Task 1 Compare and explain the relationship between organisation performance and

the different forms of structures and cultures of businesses. Analyse how individual
behaviour is influenced by the structure and culture of an organisation.

Organisations are social arrangements for the controlled performance of collective goals.
Each and every organisation seeks to compete in ever-changing environments and they need
to adapt and develop to take advantage of new opportunities. We need to have a good
understanding of what makes an organisation works that is culture and structure.
It is impossible to do split structure and culture, in practice. So organizational structure spells
out the place to be occupied by members of an organization and culture defines the task to go
with those place and the kinds of people.
Organisations are established to meet a need, for example to provide goods or services.
Organisational structures can adopt various structures depending on the individual
circumstances of the organisation. These structures adopted are influenced by factors such as
its purpose, size, the complexity of the tasks it performs, the external environment and its
culture. Its products, services or where it is located also determine which structure is best.
The structure chosen will govern the way in which the organisation operates and can have
positive and negative effects. The different ways to structure an organisation can be by
functions that is the different department, by product, by region, by customers.
Organisational culture is based on the shared perceptions and values held by its members.
Culture is the set of shared, taken for granted assumptions of a group that determines how it
perceives, thinks and reacts and these change from organisation to organisation. There are
different types of cultures which can be categorised under power culture, role culture, task
culture, person culture.
1.1 Compare and contrast different organisation structures and cultures
The different organisational structures can be compared and contrast as follows:
Functional structure v/s Matrix structure
Functional Structure is the most common type of organizational structure implemented by
companies worldwide. Its popularity is due to it being simple yet effective. In this structure
an organizations divides its self into different department (for example, Research and
Development, marketing, Human Resource Management, etc). People with similar skills are
grouped together in their respective departments
Here each department focus on their own area of expertise, and leads to specialisation. There
is a key person accountable for the section, which increases accountability and the clarity of

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their functionality. The downside is that the section may become resistant to change, and it
may be difficult to assimilate each section to achieve the best performance overall.
Matrix Structure
Matrix structure is the combination of the product, customer, functional departmentalisation.
Here authority is shared between the product managers and the heads of functional
department. The functional department heads are responsible for the management of their
own activities and staff, but the product managers are co coordinators of all the different
functions toward their particular objectives. An organisation which has a matrix structure that
is the team work of the business and based for the project. Every department is responsible
for their section. This team work is up to the project time if the project time is over then they
divert to another project. Here the project manager is responsible after the completion of the
project and budget

The functional structure has the advantage of simplicity; however it does not encourage
interdivisional cooperation and knowledge sharing. The matrix structure, in contrast, is highly
encouraging of knowledge sharing and cooperation between divisions. The matrix structure is
not without problems, however. Because employees in a matrix organization report to two
departments, there can be conflicts in their duties. For example, if the marketing manager has
a different opinion than the foods manager, it will make it difficult for an employee reporting
to both to balance these interests.
The matrix and functional organization systems have distinct advantages and disadvantages,
it is important to select the one that is best suited to a particular organization. Firms that are
simply interested in efficiency and not innovation, such as commodity manufacturers, should
use the functional organization form, as it will increase efficiency and avoid confusion.
Organizations that need to be innovative, however, are better off choosing a matrix form, as it
allows for more knowledge sharing and interdivisional cooperation, which can lead to more
creative developments.
Product based structure v/s Geographical based structure
A product-based organisational structure separates the company by products, activities,
projects or geography. This allows a company to have a particular focus on specific items in
its business operations. Companies implement a product-based organisational structure to
take advantage of the multiple product lines within the business. Each portion of the structure
can focus as an individual unit inside the whole company. The structure may also have
several layers of managers and employees.

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Business owners, directors or executive officers typically make up the top level of a product-
based organizational structure. Next are operational managers or vice presidents. Lower
levels will include various front-line managers, such as sales, manufacturing or finance,
followed by employees.
Geographical organisational structure is used by organizations with many business
locations. Geographic organisational structure is used for organisations that have offices or
business units in different geographic locations. A geographic organisational structure defines
a reporting and functional system across multiple locations. This type of structure allows an
organization's offices to operate individually while adhering to company policies and values.
Office locations can be local, national or international. Using a geographic organisational
structure allows companies to use local, experienced individuals to run the company's
operations. This is most beneficial in international locations, where companies need help
transitioning their operations to specific international markets. Geographic organisational
structure is used mainly in industries like retail and hotel chains, transportation and other
large national and international organizations. Manufacturing organizations with several
plants in different geographical locations may choose to operate using a geographic structure.
Geographic organisational structure allows for each business unit or office to operate as its
own entity based on where it's located. Many organisations may experience more or less
business opportunity in different places. This can increase or decrease financial budgets,
revenues, the number of employees at the location and their salaries. An area's cost of living
may also play a factor in the overall operations at each location.

Product-based structures allow companies to remain flexible in the business environment.

This allows the company to add or remove structure sections as necessary. However, it can
prohibit companies from achieving company-wide goals since each unit operates on its own
whereas in geographical organisational structure representative from each functional
department into units formed to serve a specific market or region. Geographical units can be
highly effective if they are located within the regions they serve and employ workers from
the local labour pool and can leads to better fulfilment of customer need through enhanced
communication. But in the geographical structure companies may find it difficult to run a
geographic organizational structure because it does not allow for centralized decision-
making. Business owners must rely on other individuals to take corrective actions and
improve operations rather than giving a directive from the company's main office or
headquarters.

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Organisational Culture
Every organisation needs good culture, good social norms, valves and ethical behaviours. So
organisation culture is the set of values, rules, beliefs, attitudes and regulations these factors
can help members of the organisation to know of the organisation. Culture is like a backbone
for the organization because it is the internal environment it play a key role to success of the
firm. Organisation culture helps employees understand what the organisation stands for, how
it does things and what it considers important. Organisation culture can be of various forms
for example management styles, attitudes to technology, attitude to quality, senior managers
are approachable.

Power culture v/s task culture

Power culture, where the power is concentrated at the top of the hierarchy, and only a few
individuals are authorized to take decisions. Those in turn delegate the responsibilities to their
subordinates. Employees opinions are not valued in this type of culture. On the other hand, a
task culture focuses on the task, and every member in a team is expected to contribute
equally. This allows opinions and ideas to be put forth unlike power culture.

Role Culture

Common in most organizations today is a role culture. In a role culture, organizations are
split into various functions and each individual within the function is assigned a particular
role. The role culture has the benefit of specialization. Employees focus on their particular
role as assigned to them by their job description and this should increase productivity for the
company. This culture is quite logical to organize in a large organization
Person Culture
Basically this kind of culture is a welfare non profitable, charities and for the social activities.
This kind of culture can be in the group or individual aim. They exist for the interest of the
individual and these organisations are usually lower in status than professional ones. The
organisation depends highly on the talent of individuals who are expert.

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My business organisation which is Tamak Textile can be presented in a functional
organisational structure. The structure of Tamak includes departments of production,
procurement, R&D, supply chain, finance, marketing, sales and HR.
Functional organisation is the best strategy for any organisation that focuses on just one kind
of product or service. In this case, Tamak has the right strategy when choosing this type of
structure because the company concentrates on single product which is production of shirts.
In each department, there is a manager who manages his subordinates, does the planning
projects, coordinates people and resources within budget, and makes reports to the higher
level of management. The General Manager of Tamak has the responsibility of managing the
whole company, making businesses plans to position the company to a higher position in the
market, receive feedbacks from departmental managers and providing them with useful
information in return, coordinate all departments to work together. Tamak textile has adopted
role culture where the role and responsibility of each individual is clearly defined.

1.2 Explain how the relationship between an organisations structure and culture can
impact on the performance of the business.

Organisational structure and culture can affect progress of organisation in the positive and in
the negative way. In the positive way it differentiate the organisation to the another one
which dont have a culture and structure. It explains the limitation of the firm. It provides a
sense of license among the employees to know each other for the success and achievement of
goals. It can bring stability and social system in the organization.
In any organisation having culture and structure strange there will be working environment
also provides appropriate standards of working environment. Every organization has different
policies rules and regulations that how to communicate with the employee. The organization
also shows about the responsibilities that who will report to whom mean who will be
responsible to whom majority in this kind of organization tasks a good decision for the
company.
Culture and structure has also some drawbacks on the business progress. If the organization
culture is too much complex then in the organization decision will be very slow and also
there will be centralized decision making in which the lower level employees will not be
entertained.
We will take the example of a flat structure; a flat structure has fewer layers or sometimes
just one layer of management and a short line of communication which make it more
responsive to change. The span of control is wide and managers may sometime feel

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overloaded with work. As a flat-structured organisation, employees at all levels are
encouraged to share their ideas and contribute to finding innovative solutions to complex and
challenging client problems. This helps to quickly establish trust amongst the team.
Furthermore a flat structure may promote a delegation culture. If managers delegate most of
their authority to their staff, we can say that there is a decentralised structure where
delegation can be promoted. Delegation is the process through which a manager allocates
work to subordinates. In general, the delegation process involves three steps: (1) the
assignment of responsibility, (2) the granting of authority, and (3) the creation of
accountability. As individuals are delegated responsibility and authority in a firm, a complex
web of interactions develops. These interactions may take one of three forms of authority:
line, staff, or committee and team.

BENEFITS OF DELEGATION
Effective delegation can benefit the manager, the employee, and the organisation. Perhaps the
most important benefit for the company is a higher quality of work as the various tasks will
be handled by experts in the respective fields. Delegation can improve quality of work by
allowing the employees who have direct knowledge of products and services to make
decisions and complete tasks. Quality can also improve through enhanced employee
motivation. Employees may do a better job because they feel a personal accountability for the
outcome, even though responsibility ultimately rests with the individual who made the
delegation. Motivation should also be enhanced as delegation enriches the worker's job by
expanding the types of tasks that are involved in it. In other words, they will see the outcome
of their contribution which helps in the employees showing their talents and know-how to
their managers in terms of the production outcome.
Managers who delegate effectively also receive several personal benefits; most importantly,
they have more time to do their own jobs and to focus on strategic initiatives when they
assign tasks to others. Given the hectic nature of managerial work, time is a precious
commodity. Effective delegation frees the manager to focus on managerial tasks such as
planning and control. Managers also benefit from the development of subordinates skills.
With a more highly skilled workforce, they have more flexibility in making assignments and
are more efficient decision makers. Managers who develop their workforce are also likely to
have high personal power with their staff and to be highly valued by their organisation and
hence, they are inspired to bring positive results for the company.

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1.3 Discuss the factors which influence individual behaviour at work.
Organisations are formed by individuals in order to achieve their objectives. But behaviour of
individuals at work depends on a lot of factors. So organisations are constantly finding better
ways to motivate individuals at work in order to achieve better results.
Several theories attempt to explain how motivation works. Maslow identified five levels of
human needs.
Maslow's hierarchy of needs
At the bottom of the pyramid are basic needs, those that motivate people to work food and
shelter. Once these needs are met through money, individuals want safety and security
through, for example, good job conditions. Social needs refer to the need to belong, to be part
of a group. Self-esteem may arise from a promotion. Right at the top is Self-fulfilment - the
area for creativity, challenge and interest. Maslow suggested that achieving one level
motivates us to achieve the next. In order to be able to provide physiological motivation an
organisation should ensure that it provides for example sufficient lunch breaks and offer
salaries that enable the workers to be able to meet basic needs.
Safety needs can be provided through the creation of a conducive environment which is safe,
provision of job security and a feeling that workers are safe from any threat.
Social needs require an organisation to create a feeling of acceptance, belonging, and the
spirit of communal living by encouraging team spirit among the workers.
Esteem motivators are provided through the recognition given to workers achievements,
attaching value to their views, assigning important projects to hard working employees and
provision of status to make them feel valued and appreciated by the organisation.
In order to enable a worker to achieve the need of self-actualization it requires provision of
challenging tasks, important work assignments which help to stimulate motivation, creativity,
and progress in accordance to long term organisational goals.
According to Maslow only unsatisfied needs act as motivators and so managers need to be
aware of the needs structures of their employees in order to provide them with effective
motivator.

Herzberg found 2 factors that influence employee motivation and satisfaction.

1. Motivator factors These are factors that lead to satisfaction and motivate employees to
work harder. Examples might include enjoying your work, feeling recognised and career
progression.

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2. Hygiene factors These factors can lead to dissatisfaction and a lack of motivation if they
are absent. Examples include salary, company policies, benefits, relationships with managers
and co-workers.
According to Herzbergs findings, while motivator and hygiene factors both influenced
motivation, they appeared to work completely independently of each other
While motivator factors increased employee satisfaction and motivation, the absence of these
factors didnt necessarily cause dissatisfaction. Likewise, the presence of hygiene factors
didnt appear to increase satisfaction and motivation but their absence caused an increase in
dissatisfaction.
This theory implies that for the happiest and most productive workforce, you need to work on
improving both motivator and hygiene factors.
To help motivate your employees, make sure they feel appreciated and supported. Give
plenty of feedback and make sure your employees understand how they can grow and
progress through the company.
To prevent job dissatisfaction, make sure that your employees feel that they are treated right
by offering them the best possible working conditions and fair pay. Make sure you pay
attention to your team and form supportive relationships with them. Dont forget that all of
our employees are different and what motivates one person might not motivate another. For
example the benefits packages should not be one-size-fits all.
Tamak aims to motivate its employees both by paying attention to hygiene factors and by
enabling satisfiers. For example, it motivates and empowers its employees by appropriate and
timely communication, by delegating responsibility and involving staff in decision making.
They are also likely to show greater loyalty to the company and have less absenteeism. An
unmotivated workforce will be the opposite, being dissatisfied with its role in the work
environment. This can negatively affect both the quality of the work as well as how
efficiently employees carry out their jobs.

Tamak textile considers that the business depends on two groups of people customers and
staff. It appreciates that staff are unique and have diverse lifestyles outside of work. To this
end Tamak supports staff with a work/life balance and offers reward through:
flexible working
free or reduced rate health benefits
competitive salaries
staff discount
Company share options.

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Taylors motivational theory
According to Taylors research, people worked purely for money. In the early years of the
textile industry, work on a production line was based on producing quantity and was
repetitive. Workers were paid 'piece rate', that is, paid for every item produced.
This approach of paying workers by results was good for the business. The outcome was
greater production but gave little opportunity, encouragement or time for employees to think
for themselves or be creative in what they did. This limited people's development and their
use within the company.
Employee rewards
Tamak Employee Reward Programme has some similarity to Taylors theory. Its financial
reward packages are one motivating factor. However, there are factors other than money
which motivate people in both their personal and working lives. Tamak goes far beyond
Taylor and gives more than just simple pay increases. It supports the varied lifestyles of
individual employees through relevant and targeted benefits.
Many non-financial factors can and do motivate employees to improve their output. One such
factor may be the desire to serve people; others may be to improve personal skills or achieve
promotion. A person may be motivated to be a professional footballer not because of the
salary but because they love football.
Employees are more motivated if they feel content in their work. This often happens when
their employer creates a good working environment where employees feel valued, generally
through increased communication and being asked for their opinions. Employee motivation is
also likely to be higher if the organisation invests in its staff through training and
development. In turn this enhances their knowledge, skills and their sense of job satisfaction.
Elton Mayo effect
Elton Mayo believed that workers are not just concerned with money but could be better
motivated by having their social needs met whilst at work (something that Taylor ignored).
He focused on social relationship between workers and managers. The latter should treat
them as people who have worthwhile opinions and realising that workers enjoy interacting
together.
Mayo conducted a series of experiments at the Hawthorne factory of the Western Electric
Company in Chicago
From this Mayo concluded that workers are best motivated by:
Better communication between managers and workers that is workers are given the
opportunity to express views and give their feedback.

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Greater management involvement in employees working lives that is workers have a
greater level of attention.
Working in groups or teams
In practice therefore businesses should re-organise production to encourage greater use of
team working and introduce personnel departments to encourage greater manager
involvement in looking after employees interests.
Communication
At Tamak the Mayo theory is seen to be operating throughout the company. Communication
is an extremely important factor in motivating employees. This may be through discussions
with managers, through the company intranet or newsletters or through more formal
structures such as appraisals. Line managers also hold a daily Team Meeting to update staff
on what is happening for the day
Motivation from training and development
Tamak also promotes motivation through its many training and development opportunities.
Everyone has access not just to the training they need to do their job well but also to
leadership training to grow within the company.

Employee motivation is an important task for managers. Early motivational theory such as
that of Taylor suggested that pay motivated workers to improve production.
However businesses now need employees to have greater motivation and have a stake in the
company for which they work, as shown by Mayo. Maslow and Herzberg demonstrated that
employees are motivated by many different factors.
Tamak provides opportunities for its managers and staff to take a share and a greater interest
in their own employment. Since every employee is an individual, with different needs and
aspirations, the process of reviews and personal development plans allows recognition of
their abilities and achievement, as well as potential development.

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Task 2 Evaluate the different approaches to management used by different
organisations. How do you compare the effectiveness of different leadership styles in
different organisations?

Management can be regarded as a promoter which is essential for converting the inputs of
operation into valued outputs and in the process we need to ensure that stakeholders are
satisfied.

The different function of management involves the following activities according to Henry
Fayol (1967) which are planning, organising, commanding, co-ordinating and controlling.
But people approaches prefer the term Leadership and motivation to commanding and add
function like communication. In business organisation the overall function of management is
economic performance.

Furthermore Leadership is the process of influencing others to work willingly towards goal,
to the best of their capabilities or in manner which is different to that which they would
otherwise have chosen. A leader special function is to create a vision, communicate the
vision, energise, inspire, motivate and to create culture that will achievement within the
organisation.

Leadership and management must go hand in hand. They are not the same thing. But they are
necessarily linked, and complementary. Any effort to separate the two is likely to cause more
problems than it solves.

Still, much ink has been spent delineating the differences. The managers job is to plan,
organize and coordinate. The leaders job is to inspire and motivate Perhaps there was a time
when the calling of the manager and that of the leader could be separated. A foreman in an
industrial-era factory probably didnt have to give much thought to what he was producing or
to the people who were producing it. His or her job was to follow orders, organize the work,
assign the right people to the necessary tasks, coordinate the results, and ensure the job got
done as ordered. The focus was on efficiency.

But in the new economy, where value comes increasingly from the knowledge of people, and
where workers are no longer undifferentiated cogs in an industrial machine, management and
leadership are not easily separated. People look to their managers, not just to assign them a
task, but to define for them a purpose. And managers must organize workers, not just to
maximize efficiency, but to nurture skills, develop talent and inspire results.

The distinction between leadership and management is quite useful in gaining a better
understanding of these different functions in an organisation. Leadership and management
operate hand in hand. To be a good manager requires leadership skills, and an effective leader
will be reliant on applying their own and others' management skills to achieve their vision.

Leadership and management are closely linked functions: each is complimentary to the other.
Without efficient management, the direction set by a leader risks being unsustainable.
Similarly, management exercised without effective leadership will perpetuate current

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activities and directions, without adaptation to meet strategic goals and without optimising
team performance.

2.1 Compare the effectiveness of different leadership styles in different organisation.

Leadership styles could be explained on a scale ranging from autocratic through

democratic to laissez-faire.

Autocratic Style

Autocratic leadership is where leaders have a lot of power over their people. The autocratic or
authoritarian style is characterised by an I tell philosophy. Staff and team members have
little opportunity to make suggestions, even if these would be in the team's or the
organization's best interest. Autocratic leadership is often best used in crises, when decisions
must be made quickly and without dissent. For instance, the military often uses an autocratic
leadership style; top commanders are responsible for quickly making complex decisions,
which allows troops to focus their attention and energy on performing their allotted tasks and
missions another example is an accident occurs at the store, the manager need to take control
to ensure a prompt and co-ordinated response.

Democratic Style

Democratic leaders make the final decisions, but they include team members in the decision-
making process. They encourage creativity, and team members are often highly engaged in
projects and decisions. Team members tend to have high job satisfaction and are productive
because they're more involved in decisions. This style also helps develop people's skills.
Team members feel in control of their destiny, so they're motivated to work hard by more
than just a financial reward. Democratic leadership style for example, when planning a major
stock reduction programme, the sales manager encourages his juniors to put forward ideas
and develop plans. This increases team motivation and encourages creativity.

Laissez-faire Style

A laissez-faire manager takes a hands-off approach and trusts teams to take appropriate
decisions or actions with broad agreed boundaries. For example the sales manager might
leave an experienced sales executive to develop a particular budget for the store. This could
be because he trusts that the sales executive has a good knowledge of the needs of the
department and of the business.

The main benefit of laissez-faire leadership is that giving team members so much autonomy
can lead to high job satisfaction and increased productivity.

The downside is that it can be damaging if team members don't manage their time well or if
they don't have the knowledge, skills, or motivation to do their work effectively.

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Even though the term leadership is still arguable according to researchers and they believe
that employee's performance lead to organizational effectiveness and efficiency which is a
result of effective leadership. Many writers emphasize that leadership styles can smooth the
progress of both leaders' leadership competence and stimulate or persuade employees to
perform better improve their commitment and satisfaction. This eventually boosts up
organizational performance. Managers need to be aware of the possible consequences of
using the wrong style in a particular situation. For example, a bakery owner would not adopt
a laissez-faire approach with a new member of the bakery team. If the employee is not given
proper instruction before operating the baking equipment, the bread might be overcooked.
Employees might also injure themselves if they don't use the equipment properly. In this
situation, it is essential to adopt an autocratic approach.

2.2 Explain how organisational theory underpins the practice of management.

Management is incorporated into every aspect of an organization and involves different roles
and responsibilities. According to Mintzberg: The manager who only communicates or only
conceives never gets anything done, while the manager who only does ends up doing it all
alone.Henry Mintzberg (1973), the Cleghorn Professor of Management Studies at McGill
University, defined ten management roles within three categories:
Interpersonal- How a manager interacts with other people
Informational- How manager exchanges and processes information.
Decisional- How a manager uses information in decision making.

No one person can be all things to all people. While these ten roles are highly useful in
framing organizational leadership, to expect one person to fill each role in a large
organization is impractical. Instead, astute hiring managers will hire people with one or two
specific roles in mind, thereby creating a team of managers capable of handling the wide
variety of challenges in the business world today.

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This chart below summarises a managers ten roles:
Mintzbergs Managerial Roles
Category Role Activity Examples
Informational Monitor Seek and acquire
Scan/read trade press,
work-related
periodicals, reports;
information attend seminars and
training; maintain
personal contacts
Informational Disseminator Communicate/ Send memos and
disseminate reports; inform staffers
information to others and subordinates of
within the decisions
organisation
Informational Spokesperson Communicate/transmit Pass on memos,
information to reports and
outsiders informational
materials; participate
inconferences/meetings
and report progress
Interpersonal Figurehead Perform and Greet visitors, sign
social
legal documents,
legal duties, act as
attend ribbon cutting
symbolic leader ceremonies,
host receptions, etc.
Interpersonal leader Direct and motivate Includes almost all
subordinates, select interactions with
and train employees subordinates
Interpersonal Liason Establish and maintain Business
contacts within and correspondence,
outside the participation in
organization meetings with
representatives
of other divisions or
organizations.
Implement
Identify new ideas and
Decisional Entrepreneur innovations; Plan for
initiate improvement
projects the future

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Decisional Negotiator Defends business Participates in and
directs negotiations
interests
within team,
department, and
organisation

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

There are three different types of management approaches to organisation which are classical,
neo-classical and modern. Classical approach to organisation has concepts that are commonly
known as classical concepts or classical theories of an organisation. An organisation is the
structure of power, relationships, objectives, roles, activities, communication and other
factors that exist when a person works together with someone. Bureaucracy as a concept, first
developed by Max Weber, presents a descriptive, detached, scholarly point of view. The
neoclassical approach to organisation also referred to as the human relations school of
thought reflects a modification to and improves over the classical theories. While classical
theories focused more on structure and physical aspects of work the neoclassical theory
recognizes the primary of psychological and social aspects of the worker as an individual and
his relations within and among groups and the organisation. The neoclassical gave birth to
human relations movement and provided the thrust toward democratisation of organisational
power structures and participative management.
In the Mauritian context organisation can be classified as Public sector and the Private sector.
The Public Sector represents all the governmental organisations and departments. Usually in
the public sector the bureaucratic approach is adopted.
There is written specifications for every position.
The tasks of the organisation are allocated as official duties among the various
positions.
There is an implied division of labour and a high level of specialisation.
A hierarchical authority applies to the organisation of offices and positions.
Uniformity of decisions and actions is achieved through formally established systems
of rules and regulations for examples annual leave, maternity leave.
Together with a structure of authority, this enables the coordination of various
activities within the organisation Employment by the organisation is based on
technical qualifications and constitutes a lifelong career for the public officers

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Autocratic Approach
In the public sector usually authority flow downward. With this autocratic approach head of
department usually assign tasks and expect satisfactory performance of the task. Usually
when decisions are taken people at bottom of the organisation are not consulted. The
respective Head of Department usually makes all the important decisions by themselves and
expects subordinates and junior staff to simply follow orders. There is the them and us
attitude in this type of organisation.

Furthermore, the Private Sector plays an inherent place in the Mauritian economy. However,
it has generally been observed that the leadership style in the private sector has been more on
the democratic style whereby there are more open discussions between various stakeholders
whereby there is consensus in the decisions being taken with engagement between the parties
involved irrespective on their hierarchy positioning. Delegation is a key element that is used
by managers in the private sector whereby the managers assign specific task to be executed
by the staff that is responsible in completing the task and whilst the ultimate responsibility
lies with the manager. For instance, when an advertising campaign is being designed in an
insurance company the feedback of the junior staff is also undertaken as they are the ones
deal with the customers hence they might be having valuable information that might be
helpful in devising the advertising campaign. Therefore the approach is different whereby the
feedback is gathered from bottom up with inputs being taken at different layers. This process
might appear to be time consuming but when considering the overall result, this process is
more efficient.
The same applies for Project Management whereby the concept of 360 degree feedback is
taken into consideration and assessment is done to ensure efficiency and effectiveness in
terms of cost efficiency, delivering quality of work and completing the project in a timely
manner.
What can also be seen here is that when there is employee engagement, the outcome is
positive as the employees feel part of the implementation process since the inception of the
project. Managers therefore get the benefit of getting innovative ideas which flows from the
employees. This process creates a sense of bonding in the organisation. Further, when
employees are provided training, this process is a good way of getting the feedback or for the
employees to use their training skills for the benefit of the organisation.

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Task 3 Discuss the impact that different leadership styles on motivation in organisations
in periods of change. Compare the application of different motivational theories within
the workplace and evaluate the usefulness of a motivation theory for managers.
Leadership is about motivating, inspiring and influencing people. The important job of
management is the effective use of human resources for the achievement of organisational
targets. The effective use of human resource will not be achievable without motivating
employees in the organization. And therefore, motivating employees needs a leadership style,
which plays an important role because they make the company culture which effect on the
organisation and its performance. Leadership styles have different types and each type has its
own impact on motivation at work.
Furthermore motivation is the driving force behind actions and behaviour. It leads individuals
to take action to achieve a goal or to fulfil a need or expectation. As individuals we are all
different and therefore are motivated by different factors at work.
Different motivational theories explain motivation and why and how people can be
motivated. There is the Maslow hierarchy of needs which put forward propositions about
motivating power of each need. In this theory there are the five different levels of needs, each
of which is dominant until it is satisfied and only does the next level of need as a motivator.
The Herzberg Theory identified that there are two sets of needs in the work place. There is
the hygiene factor and the motivator factors. Herzberg found that a combination of these
factors increased motivation and improved individual performance.
The McGregor Theory X and Y suggested that the style of management adopted would
depend on the view taken as to how subordinates behave.
3.1 Discuss the impact that different leadership styles have on motivation in
organisations in period of change management.
When we say motivation, we cannot impose on people. As a good manager we need to
rewards or sanction in such a way so as to encourage desired behaviours and performance on
part of employees. So we need to choose which leadership styles to adopt in period of change
management.
In period of change management usually there is a change in customer expectation leading to
a change in business strategies and leadership style. Nowadays organisations are customer
oriented so any change like change in customer needs will impact on the strategy of the
company. The company will have to adjust to the requirement of the client and the strategy
will reflect the change. In reviewing the strategy of the company the manager are expected to

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have a democratic leadership approach such that they gather the right information to ensure
the product is up to client expectation.
For example a company selling home appliances will have to adapt to changes in the external
environment. We need to analyse PEST factors in order to examine the external environment
to identify threat and opportunities.

POLITICAL FACTORS: relates to the factors which the government also affects such as
government rules and regulations which the business must follow. The types of things they
will have to be aware of is the minimum wage, the maximum hours a week employees can
work and especially the Health and Safety regulations; this is to avoid any bad press or revolt
from employees that will ultimately damage the reputation of the company both short term
and long term.
ECONOMICAL FACTORS: Our company will also have to be aware of interest rates,
tariff and duties on home appliances, taxation level and exchange rates, as we operate on a
large scale and drastic changes in rates can have a devastating effect on the financial
operations of the company if the business do not take appropriate steps to ensure the effects
are minimum.
SOCIAL FACTORS: It is important for us to fully understand the social factors in the
market and the main factor we need to understand is the culture of the society; which is to
have the latest and most up to appliances. Consumers are always after the most innovative
TV (led TV), blue ray DVD or washing machine; because in todays culture people are judge
on how fashionable they are by their choice. So we need to be up to date in order to keep up
with the trends of our consumers; to compete with our rival.
TECHNOLOGICAL FACTORS:
The technological advances in the industry are vital for the success of any new appliance in
the market that is continually growing, as the level of competition we must ensure that we
provide with the latest innovative appliance.
Through the analysis of the PEST factors we will be able to understand the wider business
environment i.e. understanding the market and trends and managers will need to adapt to
these changes.
However, according to McGregor theory, manager of organisation possess two different
assumptions about the human nature and s/he explained these two assumptions in two
different theories: Theory X and Theory Y. According to theory X, the human being has
always being inherited for the disliking of the work. They always try to avoid the work either

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they can do or not. According to him, managers always think that their employees are lazy.
Manager has to forced, direct and controlled his people to do work. Therefore he is limited to
his own knowledge about the market. Thus he is less likely to succeed in face of change.
Whereas McGregor theory Y managers completely have a positive approach towards their
employee handling. They create awareness between their employees to gather information
about different fields. By so doing, the theory Y manager may be having more ideas and
opinion in order to develop a more appropriate strategy so as to deal effectively with change.
So changes in the leadership style are necessary in order for managers to reach out and
motivate employees to keep the departments focused on achieving the set goals and objective.

3.2 Compare the application of different motivational theories and their application
within their workplace.
Motivated employees are more productive and creative than those who are unmotivated.
They enjoy their work more and experience less stress. Managers usually strive to find ways
to motivate their staff. Behavioral psychologists have developed various theories namely the
Taylor Theory, Maslow and Herzberg Theory and Elton Mayo Theory about motivation in an
attempt to better understand and control human behavior. These motivation theories help us
to see how motivation can be applied in the workplace. Motivation theories can energise
business so we need to decide which motivational theories to use.
We will use the example of the Elton Mayo Theory
The Elton Mayo's theory of motivation examined the social needs of the worker. He believed
that pay alone was not sufficient to motivate employees to put forth their best effort. He
believed that the social needs of the workers should be taken into consideration. He
recommended employers treat their workers in a caring and humane fashion so that they can
be more productive.
In the early 1930s the theorist Elton Mayo suggested that motivation at work was promoted
by such factors as:
greater communication
good teamwork
showing interest in others
involving others in decision making
ensuring the wellbeing of others
ensuring work is interesting and non-repetitive.

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Mayo suggested that boredom and repetitiveness of tasks led to reduced motivation. He
believed that motivation was improved through making employees feel important, giving
them a degree of freedom to make choices and acknowledging their social needs.
Communication
At the British American Insurance Company (BAI) the Mayo theory is seen to be operating
throughout the company. Communication is an extremely important factor in motivating
employees. This may be through 1-to-1 discussions with managers, through the company
intranet or newsletters or through more formal structures such as appraisals.
Line managers hold a daily Team Meeting to update staff on what is happening for the day
and to give out Value Awards. These awards can be given from any member of staff to
another as a way of saying thank you and celebrating achievements.
Motivation from training and development
BAI also promotes motivation through its many training and development opportunities.
Everyone has access not just to the training they need to do their job well but also to
leadership training to grow within the company. BAI offers strategic career planning to help
staff 'achieve the extraordinary'. The company also emphasizes the development of the whole
person and has implemented a system of 360 degree feedback. This is a personal
development tool which provides feedback from a selection of people with whom the
employee works. This helps employees to understand their behaviour, strengths and
weaknesses within the workplace as others see them.
Personal development plans
All BAI employees have a Personal Development Plan which they build through their 360
degree feedback and other tools. This enables Tesco managers to offer meaningful feedback
to employees to help provide opportunities for continuous personal development. This
personal approach helps employees to reach their full potential by encouraging self-
assessment and providing advancement through ongoing training. It also enables individuals
to take responsibility for their development.
This two-way relationship ensures that the employee is committed to the values of the
company, that he or she works in partnership with others and helps improve the business for
customers.

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Another motivational Theory is the Herzberg Theory. He identified two basic needs systems:
The need to avoid unpleasantness and the need for personal growth. He proposed the
Motivation-Hygiene Theory, also known as the two factor theory of job satisfaction
Herzberg also showed that to truly motivate an employee a business needs to create
conditions that make him or her feel fulfilled in the workplace.
McDonald Restaurant aims to motivate its employees both by paying attention to hygiene
factors and by enabling satisfiers. For example, it motivates and empowers its employees by
appropriate and timely communication, by delegating responsibility and involving staff in
decision making. It holds forums every year in which staff can be part of the discussions on
pay rises. This shows recognition of the work Tesco people do and rewards them.
McDonald staff can even influence what food goes onto its restaurant menus. This may make
employees to become motivated to work within the organisation.
As we can see above motivation is the driving force behind actions and behaviour. It leads
individuals to take action to achieve a goal or to fulfil a need or expectation. As individuals
we are all different and therefore are motivated by different factors at work. So we need to
apply motivation theories for the overall improvement of organisations.

Evaluate the usefulness of a motivation theory for managers.

Motivation is driving force within individuals (Mullins, 2001) , therefore, managers should
influence the factors that motivate employees receive a higher level of productivity.
Maslows Hierarchy of Needs Theory is one of the most well-known motivational theories.
This theory can be useful for manager within organisations.With Maslows theory, an
employee emphasizes on the lower order needs of physiology and security needs. Generally,
a person beginning their career will be very concerned with physiological needs such as
adequate wages and stable income and security needs such as benefits and a safe work
environment. We all want a good salary to meet the needs of our family and we want to work
in a stable environment.
Once these basic needs are met, the employee will want his belongingness (or social) needs
met. The level of social interaction an employee desires will vary based on whether the
employee is an introvert or extrovert. The key point is that employees desire to work in an
environment where they are accepted in the organization and have some interaction with
others.This means effective interpersonal relations are necessary. Managers can create an
environment where staff cooperation is rewarded. This will encourage interpersonal
effectiveness.

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With these needs satisfied, an employee will want his higher level needs of esteem and self-
actualization met. Esteem needs are tied to an employees image of himself and his desire for
the respect and recognition of others.
Cross-training, job enrichment, and special assignments are popular methods for making
work more rewarding. Further, allowing employees to participate in decision making on
operational matters is a powerful method for meeting an employees esteem needs.
With self-actualization, the employee will be interested in growth and individual
development. He will also need to be skilled at what he does. He may want a challenging job,
an opportunity to complete further education, increased freedom from supervision, or
autonomy to define his own processes for meeting organizational objectives. At this highest
level, managers focus on promoting an environment where an employee can meet his own
self-actualization needs.
From the above we can deduce that a manager can identify the different needs of different
people in order to fit them in the right hierarchy and furthermore appropriate esteem needs
package in order to boost productivity and motivation in the workplace. Scarce resources
within the organisation can be used more effectively which may help prevent wastage.
This means that managers must continually adapt to employees changing needs if they want
to keep their workforce motivated.

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Task 4 Explain the nature of groups and how effective teamworking could be
developed. Discuss the impact of technology on effective teamwork if the organisation
decides to remove layers of management and replace them through information
systems.
Teamwork is used across many different industries to increase performance, employee unity
and company culture. Companies that must frequently develop new ideas or products using a
project-based approach assemble teams in order to diffuse responsibility. Team members use
teamwork to bounce ideas off of one another before deciding on a development path for a
project.Furthemore teamwork help improve productivity as work can be accomplished more
quickly and more efficiently and effectively. Through teamwork different information and
knowledge can be derived which would not have been identified by an individual therefore
leading to a greater sense of accomplishment. Teamwork helps individuals raise their self-
esteem. Team work leads to a higher quality output, some times more than desired level of
output.

4.1 Explain the nature of groups and group behaviour within the organisation
A group is people working towards goal whose work is coordinated by someone else and a
team is people working towards a common goal who coordinate their work amongst
themselves.
The term group can be defined as two or more persons interacting and working together for
a common purpose. When people work in groups rather than as individuals, the goals of the
organisation can be easily achieved. However, working in a group is a complex task. Group
dynamics refers to the interactions among the members of a group. A work group of an
organisation is the most important base for the social identity of employees in that
organisation. Therefore, performance at work and relationships outside the organisation are
influenced by the nature of groups in the organisation.
Nature of Groups:
Different kinds of groups are created to get specific results in organisations. The members
accept a common task, become mutually dependent in their performance, and interact with
each other to promote its achievement. There are three views on the nature of interaction
between members of a group. The first view is the normative view, which describes how to
carry out activities and manage a group. According to the second view, group dynamics
includes of a set of techniques which include, role play, team building, sensitivity training
and self-managed teams. The third view explains group dynamics from the point of view of
the internal nature of the groups. The structure of groups and performance are discussed in
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this view along with the effect of groups on individuals, other groups, and the complete
organisation.
Formal Groups:
A group formed by the organisation to achieve a specific task is termed as a formal group.
The organisation structure a formal group and gives tasks and responsibilities to different
members with the intent of reaching organisational aims. Command groups and task groups
are examples of formal groups. A command group is relatively permanent in nature and
finds representation in the organisation chart. Task groups, on the other hand, are formed for
a specific task and are temporary in nature.
Informal Groups:
Informal groups are formed by the staffs themselves. The reasons for the formation of
informal groups can be the need for closeness, ordinary interests, growth or support. There
are two types of informal groups: friendship groups and interest groups. Members of
friendship groups have a friendly relationship with each other, common interests and are
similar in age and view, but interest groups are formed to manage an activity and are
temporary.
The group behaviour also largely depends on the stage of group development. A five stage
model of group characterizes group according to the following stages:
Forming: The group members do not know each other really well and there is uncertainty as
to how to carry out the group work.
Storming: Intra-group conflicts exist at this stage where everyone tries to dominate their ideas
over others and it continues unless a conclusion is reached regarding who will lead the group
and how the tasks will be organized.
Norming: At this stage, the members have developed a mutual understanding and are
defining group norms.
Performing: Once the norms are set, the group starts performing to achieve the purpose for
which it was formed.
Adjourning: After performance, the group adjourns if it was made for a temporary time
period, for instance, for a particular project. In other cases, where groups keep on performing
on continuous basis, this stage is not relevant to those groups.

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4.2 Discuss the factors that may promote or inhibit the development of effective
teamwork in organisation.
An effective team is one that achieves high level of task performance, member satisfaction,
and team viability. Effective team are composed of members that have adequate levels of
complementary skill and shared organisational culture, well defined goals, positive attitude
and cooperative spirit. Furthermore to have team effectiveness we need to have mutual
respect among team members and a common vision where team is going.
There are a number of factors that are required to develop effective team work
Factors that may promote teamwork effectiveness are:
Shared leadership: When leadership is shared, it means that there is a formal leader, but the
leadership functions are shifting from time to time. Every member of the team is willing to
take ownership and participates in active decision making, which helps in abiding team
norms and achieving desired output effectively. For example, at Tamak textile we have good
leadership and this helps us to motivate and even inspire the team members to get involved in
creating a positive working environment, along with high levels of obligation.
Clear purpose: It is very necessary to have a clear purpose because when team members
know the vision, mission and goals of their team; their roles become clearer and they have a
focused approach towards achieving the targeted goal.
Open communication during team building: It helps in avoiding hidden conflicts since
members are able to freely express their views. It also enables members of the team to
expressive their feelings, plans and shares their ideas, and understands each other's
viewpoints.

Factors that may inhibit teamwork effectiveness and make the team dysfunctional are:
Chatting: usually chatting around greatly inhibits effectiveness since the team member is
withholding his efforts and not performing his share of work.
Different pay package: Pay can be a demotivator for some people within an organisation as
some people doing same work can be having a higher pay than him. Sometimes people are
appointed after negotiation of pay package by competitors in order to appoint someone who
has been working for competitors.
Unclear roles: When members do not know what is exactly expected of them, then they tend
to become de-motivated towards performing well. Roles should not be ambiguous and each
member should be given his share of work in order to improve team effectiveness.

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Attitude: Sometime negative attitude of manager and tem leader towards team members may
also affect teamwork.

Teamwork is really beneficial when all the individual factors come together to bring the
desired result. As such, the organisation should highlight the advantages that the team will
benefit by working together, having a clear objective with the roles and responsibilities of
each team member clearly defined. It is the clear that the senior management should promote
engagement within the team as this is critical in benefitting from the advantages of having an
efficient team. The message to the individual team member should be clear regarding the fact
that the benefit to the employees and the organisation is much better with the fact that
everyone benefits with the team work. A conducive environment should also exist
considering the fact that team work emphasises a lot on people. Hence, there should be a
good working relationship among the people in the organisation such that the optimum level
of benefit is derived.

4.3 Evaluate the impact of technology on team functioning within a given organisation
New technology is being introduced into the workplace at an exponentially increasing rate
over the last few decades. Most companies see new technology as the means to increase
profit and to remain competitive on the market. Technology can have positive and negative
impact on team in organisation.
Positive impact of technology
Information Technology has led to an increasingly mobile workforce. We are no longer tied
to our desk in order to stay in the information loop. We can take our office with us wherever
we go. Cellular phones allow us to be reached almost anywhere. Blackberries and Ultra-
mobile PCs permit to access e-mail and other data products at a wide range of locations. A
wide range of new technologies have given businesses access to faster communication, Email
allows staff to communication with each other from different places.
Furthermore, technological advances can reduce the cost of travelling and accommodation.
There is no need to wait for a particular time, date and place to meet physically; also the
duration of the meeting is no longer limited.
Technology can also promotes on going feedback on the progress of particular task especially
about critical task that is task where we cannot waste time but should be well done.

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Negative impact of Technology

Technical breakdown-Unreliability in the network connectivity may cause teamwork to be

ineffective during important meetings. Critical activities necessitating instant communication
and feedback may not take place and this can go against the project and effective teamwork.

Different countries have different platform of technological operation. In developing

countries like Mauritius connectivity and broadband access usually have low connectivity
access and it can inhibit effective teamwork.

Phishing attacks can occur and messages can be leaked to third party. Therefore secrecy and
privacy of information may not exist. Thus important meeting may not take place on internet
for security reasons. Team members would prefer to meet physically in office thus defeating
the purpose of having technological facilities.

Overall, one can say that technology is a complementing factor in place for the organisation
to benefit from the various advantages. As technology is now emerging globally in every
sphere of the business world, any organisation should consider different degree of automation
at any level to benefit and manage cost control as well. Technology, if properly implemented,
has proved to be beneficial for any organisation. Also, for an organisation to grow and
ensuring sustainability, technology is a key partner to invest in the long run.

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