Explain Comparison of Capco’s Structure and Culture with another organization.
The organization structure is an element that dictates the relationship of roles in an organization, and thereof, how does each of the participants of a company functions. It basically determines how the roles, power and responsibilities are assigned, controlled, and coordinated and how the information is exchanged at the various levels of the management. In the same way, Organizational Culture of the workplace also goes a long way in promoting healthy competition at the workplace (Business Case Studies LLP, 2016). As the organizational culture of Capco is innovative and entrepreneurial, hence its structure is non-hierarchical, team-driven and flat. In this flat structure, there occur a number of matrix structures for specific projects. This allotment is temporary and on completion of the project the employee moves to a different project assisting an entirely different team. The culture of the company is specifically built to foster flexibility and creativity and at the same time promote individuality, integrity and freedom of expressions among the employees (Corkindale, 2011).
Albridge solutions, one of the toughest competitors of the Capco, has an entirely different organizational structure, but the culture bears a number of similarities (Inc., 2014). The company, on the contrary, follows a hierarchical structure in which the Contact Center reports to the Managing Director and Senior Vice President, which in turn report specifications to the higher authorities including the CEO and the President. Such a hierarchical structure has many layers and a long chain of command from the top to the bottom layer. As in this structure, there is a narrow span of control; hence this type of tall structure ensured effective control of the organization. However, the culture of Albridge is exactly same to that of the Capco as it also considers its employees as the major assets. Like the former company, it also has an open door policy that carries out a number of amendments on a regular basis to listen and address to the employees’ concerns (MSG Experts, 2016). The only difference that is noteworthy to be pointed is that the company has devised its strategies in such a way that the chances of risk-taking are minimal and hence innovations are not readily welcomed by the company members. Hence the culture of the Capco could be defined as that of Adhocracy type while that of Albridge could be of Clan type.
As Capco is having a flat, non-hierarchical structure, hence the decision making power lies within all the participants of the company in an unbiased form. This fact is also reflected in the culture of the company as the thoughts and viewpoints of all the members of the team are required over every crucial decision of the company. Hence the structure of Capco serves as a framework for the culture to be implemented. As the company considers all its human resources as an important one, hence, the communication among the employees has a deep impact on their performance as well as on the operations and output of the firm (Janicijevic, 2013). A flat organizational structure promises a quick flow of information as the number of levels within the company is very less. Also, as Capco has always been known to support the concept of innovation and readily accept the thoughtful ideas of all its employees, hence the company has a number of solutions when it faces any sort of problem.
The non hierarchical structure has been continuously supported by the innovative culture of the company and this fact could be proven by the increasing revenue of the firm in the past decades (Brighton school of business and management, 2016). This amalgamation has also helped the firm to withstand with the rising competition in the business world due to the establishment of a number of similar firms offering better innovative services. The promotion of individual expressions without any restriction has led the firm to collect myriads of perceptions towards a single problem and hence develop the most potential solution for it. As there is no clear leader in the firm due to its non-hierarchical structure, hence, it gives each of its employees a rise and high job satisfaction due to individual participation. This all in turn improves the operations of the firm simply because motivated employees discharge better services (Team, 2015).
There are myriads of factors that have a substantial influence on the behavior of an individual associated with the organization and have a direct impact on the quality of services delivered by the firm. The main factors in this case identified for the firm Capco are:
Leadership: The managers and other executives of the firm have a great influence on the behavior of their subordinates and it has been an ultimate responsibility of these leaders to set a perfect direction for their followers. As the company is following a non-hierarchical structure, hence, there is no such pure concept of leader and subordinates. But the firm is still filled with a number of highly skilled and experienced working people that have engaged themselves in guiding the fresh recruited talents (Kashyap, 2015). These people have always been a strong source of inspiration for the ones who have recently become the part of the Capco family.
Job Responsibilities: The researchers at the global level have already proven that it is impossible for a person to deliver the best of his abilities when he is subjected to stress. Hence, the overburdened working hours also alters the individual behavior, developing an aversion towards the workplace. Instead of over-burdening, the employees could be encouraged to upgrade their skills time to time (Mathur & Gupta, 2012).
Personal Characteristics: There are a number of personal characteristics like age, gender, geographic conditions, physical appearance, marital status, etc. that has a both direct as well as an indirect influence on the quality of the performance of the employees and also on their behavior at the workplace. For instance, a married woman will pay more heed towards her home and family rather than her work and this will be a major reason behind her absenteeism. Similarly, performance tends to decline with advancing age because elderly people have less stamina and even do not easily get adapted to the changes occurring in their environment. Even the young ones, being a bit reckless and carefree, tend to shift jobs more easily.
The type of leadership styles varies according to the variations in the functioning of companies. Myriad forms of leadership style include Authoritative, Coercive, Affiliated, Democratic, Pacesetting and Coaching. As already discussed that Capco has never followed a true hierarchical structure in the organization’s management, hence, the occurrence of specific leaders is not often seen. Yet, the experiences and skilled employees of the firm follows a number of tactful strategies adopted from the above mentioned leadership styles to guide their followers and the ones who are new to the culture of the company. The company is known to follow different leadership style at different point of time. When compared to the other companies of the same genre like Albridge solutions, Argo, Copp Clark limited, etc., then the company is said to have followed a number of leadership styles simultaneously at the same time to yield better results (Johannsen, 2014). On the contrary the firms like Albridge is known to follow a single leadership type at a single point of time evaluate its results and then accordingly either stick to a particular style for a long duration or immediately switch to another one for a better set of results. The firm follows Authoritarian leadership when there has to be an establishment of close control over the workforce and the words of the decision maker are final. In the times of crisis, the executives have followed a Coercive style in which the leader takes the whole of the charge and invites no contrary opinions. The Affiliated Leadership is normally followed in the firm as it promotes harmony among the workers and helps in resolving the conflicts by mutual communication. The Pacesetting Leadership produces leaders who lead by examples, i.e. in order to incorporate any change the leaders first of all apply it on themselves first and then on their subordinates. The Coaching Leadership is used when the firm wants to develop people for the future. This style builds lasting personal strengths in the workers to make them more successful overall (Benincasa, 2012). The above mentioned styles are temporary, but Democratic Leadership is the most permanent one in the company as it is in compliance with the organizational culture of the firm. In this type the leaders and the followers work as a team and all are involved in the decision-making process.
The emerging issues in the company could be resolved and addressed by specific organizational theories by highlighting specific organizational problems. As the company expands, its working strategies, also change a lot and here the actual work of organizational theories begin as they address several crucial questions about how a company works. The Scientific Management Theory supplies the systematic management movement with coherent ideological foundation. This theory has the force on the formal study of management, which precisely includes planning, organizing, leading and controlling. When these elements are dealt with a practical and a formal way, then there are sure chances of good management of the operational issues within the firm. The essentials of this theory also have a potential to influence the on the business policies of the company (Agbim, 2013).
Human Relation Theory or Behavioral Management Theory tends to focus more on the individuals at the workplace rather than the places, process and the procedures. This theory creates a great communication channel between the employees and managers which allows them to freely interact with one another and take wise decisions over a problem. This theory adopted by the Capco has allowed it to develop a number of productive workers who can lead a company to achieve its goals on time. This theory has allowed Capco to improve its employee retention rate as well as has also accelerated its productivity by manifolds (Cardoso, 2014). This is entirely due to a single fact the Human relation theory has a tendency to associate a great value with all its employees and hence they automatically form a productive workforce that delivers its services in a better manner.
The managers, all over the globe, have till now adopted a number of approaches to management. As the perceptions and needs of the workers have changed with the evolution in the business practices, the older management approaches are also replaced by the more efficient ones. Capco has always paid a great heed to its workers and has considered them as its major asset. Hence the approach being followed here is the Scientific Management approach. This approach is concerned with the recognition of actual doable things of the workers and what all economic feasible measures does the company adopts making its workforce to do such things in an allotted time slot (Fayol, 2012). The crucial elements of a successful business, including Job analysis, Recruitment process and Training of the employees, all are carried out in the presence of scientific tools so that the physical activities in the job can be better balanced and organized. Moreover, this practical approach also helps the managers to seek out one of the best ways of doing a job.
The other available approaches, frequently being adopted by the competitors of Capco includes Administrative, Bureaucratic and a number of Neo Classical Approaches. For instance, Albridge follows approaches like Socio-technical, Cooperative, Group-Behavior and Human Relation Approach. Although, Capco has also adopted these new approaches with time, but, it hasn’t demolished the older ones. Apart from these neoclassical approaches, the Administrative approach believes that the practice of management is quite distinct from the other organizational functions prevailing in the company and the Bureaucratic Approach believes that there should be long-chain of commands in the firm and the subordinates have to obligatory follow such commands without getting themselves involved in the decision making process (Parra & Marengi, 2011). These approaches were successful when the concept of Hierarchical organizational structure was followed, but as soon as the non-hierarchical structure developed and all the members of a firm began to interact with one another over a crucial decision, then the neoclassical approaches rapidly replaced the classical ones.
A motivated workforce is said to perform better than a non-motivated one and this is entirely due to a fact that when an employee is happy and satisfies with his job and workspace culture then he tends to deliver the best of his services. The importance of employee motivation is closely associated with the leadership style being followed and it cannot be downplayed (Men, 2010).
Leadership and its styles play a crucial role in determining the level of motivation among the subordinates. As it is mentioned in the earlier section that Capco and other similar organizations are known to follow different types of leadership styles at different point of time, according to the requirements of the changing business and management practices, hence the impact of these styles on motivation among the workers varies from one style to another (Neves & Galvao, 2013).
When following an Autocratic style, the managers do not entertain a much involvement of their subordinates in the decision making process. This makes the employees to believe that their leaders are capable enough to make decisions and hence motivate them by establishing a firm confidence in the managers’ ability to make productive decisions for the firm. On the contrary, the Democratic style follows a motivational tactic of Inclusion which involves all the subordinates in the crucial decisions of the firm (America’s Job Exchange, 2016). This approach allows a formation of an emotional attachment of the employees with the company’s success and betterment as they have been a major part of the firm while the policies and processes of the firm were being crafted. Whatever is the leadership style being followed in the firm, the pivotal aim of the leaders is to make the followers satisfied with the actions of the firm and gain their loyalty towards the company. The more happy and satisfied are the employees, the more are the chances of increment in the productivity and revenue of the firm (Root, 2015).
The employee satisfaction, in this era of business, is quite crucial. Almost all the companies of a particular genre offer similar types of incentives and wages to its employees. Hence, in this case, the employee seeks that firm which is able to offer him satisfaction and a proper balance between his personal and professional life. As Capco has been an employee-oriented company, hence Maslow’s Motivation Theory is more applicable within the organizational setting of the firm. This is because the other theory, i.e. Herzberg Theory of Motivation only talks about an increment in the productivity level of the firm, disregarding the equal importance of the employee satisfaction (Difference between Admin, 2014).
Maslow, through his theory, has mentioned that workers are motivated by having each level of their needs met in order as they move up the hierarchy. For this, he has also suggested a hierarchy of needs, comprising of 5 different levels of human needs that are to be fulfilled step by step by the mangers at the workplace. This theory, on the contrary, to the Herzberg theory, focuses on a fact that it is the core responsibility of the managers to recognize that workers are not all motivated in the same way and even do not move up the hierarchy at the same pace (Hartzell, 2016). Hence, the company is seen to offer a variety of incentives that differ from worker to worker. The Herzberg theory, being a two-factor theory, talks about the relationship between employee satisfaction and levels of motivation. Although, employee satisfaction is a crucial element of this theory, yet it fails to recognize it over the productivity of the firm. While the former talks about the needs that are to be fulfilled in order to motivate a person, the latter one talks about the causes of satisfaction and dissatisfaction. Although Capco has promoted the thought of Maslow till now, yet the Herzberg’s theory is the most widely adapted theory by most of the leading firms as it candidly explains the factors that leads to motivation and demotivation among the employees (Riley, 2015).
Organizations set particular goals for it and the employees working as a part of the organization aide in achieving those goals. An organization fails to achieve these goals on time due to the presence of a number of de-motivated employees. This creates a need for understanding individual behavior for creation of effective motivational tactics and even for following good management and leadership practices (Ganta, 2014).
Motivation theories are known to provide a deep insight into the process of making an employee a better asset for the firm. The elements of these theories provide effective tools to the managers that help them to evaluate what all changes are to be incorporated to make the employees better. When there is a lack of knowledge among the managers about the motivational theories, then they tend to believe that monetary incentives are the only way of motivating the staff. Hence, the theories help the leaders to analyze the fact that different employees have different needs and expectations with the firm and they are to be met in varying ways (Shanks, 2012).
A good understanding of motivational theories not only help the managers to overall increase the performance level of the employees, but also helps them to retain the knowledge of the motivated employees for a longer period. This is due to a fact that the motivated and satisfied employees become more loyal towards the firm and never leaves the firm in times of crisis. The motivational theories, if applied in compliance to the operations of the firm, helps in achieving specialization among the employees and even aide them in acquiring the key skills needed for delivering better services to the company (Pardee, 1990).
A group is a collection of people who have regular contact and a proper communication. The activities of an individual in a group have an influence on other members of the group. All the constituent members of the firm work in a close collaboration to achieve the goals. At present, there are a number of groups acting at Capco to improve its performance and give an additional lead over the other similar firms in the race. There are two types of basic groups within the Capco namely Formal and Informal (Ashraf, 2011). The formal group is created in an organization with a vision to complete a specific goal or simply a task. These groups are formed by the senior executives of the firm by consulting with the leaders of the firm. On the contrary, Informal groups are generally formed by the workers themselves who wants to interact with one another. These groups are generally formed not for a specific purpose, but only because the members of the group begin to enjoy each other’s company.
Whatever is the type of the group in an organization, all the groups work to lead the organization and take major decisions for the organization. The groups also play a role in the planning for the Capco’s future improvement and contribution to the society and the country. Group behavior is a way in which the members of a group behave or react in big or small situations. As already mentioned that Capco comprises of a large number of both formal and informal groups, hence all the groups tactfully react to the adverse economic conditions and also supports the firm with a huge number of innovative solutions for a single problem (Codreanu, 2010). But it would be an ideal condition if these groups always react in a positive manner towards the problems. In such a case, the essentials of a strong leadership unit plays its roles by forming groups of skilled and strong people to face the challenges involved in the business world.
To achieve myriads of goals quickly and easily, Capco has always promoted an idea of teamwork in its working strategies. Team members work in a close collaboration to develop innovative solutions for a problem. As teamwork holds a crucial position in management principles of Capco, hence, it is affected by a number of factors prevailing in the firm. These factors both have a complementary as well as an inhibitory impact on the effectiveness of the teamwork. Few of the identified factors are:
Understanding of Goals: A team is formed basically, to achieve a goal, but if the team members are not fully aware of the actual goals of the firm and they are not even able to prioritize the primary and secondary goals then it becomes quite difficult for the managers to effectively implement activities and tasks to the teams. Hence, there has to be a deep understanding of the goals by the team workers who are constantly working to achieve them.
Compensation Schemes: Compensation can have a double sided impact on the effectiveness of teamwork. When a team member gets to know that their hard work will be compensated with good incentives, then they work harder for the benefit of the firm. But this could also prove harmful for the firm because when staff members receive such compensation, then they begin to associate hard work with rewards, awards and compensation only (Root, 2016).
Occurrence of Conflicts: Conflicts, most of the time, have a detrimental impact on the effectiveness of teamwork, because when ideas of people do not match then they always indulge into conflicts. Sometimes these conflicts could be easily resolved, but sometimes they can also exaggerate and ends up in court.
Communication: As Capco follows a flat structure of the organization, hence all the members of the company are treated at a same level. In such a case, it is the elements of communication that always maintains a good flow of thoughts among all the members of the firm. Hence, a company needs to have strong grounds for communication so as to develop a confusion free working environment in the organization (Heathfield, 2016).
Capco has always been known to apply a number of technological reformations in its management principles and the type of services it delivers to its customers. The technological reformations are incorporated by the executives and their subordinates to gain specific achievements for the organization. The technology has also accelerated the process of communication as a number of tools are available as a part of technological advancement. For instance, e-mails allow asynchronous communication which does not require team members to be at the same place at the same time. Similarly, computers and mobiles have also made communication and computation quickly and easily (Raulea, 2010).
Technological tools are also efficiently used by the managers to deliver crucial lectures to their subordinates and even hold meetings with the ones situated in remote areas. For instance, during meetings, projectors are used to display information and ideas using slide shows. Other tools of technology used in communication include Teleconferencing, Video Conferencing, Chat Rooms, Voicemails, Faxes, Computer-mediated Conferencing (CMC), etc. The technology has also allowed the introduction of a new concept known as Virtual Team which allows the employees to connect and communicate in real time around the globe. This concept has led to the involvement of the people round the clock instead of just eight hours. Wider groups or networks can be involved, which means a great number of brains applied to the problem. Technology in the Capco’s teams also improves the efficiency of screening, recruiting and hiring potential candidates (Gagnon & Dragon, 2008). The leader of the teams could spread the messages of hiring new talents through internet. Also, Office technology saves time by speeding up the workflow process.
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