Assignment title REPORT 1 and REPORT 2
Purpose of this assignment
Students must demonstrate an understanding of organisational structure, organisational culture, different leadership styles, key motivation theories and the contribution of individuals and teams in the effective operation of two contrasting organisations.
You have been instructed to write two reports (Task 1 and Task 2, respectively), both of which examine specific elements of organisations and culture, as covered by the Unit 3 assignment. You are required to apply the relevant theories you have identified to the two organisations featured in the Unit 3 Case Study, namely: City College and Enterprise Rent-a-Car.
• Task 1 addresses organisational structure and organisational culture.
• Taskt 2 covers leadership, motivation, team working and the benefits of technology
CASE STUDY for Unit 3
Company A: City College
City College was formed in 2002 as a private college in North West London. It is now part of City group plc. In 2012 city group had an estimated 2.5 million in revenue and employed over 200 staff. In 2010 City group was acquired by new owner ship through a private investor, named Mr Wakefield. City group PLC owns 19% of the private college market. The College is run by the Principal, Mr Wakefield.
City College operational functions can be split into three Departments:
• Teaching Department: Staff are involved with producing and delivering higher education courses that are designed to be inclusive to all learners from diverse backgrounds.
• Human Resource Department: This department is concerned with developing and maintaining the college’s workforce. City Colleges encourages employees to come up with good ideas, so these can be discussed, adapted and implemented throughout the business.
• Administration Department: responsible for student enrolment, publication of documents and instructional leaflets, finance and property management.
Organisations like City College are no longer mere small private colleges and provide many learning opportunities for many students. They are organisations that have serious objectives tied to a commitment to achieving them. City College is also dedicated to working with the local community. Working in a busy college environment like City College is varied. There are many departments that work together, e.g. an admin assistant working with the Human resource manager, who in turn works with a production controller.
Company B: Enterprise Rent-a-Car
Enterprise Rent-A-Car (Enterprise) employs more than 75,000 employees and operates a fleet of cars exceeding one million vehicles worldwide. It has become one of the foremost car-hire companies and is the largest purchaser of cars in the world. Jack Taylor founded the company in St Louis in 1957. The owner had a simple belief: ‘Take care of your customers and employees first and profits will follow.’
This case study focuses on leadership within Enterprise. It shows how its managers use a range of management and leadership styles to support Enterprise’s focus on customers.
• Enterprise does not sell a product. It provides a service – the use of a car. To deliver great service Enterprise needs well-trained and motivated staff. As the company grows, it opens new local offices and creates new opportunities for employees.
• Customers expect to be treated in a particular way by a service-orientated business. Enterprise uses its Enterprise Service Quality Index (ESQi) to measure the quality of service it provides. Satisfied customers will come back and give repeat business. They may also recommend the service to others.
• This leads to growth of the business and greater profitability.
Leaders are also managers. For example, an Enterprise General Manager leads a regional group of City Managers. City Managers are leaders of their front-line management employees. Andy Taylor, the current Chairman and Chief Executive Officer (CEO) of Enterprise, was a manager for his father Jack Taylor. He carried out the processes and systems his father set up. Today, Andy leads and manages the business. There are many different management styles. These styles influence how leaders communicate with employees. For example, Enterprise operates an ‘open door’ policy. This enables everybody within the organisation to have direct contact with senior managers.
Enterprise employs motivated individuals with the potential to become good leaders. When recruiting, Enterprise looks for leadership qualities in candidates. It considers leadership to be a core competence. It recognises that the skills and capabilities to lead others are essential for business growth. Recruits learn how to run parts of the business. The focus is on making decisions that improve customer service. General Managers are empowered to make decisions covering a region. Branch managers have the authority to deliver good customer service locally. Each local branch operates like a small business. Managers make decisions that support the needs of their customers. Front-line management trainees are encouraged to use the best management style to suit different customers. An autocratic style of leadership is when a leader makes a decision alone. The leader conveys the decision to staff and they have to work within the scope of that decision. For example, in order to deliver good customer service, managers instruct all staff to follow Enterprise’s guidelines for dealing with customers.
Management is about getting things done. Leadership is about achieving goals by creating a direction for a business and inspiring employees to take initiative and make the right decisions. Enterprise managers need the skills to motivate, lead and influence others. Enterprise aims to employ people who can take on a leadership role and help to grow the business for the longer term. Its management and training programmes help to provide employees with the skills necessary to lead others. This case study illustrates that within a business, there are leaders at different levels within the hierarchy. Depending upon the circumstances, leaders will use different leadership styles. By developing leaders who are able to make decisions at a local level, Enterprise can respond more closely to customer needs within a competitive service industry. Its high levels of customer service provide it with a competitive advantage over its rivals.
Douglas McGregor in 1960 used the terms Theory X and Theory Y to identify two very different forms of management style: • A Theory X manager tells employees what to do and supervises their work. This involves using strict controls within the business. This reflects an autocratic style. • In contrast, a Theory Y manager believes employees want to do well. The manager provides individuals with the opportunity to take control of their work. They can contribute towards solving a problem or issue. This helps motivate them to do better. Enterprise needs its employees to use their skills to deliver high levels of customer service. This means an autocratic management style is inappropriate in daily routines. A branch manager sets the standards for the team but encourages team members to be flexible and responsive to each customer. This ensures that customers get the service they expect. However, there are many examples of autocratic style in use at Enterprise. These relate to issues which affect the whole organisation or which are central to the business. For example: • Andy Taylor insisted all branches use ESQi, the customer satisfaction measure, because it met the business objective.
This independent approach enables Enterprise employees to have ownership of many of their activities. This acts as a motivator for staff. In 1943, Abraham Maslow, looking at motivation, identified a hierarchy of needs for individual employees. Everyone has needs for water, food, warmth and safety. These have to be met before a person can move on to fulfilling their higher needs. When employees are empowered to make decisions, this improves their sense of worth and self-esteem. It also helps them to use creative skills within their role and motivates them to perform better. Making decisions at a local level helps to meet customers’ needs and enables individuals to take a pride in their job. This recognises that employees are motivated by factors other than financial ones. These include praise, recognition or having more responsibility. Enterprise’s emphasis is on satisfying customers to grow the business. It also rewards hard work. To increase motivation, employees who achieve high levels of customer satisfaction have the opportunity of promotion. In addition, staff who performs well or who make the biggest improvement are recognised through the Enterprise newsletter or by membership of the Enterprise ‘Elite Club’. This reinforces self-esteem.
Task 1: LO1 (AC1.1, AC1.2, AC1.3)
Prepare a written report in which the learner is required to understand the relationship between organisational structure and culture. The report must address the following elements:
a) Compare and contrast different organisational structures and culture for two different organisations, City College and Enterprise Car Rental (read the “Case Study”, below). To achieve this task learners must be able to differentiate between tall and flat structures, long and short chains of command, and broad and narrow breadths of control. Learners must also be able to identify different types of organisational culture (reference Charles Handy and his four models) and be able to describe the three elements of Edgar Schein’s Iceberg Model. (AC 1.1)
b) Explain the relationship between an organisation’s structure and culture and the effects that both culture and structure haves on an organisation’s performance. Citing examples from the case study identify the effects that both culture and structure have on the performance of City College and Enterprise. (AC 1.2)
c) Evaluate the various factors that might influence the way individuals behave at work. Using different examples from the case study, discuss what you would identify as the influencing factors in the way staff at both City College and Enterprise behave, and assess the relative importance, to each organisation, of the factors you have identified. (AC 1.3)
Task 2: LO2 (AC2.1, AC2.2, AC2.3), LO3 (AC 3.1, AC 3.2, AC 3.3), LO4 (AC 4.1, AC 4.2, AC 4.3)
Write a report which identifies different leadership styles, motivation theories and the effectiveness of teamwork in organisations. Using information in the case study, compare how City College and Enterprise may use these factors to manage their respective organisations.
a) Compare the effectiveness of different leadership styles and consider how each style would impact on the two organisations.(AC 2.1)
b) Explain how organisational theory is linked to the style of management which is most likely to be practised in the two organisations.(AC 2.2)
c) From your understanding of the different approaches to management and leadership theories, explain which of these theories you think that both City and Enterprise have adopted. Evaluate the different approaches used by City College and Enterprise. You may include examples from other organisations to support your evaluation.(AC 2.3)
d) Discuss the impact that different leadership styles are likely to have on the behaviour of staff at City College and Enterprise. (AC 3.1)
e) Compare the application of the different motivational theories that City College and Enterprise might adopt and discuss what effect this would have on their respective workforces. (AC 3.2)
f) Evaluate how the management of both City College and Enterprise’s workforce could apply these motivation theories and practices and what, if any, benefits have the companies derived from their chosen motivation practices (AC 3.3)
g) Explain the nature of groups and group behaviour within the workforces of City College and Enterprise.
h) Using the case study, identify the various factors that could make a team effective and also those factors that may be likely to threaten the success and effectiveness of a team. (AC 4.2)
i) Explain the role of technology in the success of a business that you know. In view of your argument, evaluate the impact of technology on the performance of City College and Enterprise. (AC 4.3)
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