Evolution of Management Practices and Organizational Behavior: Insights from UK Businesses
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Introduction: Evolution of Management Practices and Organizational Behavior: Insights from UK Businesses
An organization is a social institution made up of individuals or groups that cooperate to accomplish a common objective. It can come in a variety of shapes, including companies, nonprofits, governmental groups, academic institutions, and more.
This study of organizational behavior focuses on how people engage with one another and how their interactions affect and at last how well an organization performs. Motivation, communication, leadership, decision-making, power and influence, teamwork, and corporate culture are some of the subjects covered in this report (Smircich, 2017). Organization and management are interdependent and closely related. An organization is a social entity that has a shared goal and is made up of individuals or groups that collaborate to accomplish that goal. Management is the process of planning, organizing, directing, and controlling the resources of an organization to achieve its goals and objectives. For instance, the UK-based business John Lewis & Partners prioritizes inclusivity and collaboration significantly. To foster a positive work atmosphere, it provides a variety of benefits to support its workers, such as flexible work schedules, work arrangements, mental health resources, and many more.
The purpose of the essay is to develop an understanding about the organizational behavior. The essay's main point’s center is evolving management strategies and current concepts and theories of organizational behavior (Argyris, 2017). The essay also discusses organizational culture, personality and individual differences, as well as theories of motivation. The essay also evaluates managing teams and groups, variety in the workforce, and globalization. The idea of organizations and organizational behaviors are completely evaluated in the essay.
Section 1: Changing management practices from the early 20th century
Early 20th-century management techniques were characterized by science management and administrative management. By analyzing and streamlining work processes which distinctly outlining the roles and responsibilities of managers within companies, these practices aimed to increase efficiency and productivity in the workplace. As economic, social and technological circumstances changed over time, so did management methods.
Since the beginning of the 20th century, management practices have undergone several major changes, including a shift from an emphasis on productivity and efficiency to one on creativity, innovation, and agility (Child, 2015). The rise of the knowledge-based economy, the emergence of the digital economy, and the necessity for businesses to be able to rapidly adapt to shifting market conditions have all contributed to this shift. Numerous businesses have adopted techniques like open innovation, design thinking, and agile management to support creativity and innovation. The increased focus on employee engagement and well-being is another shift. Early management techniques were criticized for not recognizing the unique requirements and motivations of employees and for treating them like interchangeable components in a machine. Many businesses today understand how critical it is to foster an atmosphere at work that promotes employee happiness, engagement and well-being.
This covers procedures like flexible work schedules, employee recognition schemes, and well-being programs (Cabral, 2017). Changes in management methods have also been brought about by globalization and the expanding diversity of the workforce. It has become more crucial for managers to be able to communicate successfully with people from diverse backgrounds and to comprehend the Cultural distinctions that can affect business decisions as more organizations operate across borders and hire people from a variety of cultural backgrounds. Organizations are increasingly implementing cross-cultural training, diversity and inclusion efforts, and global leadership development programs. Management techniques have also been significantly impacted by technology. Organizational communication, teamwork, and information sharing have all changed as a result of digital transformation. New management techniques like managing virtual teams, working remotely, and using digital communication tools have emerged as a result of this. Technology has also made it possible to gather and evaluate enormous amounts of data, which has sparked the growth of techniques like data-driven decision-making and predictive analytics. Last but not least, management methods have changed the sustainability and social responsibility which have gained more significance. Managers are expected to take environmental sustainability and social responsibility into account when making decisions because there is growing pressure on businesses to do so. Examples of management techniques that have developed in reaction to these pressures include sustainable supply chain management, CSR initiatives, and environmental sustainability programs (Baum and Amburgey, 2017).
For example, in the 20th century, Unilever, a multinational consumer goods corporation with headquarters in the UK, operated as a highly centralized organization with a strict hierarchy and focused top-down decision-making process. However, the business started to move towards a more decentralized and agile management model in the early 2000s, placing more of an emphasis on empowering local teams and encouraging innovation. By taking an example Tesco, a large international vendor of groceries and other goods was a conventional, hierarchical company that prioritized profit maximization and cost-cutting in the 1990s. However, the business experienced a significant change in the early 2000s as it adopted a customer-centric strategy and concentrated on enhancing the shopping experience for its clients.
As a result, since the beginning of the 20th century, management practices have changed significantly in response to shifting economic, social and technological conditions. Modern practices place a greater emphasis on creativity, innovation, employee involvement, diversity and inclusion, technology and sustainability than earlier ones, which were more concerned with productivity and efficiency (Cascio and Montealegre, 2016). These modifications have influenced contemporary management theory and practice.
Section 2: Current theories, concepts, and evidence in organizational behavior
The study of organizational behavior is concerned with understanding and regulating human conduct within organizations. There are several current theories, concepts, and evidence in organizational behaviors that are shaping the field today:
Social identity theory: According to the social identity theory, a person's self-concept is heavily influenced by the groups they belong to, such as their organization, gender, race, or nationality. This theory explains how individuals perceive and act concerning various social groups and how these perceptions and behaviors can impact business outcomes like employee happiness, retention, and productivity (Buchanan and Huczynski, 2019).
Emotional intelligence: Emotional intelligence is the capacity to comprehend, regulate, and control one's feelings as well as those of others. According to research, workers' emotional intelligence can be developed through training programs. Emotional intelligence has also been shown to be a predictor of leadership efficacy and job performance.
Transformational leadership: Leadership that inspires and motivates followers to realize their full potential is known as transformational leadership, and it is linked to higher levels of worker dedication, performance, and happiness (Patil, 2022). The charisma, vision, and capacity to foster a healthy corporate culture are hallmarks of transformational leaders.
Organizational justice: Organizational justice refers to how equitable it is to believe that organizational policies and practices are, and it can include distributive justice (fairness in the way rewards are given out), procedural justice (fairness in the way decisions are made), and interactional justice (fairness in interpersonal treatment). According to research, employee satisfaction, trust, and loyalty are all influenced by how employees perceive corporate justice.
Work-life balance: The idea of work-life balance has grown in significance as job demands have increased (King and Lawley 2016). This concept refers to the balance between work and non-work roles and responsibilities and involves factors such as flexible work arrangements, time off, and support for caregiving responsibilities. Work-life balance has been linked to employee well-being, employment satisfaction, and retention, according to research.
Diversity and inclusion: Diversity and inclusion refer to the acceptance of individual variations in the workplace, which can include things like gender, race, ethnicity, and age. Diverse teams can be more creative and productive than homogenous ones, according to research. However, hiring a diverse workforce is only one step in establishing an inclusive workplace (Bratton, 2020).
Psychological safety: The beliefs that one can express themselves, take chances, and voice out without worrying about the repercussions. According to research, psychological safety is crucial for fostering a climate of open communication and learning in organizations and is linked to higher levels of worker engagement, creativity, and performance.
For instance, the department store chain John Lewis Partnership uses a distinctive employee-owned business strategy. The stakeholder theory of organizational behavior, which the John Lewis Partnership adheres to, asserts that businesses must take into account the wants and interests of all of their stakeholders, not just their shareholders (Wilson, 2018).
Section 3: Personality, individual differences, and the relevance of different motivation theories and their applications
Individual personality traits and differences play a significant role in organizational behavior. The unique collection of characteristics, behaviors and thought processes that make up a person's personality is referred to as their personality. Individual differences are the differences between individuals in a wide range of characteristics, including personality traits, cognitive abilities, learning preferences and values. These variations significantly affect a person's behavior, attitudes, and effectiveness at work. An internal condition called motivation directs behavior toward a specific objective or result. Different variables, such as personality, individual differences, social and cultural factors, and environmental factors, all have an impact on motivation (Robbins, et.al 2017). Herzberg's two-factor theory, Maslow's hierarchy of needs, and the Self-Determination Theory are a few of the motivation theories that have been put forth.References
According to Maslow's hierarchy of needs theory,
Human requirements can be classified into a hierarchy. Before pursuing higher-level needs, such as self-esteem and self-actualization, a person must first try to meet the needs at the lower levels, such as physiological and safety needs. To comprehend employees' motivation and behavior, this idea has been used in organizational behavior. Employers can, for instance, provide employees with a secure and comfortable work atmosphere, fair compensation, and benefits to meet their basic requirements (Kondalkar, 2020).
According to Herzberg's two-factor theory,
Hygiene factors and motivators are two sets of factors that have an impact on both work satisfaction and dissatisfaction. While motivators like recognition and advancement opportunities foster job happiness, hygiene factors like working conditions and pay to prevent dissatisfaction. Designing jobs that are fulfilling and satisfying for employees has been done using this idea (Osabiya, 2015). To inspire employees, employers can offer them challenging work, chances for advancement, and recognition. For instance, John Lewis Partnership adheres to Herzberg's two-factor theory of motivation, which postulates that motivators and sanitation factors are the two categories of factors that affect employee motivation.
According to the Self-Determination Theory (SDT),
People naturally desire autonomy, competence, and relatedness in their activities. According to SDT, these three fundamental psychological requirements must be met for people to feel intrinsically motivated, to be happy, and to advance personally. This idea has been used in organizational behavior to enhance performance and encourage intrinsic motivation. To meet these needs, employers can offer chances for employees to make choices, acquire skills, and collaborate with others (Sommestad, et.al 2015). For example, Virgin Group, which employs the self-determination theory of motivation, places a high value on empowering its staff members, offering chances for skill development and growth and encouraging a feeling of community and cooperation.
Motivation theories are relevant to organizational behavior because they can describe and forecast how people will act in the workplace. These theories have real-world applications in a variety of industries, including management, organizational growth, and human resources. For instance, in human resources, compensation plans, training courses, and performance evaluation procedures that support employee involvement and motivation are designed using motivation theories (Badubi, 2017). Designing jobs, work settings, and policies that encourage employee satisfaction, engagement, and efficiency makes use of motivation theories in management. Motivation theories are applied in corporate development to create interventions that enhance employee engagement, communication, and collaboration. As a result, motivation theories offer essential insights into the factors that motivate human behavior at work, and personality and individual differences are significant in organizational behavior. These theories can be used to create interventions and strategies that support employee motivation, engagement, and productivity in a variety of disciplines, including human resources, management, and organizational development. Employers can design work environments that foster employee satisfaction, well-being, and success by comprehending personality types and individual differences and putting motivation theories into practice (Lee and Raschke, 2016).
Section 4: Influences of organizational culture and structure
Two key elements that can have a big effect on an organization's performance and success are its organizational culture and structure. Although they are frequently linked, each has a unique impact on the operations, strategy, and personnel of an organization. The shared values, attitudes, and behaviors that influence how staff members interact with one another and handle their jobs are referred to as organizational culture (Batras, et.al 2016). It covers an organization's unspoken policies and practices, such as how decisions are made, how staff members are praised and acknowledged, and how internal communications operate. Numerous elements, such as the organization's purpose and values, the leadership style of top management, and the general work environment, can have an impact on organizational culture.
Employee behavior is one of the areas where company culture has the biggest impact (Pierce and Aguinis, 2015). Employees who work in an environment with a powerful, positive culture may feel more motivated and engaged. They might be more inclined to take initiative, work cooperatively with others, and go above and beyond the call of duty. In contrast, a bad or toxic culture can lead to a high rate of employee turnover, low employee morale, and poor performance. An organization's culture can affect how it communicates and makes decisions. Employees may be encouraged to share their thoughts and feedback in a culture that values open communication and transparency, for instance, leading to better decision-making. However, a culture that emphasizes hierarchy and top-down decision-making may deter staff members from coming out. The way a company approaches innovation may also be influenced by organizational culture. Innovative approaches and solutions can result from a mindset that encourages experimentation, taking calculated risks, and being creative (Smircich, 2017). A society that is resistant to change or is preoccupied with upholding the status quo, on the other hand, might hinder innovation and creativity.
On the other side, organizational structure describes the formal hierarchy, positions, and reporting relationships within an organization. It includes the division of a company into departments or teams, the transfer of power, and the distribution of decision-making authority. The size of the company, its industry or sector, and its strategy can all have an impact on the organizational structure. Communication and decision-making are two areas where an organizational structure has a major impact. In a hierarchical structure, communication usually occurs from top to bottom, with the highest levels of management making the final decisions (Verhoef, et.al 2021). This might drag down decision-making and prevent lower-level workers from contributing. A more decentralized structure, on the other hand, can promote greater collaboration and feedback from an employee at all levels, resulting in effective decision-making. The way a company approaches innovation may also be influenced by organizational structure. Efficiency and stability may be given precedence in a bureaucratic, hierarchical system over innovation and risk-taking. A structure that is more adaptable and flexible, on the other hand, might be better adapted to encourage innovation and originality. Therefore, employee retention and happiness may be impacted by organizational structure. A structure that is too rigid or bureaucratic may lead to employees feeling like they have limited chances for development or advancement. In comparison, a structure that is more adaptable and promotes cross-functional cooperation might give employees more chances to gain new knowledge and assume more responsibility (Riggio, 2017).
Unilever, for instance, uses a matrix organizational structure with a combination of functional and geographic divisions to facilitate effective decision-making and conversation across various communication channels. The business has a culture that supports creativity, teamwork, and ongoing learning and growth (Wooten and Hoffman, 2017).
Another example can be Burberry, the four major organizational divisions of the luxury fashion company Burberry have a culture that values innovation, creativity, and teamwork within the workplace.
Section 5: Concept of managing groups and teams, workforce diversity, and globalization
The concept of managing groups and teams has become increasingly important in today's workplace. Cross-functional teams and virtual teams are being used more frequently by companies as they become more global and complex to accomplish their objectives. It takes a distinct set of abilities and approaches to manage these teams than it does to manage a single employee (Willis, et.al 2016). Managing workforce diversity is one of the biggest obstacles in managing teams and groups. Managers must be able to negotiate various cultural norms and communication styles as organizations become more diverse to foster an inclusive environment where everyone feels valued and heard. This might entail educating staff members about cultural sensitivity and awareness as well as offering opportunities for them to express their opinions and experiences.
Globalization is a crucial factor to take into account when managing teams and organizations. Organizations need to be able to handle teams across various time zones, languages, and cultural backgrounds as they enter new markets. This may entail developing distinct procedures and rules for how teams should collaborate, as well as utilizing technology to promote communication and collaboration. The management of teams and organizations also requires effective communication. Clear objectives and expectations must be communicated by managers, and they must also regularly offer performance feedback (Tien, 2019). Additionally, they must be able to promote open and honest feedback among team members and enable communication between them. Another crucial component of handling teams and groups is leadership.
To foster a sense of shared dedication and purpose among team members, managers must be able to inspire and motivate their employees. They must also be able to inspire the team and show the members how their contributions fall into the overall scheme of things. Focusing on cooperation and coordination is also necessary for managing groups and teams. Managers must be able to foster a culture where team members are free to express their opinions and ideas while collaborating to achieve a shared objective. This may entail providing resources and assistance for teamwork as well as chances for collaboration and team building. Lastly, managing teams and groups necessitates a results-oriented approach. Clear aims and objectives must be established by managers, and team members must be held accountable for their work. To make sure they are succeeding in their objectives, they must also be able to assess the team's performance and make necessary changes.
For instance, HSBC, a multinational banking and financial services business, employs people from a variety of cultural and racial backgrounds and competes in a highly dynamic and competitive global market (Lai and Chen, 2019). The way HSBC manages its employees is also evident in how it conducts business internationally. Numerous employee resource organizations within the business, including the LGBT+ Network and the Cultural Diversity Network, support and advance diversity and inclusion in the workplace. The company's decentralized structure enables it to successfully compete in various marketplaces and adjust to regional norms and laws. In addition, HSBC has a strong central management team that establishes strategic guidance and guarantees uniformity and coherence.
For this reason, in today's complex and international workplace, managing groups and teams is a critical talent for managers. Focusing on workforce diversity, globalization, effective communication, leadership, cooperation, and results is necessary for the effective management of groups and teams. Managers can build high-performing teams that can accomplish their objectives and promote corporate success by refining these skills and techniques.
Section 6: Concept of learning organizations
In the fast-paced, complex business world of today, the idea of learning organizations has gained more and more significance (Sah and Dadwal, 2018). A commitment to learning and development enables a learning organization to constantly adapt and enhance its operations, goods, and services. Employees are encouraged to share their knowledge, participate in ongoing learning and innovation, and cooperate to accomplish shared objectives in a learning company. A culture of continuous learning is one of the key traits of a learning company. Employees are encouraged to take charge of their learning and development in a learning company, and they are provided with the tools and resources they need to do so. This might entail having access to workshops, training courses, mentoring relationships, and other educational possibilities. By modeling a commitment to learning, encouraging feedback, and recognizing and rewarding staff members who exhibit a commitment to learning and growth, leaders in learning companies can also significantly contribute to the development of a culture of continuous learning (Chamorro-Premuzic, 2016).
A focus on innovation and experimentation is another crucial trait of a learning company. Learning organizations are aware that remaining one step ahead of the competition and adjusting to shifting market conditions depend on innovation. They urge staff members to try out novel concepts and strategies and to take lessons from both successes and failures. Failure is viewed as a chance for learning and development rather than an excuse for blame or punishment in a learning company(Punt, et.al 2016). Another crucial component of learning groups is collaboration. Employee collaboration across departments and functions is promoted in a learning company to meet shared objectives. This might entail dismantling established silos and promoting open dialogue and knowledge exchange. Employees can use their combined knowledge and skill to solve challenging issues by cooperating. Data and decision-making supported by evidence are also valued in a learning company.
Decisions made in a learning company are not influenced by gut feeling or personal opinion, but rather by objective data and analysis. This might entail the use of data to pinpoint areas in need of growth, track development, and assess the effects of fresh ideas. Data is another tool leaders in learning organizations use to assess their success and spot areas for improvement. A learning group is also dedicated to ongoing development. Employees are encouraged to look for opportunities for improvement and to take charge of the change process in a learning company (Khan, et.al 2019). This could entail finding areas where procedures can be simplified or improved, getting input from partners or customers, or putting new technologies or strategies into practice. By establishing clear objectives and metrics, offering resources and support for improvement projects, and praising and rewarding staff for their contributions to the improvement process, leaders in learning organizations also play a critical role in fostering continuous improvement.
In conclusion, A culture of continuous learning, an emphasis on innovation and experimentation, collaboration, evidence-based decision-making, and a dedication to continuous growth are characteristics of learning companies. Organizations can develop the flexibility, resiliency, and ingenuity necessary to thrive in the complex and fast-paced business environment of today by creating a learning organization culture.
Conclusion
The essay concludes that, organizational culture and structure are two crucial elements that can greatly affect the performance and success of a company despite their similarities; they each have a unique impact on the employees, operations, and strategy of a company. When making decisions that affect the company and its employees, leaders must carefully consider both factors because they can have a significant impact on employee behavior, communication and decision-making, innovation, and employee happiness and retention. Organizations can establish an environment that fosters development, innovation, and success by fostering a strong, positive culture and a flexible, adaptable structure.
Companies in the UK exhibit a wide range of organizational conduct and management techniques, which is indicative of the nation's dynamic business environment. While Burberry places a strong emphasis on innovation and digital strategy, businesses like Unilever and John Lewis Partnership value sustainability, employee empowerment, and collaboration. Contingency theory, which contends that there is no one-size-fits-all management strategy, and resource reliance theory, which emphasizes how organizations depend on outside resources to operate, are examples of current organizational behavior theories. Understanding employee behavior also benefits from knowing motivation theories like Herzberg's two-factor theory and Maslow's hierarchy of needs. Personality and individual differences play a significant role in organizational behavior, and businesses must think carefully about how to successfully handle a diverse workforce. As a result, UK businesses display a variety of organizational behavior and management techniques, representing the diversity of the nation's commercial environment. To stay competitive and successful in the global marketplace, these businesses must take into account current theories, theories of motivation, personality and individual differences, organizational structure, and workforce diversity.
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