Mana

Analyse the relationship between management structure and culture and its effect on business
performance

There is a ton of information out there on organizational culture and about every detail of it
you can imagine. The relationship between organizational culture and organizational
structure is an important theme that is often overlooked. The two can be difficult to clearly
distinguish from one another and even more so to clearly define within an institution.
Organizational structure works within an organizational culture, but it is not completely
separate. The two are very much intertwined.

Organizational culture is more of a larger picture, a more general term that refers to a large
umbrella of smaller topics and issues within an organization. The structure refers to the
infrastructure, and the various methods and practices within that infrastructure, that helps an
organizational culture run with the efficiency and consistency that should be the hallmark of
any healthy organizational structure, whether it is in a corporation, sports team, or any other
set up that is large enough to create its own organizational culture.

This makes the structure an integral part of any organizational culture, but also narrows out a
very specific segment of the culture as its own responsibility. Organizational structure will
deal primarily with the set up of the culture. How management works, which specific
responsibilities supervisors have, how a complaint is passed through the ranks-these are all
issues within the organizational culture that are directly tied to how an organizational
structure works. The structure is not limited to those three examples, but it would certainly
include all of them.

Another common way to describe how structure works is to say that organizational structure
is the way in which the interrelated groups within and organization are set up to allow them
to function smoothly from a larger standpoint. The two main purposes of a successful
organizational structure is to ensure effective communication between various parts of the
company, as well as to increase coordination between different departments.

Some theorists have even broken down the concept of organizational structure into several
categories to describe the phases which businesses go through as they grow in size and scope.
The first is the pre-bureaucratic structure, which is mainly known for lacking a structure that
standardizes tasks. This set up is great for small businesses, and ones that don't have many
repeat scenarios, and therefore have to be adaptive.

The next level is bureaucratic, which is where there is larger organization which requires a
degree of standardization in paperwork, processes, etc. While bureaucracy has a negative
connotation, it can be a good thing in small doses, especially in tackling issues that will
become recurring themes in larger businesses. There is also the post bureaucratic, which has a
more nebulous definition and is seen as more of a theoretical term, but might be referred to
more recent, cultural based models of leading.

As you can see, the relationship between organizational culture and organizational structure
can be hard to tell apart, but in a fully healthy culture that is exactly what should be expected
when all is functioning normally.
Characteristics of Healthy Organizational Cultures
Organizations should strive for what is considered a “healthy” organizational culture in order
to increase productivity, growth, efficiency and reduce employee turnover and other
counterproductive behavior. A variety of characteristics describe a healthy culture, including:

 Acceptance and appreciation for diversity

 Regard for and fair treatment of each employee as well as respect for each employee’s
contribution to the company
 Employee pride and enthusiasm for the organization and the work performed
 Equal opportunity for each employee to realize their full potential within the company
 Strong communication with all employees regarding policies and company issues
 Strong company leaders with a strong sense of direction and purpose
 Ability to compete in industry innovation and customer service, as well as price
 Lower than average turnover rates (perpetuated by a healthy culture)
 Investment in learning, training, and employee knowledge

Additionally, performance oriented cultures have been shown to possess statistically better
financial growth. Such cultures possess high employee involvement, strong internal
communications and an acceptance and encouragement of a healthy level of risk-taking in
order to achieve innovation. Additionally, organizational cultures that explicitly emphasize
factors related to the demands placed on them by industry technology and growth will be
better performers in their industries.

According to Kotter and Heskett (1992), organizations with adaptive cultures perform much
better than organizations with unadaptive cultures. An adaptive culture translates into
organizational success; it is characterized by managers paying close attention to all of their
constituencies, especially customers, initiating change when needed, and taking risks. An
unadaptive culture can significantly reduce a firm's effectiveness, disabling the firm from
pursuing all its competitive/operational options.
Typologies of organizational cultures
Several methods have been used to classify organizational culture. While there is no single
“type” of organizational culture and organizational cultures vary widely from one
organization to the next, commonalities do exist and some researchers have developed
models to describe different organizational cultures. Some are described below:

Hofstede (1980[2]) demonstrated that there are national and regional cultural groupings that
affect the behavior of organizations.

Hofstede looked for national differences between over 100,000 of IBM's employees in
different parts of the world, in an attempt to find aspects of culture that might influence
business behavior.

Hofstede identified four dimensions of culture in his study of national influences:

 Power distance - The degree to which a society expects there to be differences in the
levels of power. A high score suggests that there is an expectation that some
individuals wield larger amounts of power than others. A low score reflects the view
that all people should have equal rights.
 Uncertainty avoidance reflects the extent to which a society accepts uncertainty and
risk.
 Individualism vs. collectivism - individualism is contrasted with collectivism, and
refers to the extent to which people are expected to stand up for themselves, or
alternatively act predominantly as a member of the group or organization. However,
recent researches have shown that high individualism may not necessarily mean low
collectivism, and vice versa[citation needed]. Research indicates that the two concepts are
actually unrelated. Some people and cultures might have both high individualism and
high collectivism, for example. Someone who highly values duty to his or her group
does not necessarily give a low priority to personal freedom and self-sufficiency
 Masculinity vs. femininity - refers to the value placed on traditionally male or female
values. Male values for example include competitiveness, assertiveness, ambition, and
the accumulation of wealth and material possessions[citation needed].

Two common models and their associated measurement tools have been developed by
O’Reilly et al and Denison.

O’Rielly, Chatman & Caldwell (1991) developed a model based on the belief that cultures
can be distinguished by values that are reinforced within organizations. Their Organizational
Profile Model (OCP) is a self reporting tool which makes distinctions according seven
categories - Innovation, Stability, Respect for People, Outcome Orientation, Attention to
Detail, Team Orientation, and Aggressiveness. The model is not intended to measure how
organizational culture effects organizational performance, rather it measures associations
between the personalities of individuals in the organization and the organization’s culture.

Daniel Denison’s model (1990) asserts that organizational culture can be described by four
general dimensions – Mission, Adaptability, Involvement and Consistency. Each of these
general dimensions is further described by the following three sub-dimensions:

 Mission -Strategic Direction and Intent, Goals and Objectives and Vision
 Adaptability -Creating Change, Customer Focus and Organizational Learning
 Involvement - Empowerment, Team Orientation and Capability Development
 Consistency -Core Values, Agreement, Coordination/Integration

Denison’s model also allows cultures to be described broadly as externally- or internally-

focused as well as flexible versus stable. The model has been typically used to diagnose
cultural problems in organizations.

Formulate the factors which influence individual performances in the workplace

This is a review of the relation between the five-factor model of personality and performance in the
workplace. Research in this field has yielded correlations between the five-factor model and aspects
of job performance such as motivation, deviation, job satisfaction, and teamwork.

Motivation in the Workplace

Studies of sales representatives have defined two aspects of motivation--status striving and
accomplishment striving--and they are correlated with extraversion and conscientiousness,
respectively. These two subsets of motivation lead to sales performance, although the data imply
that status striving leads to performance and accomplishment striving leads to performance only
indirectly via a relation between accomplishment striving and status striving (Barrick, Stewart, &
Piotrowski, 2002). This study is questionable in that it studied sales representatives, who are likely
required to be extraverted in order to succeed at their job. To say that extraverted sales
representatives perform better is a bit redundant; shy sales people do not go far. Because
extraversion is such an integral aspect of being a salesperson, this study does not lend much support
for a general model or theory correlating the five-factor model with job performance.

Job Satisfaction
The five-factor model is correlated with overall level of job satisfaction experienced by employees. In
general, satisfied employees are more likely to remain in a position and to avoid absences than are
dissatisfied employees.

Initial research indicated that neuroticism is negatively correlated with job satisfaction,
whereas conscientiousness, extraversion, and agreeableness are positively correlated with job
satisfaction. Openness to experience has a negligible impact on job satisfaction. Additional
research, however, has only been able to replicate correlations among the factors of
neuroticism and extraversion, with extraversion being positively correlated with job
satisfaction and neuroticism being negatively correlated. This could be due to the social
nature of the workplace (Judge, Heller, & Mount, 2002).

This finding may be due to the low level of arousability for extraverted individuals (Hebb's
theory). If the workplace is a social environment, then extraverted employees are more likely
to be at a low level of arousal while at work, whereas at their home there is less stimulation.
Introverts, on the other hand, are more likely at their optimal level of arousal outside of the
workplace, where there is less stimulation, and therefore are more likely dissatisfied with the
level of stimulation that they experience while at work.

Deviation in the Workplace

Workplace deviance occurs when an employee voluntarily pursues a course of action that threatens
the well-being of the individual or the organization. Examples include stealing, hostile behavior
towards coworkers, and withholding effort. Stealing and withholding effort are categorized as
organizational deviance, whereas hostile and rude behavior toward coworkers are categorized as
interpersonal deviance.

Workplace deviance is related to the five-factor model of personality. Interpersonal deviance

is negatively correlated with high levels of agreeableness. Organizational deviance is
negatively correlated with high levels of conscientiousness and positively correlated with
high levels of neuroticism. This implies that individuals who are emotionally stable and
conscientious are less likely to withhold effort or steal, whereas those who are agreeable are
less likely to be hostile to their coworkers.

Another entirely different factor to consider is perception of the workplace. Employees who
had a positive perception of their workplace were less likely to pursue deviant behavior.
Research indicates that personality acts as a moderating factor: workplace deviance was more
likely to be endorsed with respect to an individual when both the perception of the workplace
was negative and emotional stability, conscientiousness, or agreeableness was low (Colbert,
Mount, Harter, Witt, & Barrick, 2004).

Performance in the Workplace

Of the five factors, the single factor of conscientiousness is the most predictive of job performance
(Hurtz & Donovan, 2000).

Absences
Job absence is very much a part of job performance: employees are not performing effectively if
they do not even come to work. Introverted, conscientious employees are much less likely to be
absent from work, as opposed to extraverted employees who are low on conscientiousness.
Interestingly enough, neuroticism is not highly correlated with absence (Judge, Martocchio, &
Thoresen, 1997). The Judge et al. (1997) study is interesting considering the Judge et al. (2002)
research on job satisfaction and the five-factor model. The results of the latter research suggests
that extraverted individuals are more satisfied in the workplace, because work gives them an
opportunity to experience an optimal level of arousal, whereas introverted individuals are less
satisfied in the workplace due to too much stimulation. Combining the results of these two studies
suggests that conscientiousness is the deciding factor regarding job absence.

Perhaps another factor in absenteeism is that, although introverts may be less satisfied in the
workplace, they go to work anyway. This behavior might imply either that introverts are
more conscientious or simply that introverts have no compelling reason not to go to work
(whereas extraverts may have friends who urge them to skip work and go see a movie). This
conclusion is debateable, however, because introverts might be tempted to skip work to avoid
the extra stimulation and might perhaps stay home and read a book (a book on psychology,
no doubt). Judge and his colleagues will likely continue their research and perhaps provide
answers in the future.

Teamwork
Oftentimes in the workplace the ability to be a team player is valued and is critical to job
performance. Recent research has suggested that conscientiousness, extraversion, and
agreeableness are all related to cooperative behavior but that they are not related to task
performance. Although this fortifies the case that job performance is related to the five-factor model
via increased cooperativeness among coworkers, it lays siege to the role of personality by implying
that actual job performance (task performance) is related to cognitive ability and not to personality
(LePine & Dyne, 2001).

Leadership abilities are often essential in the workplace, especially for individuals who aspire
to move up into the ranks of management. Studies of Asian military units have found that
neuroticism is negatively correlated with leadership abilities. Contrary to what the researchers
hypothesized, agreeableness is negatively correlated with leadership abilities as well.
Openness to experience is unrelated to leadership abilities, but extraversion is positively
correlated with leadership abilities (Lim & Ployhart, 2004). This evidence is consistent with
the long-standing idea that in teams there are leaders and there are followers; the leaders
make decisions and the followers abide by them. Although agreeableness is positively
correlated with working with a team, it is negatively correlated with being a leader. Those
followers who do not always agree and are willing to voice their own opinions end up
moving up the ranks, whereas those who blindly agree are left as followers.

Personnel Selection

Research into the relation between the five-factors model and personnel hiring provides additional
evidence that conscientiousness is the most valid predictor of job performance (Schmidt & Ryan,
1993). Given that conscientious individuals have a tendency to perform better as employees, it is
easy to believe that employers will seek out that factor or the traits that coincide with it.
3 Understand the relationship between two motivational theories
• 3.1 Write about different motivational theories and their application and performance within the
workplace

Introduction
Many business managers today are not aware of the effects that motivation can (and does)
have on their business, and it is therefore important they learn and understand the factors that
determine positive motivation in the workplace. The size of your business is irrelevant:
whether you are trying to get the best out of fifty of your staff or just one, everyone needs
some form of motivation. Motivation is something that is approached differently by different
businesses and the responsibility of its integration lies with all immediate supervisors of staff.
However, it is the business owner who must initiate motivation as a strategy to attain
corporate goals.

The aim of this article is to help you (as a manager) to understand the importance and effects
of motivation by identifying key factors that determine the rate of motivation in your
employees. These factors are linked directly to their individual needs, behaviour and attitudes
as you will find out from the following content.

What is Motivation?
Motivation is the force that makes us do things: this is a result of our individual needs being
satisfied (or met) so that we have inspiration to complete the task. These needs vary from
person to person as everybody has their individual needs to motivate themselves. Depending
on how motivated we are, it may further determine the effort we put into our work and
therefore increase the standard of the output.

When we suggest factors (or needs) that determine the motivation of employees in the
workplace, almost everyone would immediately think of a high salary. This answer is correct
for the reason that some employees will be motivated by money, but mostly wrong for the
reason that it does not satisfy others (to a lasting degree). This supports the statement that
human motivation is a personal characteristic, and not a one fits all option.

The Importance of Motivation

Motivation can have an effect on the output of your business and concerns both quantity and
quality. See it this way: your business relies heavily on the efficiency of your production staff
to make sure that products are manufactured in numbers that meet demand for the week. If
these employees lack the motivation to produce completed products to meet the demand, then
you face a problem leading to disastrous consequences. The number of scenarios is extreme
but you get the general picture.

Your employees are your greatest asset and no matter how efficient your technology and
equipment may be, it is no match for the effectiveness and efficiency of your staff.
Motivational Theory: Herzberg’s Two Factor Theory
Motivation has been studied for many years stretching beyond the 19th century. As a result, a
number of theorists have compiled their own conclusions and consequently a wide variety of
motivational theory has been produced. Without going into the fine details and depth of all
the motivational theory, we will use Fredrick Herzberg’s (1966) research to outline the main
issues concerning motivation.

In 1966, Herzberg interviewed a number of people in different professions at different levels

to find out two things:

 Those factors that motivated them in the workplace

These were identified as factors that gave employees an incentive to work resulting in job
satisfaction. They are also referred to as ‘motivators’. These motivators increased the job
satisfaction of the employee and further increased their efficiency.

 Those factors that prevented job dissatisfaction

These were identified as factors that prevented job dissatisfaction. These did not make the
employees happy (or have job satisfaction): it just removed the unhappiness out of working.
They are also referred to as ‘hygiene’ factors. Such hygiene factors, if not satisfied, had an
effect of reduced employee efficiency.

Herzberg believed that all factors fell into one of these categories and therefore had separate
consequences. His research concluded that some factors fell into both categories although
they held a stronger position in one of them. See the diagram below for examples of the
factors that he determined for each category.

By looking at the diagram, it shows that a sense for achievement, recognition of their effort,
the nature of the work itself, and the desire for responsibility are all strong factors for
motivation. At the bottom of the diagram, the way the business is run, how they are
supervised, the work conditions and their pay, are all factors that can lead to job
dissatisfaction if not met to the standards of the employee.

The size (or width) of the bars that represent each factor compensate for the level at which it
is a concern. For example, from the diagram, the way the business is run is a higher
dissatisfaction cause (if it is run badly) then the concern of bad working conditions. You may
look at ‘pay’ and think that this bar should be a lot wider on the job dissatisfaction side, but
most people would not take the job in the first place if they considered the pay as ‘totally
unacceptable’.

Take another example: the employee does not see the lack of personal responsibility as a
major job dissatisfaction, but when people do seek responsibility, it is a huge motivational
factor for them: hence the long extension of the bar more on the motivation side of the
diagram.

You will further notice that those factors encouraging motivation (job satisfaction) have little
connection with money and are more associated with personal development and achievement.
Hygiene factors concern more the employees personal attitudes towards the context of their
job and involve money in most cases to provide a solution to the issue.

You may also have noticed that two bars on the diagram (achievement and pay) are shaped
differently. This is to illustrate that, for Achievement, it is something that is only acquired for
a short term and is therefore an ongoing need that is searched for over and over again. In
other words: one week you may achieve, say, a good personal sales figure, and the following
week your standard drops to a disappointing level in which you seek to achieve this figure yet
again. The Pay factor (salary) also has a similar concern: you may increase an employee’s
salary that removes job dissatisfaction at first, but in time (can be as low as days) the
employee will increase their personal spending to what they are earning and will eventually,
again, become dissatisfied. In such a case, it may be for your benefit that you offer an
additional incentive to keep the employee further satisfied to prevent this on-going cycle
from occurring.
4.1 Understand teamwork and group dynamics.
• 4.1 Propose factors that may curtail the success of teamwork

4.1
The Six Core Factors
 
There are six critical success factors that must be in place before any group begins to function
as a leadershp team.
1. Supportive Sponsor
Leadership teams are usually formed by a sponsor who recognizes that reaching an
organizational goal will require a group of individuals working together to provide the
leadership necessary to move a company, division or unit towards the organization's goals. It
is the sponsor’s responsibility to create a ‘charter’ that establishes the leadership team and
it’s primary focus. In addition, the sponsor establishes specific goals the leadership team is
to accomplish. The sponsor will also select the team leader and gain his or her commitment to
lead the leadership team in defining and carrying out the needed actions.  <Click here> to learn
about our Dynamic Teamwork Readiness Review Program that leadership team sponsors use
to help prepare leaders of the teams they have formed focus on these critical success factors.
2. Focus on Stakeholder Outcomes
A shared understanding of the leadership team’s stakeholders, their expectations of the team,
and the values the team embraces is essential to create the focus needed as the leadership
team members plan and execute the actions necessary to achieve the team’s goals.
3. Smart Goals
Specific, measurable, achievable, realistic and time-bound goals should be established by the
team’s sponsor and then broken into sub-goals by the leadership team. Without SMART
goals, the team will lack the milestones necessary to drive action.
4. Committed Leadership
Every leadership team needs a leader who focuses the members of the team on the mission,
purpose, and goals of the team.  This individual must be committed to the team’s results and
must be willing to be held accountable by the team’s sponsor and other stakeholders, for
leading the team through processes that insure the team’s goals are reached. The team leader
must engage each team member in the processes of the team and build a platform of mutual
trust that leads to open debate, collaboration, individual commitment, and personal
accountability.
5. Mutual Trust
The most important element of successful team work is the establishment of a platform of
mutual trust that enables the leadership team to engage in open debate and decision making
that leads to commitments to action by individual members of the team.  Building this trust
requires an openness that allows team members to know and understand the beliefs
and behaviors of all members of the team so that team actions can be structured to take
advantage of each member's uniqueness and talents.  Behavioral and values assessments are
powerful tools <Click here to learn more> in developing an understanding how each member
of the leadership team views themselves and responds to others in the team.
6. Engaged Leadership Team Members
An effective leadership team will have team members who are actively engaged in the work
and focus of the team. This will require that each team member emotionally commits to
actively and openly participate in the team’s processes in the pursuit of the team’s goals. The
team member must willingly commit to carry out action plans to complete individual actions
necessary for the team to reach their team goals. The team member must be dependable and
carry the full weight of personal responsibility to complete their individual commitments by
the date committed to. Engaged team members enthusiastically support each other and add
value to other team members. They prepare for team processes and choose to engage others
in a positive manner to find solutions to issues and challenges they individually or as a team
face. They constantly seek to improve themselves for the benefit of the team and never, never,
never quit.

The Four Factors of Execution

 
The following four critical success factors will insure the leadership team carries out the
actions necessary to reach their designated goals.
7. Collaborates To Set Direction And Solve Problems
The power of teamwork dynamics is engaged when the leadership team members come
together to focus collectively on goals, issues, challenges, and problems.  Team leaders must
carefully manage the processes of team meetings in order to maximize the power of the
collective knowledge and skills of the team members.  Our research indicates the most
effective leadership teams include at least three but no more than six  individuals who follow a
meeting methodology that is focused on dealing with issues requiring the leadership team's
attention and maximizes the power of the collective knowledge and skills of the team
members.  Patrick Lencioni's book "Death by Meeting" <Click here to learn more> provides
excellent guidance in planning and conducting team meetings.
8. Obtains Individual Commitments

The work of a leadership team is carried out by individual members of the team.  When a team
has developed a plan of actions that are necessary to achieve their goals or overcome
barriers, individual members must commit to carrying out specific actions which in many
cases will include actions by the individual teams they in turn lead.  The leadership team's
collaborative processes must include steps to:

 Define individual actions,

 Gain the commitments by individual team members to complete the actions,
 Document due dates, and
 Establish status reporting processes. 

9. Establishes Discipline Of Personal Accountability

Team goals will usually not be realized until individual commitments are completed. 
Leadership team members must embrace a discipline to complete their commitments as
scheduled.  They must agree to hold each other personally accountable for completing, as
scheduled, the commitments each person has made to the team.  Each leadership team
member must continuously report the status of their open commitments to the team so that
barriers to completion can be identified early in order to permit the leadership team leader and
other team members the opportunity to deal with the issues before overall deadlines are
impacted.  <Click here to learn how we help establish personal accountability>
10. Identifies and Removes Barriers
Barriers to team and individual progress will occur in every leadership team effort and must be
dealt with quickly to continue progress towards the team's goals.  The team leader must
continuously monitor the status of each individual's commitments and initiate barrier removal
processes where appropriate.  Team-based processes for developing action
plans to overcome barriers impacting individual commitments should be instilled as a part of
the team's culture.