Study Of Organizations Behavior

Formal and informal framework of policies and rules , within which an organization arranges its lines of authority and communications , and allocates rights and duties. Organizational structure determines the manner and extent to which roles , power , and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management . This structure depends entirely on the organization’s objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management.

‘Structure is the pattern of relationships among positions in the organisation and among members of the organisation. Structure makes possible the application of the process of management and creates a framework of order and command through which the activities of the organisation can be planned, organised directed and controlled.’

.Culture in Organizations

These are the informal values, norms and beliefs which control how individuals and groups in an organization interact internally and externally. This in turn shapes attitude and behavior and the quality of inter group relationships – again to achieve organizational goals.

Lateral Horizontal

Top

Vertical

Bottom

Values and Norms

Culture in organization has two founding values:

Terminal Value; is linked to desire goals e.g. excellence, quality, morality, stability, profitability.

Instrumental Value; is linked to desire modes of behavior for the organization e.g. hard work, tradition, respect for authority, risk taking, honesty, standards of service, dress code.

Norms; specific norms emerge as a result of shared experiences over time which became expectations for behavior. These result in rules for conduct e.g. courtesy, cleanliness, grooming, teamwork, information sharing, and cooperation.

The Source of Values & Norms

Edward Schein’s approach to culture claims that it can be understood at 3 levels.

Basic Assumptions: unconsciously learned responses based upon perception.

Values and Beliefs: consciously help concepts as a result of experiences.

Visible Artifacts: physical evidence e.g. office design, layout and dress code.

Cultural Dynamics

A set of beliefs and assumptions held commonly throughout the organization, taken for granted in that organization, but discernible to the outside observer in the stories of organization history and explanation of events.

Company Information

The Hong Kong Shanghai Banking Corporation (HSBC) group is one of the world’s leading financial organizations. It was founded in 1865 in china. Since then the bank expanded rapidly with an emphasis up representation in China and also other parts of Asia, Europe and America. In the mid 1950’s HSBC embarked on a strategy of pursuing profitable growth through acquisitions as well as organic development. After conducting my research into global business of HSBC bank, we have identified that London offers tremendous opportunities for HSBC which make businesses want to operate in those markets.

HSBC Culture

Operational Strategy: “The World’s Local bank”

HSBC differentiates itself from its competitors by its branding. The strong tag line – “the world’s local bank” reflects the HSBC approach towards powerful branding. This brand image has been the result of many years of investment in the company’s corporate image and culture that attracts and maintains satisfied customers and employees. HSBC’s understanding and experience of multiple markets and local knowledge have contributed towards its brand success. HSBC has branches in 76 countries and the strategy used is – “Think Global, Act Local”.

Corporate Social Responsibility:

HSBC like many other major companies from different industries believes in sharing its success by giving it back to the community. The application of corporate social responsibility is mandatory for all companies doing business. This being thought as a liability could also provide a company with the tools to promote its brand image with in communities. They are aware of the social responsibilities of economy management, community and environment. HSBC has undertaken activities such as environmental protection projects, successful and honest business practices, educational programs, undergraduate scholarships and funding local community projects. They also undertake volunteer charity and community work.

Human Resource Management:

HSBC employs over 284,000 people worldwide. They understand the benefits and competitive advantage of having a smart, loyal and well educated workforce. HSBC encourages workforce diversity in order to create the finest employee network and a corporate culture that celebrates differences, empathy and integrity. They employ the best qualified individuals, regardless of their nationality to manage top-level operations. However they employ local country staff to manage day to day and branch operations because they know they local business environment and this strategy also helps the foreign company be accepted by the local society.

HSBC Principles & Values

The HSBC Group is committed to five Core Business Principles:

Outstanding customer service

Effective and efficient operations

Strong capital and liquidity

Conservative lending policy

Strict expense discipline

Employee Benefits & Rewards

In return for employee’s dedication and hard work, HSBC offer a very attractive and competitive benefits package with rapid rewards for the right people. While different roles come with different rewards, the following is a guide to the kind of package they offer:

Performance-related bonus scheme

Pension

25 days holiday

Private medical insurance

Life insurance

Preferential rates on a range of HSBC products

Season ticket loan

Sports and social scheme

Employee assistance programs

Corporate discounts

HSBC Structure

Corporate Governance:

HSBC is committed to high standards of corporate governance. HSBC Holdings has complied throughout with the applicable codes provided by the Combined Code on Corporate Governance issued by the Financial Reporting Council and the Code on Corporate Governance Practices in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The Board of HSBC Holdings has adopted a code of conduct for transactions in HSBC Group securities by Directors that complies with The Model Code in the Listing Rules of the Financial Services Authority and with The Model Code for Securities Transactions by Directors of Listed Issuers (‘Hong Kong Model Code’) set out in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, save that The Stock Exchange of Hong Kong has granted certain waivers from strict compliance with the Hong Kong Model Code, primarily to take into account accepted practices in the UK, particularly in respect of employee share plans. Following a specific enquiry, each Director has confirmed he or she has complied with the code of conduct for transactions in HSBC Group securities throughout the period.

Board Committees:

The Board has appointed a number of committees. The following are the principal committees:

Group Management Board

Group Audit Committee

Remuneration Committee

Nomination Committee

Corporate Sustainability Committee

HSBC structure is matrix structure, because they have teams of people from various sections of the business, these teams will be created for the purpose of a specific purpose of a specific project and will be led by a project manager, often the team is only exists for the duration of the project and matrix structure are usually deployed to develop new products and services.

Relationship between Culture and Structure

Organizational Culture : a group of mutually interacting people with negotiated , shared values , understandings ,norms , ideals , way of life and the way of looking at the world and their place in it .The way a structure or culture is designed or evolves over time affects the way people and groups behave within the organization.

Structure and culture affect:

Behaviour

Motivation

Performance

Teamwork and cooperation

Intergroup and Interdepartmental relationships

Organizational culture is more of a larger picture, a more general term that refers to a large umbrella of smaller topics and issues within an organization.

The structure refers to the infrastructure, and the various methods and practices within that infrastructure, that helps an organizational culture run with the efficiency and consistency that should be the hallmark of any healthy organizational structure, whether it is in a corporation, sports team, or any other set up that is large enough to create its own organizational culture.

This makes the structure an integral part of any organizational culture, but also narrows out a very specific segment of the culture as its own responsibility. Organizational structure will deal primarily with the set up of the culture. How management works, which specific responsibilities supervisors have, how a complaint is passed through the ranks-these are all issues within the organizational culture that are directly tied to how an organizational structure works. The structure is not limited to those three examples, but it would certainly include all of them.

TASK 2

Styles of Management

Management is tasks, Management is a discipline. But management also people. Every achievement of management is the achievement of a manager. Every failure is a failure of a manager. People manage rather than ‘forces’ or ‘facts’ .The vision, dedication and integrity of managers determine whether there is a management or mismanagement’

Stewart, R, Management and organizational behaviour, Sixth Edition, Laurie J Mullins. Prentice Hall (2002)

Management takes place within a structured organizational setting with prescribed roles. It is directed towards the achievement of aims and objectives through influencing the efforts of others. This role encouraged a lot of writers to study management aspects, where they came out with theories that’s become the sprit of management thinking.

Scientific Management: F. W. Taylor. Taylor formalized the principles of scientific management, 1909, he published the book for which he is best known, Principles of Scientific Management. In his own words he explained:

“The old fashioned dictator does not exist under Scientific Management. The man at the head of the business under Scientific Management is governed by rules and laws which have been developed through hundreds of experiments just as much as the workman is, and the standards developed are equitable.”

Management & Leadership

According to John P. Kotter in his book, A Force for Change: How Leadership Differs From Management (The Free Press, 1990), managers must know how to lead as well as manage. Without leading as well as managing, today’s organizations face the threat of extinction. Management is the process of setting and achieving the goals of the organization through the functions of management: planning, organizing, directing (or leading), and controlling. A manager is hired by the organization and is given formal authority to direct the activity of others in fulfilling organization goals. Thus, leading is a major part of a manager’s job. Yet a manager must also plan, organize, and control. Generally speaking, leadership deals with the interpersonal aspects of a manager’s job, whereas planning, organizing, and controlling deal with the administrative aspects. Leadership deals with.

Theory X (Authoritarian Management Style):

The average person dislikes work and will avoid it if he or she can. Therefore most people must be forced with the threat of punishment to work towards organizational objectives. The average person prefers to be directed; to avoid responsibility; is relatively less ambitious, and wants security above all else.

Theory X basically holds the belief that people do not like work and that some kind of direct pressure and control must be exerted to get them to work effectively. These people require a rigidly managed environment, usually requiring threats of disciplinary action as a primary source of motivation. It is also held that employees will only respond to monetary rewards as an incentive to perform above the level of that which is expected.

From a management point of view, autocratic (Theory X) managers like to retain most of their authority. They make decisions on their own and inform the workers, assuming that they will carry out the instructions. Autocratic managers are often called “authoritative” for this reason; they act as “authorities”. This type of manager is highly tasked oriented, placing a great deal of concern towards getting the job done, with little concern for the worker’s attitudes towards the manager’s decision. This shows that autocratic managers lose ground in the work place, making way for leaders who share more authority and decision making with other members of the group.

Theory Y (Participative Management Style):

Effort in work is as natural as work and play. People will apply self-control and self-direction in the pursuit of organizational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility.

The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilized.

A more popular view of the relationship found in the work place between managers and workers, is explained in the concepts of Theory Y. This theory assumes that people are creative and eager to work. Workers tend to desire more responsibility than Theory X workers, and have strong desires to participate in the decision making process. Theory Y workers are comfortable in a working environment which allows creativity and the opportunity to become personally involved in organizational planning.

Some assumptions about Theory Y workers are emphasized in one of the texts, namely that this type of worker is far more prevalent in the work place than are Theory X workers. For instance, it is pointed out that ingenuity, creativity, and imagination are increasingly present throughout the ranks of the working population. These people not only accept responsibility, but actively seek increased authority.

According to another of the authors studied for this project, in which the “participative” (Theory Y) leadership style is discussed, a participative leader shares decisions with the group. Also mentioned, are subtypes to this type of leader, namely the “Democratic” leader who allows the members of the working group to vote on decisions, and the “Consensual” leader who encourages group discussions and decisions which reflect the “consensus” of the group.

A Laissez-Fair Style:

A laissez-fair style is where the manager observes that members of group are working well on their own. The manager consciously makes a decision to pass the focus of power to members, to allow them freedom of action ‘to do as they think best’. And not to interfere; but is readily available if help is needed, There is often confusion over this style of leadership behavior. The world ‘genuine’ is emphasized because this is to be contrasted with the manager who could not care, who deliberately keeps away from the trouble of sports and does not want to get involved. The manager just lets members of the group get on with the work in hand. Members are left to face decision which rightly belongs with the manager. This is more a non-style of leadership or it could perhaps be labeled as abdication.

Management Styles at HSBC:

The qualities required in individuals by HSBC reflect a lot about their approach towards the management style. These quality individuals are:

Responsive: Who always try to anticipate and act quickly to ensure we meet and exceed our customers’ ever-changing expectations.

Respectful: Individuals who look for the value in everyone.

Fair: Who reward our customers for the commitment they give to us.

Progressive: Who are driven by the belief that we can shape a better future.

Perceptive: Who look harder, in order to understand things more deeply, and this informs everything we do.

The management empowers employees and builds a trust with the employees to deliver the brand promise effectively. Every department has efficient staff available to help the customers but for more specific needs and decision making, the branch managers play the role.

Leadership

Leadership is a dynamic relationship based on mutual influence and common purpose between leaders and collaborators in which both are moved to higher levels of motivation and moral development as they affect real, intended change. (Kevin Freiberg and Jackie Freiberg, NUTS! Southwest Airlines’ Crazy Recipe for Business and Personal Success, Bard Press, 1996, p. 298)

Three important parts of this definition are the terms relationship, mutual, and collaborators. Relationship is the connection between people. Mutual means shared in common. Collaborators cooperate or work together. This definition of leadership says that the leader is influenced by the collaborators while they work together to achieve an important goal.

Leadership is the ability to command acceptance by a group of people and thus, get them to do what the leader wants. The person providing this direction and commanding acceptance is called the leader. From this definition of leadership, it is obvious that the leader is the person whom others accept to show them the way. However, you probably are aware that a leader can be imposed on a group of people against their will. For example, a military coup can bring a leader to power. This leader was not voted for or accepted by his people. But he ascended the leadership seat by virtue of military might or military intrigues.

“Management is doing things right, leadership is doing the right things”

(Warren Bennis and Peter Drucker)

Leadership Styles

Types of Leadership Style: –

Four of the most basic leadership styles are:

–Autocratic

–Bureaucratic

–Laissez-faire

–Democratic

Autocratic Leadership

Autocratic leadership: is an extreme form of transactional leadership, where a leader exerts high levels of power over his or her employees or team members. People within the team are given few opportunities for making suggestions, even if these would be in the team’s or organization’s interest. Many people resent being treated like this. Because of this, autocratic leadership often leads to high levels of absenteeism and staff turnover. Also, the team’s output does not benefit from the creativity and experience of all team members, so many of the benefits of teamwork are lost. For some routine and unskilled jobs, however, this style can remain effective, where the advantages of control outweigh the disadvantages.

Bureaucratic Leadership :

Bureaucratic leaders work “by the book”, ensuring that their staff follow procedures exactly. This is a very appropriate style for work involving serious safety risks (such as working with machinery, with toxic substances or at heights) or where large sums of money are involved (such as cash-handling).In other situations, the inflexibility and high levels of control exerted can demoralize staff, and can diminish the organization’s ability to react to changing external circumstances.

Democratic Leadership or Participative Leadership :

Although a democratic leader will make the final decision, he or she invites other members of the team to contribute to the decision-making process. This not only increases job satisfaction by involving employees or team members in what’s going on, but it also helps to develop people’s skills. Employees and team members feel in control of their own destiny, and so are motivated to work hard by more than just a financial reward.

As participation takes time, this style can lead to things happening more slowly than an autocratic approach, but often the end result is better. It can be most suitable where team working is essential, and where quality is more important than speed to market or productivity.

Laissez-Faire Leadership

This French phrase means “leave it be” and is used to describe a leader who leaves his or her colleagues to get on with their work. It can be effective if the leader monitors what is being achieved and communicates this back to his or her team regularly. Most often, laissez-faire leadership works for teams in which the individuals are very experienced and skilled self-starters. Unfortunately, it can also refer to situations where managers are not exerting sufficient control.

Leadership vs. Management

A leader can be a manager, but a manager is not necessarily a leader. The leader of the work group may emerge informally as the choice of the group. If a manager is able to influence people to achieve the goals of the organization, without using his or her formal authority to do so, then the manager is demonstrating leadership.

Motivation

Definition: Motivation is “the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.

Abraham Maslow’s hierarchy of needs is the most well-known theory of motivation. He hypothesized that within every human being there exists a hierarchy of five needs: (See Exhibit 6-1).

Physiological: Includes hunger, thirst, shelter, sex, and other bodily needs

Safety: Includes security and protection from physical and emotional harm

Social: Includes affection, belongingness, acceptance, and friendship

Esteem: Includes internal esteem factors such as self-respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention.

Maslow’s Hierarchy of Needs

If Maslow’s theory is true, there are some very important leadership implications to enhance workplace motivation. There are staff motivation opportunities by motivating each employee through their style of management, compensation plans, role definition, and company activities.

Application of Maslow’s Theory

If Maslow’s theory is true, there are some very important leadership implications to enhance workplace motivation. There are staff motivation opportunities by motivating each employee through their style of management, compensation plans, role definition, and company activities.

Safety Needs: Provide a working environment which is safe, relative job security, and freedom from threats.

Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics.

Relationship between Theories of Motivation

All companies seek to motivate their employees for a very simple reason; a motivated employee is a high producer. In today’s workplace, many complex and sophisticated plans have been put in place towards this end; some companies offer a variety of incentives to meet the different needs and expectations of the different personalities employed there. Motivation is an individual thing; in other words, the same things do not motivate all people. Abraham Maslow outlines a pyramid-shaped theory that is the basis for most motivation theories that followed. They will then design and implement an action plan to increase the motivational factors in their own organization. Some of their action steps are discussed.

The lowest level of Maslow’s pyramid of needs relates to every human’s survival needs or by physiological needs, which include hunger, thirst and shelter are at this level (Robbins, 2001).

TASK 4

Team Work

A small number of people with complemen-tary skills who are committed to a common purpose, common performance goals, and an approach for which they hold themselves mutually accountable”.

-G. Moorhead and R.W. Griffin

When people listen carefully to each other, when they seek and take seriously each other’s opinions, when they make use of each other’s competencies and expertise, they are involved in teamwork.

Situations like, a football team, a marriage, a project at work, or a math team, may come and go. It requires no special structure, only an opportunity for two or more people to engage collaboratively and cooperatively in undertaking some task.

Teamwork in the workplace is something to be expected in our organizations today. Senior leadership teams, functional and intact teams, special project teams, play an important role to the success of any business. However, finding, creating, and maintaining effective a high performance team is much more difficult. No group of people is automatically entitled to teamwork just because they are smart, talented, and are working together. Teamwork in the workplace is subject to countless challenges as different personalities, talents and expertise, values, and working styles are merged together.

Group Working

A collection of individuals, the members accept a common task, become interdependent in their performance, and interact with one another to promote its accomplishment

Harold H. Kelley and J.W. Thibaut

Various Types of Groups

Friendship groups

Interest Groups

Formal groups

Informal Groups

Small groups

Large groups

Primary groups

Secondary groups

Coalitions

Membership groups

Reference groups

Command groups

Task groups

Good group work has great potential for the following reasons:

• Individuals are encouraged to become active rather than passive learners by developing collaborative and co-operative skills, and lifelong learning skills.

• It encourages the development of critical thinking skills.

• It requires the establishment of an environment of support, trust and co-operative learning can be nurtured.

• It promotes learning and achievement.

• Students have the opportunity to learn from and to teach each other.

• Deep rather than surface approaches to learning are encouraged.

• It facilitates greater transfer of previous knowledge and learning.

• It enhances social skills and interactions.

• Learning outcomes are improved.

• Large numbers of individuals can be catered for and work on the task simultaneously.

• Interaction and co-operation on a micro scale is facilitated thus decreasing a sense of isolation felt by some.

• Quiet individuals have an opportunity to speak and be heard in small groups thus overcoming the anonymity and passivity associated with large groups.

• Individuals get the chance to work on large projects (larger in scope or complexity than individual tasks).

• It can save time and requires a shared workload.

• Alternative ideas and points of view can be generated.

• Individuals develop and practice skills in: decision making, problem solving, values clarification, communication, critical thinking, negotiation, conflict resolution, and teamwork.

Team Working at HSBC

The whole is greater than the sum of the parts. This is a phrase that very much applies to HSBC. Although, as an organization HSBC a leader in the world of financial services. It is the power and reach of each of our local teams working together, which make HSBC such a successful and fast growing business. Recognizing the importance of local knowledge is a key message of HSBC advertising but it is not merely this. It is a value the HSBC live by. The employees work as a team to perform daily operations seamlessly.