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Organisations and Behaviour

Organisations and Behaviour

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Organisations and Behaviour

Lo 1: Understand the Relationship between Organisational Structure and Culture


Q1.1 Compare and contrast KBRs organisational structure and culture to that of
a similar organisation.

KBR (Kellogg Brown & Root) is an American company which deals in the engineering,
construction, military contracting company based in Texas. It has more than 57k employees
across the globe. It has projects based on management activities. It has clients which has full
range of expertise and experience. The company has a structure where the company is
divided into various business units based on their target market and market opportunities. The
business is divided into different segments with the idea of expertizing in each of them. The
organization can put concentrated efforts on different departments to become efficient in all
of them. There are many divisions of the KBR Company but the most important subsidiary is
the Aspire Defence Services Limited. This is the primary focus in the open case study
provided with this Icon College Organisations Behaviour assignment. Most of its subsidiaries
believe in having a flat company structure with minimum hierarchical levels. The
organizational culture of the company is formulated in such a way that it will be beneficial
for the company in the long run. Other competitor companies to KBR include Bechtel
Corporation at the top of the list. It follows a bigger hierarchical structure where there are
multiple layers of chain of command in the organization structure.

Q 1.2 Explain how KBRs organisational structure and culture affects the
performance of the business.
The relationship between the organizational structure and organizations culture has a great
impact on the performance of the business. The organization culture greatly depends on the
structure of the organization. The organization structure impacts the behaviour of the
employees in the organization on the regulatory front. If the organization follow too many
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Organisations and Behaviour

levels in their hierarchy system it becomes difficult to communicate between all layers of the
company efficiently. The performance of the company KBR depends on the performance of
their employees. The employees can be juxtaposed with the companys vision and mission by
making them familiar with all the processes happening at different levels of the company. So
fi the hierarchy is too long then it is a very difficult task to make the employees
knowledgeable about the activities happening at different levels of the organization. KBR
has six business units: Upstream, Downstream, KBR Services, KBR Technology, KBR
Ventures, and Government and Infrastructure. It has divided its entire business in different
business units so that it can focus independently on all of them. This will make each of these
business units efficient. It gives a very favourable working environment to its businesses
hence increasing the productivity of its employees.
Q1.3 Give examples and discuss factors that influence individual behaviour at
work.

There are many factors at the organization level which shapes the behaviour of any employee.
The most important of these factors is the organizational structure. This is really important
to understand the communication process followed in the company and the time taken in
the decision making process. At KBR, the organization structure is of a flat nature and hence
the employees are properly communicated of the happening in the organization and make the
decision making process faster .Due to this the employees remain satisfied and contribute
more towards the performance of the organization. Having a flat organization results into
better employee behaviour and increase their productivity. Another important factor which
affects the individual behaviour in the company is the organization culture. Frequent division
level meetings, better communication between the employees and their managers, time to
time training faculties for the employees, fair and periodic employee recognition programs
are some of the characteristics of a good organizational culture and helps in influencing the
employee behaviour at the workplace in a positive manner. The organization follows a matrix
format of operation which helps the company to identify the best talent present in the
company and bring them together to work on some important projects.
Lo 2: Understand Different Approaches to Management and Leadership
Q 2.1 Using the case study provided, identify which leadership style is used by
KBR and compare the effectiveness of KBRs leadership style to a similar
organisation.

Different leadership styles are present in different organizations. Each of them is effective in
their own ways. Each of them has their own merits and demerits. The leadership style is
largely responsible for the success of any business. The leadership style is responsible for
efficient resource utilization and helps in developing a strong brand image of the company.
The employees at the top most level of the organization are responsible for taking the crucial
decision which has a huge impact on the entire organization and has to prove that their
decisions will be beneficial for the organizations. They are responsible for manage the major
operational activities which is related to client relationship, supplier management, customer
management, managing financial decisions, etc. Different leaders have different approach to
all of these activities but with a common goal to increase the profits of the organization. The
leaders in the organization are responsible for setting up an example for their juniors in the
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Organisations and Behaviour

company. They act as motivational figures for its employees and are a source of inspiration
for them. So each and every move taken by the leaders are closely observed by the entire
organization and are greatly impactful for the employees of the organization. The managers
and leaders of any organization should have some competent talent which makes them
effective leaders. At KBR, the senior management and the leaders are effective because they
are technically sound and believe in imparting the skills to its employees. They are upright
and honest, they have the problem solving attitude and are open to take risks. They encourage
their employees to perform better and capable of delivering long term leadership to the
organization. On the other hand Bechtel Corporation practices democratic leadership style.
Here the leadership style focuses on encouraging open door policies. Here the company has a
bureaucratic structure where the leaders are more concerned about proper monitoring of the
performance of its employees at all levels. They provide training facilities across borders to
help their employees to gain knowledge and skills.
Q 2.2 Explain how organisational theory including the work of F.W. Taylor
underpins management practice.

The organization theory is largely responsible for the practice of management followed in
any organization. Organization theories have a check on the organization structure of any
business entity. The organization theory is dependent on the organizational practices that
impact the behaviour of the organization. Frederick Winslow Taylor is very renowned
name who made a remarkable contribution towards developing the scientific management
theory. His theories are very well applicable in different organizations .The organization
theory has different forms and each of them has contributed towards developing management
practices. His theorys major constituents are giving prime importance on the logic, analysis,
ethics, waste elimination and the approach to incorporate the standard and the most effective
processes. The management in the current times encapsulates a number or organizational
theories and practices in order to be competent and effective enough as compared to its
competitors. If we talk about KBR, then the theories which are applicable from the Taylors
theories are the determination of time required in order to finish a particular project. The
activities and the sequence of these activities to be followed in completing any project in an
organization depend on different management theories adapted by them. The study which is
done in the past which develops different organizational theories and the research behind it
shapes up the management practices of Nay Company. The management styles are influenced
by these organization theories on a large scale. There are management books like Kotler
which contains all these organizational theories which helps different businesses to develop
their organizational strategies. The Taylor theory of scientific management which we have
discussed here are more concentrated on the employee efficiency and their performance. It is
less focused on the employee behaviour. At KBR, the company focuses in developing the
skills of the employees and trains the new employees of the organization.

Q 2.3 Evaluate different approaches to management used by KBR and one of


its competitors.
There are different management approaches used by KBR. All of these are effective in their
own way. The main objective of the organization KBR is to provide sufficient training
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Organisations and Behaviour

facilities to its employees to develop their skillset. This is also done to make their employees
competitive enough to work on the different technologies available in the market and to be
ready for the changes and new advancement in the current processes in the company. The
company wants its employees to be at their toes in facing the tough challenges of the
competitive market. They focus in developing the technical, communication and presentation
skills of its employees. The management of the KBR believes that the employee skills are the
main equipment of the organization to defeat the tough competition available in the market
and which will help the business to sustain in the market. This is another reason why the
company believes in having a flat structure which will help to communicate directly with the
employees and focus on improving their skill set regularly according to the market needs.
KBR practices the most effective form of employee administration. In its competitor
organization i.e. Bechtel Corporation, the primary focus is on excelling in the market. Despite
of the multi-level hierarchical management structure, the company tries to spread the values
and vision of the company across all levels of employees.

Lo3: Understand Ways of Using Motivational Theories in Organisations


Q 3.1 Discuss the impact that different leadership styles may have on motivation
in KBR and on one of its competitors during an economic depression.

The leadership styles followed in different organizations is the main factor in the motivation
of the employees of the organization. As discussed above different leaders have different
approach to all of organizational activities but with a common goal to increase the profits of
the organization. The leaders in the organization are responsible for setting up an example for
their juniors in the company. They act as motivational figures for its employees and are a
source of inspiration for them. So each and every move taken by the leaders are closely
observed by the entire organization and are greatly impactful for the employees of the
organization. In the year 2007, the KBR was separated as an individual firm and called for a
major management style change. At that time the organization started afresh and undergone a
lot of organizational transformations which was difficult for the employees to incorporate.
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Organisations and Behaviour

Again there was a need for the change during the recession time recently. The leaders play a
very crucial role in shaping up their employees and they are the ones to whom their
employees look up to in the organization. Hence it is very necessary for the leaders to manage
their employees efficiently, align them with the organizational objectives, and train them
properly as and when needed.

Q 3.2 Compare the application of Maslows Hierarchy of Needs to Hertzbergs


hygiene and motivational factors within the workplace.
There are different motivational theories which are applicable in different organizations.
Some of these are the Maslows motivational theory, Hertzbergs hygiene and motivational
factors, X and Y motivation theory, etc. In the Maslows hierarchical needs theory, it is
explained that the needs of any individual have different priorities according to their needs.
For example at the bottom most is the psychological needs in the form of basic amenities
including potable water, clean food, and ample sleep, etc. to the top most needs of selfactualization. Form the viewpoint of the organization KBR; it focuses more on the safety
needs of the employees apart from fulfilling the other needs of the employees. The company
is focusing more on the safety needs of the employees because of the activities it is dealing
with which is quite dangerous for the employees. KBR provides proper safety on the work
floor and give training facilities to fight emergencies situations to its employees. It also
makes sure that the construction sites are provided with ample amount of safety measure for
avoiding accidents. The self-actualization needs of the employees are fulfilled by the
development programs organized by the company.
Another very common motivation theory is the Hertzbergs hygiene and motivational factors
are also known as two factors or dual factor theory. Here the needs of the employees are
classified into two columns. The first column has the needs of the employees which if not
present will make the employees dissatisfied but the presence of which will not make them
motivated. Also the needs of the employees on the second column is fulfilled will make the
employees motivated but absence of which will not make the employees dissatisfied. Some of
these needs will include the proper working environment at the workplace, basic amenities
for the employees as well as better growth opportunities in the company, Status of the job
profile offered to the employees etc.
Q 3.3 Evaluate how useful motivational theory is for managers in the 21 stCentury.

The managers play a very keen role in managing their employees and motivating them to
perform better in the organization. So the managers take several steps in motivating its
employees to meet the objectives of the organization. The level of motivation of the
employees is directly related to their performance levels. The performance of the employees
collectively forms the performance of the company hence it Is very necessary to keep the
employees motivated. The motivational theories which we discussed above are very useful
and applicable in the organizational perspective. One of the examples is the Hertzbergs
motivation theory which is very useful for the managers of KBR. The Hertzbergs motivation
theory is basically a two factor theory which analyses the factor which makes the employees
dissatisfied and which of they make them satisfied. It explains that satisfaction of the job is
entirely independent of the dissatisfaction. It is very useful in accessing the motivation level
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Organisations and Behaviour

of employees. In KBR, the company provides the basic needs of the employees absence of
which will make the employees dissatisfied like the basic amenities. It also provides the
facilities to the employees who make them satisfied like better compensation to its
employees, growth opportunities in the company, proper training facilities for the employees,
etc.
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