Organizational behavior focuses on the understanding of human behavior – both as individuals and as groups, structures and cultures within organizations, and managing those variables in the most effective manner. In today’s dynamic business environment, it is essential that the business organizations apply this science in a way that ensures their best interest, as it will be impossible to compete in the globalized business environment without predicting and managing the behavior of the workforce adequately. In the case study considered here, the varied and multicultural nature of the staff of SPORTS DIRECT PLC comparing with CAPCO make it all the more necessary that the proper management styles and motivational theories are utilized to create a most effective and efficient organizational culture
1.1 Compare and Contrast Capco’s structure and culture with Sports Direct
According to Mullins (2014), many organizations structure in a recognizable way or traditional way of applying hierarchy, which orders a group of people or things within a system. It also describes the status of people and reporting levels in the structure.
Diagram: hierarchical structures
On the other hand, many organizations use a flat structure, which takes out levels of hierarchy creating a flatter organizational structure.
Diagram: flat structure
In this structure, there are fewer levels which describe in a flat structure, where there is one person at the top of the structure with everyone else reporting to them on an equal level.
Some organizations use matrix structure, where the relationship is set up as a matrix or grid. In this structure, staffs have a dual reporting relationship, generally to both the product manager and functional manager.
Diagram: matrix structure
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According to Mullins (2014), organizational culture can be categorized into four groups: power culture, role culture, task culture, and person culture. In power culture, one single head makes all the decisions and control all the organizational directions. This culture is suitable for small organizations and needs to depend on the leader. In role culture, jobs are described to the individuals and they report the superiors, where superiors have similar skills, value efficiency and accuracy. This culture creates a functional structure and predicts operations. In task culture, teams are formed and developed to solve specific problems, where every team members have the expertise to deal with the tasks. This culture follows the matrix structure. In-person culture, every individual is more valued than the organization itself. This culture follows a horizontal structure. This structure is difficult to sustain because of competing people and priorities (Mullins, 2014).
Compare and contrast Capco’s structure and culture with Sports Direct
CAPCO has a non-hierarchical, team-driven flat structure. Within CAPCO’s flat organizational structure operate matrix structures for specific projects that require a variety of skills. Once the project has been completed these employees move on to another project with a different group of employees. The slogan of CAPCO’S is as follows:
‘We support and encourage an entrepreneurial outlook and independent thinking. Capco is not about organizational charts and layers — we operate with little hierarchy because we want all employees to feel that Capco is their firm to own and run.’
The foundation of CAPCO’s culture is built on four key pillars: a) Opportunity: personal growth opportunities in a fast-growing entrepreneurial firm dedicated to financial services; b) Performance and reward: a true meritocracy where performance is recognized and rewarded; c) Work: a challenging portfolio of work that will use and stretch our employees’ skills, tackling complex business issues; d) Experience and learning: learning from and sharing insight with thought leaders of unparalleled experience……………..