Organisations and Behaviour
BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College 3
Learning Outcomes and Criteria covered by this Assignment
Summary of learning outcomes To achieve this unit a learner must: 1. Understand the relationship between organisational structure and culture 2. Understand different approaches to management and leadership 3. Understand ways of using motivational theories in organisations 4. Understand mechanisms for developing effective teamwork in organisations.
Outcomes
To achieve each outcome a learner must demonstrate the ability to:
1 Understand the relationship between organisational structure and culture (LO 1)
LO 1.1 compare and contrast different organisational structures and culture LO 1.2 explain how the relationship between an organisation’s structure and culture can impact on the performance of the business LO 1.3 discuss the factors which influence individual behaviour at work
2 Understand different approaches to management and leadership (LO 2)
LO 2.1 compare the effectiveness of different leadership styles in different organisations LO 2.2 explain how organisational theory underpins the practice of management LO 2.3 evaluate the different approaches to management used by different organisations
3 Understand ways of using motivational theories in organisations (LO 3)
LO 3.1 discuss the impact that different leadership styles may have on motivation in organisations in periods of change LO 3.2 compare the application of different motivational theories within the workplace LO 3.3 evaluate the usefulness of a motivation theory for managers
4 Understand mechanisms for developing effective teamwork in organisations. (LO 4)
LO 4.1 explain the nature of groups and group behaviour within organisations LO 4.2 discuss factors that may promote or inhibit the development of effective teamwork in organisations LO 4.3 evaluate the impact of technology on team functioning within a given organisation
BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College 4
Programme: BTEC Higher National Diploma in Business Unit Number: 3 Unit Title: Organisations and Behaviour Module Tutor: Email:
Assignment Number: 1. Case Study
Distribution Date: 16/10/2013 Submission Date: 15/11/2013
Assessment Format: In this assignment you are going to use case studies on City College and Enterprise to explore organisational structure and culture and also examine different approaches to management and leadership and theories of both organisations. There are five questions to be answered and you should aim for a word count of 2500.
TASK 1 Define the word organisation culture and the various types of culture that are available to an organisation stating advantages and disadvantages of each of them. Identify and describe the different types of organisational structures and cultures and compare and contrast including an argument for and against the structures of City College and Enterprise. (LO 1.1)
TASK 2 Explain the relationship between an organisation’s structure and culture and the effects that both culture and structure has on an organisation’s performance. Citing examples from the case study identify and examine in detail, the effects that both culture and structure has on the performance of City College. (LO 1.2).
Assessment Type: Individual
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TASK 3 Define the word behaviour and identify the various factors that might influence the way individuals behave at work. Using different examples from the case studies, discuss what you would identify as the influencing factors in the way City College behave (LO 1.3).
TASK 4 Taking the case studies to support your discussion, compare the effectiveness of different leadership styles in the two different organisations. Explain the various approaches to management and leadership theories and their relationships to the way organisations are managed and their importance. (LO 2.1)
TASK 5 From your understanding of the different approaches to management and leadership theories, explain which of these theories you think that both City and Enterprise have adopted. Evaluate the different approaches used by the City College and Enterprise. You may include examples from other organisations to support your evaluation. (LO 2.2 & 2.3)
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Company A: City College
City College was formed in 2002 as a private college in North West London. It is now part of City group plc. In 2012 city group had an estimated 2.5 million in revenue and employed over 200 staff. In 2010 City group was acquired by new owner ship through a private investor, named Mr Wakefield. City group PLC owns 19% of the private college market. All organisations have mission and group’s mission statement is “To provide inclusive learning opportunities for its students and to succeed in providing comprehensive higher education to the local community”.
? City College want to be the first name people think of when returning back to higher education. ? City College wants to create an organisation where its organisational structure and culture can both help to build a sustainable college.
A mission statement can be used as a starting point to achieve a sustainable business.
City College as expanded recently on its objectives within its mission statement to make the college a much more secure teaching establishment.
City college new mission statement now includes the following corporate objectives:
1. Be reliable 2. Be responsive 3. Understand learners needs 4. Be straightforward
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Elements at City College The table below shows how the company is organised and the various support functions needed: City College operates both in north and south London.
Important functions within City College Operations In general, City Colleges operations are: ? Proving higher education for a diverse community ? Producing English and Maths adult literacy classes ? Gathering ideas to share across the company thus improving efficiency ? Managing student learning through individual learning plans ? Implementing sustainable courses for higher education
City College`s ‘operations’ can be split into three Departments: ? Teaching operation: Staffs are involved with producing higher education courses that are designed to be inclusive to all learners from diverse backgrounds. ? Human Resource Department: This department is concerned with developing and maintaining the college’s workforce. It is its aim to continue to provide personal professional development to its entire staff. City college invested £1.1 in its North London branch in facilities and new staff recruitment. This site now has 1500 students enrolled on higher education courses. Operating improvements and growth do not happen by accident. City Colleges encourages employees to come up with good ideas, so these can be discussed, adapted and implemented throughout the business.
In 2005 City College won the number 1 college for education to work Awards 2005. City College is aware its importance to increasing the opportunities for education in the local community. Working with organisations such as Westminster council, City College are able to provide more educational courses to the local community. Working with the Westminster council, as allowed city college to encourage adults back into education and on the road to a prospective career in business.
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Administration Administrative people: ? Solve administrative issues raised by students and internal departments ? Liaise with the human resource manager and teachers ? Ensure that the registers are kept up to date and students are informed of important messages. ? It is not unusual to find that administration staff to multi-skill and help support other team members within City College. Part of City colleges Culture is to have respect for all staff and support each other through daily operations.
Support functions Human Resources City colleges Human Resources (HR) department focuses on the following areas: Organisational Development including managing change, training and development ? HR Operations including recruitment, selection and employee life cycle ? HR Administration.
It aims to ensure that: City College values are shared across the company and employee satisfaction is increased which in turn can drive and achieve a sustainable college. One area in which HR is involved is recruitment. When a company recruits someone, selection will be done by HR and the employing department working together. Induction and training are the next steps. These are also managed by HR and the employing department. HR ensures that, once recruited, staffs remains. Moreover, as people need to develop and maintain skills, HR is usually responsible for staff development. Tarmac’s HR strategy ensures that its corporate values are shared and maintained across the company. Employees are expected to follow its four key corporate values. City College sees these values as essential for helping them to carry out their work day in, day out; they guide us in our dealings with each other and with our customers; ultimately, they are the bedrock of the culture of the company.’
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Strategy, Marketing and Technical In business terms, strategy is a relatively new concept. Strategy, strategic development and strategic management are key roles in their own right. Additionally, various managers and levels of management are involved in many different ways. The management team undertakes a review with the aim to improve the college functionally and to identify parts of the company not performing as well as others.
Marketing City colleges marketing team is involved in four key activities to help it achieve its mission statement:• gaining insight into markets and student needs • applying this knowledge to inform strategy development and marketing plans, and identify new product ideas and services • managing the City College brand image and external communications through a broad range of communication channels including public relations, advertising, website development, e- marketing, brochures and exhibitions. • leading internal communications through the company magazine, newsletters, intranet and conferences. Through its technical team, City College constantly looks for new and innovative solutions, for example Foam Master. Finance No business can survive without cash or some form of credit, so to ensure it does not run out of money, it needs to manage its finances properly. Any company with sales in the region of £1 million is a big business and therefore relatively complex. The finance function of any large business includes: • bookkeeping • accounting • credit control • finance • taxation • management accounting • auditing.
Conclusion Organisations like City College are no longer mere small private colleges and provide many learning opportunities for many students. They are organisations that have serious objectives tied to a commitment to achieving them. City College is also dedicated to working with the local community. Working in a busy college environment like City College is varied. There are many departments that work together, e.g. an admin assistant working with the Human resource manager, who in turn works with a production controller.
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Company B: Enterprise Introduction For organisations to develop they require a direction. The people who manage the business provide the direction. Taking responsibility for making decisions and running a business well is a skill. Businesses place considerable emphasis on getting the right people with the right skills into key posts. They need to ensure that these people have the opportunities to develop decision-making skills. Enterprise Rent-A-Car (Enterprise) employs more than 75,000 employees and operates a fleet of cars exceeding one million vehicles worldwide. It has become one of the foremost car-hire companies and is the largest purchaser of cars in the world. Jack Taylor founded the company in St Louis in 1957. The owner had a simple belief: ‘Take care of your customers and employees first and profits will follow.’ This belief forms the foundation of Enterprise’s four key business objectives of: • Customer satisfaction • Fleet growth • Employee development • Profitability. These four business objectives link together: • Enterprise does not sell a product. It provides a service – the use of a car. To deliver great service Enterprise needs well-trained and motivated staff. As the company grows, it opens new local offices and creates new opportunities for employees. • Customers expect to be treated in a particular way by a service-orientated business. Enterprise uses its Enterprise Service Quality Index (ESQi) to measure the quality of service it provides. Satisfied customers will come back and give repeat business. They may also recommend the service to others. • This leads to growth of the business and greater profitability. This case study focuses on leadership within Enterprise. It shows how its managers use a range of management and leadership styles to support Enterprise’s focus on customers.
Leadership and management Management involves control and organisation to get something done. In the course of business, managers use many different skills. They:
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• Plan and organise people and resources • Set and monitor budgets • Control operations or services in order to meet customers’ needs. The ability to manage is essential at all levels in the organisation. However, for a business to excel, leadership is vital. A leader is somebody who sets the direction and inspires other people. A leader is able to influence others in meetings or when making decisions. This helps to achieve the goals of the organisation. Enterprise has leaders at all levels of its business, not just senior management. Some people are natural leaders. For example, the captain of a school football team will probably have the ability to influence others. Leaders can also develop through training and education.
Leaders are also managers. For example, an Enterprise General Manager leads a regional group of City Managers. City Managers are leaders of their front-line management employees. Andy Taylor, the current Chairman and Chief Executive Officer (CEO) of Enterprise, was a manager for his father Jack Taylor. He carried out the processes and systems his father set up. Today, Andy leads and manages the business. There are many different management styles. These styles influence how leaders communicate with employees. For example, Enterprise operates an ‘open door’ policy. This enables everybody within the organisation to have direct contact with senior managers. This might be through meetings or having lunch in the same dining area. The CEO Andy Taylor is following the values set by his father by making opportunities for employees to meet and talk to senior managers. This shows an informal style and a lack of hierarchy. Enterprise puts a high value on teamwork and open communication between employees at all levels. Managers have their own preferred management style. Some prefer an autocratic style where they tell employees what to do and how to do it. Others prefer a democratic style where they help their team to discover solutions to problems for themselves. However, the management style must change to fit the circumstances. Some decisions must be made at the highest level. For example, a manager would need to give immediate instructions on a health and safety issue or in a fire. However, if changing an office layout, the manager could leave the team to investigate and decide on the solution for themselves.
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Enterprise employs motivated individuals with the potential to become good leaders. When recruiting, Enterprise looks for leadership qualities in candidates. It considers leadership to be a core competence. It recognises that the skills and capabilities to lead others are essential for business growth. Recruits learn how to run parts of the business. The focus is on making decisions that improve customer service. General Managers are empowered to make decisions covering a region. Branch managers have the authority to deliver good customer service locally. Each local branch operates like a small business. Managers make decisions that support the needs of their customers. Front-line management trainees are encouraged to use the best management style to suit different customers. An autocratic style of leadership is when a leader makes a decision alone. The leader conveys the decision to staff and they have to work within the scope of that decision. For example, in order to deliver good customer service, managers instruct all staff to follow Enterprise’s guidelines for dealing with customers.
Douglas McGregor in 1960 used the terms Theory X and Theory Y to identify two very different forms of management style: • A Theory X manager tells employees what to do and supervises their work. This involves using strict controls within the business. This reflects an autocratic style. • In contrast, a Theory Y manager believes employees want to do well. The manager provides individuals with the opportunity to take control of their work. They can contribute towards solving a problem or issue. This helps motivate them to do better. Enterprise needs its employees to use their skills to deliver high levels of customer service. This means an autocratic management style is inappropriate in daily routines. A branch manager sets the standards for the team but encourages team members to be flexible and responsive to each customer. This ensures that customers get the service they expect. However, there are many examples of autocratic style in use at Enterprise. These relate to issues which affect the whole organisation or which are central to the business. For example: • Andy Taylor insisted all branches use ESQi, the customer satisfaction measure, because it met the business objective. In order to gain commitment to using the process, employees had the prospect of promotion when they achieved high scores. This was a big motivator for staff. • When the Senior Vice President of European Operations at Enterprise decided on the company’s diversity programme, employees were clear that this decision was compulsory and not an option. • The Vice President of Corporate Communications for Enterprise established
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an environmental committee. Its aim was to influence the behaviour of the whole organisation by reducing waste and improving its carbon footprint.
As the industry leader, Enterprise attempts to set high standards when it comes to the impact of rental cars on the environment. In contrast to the autocratic style, Enterprise uses democratic decision-taking in many parts of the business. Everyone has the opportunity to contribute ideas to the decision. There are two types of democratic decision-making: 1. Persuasive democratic management – here the leader makes the decision first and then persuades employees that he or she has made the right decision. 2. Consultative democratic management – this involves the group contributing to the decision making process, with the leader making the final decision.
The team is central to delivering good customer service. The consultative approach helps Enterprise achieve this business objective. Enterprise operates through an extensive network of local offices. Branch managers and their staff need to make decisions to meet the changing needs of customers in a fiercely competitive market. Each office operates with a large degree of autonomy. This means that, in many areas of operation, local offices have the power to govern themselves and make changes without referring to senior management. They use different management styles with customers on different occasions. Examples of incidents they may have to deal with include: • A car has been in an accident and a customer needs a hire car urgently. Local managers take a consultative approach to understand the issues and find the right solution for customers who might be upset or worried. • A customer wants a vehicle for a weekend break. Branch staff will be more authoritative in recommending a specific vehicle to suit their needs. This helps to satisfy this customer and ensure repeat business.
This independent approach enables Enterprise employees to have ownership of many of their activities. This acts as a motivator for staff. In 1943, Abraham Maslow, looking at motivation, identified a hierarchy of needs for individual employees. Everyone has needs for water, food, warmth and safety. These have to be met before a person can move on to fulfilling their higher needs. When employees are empowered to make decisions, this improves their sense of worth and self-esteem. It also helps them to use creative skills within their role and motivates them to
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perform better. Making decisions at a local level helps to meet customers’ needs and enables individuals to take a pride in their job. This recognises that employees are motivated by factors other than financial ones. These include praise, recognition or having more responsibility. Enterprise’s emphasis is on satisfying customers to grow the business. It also rewards hard work. To increase motivation, employees who achieve high levels of customer satisfaction have the opportunity of promotion. In addition, staff who performs well or who make the biggest improvement are recognised through the Enterprise newsletter or by membership of the Enterprise ‘Elite Club’. This reinforces self-esteem.
Conclusion Management is about getting things done. Leadership is about achieving goals by creating a direction for a business and inspiring employees to take initiative and make the right decisions. Enterprise managers need the skills to motivate, lead and influence others. Enterprise aims to employ people who can take on a leadership role and help to grow the business for the longer term. Its management and training programmes help to provide employees with the skills necessary to lead others. This case study illustrates that within a business, there are leaders at different levels within the hierarchy. Depending upon the circumstances, leaders will use different leadership styles. By developing leaders who are able to make decisions at a local level, Enterprise can respond more closely to customer needs within a competitive service industry. Its high levels of customer service provide it with competitive advantage over its rivals.
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Programme: BTEC Higher National Diploma in Business Unit Number: 3 Unit Title: Organisations and Behaviour Module Tutors: Email:
Assignment Number: 2. Case Study
Distribution Date: 16/10/2013 Submission Date: 31/01/2014
Assessment Format: In this assignment you are going to use the case study on Egg Company and the Taylor Woodrow company to examine the relationship between different motivational theories and demonstrate an understanding of working with others, teamwork, groups and group dynamics. There are six questions to be answered and you should aim for a word count of 2500 words. Assessment Type: Individual
Task 1 Identify the difference leadership styles that are available and discuss the impact that different leadership styles may have on motivation at the time of a change at Egg and Taylor Woodrow’s workforce. (LO 3.1)
Task 2 Compare the application of the different motivational theories adopted by the two organisations, Egg and Taylor Woodrow’s workforce. (LO 3.2)
Task 3
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Evaluate how has the management of both Egg and Taylor Woodrow’s workforce applied these motivation theories and practices in the company and what benefits, if any, have the companies derived from their chosen motivation practices (LO 3.3)
Task 4 Explain the nature of groups and group behaviour within Egg and Taylor Woodrow’s workforce (LO 4.1)
Task 5 Identify with examples the various factors that could make a team effective and also those factors that may be likely to threat the success and effectiveness of a team. With reference to the case studies, discuss to what extent you believe that these factors have impacted on the effectiveness of the teamwork of the organisations (LO 4.2)
Task 6 Explain the role of technology in the success of a business that you know. In view of your argument, evaluate the impact of technology on the performance of Egg’s and Taylor Woodrow’s company teams and groups and the company’s overall performance (LO 4.3)
Assessment Type: Individual
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Company A: Egg Egg is the world’s largest pure online bank, established in 1998. It has a reputation for innovation in financial services and was set up in response to consumer demand for a more flexible approach to banking. Today it has more than 3.7 million customers. Egg is best known for its credit card business, but it also offers loans, savings accounts, investments, mortgages and insurance. Egg’s enduring purpose is ‘to revolutionise customers’ experience of financial services driven through unleashing the power of people’. This is like a mission statement, in that it defines the way the company carries out its business. Egg knows its performance will determine its success in winning and keeping the confidence of its customers. It is apparent from Egg’s enduring purpose that it believes in the ‘power of people’. First-rate performances by Egg people offer a first-rate service to its customers. When customers receive a great service, they will tend to buy more. This in turn will lead to greater shareholder value. Egg believes it is advantageous to build a strategy of motivation into its culture. Motivation is seen as essential and has been made part of the fabric of the company, known as ‘Egg DNA’.
In essence, motivation is the art of getting people to do things because they want to, or because they see some benefit. At its most crude, motivation in the workplace is linked to pay. It has subsequently been proved that pay is not the only motivator and in certain circumstances does not act as one at all.
MOTIVATION For Egg, motivation is about creating an environment where its people:
? Are involved in planning, performing and achieving for themselves, customers and Egg.
? Have a great relationship with their manager who knows what they want to achieve in their working life.
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? Feel empowered and ‘unleashed’, so they have the power to create change, reach their potential and deliver excellent customer service.
? Enjoy their work and have opportunities to improve themselves and their role.
? Are recognised and rewarded for the effort they put into making Egg successful.
However, Egg also recognises that all the ‘hygiene factors’ which affect motivation need to be in place and work effectively. For example great emphasis is placed on creating an atmosphere which is conducive to working creatively and powerfully and ensuring that people’s salaries are paid on time. Egg’s approach builds on much of the theory described below. Egg aims to understand its people as much as possible and to get the best out of them. By meeting the needs of the individual – and giving them ownership and the power to make decisions – Egg ensures that the needs of the business are met. At Egg the role of the manager is vital in ensuring its people are motivated. The management cycle is continuous – managers plan and organise work. They then, in conjunction with their people, distribute the work in such a way that, wherever possible, everyone is undertaking work which motivates them and that they enjoy, and therefore delivers a better result for customers and shareholders. Egg makes sure that each manager knows his or her own people well through training called ‘know yourself, know your people’. It recognises that every individual is unique and the way in which they behave is driven by a number of factors. Understanding how these factors can be harnessed to reach both Egg’s and the employee’s target is of utmost importance.
Over the years, many theorists have tried to discover what motivates people. The most well- known are Taylor (1856-1917), Mayo (1880-1949), Maslow (1908-1970), McGregor (1906- 1964) and Herzberg (1923-2000). Of course, motivation is so important that new theories are constantly being developed (Egg, for instance, uses McClelland’s Three Social Motives) but these are all built on the work of the early theorists. The first of these is FW Taylor’s Scientific Management Theory. Taylor was an American who worked with Henry Ford and may be said to be responsible for the first production lines. He believed money was the only
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motivator and that there should be a ‘carrot and stick’ approach. This means that for those who worked hard enough there would be rewards, but for those who didn’t penalties would be imposed. Other theorists realised that this was not always the way to get the best out of people.
Elton Mayo did not accept that money was the only motivator and he carried out the Hawthorne Experiments at a plant in Chicago to try to discover what really drove people. His Relay Assembly Test proved that workers were inspired by directing their own work, working in teams and having a good relationship with management. He concluded that the main reason his subjects’ work rate increased was because they were being studied. Having someone show an interest in you is, in itself, a motivating factor. He also found that people were driven when working in teams. People are also influenced by their own aspirations and by friendship groups and managers can use these to assist in motivation. What Mayo called the psychological contract refers to the unwritten understanding between the employer and the employee – each knows what is expected of them. This can be built on to ensure that the workers and the business are reaching their potential.
AH Maslow was an American psychologist who believed that people worked in order to obtain certain things. He established a ‘hierarchy of needs’, as shown in the figure, stating that people would endeavour to reach each need in order, starting from the bottom. Once they had reached a level, they would then strive to achieve the next one. Douglas McGregor studied how employers and employees could each have a view of work. He called the traditional way of working Theory X. Here, the employer pays the money, supervises the worker and gives instructions; the worker does the job, asks no questions and accepts the pay. This he balanced with what he called Theory Y. This is where most people are satisfied with their employment and take responsibility. McGregor believed that most workers are the Theory Y type and that if people could be treated this way, firms would be more efficient. Frederick Herzberg came to similar conclusions to Mayo. Asking workers what motivated them, he ascertained that the main things were a ‘job well done’, a feeling of being appreciated, trust, responsibility and specific rewards, such as being promoted.
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Certain conditions, which Herzberg called ‘hygiene’ factors, were de-motivators if they were missing or inadequate. Pay and working conditions are two of the main ones, meaning that satisfactory surroundings are not necessarily motivators, but inferior environments are certainly de-motivators. Mayo’s theories and conclusions are particularly important at Egg. He commenced from the idea that the better the relations between management and their teams, the more efficient the business would be. Working agreeably is linked to being contented, and satisfaction comes from the employee knowing s/he is appreciated. This is why Egg places so much emphasis on managers knowing their people well in order that they enjoy their work and are putting in every effort because they want to. Egg believes that to motivate people it is important to balance the needs and wants of the company with those of the individual.
This refers to what the individual wants from their working life. It is discussed in a ‘Know Your People’ conversation between the manager and the employee. This conversation is an important opportunity for the employee to talk about what motivates them, what they enjoy doing and what their future aspirations are. Egg endeavours to ensure these needs can be reached by, wherever possible, matching them into a role which takes account of what they want to achieve and thus ‘unleashing their power’. Each person has different levels of aspiration. For example, an ambitious graduate may have different goals and needs to a part- timer with young children or someone nearing retirement.
This is something each manager knows through the dialogue they have with their people. Taking this approach leads to Egg being a motivated organisation with motivated people. Egg believes that the aims of the company (known at Egg as the ‘Egg Game’) can be delivered through clear responsibilities and targets (known as accountabilities and objectives). When the accountabilities and objectives have been formulated by the manager she/he will have a further conversation with each team member to agree these. They talk about what the employee brings to the job and the knowledge s/he can acquire and use. Egg recognises that everyone has different training and development needs and ambitions which will enable them to be successful in their particular role and at Egg in general. The framework used for this is called Egg DNA and is made up of:
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? The specific, special or technical skills/knowledge a person brings to the role (e.g. an accountant would need specific accountancy knowledge).
? The attitudes a person displays in relation to what is being asked of them (e.g. being passionate about the role and about what Egg is want to achieve).
? The non-technical skills individuals need to do their job (e.g. communicating powerfully).
Egg plans to enhance and improve these qualities and skills through training and coaching the individual to be the best they can in the role they are undertaking. Egg hopes that motivated people who enjoy their work will encourage their family and friends to apply for jobs when they become available. It runs a scheme which rewards people financially for this called ‘Bring a Friend to Egg’.
Conclusion
The success of Egg is connected to the way it treats its people. Its enduring purpose sets out what it wants to provide as an organisation and where its targets lie. This includes having satisfied and well-motivated people who strive to deliver an excellent service for customers thus achieving greater shareholder value. By achieving these aims, both the organisation and its people get what they require. This is what mayo described as a psychological contract.
Company B: Taylor Woodrow Taylor Woodrow plc employs around 6,000 people worldwide. Its primary business is house building. In the UK it builds homes through its Bryant brand and also has housing operations in the USA, Spain, and Gibraltar and in Canada, through its Monarch brand. It offers property development expertise UK wide through its network of regional offices. Its construction business is focused on activities such as Private Finance Initiative, Facilities Management and specialist engineering consultancy. Together, Taylor Woodrow’s combination of skills in house building, property and construction give the company a powerful competitive edge in the area of urban regeneration and Brownfield development.
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The Taylor Woodrow way of working Like people, organisations have distinguishing characteristics. These usually feature in an organisation’s vision and culture. An organisation’s vision statement describes what it sets out to achieve. Such a statement needs to be: Believable’ feasible, and inspiring (to those involved in the company). Taylor Woodrow’s vision is: “To be the leading developer of living and working environments in the UK and other chosen markets’’ An organisation’s culture is the network of relationships and patterns of behaviour within the organisation – what the Americans refer to as “the way we do things around here”. Taylor Woodrow’s culture is based on seeking: “To ensure that its companies and employees continue to improve and develop in a culture of excellence”.
This places Human Resource Development at the centre of the company’s culture. Besides having a strong people focus to the way it operates, Taylor Woodrow also has a strong customer emphasis, and the teams of people working for the organisation continually strive to exceed customer expectations. Taylor Woodrow wants its customers to feel certain that they can rely on it to deliver products and services (e.g. a new house) at the agreed price and to the highest standard. Employees therefore play a key role in enhancing shareholder value to the benefit of the Group and its stakeholders. Most of Taylor Woodrow’s competitors are other large house builders. Its Unique Selling Point (USP) that sets it apart from rivals is the skill base of its workforce and the fact that it can meet just about every engineering need from within the company.
A major problem facing UK housing and construction projects is a shortage of available greenfield sites at a time when demand for property continues to rise. A major strength of Taylor Woodrow is its expertise in developing complex Brownfield sites (on reclaimed land that once might have been an industrial area) using integrated teams of specialists brought together for particular projects. Brownfield site development includes remediation: the removal of toxic waste so that the environment is safe for people to live in. This is a highly complex operation. When working on these complex projects it is essential that the workforce is familiar with corporate objectives in order to enhance company performance and thus gain competitive advantage.
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Taylor Woodrow’s workforce One common misconception is that house builders only employ people like bricklayers and labourers. Taylor Woodrow does employ these skilled tradesmen, some of whom are sub- contracted: brought in from other firms as and when required. However, Taylor Woodrow’s core employees also include:
Quantity Surveyors and Commercial Managers Business Development Managers Project, Estate and Land Managers Architects and Interior Design specialists Civil Engineers
The usual promotion route is for specialists in these areas to become managers. Today, the company is looking at taking on more generalists such as business graduates who can then train to become managers. In addition, Taylor Woodrow employs central services staff including Human Resource specialists and people working in Finance, IT, Sales & Marketing.
Individual performance and corporate objectives Performance management is an HRD process concerned with getting the best performance from: ? Individuals ? Teams ? The organisation as a whole
Effective performance management involves sharing with employees an understanding of what needs to be achieved and then managing and developing people in a way that enables these shared objectives to be attained. Ideally, an organisation will have all of its employees ‘pulling in the same direction’ and ‘singing from the same hymn sheet’. Supporters of this HRD approach argue that this two-way process can be effective only where there is a clear psychological contract between employers and employees based on mutual trust and
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commitment. The Taylor Woodrow group is committed to a Performance and Development Review process for all employees, departments and companies. In an individual Performance Review, a manager and a fellow employee sit down together to: agree on meaningful task objectives for that employee and for the team(s) within which he/she operates identify individual development needs and aspirations
In preparing for such a review, individuals write down their career aspirations and training and development needs, as well as their successes in meeting previous targets and objectives. Managers will read this prior to the Performance and Development Review and also plan ways of communicating to the employee the various objectives of the local management team (and how they support Taylor Woodrow’s wider objectives) that are particularly relevant to that individual. It is then possible at the review meeting to identify the successes of the individual in attaining previously decided objectives, and to identify new targets. With such a system in place, it is possible to establish for a period of time ahead the Key Result Areas against which an individual’s performance will be assessed. In this way, performance is measured against agreed standards. Salaries and bonus payments then reflect the success of each individual’s performance based on a rating system.
Taylor Woodrow believes that the effective management of individual performance rests on managing the performance cycle, which is an ongoing process of performance planning, support and review. The planning stage involves agreeing the objectives. The supporting stage involves identifying development needs and how these can be addressed, and then the manager giving ongoing coaching, feedback, and support. Reviewing performance involves both informal employee/manager discussions and a formal Performance Review tied to the reward process. Each employee receives two formal Performance and Development Reviews each year. A January review establishes objectives for the coming calendar year. An interim July review then examines any further development needs of the individual and the teams within which he/she works. It is essential for managers to feel that they ‘own’ this process and fatal if they see it only as a chore. Properly carried out, the system can operate at every level within a company.
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The Performance Review process encourages even the humblest employees undertaking the most routine of tasks to support the company by accepting greater responsibility for their own actions. For example, a mailroom worker used his own initiative to ensure that outgoing mail posted on a Friday was sent 2nd Class. His reasoning was that no receiving firm would read it until Monday, so why waste the company’s money on next-day delivery? This constructive move continues to save Taylor Woodrow considerable sums annually.
Motivation, performance and pay In the UK, there is a movement towards relating pay and promotion to measured performance. The PRP (Performance Related Pay) approach is based on a philosophy of agreeing: the key results areas of the job clear standards of performance and target levels of competence regular, objective reviews of performance and competence. In 2000 a Taylor Woodrow survey of its employees showed that 94% favoured a Performance Review and Pay Review Cycle. This is typical of many companies, where employees prefer objective standards for measuring their performance rather than relay on the subjective views of their line manager. Individual rewards for employees are therefore based upon: the Group’s and the individual company’s overall business performance and ability to pay each individual’s contribution to the company’s success the level of salaries and benefits necessary to attract and retain people, taking into account competitive salary arrangements elsewhere
The Performance Review examines: The level of skills, competencies and knowledge an employee demonstrates in his/her particular role the degree to which set objectives have been achieved. These are documented and evidence is provided. Employee rewards are then tied to this Performance Review, which is rated using a scale of 1 to 5, with 5 being the highest. Bonuses and salaries are then related to this rating, after consideration of company financial performance. Where employees have skills that are in short supply, the review also considers wages being paid elsewhere for similar work. Salary increases based on the past calendar year’s performance are effective from April 1st. Bonus payments in respect of the previous year are paid at the end of March. A major aim of the company’s Performance and Development programme is to create commitment and motivation at all levels of the organisation; by the organisation itself, managers, and all employees.
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Assessment Criteria:
P1-P12 Pass Criteria M1-M3 Merit Criteria D1-D2 Distinction Criteria
To Achieve a Pass
To gain a pass grade you must attempt all three assignments and you must satisfy the pass criteria as outlined below.
LO 1.1 compares and contrast different organisational structures and culture (P1) LO 1.2 explain how the relationship between an organisation’s structure and culture can impact on the performance of the business (P2) LO 1.3 discuss the factors which influence individual behaviour at work (P3) LO 2.1 compare the effectiveness of different leadership styles in different organisations (P4) LO 2.2 explain how organisational theory underpins the practice of management (P5) LO 2.3 evaluate the different approaches to management used by different organisations (P6) LO 3.1 discuss the impact that different leadership styles may have on motivation in organisations in periods of change (P7) LO 3.2 compare the application of different motivational theories within the workplace (P8) LO 3.3 evaluate the usefulness of a motivation theory for managers (P9) LO 4.1 explain the nature of groups and group behaviour within organisations (P10) LO 4.2 discuss factors that may promote or inhibit the development of effective teamwork in organisations (P11) LO 4.3 evaluate the impact of technology on team functioning within a given organisation (P12)
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Unit 3: Organisations and Behaviour Regent College 27
To Achieve a Merit
To gain a merit grade you must achieve all the pass mark criteria and in addition you must satisfy the criteria as outlined below.
Identify and apply strategies to find appropriate solutions through effective judgement (M1)
Select/design and apply appropriate methods/techniques. You are judged on the application of relevant theories and techniques and the justification for their application (M2)
Present and communicate appropriate findings. This includes the use the appropriate structure and approach with coherent, logical development of principles/concepts for the intended audience (M3)
To Achieve a Distinction
To gain a Distinction grade you must achieve all the pass mark criteria and all the merit mark criteria and in addition you must satisfy the criteria as outlined below.
Use critical reflection to evaluate own work and justify valid conclusions including realistic improvements which have been proposed against defined characteristics for success. (D1)
Demonstrate convergent / lateral/creative thinking by showing evidence on receptiveness to new ideas and effective thinking in unfamiliar contexts. (D2)
Take responsibility for managing and organising activities including accommodating the unforeseen and recognising the importance of interdependence. (D3)
Your subject tutor will be able to give you general guidance and feedback on improving your work however it is your responsibility to seek feedback from the subject tutors on the above criteria for you to achieve the intended grades.
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Unit 3: Organisations and Behaviour Regent College 28
Support materials
Textbooks
Brooks I — Organisational Behaviour, Individuals, Groups and Organisation 2nd Edition (Prentice Hall, 2003) ISBN: 0877781265
Huczynski A and Buchanan D — Organisational Behaviour: An Introductory Text (Prentice Hall, 2000) ISBN: 0273651021
Maccoby M — Why Work: Motivating and Leading the New Generation (Simon and Schuster, New York, 1998) ISBN: 067147281X (Outlines the changing nature of the workplace and categorises people into five types, giving the characteristics and sources of motivation and demotivation of each.)
Mullins L — Management and Organisational Behaviour 5th Edition (Pitman Publishing, London, 1999) ISBN: 0273651471
Robbins S — Essentials of Organisational Behaviour 4th Edition (Prentice Hall International, 2003) ISBN: 0582820758
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Unit 3: Organisations and Behaviour Regent College 29
Plagiarism and Collusion
When producing the assignments, Learners must not copy any material whole or part from fellow students intentionally or unintentionally. Any materials including phrases, paragraphs, diagrams, tables, charts or graphics copied from books, journals, web sites or any other sources must be properly referenced according to the Harvard referencing system. Even if the words are changed or altered learners must clearly reference the source. Learners are required to produce a ‘Turn-it-in’ originality report for any coursework, essays submitted for assessment. Any assignments submitted without a ‘Turn-it-in’ report will be refused and returned without marking.
Collusion: Unless stated otherwise, you must not produce assignments in collaboration with fellow students where the assessment is based on the individual work. Such material will be refused by the assessor and you will receive no mark. You must not share your individual assignments with fellow students and in an event both lender and the receiver will be disqualified for the assessment.
Plagiarism and Collusion is seriously dealt with in accordance with the regulations at Regent College and any learner who fails to produce an original piece of work may be disqualified of taking the assessment and may have to repeat the unit.
Please visit the link http://www.regentcollegelondon.com/Policies.asp to read our Academic Misconduct Policy for further information on above. You can also access this policy by accessing VLE.
Extension and Late Submission
Please visit the link http://www.regentcollegelondon.com/Policies.asp to read our Assessment Policy in order to acquire information concerning the above matter. You can also access this policy by accessing VLE.
Attendance and Punctuality
Attending all your sessions is vital for your studies. We expect students to attend 100% of your classes. Please visit the link http://www.regentcollegelondon.com/Policies.asp to read our Attendance Policy for further information on above. You can also access this policy by logging on to VLE.
General Guidance
This unit is assessed on 100% coursework including your active participation in lessons. You must submit both assignments to receive an overall mark.
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Unit 3: Organisations and Behaviour Regent College 30
You should plan well in advance on how to tackle this assignment. You should seek knowledge outside the classroom lectures and activities to gain maximum learning outcome. You should access recommended supporting materials as suggested and use the knowledge in your assignments.
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Programme: BTEC Higher National Diploma in Business Unit Number and Title: Unit 3, Organisations and Behaviour Module Tutor: Nalika Danthasinghe Learner name:
Information/feedback on assessment and grading criteria
Assessment criteria (Pass-P)
Achieved
Evidence
Feedback
LO 1.1 compares and contrast different organisational structures and culture (P1)
Yes/No
LO 1.2 explain how the relationship between an organisation’s structure and culture can impact on the performance of the business (P2)
Yes/No
LO 1.3 discuss the factors which influence individual behaviour at work (P3)
Yes/No
LO 2.1 compare the effectiveness of different leadership styles in different organisations (P4)
Yes/No
LO 2.2 explain how organisational theory underpins the practice of management (P5)
Yes/No
LO 2.3 evaluate the different approaches to management used by different organisations (P6)
Yes/No
Feedback Sheet
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Unit 3: Organisations and Behaviour Regent College 32
LO 3.1 discuss the impact that different leadership styles may have on motivation in organisations in periods of change (P7)
Yes/No
LO 3.2 compare the application of different motivational theories within the workplace (P8)
Yes/No
LO 3.3 evaluate the usefulness of a motivation theory for managers (P9)
Yes/No
LO 4.1 explain the nature of groups and group behaviour within organisations (P10)
Yes/No
LO 4.2 discuss factors that may promote or inhibit the development of effective teamwork in organisations (P11)
Yes/No
LO 4.3 evaluate the impact of technology on team functioning within a given organisation (P12)
Yes/No
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Unit 3: Organisations and Behaviour Regent College 33
Grading criteria (Merit-M; Destination-D)
Achieved
Evidence
Feedback
Identify and apply strategies to find appropriate solutions through effective judgement (M1)
Yes/No
Select/design and apply appropriate methods/techniques. You are judged on the application of relevant theories and techniques and the justification for their application (M2)
Yes/No
Present and communicate appropriate findings. This includes the use the appropriate structure and approach with coherent, logical development of principles/concepts for the intended audience (M3)
Use critical reflection to evaluate own work and justify valid conclusions including realistic improvements which have been proposed against defined characteristics for success. (D1)
Yes/No
Demonstrate convergent / lateral/creative thinking by showing evidence on receptiveness to new ideas and effective thinking in unfamiliar contexts. (D2)
Yes/No
Take responsibility for managing and organising activities including accommodating the unforeseen and recognising the importance of interdependence. (D3)
Yes/No
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Unit 3: Organisations and Behaviour Regent College 34
Assessor’s general comments:
Assessor’s Signature: …………………………………………………………………………………………………….
Print Name: ………………………………………………………………………………………………………………….
Date: ……………………………..
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