Case Study of Capco
The way in, which a firm structures and organises its employees make an effect on the development of culture. The culture on the other hand shapes the accepted patterns of behaviour in a firm’s workforce (Brooks, 2008). Organisation structure and culture of a firm are key factors contributing towards motivating employees, helping them to learn different approaches to management and leadership, and understand mechanisms for developing effective team work (Bloisi et. al., 2006) as discussed here in this report in the context of Capco.
Main purpose of this report is to develop an understanding about the behaviour of people within firms and the effect organisational design has in shaping that behaviour. At the same time, the report aims to develop knowledge of individual and group behaviour in organisations, and use of current theories and how it could be applied in managing employees’ behaviour in the workplace. The report includes number of tasks, which are completed with the help of Capco case study and an example of Sainsbury.
Task – 1
Capco is one of the leading global providers of consulting, managed services, and various technology solutions for financial services industry. The company operates with its 20 offices all around the world and more than 2000 employees. The company was also listed on 27th position in The Sunday Times 100 Best Companies to Work in 2013. One of the key attribute of this company differentiating it from others is it’s solely dedication towards the global financial services sector. This financial service sector embraces banking, finance, and investment (Empowering the World, 2015).
Other company used as an example in this report is Sainsbury, established in 1869 in London. It is one of the third largest chains of supermarkets in the UK. The company hold 16.5% of the UK supermarket sector. Both of these companies have some differences as well as similarities in terms of their organisation structure and culture as discussed here:
The success of company is all because of its structure, which in turn help it a developing an innovative and entrepreneurial culture to attain assured success. Today, all firms operating have a purpose or need for instance offering goods or services. To fulfil these needs, it is vital to select a structure. Organisation structure in turn is influenced by number of factors like organisation purpose, size, and the intricacy of the tasks executed, the external environment, and culture. The company products and services, its location also determines structure (Brooks, 2008).
The different types of structure adopted by firms on the basis of their size, offerings, and environment are hierarchical (tall) structure, horizontal (flat) structure, and matrix structures (Bloisi et. al., 2006). Among these various kinds of structures, the one adopted by Capco in regard to developing innovative and entrepreneurial culture is non-hierarchical, team-driven flat structure. Use of flat structure facilitate Capco to have fewer layers of management, which in turn direct it towards following short chain of command from top to bottom and wide span of control.
In contrast to Capco, the organisation structure used by Sainsbury is hierarchical (tall) structure. It is because, there are series of levels of people in this company, and the level above controls each level. For instance, Senior Managers are liable for line managers, whereas line managers are liable for sales assistants. The level of communication is long as here, there are more managerial levels, which in turn sometimes direct towards unclear and ineffective communication.
On the other hand, use of flat structure allows the Capco people to pass information or communicate in a clear and effective way. This in turn helps the company management to develop a highly motivated and empowered workforce with easy access to guidance and coaching (Brooks, 2008). Use of flat structure allows the Capco employees to freely ask questions and clear their doubts and suggests developments, which is not the case with Sainsbury. In Sainsbury, though there are thousands of employees as Capco, but they are not free to ask questions and suggestions due to different managerial levels.
In addition to flat structure, the Capco also make use of matrix structure for particular projects requiring a number of skills. The company structure facilitates it to develop an entrepreneurial and innovative culture, enjoying individuality, integrity, and openness in its work environment (Mullins, 2009). In contrast, Sainsbury make use of power culture in regard to the organisation structure adopted. Decisions undertaken here in this company are centralized around one key individual, though it is good in short run, but in long run this culture has its own disadvantages. This is the reason; now Sainsbury is also adopting task culture to allow its employees to adopt flexibility and individuality.
In Capco this is not the case, as here employees have freedom to comprehend their aspirations as it is built on four key pillars; personal growth opportunities, performance and reward, challenging portfolio of work, experience and learning. Team working is central to the way the company functions (Schein, 2016). All teams working in Capco are developed of different types of people from different fields of its business. All of them work together, by making use of their competencies, skills, and experience to complete the project.
In this way, it could be said that Capco structure and culture are significant to develop flexibility, creativity, and risk-taking among its employees. This in turn helps its employees it meet the ever-changing and challenging needs of the financial services industry.
An organisation’s structure and culture have a dependent association with each other. It is because, in today competitive business environment, a firm’s management structure helps in determining its employees’ behaviours, attitudes, dispositions, and ethics, which create the working-culture (Schein, 2016). A firm with strict hierarchical establishment structure will keep decision-making power centralised at its top only. This kind of culture of a firm will reflect a lack of freedom and independence at its lower levels.
In opposition to this, a firm with decentralized management structure like Capco will enjoy benefits of shared power and authority at all its management levels. This kind of environment directs the company towards developing a work-culture that is more independent, personalized, and responsible (Our Culture, 2016). Allocation of power and authority in similar manner at all levels help the Capco employees to behave in a positive manner and become dedicated towards attaining organisation goals on time.
Relationship between the Capco management structure and culture significantly influence the performance of its business. It is because; the Capco’s organisational structure is the way it arranges its management and different lines of authority. This in turn decides all employees’ roles and responsibilities, and the flow of information in the company. All these decisions in turn lead towards innovative and entrepreneurial work culture directing employees towards dedication and attaining all the tasks given on time and in an effective manner (Mullins, 2009).
So, the relationship in between the Capco’s management structure and culture help it to increase the performance of its overall business. Due to this relation only, all of its employees are able to work independently and effectively. They are free to communicate and resolve their doubts on time and take decisions on their own (Our Culture, 2016). All these aspects of its structure and culture help the company to continuously improve its business performance.
On the basis of studies done in regard to analysing individual behaviour, it is identified that the factors influencing individual behaviour at work are demographic factors, employees abilities and skills, perception, attitudes and their personality. Same is case with Capco as all these factors also influence Capco employees’ behaviour as discussed here:
Demographic Factors: The demographic factors pertain to an employee’s socio-economic background, nationality, education, age, race, sex etc. Capco always prefers appointing individuals from good socio-economic background, well-educated, young etc. Appointing people on the basis of demographic factors help the company to have employees who perform better in comparison to the others. Young and dynamic professionals with good academic background and effective communication skills facilitate Capco to complete all its tasks and projects on time (Kiril, 2014). The study of demographic factors plays an important role in Capco’s selection process.
Abilities and Skills: other key factors influencing individual behaviour in Capco is employees’ abilities and skills. Concerning this Capco management believes that an individual can perform effectively if his/her abilities and skills are co-ordinated with the job necessities (Schein, 2016). Capco managers play a crucial role in matching their employees’ abilities and skills with specific job requirement leading the company towards assured success.
Perception: Employees’ perception is also a key factor affecting their behaviour at work place. There are different factors that can influence an individual’s perception. So, it totally depends on Capco’s managers to develop a favourable working culture, which in turn may make a positive effect on employees’ perception. If employees’ perceptions are favourable towards their workplace, then they are likely to perform in a much better manner (Kiril, 2014).
Attitude: Next key factor in regard to influencing individual behaviour at Capco is attitude. The formation of attitude on the other hand is influenced by factors like family, culture, society, peers, and different organisational factors (Mullins, 2009). Capco managers in this regard keep studying variables associated with job with an aim to create effective work culture so that employees get encouraged to develop positive attitude towards their roles and responsibilities. This helps Capco to direct their employees towards better performance.
Personality: An individual’s personality is also an important factor influencing individual behaviour at workplace (Kiril, 2014). Due to this, at Capco it is vital for all of its managers to undertake personality related studies and identification and development of traits that could help its employees to effectively react and adjusts with other people and changing situations (Shafritz et. al., 2015).
Task – 2
A company leader is responsible for influencing employees in a positive as well as negative manner. The leadership styles adopted influence the way employees work and optimize their potentials. Similar is the case with Capco and Sainsbury, as both of these company leaders make use of different leadership styles to attain its mission and vision. There are different leadership styles such as laissez-faire style, autocratic style, participative style, transactional, and transformational style (Koech and Namusonge, 2012).
Among these leadership styles, Capco make use of different leadership styles such as participative and transformational leadership styles. With the help of participative style, which is opposite of autocratic style, Capco management become able to offer continuous guidance to its different teams and subdivisions along with the acceptance of input from their individual staff members (Our Leadership, 2016). Participative style helps Capco leaders to make the final decisions but also encourage ideas, feedbacks, and suggestions from all if its employees.
On the other hand use of transformation style in Capco is also effective in terms of motivating its employees to continuously improve their productivity and competence through communication and high perceptibility. The success of this style is all because of the high involvement of Capco’s managers to attain goals. With the help of this style, Capco leaders emphasize on big picture within the company and allocate smaller roles and responsibilities to their team to achieve all goals on the time (McCleskey, 2014).
In contrast to Capco, Sainsbury’s present success also depends on its participative leadership style. Initially, the company made use of autocratic leadership style, but this in turn directed it towards lost market leadership to Tesco. Subsequently, the company new leaders started changing their leadership style and focussed on participative leadership style. Use of this leadership style helped the company to encourage its employee morale as they also felt contributing in the company’s decision-making process (Thompson and Martin, 2005). In addition to this, participative style helped the company employees to easily accept and embrace changed as they also played a key role in the company process.
Organisation theories refer to approaches to organisation analysis. On the other hand practice of management pertains to managing a business and its different tasks. Practice of management includes the function of planning, organizing, leading, and controlling (McCleskey, 2014). To handle all these functions of management of a firm like Capco, it is vital for its leaders and managers to do organisation analysis. Organisation analysis helps a firm to understand how and on the basis of what factors a firm can improve its employee’s efficiency leading towards overall improvement.
This is the reason study of organisational theories is done by all firms and same is the case with Capco. A critical study of organisational theories has significantly facilitated Capco’s practice of management. It is because; all organisation theories have their own purpose and organisation analysis in the context of changing business environment. For example, scientific management theory helped Capco to understand the concept of planning of business related work to attain efficiency, specialisation, and standardization (Martin and Bell, 2012). With the help of this theory, Capco improved its practice of management by focussing on planning. As well, with the help of four principles of scientific management theory, Capco management also understood the importance of mutual trust with their staff.
Similarly modern organizational theories like systems approach, socio-technical approach, and situational approach assist Capco management practice in a considerable manner. Analyses of all these theories direct Capco management to consider the company as a system composed of social system, technical system, and its environment (Shafritz et. al., 2015). The knowledge gained through these theories about how organisation work make a positive influence on Capco managers to manage all functions of management in an effective and efficient manner. The reason behind Capco current success is its knowledge about different organisational theories.
From the time Capco and Sainsbury started doing business have made use of different approaches to management. With an evolution of business environment and trends, the companies kept changing their approaches to management. For instance initially, both the companies made use of classical approach to management, which included bureaucratic, administrative, and scientific approach (Mahmood and Basharat, 2012). Among these the one commonly used by both the companies was Scientific Management Approach.
This approach was introduced by Frederic W. Taylor. This approach proposed systematic investigation is essential to identify appropriate methods, standards, and timings to perform different operations. With the help of this approach both the companies’ management learned how to plan and control the work (Martin and Bell, 2012). Other key approaches used by Capco and Sainsbury include behavioural theory, socio-technical systems approach, inter-personal behaviour approach, human relation approach, and social system approach (Indabawa and Uba, 2014).
The behaviour approach to management helped both the companies to learn the importance of human element and how they need to be organized. Use of all these theories helped the companies to view their organisation from people’s point of view, which is crucial in the present. Employees are key asset of a firm, and need to be managed effectively, which is possible only with the help of using an appropriate approach of management with rapidly changing business environment (Celik and Dogan, 2011).
Most common approaches used nowadays by Capco and Sainsbury include system approach, contingency approach, decision-theory approach, and re-engineering approach known as modern approaches to management. Use of system approach helped both the companies to learn organisations are actually a dynamic system, receptive, complex, and susceptible to emerging environment changes (Shafritz et. al., 2015). In addition to this, use of contingency approach facilitates firms in understanding there is no one best mean to manage, as it relies upon situations and circumstances. Due to this today, thorough knowledge of situational variables ad external factors are crucial to attain success.
Task – 3
Leadership is far beyond management. Management includes getting things done with the use of organisational resources, the set rules and regulations. Leadership, on the other hand, embraces driving through changes and new initiatives. Management actually involves dealing with complexities, whereas leadership is all about handing change. In other words, leadership is actually an art of motivating a group of individuals within periods of change (Iqbal et. al., 2015). Same is the case with Capco as Capco also make use different leadership styles to motivate its employees within period of change as mentioned here:
Participative Leadership Style: With the use of this leadership style, Capco managers try to involve their subordinates in making different business decisions. All decisions in this type of style or based on subordinates contributions, which motivates Capco employees to become dedicated and drive through change and new initiatives whenever needed (Bhatti et.al., 2012).
Transformational Leadership Style: Other significant leadership style used in Capco within period of change is transformational leadership style. The company transformational leaders motivate their team members to perform more than they initially planned and often even more than they assumed possible (Iqbal et. al., 2015). Use of this leadership style helps Capco managers to set more exciting opportunities and typically attain higher performances. This in turn direct the company to have more dedicated and satisfied employees while confronting period of change.
Coaching Leadership Style: Use of this leadership style, include continuous teaching and supervision of employees. In period of change this leadership style is highly useful as it help Capco leaders to develop an operational setting which require continuous watch over performance and results. Additionally, use of this style also helps Capco managers to improve their subordinates’ skills, by motivating, inspiring, and encouraging them to take more challenging tasks.
In addition to these leadership styles, Capco also make use of other leadership styles such as consultative, facilitative, visionary etc. within periods of change. As per the nature of work and employees behaviour, the company leaders decide the leadership style they should use and implement (Koech and Namusonge, 2012). Without making use of appropriate leadership styles, it would not have been possible for Capco to attain its current position in the industry.
Today, employees play an important role in the success of an organisation. This is the reason, in the present all firms try to implement different motivational theories to become able to motivate their employees to work and optimize their skills and performance (Miner, 2007). Capco also make use of different motivation theories in its work setting to motivate employees. Among different motivational theories used, two theories are compared here in terms of their effects on work setting:
Maslow’s Need Hierarchy Theory:
It is one of the most well-known theories of motivation based on human needs. In accordance to Maslow all of us follow a hierarchy of needs that varies from lower to higher. Once lower needs are fulfilled, it is likely to emerge higher needs. As per this theory an employee does not feel a higher need, until his current or lower level needs are fulfilled (Kaur, 2013).
Maslow’s Hierarchy of Needs
With the application of this theory, Capco management focus on fulfilling its employees’ needs ranging from lower to higher. To fulfil physiological needs of its employees, the company offers ample breaks of lunch, canteen facilities, and timely salaries to allow its employees to buy life’s essentials. Safety needs of its employees are fulfilled by offering a work environment, which is safe along with relative job security and freedom from pressures (Kaur, 2013).
Along with this, the company management also tries to develop feelings of acceptance, belonging by strengthening team dynamics to fulfil its employees’ social needs. Esteem needs of employees are fulfilled by recognizing their attainments, handing over key projects, and offering appropriate status to allow them to feel valued and esteemed (Yudhvir and Sunita, 2012). Higher level needs of employees are attained by offering them challenging and significant work assignments, enabling innovation, originality, and development in accordance to company’s long-term goals.
Herzberg Motivation – Hygiene Theory:
Another motivation theory that is applied in Capco is Herzberg Motivation-Hygiene theory (two factor theory). In contrast to Maslow’s Hierarchy of Needs theory, which includes different levels of needs, this theory is based on following factors from work environment causing satisfaction or dissatisfaction. Motivation factors as per this theory used by the company include achievement, recognition, work, responsibility, advancement, and growth. On the other hand hygiene factors also known as dissatisfied factors are company policy, supervision, work conditions, relationship with boss, salary, relationship with peers etc., (Miner, 2007).
The application this theory is different from Maslow’s theory as it advocates jobs designed in Capco should be challenged enough to utilize its employees full ability. Maslow’s theory focusses on following employees needs in a sequence to motivate them, whereas this theory emphasise on designing a job in an appropriate manner to so that the company become able to utilize full abilities of its employees (Yudhvir and Sunita, 2012). Both the theories have their own limitations, which are also effectively considered by Capco while applying it in their work setting.
One of the most important functions of Capco managers to is to get different things done through its employees. This is possible only when employees are motivated enough to work with dedication. Today, it is crucial for managers of all firms to motivate their employees in regard to stay competitive, and this can only be done with the help of understanding and using different motivation theories (Champoux, 2016). Each and every employee is different from each other, and may get motivated with different factors. So, it is vital for Capco managers to identify what drives each employee.
Concerning this, it is vital to develop a thorough understanding about different motivation theories and their effectively application. Knowledge about motivation theories may help Capco managers to explain what actually motivate their employees to behave in the way they do. As well, use of motivational theories in different work setting will also help managers to learn why some employees are committed to work harder than others (Lussier, 2015). This identification of differences in employees’ behaviour in turn may direct the managers to understand, how they can motivate each of their employees so that they can perform at their best.
Each and every motivation theory identifies different employees’ needs and aspects that may influence their behaviour. With the help of different theories, the company managers will become able to understand what actually influence employees nowadays, and how factors like their needs, recognition, salary, working environment can be used as positive motivators. Managers with lack of knowledge about motivation theories may think that monetary incentives are the only mean to motivate their staff, but this is not true in current rapidly changing business environment. Today employees wants to work in a healthy, safe, innovative, and creative working environment that can only be developed with a complete understanding and effective application of different motivation theories (Lussier, 2015).
Task – 4
Nowadays team working is common in all organisations, and same is the situation with Capco. Some of the Capco teams are formal, in which individuals are brought together from various functions or departments to work and finish a particular project. In addition to this, the company also employs informal teams, for instance a team formed to organise Capco’s social event or some small scale project (Lussier, 2015). In Capco, a team is actually more than a group of people who take place to work together.
As per Capco management an effective team is the one sharing a common purpose, esteems and supports all members of the groups, highly committed to attain set targets, work with a clear understanding about the work and their roles while working in a team or group (Brooks, 2008). Teams and groups working in Capco are good in generating and sharing ideas, and make use of open communication, and this is the reason they become able to complete the projects or tasks allotted on time.
Team working is central to the way company operates. All its teams are formed with different kinds of people from different fields of its operations. Appointing teams from different areas help Capco teams to work together, with the use of their varying strengths, skills, and experience. Before taking a project, the company’s informal teams work on the idea and explore it to identify how it could be approached and its eventual benefit in the long run (Lussier, 2015). Subsequently, formal teams or groups are appointed to work on the projects, and take it as an opportunity to improve their skills, strengths, and experiences.
In the present, rapidly changing business environment, success of all firms depends on the development of effective teamwork. Without effective teamwork it is not possible for any organisation to embrace changing business trends and customers demand. Capco’s success also depends on the effectiveness of its team. All its teams are developed in a way that they are able to work together and attain set business targets (Brooks, 2008). In this regard some of factors are essential to be considered to promote teamwork and handle issues in this regard.
One of the key factors used by Capco to promote effective development of teamwork is to have a common purpose. Until or unless all team members do not understand the purpose, they won’t be able to work effectively. So, it is the duty of team managers to include all team members in a similar manner, and understand that the team is working for a common purpose rather than individual purpose (Lussier, 2015). Other factor used by Capco managers to develop effective team work is a sense of respect and support for each other. With a feeling of respect, there would be no conflict, and everyone in the team will become committed to attain set targets (West, 2012).
Other key factor that helps Capco managers to develop effective teamwork is clear understanding about the work and role of each and every team member. With a clear understanding all team members work as per their roles rather than interfering or criticising others work. Next, significant factors to promote effective teamwork are open communication. Communication plays a crucial role to develop teamwork in between all team members (Champoux, 2016).
On the other hand there are some factors that may inhibit the development of effective teamwork in Capco and it include fear of conflict, ineffective communication, lack of understanding or respect for others and their work. So it is the duty of team manager to make it clear from the beginning and make use of factors that may only direct the team towards development of effective team work rather than fear of conflict (Brooks, 2008). This is possible in Capco only because of the use of all above mentioned factors from the time the managers decide about teams.
With increasing technological advancements, more and more companies are getting befitted from it. Various new technologies are introduced nowadays in different organisations. For instance, at Capco, IT is at the central of everything it does to make its services better for customers. Use of different technologies facilitates Capco staff to work in a much better manner, and communication quickly. In addition to this, technology also makes a positive impact on its team functioning, as the company make use of technology to train and update its all team members (Lussier, 2015).
Capco managers train their team members with the help of simulation technology, accessing information through different advance handheld devices, interactive online training etc. Use of technology makes it easy for team members to understand their roles and discuss their doubts with each other’s in an easy and effective manner (Brooks, 2008). Use of technologies helps Capco teams to access information in an easier manner, share good practice, and to be up to date with further researches (Beyerlein, 2013).
Though, the use of technologies improves team functioning, but in some cases it may also inhibit team functioning, if not updated and maintained on time. Technology keep changing, which in turn make it essential for Capco managers to keep up-to-date and also help their staff to understand changes and how to adopt updates (Champoux, 2016). Currently, Capco make use of e-mail, mobile phones, groupware, website, intranets etc., which in turn facilitate its staff and teams to work effectively and communication easily.
On the basis of different tasks undertaken in this report, it can be said that managing behaviour in the workplace is must to attain success. In this regard it is vital for companies’ management to understand how individuals and groups behave in organisations, and what factors influence their behaviour in positive as well as negative manner. The case study of Capco undertaken in regard to this report along with an example of Sainsbury is really significant to develop a thorough understanding about the behaviour of individuals and groups within the organisations.
By exploring the links in between Capco structure and culture, it become evident that interaction in between these two aspects is important to make a positive influence on employees’ behaviour. At the same time, identification of different approaches to management and leaderships used by Capco help in developing an understanding how a firm can influence employees behaviour with the use of appropriate management and leadership approaches. Discussion of motivational theories in regard to Capco direct towards identifying the role of motivation in influencing individuals as well as group behaviour.
In the end, the report concentrates on mechanisms used by Capco for developing effective teamwork is also useful to understand the nature of teams and groups, and how they can be influenced or hindered with the help of some factors. On the whole, all the tasks undertaken are really useful to understand how individuals and group behave and the reasons behind their specific behaviour.
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