Organizational behavior is defined as being ‘the survey of the construction, working and public presentation of administrations, and the behavior of groups and persons within them ‘ ( Pugh, 1971 ) . A more recent and in depth definition describes organizational behavior as ‘the interdisciplinary organic structure of cognition and field of research, concerned with how formal administrations, behavior of people within administrations, and outstanding characteristics of their context and environment and environment, evolve and take form, why all these things happen the manner they do, and what purposes they serve ‘ ( Sorge and Warner, 1997 ) . There is nevertheless changeless argument as to the significance of the topic and changing thoughts of the countries the topic covers and there are besides changing rubrics of the topic for illustration ‘organisational theory ‘ and ‘organisational analysis ‘ .
The study will analyze the undermentioned countries ; Organisational structural manner and design, direction control & A ; leading, organizational civilization and single perceptual experience. Designation of the interrelatednesss between these countries and an administration will so be made. The administration which will be analysed is Barclays Bank PLC.
Management can be described as many different things and there a figure of contrasting positions as to what is really meant by the term direction and different thoughts about what a director does. One widely used definition is ‘Management is the procedure of accomplishing organizational aims, within a altering environment, by equilibrating efficiency, effectivity & A ; equity, obtaining the most from limited resources and working with & A ; through people ‘ ( Naylor, 2002 ) . Management is besides seen as non merely being a procedure but ‘Management is undertakings. Management is a subject. But direction is besides people. Every accomplishment of direction is the accomplishment of a director. Every failure is a failure of a director ‘ ( Drucker, 1979 ) . This definition shows the nexus to humanistic attacks to direction and foreground the importance that they have in footings of direction. Drucker besides identifies the force per unit area on directors to accomplish as the duty finally lies with them. These two definitions both relate to the thought that finally direction is ‘making things happen ‘ . The argument occurs when placing how people and resources should be used in order to do things go on efficaciously. Henri Fayol identified 5 cardinal elements of direction which he described as ; planning, organizing, bid, co-ordination and control.
A classical direction theory comes from Frederick Winslow Taylor ( 1856 – 1915 ) who developed the ‘scientific direction theory ‘ . This theory set a belief that there was ‘one best manner ‘ to finish a undertaking and scientific methods were used to find this. As a consequence of this belief undertakings were standardised every bit much as possible in order to make the ‘one best manner ‘ . Taylor developed the theory in order to make a solution for the turning complexnesss in industry and the outgrowth of new engineering which created organizational jobs for concerns. Scientific methods were used to place and choose the best individual to make a occupation and develop the right individual to make a occupation. The theory besides implemented a clear division of undertakings between direction and workers. Taylor explained to workers that following his ‘one best manner ‘ would increase production which in bend would increase their wage.
Taylorism was developed farther by Gilbreth and Gantt. Gilbreth ( 1878 – 1972 ) used clip and gesture survey to better efficiency farther. One illustration of this is ‘field survey ‘ which he devised for usage on work sites to better efficiency by making a set of regulations and processs.
Gantt ( 1861 – 1924 ) agreed with Taylor ‘s attack but he believed, in sing human psychological science the theory could be made more acceptable. He introduced the thought of ‘best known manner at nowadays ‘ which compared to Taylor ‘s thought of ‘one best manner ‘ as it gave less elaborate analyse of occupations. Gantt besides introduced the ‘Gantt chart ‘ which planned work activities in order to better efficiency.
Henry Ford ( 1863 – 1947 ) was another advocator of Taylorism. Fords position was ‘continuous betterment ‘ alternatively of ‘the one best manner ‘ position of Taylor. He brought about the de skilling of work in order to run into the demands of mass production as the figure of skilled workers was non plenty to run into the mass production desired. His major inventions were the analysis of occupations utilizing clip and gesture techniques, the usage of individual purpose machines to fabricate standardized parts and the debut of the assembly line. The chief differences between Taylorism and Fordism were that engineering was now at the bow forepart of work in Fordism and the debut of engineering controlled the gait of work and design of work, compared to Taylorism where the workers or supervisors controlled these.
These classical theories concentrate on the production in an administration whereas the humanistic theories take into consideration the single workers concerns. Classical theories use the thought of control and penalty of workers based on marks. This attack was seen as de actuating and in some instances it was believed it limited the public presentation of workers.
Human dealingss theory used the rule that in allowing workers communicate their sentiments, concerns and suggestions about work they could make a better satisfaction and higher production. The societal well being of workers was now considered as being an of import factor and this as a major influence on effectivity of administrations.
The Hawthorne surveies conducted by Elton Mayo in Chicago, 1924 conducted research into the relation of quality and measure of light to the efficiency in industry. The surveies helped exemplify the importance of societal dealingss in the workplace and moved directors to see interpersonal facets of organizing. However the surveies had many unfavorable judgments as it was believed that there were excessively few topics and that topics were replaced with more co operative participants. Many labelled the surveies as worthless and full of mistakes due to these unfavorable judgments.
Douglas McGregor ‘s ( 1906 – 1964 ) ‘Theory Ten and Theory Y ‘ focal points on the premises directors have about human nature. It set about understanding human behavior by detecting the theoretical premises which behaviour is based. Theory X relates to the classical theory as it assumes that worlds have an built-in disfavor of work. It besides assumes that most people must be directed and controlled and besides threatened with penalty and that they avoid duty.
Theory Y relates to human dealingss theory. It assumes that external control and the menace of penalty are non the lone schemes. It assumes that worlds learn under proper conditions non merely to accept but to seek duty. It besides theorises that the rational potencies of the mean human being are underutilised. The ‘scale of authorization ‘ illustrates McGregor ‘s theory.
Reward Theory X ( Classical ) Theory Y ( Humanistic )
Concern for workers
Concern for production
The graduated table of authorization diagram shows the activities and methods of controls and the relation these have to the theories of direction. The classical theories which relate to McGregor ‘s ‘theory x ‘ , use high degrees of control and way which can be described as deputation. The humanistic theories use a more limited attack to command and seek to aline the persons and the administrations ends in order to make more effectual work, this can be seen as authorization.
Barclays Bank Plc uses high degrees of control and way in some of its work countries, for illustration their gross revenues and client service squads which operate in their call Centres. The attack used is extremely commanding, which can be related to the ‘tell ‘ attack to direction. Technology is used to standardize undertakings by the usage of electronic books and motivating systems which limits persons influence on undertakings. Besides fiscal inducements are offered to workers based on public presentation and meeting gross revenues and quality marks. This degree of deputation can be related to Taylorism, and shows that elements of classical theory are still present in modern twenty-four hours work. This method can besides be linked to the McDonaldisation theory ( Ritzer, 1993 ) due to the predictability of undertakings and the degree of control used which means workers execute a limited figure of undertakings in a precise manner. This method can de-motivate staff as a deficiency of influence on work methods and duty can take them to experience deficient and experience as if they are merely a tool to be used. However if workers are in fact considered to be in the class of ‘theory X ‘ so this method may assist them accomplish their single ends and they may in fact be satisfied with this work method.
Barclays besides show a concern for societal demands in these same work sections, for illustration workers are provided with amusement countries and gym ‘s which may be seen to assist workers societal good being. Barclays show what is typical of modern twenty-four hours work, that a mix between classical theories and humanistic theories are now put in topographic point to assist accomplish effectual working practises with the add-on of accomplishing single worker satisfaction.
Structure is defined as being ‘the form of relationships among places in the administration and among members of the administration. It defines undertakings and duties, work functions and relationships and channels of communicating ‘ ( Mullins, 2005 ) . Good direction and control are non the lone ways of bettering the public presentation of an administration and other factors are needed to assist an administration win in making good public presentation, such as organizational construction. ‘Good organisation construction does non by itself produce good public presentation. But a hapless administration construction makes good public presentation impossible, no affair how good the single directors may be. To better administration construction… will therefore ever better public presentation ‘ ( Drucker, 1989 ) . Drucker shows the importance of holding a good administration construction and illustrates the impact it can hold on public presentation.
There are three different degrees within an administration which are proficient degree, managerial degree and community degree. These degrees are wholly interrelated as the proficient degree interrelates to the managerial degree which in bend interrelates with the community degree. The proficient degree trades with specific operations and the occupations that need to be done for illustration in Barclays the subdivision teller that trades with clients. The managerial degree trades with the carbon monoxide ordination and integrating of work in relation to the proficient degree. For illustration in Barclays the subdivision directors would be portion of this degree doing determinations on public presentation and resources required. Finally the community degree trades with the concern as a whole and focuses on determinations that concern the whole concern. The managers of Barclays and their concern scheme is an illustration of the community degree.
The span of control is an of import factor in respects to organizational construction as it has a large influence on the communicating and carbon monoxide ordination a concern has between its different degrees and staff. A tall ( Hierarchical ) administration has many degrees and hence has a narrow span of control. If the span of control is excessively narrow so communicating may go more hard and less effectual. Alternatively a level ( Organic ) administration has a little figure of degrees which in bend allows it to hold a broad span of control. If an administration has a span of control which is excessively broad so it may go more hard to oversee subsidiaries which in bend could make more emphasis for directors.
There are besides four different types of construction an administration can hold which are functional, divisional, matrix and informal. Functional construction adopts a tall manner and the concatenation of bid goes from the top down. Divisional construction divides command through merchandise. This can be likened to many international concerns which provide different merchandises to different country to the universe. Matrix construction incorporates double duties and mixes functional construction and divisional construction together. It is normally used when people with functional expertness are needed for certain undertakings, but when the undertaking is completed they are once more moved to another country. Informal construction is loose in construction and persons are normally portion of a web of relationships. Communication is normally speedy but non ever effectual. This signifier of construction is normally seen in household concerns or little concerns where all the persons know each other.
Barclays is a tall ( hierarchical ) administration with many degrees. The administration splits into two concern bunchs which are ‘global retail banking ‘ and ‘corporate & A ; investing banking and wealth direction ‘ . There are besides two other major countries of concern which are ‘group Centres ‘ and ‘absa ‘ . This suggests that they adopt a divisional construction as they split the administration by merchandise. The group Centre is the caput office and support maps operation. The administration is decentralised ; even though it has a chief central office in London it besides has other central offices in other metropoliss such as New York which allow it to do speedy effectual determinations and respond to alterations in different countries of the universe ( Barclays, 2011 ) . This can impact single workers as it may better their public presentation as they are provided with more effectual control which will non impede their work as the determinations being made will be quicker and more antiphonal. The job with this kind of organizational construction for the person is that the functions of people in the administration become ill-defined and function ambiguity occurs. This could impact workers as they may be diffident about who they should near on certain issues and hence work may go more complicated ensuing in decreased public presentation which in bend may take to de motive.
Culture is defined as being ‘the constellation of erudite behaviors and consequences of behavior whose component elements are shared and transmitted to the members of a peculiar society ‘ ( Linton, 1945 ) . Culture can besides be applied to administrations every bit good as general society as ‘organisational construction describes the cardinal premises people portion about an administration ‘s values, beliefs, norms, symbols, linguistic communication, rites and myths that give intending to organizational rank and are jointly accepted by a group as ushers to expected behaviors ‘ ( Pettigrew, 1979 ) . Pettigrew expands on Linton ‘s definition of civilization and depict how civilization can be within an administration and influence the behavior of persons within the administration.
Organizational civilization can be interpreted in different ways. Deal and Kennedy generic civilization grid explains that there are four types of civilization that a administration can fall into. These are ‘tough-guy, macho ‘ , ‘work hard/play difficult ‘ , ‘bet your company ‘ and ‘process ‘ .
Feedback and wages
The ‘tough-guy, butch ‘ civilization is about individuality of employees who enjoy hazards. This civilization is all about success of persons, and successful employees work really difficult to be stars. Due to this fact there is high labour turnover as failure is unwanted and this in bend means a cohesive civilization can non be formed. Individuality in this civilization finally prevails and an illustration of this civilization could be an advertisement house or a athleticss squad.
The ‘work hard/play difficult ‘ civilization is chiefly attributed to the gross revenues universe. Employees take few hazards but feedback on public presentation is immediate. High degrees need to be maintained in this civilization and it requires employees to ever be cheerful. Team attempt is encourages and everyone is driven to execute and stand out.
The following civilization illustrated is the ‘bet your company ‘ civilization. High hazard determinations are taken conjugate with slow feedback which means that people have to wait long periods of clip to see if determinations have paid off. The long term is the focal point in this civilization and planning is seen as indispensable.
Finally the ‘process ‘ civilization has low hazards along with slow feedback so once more it takes clip to happen out if a determination was the right one or non. Employees concentrate on acquiring the undertaking done right alternatively of the result of undertakings as it is difficult for employees to mensurate their public presentation.
Charles Handy ‘s theoretical account of civilization explains that there are four types of civilization which co-exist in most administrations. These four civilizations are foremost ‘role ‘ civilization which is stable with predictable work. Peoples in this civilization do their occupation adequately. The following type of civilization is ‘power ‘ civilization which uses cardinal figures to command. This civilization is normally attributed to little administrations where the 2nd conjecture what the foreman thinks. ‘Task ‘ civilization focuses on expertness and endowment and is capable to changeless alteration. This kind of civilization is normally seen is matrix construction administration where undertaking direction is normally used. Finally ‘person ‘ civilization focuses on persons and these persons see themselves as professionals who are imparting their expertness to the concern. Management is non seen as being necessary and is given a lower position degree.
Barclay ‘s organizational civilization can be seen to utilize many of these different civilization types for illustration the gross revenues squads in their regional call Centres may be seen to be utilizing the ‘work hard/ play difficult ‘ civilization as employees are required to keep high public presentation and they are driven to stand out. However in other sections this civilization may non be adopted for illustration Barclay ‘s investing banking section may follow a ‘tough-guy, butch ‘ civilization as the hazards for workers is high but many of them strive to be successful and work hard to be stars within the administration. In relation to Charles Handy ‘s civilization types Barclays usage ‘role ‘ civilization for its branch staff as their work is seen to be extremely predictable and the workers do their occupations as they are told to. Barclay ‘s investing bankers may be seen to follow the ‘person ‘ civilization as they see themselves and are considered by others to hold a high degree of expertness and because of this are paid high amounts of money in order to maintain them in the administration.
An effectual administration mixes good organizational construction with effectual direction control and organizational civilization. If an administration can make this so they have a greater opportunity at being successful and accomplishing the maximal public presentation from workers while making employee satisfaction. Achieving this mix can be really hard and is effected by many different factors. Even if this mix is created it does non vouch success but without it, it may be hard to accomplish an administrations overall aims and ends.
Pugh, D.S. ( 1971 ) Organization Theory: Selected Readings, Penguin Books, Harmondsworth
Sorge, A. and Warner, M. ( 1997 ) The Handbook of Organizational Behaviour, International Thomson Business Press, London
Naylor, J. ( 2002 ) Introduction to Operations Management ( 2nd edition )
Drucker, P. F. ( 1979 ) Management, Pan Books
Ritzer, G. ( 1993 ) The McDonaldization of Society: An Investigation into the Changing Character of Contemporary Social Life, Pine Forge Press, Thousand Oaks, CA London
Drucker P.F. ( 1989 ) The Practise of Management, Heinemann Professional
hypertext transfer protocol: //group.barclays.com/Home ( 07/02/2011 )
Linton, R. ( 1945 ) The Cultural Background of Personality, New York, NY: Appleton-Century Crofts
Pettigrew, A.M. ( 1979 ) ‘On Analyzing Organisational Structures ‘ , Administrative Science Quarterly 24, December, p.574