Organisations can and do change their cultures, and most organisations begin with power cultures. As they mature they become less dependent and develop into role cultures. Soon, this may need greater flexibility, furthering the change towards a task culture to fit the requirements and needs of the organisation. To ensure the cultural change of the organisation is carried out smoothly and successfully, it is important to involve all individuals and to listen to their ideas. In this way they will feel committed rather than resisting the change. Problems may arise when changing corporate culture such as:
- Structural and technical issues, e.g. changing technology may be difficult and costly.
- Cultural change brought about by management is often resisted by employees as there is often a limit to the amount of change to values and norms that they will accept.
- Management may be resistant to change such as changing, disrupting and threatening the stability of their interests.
- The effects of external factors, e.g. it would be difficult for the police force to develop a culture which promotes norms of casual dress due to the opposition of pressure groups.
TASK 2
Discuss and analyse motivational aspects of employment drawing on any experiences you may have. Critically appraise the different motivational techniques and theories you have encountered, supporting your argument, where possible, with examples drawn from your own experience.
Motivation begins with the employee’s needs. If needs are not met, then consciously or unconsciously, goals are created and action is taken to achieve these goals. Each individual has its own personal needs, for example, some may need variety in the workplace, some may need to work with friendly colleagues, and most need to feel appreciated for their work to feel motivated. It is important for a business to motivate its employees. In the short term, a lack of motivation may lead to reduced effort by the worker and lack of commitment. In the long run, such a lack of motivation may result in high levels of absenteeism, work environmental disputes, and consequentially resulting in falling productivity and profit for the business.
People’s needs and the ways in which they are satisfied is a very complex phenomenon. Often behaviour is observed and conclusions are drawn, but sometimes the key motivating factor is not known.
This diagram shows the ‘Virtuous Motivation Circle’ (Wheeler, 2003) emphasising that “success breeds success”:
In 1960 Douglas McGregor identified two distinctive sets of assumptions made by management about employees. He believed that in practise, most management exhibited behaviour somewhere between two extremes which are distinguished as Theory X and Theory Y:
Theory X
- Workers are motivated by money
- Workers are lazy and dislike work
- Workers are selfish; ignore the needs of the organisation; avoid responsibility; and lack ambition.
- Workers need to be controlled and directed by management.
Theory Y
This theory is based on the premise that work is necessary to a person’s psychological growth.
- Workers have many different needs which motivate them
- Workers can enjoy work
- If motivated, workers can organise themselves and take responsibility
- Management should create situations where workers can show creativity and apply their job knowledge.
[Hall, et al. 2000]
Business managers tend to project that their own assumptions are closer to Theory Y than Theory X, but tests have proven otherwise.
From my own experience of working as a Business Associate for a ‘Natwest Lending Centre’ on a small ‘Personal Loans’ team, I have endured many motivational efforts from the higher Directors. I felt that my employers certainly looked down upon us from the “higher steps of the ladder”, as while they themselves thought their attitudes were alike to Theory Y, they were in fact closer to Theory X. As part of a production and productivity-based team, pressure was high and so if a given number of Loans processed in an hour were not completed, then we were disciplined and more work was downgraded.
In 1966 Fredrick Herzberg attempted to establish what most people did at work by carrying out an experiment involving professional engineers and accountants to describe what incidents at work gave them strong feelings of satisfaction or dissatisfaction. Herzberg identified a two-factor theory of motivation. ‘Motivators’ were factors which gave workers job satisfaction, and as a consequence would make workers more productive, such as:
- A sense of achievement
- Recognition for good work
- Interest in the work
- Exercise or responsibility
- Reward that was a recognition of good performance.
‘Hygiene’ factors were associated with bad feelings at work and tended to focus on the context of the job such as:
- Company policy
- Quality of supervision
- Salary levels
- Working relationships with peers and subordinates
- Working conditions.
Herzberg’s theory does seem to have some merits, e.g. improving pay or conditions may remove dissatisfaction at first, but often these things are taken for granted. In addition, job enrichment may be expensive for many firms. Also, there is a problem in relying too much on what people find satisfactory and dissatisfactory, e.g. when things at work go wrong, individuals tend to blame it on others, however, if individuals feel happy and satisfied at work, then they tend to see it as their own doing. Herzberg’s results have been supported by the results of similar investigations elsewhere.
In 1954 Abraham Maslow proposed that humans have needs and that only unsatisfied needs act as motivators. He suggested that ‘classes’ of needs could be placed into a hierarchy of importance. As soon as needs on a lower level are satisfied, those on the next level will emerge and demand satisfaction.
[Needham et al. 2000]
Maslow’s ideas have great appeal for many business’s. If each employer were to find out which level each individual was at, they could decide on suitable rewards. Unfortunately the theory has problems when put in practise. Some levels do not appear to exist for some individuals, while some rewards seem to fit into more than one category.
Maccoby (1988) suggested that motivational theories which are overly concerned with giving promotion and control to an individual employee, may be discredited. He argued that individuals could be given extra responsibility in a variety of different ways such as dealing with more customers, teaching others employees, and solving problems. ‘Empowerment’ is used to describe this view of motivation.
Looking back and adding to my experiences from working for a Natwest Lending Centre, it is worth mentioning that this particular type of establishment is centred very much around such motivation and team-building exercises. As well as others, I felt generally more humiliated than motivated when carrying out such “requirements”. For example, every morning our team had to meet in Head Office for a ridiculous ‘group huddle’ whereby all employees were forced to put their hands in the middle and one by one had to shout out the ‘motivating word-of-the-day’ such as “SUCCESS”, or “100%”! Although it is obvious that there was some good intentions on the team leaders part behind such an exercise, the affects of the everyday challenges we faced did eventually become de-motivating, and these sorts of excercises emphasised our already de-moralised attitudes.
Often, incentive schemes do not motivate and can increase dissatisfaction when they are not working properly, e.g. because they are perceived to be unfair by some groups of workers. A ‘Red Arrows Elite Team’ was introduced at my place of work, whereby the select ‘Elite 6’ with the highest productivity rate would sit above the rest of the Personal Loans team. They were able to spend the time ordering ‘lower’ people to do whichever jobs they needed doing, in order to remain in the elite team. Of course this was supposed to make the ‘lower’ individuals wish to aspire to work towards achieving a position in this team, but naturally it had its drawbacks. The result was a definite low team-morale, with a certain divide between the ‘good’ and the ‘bad’ which is precisely what we were referred to as. Consequentially, the company’s productivity rate decreased, resulting in less money being made for the organisation. This is an example which shows that motivational theories are not 100% successful all of the time. It shows that Incentive Schemes should only be used to reward extra output or loyalty in dynamic ways: they must not be allowed to become ‘institutionalised’ or their affect will be lost.
TASK 3
The importance of communications within the organisation is often neglected or understated. Identify key areas within organisations and between organisations and the outside environment which illustrate this proposition using examples from your own experience or from articles/editorials/business literature or daily newspaper business sections. Examine and appraise the increasing importance of technology in the field of communications. Analyse the effectiveness of different communication systems.
Communication is concerned with sending and receiving information. Business’s need to communicate with a range of individuals and organisations, including their customers, their competitors, and of course their own employees. Good communication is vital for the efficient running of a business, as effective communication will only happen if information is sent, received and then understood. This process involves a Transmitter sending messages to Receivers. A transmitter should put information into a form the receivers can understand, and this might involve oral, written, or visual messages. This process is called ‘encoding’. The transmitter chooses a particular medium to use to send messages to the receiver, e.g. a letter, phone-call, e-mail, fax, etc. The receiver then interprets the messages through a process of decoding.
This schematic diagram is an example to show the process of sending a Marketing Communications message:
Organisations develop structures which establish channels of communication so that every employee knows what the organisation is trying to achieve and is aware of decisions affecting their work.
The ‘Circle Network’ consists of individual sections or departments that
communicate with only two others. For example, this may occur between
middle managers from different departments at the same level of the
organisation. The main disadvantage here is that decision-making can be
slow because there is a lack of co-ordination.
The ‘Chain Network’ allows two-way information, but this information
ultimately stems from or is sent back to the individual who is leader or first
in the chain. This typifies the formal approach often associated with
Government Departments or bureaucracies, such as the Civil Service. The
main advantage here is that a leader exists at the top of the hierarchy who can
oversee communication downwards or upwards to different areas of the
business. However, people at the bottom of the network may feel isolated and
consequentially de-motivated. This does not encourage lateral communication.
The ‘Wheel Network’ places a person, group, or department in a central position.
This network is particularly good at solving problems. For example, if the South
West region of an I.T company had been asked to increase sales by central office,
then the South West regional manager would be central to the policy initiative
communication to discuss with local management the best way forward.
The ‘Connected Network’ is based on an ‘all channel’ communication
system. Each member of the team is in direct and regular contact with
all other team members. This might be used for Brainstorming at a
group workings department meeting or at an I.T network. This network
provides the best solutions to complex problems with its participatory
style and more open communication systems. The disadvantages are that
it is too slow, and that it tends to disintegrate under time pressures to get
results when operated in a group.
After interviewing five members of staff at Bicton College in 2002, it was noted that the lines of communication within the college do not function very effectively. Through talking and analysing the staff’s answers to questions, it was realised that the more “involved” leaders at the top of the hierarchy felt that the College’s lines of communication were good, whereas staff further down the Chain Network stressed how bad communication was. One specific member believed that within her own personal team, morale is high and everyone feels able to communicate amongst themselves well. However, she feels that communication throughout the college as a whole is only one-way, that is that the Directors will give out orders but will not listen to the lower staffs problems/suggestions. This demise of good communication is very common throughout many types of business. A number of factors might have caused the efficiency of the communication process to have declined, such as the skills of the sender and receiver; choice of communication channels or mediums; perceptions and attitudes; breakdown of the channels, etc.
Advertising is a method of communicating with groups in the marketplace and to the outside environment in order to achieve certain objectives. Advertisements are messages sent through the media that are intended to inform or influence the people who receive them. It can be defined as a “paid-for type of marketing communication that is non-personal but aimed at a specific target audience through a mass-media channel.” (Needham, 2000).
There are many other methods of communication such as letters. This is a flexible method which provides a written record, being used for communication with others inside and outside the organisation. Face-to-face communication involves an oral message being passed between people talking to each other. This can include informal and formal meetings which allow new ideas to be generated, encouraging co-operation and ‘on the spot’ feedback. However, problems can arise if the terms of reference are not clear, if people are unwilling to communicate, or if there is insufficient leadership to control the meeting.
Rapid developments in technology have greatly changed the business’s communicate with each other. It is now possible to deliver messages instantly over great distances via a variety of electronic media.
- Mobile phones are portable telephones which can be carried around by the user. They are particularly useful for employees who work outside the office or factory, and who move around.
- Answerphones record messages when the receiver is unable to answer the phone. They allow important messages to be stored and received. Some find answerphones impersonal and so therefore do not leave messages.
- E-mail allows business’s and individuals to communicate immediately with others via word processed text on a computer. This means that long documents can be immediately sent to other people anywhere in the world. However, some also regard that as impersonal.
- Internet is a much cheaper way of sending complex, large scale communications. They also ensure most messages get through to the right person and allow large amounts of data to be quickly and easily delivered.
TASK 4
Critically examine changing work patterns in modern life, comment on the trend towards multi-skilling, the use of core workers, home working, multi-occupations and the demise of the “job for life”.
Up until about thirty years ago, people realistically expected to leave school on the intention that they would be trained and consequentially settle into a certain occupation which would be their “job for life”. A huge market economy change in the 1980’s brought about the move from a socialist-paternalistic country to a market-led economy, with an increasing desire from businesses to make money for their shareholders. At this modern day, people can and do more readily move from job to job instead, this is the demise of the “job for life”.
Occupational mobility is the extent to which labourers and workers are able to move from one occupation to another, according to the qualifications and skills of the individual. Highly qualified and skilled employees tend to be able to change occupations more easily. This in effect is also known as ‘job rotation’, involving employees changing jobs or tasks from time to time. An example of this may be where an individual may move to a different part of a production line to carry out a different task, or a move to a different department where the skills are common to both. Advantages to job rotating for the employee includes the fact that boredom is likely to be reduced, and it enables a variety of skills and experience to be gained.
‘Multi-skilling’ involves training employees in a variety of operations. This invariably allows a business to reduce its workforce, as more tasks are carried out by fewer workers. As well as the reduction in the number of staff needed, it also amounts to the cut in the total wage bills of the company. This can be thought of as the management-consultancy approach to business, whereby middle management are taken out to cut wage expenditure, but in doing so, this takes away the entire career progression up the “business-ladder” of so many workers. It is argued that giving individuals the skills and responsibilities to deal with a greater variety of issues, will allow the business to respond quicker and more effectively to problems. Also, certain motivational theories have suggested that giving an individual more skills and responsibilities can improve their working performance. However, it is argued that individuals are only given more skills so that they are expected to work harder without any extra pay. Problems may also arise if workers are not trained adequately for their new roles.
The characteristics of Core Workers are that they are usually full-time employees; they perform key tasks; they have skills specific to the business; and they mostly have job security. This theory was brought about in 1985 when Atkinson developed the idea of a ‘flexible firm’, suggesting that businesses have a ‘core’ and a ‘periphery’. As a result of increasing competition, firms have attempted to make their workforce as flexible as possible to increase productivity, reduce costs, and react quicker to changes in the economy.
Some types of business employ ‘home-workers’ such as farmers, shop owners, hotel owners, etc. These individuals may be employed by a business to work at home, but they may be self-employed. There are many advantages to employers by employing home-workers, such as due to the fact that the individual is not based at the place of employment, the cost of equipment is reduced and less space is needed. There are also fewer problems with absenteeism and transport delays, and people with children are able to work more easily at times which suit them. However, they may be communication problems associated with this type of employment due to the fact that staff may not be able to be contacted so easily, and it is more difficult to monitor the control and work of the employees.
Globalisation plays a big part in the whole factor of the changing work patterns in modern life, for this is the integration of the world’s economy. It has been suggested that as globalisation takes place, national economies are becoming integrated into a single ‘global economy’ with similar characteristics. There are now interrelationships throughout the world between businesses, and business decisions in one part of the world affect other parts. Businesses now base decisions on what is happening in the ‘world market’ rather than the national markets. (The Coca-Cola company is an example of such a globalised company).
Certain factors contribute to the growth of globalisation such as:
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Technology ~ Technological changes play a hugely important role in the globalisation of the world’s economy. More powerful computers and communications technology have allowed the easy transfer of data, meaning that there is not such a need for practical skilled factory workers for example. The Internet is beginning to revolutionise the way in which consumers purchase products. The value of experience has been devalued due to the ability to build computers which can answer questions at the ‘drop of a hat’.
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Transportation ~ The cost of transportation has fallen, as well as international phonecalls.
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The Deregulation of businesses ~ Throughout the 1980’s and 1990’s, many businesses were privatised in countries throughout the world. The removal of these restrictions have increased the ability of businesses to operate globally.
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The Liberalisation of trade ~ Trade protection has been reduced due to the operation of certain organisations.
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Consumers ~ Consumer’s tasks and their responses have changed, and they are now more willing to buy foreign products.
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Growth of emerging markets and competition ~ New markets have opened in countries that have seen growth in their national income. For example, Eastern European countries have become more successful, therefore they are now able to compete in Western economies.
INTRODUCTION
This assignment examines and analyses the complex interactions, rules and norms within organisations which form its culture. An understanding of motivational factors affecting individual and team performances within businesses is also demonstrated. The importance of good communication is stressed whereby it is explained how this may add to the success of the organisation. Finally, personal views on changing work patterns and the demise of the “job for life” are aired.
BIBLIOGRAPHY
Hall D, Jones R, Raffo C (2001) “Business Studies”. Causeway Press Limited, Lancs.
Needham D, Dransfield R (2000) “Business”. Heinemann Educational Publishers, Oxford.