Organization and Behaviour report

Prepared for: Mr John Andre Prepared by: NguynHong Nam (Mike) ID: F05-268 Number of word: 2160 Organization Behaviour

Summary
In 2010, United Airlines and Continental Airlines announced their intention to merge their operations in a $3 billion deal to form the worlds largest airline. The merged combination of the two airlines will account for 40 percent of the U.S. passenger traffic across the Atlantic and 53 percent of all traffic on Pacific routes. In the U.S. the two airlines have overlapping nonstop flights in 13 markets. United is buying Continental, and the combined company will keep the United name and be based in Chicago. Jeffrey A. Smisek, Continentals chief executive, would run the merged company. The U.S. airline industry in the first decade of the 21st century has accumulated $60 billion in losses and shed 160,000 jobs, according to the Air Transportation Association, a Washington trade group. United and Continental each suffered losses for the past two years, and as borrowers they have both received poor credit ratings. The U.S. airline industry has been plagued by a necessity to book over capacity, which has led to clogged airports and delays on the tarmac as planes wait to take off ad for landing slots to open up. Mergers are one way that airline executives can improve efficiency. The synergy of an airline combining United and Continental could lead to improvements in revenue and costs, and give the airline better access to credit and equity markets. The logistics of running the merged airline can be expected to be extremely challenging. The main fleets of the two carriers consist of 700 aircrafts. Continental flies only Boeing planes, while United flies both Boeing and Airbus planes. Flying planes from different manufacturers requires separate maintenance procedures, staff training and spare parts. The combined workforces of the two carriers amount to more than 88,000 employees. Other than the consideration of administrative personnel, management does not plan to have large cuts in staff. Yet is could still face difficult negotiations with the unions that represent pilots, flight attendants, and maintenance workers which can create stumbling blocks to a successful merger. A key task in implementing a merger between airlines has been to synchronize work rules and consolidate union seniority lists into a single worker roster. Since seniority determines which pilots get to operate higher-paying aircraft assignments and better working hours, sorting out the seniority roster can result in strong resistance from the pilots who fare worse under the combined roster. US Airways, for example, continue to fail to get workers to agree to unified contracts, five years after its merger with America West. Maintaining two sets of
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work rules has kept US Airways from profiting from some of the planned economies of this merger. The two chief executives of United and Continental Airlines claim that the combined carrier should benefit from savings of at least $1 billion a year and from substantial extra revenues once operational integration is completed in 2013.

Table of Contents
Summary ................................................................................................................................ 2 Introduction ............................................................................................................................ 5 1a. Compare and contrast different organisational structures and cultures stakeholder ...................... 6 Compare and contrast in organization structure: ....................................................................... 6 Compare and contrast in organization culture .......................................................................... 7 1b. Analyse the relationship between an organizations structure and the effect on business performance............................................................................................................................ 8 1c. Factor which influence individual behaviour at work .............................................................. 8 2a. Analyse how organisational theory underpins principles and practices of organizing and of management ......................................................................................................................... 10 Scientific management .......................................................... Error! Bookmark not defined. Classical administration ......................................................... Error! Bookmark not defined. The human relations approach ................................................ Error! Bookmark not defined. The system approach ............................................................. Error! Bookmark not defined. Contingency approach ........................................................... Error! Bookmark not defined. 2b. Compare the different approaches to management and theories of organisation used by two organisations......................................................................................................................... 12 3a. Discuss different leadership styles and the effectiveness of these leadership approaches ............ 12 Leadership style of Microsoft .............................................................................................. 12 Effectiveness of Microsoft leadership style ........................................................................... 13 Leadership of united airline ................................................................................................. 13 Effectives of Affiliative style ............................................................................................... 13 Conclusion ........................................................................................................................... 14 References: ........................................................................... Error! Bookmark not defined.

Introduction
In the case of Microsoft Corp. Software Company, after 27 exist years, Microsoft network is broadened in 105 countries and region with 78000 people. The success of Microsoft is a proof for managements talent of William H. Gates and A.Jeffrey A. Smisek although they have a different management way. Have a question is given: What is the best way for management? There are not any adequate answers for this question. However, in management the talent of overview, foreseen and observes are necessary to evaluate flexible most.

1a. Compare and contrast different organisational structures and cultures stakeholder 1a.1.Compare and contrast different organizational structures:
Getting the structure right is important for any organization, whatever its size, its technology or its environment. As we can see that United Continental Airline(UCA) and Microsoft are both a formal organization.Its a structure of rules and regulation and based on certain principal such as the specification of tasks. In addition, the organization is laid down by the top management to achieve certain goals. In this case, Microsofts President Bill Gates paid attention to develop production the Windows operating system and Office suite of applications that he could get more customers attraction and competition. To be convenient for product development and management, he divided company following functional structure. As in the chart, we can see under CEO, they divided into many levels: from the Chief executor, senior management, middle management to workers. For instance, Microsoft employees worked in smaller groups and all product activities were done at one site. Microsoft has always had a multi-product strategy where the product managers and the development teams are the champions and that is a process that has allowed us to have many more products than anyone else in the industry (Gates, 2008). In general, to manage employees pretty well he used flat structure with narrow span control for office. Hierarchy was centralized that Gate possesses the most of power. It is true as James Collins said: To my mind, Microsoft has never been a company. It's basically like a big wheel, with Gates at the hub. (icmrindia, 2008). This can help Microsoft to control their employees authority, responsibility and communication better. Furthermore, with formal organisation structure it will help to allocate authority responsibility better. Whereas, CEO of United Continental Airline Company, Jeffrey A. Smisek has reconstructed the company from top to bottom. He shapes the companys division, tall and decentralized structure. He has broken UCA into seven operating divisions, each units has own leader and they have individual decision making and accountability. Looking ahead, the scale of UCA rose larger with a number of employees. It is reason why he has delegated a second tier of executives. On the other hand, Jeffrey A. Smisek has reduced a level of management to manage more easily and efficiently. United Airlines structure is less flat therefore; the span of control is narrower. United Continental has applied a functional structure. This type of structure is effective for managing and easy to focus on product group.
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United Continental Tall organization Organizational Structure Narrow span of control Decentralization Formal structure Organizational Culture Functional structure Role culture

Microsoft Tall organization Narrow span of control Centralization Formal structure Functional structure Task culture and power culture

Compare and contrast in organization culture

Making a right structure is not enough for an organization to run clearly and effectively. Organizational culture is also remarkable. As the same as other concepts, there are many way to define organizational culture. Culture in the sense of organizational climate is the collective self-image and style of the organization; its shared values and beliefs, norms and symbols (Handy, 1993). However, following the ideas of Harrison, Handy classify four main types of organizational culture: power, role, task, and person culture. In fact, power culture is the way Gate created in first years of Microsoft. At that time, the control key is Gates; he is the only person who can make decisions. Now, we are going definitely to United Continentials culture under management of Jeffrey A. Smisek. Refer to division structure; Jeffrey A. Smisek gave a strong role culture. We know that United and Continental Airline have been merged for not long time ago. And these two companies have different culture so when they merge together it is a big problem how to solve this problem. Many customers think that Continental will be ruin up by American Airline because of the different culture of them. However with this merged, united became the biggest airline in the world so its suitable with role culture In contrast, at Microsoft the main purpose of the job is to get the work done. The performance is judge by the result of the group. For example, people are divided in a group and each person in a group has a job to do. The individual who are important are the expert with the ability to accomplish a particular aspect of the task. In this example we can see that
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Microsoft is using task culture (BPP, 2004). Moreover, the people need to compete with each other to get a good performance review. But an equal number of people must receive a bad performance review. This leads to a lack of empathy or friendship in an office and generate an unfriendly environment so the member in a group must focus on their own need.

1b. Analyse the relationship between an organizations structure and the effect on business performance
Organization structure and culture have a related relationship and cannot be separated. The culture of an organization effect in the structure because it determines how the organization is arranged to fit its culture. Although Microsoft and United Continental have the different organization structure but these two Corporations is still doing well. Microsoft is having tall structure which is supported by task culture because of the functional specialization. Each department and each staff is usually given a certain task. This task culture is necessary to ensure department and proper channels reporting with proper line of command.A problem when using role culture is its very slow to adapt the change (BPP, 2004). Microsofts Net income climbed 48% to $4.52 billion, or 51 cents a share, exceeding the 46cent average of analysts estimates compiled by Bloomberg. Sales advanced 22% to $16 billion. (Bass, 2010) United Continental have also a role culture. United Continental Holding (UCH) and Continental Airline (CO) reported a net income of $840 million. That was a down of 12% from a pro forma net profit of $915 million in 2010. (atwonline, 2010) We can see that both of Microsoft and United are doing quite good now. So we can say that this kind of structure is a good structure for both of this company but Microsoft has a little better.

1c. Factor which influence individual behaviour at work

In any side, any aspect, every people differ from one another. So on, behaviour is a complex element in management. However, without understanding behaviour will lead to result in conflict and frustration. As a starting point, a manager need to recognize how differences influence subordinates behaviour and attempt to understand them if they are to be successful (Moorhead, 2011). Individual behaviour is affected by diverse different factors.
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Such an individual factors are personality, perception, attitude, learning, conflict, stress and change. The first factor is about personality. Personalities become more clearly defined and generally stable when people grow up into adulthood. Personality is the relatively stable set of psychological attributes that distinguish one person from another (Griffin, 2011). Basically, personality starts at birth, goes on adolescent and shapes in adult; but it can still be changed by circumstance, reflect of environment or situation. The second element is perception. Touch, sight, hearing, taste and smell are five senses help people awareness, encoding and decoding information about environment. The way and the process discover environment is not the same target and situation so each people will have own distinctive view. Perception is cognitive process and appears whenever stimulate the senses. There are three factors which influence perception: perceiver, target (or object) and situation. Through the process of observing, selecting and organizing, people perceive data information from outside. Another aspect of individual behaviour in organizations is attitudes. We define attitude as: An attitude is positive or negative feeling or mental state of readiness, learned and organized through experience that exerts specific influence on a persons response to people, objects, and situations (Griffin, 2011). Next, we jump to conflict aspect. Conflict arises because of a disagreement. In general, it is no surprise that most of people still think conflict as negative and avoid it. Although, some types of conflict are helpful and encouraged to improve decision. Three types of conflict are identified: bargaining, bureaucratic and systems conflict. A sequence of conflict was coded high or low on three dimensions: attention to own-view, attention to other view and relational disruptiveness. As we know conflict may occur between two individuals, as in the case of superior vs. subordinateetc. When conflict is high and long-term, stress is consequence. Some expression in stress are exhaustion, loose temperKeep stress out of your life is the best way to make best feeling. Now turn to the scenario to analyze more clearly. As the entity of Microsoft Corp, Bill Gatess characters are also affecting to individual behavior in work. Gates has a gifted talent in predicting the changing events and organizing, and directing the business follow what he expected. Take, for example, the Xbox 360, introduced to the world in 2001. Who would have thought that Microsoft would enter the game-console industry? Although the Xbox still faces heady competition from Sony's Wii and Playstation, it is connected to several million
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US household televisions. Furthermore, Bill Gates more concerns to his employees and the work environment and brings energetic and enthusiastic when dealing with people. In 2007, the company was ranked one of Fortune's 100 best companies to work for. That is all symbols of extraversion person.

2a. Analyse how organisational theory underpins principles and practices of organizing and of management
Classical administration This approach emphasize on the purpose, hierarchy of management, principles of organization and technical requirement. From these purpose of the approach, it is essential to understand how the best way for an organization works and how to improve productivity. Classic approach includes two sub-groupings: scientific management and bureaucracy. First of all, we concentrate to scientific management. F.W. Taylor (1856-1917), a father of scientific management, recognized and defined scientific management in the early 1900s. Scientific management focuses on the process of working and the best work method is possible to perform. And then, motivation is needs concept that managers should do. It is useful to get workers working more efficient, soon increase the volume of productivity He (Taylor) was our first professional guru and Taylorism-with its twin goals of productivity and efficiency (Stern, 2011) Next, we turn to another sub-grouping: Bureaucracy. A Germany sociologist Weber shows the concern for Bureaucracy. Weber developed the concept of Bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness (Veeramuthu, 2011). Especially, he emphasized on the administration based on rules of experts and rules of officials. Human Relation Approach The next evolutionary step in during 1920s (Human relation School) paid attention to social factors at work and behaviour of employees within an organization. This theory also studies the way of how managers should behave to motivate employees to meet organizational target.

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Another branch of organizational research relating to Human Relation Approach is theory X and theory Y of the writer Douglas McGregor. Assumptions of two theories are described as follow: Theory X: managers assume workers dislike and avoid work if possible, so they must use coercision, threats, and various control schemes to get workers to make adequate efforts against objectives. They assume the average worker wants to be directed and prefers to avoid responsibility, has little ambition, and wants security above all (Mullins, 2011) Theory Y: assumes that individuals do not inherently dislike work, but see it as natural as play or rest. Furthermore, external control and threat isn't the only way to encourage productivity, and the most significant rewards are the "satisfaction of ego" and "self-actualization needs" (Mullins, 2011)

System approach: Mullins claims that system approach focus on the total work of the organization and the interrelationships of structure and behaviour and the range of variables within the organization (Mullins, 2011). Indeed, attention concentrates to analyze organization as a system with a number of sub-systems. Moreover, the approach gives a meaning that any activities of one part also affect to other parts. It is mean that managers should have openeyed in a whole. Contingency approach: The last theory but more correct than others: Contingency approach. Concerning with structure as a influence on organizational performance; contingency approach implies that there is no one best way to organize. Depend on different situation and circumstance of each organization, it is lead to appropriate designed structure and management system are different. Actually, it is claimed by Tim Barnett The contingency approach to management (also called the situational approach) assumes that there is no universal answer to such questions because organizations, people, and situations vary and change over time. (Mullins, 2011) However, this research also indicated that different forms of structure have equally successful chance

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2b. Compare the different approaches to management and theories of organisation used by two organisations
According to the culture and structure in organization, United Airlines use scientific management as the approach to management the organization. In order to maintain the development of new system, United Airlines use this approach to be stricter in management to manage the employees of both United and Continental airline. Many employees of United have quit because of this issue. Furthermore, when United apply this scientific management, the employees do not feel comfortable to work because the boss decides everything. However, it may cause a stressful environment at workplace for employees. United Airlines just focus on working; they do not care about the personal life of employees much. Therefore, the employees do not feel really wantto work in the company and are not willing to work for the company in long-term. Unlike United which is scientific approach, Microsoft is having a Contingency approach. With this theory, its all depend on the internal factors like people and task; and external factors: environment.

3a. Discuss different leadership styles and the effectiveness of these leadership approaches
In any company, the way your boss lead the company is very important to the success of the company. There are totally 6 leaderships styles which are Coercive, Pacesetting, Coaching, Democratic, Affiliative, Authoritative. Leadership style of Microsoft According to Microsoft, the leadership style that they are using is Autocratic style. The control is basic to Gates nature and his management. He is trying to monopolize the World Wide Web software market and has had legal problem with the department of justice. Microsoft restricted the ability of its internet partner to deal with its rivals. Also he dislikes complaints (Gates, 2008). Moreover, there is one more way that Microsoft often uses is delegation style. Bill Gate often paid special attention for the talent and make them work for him He believe that the recruitment of talent software engineer was one of most important in the software industry. He gives autonomy to his manager, his delegate authority to managers to run their independent department.

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Effectiveness of Microsoft leadership style Both of autocratic and delegation style have some advantage and disadvantages to a company. The benefits of autocratic leadership is when decision need to be made quickly without consulting with a large group of people. In a situation that are particular stressful, group members may prefer an autocratic style to make people in a group to focus on specific task without worrying making a complex decision. While autocratic leadership can be beneficial at times, there are also many instances where this leadership style can be problematic. Because autocratic leader make decision without consulting the group, people in a group may dislike that they are unable to contribute ideas. The same as delegation style, it has both side of effect to the company. The positive effect is you dont need to micro manage the employees and the manager can determine the most capable employee for each task. But the negative effect of this style is it can be abused by management assigning the wrongjobs to the wrong person not looking for feedback or demanding to much of one person. We can see that Microsoft is now still one of the biggest corporations with the revenue of $17.37 Billion. So we can conclude that the leadership style that they are using is quite effective in general. Leadership of united airline According to the United Airline, the leadership style that they need to use is affinitive. The leader needs to communicate with the worker to create connection and harmony within the organization. With this leadership style, the leader or CEO of United Airline can build a team harmony which will improve communication, repairing broken trust and has a positive impact on the overall organization structure. Effectives of Affiliative style The Affiliative leader establishes him/her as one of the group, in close communication with subordinates, and affirms their importance and value. The people in a group talks and spread the emotional contagion throughout a group. They share ideas and inspiration.

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Conclusion
In summary, this study provides overview of the core concepts and indicates the strong influence between organization structure and culture. The purpose of the overview is to provide the field literature and help readers understand more about the method of management. In addition, research on the case study of Microsoft and United Continental, we can learn an experience and get your own management in reality more flexible and easier.

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References

Anon., 2007. Microsoft Corporation. [Online] Available at: http://www.microsoft.com/presspass/exec.mspx?pf=true [Accessed 2011]. Anon., 2009. Bill Gate Leadership. [Online] Available at: http://www.icmrindia.org/casestudies/catalogue/Leadership%20and%20Entrepreneurship/Le adership%20the%20Bill%20Gates%20WayLeadership%20and%20Entrepreneurship.htm#Introduction [Accessed 2011]. atwonline, 2010. [Online] Available at: http://atwonline.com/aircraft-enginescomponents/news/united-continental-posts-840-million-2011-profit-0126 [Accessed 2011]. Bass, D., 2010. Microsoft Profit Jumps; Sales Rise at Fastest Pace in Two Years. [Online] Available at: http://www.bloomberg.com/news/2010-07-22/microsoft-profit-jumps-sales-riseat-fastest-pace-in-two-years.html [Accessed 16 February 2012]. Chart, M.O., 2010. Cogmap. [Online] Available at: http://www.cogmap.com/chart/microsoft [Accessed 2011]. DTS, n.d. Indeed. [Online] Available at: http://www.indeed.com/forum/cmp/Microsoft/scompany-culture-at-Microsoft/t10437 [Accessed 2011]. Gates, B., 2008. Bill Gate Leadership Way. [Online] Available at: http://www.icmrindia.org/casestudies/catalogue/Leadership%20and%20Entrepreneurship/Le adership%20the%20Bill%20Gates%20WayLeadership%20and%20Entrepreneurship.htm#Introduction [Accessed 2011]. Griffin, 2011. Organizational Behavior: Managing People and Organizations. houghton. Handy, 1993. Understanding Organizations. Penguin. Hess, M., n.d. CBS News. [Online] Available at: http://www.cbsnews.com/8301-505143_16257319404/merger-angst-will-united-ruin-continental/ [Accessed 30 November 2011]. icmrindia, 2008. Bill Gate Leadership Way. [Online] (http://www.icmrindia.org/casestudies/catalogue/Leadership%20and%20Entrepreneurship/L eadership%20the%20Bill%20Gates%20WayLeadership%20and%20Entrepreneurship.htm#Introduction) [Accessed 2011]. Moorhead, 2011. Organization: A guide to Problems and Practice. Mullins, 2011. Management and Organizational Behavior. Edexel. Stern, 2011. Management today. Veeramuthu, 2011. Organizations and Behavior, Hanoi: National Economic University.

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