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Organizational Behaviour

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Analyzing the Impacts of organization’s structure & culture

2941 Downloads I Published: 03 Jan ,2019

Introduction

Organization behaviour is basically the behaviour of the employees towards its work as well as its subordinates. This can be defined as basically the study of individual behaviour. The organization which has been chosen in this report is Ryanair Airlines which are one of the largest airlines of UK. This report emphasizes on the organizational structure and culture adopted by Ryanair Airlines. On the other hand, this report compares the leadership style which is followed by Ryanair Airlines and virgin airlines. Lastly, it will discuss motivational theories which are adopted by the organization.

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1.1 Compare and contrast three types of organizational structures and culture

Organizational structure is basically the working structure of the organization which helps the employees in achieving organizational goal. Every organization follows different structure according to their aims and objectives. In case of Ryanair Airlines it follows functional type of organizational structure where there are different departments which assist in accomplishing company’s goal (Carpenter and Charon, 2014). For example, there is marketing department, sales department etc. Further, Asda which is a multinational retail store follows divisional type of organizational structure. This structure is adopted by Asda because its stores are divided geographically. In this, the company has different divisions which manage all the operation of that particular area. Another structure is the matrix structure which is followed by Marks and Spencer. In this structure both divisional and functional structure is adopted by the firm. In this organization, functional and divisional mangers work at the same level and they are responsible for achieving the sales target of the area (Hoseyni, and et.al, 2014).

On the other hand, organizational culture is basically the way in which the employees work in the organization. Power culture can be defined as the culture in which all the roles and responsibility is assigned by the top management. Power is in the hands of one person. This type of culture is followed in Ryanair Airlines as the responsibility of employees is to obey the orders of superiors. In case of marks and Spencer it follows task structure in which the team is assigned the particular task and they are require to meet the objective. In the task culture the team members are generally specialized in their areas. Asda follows role culture in which all the departments and divisions have the authority to take the decision in achieving goal and objectives of the company (Jogulu, 2010).

1.2 Explain how the relationship between organization’s structure and culture impact the performance of business

Organizational structure and culture is the base of the company as with the help of this it becomes possible for the human resource to work effectively and efficiently. These play a major role in enhancing the performance of manpower. In case of Ryanair Airlines it follows divisional structure that means all the department head assign duties to its subordinates. This helps in making the communication clear and the employees understand well which further enhances the performance of workers (Newstrom, 2012). On the other hand, culture has main role in increasing the performance of the manpower. According to the culture of the organization, employees interact with their colleagues as basically culture helps in building positive environment in the organization. In case of Ryanair Airlines, it follows power culture which assists the employees to do their task effectively. In power culture, all the decisions are made quickly and are implemented well as this gives motivation to the workforce to do their job effectively. Even this type of culture builds strong relationship between the superior and subordinate. This further has positive impact on the performance of workers (Nuttin, 2014).

1.3 Asses the factors that influence individual behaviour? Why manger should understand individual behaviour

Individual behaviour is influenced by factors at the work place which are as follows:

Leadership

This factor highly impact the performance and the behaviour of workers. The leaders are the one who gives direction to the employees. In case of Ryanair Airlines, employees have strong relationship with their leaders which have positive impact on their behaviour (Wilson, 2014).

Effective communication

If communication between the employees and subordinate is not proper, then it will affect the behaviour of the employees. The worker will become less attentive which will further affect the productivity.

Personal life

Employees work basically to achieve its personal goal. If he is facing any problem in his personal life, then it will reflect negatively in its behaviour. This factor has major impact on the behaviour of manpower (Griffin and Moorhead, 2013).

It is very important for Ryanair Airlines manger to understand the individual behaviour of the employees. They are the one because of which the company is able to earn profit. By understanding the behaviour of employees, manger can easily adopt strategy to motivate their human resource. By understanding the behaviour, manger can help the employees in its task and wherever the worker requires help. Even it can build loyalty in the employees towards its organization (Beck and Cowan, 2014). This is beneficial for Ryanair Airlines as loyal workers are asset for the company which help in making the organization successful.

2.1 Explain organizational theory and scientific management. Discuss their contribution in management

Organizational theory plays an important role in helping the management to become effective. Neoclassical theory helps the organization to consider different aspects of the employees in order to make the work in the organization. This theory emphasizes on psychological aspect of the human behaviour. It stresses on the human relations with their subordinates (Langton, Robbins and Judge, 2012). In case of Ryanair Airlines this organization theory is adopted it helps the management of the organization to effectively manage its employees. Further, this theory states that, employee’s social needs along with economic needs. It assist in fulfilling the needs of the human resource by motivating them and giving them positive environment. Scientific management theory is emphasizes on increasing the efficiency and productivity of the employees. It is directly associated with the performance of the human resource. Scientific management stresses on training and development of employees. Further helps in building the coordination among the workers (Carroll, Levy and Richmond, 2008).

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Fayol has given principles of management which effectively help the management to manage their workforce. The most important principle which is followed by Ryanair Airlines is the division of labour. In this the employees are divided according to their expertise and according to their skills, they are given the responsibility. Second principle which is adopted by Ryanair Airlines is authority in which the manger has the authority to give orders to their subordinates (Allen and et.al., 2013). This assists the management to manage their workforce and increase productivity of their workers.

2.2 Compare the leadership styles of two mangers

In case of Ryanair Airlines the leadership style followed by the company is autocratic style. In this style, all the power lies in the hands of leaders and employee are not involve in the decision making process. Role of the manger is to give orders to their subordinate and employee’s role is to fulfil their responsibility. This style is beneficial because as it helps in making quick decisions (5 Different Types of Leadership Styles, 2015). At the time of implementing strategy, this style is the most effective one which can be adopted by the organization. On the other hand, in case of virgin airlines it follows democratic leadership style. In this style, superior involve its employees in the decision making procedure. In this type of leadership style equal opportunity is given to every individual to give their opinion in the decision of the company. This style has proved effective for the organization because, with the help of this leadership style the individual decision making power has been increased and they have become skilled (Shahnawaz, and Jafri, 2009). These two styles are different from each other but still they are playing major role in making the company profitable. In case of similarity, the power is in the hands of the authority and they are the only one who assigns roles and responsibility to their employees.

2.3 Evaluate different approaches to management used by two organizations

Approaches of management give direction to the organization in managing the employees of the organization. The management approach adopted by the Ryanair Airlines is decision theory approach. This approach focuses on the quality of the decision made by the employees (Bloisi, Cook and Hunsaker, 2007). The human resources are judged on the basis of the decision which they make in the organization. As Ryanair Airlines follows the power culture and the power is in the hands of subordinates, by considering this they are given various tools which helps them in making decision of the company. In this approach, management studies all the factors which affect the decision of the organization. But one limitation of this approach is that the management cannot be judged on the basis of decision making (Parikh, 2010). There are many aspects which have to be considered for judging the management.

On the other hand, virgin airlines follow social system approach. This approach emphasizes on achieving goals by understanding the behaviour of employees. This theory stresses on building cooperation among the employees. It states that the best organizational goals can be achieved by harmony between company objective and the employees (Golembiewski, 2000). The main limitation of this approach is that is a very broad concept so it becomes impossible to judge the management.

3.1 Impact of leadership style on motivation of mangers and staff at the time of change

Motivation and change both are important for the workers as well as the organization. At the time of change, motivation of the workers goes down which affect the performance and the productivity of employees. So at that time it is important for the management to adopt the accurate leadership style which reduces resistance to change and motivate the employees. In case of Ryanair Airlines the major change is witnessed in the policies of government. Government makes many policies which are unfavourable for the managers. In this particular time, leaders should follow that leadership style which is favourable for their mangers (Muondo and Perkins, 2013). In this situation, leaders are the one who motivate their workforce and further assist the employees to retain in the organization. In Ryanair Airlines the leaders have to change the leadership style as they should adopt participative style which will help the employees to become more loyal to the company. Leaders are the one who gives direction to its employees and guides them. In that case it can be said that leadership style significantly impacts the motivation of mangers.

Leaders are the one who provide them emotional support in hard times. So it is very effective for the leaders to adopt that style which makes the employees motivate to do their work (Brewis, 2007). Leadership style has great influence on behaviour of individual. It is suggested that, in hard times Ryanair Airlines should adopt democratic leadership style.

3.2 Compare different motivational theories

Motivational theory helps in motivating the employees to do their work effectively and efficiently. Theory is the medium through which the mangers understand the needs and demand of the employees who are working in the organization. The motivational theory which can be applied in Ryanair Airlines is Maslow hierarchy theory. This theory states that there are different motivational levels which determine the satisfaction level of the employees (Tohidinia and Mosakhani, 2010). It starts with psychological needs, safety needs, esteem and last is the self actualization need. By applying this theory, the management can identify the level at which the employees is working in the organization. According to its level, Ryanair Airlines can make strategy to fulfil the requirement of workers.

Another theory which can be applied in Ryanair Airlines is the Herzberg two factor theories. This theory states that, there are some of the factors which are present in the organization which leads to job satisfaction. These factors can be divided as motivating factor and hygiene factor. Motivation factor are basically recognition, job responsibility etc. The department managers are the one who require things for increasing their motivation. Hygiene factors are job security, salary etc. These are basically the requirements of lower management, as they are motivated if their salary is increased (Hoseyni and et.al., 2014). It can be effective in Ryanair Airlines but first the company has to identify the requirement and then it should take step in satisfying the need.

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3.3 Evaluate the usefulness of motivation theories for managers in Ryanair Airlines

Motivational theories are very helpful for the management as they provide the way to the management for encouraging the employees. With the help of these theories, management can easily identify the motivational factor through which they can motivate the employees. Motivation approach helps the manger to maintain the satisfaction level of employees. Even they help in retaining the employees of the organization (Newstrom, 2012). Through these motivation theories only Ryanair Airlines was able to retain the human resource in the organization during tough times. Motivational theories are not only useful for the employees but are very useful for the organization. Employee’s needs are fulfilled effectively and they become satisfied. Satisfied employees are the asset for the organization so it is ultimately beneficial for the organization.

Conclusion

From this report it can be inferred that, culture and structure plays a very important role in enhancing the performance of the employees. Further it can be concluded that, because of the power culture the decision making process of the airline is very fast. Even with the help of autocratic leadership, a strong relationship has built between the superiors and the subordinates. It can also be inferred that different leadership styles are followed in Ryanair Airlines and virgin airlines but still both the organizational are doing successfully good in their areas.

References

  • Allen, D. K. and et.al., 2013. How should technology-mediated organizational change be explained? A comparison of the contributions of critical realism and activity theory.Mis Quarterly.
  • Beck, D. E. and Cowan, C., 2014.Spiral dynamics: Mastering values, leadership and change. John Wiley & Sons.
  • Bloisi, W., Cook, C. W. and Hunsaker, P. I., 2007. Management and Organisational Behaviour. 2nd ed. MCGRAW-HILL Higher Education.
  • Carpenter, M. J. and Charon, L. C., 2014. Mitigating Multigenerational Conflict and Attracting, Motivating, and Retaining Millennial Employees by Changing the Organizational Culture: A Theoretical Model.Journal of Psychological Issues in Organizational Culture.
  • Carroll, B., Levy, L. and Richmond, D., 2008. Leadership as practice: challenging the competency paradigm.Leadership
  • Golembiewski, R.,2000. Handbook of Organizational Behavior, Second Edition, Revised and Expanded. CRC Press.
  • Griffin, R. and Moorhead, G., 2013. Organizational Behavior: Managing People and Organizations. 11th ed. Cengage Learning.
  • Hoseyni, S. N. and et.al., 2014. Effective Factors in Job Motivation of Faculty Members in Shahid Sadoughi University of Medical Sciences: an Application of Herzberg’s Motivation Theory.Iranian Journal of Medical Education.
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