Monetary rewards By giving employees a target to achieve or by contributing to the
target as a manager he or she can give them an incentive, That in return will give the
target achieved employees to carry on their good work and the contributed but not
achieved group of employees to try harder next time.
Non-monetary rewards this type of rewards can mean Job enrichment or Job
enlargement.
Job Enrichment is planned, deliberate action to build greater responsibility, breadth and
challenge of work into a job (Riley, 2011).
Job Enlargement as the name suggests, is the attempt to widen jobs by increasing the number
of operations in which a job holder is involved (Riley, 2011).
A manger can provide motivation by these methods and to do that first the manager needs to
identify the needs and satisfaction of hes or hers employees. As an example we can take
Maslows hierarchy theory to see how a manager can differentiate the levels of satisfaction and
needs among the employees.
According to Maslows theory
managers can motivate the
employees by giving them
accordingly a reward from a
approach of physiology, safety, love
& belonging, knowledge, self-
esteem and self-actualization.
For an example for a well paid
executive its more effective to give
him or her the reputation and
exeptancy they seek from the
workplace rather than giving them a
raise.

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LO4 Understand mechanisms for developing effective

teamwork in organizations
The nature of groups and group behaviour within organizations (4.1)
Groups
A group is a collective of two or more people interacting and interdependent individuals who
come together to achieve a specific goal.
Initially there are two types of groups Formal and Informal.

Formal Groups
Formal groups are assembled by the organization itself with a proper structure and have
specific responsibilities/goals to follow, Leader of the group is selected by the organization
generally within the group.
There are four types of formal groups.
Task group - They are assembled for a specific task so the life time of the group directly
depends on the groups ability to complete its task at hand after that they disbands from
the group.
Command group A group that are determined by the organization chart and composed
of individuals who report directly to a selected manager.
Cross-Functional group This group have people comprising from different
departments, they have a common goal to work towards. While this can bring new fresh
ideas into solving problems, in the starting stages of the group there can be some
confusion among group members and its functionality.
Self-Managed groups - Groups that are essentially independent and in addition to their
own tasks, take on their normal duties (an employee working in HR is also in a group
that brings innovative ideas to solve employee workplace problems).

Informal Groups
Informal groups are formed merely for the purpose of employee social needs and there can be
multiple groups like these, these groups have an influence on how the organizations culture is
shaped. These groups can lead to indirect workplace productivity boost since the social network
is helping each other.
Stages of a group
Forming This the beginning stage of the group and group members are still getting
acquainted with each other, group members try to fit in with the groups own culture and
way of working.
Storming - In this stage group members are comfortable enough to raise questions
about how the group works, their objectives and even leadership. So in this stage theirs

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a higher chance for conflicts in the group but at times conflicts may lead to
innovative ideas that help either the team to function better or to achieve its objective.

Norming In this stage most of the conflicts are settled and the group becomes one
cohesive unit, this is when the group agrees on new and improved norms and
regulations that suits them better. In this stage the group also have a leader that is
accepted by everyone.
Performing By this stage everything is set and everyone is comfortable, although
earlier they were aiming for group goals, the system was not 100% efficient because the
groups attention was mostly on getting their norms, culture and work-environment
perfected so now that all these things are settled now the group can focus on its goals.
Adjourning In this stage the group have live out its life time and purpose, so now the
group is not functioning efficiently most of the time group members are procrastinating
and as a group they start to get dispersed.

Group decision making

Group decisions are made in as a collective by putting together group of individuals ideas and
thoughts on the matter (Problem at hand) then coming to a final decision. When it comes to
group decision making how the group approaches to a problem will decide its speed,
effectiveness and its acceptability of the end decision among the group members.
Factors that can affect the speed, effectiveness and acceptability of the end decision in the
group (Riley, 2011).
Does the Group allow itself to be persuaded by group leader?
Does the group give way to members who are most qualified to make certain decisions?
Does the group collect information and ideas from all its group members but the decision
is made by the group leader or the most qualified member on the subject matter?
Does the group collects information and ideas from all its members but the decision is
taken by a general consensus or agreement, however much time that takes.
Does the group collects information and ideas from all its group members but the
decision is taken on a democratic vote?
Does the group keep any uncooperative ideas or contradictory information quiet to allow
consensus to prevail?

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Does the group insist on dealing with uncooperative ideas and contradictory
information even if it takes longer time period to reach a decision?

Advantages of group decision making

Since a group have more than two employees the information and the knowledge they
generate is greater than a single person.
In a group when solving a problem the group can come with diverse solutions and
alternatives.
When a group comes to a final decision that decision is thoroughly discussed and
argued between the group members so it has a good acceptability.
Disadvantages of group decision making
In a group the more members there are the more time it takes to make a decision
because of this reason groups are more time consuming.
When a group takes votings for decision making pressure to conform can take effect
and will lead to misleading and ineffective solutions or ideas.
When a group have a high authority figure or highly influential people the group tends to
accept their ideas or solutions without question.

Factors that promote or inhibit the development of effective teamwork in

organization (4.2)
Team
A team is a formal group established to achieve particular objectives (Riley, 2011)
Team is a collective of people working towards a specific shared goal by bringing together their
collective knowledge and skills. In a team synergy is very important in order for them to work at
their best.

Types of teams
Problem-solving teams Employees from the same department and functional area who
are involved in efforts to improve work activities or to solve specific problems.
Self-managed work teams These types of teams operate without any supervision or
authority of a manager and solely responsible for completing a whole work process or a
segment of it.
Cross-functional teams Cross-functional teams have experts/specialists working on
various tasks, these experts/specialists are usually from different disciplines of work and
come together to use their in-depth knowledge about their subject to complete a task or
to solve a problem.
Virtual teams Teams that use computer technology to connect otherwise physically
dispersed team in order to perform tasks and achieve goals.

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Team Building
When we are building up a team we can focus on 3 main areas.
Giving the team a sense of team spirit in other words a sense of their identity as a
team.
Making the team members loyal to the team.
Encouraging the group to share their work and work together cooperatively towards
team goals and objectives.
When it comes to Microsoft Corporation being a large tech organization with different platforms
of products they have all sorts of teams in the company problem-solving teams, cross-functional
teams and virtual teams. For an example Microsoft research department itself have several
teams most of them are cross-functional teams but as a whole unit with all the countries
included they are a one big virtual team. Station Q is a dedicated team for Microsoft Research
department, located in university of California, Santa Barbara, this teams work focuses on
Quantum Computing. This group is cross-functional group consisting of experts of theorists and
experimentalists from mathematics, physics. By giving this team a purpose (Quantum
Computing) and naming them Station Q this team stand out from the rest of the research
department because of these they are more focused and made a considerable progress in
Quantum computing.
For Google Inc. as well they have their research department but again we see a research team
separately from the rest focused on something unique that requires the best in the department
and its called Google X this team includes one of the founders of the company Sergey Brin,
One project at a time with focused team efforts they bring us futuristic solutions for the world as
a result of this unique team we here in Sri Lanka got the chance to get involved in their newest
Success Project Loon, Project loon is ambitious project that one day will give internet access to
the whole world.
Effective and Ineffective teams
Quantifiable factors
Effective team characteristics Ineffective team characteristics
Low rate of labour turnover High rate of labour turnover
Low absenteeism High absenteeism
High output and productivity Low output and productivity
Team targets achieved Team targets not achieved
Qualitative factors
High commitment to the achievement of team Little interest and little understanding on
goals achieving team goals
Clear understanding of the role of each team Confusion and uncertainty about the role of
member each person within the group
Ideas are shared among the team Ideas are not shared among the team
Trust and open communication between Mistrust between group members and
members suspicion of leaders

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Motivation and ability work in the Always needs he direction of a leader to
leaders absence control work

Impact of Technology (4.3)

In Microsoft Corporation and Google Inc. technology as their business (product) they have been
the early adapters of technology into their work environment for teams they have been greatly
using technology to fill up the gaps in their team performance (output).
Both Microsoft and Google are giving the chance for the employees to work from home
(Telecommute). This technology has many effects on team performance.
This option gives the team members to work from their homes at their convenience even
if they are in a another country that may bring up the creativity level and the work they
do is much more organized but as a team their loyalty and sense of team identity will
fade away, sometimes the team have never met with each other face to face and that
may lead to inefficiency on the work flow.
Another thing that Microsoft and Google shares is a very effective team communication systems
that they have.
Project management softwares are available in both companies with the same basic
functionality but unique on its own ways, this are essential tools that they get from the
day they started working. From these tools the team gets a broader and clear idea of
whats happening on the project and what stage are they in and the work load is shared
even and with this kind of speed in communication team members can be very efficiently
contribute to the team.

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Conclusion
Even though companies like Google Inc. and Microsoft Corporation is in the same kind of fields
they differ from how they operate and their differences at times gave them a tactical advantage
but at sometimes they became their weakness.
In both companys leadership changes made big impacts to the better and worse, in the case of
Google Inc. the young company is still in control with the founders and their close knit
organization structure is always makes sure that they wont be slow to respond to their
environment changes that might happen.
Microsoft Corporation with its CEO changes learned the importance of leadership and
importance of an effective organizational structure, With Steve Ballmer the company became
inefficient because Steve Ballmer was focused on acquiring new brands and subsidiaries due to
his arrogance and egotism he acquired Nokia by spending $ 7.2 Billion in September, 2013 to
this day is not making a profit this decision has made the Microsoft employees worry and lose
their loyalty to the company.
When it comes to managing an organizations and making decisions how they can affect the
organization behaviour aspects should be considered always. Organization behaviour can have
a great effect on the organizations employees in return will have an effect on the organizations
performance.

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Armstrong, M., 2006. A Handbook of Human Resource Management Practice. 10th ed. London,
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Armstrong, M., 2009. Armstrongs Handbook of Human Resource Management Practice. 11th
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Google Inc., 2015. Google.com. [Online]
Available at: http://www.google.com/about/
[Accessed 20 June 2015].
Martin, 2014. Entrepreneurial-Insights. [Online]
Available at: http://www.entrepreneurial-insights.com/google-way-motivating-employees/
[Accessed 06 07 2015].
Microsoft.com, 2015. Microsoft.com. [Online]
Available at: https://careers.microsoft.com/benefits
[Accessed 07 07 2015].
Pippa, R., 2011. Human Resources Management. 1st ed. New Delhi: Viva Books Privet limited.
Riley, P., 2011. Organisations and Behaviour. 1st ed. New Delhi: Viva Books.

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