Ob Final Assignment

RIMS INTERNATIONAL SCHOOL OF BUSINESS
& TECHNOLOGY
A PROJECT ON:
ORGANISATIONAL BEHAVIOUR
SUBJECT NAME:
ORGANISATIONAL BEHAVIOUR
PRESENTED BY
KEYUR.P.DESAI
BBA FIRST YEAR

HIGHER NATIONAL CERTIFICATE
PROJECT GUIDE
Prof. Mrs PRIYA CHOWDHURY
RISBT, MUMBAI, INDIA KEYUR DESAI - Page 1

ASSIGNMENT GUIDELINES
1. This Assignment is designed to help you achieve a Merit or Distinction.

2. During your Structured Individual Study (SIS), you are required to answer each question above (Outcomes
Assessment Criteria) which has been covered separately in respective Lessons.
3. In your answer, write about the key concepts highlighted by the Lesson (underpinning knowledge).
4. You can get an idea of the key concepts by referring to the Lessons handout, in the Overview section of
the Lesson.
5. Look for real-life examples to apply your key concepts (applied knowledge).
6. Make use of the SIS time to research books.
7. During your SIS time, use the computer to research recommended websites and word process your
Assignment.
8. Follow the guidelines given in your Handbook.
9. Study the Merit and Distinction Descriptors below to ensure that your work demonstrates compliance in
order for it to be considered for their respective Awards.
It is important that the work you produce is carefully planned & written.
Your work should demonstrate (a) your understanding of the theory you have learned (underpinning
knowledge) and (b) your ability to apply it to real life/contemporary situations/case study (applied knowledge).
Please follow the instructions below:
1. Start each answer from a new page

2. Highlight each question clearly
3. Avoid bullet points and restrict the use of numberings; remember that you are supposed to write an essay.
4. All work should be comprehensively referenced and all sources must be acknowledged fully, this includes
books & journals used as well websites visited. Details such as page numbers, publishers and publication
year should also be stated, in addition to the name of the author(s) and publication. Books, articles and
journals should be the main sources; net sources are allowed up to 25% max.
5. Follow Harvard Referencing system.
6. Ensure that your work is within the stated word limit.
7. All work should be word-processed.
8. Pages should be numbered (bottom right hand corner)
9. Assignment sheet should be attached in the front.
10. Spell check the document and read thoroughly for grammatical errors.
11. 1.5-line spacing is preferred but is not essential.
12. Bibliography at the end of the assignment.
The correct format to answer each question (Task) is as follows:

1. Introduction (analyse the question which theory is it trying to ask you to demonstrate?)
2. Underpinning Knowledge (write about the relevant theory/points)
3. Applied Knowledge (apply the theory/points you have written about in your underpinning knowledge
to your case study/real life example)
4. Conclusion (summarise what you have written in 2 & 3 above).
Assignment Cover Sheet
UNIT Unit 3: ORGANISATIONS AND Course HNC-
BEHAVIOUR Business
LECTURER Ms. Priya Chowdhury VERIFIER Ms. Reena Cliffton
HAND OUT DATE 15.10.10 SUBMISSION 25.11.10

DATE
STUDENT ID: TERM Dec10

GRADE DESCRIPTORS
P A S S DESCRIPTORS Learners Evidence Shows Tutor COMMENTS/FEEDBACK
to
(FROM Outcomes Check
Assessment
Criteria)
1 Explore organizational Compare and contrast different organizational

structure and culture. structures and culture

Analyse the relationship between an

organization`s structure and culture and the

effects on business performance
Analyse the factors which influence individual
behavior at work

2 Examine different Describe different leadership styles and the

approaches to effectiveness of these leadership approaches

management and
leadership and Analyse how organizational theory underpins
principles and practices of organizing and of
theories of
management.
organization.
Compare the different approaches to
management and theories of organization used
by two organizations.
3 Examine the Explain the different motivational theories and
relationship their application within the workplace.

between
motivational Assess the relationship between motivation
theory and the practice of management
theories
4 Demonstrate an Describe the nature of groups and group

understanding of behavior within organizations

working with others
, teamwork , groups Investigate the factors that lead to effective
and groups teamwork and the influences that threaten

dynamics success
Evaluate the impact of technology on team

functioning within a given organisation

MERIT Learners Evidence Shows COMMENTS/FEEDBACK

DESCRIPTORS
- Relevant theories and techniques

have been applied

1 Identify and apply
strategies to find - Effective judgments have been made
appropriate solution
- Complex problems with more than
one variable have been explored

- An effective approach to study and
research has been used.

2 Select/ design and - A range of sources of information
apply appropriate used

methods/techniques
- The selection methods and
techniques/sources justified

- The design of methods/techniques
justified


- Complex information/data have been
synthesized and processed.

- Appropriate learning
methods/techniques applied

3 Present and - Appropriate structure and approach
communicate has been used

appropriate findings
- Logical and coherent arguments have
been presented

- Technical language accurately used
- A range of methods of presentation

has been used

- Appropriate media used

- Familiar and unfamiliar contexts have
been used

- It is appropriate for familiar and
unfamiliar audiences

DISTINCTION Learners Evidence Shows COMMENTS/FEEDBACK

DESCRIPTORS

1 Use critical reflection - Synthesis has been used to generate
to evaluate own work and justify valid conclusions

and justify valid
conclusions - The validity of results has been
judged

- Self criticism of approach has taken
place

- Evaluation has taken place using
defined criteria

- Realistic improvements have been
proposed against characteristics for
success
2 Take responsibility for - Autonomy/independence
managing and demonstrated

organizing activities
- Substantial activities/projects have
been planned, managed and
organized
- The unforeseen have been
accommodated

- The importance of interdependence
has been recognized

3 Demonstrate - Ideas generated and decisions taken
convergent, lateral

and creative thinking
- Self evaluation has taken place

- Convergent and lateral thinking have
been applied


- Problems have been solved

- Capacity for innovation and creative
thought has been used

- Receptiveness to new ideas have
been demonstrated

- Unfamiliar contexts have been
applied

Any Other Comments
Grade Given by Tutor:
Pass
Merit Tutor Signature:Date:.
Distinction
IV Grading Check:
IV Signature: Date:..
Agree
Disagree
MODIFY GRADE TO
Students Response:
Student Signature: Date:

School of Business Management
Organisations and Behaviour
Course BTEC Higher Nationals (HNC) Business Studies
Unit 3: Organisations and Behaviour
Unit Individual Assessment
Ms. Priya
Lecturer Issue Date: 15.10.10 Due Date: 25.11.10
Chowdhury
Name Student No.
Student
Instructions
-You are required to produce an academic report of 3000 words (+/- 10%)
covering all the questions given below.
-The colleges regulations concerning cheating, collusion and plagiarism apply to

this assessment. (All sources must be referenced by using Harvard Referencing
System)

In the present day competitive business environment it is important for managers to
uunderstand what shapes the way organisations work. Organisation behaviour seeks to
understand how the people, organisation structure & culture help manager in making
business decisions.
You are required to choose any two organisations of your choice that you are familiar
with. And explore and analyse the following elements of organisation and behavior.
1. Organisational structure and culture
Compare and contrast different organizational structures and culture

Analyse the relationship between an organization`s structure and culture
and the effects on business performance
2. Approaches to management and leadership

Analyse how organizational theory underpins principles and practices of
organizing and of management.
Compare the different approaches to management and theories of organization
used by two organizations.
Describe different leadership styles and the effectiveness of these leadership
approaches
3. The relationship between motivational theories

Explain the different motivational theories and their application within the
workplace.
Assess the relationship between motivation theory and the practice of
management
4. Demonstrate an understanding of working with others ,

teamwork , groups and groups dynamics
Describe the nature of groups and group behavior within organizations
Investigate the factors that lead to effective teamwork and the influences
that threaten success
Evaluate the impact of technology on team functioning within a given
organisation

Table of Contents
I Executive Summary 10
II Introduction about the companies. 11
Part 1
1a Compare and contrast different organisational structures and culture 12
1b Analysing the relationship between an organisations structure and 18
culture and its business performance?
1c Analyse the factors which influences individual behaviour at work 19
Part 2
2a Describe different leadership styles and the effectiveness of these 21
leadership approaches.
2b Analyse how organisational theory underpins principles and practices 24
of organizing used by organisation
Part 3
3a Explain the different motivational theories and their application within 27
the workplace
3b Assess the relationship between motivation theory and the practice of 30
management
Part 4
4a Describe the nature of groups and groups behaviour within the 33
organisation.
4b Investigate the factors that lead to effective teamwork and the influence 34
that threat success.
4c Evaluate the impact of technology on team functioning within a given 36
organisation.
III Conclusion 37
IV Bibliography. 38
List of Diagrams and Charts:
1.1 Explain different kinds of structure. 12

1.2 Bombay paints public ltd organisational structure. 14
1.3 Asian paints private ltd organisational structure. 15
2.1 Demonstrate different leadership style. 21
2.2 Gives you an idea about the different leadership approaches. 22

2.3 Explains different types of approaches to organisation. 24
3.1 Shows difference between the motivated and unmotivated staff. 27
3.2 illustrates different types of content theories of motivation 28
3.3 Demonstrates different types process theories. 28
3.4 Shows the hierarchy of needs. 29
3.5 Demonstrates different level of needs in the hierarchy. 30
4.1 Gives you an idea about of how groups are formed. 33
4.2 Illustrates how informal groups are formed. 34
4.3 Explains the integrated network of communication. 35
Executive Summary:-
Organisational behaviour is a field dedicated to better understanding and managing

people at work. It deals with how people act and react in organisations of all kinds.
Organisations are a social invention helping people to achieve things collectively that
they cannot achieve alone. Organisations are the chessboard upon which the game
of life is played. Organisational behaviour tell us -life within organisation-is to know
more about the nature, possibilities, rules, regulations and policies of that game.
In this report the author will take two different kinds of organisations operating in the
India, where in which Asian Paints private limited is in the private sector and

Bombay Paints public ltd is in the public sector but it is non-quoted company. From
this assignment the author will try to find the organisational structure, culture, the
relationships of structure and culture they possess and the effects on the business
performance. He will also pursue to identify the leadership styles in the chosen
organisation and explain the effectiveness of these leadership approaches, as well
the motivational theories used in the organisations to motivate their employees and
also the author will also able evaluate the ways in which teamwork, groups and
group dynamics.
Organisation and behaviour is one of the units where in which it allows the author to
explore practical knowledge, scrutinize the functioning of the organisation
internally as well as externally. The unit has also developed the author to
understand the behaviour of the people within the organisation.
INTRODUCTION:-
The two chosen companies that are picked for this project are Bombay Paints
(Grauer & Weil Ltd) and Asian Paints.
Bombay Paints public ltd was established in 1948 as a Private Limited Company
by Mr. Y.A. Ezzudin and Mr. D. Jamaluddin. It was later bought over by two
technocrats, Mr. J. M. Chudasama and Mr. J. M. Nadkarni and converted into a non
listed Public Limited Company in 1960.In April 1994, the Management of the
Company once again changed hands by virtue of which the control was transferred
to a larger business group, known as the GROWEL GROUP, specialising in surface

treatment and corrosion protection. The annual turnover of the group in the year
2007-08 aggregated to over Rs. 2750 Million. With the help of management
expertise, coupled with high level of infrastructure and business synergies offered by
the parent group, Bombay Paints has become stronger with a compelling presence
in the paint industry.
Asian Paints Pvt. ltd is India's largest paint company and ranked among the top ten
Decorative coatings companies in the world with a turnover of INR 66.80 billion.
Asian Paints along with its subsidiaries have operations in 17 countries across the
world with 23 paint manufacturing facilities, servicing consumers in 65 countries
through Berger International, SCIB Paints Egypt, Asian Paints, Apco Coatings and
Taubmans.
Asian Paints aims to become one of the top five Decorative coatings companies
world-wide by leveraging its expertise in the higher growth emerging markets.
Simultaneously, the company intends to build long term value in the Industrial
coatings business through alliances with established global partners.
1 a) Compare and Contrast different organisational structure and culture?

Wilson and Rosenfeld (1990, p.215) says, The established pattern of
relationships between the component parts of an organisation, outlining both
communication, control and authority patterns. Structure distinguishes the parts of an
organisation and delineates the relationship between them. Organisations are
structured in a variety of ways, dependant on their objectives and culture. The
structure of an organisation will determine the manner in which it operates and its
performance. Structure allows the responsibilities for different functions and
processes to be clearly allocated to different departments and employees .

Bartol and Martin (1994, p.283) says, The Formal pattern of interactions and
coordination designed by management link the task of individuals and groups in
achieving organisational goals. All companies that are available today have a
structure of the positioning of its employees. It shows how work is divided and how
the co-ordination works between the members of the organization. The structure also
shows how the tasks and responsibilities will be delegated and the way of
communication is done from the top level of management to the lower level of
management.
There are many different types of structures like as follows:-
Tall hierarchical By Function

Flat structure.
structure. structure.
By Product By Area By Matrix

structure. structure. structure.
Figure 1.1 explain different kinds of Structure (Laurie Mullins 8 thedition of Organisational behaviour)
Basic things that Bombay paints public ltd company and Asian paints private ltd
company should consider while designing the structure of their organization: Set
objectives, list the tasks, divide work into groups, centralisation or decentralisation,
organisations principles, span of control and chain of command.
The reason being is because it will help the organisations (Asian paints and
Bombay paints) to develop an appropriate structure where in which it will able to
link individuals in established network of relationships so that authority, responsibility
and communications can be controlled. It is also necessary to assign suitable levels
of authority and responsibility to groups or individuals to achieve the desired
outcomes of the organisation. This creates a hierarchy or chain of command in which
authority flows downward and accountability (i.e. centralisation or

decentralisation) because of responsibility flows back up. And the last thing that
they should take while designing the structure is organisations principles because
this is foremost important factor for any company as this will help the business to
create ethics and the code of conduct for the people working in the organisation
The figure 1.2 and 1.3 below will show the organisational structure of
Bombay paints and Asian paints respectively.

ORGANISATIONAL STRUCUTRE OF BOMBAY PAINTS PUBLIC LTD.
Managing
Director
Chief Executive
Management
representativ
e
Chief GM DGM DGM DGM DGM GM Planning/MIS/

Operations Accounts Logistic Purchase Admin Costing
SR SR MGR
Purchase Sales Admin
MGR EDP
Excise Manager
Figure 1.2 Bombay Paints organisational structure. (Field research)

SR MGR
Sales Admin

ORGANISATIONAL STRUCTURE OF ASIAN PAINTS PVT LTD.
CEO OF ASIAN PAINTS
State State State

1 2 3
Figure 1.3 shows the organisation structure of Asian paints. (wwww.asianpaint.com)
As the figure 1.2 contrasts the Bombay paints as an organisation which has
functional structure, which is arranged according to what each section or
department does. This means that Bombay paints have a wider span of control
than Asian paints but still follows the original passing down of authority to their
employee that is shorter chain of command.
In contrast to 1.3 it shows that Asian paints, as a national organisation, have

originally a Taller & formal hierarchical structure where the authority is
centralised and bureaucracy is present. Asian paints structure has a narrow span of
control and taller chain of command where there is CEO, 3 divisional heads, middle
managers and operational staff. Also the tall structure allows tunnel vision for its
employees which help them to be focus in their department.
Critical Analysis:-
As Asian paints Pvt ltd have adopted a tall hierarchical structure the drawback of
having this structure is that, there is no interlinking of departments which might lead
to employees being de-motivated and bored of doing the task given by their
managers. In this case, there will be many communication problems that will occur.
Decision making and co-ordination will also become a worrying factor for Asian

paints Pvt ltd, as the decisions made may not be able to pass through all the levels
of hierarchy. So therefore should flatten their structure in order to overcome this
problem stated above. In comparison with Bombay paints the organisation does
allow cross communication with the other department to overcome the problem of
communication with other departments.
The rules and regulations are clearly required in a large organisation such as Asian
paints private ltd in order to bring unity across the whole organisation. The
existence (welfare programmes, then training facilities and safety regulations)
of these policies and regulation will provide security for all employees and allow for
discipline to exist within the workplace. This helps to maintain focus on the task to be
done and helps engender positive and friendly working environment where all staff
understand that they (employees) are there to do a job and are aware of their roles
and their boundaries. These things are very much of importance to Bombay paints
public ltd, they do follow the rules and regulations but consequently the working
environment is not all rigid (their structure delivers much importance of two
way communication with feedback which is why Bombay paints is structure is
best suited), where roles are defined according to different departments where in
which they adopt decentralised decision making enhance an organisational
perspective across functions.
Therefore Drucker, P., (2006) the management and organisational behaviour journal
of Laurie J. MULLINS of the eighth edition says a good structure does not by itself
produce good performance. But a poor organization structure makes good
performance impossible, no matter how good the individual managers may be. What
Drucker meant was that a good structure may not be able to improve the
performance but it will definitely help not to worsen it either. Whereas, if the structure
in not appropriate then itll sure make it impossible for the improvement of the
performance of the business.
Asian paints: due to the hierarchical influence in the employees the work
pleasure is not there. Therefore the chain of command can also be influenced from
bottom to top in order to give the lower level an opportunity to give their employees
empowerment to take decision. Bombay paints: as the structure is functional

structure their structure allows the organisation to delegate task to the lower level
which makes the organisation best suited.
The concept of culture has developed from ANTHROPOLOGY i.e. the study of the
human behaviour as a whole and as well as the study of the mankind. The
management and organisational behaviour journal of Laurie J. MULLINS of the
eighth edition states that Organisational Culture is the collection of traditional
values, policies, beliefs and attitudes that constitute a pervasive context for
everything that we do and think in an Organisation.
Organisational culture can be viewed as a system of shared values (about what is

important) and beliefs (about how things work) that shape a companys behavioural
norms (the way we do things around here)
Atkinson et al (1993) an introduction to psychology 11 th in LAURIE J. MULLINS

eighth edition book of organisational behaviour, devoted considerable attention to the
collection of traditions, values, beliefs, and attitudes that constitute a pervasive
context for everything we do and think in an organisation. This means that Atkinson
explains the orgnisational culture as reflecting the underlying assumptions about the
way work is performed, done what is acceptable and not acceptable and what
behavior and actions are encouraged and discouraged.
Bombay paints follows a role orientated culture, they excel in specialisation of its
employees into various functions and each individual within the function is assigned
a particular role. Employees focus on their particular role as assigned to them by
their job description and this increase their productivity for the company. The cult ure
used in Bombay paints follows a very influential procedure in any firm that will drive
the company forward and make sure that the company earns for which it operates
that is to make profit. Whereas Asian paints adopts a people orientated culture
because people culture depends on socializing with the co- workers and working
along in groups, where all individuals believe themselves superior to the
organization.

B) Analysing the relationship between an organisations structure and culture
and its business performance?
As stated above Bombay paints have a functional structure and role

orientated culture, if we see they have in all together a perfectly balance
structure and culture, it is because of this approach Bombay paints are able to
achieve their goals and objectives set by their management. The annual turnover of
the group in the year 2008-09 aggregated to over Rs. 2750 Million. With the help of
management expertise, coupled with high level of infrastructure and business
synergies offered by the parent group, Bombay Paints has become stronger with a
compelling presence in the paint industry . Role culture perfectly suits functional
structure because its allows specialisation in each department also it allows
delegation (empowerment) of work at each department which enhances coordination
and control. According to me they are best suited with Role culture and a functional
structure because it will allow employees to specialise in the areas which they are
best at it.
In comparison with Asian paints it is its culture and structure (people culture
and hierarchical structure) that is got them the 10th largest decorative paint
company in the world. Asian Paints is more than twice the size of its nearest
competitor It is one of the most admired companies in India with 27 manufacturing
locations, Asian Paints restructured itself into Growth, Asian Paints aims to become
the 5th largest decorative paint company in the world.
Critical Analysis:-
Bombay paints: The author feels that if Bombay paints adopt people orientated
culture then current scenario will be far more impressive than the current one
because as they are now using role culture the employees might feel bored of doing
the particular task which is given to them so its better if they adopt bit of peoples
culture there will be socializing within the operational staff. The reason why the
author is suggesting is because during the financial year of 2009-10 there were
issue which were rising on like workers going in strike because there was no
leisure time given during the work hours which is why the author is
suggesting for a change.

In contrast to Asian paints the author strongly feels that they should adopt Task
culture (bet your company culture) because it will help them to run the organisation
more appropriately than before. A task culture is well suited those business who are
having a hierarchical structure. The employees will be at least working and keeping
in mind the organisational goals and not just working for their personal goals. The
organisation should try to work out a strategy keeping in mind the employees
personal goals and as well the organisational goals and try to motivate them to reach
the targets which are given by the organisation. The reason being to bring a
change in the organisation is because firstly the sales have been stagnated for
the past six months which is 228.72 crore and the performance of the company
is falling by every 1% per year.
C) Analyse the factors which influence individual behaviour at work?
The factors which influences Bombay paints at work are mainly three factors
they are as follows: - Demographic factors: these are based on factors like the
socio economic background, age, sex, race, nationality. Preferably Bombay paints
would want its staff and workers to be from a good enough social background and
well educated as if they dont have the appropriate attitude towards the customers
then the customers will not be satisfied and Bombay paints might lose out on some
loyal consumers.
Abilities and skills: the individual behaviour of a person gets influenced by the skills
and abilities they have. The workers of BP have abilities to perform a task beyond
their expectations which makes them feel motivated.
Personality: factors that influence an employees personality are heredity, culture,

family and situation. Individuals vary because of their personality in an organizational
environment and so does their behaviour towards situations. BP expects a different
behaviour from its Production workers and a different behaviour from the mechanics,
CEOs, managers and ground staff. The behaviours vary according to the post of an
individual.
At the other end Asian paints Pvt ltd: they are having the same Demographic
factor, creating enthusiasm for its employees, workers, managers, and its
staff. For e.g. Asian paints is famous for motivating its staff.

The staffs are given certain decision-making responsibility in certain matters
and in recruiting in order to motivate them. Asian paints give bonuses to a
team rather than individual-performance.
They also use the McClelland theory for motivating the staff where they use need
for achievement (recognition, awards), need for power (responsibilities, delegation),
need for affiliation (self belonging or to a group.) .Every staff of Asian paint has the
access to all the sales and margin figures of all the departments. This means that on
reaching the targets of the organisation the benefit is transferred to all departments
with different kinds of bonuses for each department like for e.g. lower level of the
organisation will be given extra incentive whereas for managers will be awarded with
recognition and as well as perks etc.
And last factor which is influencing individual at work is it Nationality and ethnic
group at the work place. Nationality is one of the factors because as it operations
or base is in India it is obvious that the company is going to recruit the Indians so
that is why it will be easier for the top management to communicate with the lower
levels of the organisation.

Q.2 a) Describe different leadership styles and the effectiveness of these
leadership approaches?
According to Useem, M., How to Groom Leaders of the future, in Pickford, J.

(ed.) Financial Times Mastering Management 2.0, Financial Times Prentice Hall
(2001), p.297 Leadership is at its best when the vision is strategic, the voice
persuasive and the results tangible. In the study of leadership, an exact definition is
not essential but guiding concepts are needed. The concepts should be general
enough to apply to many situations, but specific enough to have tangible implications
for what we do.
Fullan discuss leadership in a culture of change and a points out that leadership is
the key to large-scale improvement. It is essential for leaders to understand the
change process and moral purpose without change will lead to moral martyrdom.
Leaders must be able to operate under complex uncertain circumstance.Fullan, M.,
leading in a culture of change, Jossey- Bass (2001)
There are many dimensions to leadership and many possible ways of describing
leadership style & leadership approaches they are as follows:
Autocratic Democratic
Leadership Leadership
Laissez- Faire Paternalistic

Leadership Leadership
Figure 2.1 demonstrate different leadership styles.

Traits Functional Behavioural
Approach. Approach. Approach.
Transformatio
Contingency
nal
Approach.
Approach.
Figure 2.2 gives you an idea about the different leadership approaches.
Mr. P.M Murty the managing director and CEO of Asian paints Pvt ltd use an
Autocratic style of leadership and Functional approach. An autocratic leadership
style is where the focus of power is with the manger and all interactions within the
group move towards the managers. The manger alone exercise decision making
and authority for rewards or punishments, Mullins, L., (2007) management and
Organisational Behaviour. 8th Ed. Pearson Education ltd.
The functional approach focuses attention on the functions of leadership, rather

than the personality of the leader, and how the leaders behaviour affects and is
affected by the group of followers. This approach to leadership to believes that the
skills of leadership can be learned and developed.
this type of leadership style even today Mr. P M Murtys goal and dreams are still
prominent within the organization and is still posted on the corporate website (Asian
paints, 2008). The CEO of Asian paints talked about his success of his vision he
lived it himself which gained him creditability as a leader. Mr. Murty has fortified to
wrestle his suppliers for the lowest price and, unlike his most competitors; he would
pass the savings on to customers. Mr. Murty was able to get his associates and
managers on board with the idea that his vision was the way to go; although it was
not easy. He (CEO) produces high quality and high quantity work for long periods of
time. The 3 states divisional heads like the trust they receive and respond with
cooperation, team spirit and high morale. He develops plans to help employees
evaluate their own performance, allows employees to aim for their goals and as well
as their organisational goals.

At the other end if we see in Bombay paints public ltd, Mr. Harnish Juthani the
managing director has adopted a Democratic leadership style and Traits
approach. The democratic manager keeps his or her employees informed about
everything that affects their work and shares decision making and problem solving
responsibilities. Bombay paint is extremely decentralized and most of the decisions
taken are by the Managing director and as well the Departmental heads of Bombay
paints. Democratic leadership is when decisions are made with consulting the
group members or the lower management. The Traits approach tells that leaders
are born not made. Traits approach consists of certain inherited characteristic or
personality traits which catches an attention on the person in the job. In relation to
Bombay paints this has been an ideal approach of the workers to work because
they find some characteristic or say personality in common, because of which the
workers are more motivated in working towards their targets and as well as towards
the organisational goals and objectives.
Critical Analysis:-
According to the author, the author feels that Asian paints Pvt ltd should adopt
Democratic leadership style with same functional approach used above because
there will be an ease working in the organisation as well as the workers will feel that
they will be part of the organisation, with that Asian paints will achieve two way
communication which allows feedback from the staff and participation will be
encouraged. The reason for using Democratic leadership style because Autocratic
leadership allows only one way communication which will demotivate staff who
wants to contribute and accept responsibilities and also some decision do not benefit
from staff input. It will be advisable that they should keeping using functional
approach because at least the workers will be reminded of doing the task allotted to
them in reaching the organisation objectives.
In comparison to Bombay paints public ltd: the author feels that the current
leadership style adopted by them is well suited to them because as we have seen
the current performance of the business, but the author feels that they should adopt
an Autocratic style of leadership because as the organisation on the smaller scale
in order to achieve the mission and the vision statement set by the directors.

B) Analyse how organisational theory underpins principles and practices of
organising and of management?
McGregor, D., (1987) The human Side of enterprise, Penguin p.6 says,
That every managerial act rests on assumptions, generalizations and hypotheses
that is to say, on theory. Our assumptions are frequently implicit, sometimes quite
unconscious, often conflicting: nevertheless, they determine our predictions that if we
do a, b will occur. Theory and practice are inseparable.
There are many types approaches to organisation, structure and management.
Figure 2.3 explains different types of approaches to organisation. Mullins, L.J., 2007 management
and Organisational Behaviour. 8th ed. Pearson education ltd.
Relating to the organisations which the author has chosen Asian paints uses a
classical approach in their organisation. The organisation is thought of in terms of
its purpose and formal structure and this approach aims to identify how methods of
working can improve the productivity, emphasis on the planning of work, the
technical requirements of the organisation, and principles of management and the
assumption of rational and logical behaviour.
There are two sub groupings of the classical approach:-
1) Scientific management. (F.W. Taylor)
2) Bureaucracy. (Max Weber)
Asian paints Pvt ltd adopts scientific management approach where in which it
describes the breaking down of work processes into discrete tasks to find the one
best way of performing each tasks in terms increased productivity or efficiency or by
financial rewards like money the only factor that could stimulate further effort of the
workers.
In Comparison with Bombay paints public ltd adopts System Approach, where
System approach describes an approach which attempts to reconcile the classical
and human relation approaches. Attention is focused on the total work of the
organisation and the interrelationships of structure and behaviour and the range of
variables within the organisation. Mullins, L., (2007.), Management and
Organisational Behaviour. 8th Ed. Pearson Education ltd.

Critical Analysis:-
According to the author Asian paints should not adopt Classical approach
because they do not take sufficient account of personality factors and limited control
over their work environment.
Then there is too much of managerial control will demotivate the worker to perform
any task set by the higher management, which will affect the goals and the targets of
the business. The de-skilling of workers might take place in order to improve the
efficiency and the productivity of the business. Therefore it tends to be a very rigid
structure.
In order to run the organisation properly they should for another alternative like
System approach where it is mixture of Classical and Human relation
approach. The reason for choosing this kind of approach because there will be
reduction in complexity, it helps in achieving specialisation in fields they are best at it,
it allows grouping of workers in performing a task and last Coordination between the
higher management and the employees of the business will be achieved.
In contrast Bombay paints public ltd: according to the author it is best suited with
System approach because the current performance of the business itself states that
they are well suited with this kind approach.
The annual turnover of the group in the year 2009-10 aggregated to over Rs. 2750
Million. With the help of management expertise, coupled with high level of
infrastructure and business synergies offered by the parent group, Bombay Paints
has become stronger with a compelling presence in the paint industry.
According to the author if Bombay paints moves to Contingency Theory they will
improve the existing performance. The reason being firstly there is no best way to
manage the organisation. The needs of an organization are better satisfied when it is
properly designed and the management style is appropriate both to the tasks
undertaken and the nature of the work group under different situations.

Q.3 a) Explain the different motivational theories and their application within
the workplace?
Stimpson, P., (2006) Business studies: AS & A levels 3 rd edition Chennai:

Chennai Micro Print (P) ltd says motivation is the desire to see a job done quickly
and well. Motivation results from the individuals requirement to achieve objectives
and to satisfy needs.
Motivation is a decision making process, through which the individual chooses

the desired outcomes and sets in motion the behaviour appropriate to them.

If the employees of Asian paints are motivated well then they will definitely perform
well and satisfactory results will be shown. If the staff are not motivated well then
they will be reluctant to work efficiently thus resulting in poor results and unsatisfied
customers. The table below shows the difference between motivated and
unmotivated staff of Asian paints:
Motivated Staff Unmotivated Staff

1) The labour turnover will decrease. 1) Increased absenteeism.
2) Low absenteeism rate. 2) Poor performance
3) High productivity. 3) labour turnover will increase
4) Advise for improvements. 4) Accidents will occur at workplace.
5) Workers are prepared to accept 5) There will be grievances within the
responsibilities. firm.
Figure 3.1 shows difference between the motivated and unmotivated staff.
There are many types of motivation theories but it is now classified into two sub
groups.
1) Content theories of Motivation which includes:-
Maslow's hierarchy Alderfer's modified

of needs. need hierarchy.
McClelland's need
Herzberg's two
for achievement
factor theory.
theory.
Figure 3.2 illustrates different types of content theories of motivation.

2) Process Theories which includes:-
Expectancy
Equity Theory.
theories
Attribution
Goal theory.
Theory.
Figure 3.3 demonstrates different types process theories.
The two motivational theories which Asian paints uses to motivate their staff are
of Content theories.
1. Maslow & the Hierarchy of needs
Abraham Maslow said that all motivation comes from a persons hierarchy of needs.
A need of a person is what motivates one to work hard to get it. Maslow had divided
human needs into different level, once he or she achieves that certain level he tries
to fulfil his demands of next level and this motivates a person to work hard.
According to Maslows theory the basic needs are the same for everybody, which
could be fulfilled in a specific order.
The hierarchy of needs may be shown as a series of steps but is usually displayed
in the form of a pyramid.
Figure 3.4 shows the hierarchy of needs.
2. Douglas Macgregor - Theory X and Theory Y:-
Douglas Macgregor said that many managers generalized the people that worked for
them. They would put all of their employees into either a theory x category or a

theory y category and then manage their company using the appropriate
management style.
Theory X: It consists of that all employees that are lazy, who dont have any
ambitious and have no interest in taking on extra responsibilities. Staff falling into this
theory will always resist change of any kind and are totally uninterested in the
success of their employer. Employees of this theory dont care about the company
they are just to be given orders to be followed.
Theory Y: It consists of employees that are interested in their work, who want to be
offered extra responsibilities and asked about their view on how things are run in the
company. Employees of this theory are prepared to accept change because they
appreciate that it's in everyone's best interests.
Q.3b) Assess the relationship between motivation theory and the practice of
management?
Asian paints use Maslow & hierarchy of needs theory to motivate its staff
by fulfilling their needs. If an individual or a group of workers meet all of their targets
and improve the quality of their work, they will be rewarded with a bonus. Asian
paints have three-month bonus periods in which if any of the states operation
branches makes a higher profit than what is predicted they will receive a bonus.
Asian paints not only tries to satisfy the basic needs of their employees but it also
fulfils their desires of higher levels like esteem and self actualization by giving gift
vouchers for hard work, staff discount scheme of 20%. Asian paints does cater its
employees with love/belonging needs, so to keep its staff happy it needs to provide
them with family gifts and make them feel a part of their family. Below is a typical
chart where in which it will show that how hierarchic levels in organisation is
being motivated by Maslows applications".
MASLOWS HEIRARCHIAL LEVELS.
Basic
LL: Rs 1500 per
Needs. hour Daily
wages.
ML: Rs 2000 per
hour salary.
HL: Rs 50000
above salary.
LL: 1000 workers in the Production
Safety department will be provided with gloves,
needs glasses, and aprons due to chemicals.
ML: 1000 employees in (admin, Mktg
department etc) which are given
(Permanent contracts.) the other 500
employees in supervisory department
which are (temporary contracts).
HL: 1500 employees at this level will

have Permanent contracts with
Mediclaims, Perks, And Life insurance.
etc
LL: This need will be fulfilled by

Social
going for a days picnic.
Needs.
ML & HL: They fulfilled this need by

having cricket match, also another
way they fulfil this needs is by
having informal meeting at
someone place.
LL: for the Lower level the esteem

Esteem needs will be to gain respect from
needs. the other 2 levels
ML: for the medium level, the

esteem needs might be to have
promotion to a higher post and
get Fringe benefits.
HL: for the higher level, the

esteem needs might be need for
recognition (awards) or gaining a
higher post like regional manager.
Etc
ML&HL: for ML their self

Self actualization will be having a
Actualization. house of his/her own, whereas for
HL it will be like owning the
company or getting maximum no.
of share in the company.
Figure 3.5 demonstrate different level of needs in the hierarchy.
Whereas in the case of Douglas Macgregor - Theory X and Theory Y,
Asian paints use different techniques for motivating theory X and Y for instance:-
Asian paints managers first collect information of Theory X employees through
performance management at the time of appraisal. The information helps the
managers to develop skills of their employees and it also helps them to recognize
when training is needed. With proper training the Theory X employees would be
motivate and they would start functioning as Theory Y employees and complete the
goals of the company by working hard for Asian paints.
The performance management helps Asian paints to collect data to make sure
targets are met and that all the workers are doing well. If targets are not met Asian
paints can set out courses of action to fix the problem for example giving the workers
more training.
For theory Y people, with the help of performance management Asian paints has
improved their service by employing more of Theory Y workers that work to their full
ability and they also try to improve the relationship between workers and the
company. The Theory Y employees along with the managers are a part of
performance management. They identify common goals, which are linked to the
goals of the organization.
Every 12 months an appraisal system is carried out at Asian paints. The Theory Y
employees are a part of the decision making system in which they discuss about
what is going well, what can be improved, how they would wish to develop and other
suggestions from them for the companys policies. These meetings are done by
manager of Asian paints for the employees and are confidential.

Q.4a) Describe the nature of groups and group behaviour within
organizations?
Mullin (2007) says the various behaviours of the team members must mesh in
order to achieve objectives. In order to work successfully in teams, in is important for
them to behave in a certain way. The workers must concentrate on their work well
and the specialists must give their collected knowledge for the job. The managers
should be able to solve the problems immediately, quickly and efficiently and some
people should see o it that all of the people above work in a team efficiently.
There are two main types of groups formed within the organisation.
1) Formal group: - are created to achieve specific organisational objectives and are
concerned with the co-ordination of work activities. For e.g. in Asian paints the formal
groups which are formed are the trade unions, relationship between the CEO and
the different States managers etc.
2) Informal groups: - are based more on personal relationship and agreement of

group members than on defined role relationships.
Types of groups in Asian paints Pvt ltd.
Small Groups.
Formal Informal Large groups.
Group Groups. Primary Groups.
s. Secondary
RISBT, MUMBAI, INDIA KEYUR DESAI - groups.Page 32
Coalitions
Membership
groups.
Reference
Comman Friendship
d Group. Group.
Task Interest
Groups Groups
Figure 4.1 gives you an idea about of how groups are formed. (www.scrib.com)
Formal groups:
The formal groups which are formed by the Asian paints are the command groups
and the nature of task. The command group signifies the level of hierarchy or say the
chain of command present in the hierarchy of the management that is under whom
the subordinates have to report. For e.g. the employees have to report to the
managers and then managers to the CEO.
Whereas task groups are formed on the basis of specific task cut out by the
management to the employees. For e.g. in Asian paints the uses of project teams or
say carrying out strategies to sort out some problems.
Informal groups:-
The informal groups which are formed by the Asian paints are the Grapevine takes
places where different members of staff from different departments comes together
and discuss the matters relating to the organisation news. For e.g. a junior staff have
a chat with other member of the organisation discussing about the matters in the
organisation relating to the rewards given to the different departments or removal of
the employees without being informed to the employees.
Forming
Storming
Norming
Perfoming

Figure 4.2 illustrates how informal groups are formed.
Q.4b) Investigate the factors that lead to effective teamwork and the influences
that threaten success?
Whether in the workplace, or in sports, or amongst members of a community,

effective teamwork can produce extraordinary results. However, that is easier said
than done, for, effective teamwork does not happen automatically. There are a
number of factors that are required to cohere together, working seamlessly, for an
effective team to develop and work.The factors that lead to effective teamwork in
Asian paints are as follows:- 1) Effective Teamwork is about Good Leadership:-
One of the most important aspects of effective teamwork is effective leadership. This
means that the team leader should have the skills to create and maintain a wxorking
culture that is positive. This helps to motivate and even inspire the team members to
get involved in creating an environment where there is a positive approach to work,
along with high levels of commitment. For e.g. in Asian Paints during investment
projects they follow team based working where in which employees from different
departments are selected for the project. During this project the project manager
follows a democratic style of leadership, where the project manager takes
ideas from the employees in the team which help the organisation to a better
solution. According to the author, he feels that by adopting Autocratic leadership
style will help the organisation to meet their deadlines on time (Project deadline) and
also by using this kind leadership will keep employees in mind that they need to
achieve the targets set by the management.
The other Factor of that will lead to effective teamwork is effective communication:- It
goes without saying that communication is a vital factor of interpersonal interaction,
and the very term teamwork represents interpersonal interaction. Hence, one of the
key aspects of effective teamwork is open communication, wherein it enables the
members of the team to articulate their feelings, express their plans, share their
ideas, and understand each others viewpoints. Asian paints Pvt ltd adopts integrated
network where it allows full two way communication between all the groups. It is a
typical brainstorming session where all the complex problems are solved with all
group members.
A

E B
D C
Figure 4.3 explains the integrated network.
Q.4c) Evaluate the impact of technology on team functioning within a given

organisation?
Technology is clearly a major influence on the pattern of group

operation and behaviour. Over the years Asian Paints Pvt ltd have drastically
changed and adopted the style of working according to the Market changes.
Asian Paints Pvt Ltd currently in 2009-10, the company has setup and stabilized
two centralized customer contact centres for improving servicing to its
dealers. The contact centres have been provided with advanced telephony solutions
with integration with companys backend applications. This has allowed the Asian
Paints Pvt ltd to standardize the order taking process and provide dealers with a
uniform, agile and improved experience of interacting with the company. This has
also given the capability to improve the speed of enabling new services being offered
to the dealers and also the end consumers. Also Asian Paints Pvt ltd are using the
method of CAD (Computer Aided Design) AND CAM (Computer Aided
Manufacturing) process for manufacturing their product. The process Cad
explains that the operator or instructor will feed in the data as per the customer
needs in the computer thereafter the Cam process comes into play which will take
place at the manufacturing base, where the data will be collected and will be finally
the person in charge at the manufacturing will give the command of final output
where the output will be processed and manufactured. There has been a lateral
change in the team functioning in Asian paints because of the impact of information
technology; there are new patterns of work organisation which affects the structure
of the Asian paints by the involvement of new hi-tech machines which reduces the
manpower and increase the productivity and efficiency of the business which indeed

has de-motivated the employees of Asian paints because of delayering the structure
of the organisation. At the other end there some benefits of technology:- Movement
away from large scale centralised organisation to smaller working units of Asian
paints have helped them in creating an environment in which workers have relate
more easily to each other by bring the lean and kaizen techniques into consideration.
Also the other benefit is that the task which is given by the management is done
much faster and less time is consumed on one particular task. And by using the CAD
& CAM method the perfection and non zero defected product is being manufactured
which has helped them to gain customer loyalty.
Conclusion:-
The two organisation being in the same industry are shown how do they differ. The
study of organisational structure and culture shows how does it effect on the
business performance.
Both the organisations clearly demonstrate how they differ from each other, Bombay
paints public ltd is an informal organisation with wide and flat span of control
whereas Asian Paints Pvt ltd is a formal organisation with tall and narrow span of
control.
The culture of Bombay paints publc ltd is role orientated culture where every
employee focuses only on the role given to them by the management. whereas
Asian paints Pvt ltd is People culture where socializing between the workers as well
as thhe consumers.The individual at work has led to effectiveness and success. For
example the workers/managers in Bombay paints they try and give their best effort
so that not only the firm gains but also the individuals get their reward.
The leadership styles adopted by Bombay paints and Asian paints are democratic
and autocratic respectively. However Asian Paints motivates by the different levels of
needs in the hierarchy. Both the firms should give importance to human needs as
well that is social needs so that the employees will feel committed and motivated and
will work more efficiently.

There are formal groups as well as informal formed that exist at Asian paints.
Informal groups can have a more significant effect within Asian paints as they can
challenge the status quo as well as provide more social functions .
To conclude it is evident from this study that all organisation are influenced by
internal factors that are dependant upon the structure, leadership and the culture of
the organisation. It is also clear that a role of an individual in the organisation is
critical. Providing a positive culture through clear leadership and valuing the
employees can significantly affect the success of the organisation .
BIBLIOGRAPHY:-
1. Useem, M., How to Groom Leaders of the future, in Pickford, J. (ed.)

Financial Times Mastering Management 2.0, Financial Times Prentice Hall
(2001),
2. Stimpson, P.S., 2006. Business Studies. Chennai: Chennai Micro Print (P)
ltd.
3. Mullins, L.J., 2007. Management and Organisational Behaviour. 8 th ed.
Pearson Education ltd.
4. Fullan, M., leading in a culture of change, Jossey- Bass (2001)
5. Barara. Jocelyn Fleming Organisational change (2006) 3 rd ed. Pearson
education limited UK.
6. http://www.asianpaints.com
7. http://www.bombaypaints.com
8. http://www.scrib.com/asianpaints/#1/groupsatwork/.com
9. http://www.informationrain.com/maslows_hierarchy_of_needssvg.png&imgre
furl.com

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RIMS INTERNATIONAL SCHOOL OF BUSINESS

BBA FIRST YEAR

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 1

1. This Assignment is designed to help you achieve a Merit or Distinction.

Please follow the instructions below:

1. Start each answer from a new page

The correct format to answer each question (Task) is as follows:

LECTURER Ms. Priya Chowdhury VERIFIER Ms. Reena Cliffton

HAND OUT DATE 15.10.10 SUBMISSION 25.11.10

STUDENT ID: TERM Dec10

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 2

1 Explore organizational Compare and contrast different organizational

Analyse the relationship between an

2 Examine different Describe different leadership styles and the

4 Demonstrate an Describe the nature of groups and group

Evaluate the impact of technology on team

MERIT Learners Evidence Shows COMMENTS/FEEDBACK

- Relevant theories and techniques

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 3

- A range of methods of presentation

DISTINCTION Learners Evidence Shows COMMENTS/FEEDBACK

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 4

Grade Given by Tutor:

Merit Tutor Signature:Date:.

Student Signature: Date:

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 5

Organisations and Behaviour

Course BTEC Higher Nationals (HNC) Business Studies

Unit 3: Organisations and Behaviour

Unit Individual Assessment

-The colleges regulations concerning cheating, collusion and plagiarism apply to

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 6

1. Organisational structure and culture

Compare and contrast different organizational structures and culture

2. Approaches to management and leadership

3. The relationship between motivational theories

4. Demonstrate an understanding of working with others ,

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 7

List of Diagrams and Charts:

1.1 Explain different kinds of structure. 12

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 8

Organisational behaviour is a field dedicated to better understanding and managing

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 9

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 10

1 a) Compare and Contrast different organisational structure and culture?

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 11

There are many different types of structures like as follows:-

Tall hierarchical By Function

By Product By Area By Matrix

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 12

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 13

Chief GM DGM DGM DGM DGM GM Planning/MIS/

Figure 1.2 Bombay Paints organisational structure. (Field research)

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 14

CEO OF ASIAN PAINTS

State State State

Figure 1.3 shows the organisation structure of Asian paints. (wwww.asianpaint.com)

In contrast to 1.3 it shows that Asian paints, as a national organisation, have

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 15

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 16

Organisational culture can be viewed as a system of shared values (about what is

Atkinson et al (1993) an introduction to psychology 11 th in LAURIE J. MULLINS

RISBT, MUMBAI, INDIA KEYUR DESAI - Page 17