Organisations and Behaviour Assignment 1

Nguyễn Thị Kiều Anh - Snow - F05014 BTEC HND IN BUSINESS (MANAGEMENT) ASSIGNMENT COVER SHEET NAME OF STUDENT REGISTRATION NO UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE Nguyễn Thị Kiều Anh - Snow - F05A F05-014 Organisations and Behaviour Microsoft of (individual report) Mr John Andre 21 November, 2012 I, _ Nguyễn Thị Kiều Anh _ hereby confirm that this assignment is my own work and not copied or plagiarized from any source I have referenced the sources from which information is obtained by me for this assignment Signature 21 November, 2012 _ Date -FOR OFFICIAL USE(Course Administrator) Assignment Received By: Date: Nguyễn Thị Kiều Anh - Snow - F05014 Unit Outcomes Outcome Evidence for the criteria Feedback Assessor’s decision First attempt Understand the relationship between organisational structure and culture LO1 Understand different approaches to management and leadership compare and contrast different organisational structures and culture 1.1 explain how the relationship between an organisation’s structure and culture can impact on the performance of the business 1.2 discuss the factors which influence individual behaviour at work 1.3 compare the effectiveness of different leadership styles in different organisations 2.1 explain how organisational theory underpins the practice of management 2.2 evaluate the different approaches to management used by different organisations 2.3 LO2 Merit grades awarded M1 M2 M3 Distinction grades awarded D1 D2 D3 Assignment Rework Internal Verification Nguyễn Thị Kiều Anh - Snow - F05014 Outcome Evidence for the criteria Feedback Assessor’s decision First attempt Rework ( ) Well-structured; Reference is done properly / should be done (if any) Overall, you’ve Areas for improvement: DATE ASSESSOR SIGNATURE / / / / NAME: (Oral feedback was also provided) STUDENT SIGNATURE DATE NAME : FOR INTERNAL USE ONLY VERIFIED YES NO DATE : VERIFIED BY : NAME : ORGANIZATIONS STRUCTURE, CULTURE Internal Verification Nguyễn Thị Kiều Anh - Snow - F05014 Prepared for: Lecturer, Mr John Andre Organization and Behaviors Banking Academy, Hanoi BTEC HND in Business (Finance) Prepared by: Nguyễn Thị Kiều Anh - Snow - F05A Registration No ITPF05-014 No of words: 2704 Submission date: 20 November, 2012 TABLE OF CONTENTS Nguyễn Thị Kiều Anh - Snow - F05014 INTRODUCTION Study about organization and behavior helps learner understand about individual and group behavior in organizations and their application in managing behavior in the workplace The structure and culture of an organization are the key factors which contribute to the motivation of the workforce at all levels of the organization This assignment will explore the links between the structure and the culture of organizations and the way that these influence the behavior of the workplace through the analysis of two companies: Microsoft and Hewlett Packard Microsoft is a publicly traded company producing and selling software programs In 2010, it was ranked as 36th on Fortune 500’s annual rankings of America’s companies Hewlett Packard is also one of the leading technology companies, operating in many countries in over the world This report based on many resources on internet, books to illustrate the factors affect to the operation of the business such as: organizational structure and culture, and motivational theories Nguyễn Thị Kiều Anh - Snow - F05014 CONTENTS I Understand the relationship between organisational structure and culture 1.1 Compare and contrast different organizational structures and culture a Organizational structure Structure is a very important part of any organization, whether it’s big or small Organization structure relate to the way that an organization arranges staffs and jobs logically in order to help companies perform effectively and met its stated objectives (Scott, n.d.) There are many forms of organizations, however, flat and tall structure is considered as core structure of the company Microsoft and Hewlett Packard also have flat structure “A flat organization is one which, in relation to its size, has a small number of hierarchical This implies a wide span of control” (BPP, 2004) According to Charles Hill and Gareth Jones (2008, p.217) “With its 30,000 employees and five hierarchical levels, Microsoft has a relatively flat structure” It has a broad pyramid shape, wide span of control with fewer levels between the top of the pyramid and the bottom of the pyramid with Steve Ballmer (CEO of Microsoft), the executive management staff forming the top of the pyramid and many employees forming the bottom of the pyramid Nguyễn Thị Kiều Anh - Snow - F05014 Figure 1: Microsoft’s Organizational Structure With HP, Hurd (CEO of HP) “has flattened HP’s 14 layers of management to have more executive vice presidents reporting directly to the CEO Business units will have more autonomy to execute their plans combined with increased accountability for their results” (Gitman & McDanie, 2009) Therefore, nowadays HP has flat structure Figure 2: Hewlett Packard’s Organizational Structure b Organizational Culture There are many ways to define culture and also many ways to understand organization culture Culture (in the sense of organization “climate”) is the collective self-image and style of the organization, its shared values and beliefs, norms and symbols (BPP Learning Media, 2010, p.102) Nguyễn Thị Kiều Anh - Snow - F05014 Organizational culture of Microsoft and HP has some same features For example, they also decentralize authority, empower to employees, in other words, it is individual culture However, two companies also some different characteristics Microsoft’s organizational culture is fear and non-innovative whereas HP’s one is innovative • Similarities Both two companies also have individual’s own motivation strategy They treated their employees as members of a family, trust and respect each other Their employees are empowered and are allowed to make their own decisions and speak out their ideas regardless of age or degree • Differences Eichenwald said: “Microsoft Company whose innovations had to often been lackluster or weak” In contrast, according to Kevin C.Desouza (2007) “HP is a company that recognized the value of innovation throughout the organization HP focuses on all aspects of innovation: product and service innovation; innovation in business models; cultural and organizational innovation” 1.2 Explain how the relationship between an organisation’s structure and culture can impact on the performance of the business The relationship between organization’s structure and culture impact on the performance of the business directly “Organization structure impacts workplace culture through controlling, coordinating and motivating employees to work together to accomplish company goals and objectives” (Thornton, 2012) One of the most important features in relationship between organizational structure and culture is that it gives clear picture to the employees about their limitations and responsibilities and so not to concern about the issues that are beyond their scope of expectation this will help employees to work more efficiently An effective coalition between organization structure and culture gets people closer to achieve organizational end goals more efficiently” This proves that structure is an integral part of any organizational culture Nguyễn Thị Kiều Anh - Snow - F05014 The relationship between organization’s structure and culture impact on the performance of the business directly It can be assessed as one of factors decides that whether the company will succeed or fail in the competitive market We can evaluate relationship between organizational culture and structure through technical analysis in stock charts According to istockchart, “A stock chart is a graphical representation of stocks price over a set period of time” If the company has good relationship between organizational culture and structure, they will perform well increase revenue, profitability  increase stock prices In contrast, stock prices will decrease significantly • Microsoft - Structure: Flat - Culture: Fear, individual, non-innovative Figure 3: Stock prices of MSFT This is line chart which expressed the stock price of MSFT from 2003 to 2012 As can be seen, the stock prices of MSFT fluctuated significantly between 15 and 37 millions Starting with an unstable trend, the stock prices increased to the highest point of 37 millions in 2008 However, it decreased dramatically to the lowest point in 2009 From 2010 to 2012, stock prices saw a slightly and quite a stable in the years after This proves that MSFT does not combine effectively between organizational culture and structure Nguyễn Thị Kiều Anh - Snow - F05014 • Hewlett Packard - Structure: Flat - Culture: individual, innovative Figure 4: Stock prices of HP Similar to MSFT, HP also had a strongly fluctuations from 2003 to 2012 Starting with a dramatically increase to the highest point about 55 millions in 2008, however, it saw a significant drop in 2009 with only 25 millions Then there was a significant increase between 2010 and 2011 with 55 millions, highest compared to all years, followed by a dramatically drop in the last years This proves HP also does not strong combination between organizational structure and culture 10 Nguyễn Thị Kiều Anh - Snow - F05014 Figure 5: Comparison of stock prices of HP and Microsoft In general, HP and MSFT also not succeed in building good relationship between organizational structure and culture Therefore, their business operation is not stable among years However, as can be seen, HP still has more outstanding features than MSFT such as innovative culture As a result, stock prices of HP are higher than MSFT 1.3 Discuss the factors which influence individual behaviour at work The behaviour of employees is difficult to predict because each individual behaves differently in different situations and with different people Employees’ behaviour influence on the operation of the business directly so manager need understand why they behave as they to change their behaviour in such a way as to increase their contribution to organizational goals There are five factors influence individual behaviour at work: • Personality • Perception • Attitude • Ability and Aptitude • Conflict, Stress and Change We will explain some factors to understand in detail about its effects of individual behaviour at work of Microsoft company 11 Nguyễn Thị Kiều Anh - Snow - F05014 a Ability At Microsoft, human being is factor decide whether success or failure of business operation They have a key role because these people can grasp the situation better, catch up how to work more effectively at work, thus saving time and money for the company Therefore, Microsoft is interested in employees’ ability To recruit talent for Microsoft, HR by David Pritchard director takes more responsibility of applying the most effective measure to recruit and train talent people (Chu, 2011) The selection is carried out under a variety of forms For a leading company like Microsoft, they look for people who are the best in the famous universities and achieve award in competitions about knowledge In order to check their ability directly, after selecting thousands of records, the candidates have to undergo an interview Pritchard used to say: “When hiring people with average ability, it is preparing for the end of the Microsoft” Therefore, the qualification examination is held fairly Besides, Microsoft also choose people who without a master's degree but they have performed well in work In short, to work at Microsoft, they must be intelligent, always know dedicate their talent for the company; they will be paid for what they have contributed to the company b Attitude Attitude of all member of Microsoft company together and attitude of employees with company is positive The good relationship among member of company is the most important factor to assess the development of the company Employees who are treats with respect, they will have positive attitude in protect company’s assets and participate in company activities Microsoft creates for them an environment where people are treated fairly and feel comfortable to help them reduce pressure of the information technology industry (janvier, 2009) II Understand different approaches to management and leadership 2.1 Compare the effectiveness of different leadership styles in different organisations a Leadership style of Steve Ballmer and effectiveness 12 Nguyễn Thị Kiều Anh - Snow - F05014 Steve Ballmer is a transformational leader It is expressed through passion and enthusiasm about what he does He believes is “universally applicable to anybody who wants to be a leader” is passion “You have got to love what are doing” (Anon, 2007).At Microsoft’s company meeting, he shouted: “I love this company” He is also an autocratic leader He always thinks that what he is right He can anything to motivate employees meet objectives which he proposes It is can be said that Ballmer’s leadership style is negative Peter Skyte, national officer at Amicus said: “A cutting-edge company like Microsoft should be encourage staff rather than trying to motivate them through a culture of fear” Furthermore, a group of disgruntled senior Microsoft executives have been discussing ways to oust CEO Steve Ballmer, according to a report from Peter Lauria of the Daily Beast The conspirators are upset both about Microsoft’s stagnant share price and his autocratic leadership style (Spak, 2010) By most measures under his leadership Microsoft’s standing in the tech world has deteriorated, not strengthened (Johnny, 2012) As a consequence of this leadership style, Microsoft’s revenues have more than doubled since Ballmer took over in 2000, but its share price has fallen from $48.93 to $25.12 over the same period anyway (Anon, 2010) b Leadership style of Meg Whitman and effectiveness Meg Whitman used to be CEO of eBay before becoming CEO of Hewlett Packard so she has much experience in management Her leadership style is supportive and participative Firstly, Whitman builds strong relationships with employees by supporting treats them with care and respect (Terry, 2011) Secondly, she always listens and lets her employee’s voice there say in meetings and important decisions within the company (Terry, 2011) Although her leadership style is very positive; however, with global economic crisis as well as the ineffective combination between organizational structure and culture, its effectiveness on HP is negligible To specify, HP still does not remarkable in financial situation For the full year fiscal 2012, net revenue of $120.4 billion was down 5% from the prior-year period and down 4% when adjusted for the effects of currency (HP, 2012) 2.2 Explain how organisational theory underpins the practice of management a Scientific management (Taylor’s theory): 13 Nguyễn Thị Kiều Anh - Snow - F05014 This theory enhances the roles of management; they have to respond of selecting, training, and helping workers to perform their jobs properly (BPP, 2004) The manager breaks each job down into smallest motion for each employee Employees must obey requirements strictly This makes decline creation of employees; the role of employees does not exist in company’s business operation Job becomes boring because they must the same work in the same way The employee is only a tool to speak, not to be seen, not be concerned For MSFT - a large company, role of employee is important in company’s working performance so the employees should be treated fairly, and considered as members of family This theory is not suitable for company like Microsoft b Theory X and Theory Y (McGregor’s theory) Microsoft is flat structure with wide of control They have many employees so it is hard to control all of them so manager must base on trust on their employees to business operation Theory Y is suitable for Microsoft In theory Y worker could be describe as individuals who like work and seek responsibility (Rilly, 2012) Therefore, unlike classical theory, employees can take responsibility with themselves and their work, are not more pressure by manager From that, employees can create environment where they can develop their creativity 2.3 Evaluate the different approaches to management used by different organisations There are many organizational approaches Classical approach: Emphasis on purpose, formal structure, hierarchy of management, technical requirements, and common principles of organization + Scientific management (Taylor’s theory): divided people into work + Classical Administration (Fayol’s theory): divided people into function + Bureaucracy (Max Weber’s theory) - Human relations approach (Mayo’s theory): Attention to social factors at work, groups, leadership, the formal organization, and behaviour of people + Neo-human relations (Herzberg’s theory) 14 Nguyễn Thị Kiều Anh - Snow - F05014 - Systems approach: The integration of the classical and human relations approaches, importance of the socio-technical system, the organization within its external environment - Contingency approach (Lupton’s theory): No one best design of organization Form of structure, management, and “success” of the organization dependent upon a range of situational variables (Mullin, 2007) a Classical administration Division of work: Employee will achieve high results when they what they good at Therefore, MSFT divide into different departments with different functions such as design, testing, marketing and business for suiting with ability of each person Matched authority and responsibility: Manager is people who take more responsibility of company They build plans, projects, and divide work for employees If MSFT or plans meet the difficulty, they are nervous, and stress the most In general, the success and failure of the company depend on their decisions The scalar chain of command: As a result of the corporate reshaping, Microsoft's chain of command now looks like this: Herbold, chief operating officer; Frank M (Pete) Higgins, group vice president of interactive media; Paul A Maritz, group vice president of platforms and applications; and William H Neukom, senior vice president, law and corporate affairs, will report to Ballmer These executives previously reported directly to Gates Public relations, which formerly reported to Ballmer, will now report to Herbold, while Ballmer's other existing direct reports will continue to answer to him Nathan Myhrvold, chief technology officer, will continue to report to Gates (Pelline, n.d.) Subordination of individual interests: A management has to put company’s objectives first To that, MSFT must take care of the interests of the employee to them interest in organization’s interest as their one b The system approach In this approach, HP is considered as a system with the boundary of inside and outside HP is assessed as open system for the following reasons People who work for HP bring with effects from environment: family pressures, government demands (BPP, 2004) In addition, for input factors, it includes capital, labour, information 15 Nguyễn Thị Kiều Anh - Snow - F05014 materials which create products with high technology, high quality and highinnovative and generates output such as HP laptop, printers as a result of business activities CONCLUSION This report can be helpful resources to help people, especially students can understand deeply about “Organization and Behaviour” subject through two specific companies Microsoft and Hewlett Packard It show features about organizational structure and culture of each company and explore the link between structure and culture which interact and influence significantly on behaviour of workforce and are the key factors which contribute to the motivation of the workforce Also, the leadership style which leader uses to manage employee to understand how the company achieve success or failure Furthermore, it also provides information to more understand about managing approaches which companies follow and its effectiveness on business operation of each company In general, with more 16 Nguyễn Thị Kiều Anh - Snow - F05014 understanding of organization and behaviour will help company to have the correct orientation to develop the company REFERENCES BPP Professional Education (2004) Organisations and Behaviour 1st ed., London: BPP Professional Education Aldine House, Aldine Place Chu, D (n.d.) Bí thành công Microsoft gì? Retrieved 2011, from http://www.slideshare.net/besjsc/b-quyt-thnh-cng-ca-microsoft-l-g Eichenwald, K (n.d.) Retrieved August 2012, from http://www.vanityfair.com/business/2012/08/microsoft-lost-mojo-steve-ballmer Gitman & McDanie (2009) The Future of Business: The Essentials USA: CENGAGE Learning 17 Nguyễn Thị Kiều Anh - Snow - F05014 Groeger, M (n.d.) Retrieved from http://www.silicon-valley-story.de/sv/hp_way.html Hewlett Packard Company (19, November 2007) Retrieved March 30, 2008, from http://www.thocp.net/companies/hewlett_packard/hp_company.htm Hewlett-Packard Company (2008) Hewlett-Packard Retrieved April 2, 2008, from http://www.hp.com Hewlett-Packard Development Company, L.P (2008) Corporate Objectives Retrieved April 2, 2008, from http://www.hp.com/hpinfo/abouthp/corpobj.html HP (n.d.) Financial news Retrieved 2012, from http://knowledge.wharton.upenn.edu/article.cfm?articleid=1628 Istockchart (n.d.) Retrieved 2012, from http://www.istockchart.com/what-is-a-stock-chart Janvier (n.d.) THÀNH CÔNG VỀ MẶT QUẢN LÝ CỦA MICROSOFT VÀ NHỮNG ĐÓNG GÓP CẢI TIẾN QUẢN TRỊ CỔ ĐIỂN Retrieved 2009, from http://my.opera.com/camelliatear/blog/show.dml/2881998 Johnny (n.d.) Microsoft CEO Steve Ballmer Rated Worst CEO In America Retrieved September 29, 2012, from http://techtriffle.com/microsoft-ceo-steve-ballmer-rated-worst-ceoin-america/ McGraw (n.d.) Individual behaviour, Personality and Values Retrieved from http://vi.scribd.com/doc/101289137/Chap-002 McShane & VonGlinow (n.d.) Retrieved from http://vi.scribd.com/doc/101289137/Chap002 Mullins, L.J., 2007 Management and Organizational Behaviour.8th ed Pearson education Itd Pelline, J (n.d.) Ballmer named Microsoft president Retrieved July 21, 1998, from http://news.cnet.com/Ballmer-named-Microsoft-president/2100-1001_3-213569.html Pickford, J (ed.) Financial Times Mastering Management 2., Financial Times Prentice Hall (2011), p.297 18 Nguyễn Thị Kiều Anh - Snow - F05014 Prabes (n.d.) Fixing What’s Broken: H.P’s Structural Challenges Retrieved July 27, 2012, from http://projectsuniversity.blogspot.com/2012/07/an-insight-into-hps-structuralproblem.html# Spak, K (n.d.) Microsoft Insiders Conspire to Oust Ballmer Retrieved January 22, 2010, from http://www.newser.com/story/96207/microsoft-insiders-conspire-to-oust-ballmer.html Standard & Poor's (2007, February 07) Hewlett-Packard Co Credit Rating Retrieved April 2, 2008, from http://www2.standardandpoors.com/portal/site/sp/en/us/page.ratingssearch/ratings_search/2,1 ,1,5,0,0,0,0,0,0,0,0,0,0,0,0.html?cspage=or&SearchValue=105865 Terry, M (n.d.) Retrieved April 7, 2011, from http://thebigbangbloggers.blogspot.com/2011/04/meg-whitmans-successful-leadership.html Wharton (n.d.) Steve Ballmer Speaks Passionately about Microsoft, Leadership and Passion Retrieved January 10, 2007, from http://knowledge.wharton.upenn.edu/article.cfm? articleid=1628 White, B (2006, December 13) Best & Worst: Hewlett Packard redefines "poor decision making" Retrieved April 2, 2008, from http://www.bloggingstocks.com/2006/12/13/best-andworst-hewlett-packard-redefines-poor-decision-making/ 19 [...]... Retrieved July 21, 19 98, from http://news.cnet.com/Ballmer-named-Microsoft-president/ 210 0 -10 01_ 3- 213 569.html Pickford, J (ed.) Financial Times Mastering Management 2., Financial Times Prentice Hall (2 011 ), p.297 18 Nguyễn Thị Kiều Anh - Snow - F05 014 Prabes (n.d.) Fixing What’s Broken: H.P’s Structural Challenges Retrieved July 27, 2 012 , from http://projectsuniversity.blogspot.com/2 012 /07/an-insight-into-hps-structuralproblem.html#... America Retrieved September 29, 2 012 , from http://techtriffle.com/microsoft-ceo-steve-ballmer-rated-worst-ceoin-america/ McGraw (n.d.) Individual behaviour, Personality and Values Retrieved from http://vi.scribd.com/doc /10 128 913 7/Chap-002 McShane & VonGlinow (n.d.) Retrieved from http://vi.scribd.com/doc /10 128 913 7/Chap002 Mullins, L.J., 2007 Management and Organizational Behaviour. 8th ed Pearson education... to help people, especially students can understand deeply about “Organization and Behaviour subject through two specific companies Microsoft and Hewlett Packard It show features about organizational structure and culture of each company and explore the link between structure and culture which interact and influence significantly on behaviour of workforce and are the key factors which contribute to the... January 22, 2 010 , from http://www.newser.com/story/96207/microsoft-insiders-conspire-to-oust-ballmer.html Standard & Poor's (2007, February 07) Hewlett-Packard Co Credit Rating Retrieved April 2, 2008, from http://www2.standardandpoors.com/portal/site/sp/en/us/page.ratingssearch/ratings_search/2 ,1 ,1, 5,0,0,0,0,0,0,0,0,0,0,0,0.html?cspage=or&SearchValue =10 5865 Terry, M (n.d.) Retrieved April 7, 2 011 , from... http://thebigbangbloggers.blogspot.com/2 011 /04/meg-whitmans-successful-leadership.html Wharton (n.d.) Steve Ballmer Speaks Passionately about Microsoft, Leadership and Passion Retrieved January 10 , 2007, from http://knowledge.wharton.upenn.edu/article.cfm? articleid =16 28 White, B (2006, December 13 ) Best & Worst: Hewlett Packard redefines "poor decision making" Retrieved April 2, 2008, from http://www.bloggingstocks.com/2006 /12 /13 /best-andworst-hewlett-packard-redefines-poor-decision-making/... technology industry (janvier, 2009) II Understand different approaches to management and leadership 2 .1 Compare the effectiveness of different leadership styles in different organisations a Leadership style of Steve Ballmer and effectiveness 12 Nguyễn Thị Kiều Anh - Snow - F05 014 Steve Ballmer is a transformational leader It is expressed through passion and enthusiasm about what he does He believes... organizational goals There are five factors influence individual behaviour at work: • Personality • Perception • Attitude • Ability and Aptitude • Conflict, Stress and Change We will explain some factors to understand in detail about its effects of individual behaviour at work of Microsoft company 11 Nguyễn Thị Kiều Anh - Snow - F05 014 a Ability At Microsoft, human being is factor decide whether success... which leader uses to manage employee to understand how the company achieve success or failure Furthermore, it also provides information to more understand about managing approaches which companies follow and its effectiveness on business operation of each company In general, with more 16 Nguyễn Thị Kiều Anh - Snow - F05 014 understanding of organization and behaviour will help company to have the correct... REFERENCES BPP Professional Education (2004) Organisations and Behaviour 1st ed., London: BPP Professional Education Aldine House, Aldine Place Chu, D (n.d.) Bí quyết thành công của Microsoft là gì? Retrieved 2 011 , from http://www.slideshare.net/besjsc/b-quyt-thnh-cng-ca-microsoft-l-g Eichenwald, K (n.d.) Retrieved August 2 012 , from http://www.vanityfair.com/business/2 012 /08/microsoft-lost-mojo-steve-ballmer... Whitman and effectiveness Meg Whitman used to be CEO of eBay before becoming CEO of Hewlett Packard so she has much experience in management Her leadership style is supportive and participative Firstly, Whitman builds strong relationships with employees by supporting treats them with care and respect (Terry, 2 011 ) Secondly, she always listens and lets her employee’s voice there say in meetings and important