Organisations and Behaviour

Factors responsible for Effective Organization structure

Introduction to Organization Behaviour

Organizational behaviour is linked with the study of both individual and group performance within the organization. In every business enterprise, behaviour of staff members differ from each other and respond on the basis of internal environment of the firm. It is regarded as an interdisciplinary field that takes into consideration like sociology, psychology, management and communication. Furthermore, the structure and culture of firm developed by management directly affects the overall performance of employees within workplace.

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In short, they allow staff members to carry out operations in the company as per their requirement but in case, if structure formed by the top authorities acts as hurdle then it becomes difficult for employees to carry out their operations. Furthermore, for every business enterprise, to operate efficiently in the market, it is required to adopt appropriate leadership style so that employees can be managed in proper way and this ultimately increases the business performance. In the present report, organization chosen is Mercury printing and Packaging that is a privately owned firm and employs over 20 staff members who are highly experienced and have full knowledge about the work. Various tasks have been covered in the report which includes structure and culture of company, factors influencing individual behaviour at work etc.


1.1 Organizational culture and structure within Mercury print and packaging

Mercury print and packaging carries out business operations on very small basis due to which management has adopted divisional organizational structure where different departments have been formed on the basis of function, product, project etc. (Kippenberger, 2002). This type of structure is appropriate for the firm as it becomes easy to carry out the operations for every department and in turn, acts as a development tool. Employees have been assigned with duties on the basis of department such as marketing, finance, production etc. Main advantage of adopting this type of structure is that it enables staff members to coordinate with each other and leads to rise in business efficiency. On the other hand, Mercury print and packaging has adopted club organizational culture where firm is very particular about the staff members that are being recruited by the firm and every individual is hired on the basis of knowledge, experience etc. Due to this basic reason, firm is having trained professionals that carry out all the operations efficiently.

On the other hand, organizational structure and culture of Falconer print and packaging is different from Mercury (Kortmann, 2012). Falconer also carries out its operations in UK in same sector and is large sized organization. Firm has adopted line and staff organizational structure where staff department provides line people with advice and assistance in the specialized areas. Main advantage of adopting this structure is that higher flexibility is present which allows the workforce to take initiative in favour of the firm. Furthermore, vertical relationship is present between different levels and three types of specialized staff is present such as service, advisory and control. On the other hand, Falconer has adopted tough guy culture where performance of staff members are reviewed timely and management takes feedback from them at regular intervals. Further, team managers are appointed to discuss the queries and this increases satisfaction level of the workforce. So in this way, it can be said that structure and culture of Falconer is more effective as compared with Mercury.

1.2 How relationship between structure and culture can affect organizational performance

It is a well-known fact that structure and culture of the organization are interlinked with each other but it is required for the firm to adopt a formal structure so that targeted goals can be accomplished in appropriate manner. Furthermore, relationship and structure of Mercury print and packaging affects overall business of the company as presently, the structure formed is based on departments due to which employees can easily coordinate with each other and this increases the performance of organization in the market as well (Martin, 2001). Furthermore, culture of the enterprise totally focuses on the knowledge and experience of staff members and they are recruited on the basis of these criteria that is being set by the management. So in short, it can be said that culture and structure of the organization allows employees to carry out operations on their own and in turn, increases the business performance as well. Due to effective culture and structure, all the employees are highly satisfied with the working environment and prefers to take initiative for the welfare of firm. Relationship between structure and culture affects the business performance of Mercury printers as it allows employees to take active participation in the affairs of company and increases overall strength of the firm.

1.3 Factors which can influence individual behaviour at work

Various factors are present that can affect individual behaviour at work and it is necessary for management to consider all such factors so that its business performance can improve in the market. Some factors are discussed below:

Work culture: It is regarded as the most crucial factors that are affecting the performance of individuals within firm as in case, if staff members are not comfortable at workplace then job satisfaction will be declined and they will not prefer to take initiatives for the welfare of enterprise. Furthermore, Mercury printers has adopted appropriate culture in its workplace due to which staff members are satisfied and happy with the working environment (Robbins, Judge and Sanghi, 2001). So, this has positive impact on the performance of firm and it increases overall capability to face the challenges that are present in the market.

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Effective communication: It is also considered as an important factor that is affecting the individual behaviour at workplace as managers must effectively communicate with team members and proper information must be shared to boost their morale. Managers that are working in Mercury printers understands the importance of keeping team members satisfied and due to this reason, their motivation level is quite high.

Relationship at work: In organization, it is necessary that staff members must have friends with whom they can share their experiences and other important information (Salas, Bowers and Edend, 2001).

So, this influences the behaviour at work and if relationship is strong with one another then staff members will like their work and vice versa. In mercury printers, employees are having healthy relationship with each other and presence of proper support increases the business performance as well.


2.1 Effectiveness of different leadership styles

Leaders play a significant role in the organization as they have duty to manage all the team members in appropriate manner so that they can carry out business operations with full motivation. Different styles are present that leaders adopt in organizations and which has impact on the performance of company as well (Armstrong and Stephens, 2005). Leadership styles are as follows:

Autocratic: In this type of leadership style, leader holds responsibility to take major decisions and employees are not allowed to take part in the major affairs. Furthermore, leaders are generally confident and comfortable with the decision making responsibility. Presently, leader present in Mercury printers has adopted this leadership style due to which staff members are not allowed to take part in the decision making process and this decreases the job satisfaction as well.

Democratic: This type of leadership style is just opposite of autocratic where all the employees are allowed to take part in the decision making process and managers encourage them to be a part of the major affairs. Responsibilities are delegated to the team members with an aim to increase their motivational level (Salas, Bowers and Edend, 2001). So, this type of leadership style is more effective as compared with autocratic one where employees that are working in mercury printers are not involved in taking decisions and they have to follow the rules that are being developed by the leaders.

So, by comparing these two leadership styles, it can be said that democratic leadership style is more effective where staff members are given with high importance within the workplace and increases performance of the organization in market. Mercury printers must adopt this leadership style to increase the satisfaction level of its customers.

2.2 How organizational theory underpins the practice of management

Organizational theory plays the most significant role as it possess capability to affect overall performance of company in the market where operations are being carried out. Classical organization theory states that traditional firms have hierarchical structures such as matrix where staff members report to one manager for disciplinary matters. Furthermore, managers rely on the organizational structure to channel work to the appropriate department. So, this supports the activities that are performed by the management in organization (Hareper and Pitt, 2004). Different organizational theories are adopted by every firm by keeping in view their structure and culture and in turn, affects overall performance in the market. Contingency is another organizational theory where firm adopts their environment in the absence of formal structures. Furthermore, the issues faced by company are resolved on the basis of knowledge and experience of managers. So, this also shows the practice of management as they carry out activities on the basis of features of organizational theories. Behavioural organizational theory is also effective where management totally focuses on the behaviour of employees in order to assess whether they are satisfied with the working environment or not. This theory is based on the assumption that staff members complete the work if suitable environment is provided to them by the firm.

Further, this theory is adopted by Mercury printers where major focus is on satisfying the needs of staff members by providing fair environment to them. So, in this way, organizational theory underpins the practice of management (Kelloway and, 2003).

2.3 Two management approaches used by the organization

Various approaches to management are present that are used by different organizations in order to perform better in the market. Such approaches are discussed below:

Bureaucratic approach: This approach focuses on the authority structure and description of the business enterprise. Bureaucratic approach is based on practice and experience of managers where principles are being developed (Lee and Yu, 2004). This type of approach has been adopted by company like Mercury printers where main stress is on education and training of its staff members. In this type of approach formal structure is adopted by firm to carry out operations of the firm.

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Scientific management: It is another type of management approach that is adopted by Falconer print and packaging which is operating in the same sector in UK. This approach is linked with knowing exactly what individual wants to do and it is seen whether they do it in the best and cheapest way. It takes into consideration the several elements such as job analysis, scientific recruitment and training etc. Main advantage of adopting this approach to firm is that it encourages management to adopt one best way for doing this job.

So, these are the two approaches to management that are adopted by Mercury and Falconer printers but out of these two approaches, Bureaucratic one is effective which is presently adopted by Mercury printers as it focuses on the development of employees through training and they directly prefers to work for the betterment of company (McAlearney, 2006). On the other hand, scientific approach is based on the scientific experiences which are not applicable in the modern era.


3.1 Impact of leadership style of motivation

Leadership style has the direct impact on motivation as it directly encourages staff members to take initiatives in favour of the enterprise. Democratic leadership style is effective enough in order to increase motivation level of the staff members where every employee is encouraged to take part in the major affairs of firm and in decision making process as well. So, this supports in showing the real importance of workforce within company and it acts as a motivational tool (Reis and Pena, 2001). Furthermore, leader play very less role in the major operations and responsibilities that are delegated to the employees so that they can perform better. Therefore, this style is regarded as effective enough to motivate the workforce and increases job satisfaction of employees. On the other hand, autocratic leadership style is not effective enough to increase the motivational level of employees as leaders do not allow team leaders to take part in the decision making process and they have to follow the rules that are developed by leaders. So, this in turn leads to decline in motivation and overall satisfaction level of the employees (Roberts, 2013). Mr S. Siddall has adopted autocratic leadership style in order to manage its workforce but it is not at all effective so company must try to adopt democratic style for its benefit. Main advantages such as increase in business performance, profit can be easily attained through democratic leadership style and it supports to retain them for longer period.

3.2 Comparison of motivational theories

Different motivational theories are present that supports management in boosting the motivational level of its workforce and in turn, increases business performance in the market. Motivational theory such as Maslow's hierarchy of needs is most commonly adopted by every firm in order to increase the motivational level of its employees (Hassall and Joyce, 2001). This theory takes into consideration the needs of an individual such as self-actualization, esteem, belongingness, and safety and physiological. Self-actualization is linked with the need of training, growth and creativity. Furthermore, esteem need is linked with the high status, responsibility and recognition as well as belongingness is related with co-workers, clients, subordinates and teams, safety need is associated with job security, work safety etc. and physiological need is linked with the salary and other basic requirement of an individual. So in order to motivate the staff members in an organization, company consider all these needs and increases the overall performance. On the other hand, two factor theory is also effective which considers hygiene factors which are essential for the existence of motivation such as pay, company policies, physical working condition and job security. Furthermore, motivational factors include responsibility, recognition etc. that increases the encouragement and confidence of people to work. So, Mercury printing must consider these motivational theories for boosting the morale of its staff members (Ulloa, and Adams, 2004).


4.1 Explain nature of group

Group refers to the collection of individuals that are having regular and frequent contact as well as interaction with each other within organization. In business enterprise, nature of group is formal where every employee is assigned with duty and responsibility that has to be carried out. Furthermore, it increases the coordination and workforce has to apply lesser efforts in carrying out the major operations. Basically, two types of groups are present namely formal and informal which vary from each other in every context. In Mercury printer’s employees, both groups are present such as formal and informal where former one is developed by managers and strict rules and regulations has to be followed at the time of carrying out operations (Gibb, 2000). Employees have to behave in formal manner and this sometimes act as hurdle at the time of working in organization. On the other hand, staff members have also developed informal groups in firm on their own and they feel comfortable in this type of group and every individual prefers to take part in it. Friendly environment is present so employees behave informally but management does not prefer this type of group as they consider it as a hurdle in the firm.

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4.2 Factors that may promote the development of team

Many factors are present that direct leads to development of teamwork and it is necessary for the organization to consider this factor to deal with employees in appropriate manner. Communication is the most effective factor that promotes effective teamwork as in case if communication channels are kept open by management then more employees will prefer to take part and through this, firm can obtain more ideas and information which is beneficial. Furthermore, it acts as obstacle when formal chain of command is being present and reduces overall performance of the staff members are they do not prefer to take part in the communication process (Plowman, 2013). Leadership is the next significant factor as in case if democratic style has been adopted then team members will prefer to take active participation in every process and acts as a development tool. On the other hand, hindrance occurs when autocratic style is being adopted due to which staff members are not allowed to take part in the operations of firm.

4.3 Impact of technology on team functioning

Technology plays a crucial role in the functioning of team as it directly reduces the efforts of team members and they can perform better. Advanced tool like E-mail allows staff members to interact with each other and due to this, they can easily communicate with each other (Armstrong and Stephens, 2005). Furthermore, information sharing becomes easy and reduces chances that are linked with the failure in carrying out operations. Groupware supports in carrying out team meetings, collaboration and delegation which is effective enough in boosting the morale of workforce. So in this way, it can be said that advanced technology can improve functioning of the team in Mercury printing.


From the above report, it has become easy to understand the importance of organizational behaviour as it supports in understanding the way in which employees react within the workplace. Leadership style adopted by Mercury printer requires modification as autocratic style reduces the motivational level so company must adopt democratic style for its welfare. Furthermore, organization must adopt motivational theories to motivate its workforce by considering the factors that are important such as pay scale etc. Technologically advanced tools must be used to improve functioning of the team and is beneficial too.


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