RIMS INTERNATIONAL SCHOOL OF BUSINESS & TECHNOLOGY

A PROJECT ON: ORGANISATIONAL BEHAVIOUR

SUBJECT NAME: ORGANISATIONAL BEHAVIOUR

PRESENTED BY KEYUR.P.DESAI

BBA FIRST YEAR HIGHER NATIONAL CERTIFICATE

PROJECT GUIDE Prof. Mrs PRIYA CHOWDHURY

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Assignment Cover Sheet

UNIT Unit 3: ORGANISATIONS AND BEHAVIOUR Course HNCBusiness

LECTURER HAND OUT DATE

Ms. Priya Chowdhury 15.10.10

VERIFIER SUBMISSION DATE TERM

Ms. Reena Cliffton

25.11.10
Dec10

STUDENT ID:

ASSIGNMENT GUIDELINES
1. 2. 3. 4. 5. 6. 7. 8. 9. This Assignment is designed to help you achieve a Merit or Distinction. During your Structured Individual Study (SIS), you are required to answer each question above (Outcomes Assessment Criteria) which has been covered separately in respective Lessons. In your answer, write about the key concepts highlighted by the Lesson (underpinning knowledge). You can get an idea of the key concepts by referring to the Lessons handout, in the Overview section of the Lesson. Look for real-life examples to apply your key concepts (applied knowledge). Make use of the SIS time to research books. During your SIS time, use the computer to research recommended websites and word process your Assignment. Follow the guidelines given in your Handbook. Study the Merit and Distinction Descriptors below to ensure that your work demonstrates compliance in order for it to be considered for their respective Awards.

It is important that the work you produce is carefully planned & written. Your work should demonstrate (a) your understanding of the theory you have learned (underpinning knowledge) and (b) your ability to apply it to real life/contemporary situations/case study (applied knowledge).

Please follow the instructions below: 1. 2. 3. 4. Start each answer from a new page Highlight each question clearly Avoid bullet points and restrict the use of numberings; remember that you are supposed to write an essay. All work should be comprehensively referenced and all sources must be acknowledged fully, this includes books & journals used as well websites visited. Details such as page numbers, publishers and publication year should also be stated, in addition to the name of the author(s) and publication. Books, articles and journals should be the main sources; net sources are allowed up to 25% max. 5. Follow Harvard Referencing system. 6. Ensure that your work is within the stated word limit. 7. All work should be word-processed. 8. Pages should be numbered (bottom right hand corner) 9. Assignment sheet should be attached in the front. 10. Spell check the document and read thoroughly for grammatical errors. 11. 1.5-line spacing is preferred but is not essential. 12. Bibliography at the end of the assignment.

The correct format to answer each question (Task) is as follows: 1. Introduction (analyse the question which theory is it trying to ask you to demonstrate?) 2. Underpinning Knowledge (write about the relevant theory/points) 3. Applied Knowledge (apply the theory/points you have written about in your underpinning knowledge to your case study/real life example) 4. Conclusion (summarise what you have written in 2 & 3 above).

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GRADE DESCRIPTORS PASS DESCRIPTORS (FROM Outcomes Assessment Criteria) 1 Explore organizational structure and culture. Compare and contrast different organizational structures and culture Learners Evidence Shows Tutor to Check COMMENTS/FEEDBACK

Analyse the relationship between an organization`s structure and culture and the effects on business performance Analyse the factors which influence individual behavior at work

Examine different approaches to management and leadership and theories of organization.

Describe different leadership styles and the effectiveness of these leadership approaches Analyse how organizational theory underpins principles and practices of organizing and of management. Compare the different approaches to management and theories of organization used by two organizations. Explain the different motivational theories and their application within the workplace. Assess the relationship between motivation theory and the practice of management Describe the nature of groups and group behavior within organizations Investigate the factors that lead to effective teamwork and the influences that threaten success Evaluate the impact of technology on team functioning within a given organisation

Examine the relationship between motivational theories Demonstrate an understanding of working with others , teamwork , groups and groups dynamics

MERIT DESCRIPTORS 1 Identify and apply strategies to find appropriate solution

Learners Evidence Shows

COMMENTS/FEEDBACK

Relevant theories and techniques have been applied Effective judgments have been made

Complex problems with more than one variable have been explored An effective approach to study and research has been used. A range of sources of information used

Select/ design and apply appropriate

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methods/techniques

The selection methods and techniques/sources justified The design of methods/techniques justified Complex information/data have been synthesized and processed. Appropriate learning methods/techniques applied Appropriate structure and approach has been used Logical and coherent arguments have been presented Technical language accurately used

Present and communicate appropriate findings

A range of methods of presentation has been used Appropriate media used

Familiar and unfamiliar contexts have been used It is appropriate for familiar and unfamiliar audiences

DISTINCTION DESCRIPTORS 1 Use critical reflection to evaluate own work and justify valid conclusions -

Learners Evidence Shows

COMMENTS/FEEDBACK

Synthesis has been used to generate and justify valid conclusions The validity of results has been judged Self criticism of approach has taken place Evaluation has taken place using defined criteria Realistic improvements have been proposed against characteristics for success Autonomy/independence demonstrated Substantial activities/projects have been planned, managed and organized The unforeseen have been accommodated The importance of interdependence has been recognized

Take responsibility for managing and organizing activities

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Demonstrate convergent, lateral and creative thinking

Ideas generated and decisions taken

Self evaluation has taken place

Convergent and lateral thinking have been applied Problems have been solved

Capacity for innovation and creative thought has been used Receptiveness to new ideas have been demonstrated Unfamiliar contexts have been applied

Any Other Comments

Grade Given by Tutor: Pass Merit Distinction IV Grading Check: Agree Disagree MODIFY GRADE TO IV Signature: Date:.. Tutor Signature:Date:.

Students Response:

Student Signature:

Date:

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School of Business Management

Organisations and Behaviour

Course

BTEC Higher Nationals (HNC) Business Studies Unit 3: Organisations and Behaviour

Unit

Individual Assessment

Lecturer Student

Ms. Priya Chowdhury

Name

Issue Date: 15.10.10

Due Date: 25.11.10

Student No.

Instructions -You are required to produce an academic report of 3000 words (+/- 10%) covering all the questions given below. -The colleges regulations concerning cheating, collusion and plagiarism apply to this assessment. (All sources must be referenced by using Harvard Referencing System)

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In the present day competitive business environment it is important for managers to uunderstand what shapes the way organisations work. Organisation behaviour seeks to understand how the people, organisation structure & culture help manager in making business decisions. You are required to choose any two organisations of your choice that you are familiar with. And explore and analyse the following elements of organisation and behavior.

1. Organisational structure and culture Compare and contrast different organizational structures and culture Analyse the relationship between an organization`s structure and culture and the effects on business performance

2. Approaches to management and leadership Analyse how organizational theory underpins principles and practices of organizing and of management. Compare the different approaches to management and theories of organization used by two organizations. Describe different leadership styles and the effectiveness of these leadership approaches 3. The relationship between motivational theories Explain the different motivational theories and their application within the workplace. Assess the relationship between motivation theory and the practice of management 4. Demonstrate an understanding of working with others , teamwork , groups and groups dynamics

Describe the nature of groups and group behavior within organizations Investigate the factors that lead to effective teamwork and the influences that threaten success Evaluate the impact of technology on team functioning within a given organisation

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Table of Contents
I II Executive Summary Introduction about the companies. Part 1 1a 1b Compare and contrast different organisational structures and culture 12 Analysing the relationship between an organisations structure and 18 culture and its business performance? 1c Analyse the factors which influences individual behaviour at work Part 2 2a Describe different leadership styles and the effectiveness of these leadership approaches. 2b Analyse how organisational theory underpins principles and practices of organizing used by organisation Part 3 3a Explain the different motivational theories and their application within the workplace 3b Assess the relationship between motivation theory and the practice of management Part 4 4a Describe the nature of groups and groups behaviour within the organisation. 4b Investigate the factors that lead to effective teamwork and the influence that threat success. 4c Evaluate the impact of technology on team functioning within a given organisation. III IV Conclusion Bibliography. 37 38 36 34 33 30 27 24 21 19 10 11

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List of Diagrams and Charts: 1.1 1.2 1.3 2.1 2.2 2.3 3.1 3.2 3.3 3.4 3.5 4.1 4.2 4.3 Explain different kinds of structure. Bombay paints public ltd organisational structure. Asian paints private ltd organisational structure. Demonstrate different leadership style. Gives you an idea about the different leadership approaches. Explains different types of approaches to organisation. Shows difference between the motivated and unmotivated staff. illustrates different types of content theories of motivation Demonstrates different types process theories. Shows the hierarchy of needs. Demonstrates different level of needs in the hierarchy. Gives you an idea about of how groups are formed. Illustrates how informal groups are formed. Explains the integrated network of communication. 12 14 15 21 22 24 27 28 28 29 30 33 34 35

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Executive Summary:Organisational behaviour is a field dedicated to better understanding and managing people at work. It deals with how people act and react in organisations of all kinds. Organisations are a social invention helping people to achieve things collectively that they cannot achieve alone. Organisations are the chessboard upon which the game of life is played. Organisational behaviour tell us -life within organisation-is to know more about the nature, possibilities, rules, regulations and policies of that game. In this report the author will take two different kinds of organisations operating in the India, where in which Asian Paints private limited is in the private sector and Bombay Paints public ltd is in the public sector but it is non-quoted company. From this assignment the author will try to find the organisational structure, culture, the relationships of structure and culture they possess and the effects on the business performance. He will also pursue to identify the leadership styles in the chosen organisation and explain the effectiveness of these leadership approaches, as well the motivational theories used in the organisations to motivate their employees and also the author will also able evaluate the ways in which teamwork, groups and group dynamics. Organisation and behaviour is one of the units where in which it allows the author to explore practical knowledge, scrutinize the functioning of the organisation internally as well as externally. The unit has also developed the author to understand the behaviour of the people within the organisation.

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INTRODUCTION:The two chosen companies that are picked for this project are Bombay Paints (Grauer & Weil Ltd) and Asian Paints. Bombay Paints public ltd was established in 1948 as a Private Limited Company by Mr. Y.A. Ezzudin and Mr. D. Jamaluddin. It was later bought over by two technocrats, Mr. J. M. Chudasama and Mr. J. M. Nadkarni and converted into a non listed Public Limited Company in 1960.In April 1994, the Management of the Company once again changed hands by virtue of which the control was transferred to a larger business group, known as the GROWEL GROUP, specialising in surface treatment and corrosion protection. The annual turnover of the group in the year 2007-08 aggregated to over Rs. 2750 Million. With the help of management expertise, coupled with high level of infrastructure and business synergies offered by the parent group, Bombay Paints has become stronger with a compelling presence in the paint industry. Asian Paints Pvt. ltd is India's largest paint company and ranked among the top ten Decorative coatings companies in the world with a turnover of INR 66.80 billion. Asian Paints along with its subsidiaries have operations in 17 countries across the world with 23 paint manufacturing facilities, servicing consumers in 65 countries through Berger International, SCIB Paints Egypt, Asian Paints, Apco Coatings and Taubmans. Asian Paints aims to become one of the top five Decorative coatings companies world-wide by leveraging its expertise in the higher growth emerging markets. Simultaneously, the company intends to build long term value in the Industrial coatings business through alliances with established global partners.

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1 a) Compare and Contrast different organisational structure and culture?

Wilson and Rosenfeld (1990, p.215) says, The established pattern of relationships between the component parts of an organisation, outlining both communication, control and authority patterns. Structure distinguishes the parts of an organisation and delineates the relationship between them. Organisations are structured in a variety of ways, dependant on their objectives and culture. The structure of an organisation will determine the manner in which it operates and its performance. Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments and employees . Bartol and Martin (1994, p.283) says, The Formal pattern of interactions and coordination designed by management link the task of individuals and groups in achieving organisational goals. All companies that are available today have a structure of the positioning of its employees. It shows how work is divided and how the co-ordination works between the members of the organization. The structure also shows how the tasks and responsibilities will be delegated and the way of communication is done from the top level of management to the lower level of management. There are many different types of structures like as follows:-

Tall hierarchical structure.

Flat structure.

By Function structure.

By Product structure.

By Area structure.

By Matrix structure.

Figure 1.1 explain different kinds of Structure (Laurie Mullins 8 edition of Organisational behaviour)

th

Basic things that Bombay paints public ltd company and Asian paints private ltd company should consider while designing the structure of their organization: Set
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objectives, list the tasks, divide work into groups, centralisation or decentralisation, organisations principles, span of control and chain of command. The reason being is because it will help the organisations (Asian paints and Bombay paints) to develop an appropriate structure where in which it will able to link individuals in established network of relationships so that authority, responsibility and communications can be controlled. It is also necessary to assign suitable levels of authority and responsibility to groups or individuals to achieve the desired outcomes of the organisation. This creates a hierarchy or chain of command in which authority flows downward and accountability (i.e. centralisation or

decentralisation) because of responsibility flows back up. And the last thing that they should take while designing the structure is organisations principles because this is foremost important factor for any company as this will help the business to create ethics and the code of conduct for the people working in the organisation The figure 1.2 and 1.3 below will show the organisational structure of Bombay paints and Asian paints respectively.

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ORGANISATIONAL STRUCUTRE OF BOMBAY PAINTS PUBLIC LTD.

Managing Director

Chief Executive Management representative

Chief GM Operations

DGM Accounts

DGM Logistic

DGM Purchase

DGM Admin

GM Planning/MIS/ Costing

MGR Excise

EDP Manager

SR Purchase Executive

SR MGR Sales Admin

SR MGR Sales Admin

Figure 1.2 Bombay Paints organisational structure. (Field research)

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ORGANISATIONAL STRUCTURE OF ASIAN PAINTS PVT LTD.

CEO OF ASIAN PAINTS

State 1

State 2

State 3

Figure 1.3 shows the organisation structure of Asian paints. (wwww.asianpaint.com)

As the figure 1.2 contrasts the Bombay paints as an organisation which has functional structure, which is arranged according to what each section or department does. This means that Bombay paints have a wider span of control than Asian paints but still follows the original passing down of authority to their employee that is shorter chain of command. In contrast to 1.3 it shows that Asian paints, as a national organisation, have originally a Taller & formal hierarchical structure where the authority is centralised and bureaucracy is present. Asian paints structure has a narrow span of control and taller chain of command where there is CEO, 3 divisional heads, middle managers and operational staff. Also the tall structure allows tunnel vision for its employees which help them to be focus in their department. Critical Analysis:As Asian paints Pvt ltd have adopted a tall hierarchical structure the drawback of having this structure is that, there is no interlinking of departments which might lead to employees being de-motivated and bored of doing the task given by their managers. In this case, there will be many communication problems that will occur. Decision making and co-ordination will also become a worrying factor for Asian
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paints Pvt ltd, as the decisions made may not be able to pass through all the levels of hierarchy. So therefore should flatten their structure in order to overcome this problem stated above. In comparison with Bombay paints the organisation does allow cross communication with the other department to overcome the problem of communication with other departments. The rules and regulations are clearly required in a large organisation such as Asian paints private ltd in order to bring unity across the whole organisation. The existence (welfare programmes, then training facilities and safety regulations) of these policies and regulation will provide security for all employees and allow for discipline to exist within the workplace. This helps to maintain focus on the task to be done and helps engender positive and friendly working environment where all staff understand that they (employees) are there to do a job and are aware of their roles and their boundaries. These things are very much of importance to Bombay paints public ltd, they do follow the rules and regulations but consequently the working environment is not all rigid (their structure delivers much importance of two way communication with feedback which is why Bombay paints is structure is best suited), where roles are defined according to different departments where in which they adopt decentralised decision making enhance an organisational perspective across functions. Therefore Drucker, P., (2006) the management and organisational behaviour journal of Laurie J. MULLINS of the eighth edition says a good structure does not by itself produce good performance. But a poor organization structure makes good performance impossible, no matter how good the individual managers may be. What Drucker meant was that a good structure may not be able to improve the performance but it will definitely help not to worsen it either. Whereas, if the structure in not appropriate then itll sure make it impossible for the improvement of the performance of the business. Asian paints: due to the hierarchical influence in the employees the work pleasure is not there. Therefore the chain of command can also be influenced from bottom to top in order to give the lower level an opportunity to give their employees empowerment to take decision. Bombay paints: as the structure is functional

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structure their structure allows the organisation to delegate task to the lower level which makes the organisation best suited. The concept of culture has developed from ANTHROPOLOGY i.e. the study of the human behaviour as a whole and as well as the study of the mankind. The management and organisational behaviour journal of Laurie J. MULLINS of the eighth edition states that Organisational Culture is the collection of traditional values, policies, beliefs and attitudes that constitute a pervasive context for everything that we do and think in an Organisation. Organisational culture can be viewed as a system of shared values (about what is important) and beliefs (about how things work) that shape a companys behavioural norms (the way we do things around here) Atkinson et al (1993) an introduction to psychology 11 th in LAURIE J. MULLINS eighth edition book of organisational behaviour, devoted considerable attention to the collection of traditions, values, beliefs, and attitudes that constitute a pervasive context for everything we do and think in an organisation. This means that Atkinson explains the orgnisational culture as reflecting the underlying assumptions about the way work is performed, done what is acceptable and not acceptable and what behavior and actions are encouraged and discouraged. Bombay paints follows a role orientated culture, they excel in specialisation of its employees into various functions and each individual within the function is assigned a particular role. Employees focus on their particular role as assigned to them by their job description and this increase their productivity for the company. The culture used in Bombay paints follows a very influential procedure in any firm that will drive the company forward and make sure that the company earns for which it operates that is to make profit. Whereas Asian paints adopts a people orientated culture because people culture depends on socializing with the coworkers and working along in groups, where all individuals believe themselves superior to the organization.

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B) Analysing the relationship between an organisations structure and culture and its business performance? As stated above Bombay paints have a functional structure and role orientated culture, if we see they have in all together a perfectly balance structure and culture, it is because of this approach Bombay paints are able to achieve their goals and objectives set by their management. The annual turnover of the group in the year 2008-09 aggregated to over Rs. 2750 Million. With the help of management expertise, coupled with high level of infrastructure and business synergies offered by the parent group, Bombay Paints has become stronger with a compelling presence in the paint industry. Role culture perfectly suits functional structure because its allows specialisation in each department also it allows delegation (empowerment) of work at each department which enhances coordination and control. According to me they are best suited with Role culture and a functional structure because it will allow employees to specialise in the areas which they are best at it. In comparison with Asian paints it is its culture and structure (people culture and hierarchical structure) that is got them the 10th largest decorative paint company in the world. Asian Paints is more than twice the size of its nearest competitor It is one of the most admired companies in India with 27 manufacturing locations, Asian Paints restructured itself into Growth, Asian Paints aims to become the 5th largest decorative paint company in the world. Critical Analysis:Bombay paints: The author feels that if Bombay paints adopt people orientated culture then current scenario will be far more impressive than the current one because as they are now using role culture the employees might feel bored of doing the particular task which is given to them so its better if they adopt bit of peoples culture there will be socializing within the operational staff. The reason why the author is suggesting is because during the financial year of 2009-10 there were issue which were rising on like workers going in strike because there was no leisure time given during the work hours which is why the author is suggesting for a change.

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In contrast to Asian paints the author strongly feels that they should adopt Task culture (bet your company culture) because it will help them to run the organisation more appropriately than before. A task culture is well suited those business who are having a hierarchical structure. The employees will be at least working and keeping in mind the organisational goals and not just working for their personal goals. The organisation should try to work out a strategy keeping in mind the employees personal goals and as well the organisational goals and try to motivate them to reach the targets which are given by the organisation. The reason being to bring a change in the organisation is because firstly the sales have been stagnated for the past six months which is 228.72 crore and the performance of the company is falling by every 1% per year. C) Analyse the factors which influence individual behaviour at work? The factors which influences Bombay paints at work are mainly three factors they are as follows: - Demographic factors: these are based on factors like the socio economic background, age, sex, race, nationality. Preferably Bombay paints would want its staff and workers to be from a good enough social background and well educated as if they dont have the appropriate attitude towards the customers then the customers will not be satisfied and Bombay paints might lose out on some loyal consumers. Abilities and skills: the individual behaviour of a person gets influenced by the skills and abilities they have. The workers of BP have abilities to perform a task beyond their expectations which makes them feel motivated. Personality: factors that influence an employees personality are heredity, culture, family and situation. Individuals vary because of their personality in an organizational environment and so does their behaviour towards situations. BP expects a different behaviour from its Production workers and a different behaviour from the mechanics, CEOs, managers and ground staff. The behaviours vary according to the post of an individual. At the other end Asian paints Pvt ltd: they are having the same Demographic factor, creating enthusiasm for its employees, workers, managers, and its staff. For e.g. Asian paints is famous for motivating its staff.
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The staffs are given certain decision-making responsibility in certain matters and in recruiting in order to motivate them. Asian paints give bonuses to a team rather than individual-performance. They also use the McClelland theory for motivating the staff where they use need for achievement (recognition, awards), need for power (responsibilities, delegation), need for affiliation (self belonging or to a group.) .Every staff of Asian paint has the access to all the sales and margin figures of all the departments. This means that on reaching the targets of the organisation the benefit is transferred to all departments with different kinds of bonuses for each department like for e.g. lower level of the organisation will be given extra incentive whereas for managers will be awarded with recognition and as well as perks etc. And last factor which is influencing individual at work is it Nationality and ethnic group at the work place. Nationality is one of the factors because as it operations or base is in India it is obvious that the company is going to recruit the Indians so that is why it will be easier for the top management to communicate with the lower levels of the organisation.

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Q.2 a) Describe different leadership styles and the effectiveness of these leadership approaches? According to Useem, M., How to Groom Leaders of the future, in Pickford, J. (ed.) Financial Times Mastering Management 2.0, Financial Times Prentice Hall (2001), p.297 Leadership is at its best when the vision is strategic, the voice persuasive and the results tangible. In the study of leadership, an exact definition is not essential but guiding concepts are needed. The concepts should be general enough to apply to many situations, but specific enough to have tangible implications for what we do. Fullan discuss leadership in a culture of change and a points out that leadership is the key to large-scale improvement. It is essential for leaders to understand the change process and moral purpose without change will lead to moral martyrdom. Leaders must be able to operate under complex uncertain circumstance.Fullan, M., leading in a culture of change, Jossey- Bass (2001) There are many dimensions to leadership and many possible ways of describing leadership style & leadership approaches they are as follows:

Autocratic Leadership

Democratic Leadership

Laissez- Faire Leadership

Paternalistic Leadership

Figure 2.1 demonstrate different leadership styles.

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Traits Approach.

Functional Approach.

Behavioural Approach.

Transformational Approach.

Contingency Approach.

Figure 2.2 gives you an idea about the different leadership approaches.

Mr. P.M Murty the managing director and CEO of Asian paints Pvt ltd use an Autocratic style of leadership and Functional approach. An autocratic leadership style is where the focus of power is with the manger and all interactions within the group move towards the managers. The manger alone exercise decision making and authority for rewards or punishments, Mullins, L., (2007) management and Organisational Behaviour. 8th Ed. Pearson Education ltd. The functional approach focuses attention on the functions of leadership, rather than the personality of the leader, and how the leaders behaviour affects and is affected by the group of followers. This approach to leadership to believes that the skills of leadership can be learned and developed. this type of leadership style even today Mr. P M Murtys goal and dreams are still prominent within the organization and is still posted on the corporate website (Asian paints, 2008). The CEO of Asian paints talked about his success of his vision he lived it himself which gained him creditability as a leader. Mr. Murty has fortified to wrestle his suppliers for the lowest price and, unlike his most competitors; he would pass the savings on to customers. Mr. Murty was able to get his associates and managers on board with the idea that his vision was the way to go; although it was not easy. He (CEO) produces high quality and high quantity work for long periods of time. The 3 states divisional heads like the trust they receive and respond with cooperation, team spirit and high morale. He develops plans to help employees evaluate their own performance, allows employees to aim for their goals and as well as their organisational goals.

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At the other end if we see in Bombay paints public ltd, Mr. Harnish Juthani the managing director has adopted a Democratic leadership style and Traits approach. The democratic manager keeps his or her employees informed about everything that affects their work and shares decision making and problem solving responsibilities. Bombay paint is extremely decentralized and most of the decisions taken are by the Managing director and as well the Departmental heads of Bombay paints. Democratic leadership is when decisions are made with consulting the group members or the lower management. The Traits approach tells that leaders are born not made. Traits approach consists of certain inherited characteristic or personality traits which catches an attention on the person in the job. In relation to Bombay paints this has been an ideal approach of the workers to work because they find some characteristic or say personality in common, because of which the workers are more motivated in working towards their targets and as well as towards the organisational goals and objectives. Critical Analysis:According to the author, the author feels that Asian paints Pvt ltd should adopt Democratic leadership style with same functional approach used above because there will be an ease working in the organisation as well as the workers will feel that they will be part of the organisation, with that Asian paints will achieve two way communication which allows feedback from the staff and participation will be encouraged. The reason for using Democratic leadership style because Autocratic leadership allows only one way communication which will demotivate staff who wants to contribute and accept responsibilities and also some decision do not benefit from staff input. It will be advisable that they should keeping using functional approach because at least the workers will be reminded of doing the task allotted to them in reaching the organisation objectives. In comparison to Bombay paints public ltd: the author feels that the current leadership style adopted by them is well suited to them because as we have seen the current performance of the business, but the author feels that they should adopt an Autocratic style of leadership because as the organisation on the smaller scale in order to achieve the mission and the vision statement set by the directors.

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B) Analyse how organisational theory underpins principles and practices of organising and of management? McGregor, D., (1987) The human Side of enterprise, Penguin p.6 says, That every managerial act rests on assumptions, generalizations and hypotheses that is to say, on theory. Our assumptions are frequently implicit, sometimes quite unconscious, often conflicting: nevertheless, they determine our predictions that if we do a, b will occur. Theory and practice are inseparable. There are many types approaches to organisation, structure and management.

Figure 2.3 explains different types of approaches to organisation. Mullins, L.J., 2007 management and Organisational Behaviour. 8 ed. Pearson education ltd.
th

Relating to the organisations which the author has chosen Asian paints uses a classical approach in their organisation. The organisation is thought of in terms of its purpose and formal structure and this approach aims to identify how methods of working can improve the productivity, emphasis on the planning of work, the technical requirements of the organisation, and principles of management and the assumption of rational and logical behaviour. There are two sub groupings of the classical approach:1) Scientific management. (F.W. Taylor) 2) Bureaucracy. (Max Weber) Asian paints Pvt ltd adopts scientific management approach where in which it describes the breaking down of work processes into discrete tasks to find the one
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best way of performing each tasks in terms increased productivity or efficiency or by financial rewards like money the only factor that could stimulate further effort of the workers. In Comparison with Bombay paints public ltd adopts System Approach, where System approach describes an approach which attempts to reconcile the classical and human relation approaches. Attention is focused on the total work of the organisation and the interrelationships of structure and behaviour and the range of variables within the organisation. Mullins, L., (2007.), Management and Organisational Behaviour. 8th Ed. Pearson Education ltd. Critical Analysis:According to the author Asian paints should not adopt Classical approach because they do not take sufficient account of personality factors and limited control over their work environment. Then there is too much of managerial control will demotivate the worker to perform any task set by the higher management, which will affect the goals and the targets of the business. The de-skilling of workers might take place in order to improve the efficiency and the productivity of the business. Therefore it tends to be a very rigid structure. In order to run the organisation properly they should for another alternative like System approach where it is mixture of Classical and Human relation approach. The reason for choosing this kind of approach because there will be reduction in complexity, it helps in achieving specialisation in fields they are best at it, it allows grouping of workers in performing a task and last Coordination between the higher management and the employees of the business will be achieved. In contrast Bombay paints public ltd: according to the author it is best suited with System approach because the current performance of the business itself states that they are well suited with this kind approach.

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The annual turnover of the group in the year 2009-10 aggregated to over Rs. 2750 Million. With the help of management expertise, coupled with high level of infrastructure and business synergies offered by the parent group, Bombay Paints has become stronger with a compelling presence in the paint industry. According to the author if Bombay paints moves to Contingency Theory they will improve the existing performance. The reason being firstly there is no best way to manage the organisation. The needs of an organization are better satisfied when it is properly designed and the management style is appropriate both to the tasks undertaken and the nature of the work group under different situations.

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Q.3 a) Explain the different motivational theories and their application within the workplace? Stimpson, P., (2006) Business studies: AS & A levels 3 rd edition Chennai: Chennai Micro Print (P) ltd says motivation is the desire to see a job done quickly and well. Motivation results from the individuals requirement to achieve objectives and to satisfy needs. Motivation is a decision making process, through which the individual chooses the desired outcomes and sets in motion the behaviour appropriate to them. If the employees of Asian paints are motivated well then they will definitely perform well and satisfactory results will be shown. If the staff are not motivated well then they will be reluctant to work efficiently thus resulting in poor results and unsatisfied customers. The table below shows the difference between motivated and unmotivated staff of Asian paints: Motivated Staff
1) The labour turnover will decrease. 2) Low absenteeism rate. 3) High productivity. 4) Advise for improvements. 5) Workers are prepared to

Unmotivated Staff
1) Increased absenteeism. 2) Poor performance 3) labour turnover will increase 4) Accidents will occur at workplace. accept 5) There will be grievances within the firm.

responsibilities.

Figure 3.1 shows difference between the motivated and unmotivated staff.

There are many types of motivation theories but it is now classified into two sub groups. 1) Content theories of Motivation which includes:-

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Maslow's hierarchy of needs.

Alderfer's modified need hierarchy.

Herzberg's two factor theory.

McClelland's need for achievement theory.

Figure 3.2 illustrates different types of content theories of motivation.

2) Process Theories which includes:-

Expectancy theories

Equity Theory.

Goal theory.

Attribution Theory.

Figure 3.3 demonstrates different types process theories.

The two motivational theories which Asian paints uses to motivate their staff are of Content theories.

1. Maslow & the Hierarchy of needs

Abraham Maslow said that all motivation comes from a persons hierarchy of needs. A need of a person is what motivates one to work hard to get it. Maslow had divided human needs into different level, once he or she achieves that certain level he tries to fulfil his demands of next level and this motivates a person to work hard. According to Maslows theory the basic needs are the same for everybody, which could be fulfilled in a specific order.
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The hierarchy of needs may be shown as a series of steps but is usually displayed in the form of a pyramid.

Figure 3.4 shows the hierarchy of needs.

2. Douglas Macgregor - Theory X and Theory Y:Douglas Macgregor said that many managers generalized the people that worked for them. They would put all of their employees into either a theory x category or a theory y category and then manage their company using the appropriate management style. Theory X: It consists of that all employees that are lazy, who dont have any ambitious and have no interest in taking on extra responsibilities. Staff falling into this theory will always resist change of any kind and are totally uninterested in the success of their employer. Employees of this theory dont care about the company they are just to be given orders to be followed. Theory Y: It consists of employees that are interested in their work, who want to be offered extra responsibilities and asked about their view on how things are run in the company. Employees of this theory are prepared to accept change because they appreciate that it's in everyone's best interests.

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Q.3b) Assess the relationship between motivation theory and the practice of management? Asian paints use Maslow & hierarchy of needs theory to motivate its staff by fulfilling their needs. If an individual or a group of workers meet all of their targets and improve the quality of their work, they will be rewarded with a bonus. Asian paints have three-month bonus periods in which if any of the states operation branches makes a higher profit than what is predicted they will receive a bonus. Asian paints not only tries to satisfy the basic needs of their employees but it also fulfils their desires of higher levels like esteem and self actualization by giving gift vouchers for hard work, staff discount scheme of 20%. Asian paints does cater its employees with love/belonging needs, so to keep its staff happy it needs to provide them with family gifts and make them feel a part of their family. Below is a typical chart where in which it will show that how hierarchic levels in organisation is being motivated by Maslows applications". MASLOWS
Basic Needs.

HEIRARCHIAL LEVELS. LL: Rs 1500 per hour Daily wages. ML: Rs 2000 per hour salary. HL: Rs 50000 above salary. LL: 1000 workers in the Production department will be provided with gloves, glasses, and aprons due to chemicals. ML: 1000 employees in (admin, Mktg department etc) which are given (Permanent contracts.) the other 500 employees in supervisory department which are (temporary contracts). HL: 1500 employees at this level will have Permanent contracts with Mediclaims, Perks, And Life insurance. etc

Safety needs

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Social Needs.

LL: This need will be fulfilled by going for a days picnic. ML & HL: They fulfilled this need by having cricket match, also another way they fulfil this needs is by having informal meeting at someone place. LL: for the Lower level the esteem needs will be to gain respect from the other 2 levels ML: for the medium level, the esteem needs might be to have promotion to a higher post and get Fringe benefits. HL: for the higher level, the esteem needs might be need for recognition (awards) or gaining a higher post like regional manager. Etc ML&HL: for ML their self actualization will be having a house of his/her own, whereas for HL it will be like owning the company or getting maximum no. of share in the company.
Figure 3.5 demonstrate different level of needs in the hierarchy.

Esteem needs.

Self Actualization.

Whereas in the case of Douglas Macgregor - Theory X and Theory Y, Asian paints use different techniques for motivating theory X and Y for instance:Asian paints managers first collect information of Theory X employees through performance management at the time of appraisal. The information helps the managers to develop skills of their employees and it also helps them to recognize when training is needed. With proper training the Theory X employees would be motivate and they would start functioning as Theory Y employees and complete the goals of the company by working hard for Asian paints.
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The performance management helps Asian paints to collect data to make sure targets are met and that all the workers are doing well. If targets are not met Asian paints can set out courses of action to fix the problem for example giving the workers more training. For theory Y people, with the help of performance management Asian paints has improved their service by employing more of Theory Y workers that work to their full ability and they also try to improve the relationship between workers and the company. The Theory Y employees along with the managers are a part of performance management. They identify common goals, which are linked to the goals of the organization. Every 12 months an appraisal system is carried out at Asian paints. The Theory Y employees are a part of the decision making system in which they discuss about what is going well, what can be improved, how they would wish to develop and other suggestions from them for the companys policies. These meetings are done by manager of Asian paints for the employees and are confidential.

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Q.4a)

Describe

the

nature

of

groups

and

group

behaviour

within

organizations? Mullin (2007) says the various behaviours of the team members must mesh in order to achieve objectives. In order to work successfully in teams, in is important for them to behave in a certain way. The workers must concentrate on their work well and the specialists must give their collected knowledge for the job. The managers should be able to solve the problems immediately, quickly and efficiently and some people should see o it that all of the people above work in a team efficiently. There are two main types of groups formed within the organisation. 1) Formal group: - are created to achieve specific organisational objectives and are concerned with the co-ordination of work activities. For e.g. in Asian paints the formal groups which are formed are the trade unions, relationship between the CEO and the different States managers etc. 2) Informal groups: - are based more on personal relationship and agreement of group members than on defined role relationships. Types of groups in Asian paints Pvt ltd.

Formal Groups . Command Group. Task Groups

Informal Groups.

Friendship Group. Interest Groups

Small Groups. Large groups. Primary Groups. Secondary groups. Coalitions Membership groups. Reference groups.

Figure 4.1 gives you an idea about of how groups are formed. (www.scrib.com)

Formal groups: The formal groups which are formed by the Asian paints are the command groups and the nature of task. The command group signifies the level of hierarchy or say the chain of command present in the hierarchy of the management that is under whom

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the subordinates have to report. For e.g. the employees have to report to the managers and then managers to the CEO. Whereas task groups are formed on the basis of specific task cut out by the management to the employees. For e.g. in Asian paints the uses of project teams or say carrying out strategies to sort out some problems. Informal groups:The informal groups which are formed by the Asian paints are the Grapevine takes places where different members of staff from different departments comes together and discuss the matters relating to the organisation news. For e.g. a junior staff have a chat with other member of the organisation discussing about the matters in the organisation relating to the rewards given to the different departments or removal of the employees without being informed to the employees.

Forming Storming Norming Perfoming

Figure 4.2 illustrates how informal groups are formed.

Q.4b) Investigate the factors that lead to effective teamwork and the influences that threaten success? Whether in the workplace, or in sports, or amongst members of a community, effective teamwork can produce extraordinary results. However, that is easier said than done, for, effective teamwork does not happen automatically. There are a number of factors that are required to cohere together, working seamlessly, for an effective team to develop and work.The factors that lead to effective teamwork in Asian paints are as follows:- 1) Effective Teamwork is about Good Leadership:RISBT, MUMBAI, INDIA KEYUR DESAI Page 34

One of the most important aspects of effective teamwork is effective leadership. This means that the team leader should have the skills to create and maintain a wxorking culture that is positive. This helps to motivate and even inspire the team members to get involved in creating an environment where there is a positive approach to work, along with high levels of commitment. For e.g. in Asian Paints during investment projects they follow team based working where in which employees from different departments are selected for the project. During this project the project manager follows a democratic style of leadership, where the project manager takes ideas from the employees in the team which help the organisation to a better solution. According to the author, he feels that by adopting Autocratic leadership style will help the organisation to meet their deadlines on time (Project deadline) and also by using this kind leadership will keep employees in mind that they need to achieve the targets set by the management. The other Factor of that will lead to effective teamwork is effective communication:- It goes without saying that communication is a vital factor of interpersonal interaction, and the very term teamwork represents interpersonal interaction. Hence, one of the key aspects of effective teamwork is open communication, wherein it enables the members of the team to articulate their feelings, express their plans, share their ideas, and understand each others viewpoints. Asian paints Pvt ltd adopts integrated network where it allows full two way communication between all the groups. It is a typical brainstorming session where all the complex problems are solved with all group members.
A

Figure 4.3 explains the integrated network.

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Q.4c) Evaluate the impact of technology on team functioning within a given organisation? Technology is clearly a major influence on the pattern of group operation and behaviour. Over the years Asian Paints Pvt ltd have drastically changed and adopted the style of working according to the Market changes. Asian Paints Pvt Ltd currently in 2009-10, the company has setup and stabilized two centralized customer contact centres for improving servicing to its dealers. The contact centres have been provided with advanced telephony solutions with integration with companys backend applications. This has allowed the Asian Paints Pvt ltd to standardize the order taking process and provide dealers with a uniform, agile and improved experience of interacting with the company. This has also given the capability to improve the speed of enabling new services being offered to the dealers and also the end consumers. Also Asian Paints Pvt ltd are using the method of CAD (Computer Aided Design) AND CAM (Computer Aided Manufacturing) process for manufacturing their product. The process Cad explains that the operator or instructor will feed in the data as per the customer needs in the computer thereafter the Cam process comes into play which will take place at the manufacturing base, where the data will be collected and will be finally the person in charge at the manufacturing will give the command of final output where the output will be processed and manufactured. There has been a lateral change in the team functioning in Asian paints because of the impact of information technology; there are new patterns of work organisation which affects the structure of the Asian paints by the involvement of new hi-tech machines which reduces the manpower and increase the productivity and efficiency of the business which indeed has de-motivated the employees of Asian paints because of delayering the structure of the organisation. At the other end there some benefits of technology:- Movement away from large scale centralised organisation to smaller working units of Asian paints have helped them in creating an environment in which workers have relate more easily to each other by bring the lean and kaizen techniques into consideration. Also the other benefit is that the task which is given by the management is done much faster and less time is consumed on one particular task. And by using the CAD & CAM method the perfection and non zero defected product is being manufactured which has helped them to gain customer loyalty.
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Conclusion:The two organisation being in the same industry are shown how do they differ. The study of organisational structure and culture shows how does it effect on the business performance. Both the organisations clearly demonstrate how they differ from each other, Bombay paints public ltd is an informal organisation with wide and flat span of control whereas Asian Paints Pvt ltd is a formal organisation with tall and narrow span of control. The culture of Bombay paints publc ltd is role orientated culture where every employee focuses only on the role given to them by the management. whereas Asian paints Pvt ltd is People culture where socializing between the workers as well as thhe consumers.The individual at work has led to effectiveness and success. For example the workers/managers in Bombay paints they try and give their best effort so that not only the firm gains but also the individuals get their reward. The leadership styles adopted by Bombay paints and Asian paints are democratic and autocratic respectively. However Asian Paints motivates by the different levels of needs in the hierarchy. Both the firms should give importance to human needs as well that is social needs so that the employees will feel committed and motivated and will work more efficiently. There are formal groups as well as informal formed that exist at Asian paints. Informal groups can have a more significant effect within Asian paints as they can challenge the status quo as well as provide more social functions . To conclude it is evident from this study that all organisation are influenced by internal factors that are dependant upon the structure, leadership and the culture of the organisation. It is also clear that a role of an individual in the organisation is critical. Providing a positive culture through clear leadership and valuing the employees can significantly affect the success of the organisation.

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BIBLIOGRAPHY:1. Useem, M., How to Groom Leaders of the future, in Pickford, J. (ed.) Financial Times Mastering Management 2.0, Financial Times Prentice Hall (2001), 2. Stimpson, P.S., 2006. Business Studies. Chennai: Chennai Micro Print (P) ltd. 3. Mullins, L.J., 2007. Management and Organisational Behaviour. 8th ed. Pearson Education ltd. 4. Fullan, M., leading in a culture of change, Jossey- Bass (2001) 5. Barara. Jocelyn Fleming Organisational change (2006) 3rd ed. Pearson education limited UK. 6. http://www.asianpaints.com 7. http://www.bombaypaints.com 8. http://www.scrib.com/asianpaints/#1/groupsatwork/.com 9. http://www.informationrain.com/maslows_hierarchy_of_needssvg.png&imgre furl.com

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