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Unit Number: 3 Unit Title: Organisations and Behaviour REGENT COLLEGE BTEC Higher National Diploma in Business Assignment Brief

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Unit Number: 3

Unit Title: Organisations and Behaviour

REGENT COLLEGE

BTEC Higher National Diploma in Business

Assignment Brief

BTEC Higher National Diploma in Business

Unit 3: Organisations and Behaviour Regent College

2

Unit 3: Organisations and Behaviour

Assignment Cover Sheet

Assignment No:

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I hereby confirm that this assignment is my own work. I have identified and acknowledged

all sources used in this assignment and have referenced according to the Harvard referencing

system. I have read and understood the Plagiarism and Collusion section provided with the

assignment brief and understood the consequences of plagiarising.

Name: ...............................................................................................................

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(Your work will not be accepted without a signed copy of this authentication.)

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Learning Outcomes and Criteria covered by this Assignment

Summary of learning outcomes

To achieve this unit a learner must:

1. Understand the relationship between organisational structure and culture

2. Understand different approaches to management and leadership

3. Understand ways of using motivational theories in organisations

4. Understand mechanisms for developing effective teamwork in organisations.

Outcomes

To achieve each outcome a learner must demonstrate

the ability to:

1 Understand the

relationship between

organisational structure and

culture (LO 1)

LO 1.1 compare and contrast different organisational structures and

culture

LO 1.2 explain how the relationship between an organisation’s

structure and culture can impact on the performance of the business

LO 1.3 discuss the factors which influence individual behaviour at

work

2 Understand different

approaches to management

and leadership (LO 2)

LO 2.1 compare the effectiveness of different leadership styles in

different organisations

LO 2.2 explain how organisational theory underpins the practice of

management

LO 2.3 evaluate the different approaches to management used by

different organisations

3 Understand ways of

using motivational theories

in organisations (LO 3)

LO 3.1 discuss the impact that different leadership styles may have

on motivation in organisations in periods of change

LO 3.2 compare the application of different motivational theories

within the workplace

LO 3.3 evaluate the usefulness of a motivation theory for managers

4 Understand mechanisms

for developing effective

teamwork in organisations.

(LO 4)

LO 4.1 explain the nature of groups and group behaviour within

organisations

LO 4.2 discuss factors that may promote or inhibit the

development of effective teamwork in organisations

LO 4.3 evaluate the impact of technology on team functioning

within a given organisation

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Unit 3: Organisations and Behaviour Regent College

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Programme: BTEC Higher National Diploma in Business

Unit Number: 3

Unit Title: Organisations and Behaviour

Module Tutor: Stephen Fahey | Perry Ellis

Email: [email protected] |

[email protected]

Assignment Number: 1. Case Study

Distribution Date: 16/10/2013

Submission Date: 15/11/2013

Assessment Format: In this assignment you are going to use case studies on City College

and Enterprise to explore organisational structure and culture and also

examine different approaches to management and leadership and

theories of both organisations. There are five questions to be answered

and you should aim for a word count of 2500.

TASK 1

Define the word organisation culture and the various types of culture that are available to an

organisation stating advantages and disadvantages of each of them. Identify and describe the

different types of organisational structures and cultures and compare and contrast including an

argument for and against the structures of City College and Enterprise. (LO 1.1)

TASK 2

Explain the relationship between an organisation’s structure and culture and the effects that

both culture and structure has on an organisation’s performance. Citing examples from the

case study identify and examine in detail, the effects that both culture and structure has on the

performance of City College. (LO 1.2).

Assessment Type: Individual

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TASK 3

Define the word behaviour and identify the various factors that might influence the way

individuals behave at work. Using different examples from the case studies, discuss what you

would identify as the influencing factors in the way City College behave (LO 1.3).

TASK 4

Taking the case studies to support your discussion, compare the effectiveness of different

leadership styles in the two different organisations. Explain the various approaches to

management and leadership theories and their relationships to the way organisations are

managed and their importance. (LO 2.1)

TASK 5

From your understanding of the different approaches to management and leadership theories,

explain which of these theories you think that both City and Enterprise have adopted. Evaluate

the different approaches used by the City College and Enterprise. You may include examples

from other organisations to support your evaluation. (LO 2.2 & 2.3)

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Company A: City College

City College was formed in 2002 as a private college in North West London. It is now part of

City group plc. In 2012 city group had an estimated 2.5 million in revenue and employed

over 200 staff. In 2010 City group was acquired by new owner ship through a private

investor, named Mr Wakefield. City group PLC owns 19% of the private college market. All

organisations have mission and group’s mission statement is “To provide inclusive learning

opportunities for its students and to succeed in providing comprehensive higher education to

the local community”.

City College want to be the first name people think of when returning back to higher

education.

City College wants to create an organisation where its organisational structure and

culture can both help to build a sustainable college.

A mission statement can be used as a starting point to achieve a sustainable business.

City College as expanded recently on its objectives within its mission statement to make the

college a much more secure teaching establishment.

City college new mission statement now includes the following corporate objectives:

1. Be reliable

2. Be responsive

3. Understand learners needs

4. Be straightforward

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Elements at City College

The table below shows how the company is organised and the various support functions

needed: City College operates both in north and south London.

Important functions within City College

Operations

In general, City Colleges operations are:

Proving higher education for a diverse community

Producing English and Maths adult literacy classes

Gathering ideas to share across the company thus improving efficiency

Managing student learning through individual learning plans

Implementing sustainable courses for higher education

City College`s ‘operations’ can be split into three Departments:

Teaching operation: Staffs are involved with producing higher education courses that

are designed to be inclusive to all learners from diverse backgrounds.

Human Resource Department: This department is concerned with developing and

maintaining the college’s workforce. It is its aim to continue to provide personal professional

development to its entire staff. City College invested £1.1 in its North London branch in

facilities and new staff recruitment. This site now has 1500 students enrolled on higher

education courses. Operating improvements and growth do not happen by accident. City

Colleges encourages employees to come up with good ideas, so these can be discussed,

adapted and implemented throughout the business.

In 2005 City College won the number 1 college for education to work Awards 2005. City

College is aware its importance to increasing the opportunities for education in the local

community. Working with organisations such as Westminster council, City College are able to

provide more educational courses to the local community. Working with the Westminster

council, as allowed city college to encourage adults back into education and on the road to a

prospective career in business.

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Administration

Administrative people:

Solve administrative issues raised by students and internal departments

Liaise with the human resource manager and teachers

Ensure that the registers are kept up to date and students are informed of important

messages.

It is not unusual to find that administration staff to multi-skill and help support other

team members within City College.

Part of City colleges Culture is to have respect for all staff and support each other through

daily operations.

Support functions

Human Resources

City colleges Human Resources (HR) department focuses on the following areas:

Organisational Development including managing change, training and development

HR Operations including recruitment, selection and employee life cycle

HR Administration.

It aims to ensure that: City College values are shared across the company and employee

satisfaction is increased which in turn can drive and achieve a sustainable college. One area in

which HR is involved is recruitment. When a company recruits someone, selection will be

done by HR and the employing department working together. Induction and training are the

next steps. These are also managed by HR and the employing department. HR ensures that,

once recruited, staffs remains. Moreover, as people need to develop and maintain skills, HR is

usually responsible for staff development. Tarmac’s HR strategy ensures that its corporate

values are shared and maintained across the company. Employees are expected to follow its

four key corporate values. City College sees these values as essential for helping them to carry

out their work day in, day out; they guide us in our dealings with each other and with our

customers; ultimately, they are the bedrock of the culture of the company.’

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Strategy, Marketing and Technical

In business terms, strategy is a relatively new concept. Strategy, strategic development and

strategic management are key roles in their own right. Additionally, various managers and

levels of management are involved in many different ways. The management team undertakes

a review with the aim to improve the college functionally and to identify parts of the company

not performing as well as others.

Marketing

City colleges marketing team is involved in four key activities to help it achieve its mission

statement: • gaining insight into markets and student needs • applying this knowledge to

inform strategy development and marketing plans, and identify new product ideas and services

• managing the City College brand image and external communications through a broad range

of communication channels including public relations, advertising, website development, e-

marketing, brochures and exhibitions. • leading internal communications through the company

magazine, newsletters, intranet and conferences. Through its technical team, City College

constantly looks for new and innovative solutions, for example Foam Master.

Finance

No business can survive without cash or some form of credit, so to ensure it does not run out

of money, it needs to manage its finances properly. Any company with sales in the region of

£1 million is a big business and therefore relatively complex. The finance function of any large

business includes: • bookkeeping • accounting • credit control • finance • taxation •

management accounting • auditing.

Conclusion

Organisations like City College are no longer mere small private colleges and provide many

learning opportunities for many students. They are organisations that have serious objectives

tied to a commitment to achieving them. City College is also dedicated to working with the

local community. Working in a busy college environment like City College is varied. There

are many departments that work together, e.g. an admin assistant working with the Human

resource manager, who in turn works with a production controller.

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Company B: Enterprise

Introduction

For organisations to develop they require a direction. The people who manage the business

provide the direction. Taking responsibility for making decisions and running a business well

is a skill. Businesses place considerable emphasis on getting the right people with the right

skills into key posts. They need to ensure that these people have the opportunities to develop

decision-making skills. Enterprise Rent-A-Car (Enterprise) employs more than 75,000

employees and operates a fleet of cars exceeding one million vehicles worldwide. It has

become one of the foremost car-hire companies and is the largest purchaser of cars in the

world. Jack Taylor founded the company in St Louis in 1957. The owner had a simple belief:

‘Take care of your customers and employees first and profits will follow.’ This belief forms

the foundation of Enterprise’s four key business objectives of:

• Customer satisfaction

• Fleet growth

• Employee development

• Profitability.

These four business objectives link together:

• Enterprise does not sell a product. It provides a service – the use of a car. To deliver great

service Enterprise needs well-trained and motivated staff. As the company grows, it opens new

local offices and creates new opportunities for employees.

• Customers expect to be treated in a particular way by a service-orientated business.

Enterprise uses its Enterprise Service Quality Index (ESQi) to measure the quality of service it

provides. Satisfied customers will come back and give repeat business. They may also

recommend the service to others.

• This leads to growth of the business and greater profitability.

This case study focuses on leadership within Enterprise. It shows how its managers use a range

of management and leadership styles to support Enterprise’s focus on customers.

Leadership and management

Management involves control and organisation to get something done. In the course of

business, managers use many different skills. They:

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• Plan and organise people and resources

• Set and monitor budgets

• Control operations or services in order to meet customers’ needs.

The ability to manage is essential at all levels in the organisation. However, for a business to

excel, leadership is vital. A leader is somebody who sets the direction and inspires other

people. A leader is able to influence others in meetings or when making decisions. This helps

to achieve the goals of the organisation. Enterprise has leaders at all levels of its business, not

just senior management. Some people are natural leaders. For example, the captain of a school

football team will probably have the ability to influence others. Leaders can also develop

through training and education.

Leaders are also managers. For example, an Enterprise General Manager leads a regional

group of City Managers. City Managers are leaders of their front-line management employees.

Andy Taylor, the current Chairman and Chief Executive Officer (CEO) of Enterprise, was a

manager for his father Jack Taylor. He carried out the processes and systems his father set up.

Today, Andy leads and manages the business. There are many different management styles.

These styles influence how leaders communicate with employees. For example, Enterprise

operates an ‘open door’ policy. This enables everybody within the organisation to have direct

contact with senior managers. This might be through meetings or having lunch in the same

dining area. The CEO Andy Taylor is following the values set by his father by making

opportunities for employees to meet and talk to senior managers. This shows an informal style

and a lack of hierarchy. Enterprise puts a high value on teamwork and open communication

between employees at all levels. Managers have their own preferred management style. Some

prefer an autocratic style where they tell employees what to do and how to do it. Others prefer

a democratic style where they help their team to discover solutions to problems for

themselves. However, the management style must change to fit the circumstances. Some

decisions must be made at the highest level. For example, a manager would need to give

immediate instructions on a health and safety issue or in a fire. However, if changing an office

layout, the manager could leave the team to investigate and decide on the solution for

themselves.

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Enterprise employs motivated individuals with the potential to become good leaders. When

recruiting, Enterprise looks for leadership qualities in candidates. It considers leadership to be

a core competence. It recognises that the skills and capabilities to lead others are essential for

business growth. Recruits learn how to run parts of the business. The focus is on making

decisions that improve customer service. General Managers are empowered to make decisions

covering a region. Branch managers have the authority to deliver good customer service

locally. Each local branch operates like a small business. Managers make decisions that

support the needs of their customers. Front-line management trainees are encouraged to use

the best management style to suit different customers. An autocratic style of leadership is

when a leader makes a decision alone. The leader conveys the decision to staff and they have

to work within the scope of that decision. For example, in order to deliver good customer

service, managers instruct all staff to follow Enterprise’s guidelines for dealing with

customers.

Douglas McGregor in 1960 used the terms Theory X and Theory Y to identify two very

different forms of management style: • A Theory X manager tells employees what to do and

supervises their work. This involves using strict controls within the business. This reflects an

autocratic style. • In contrast, a Theory Y manager believes employees want to do well. The

manager provides individuals with the opportunity to take control of their work. They can

contribute towards solving a problem or issue. This helps motivate them to do better.

Enterprise needs its employees to use their skills to deliver high levels of customer service.

This means an autocratic management style is inappropriate in daily routines. A branch

manager sets the standards for the team but encourages team members to be flexible and

responsive to each customer. This ensures that customers get the service they expect.

However, there are many examples of autocratic style in use at Enterprise. These relate to

issues which affect the whole organisation or which are central to the business. For example: •

Andy Taylor insisted all branches use ESQi, the customer satisfaction measure, because it met

the business objective. In order to gain commitment to using the process, employees had the

prospect of promotion when they achieved high scores. This was a big motivator for staff. •

When the Senior Vice President of European Operations at Enterprise decided on the

company’s diversity programme, employees were clear that this decision was compulsory and

not an option. • The Vice President of Corporate Communications for Enterprise established

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an environmental committee. Its aim was to influence the behaviour of the whole organisation

by reducing waste and improving its carbon footprint.

As the industry leader, Enterprise attempts to set high standards when it comes to the impact

of rental cars on the environment. In contrast to the autocratic style, Enterprise uses

democratic decision-taking in many parts of the business. Everyone has the opportunity to

contribute ideas to the decision. There are two types of democratic decision-making:

1. Persuasive democratic management – here the leader makes the decision first and then

persuades employees that he or she has made the right decision.

2. Consultative democratic management – this involves the group contributing to the decision

making process, with the leader making the final decision.

The team is central to delivering good customer service. The consultative approach helps

Enterprise achieve this business objective. Enterprise operates through an extensive network of

local offices. Branch managers and their staff need to make decisions to meet the changing

needs of customers in a fiercely competitive market. Each office operates with a large degree

of autonomy. This means that, in many areas of operation, local offices have the power to

govern themselves and make changes without referring to senior management. They use

different management styles with customers on different occasions. Examples of incidents

they may have to deal with include: • A car has been in an accident and a customer needs a

hire car urgently. Local managers take a consultative approach to understand the issues and

find the right solution for customers who might be upset or worried. • A customer wants a

vehicle for a weekend break. Branch staff will be more authoritative in recommending a

specific vehicle to suit their needs. This helps to satisfy this customer and ensure repeat

business.

This independent approach enables Enterprise employees to have ownership of many of their

activities. This acts as a motivator for staff. In 1943, Abraham Maslow, looking at motivation,

identified a hierarchy of needs for individual employees. Everyone has needs for water, food,

warmth and safety. These have to be met before a person can move on to fulfilling their higher

needs. When employees are empowered to make decisions, this improves their sense of worth

and self-esteem. It also helps them to use creative skills within their role and motivates them to

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perform better. Making decisions at a local level helps to meet customers’ needs and enables

individuals to take a pride in their job. This recognises that employees are motivated by factors

other than financial ones. These include praise, recognition or having more responsibility.

Enterprise’s emphasis is on satisfying customers to grow the business. It also rewards hard

work. To increase motivation, employees who achieve high levels of customer satisfaction

have the opportunity of promotion. In addition, staff who performs well or who make the

biggest improvement are recognised through the Enterprise newsletter or by membership of

the Enterprise ‘Elite Club’. This reinforces self-esteem.

Conclusion

Management is about getting things done. Leadership is about achieving goals by creating a

direction for a business and inspiring employees to take initiative and make the right decisions.

Enterprise managers need the skills to motivate, lead and influence others. Enterprise aims to

employ people who can take on a leadership role and help to grow the business for the longer

term. Its management and training programmes help to provide employees with the skills

necessary to lead others. This case study illustrates that within a business, there are leaders at

different levels within the hierarchy. Depending upon the circumstances, leaders will use

different leadership styles. By developing leaders who are able to make decisions at a local

level, Enterprise can respond more closely to customer needs within a competitive service

industry. Its high levels of customer service provide it with competitive advantage over its

rivals.

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Programme: BTEC Higher National Diploma in Business

Unit Number: 3

Unit Title: Organisations and Behaviour

Module Tutor: Stephen Fahey | Perry Ellis

Email: [email protected] |

[email protected]

Assignment Number: 2. Case Study

Distribution Date: 16/10/2013

Submission Date: 31/01/2014

Assessment Format: In this assignment you are going to use the case study on Egg

Company and the Taylor Woodrow company to examine the

relationship between different motivational theories and demonstrate

an understanding of working with others, teamwork, groups and group

dynamics. There are six questions to be answered and you should aim

for a word count of 2500 words.

Assessment Type: Individual

Task 1

Identify the difference leadership styles that are available and discuss the impact that

different leadership styles may have on motivation at the time of a change at Egg and Taylor

Woodrow’s workforce. (LO 3.1)

Task 2

Compare the application of the different motivational theories adopted by the two

organisations, Egg and Taylor Woodrow’s workforce. (LO 3.2)

Task 3

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Evaluate how has the management of both Egg and Taylor Woodrow’s workforce applied

these motivation theories and practices in the company and what benefits, if any, have the

companies derived from their chosen motivation practices (LO 3.3)

Task 4

Explain the nature of groups and group behaviour within Egg and Taylor Woodrow’s

workforce (LO 4.1)

Task 5

Identify with examples the various factors that could make a team effective and also those

factors that may be likely to threat the success and effectiveness of a team. With reference

to the case studies, discuss to what extent you believe that these factors have impacted on the

effectiveness of the teamwork of the organisations (LO 4.2)

Task 6

Explain the role of technology in the success of a business that you know. In view of your

argument, evaluate the impact of technology on the performance of Egg’s and Taylor

Woodrow’s company teams and groups and the company’s overall performance (LO 4.3)

Assessment Type: Individual

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Company A: Egg

Egg is the world’s largest pure online bank, established in 1998. It has a reputation for

innovation in financial services and was set up in response to consumer demand for a more

flexible approach to banking. Today it has more than 3.7 million customers. Egg is best

known for its credit card business, but it also offers loans, savings accounts, investments,

mortgages and insurance. Egg’s enduring purpose is ‘to revolutionise customers’ experience

of financial services driven through unleashing the power of people’. This is like a mission

statement, in that it defines the way the company carries out its business. Egg knows its

performance will determine its success in winning and keeping the confidence of its

customers. It is apparent from Egg’s enduring purpose that it believes in the ‘power of

people’. First-rate performances by Egg people offer a first-rate service to its customers.

When customers receive a great service, they will tend to buy more. This in turn will lead to

greater shareholder value. Egg believes it is advantageous to build a strategy of motivation

into its culture. Motivation is seen as essential and has been made part of the fabric of the

company, known as ‘Egg DNA’.

In essence, motivation is the art of getting people to do things because they want to, or

because they see some benefit. At its most crude, motivation in the workplace is linked to

pay. It has subsequently been proved that pay is not the only motivator and in certain

circumstances does not act as one at all.

MOTIVATION

For Egg, motivation is about creating an environment where its people:

Are involved in planning, performing and achieving for themselves, customers and

Egg.

Have a great relationship with their manager who knows what they want to achieve in

their working life.

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Feel empowered and ‘unleashed’, so they have the power to create change, reach their

potential and deliver excellent customer service.

Enjoy their work and have opportunities to improve themselves and their role.

Are recognised and rewarded for the effort they put into making Egg successful.

However, Egg also recognises that all the ‘hygiene factors’ which affect motivation need to

be in place and work effectively. For example great emphasis is placed on creating an

atmosphere which is conducive to working creatively and powerfully and ensuring that

people’s salaries are paid on time. Egg’s approach builds on much of the theory described

below. Egg aims to understand its people as much as possible and to get the best out of them.

By meeting the needs of the individual – and giving them ownership and the power to make

decisions – Egg ensures that the needs of the business are met. At Egg the role of the

manager is vital in ensuring its people are motivated. The management cycle is continuous –

managers plan and organise work. They then, in conjunction with their people, distribute the

work in such a way that, wherever possible, everyone is undertaking work which motivates

them and that they enjoy, and therefore delivers a better result for customers and

shareholders. Egg makes sure that each manager knows his or her own people well through

training called ‘know yourself, know your people’. It recognises that every individual is

unique and the way in which they behave is driven by a number of factors. Understanding

how these factors can be harnessed to reach both Egg’s and the employee’s target is of utmost

importance.

Over the years, many theorists have tried to discover what motivates people. The most well-

known are Taylor (1856-1917), Mayo (1880-1949), Maslow (1908-1970), McGregor (1906-

1964) and Herzberg (1923-2000). Of course, motivation is so important that new theories are

constantly being developed (Egg, for instance, uses McClelland’s Three Social Motives)

but these are all built on the work of the early theorists. The first of these is FW Taylor’s

Scientific Management Theory. Taylor was an American who worked with Henry Ford and

may be said to be responsible for the first production lines. He believed money was the only

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motivator and that there should be a ‘carrot and stick’ approach. This means that for those

who worked hard enough there would be rewards, but for those who didn’t penalties would

be imposed. Other theorists realised that this was not always the way to get the best out of

people.

Elton Mayo did not accept that money was the only motivator and he carried out the

Hawthorne Experiments at a plant in Chicago to try to discover what really drove people.

His Relay Assembly Test proved that workers were inspired by directing their own work,

working in teams and having a good relationship with management. He concluded that the

main reason his subjects’ work rate increased was because they were being studied. Having

someone show an interest in you is, in itself, a motivating factor. He also found that people

were driven when working in teams. People are also influenced by their own aspirations and

by friendship groups and managers can use these to assist in motivation. What Mayo called

the psychological contract refers to the unwritten understanding between the employer and

the employee – each knows what is expected of them. This can be built on to ensure that the

workers and the business are reaching their potential.

AH Maslow was an American psychologist who believed that people worked in order to

obtain certain things. He established a ‘hierarchy of needs’, as shown in the figure, stating

that people would endeavour to reach each need in order, starting from the bottom. Once

they had reached a level, they would then strive to achieve the next one. Douglas McGregor

studied how employers and employees could each have a view of work. He called the

traditional way of working Theory X. Here, the employer pays the money, supervises the

worker and gives instructions; the worker does the job, asks no questions and accepts the pay.

This he balanced with what he called Theory Y. This is where most people are satisfied with

their employment and take responsibility. McGregor believed that most workers are the

Theory Y type and that if people could be treated this way, firms would be more efficient.

Frederick Herzberg came to similar conclusions to Mayo. Asking workers what motivated

them, he ascertained that the main things were a ‘job well done’, a feeling of being

appreciated, trust, responsibility and specific rewards, such as being promoted.

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Certain conditions, which Herzberg called ‘hygiene’ factors, were de-motivators if they were

missing or inadequate. Pay and working conditions are two of the main ones, meaning that

satisfactory surroundings are not necessarily motivators, but inferior environments are

certainly de-motivators. Mayo’s theories and conclusions are particularly important at Egg.

He commenced from the idea that the better the relations between management and their

teams, the more efficient the business would be. Working agreeably is linked to being

contented, and satisfaction comes from the employee knowing s/he is appreciated. This is

why Egg places so much emphasis on managers knowing their people well in order that they

enjoy their work and are putting in every effort because they want to. Egg believes that to

motivate people it is important to balance the needs and wants of the company with those of

the individual.

This refers to what the individual wants from their working life. It is discussed in a ‘Know

Your People’ conversation between the manager and the employee. This conversation is an

important opportunity for the employee to talk about what motivates them, what they enjoy

doing and what their future aspirations are. Egg endeavours to ensure these needs can be

reached by, wherever possible, matching them into a role which takes account of what they

want to achieve and thus ‘unleashing their power’. Each person has different levels of

aspiration. For example, an ambitious graduate may have different goals and needs to a part-

timer with young children or someone nearing retirement.

This is something each manager knows through the dialogue they have with their people.

Taking this approach leads to Egg being a motivated organisation with motivated people. Egg

believes that the aims of the company (known at Egg as the ‘Egg Game’) can be delivered

through clear responsibilities and targets (known as accountabilities and objectives). When

the accountabilities and objectives have been formulated by the manager she/he will have a

further conversation with each team member to agree these. They talk about what the

employee brings to the job and the knowledge s/he can acquire and use. Egg recognises that

everyone has different training and development needs and ambitions which will enable them

to be successful in their particular role and at Egg in general. The framework used for this is

called Egg DNA and is made up of:

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The specific, special or technical skills/knowledge a person brings to the role (e.g. an

accountant would need specific accountancy knowledge).

The attitudes a person displays in relation to what is being asked of them (e.g. being

passionate about the role and about what Egg is want to achieve).

The non-technical skills individuals need to do their job (e.g. communicating

powerfully).

Egg plans to enhance and improve these qualities and skills through training and coaching the

individual to be the best they can in the role they are undertaking. Egg hopes that motivated

people who enjoy their work will encourage their family and friends to apply for jobs when

they become available. It runs a scheme which rewards people financially for this called

‘Bring a Friend to Egg’.

Conclusion

The success of Egg is connected to the way it treats its people. Its enduring purpose sets out

what it wants to provide as an organisation and where its targets lie. This includes having

satisfied and well-motivated people who strive to deliver an excellent service for customers

thus achieving greater shareholder value. By achieving these aims, both the organisation and

its people get what they require. This is what mayo described as a psychological contract.

Company B: Taylor Woodrow

Taylor Woodrow plc employs around 6,000 people worldwide. Its primary business is house

building. In the UK it builds homes through its Bryant brand and also has housing

operations in the USA, Spain, and Gibraltar and in Canada, through its Monarch brand. It

offers property development expertise UK wide through its network of regional offices. Its

construction business is focused on activities such as Private Finance Initiative, Facilities

Management and specialist engineering consultancy. Together, Taylor Woodrow’s

combination of skills in house building, property and construction give the company a

powerful competitive edge in the area of urban regeneration and Brownfield development.

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The Taylor Woodrow way of working

Like people, organisations have distinguishing characteristics. These usually feature in an

organisation’s vision and culture. An organisation’s vision statement describes what it sets

out to achieve. Such a statement needs to be: Believable’ feasible, and inspiring (to those

involved in the company). Taylor Woodrow’s vision is: “To be the leading developer of

living and working environments in the UK and other chosen markets’’ An organisation’s

culture is the network of relationships and patterns of behaviour within the organisation –

what the Americans refer to as “the way we do things around here”. Taylor Woodrow’s

culture is based on seeking: “To ensure that its companies and employees continue to

improve and develop in a culture of excellence”.

This places Human Resource Development at the centre of the company’s culture. Besides

having a strong people focus to the way it operates, Taylor Woodrow also has a strong

customer emphasis, and the teams of people working for the organisation continually strive

to exceed customer expectations. Taylor Woodrow wants its customers to feel certain that

they can rely on it to deliver products and services (e.g. a new house) at the agreed price and

to the highest standard. Employees therefore play a key role in enhancing shareholder value

to the benefit of the Group and its stakeholders. Most of Taylor Woodrow’s competitors are

other large house builders. Its Unique Selling Point (USP) that sets it apart from rivals is the

skill base of its workforce and the fact that it can meet just about every engineering need

from within the company.

A major problem facing UK housing and construction projects is a shortage of available

Greenfield sites at a time when demand for property continues to rise. A major strength of

Taylor Woodrow is its expertise in developing complex Brownfield sites (on reclaimed land

that once might have been an industrial area) using integrated teams of specialists brought

together for particular projects. Brownfield site development includes remediation: the

removal of toxic waste so that the environment is safe for people to live in. This is a highly

complex operation. When working on these complex projects it is essential that the

workforce is familiar with corporate objectives in order to enhance company performance

and thus gain competitive advantage.

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Taylor Woodrow’s workforce

One common misconception is that house builders only employ people like bricklayers and

labourers. Taylor Woodrow does employ these skilled tradesmen, some of whom are sub-

contracted: brought in from other firms as and when required. However, Taylor Woodrow’s

core employees also include:

Quantity Surveyors and Commercial Managers

Business Development Managers

Project, Estate and Land Managers

Architects and Interior Design specialists

Civil Engineers

The usual promotion route is for specialists in these areas to become managers. Today, the

company is looking at taking on more generalists such as business graduates who can then

train to become managers. In addition, Taylor Woodrow employs central services staff

including Human Resource specialists and people working in Finance, IT, Sales &

Marketing.

Individual performance and corporate objectives

Performance management is an HRD process concerned with getting the best performance

from:

Individuals

Teams

The organisation as a whole

Effective performance management involves sharing with employees an understanding of

what needs to be achieved and then managing and developing people in a way that enables

these shared objectives to be attained. Ideally, an organisation will have all of its employees

‘pulling in the same direction’ and ‘singing from the same hymn sheet’. Supporters of this

HRD approach argue that this two-way process can be effective only where there is a clear

psychological contract between employers and employees based on mutual trust and

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Unit 3: Organisations and Behaviour Regent College

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commitment. The Taylor Woodrow group is committed to a Performance and Development

Review process for all employees, departments and companies. In an individual Performance

Review, a manager and a fellow employee sit down together to: agree on meaningful task

objectives for that employee and for the team(s) within which he/she operates identify

individual development needs and aspirations

In preparing for such a review, individuals write down their career aspirations and training

and development needs, as well as their successes in meeting previous targets and objectives.

Managers will read this prior to the Performance and Development Review and also plan

ways of communicating to the employee the various objectives of the local management

team (and how they support Taylor Woodrow’s wider objectives) that are particularly

relevant to that individual. It is then possible at the review meeting to identify the successes

of the individual in attaining previously decided objectives, and to identify new targets.

With such a system in place, it is possible to establish for a period of time ahead the Key

Result Areas against which an individual’s performance will be assessed. In this way,

performance is measured against agreed standards. Salaries and bonus payments then reflect

the success of each individual’s performance based on a rating system.

Taylor Woodrow believes that the effective management of individual performance rests on

managing the performance cycle, which is an ongoing process of performance planning,

support and review. The planning stage involves agreeing the objectives. The supporting

stage involves identifying development needs and how these can be addressed, and then the

manager giving ongoing coaching, feedback, and support. Reviewing performance involves

both informal employee/manager discussions and a formal Performance Review tied to the

reward process. Each employee receives two formal Performance and Development Reviews

each year. A January review establishes objectives for the coming calendar year. An

interim July review then examines any further development needs of the individual and the

teams within which he/she works. It is essential for managers to feel that they ‘own’ this

process and fatal if they see it only as a chore. Properly carried out, the system can operate

at every level within a company.

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Unit 3: Organisations and Behaviour Regent College

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The Performance Review process encourages even the humblest employees undertaking the

most routine of tasks to support the company by accepting greater responsibility for their

own actions. For example, a mailroom worker used his own initiative to ensure that

outgoing mail posted on a Friday was sent 2nd

Class. His reasoning was that no receiving

firm would read it until Monday, so why waste the company’s money on next-day delivery?

This constructive move continues to save Taylor Woodrow considerable sums annually.

Motivation, performance and pay

In the UK, there is a movement towards relating pay and promotion to measured

performance. The PRP (Performance Related Pay) approach is based on a philosophy of

agreeing: the key results areas of the job clear standards of performance and target levels of

competence regular, objective reviews of performance and competence. In 2000 a Taylor

Woodrow survey of its employees showed that 94% favoured a Performance Review and

Pay Review Cycle. This is typical of many companies, where employees prefer objective

standards for measuring their performance rather than rely on the subjective views of their

line manager. Individual rewards for employees are therefore based upon: the Group’s and

the individual company’s overall business performance and ability to pay each individual’s

contribution to the company’s success the level of salaries and benefits necessary to attract

and retain people, taking into account competitive salary arrangements elsewhere

The Performance Review examines:

The level of skills, competencies and knowledge an employee demonstrates in his/her

particular role the degree to which set objectives have been achieved. These are documented

and evidence is provided. Employee rewards are then tied to this Performance Review,

which is rated using a scale of 1 to 5, with 5 being the highest. Bonuses and salaries are then

related to this rating, after consideration of company financial performance. Where

employees have skills that are in short supply, the review also considers wages being paid

elsewhere for similar work. Salary increases based on the past calendar year’s performance

are effective from April 1st. Bonus payments in respect of the previous year are paid at the

end of March. A major aim of the company’s Performance and Development programme is

to create commitment and motivation at all levels of the organisation; by the organisation

itself, managers, and all employees.

BTEC Higher National Diploma in Business

Unit 3: Organisations and Behaviour Regent College

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Assessment Criteria:

P1-P12 Pass Criteria

M1-M3 Merit Criteria

D1-D2 Distinction Criteria

To Achieve a Pass

To gain a pass grade you must attempt all three assignments and you must satisfy the pass

criteria as outlined below.

LO 1.1 compares and contrast different organisational structures and culture (P1)

LO 1.2 explain how the relationship between an organisation’s structure and culture can

impact on the performance of the business (P2)

LO 1.3 discuss the factors which influence individual behaviour at work (P3)

LO 2.1 compare the effectiveness of different leadership styles in different organisations (P4)

LO 2.2 explain how organisational theory underpins the practice of management (P5)

LO 2.3 evaluate the different approaches to management used by different organisations (P6)

LO 3.1 discuss the impact that different leadership styles may have on motivation in

organisations in periods of change (P7)

LO 3.2 compare the application of different motivational theories within the workplace (P8)

LO 3.3 evaluate the usefulness of a motivation theory for managers (P9)

LO 4.1 explain the nature of groups and group behaviour within organisations (P10)

LO 4.2 discuss factors that may promote or inhibit the development of effective teamwork in

organisations (P11)

LO 4.3 evaluate the impact of technology on team functioning within a given organisation

(P12)

BTEC Higher National Diploma in Business

Unit 3: Organisations and Behaviour Regent College

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To Achieve a Merit

To gain a merit grade you must achieve all the pass criteria and in addition you must satisfy

the criteria as outlined below.

Identify and apply strategies to find appropriate solutions through effective judgement (M1)

Select/design and apply appropriate methods/techniques. You are judged on the application

of relevant theories and techniques and the justification for their application (M2)

Present and communicate appropriate findings. This includes the use the appropriate structure

and approach with coherent, logical development of principles/concepts for the intended

audience (M3)

To Achieve a Distinction

To gain a distinction grade you must achieve all the pass criteria and all the merit criteria

and in addition you must satisfy the criteria as outlined below.

Use critical reflection to evaluate own work and justify valid conclusions including realistic

improvements which have been proposed against defined characteristics for success. (D1)

Demonstrate convergent / lateral/creative thinking by showing evidence on receptiveness to

new ideas and effective thinking in unfamiliar contexts. (D2)

Take responsibility for managing and organising activities including accommodating the

unforeseen and recognising the importance of interdependence. (D3)

Your subject tutor will be able to give you general guidance and feedback on improving your

work however it is your responsibility to seek feedback from the subject tutors on the above

criteria for you to achieve the intended grades.

BTEC Higher National Diploma in Business

Unit 3: Organisations and Behaviour Regent College

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Support materials

Textbooks

Brooks I — Organisational Behaviour, Individuals, Groups and Organisation 2nd Edition

(Prentice Hall, 2003) ISBN: 0877781265

Huczynski A and Buchanan D — Organisational Behaviour: An Introductory Text (Prentice

Hall, 2000) ISBN: 0273651021

Maccoby M — Why Work: Motivating and Leading the New Generation (Simon and Schuster,

New York, 1998) ISBN: 067147281X

(Outlines the changing nature of the workplace and categorises people into five types, giving the

characteristics and sources of motivation and demotivation of each.)

Mullins L — Management and Organisational Behaviour 5th Edition (Pitman Publishing,

London, 1999) ISBN: 0273651471

Robbins S — Essentials of Organisational Behaviour 4th Edition (Prentice Hall International,

2003) ISBN: 0582820758

BTEC Higher National Diploma in Business

Unit 3: Organisations and Behaviour Regent College

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Plagiarism and Collusion

When producing the assignments, Learners must not copy any material whole or part from

fellow students intentionally or unintentionally. Any materials including phrases, paragraphs,

diagrams, tables, charts or graphics copied from books, journals, web sites or any other

sources must be properly referenced according to the Harvard referencing system. Even if the

words are changed or altered learners must clearly reference the source. Learners are required

to produce a ‘Turn-it-in’ originality report for any coursework, essays submitted for

assessment. Any assignments submitted without a ‘Turn-it-in’ report will be refused and

returned without marking.

Collusion: Unless stated otherwise, you must not produce assignments in collaboration with

fellow students where the assessment is based on the individual work. Such material will be

refused by the assessor and you will receive no mark. You must not share your individual

assignments with fellow students and in an event both lender and the receiver will be

disqualified for the assessment.

Plagiarism and Collusion is seriously dealt with in accordance with the regulations at Regent

College and any learner who fails to produce an original piece of work may be disqualified of

taking the assessment and may have to repeat the unit.

Please visit the link http://www.regentcollegelondon.com/Policies.asp to read our Academic

Misconduct Policy for further information on above. You can also access this policy by

accessing VLE.

Extension and Late Submission

Please visit the link http://www.regentcollegelondon.com/Policies.asp to read our Assessment

Policy in order to acquire information concerning the above matter. You can also access this

policy by accessing VLE.

Attendance and Punctuality

Attending all your sessions is vital for your studies. We expect students to attend 100% of

your classes. Please visit the link http://www.regentcollegelondon.com/Policies.asp to read

our Attendance Policy for further information on above. You can also access this policy by

logging on to VLE.

General Guidance

This unit is assessed on 100% coursework including your active participation in lessons. You

must submit both assignments to receive an overall mark.

BTEC Higher National Diploma in Business

Unit 3: Organisations and Behaviour Regent College

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You should plan well in advance on how to tackle this assignment. You should seek

knowledge outside the classroom lectures and activities to gain maximum learning outcome.

You should access recommended supporting materials as suggested and use the knowledge in

your assignments.

BTEC Higher National Diploma in Business

Unit 3: Organisations and Behaviour Regent College

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Programme: BTEC Higher National Diploma in Business

Unit Number and Title: Unit 3, Organisations and Behaviour

Module Tutor: Stephen Fahey | Perry Ellis

Learner name:

Information/feedback on assessment and grading criteria

Assessment criteria

(Pass-P)

Achieved

Evidence

Feedback

LO 1.1 compares and contrast

different organisational

structures and culture (P1)

Yes/No

LO 1.2 explain how the

relationship between an

organisation’s structure and

culture can impact on the

performance of the business

(P2)

Yes/No

LO 1.3 discuss the factors

which influence individual

behaviour at work (P3)

Yes/No

LO 2.1 compare the

effectiveness of different

leadership styles in different

organisations (P4)

Yes/No

LO 2.2 explain how

organisational theory underpins

the practice of management (P5)

Yes/No

LO 2.3 evaluate the different

approaches to management used

by different organisations (P6)

Yes/No

Feedback Sheet

BTEC Higher National Diploma in Business

Unit 3: Organisations and Behaviour Regent College

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LO 3.1 discuss the impact that

different leadership styles may

have on motivation in

organisations in periods of

change (P7)

Yes/No

LO 3.2 compare the application

of different motivational

theories within the workplace

(P8)

Yes/No

LO 3.3 evaluate the usefulness

of a motivation theory for

managers (P9)

Yes/No

LO 4.1 explain the nature of

groups and group behaviour

within organisations (P10)

Yes/No

LO 4.2 discuss factors that may

promote or inhibit the

development of effective

teamwork in organisations (P11)

Yes/No

LO 4.3 evaluate the impact of

technology on team functioning

within a given organisation

(P12)

Yes/No

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Unit 3: Organisations and Behaviour Regent College

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Grading criteria (Merit-M;

Distinction-D)

Achieved

Evidence

Feedback

Identify and apply strategies

to find appropriate solutions

through effective judgement

(M1)

Yes/No

Select/design and apply

appropriate

methods/techniques. You are

judged on the application of

relevant theories and

techniques and the

justification for their

application (M2)

Yes/No

Present and communicate

appropriate findings. This

includes the use the

appropriate structure and

approach with coherent,

logical development of

principles/concepts for the

intended audience (M3)

Use critical reflection to

evaluate own work and

justify valid conclusions

including realistic

improvements which have

been proposed against

defined characteristics for

success. (D1)

Yes/No

Demonstrate convergent /

lateral/creative thinking by

showing evidence on

receptiveness to new ideas

and effective thinking in

unfamiliar contexts. (D2)

Yes/No

Take responsibility for

managing and organising

activities including

accommodating the

unforeseen and recognising

the importance of

interdependence. (D3)

Yes/No

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Unit 3: Organisations and Behaviour Regent College

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Assessor’s general comments:

Assessor’s Signature: ...................................................................................................................

Print Name: ..................................................................................................................................

Date: ...................................

BTEC Higher National Diploma in Business

Unit 3: Organisations and Behaviour Regent College

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