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BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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Unit 3: Organisations and Behaviour
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BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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Learning Outcomes and Criteria covered by this Assignment
Summary of learning outcomes
To achieve this unit a learner must:
1. Understand the relationship between organisational structure and culture
2. Understand different approaches to management and leadership
3. Understand ways of using motivational theories in organisations
4. Understand mechanisms for developing effective teamwork in organisations.

BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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Programme: BTEC Higher National Diploma in Business
Unit Number: 3
Unit Title: Organisations and Behaviour
Module Tutor:
Email:

TASK 1
Define the word organisation culture and the various types of culture that are available to an
organisation stating advantages and disadvantages of each of them. Identify and describe the
different types of organisational structures and cultures and compare and contrast including an
argument for and against the structures of City College and Enterprise. (LO 1.1)
TASK 2
Explain the relationship between an organisation’s structure and culture and the effects that
both culture and structure has on an organisation’s performance. Citing examples from the
case study identify and examine in detail, the effects that both culture and structure has on the
performance of City College. (LO 1.2).

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TASK 3
Define the word behaviour and identify the various factors that might influence the way
individuals behave at work. Using different examples from the case studies, discuss what you
would identify as the influencing factors in the way City College behave (LO 1.3).
TASK 4
Taking the case studies to support your discussion, compare the effectiveness of different
leadership styles in the two different organisations. Explain the various approaches to
management and leadership theories and their relationships to the way organisations are
managed and their importance. (LO 2.1)
TASK 5
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 the City College and Enterprise. You may include examples
from other organisations to support your evaluation. (LO 2.2 & 2.3)
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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. All
organisations have mission and group’s mission statement is “To provide inclusive learning
opportunities for its students and to succeed in providing comprehensive higher education to
the local community”.

A mission statement can be used as a starting point to achieve a sustainable business.
City College as expanded recently on its objectives within its mission statement to make the
college a much more secure teaching establishment.
City college new mission statement now includes the following corporate objectives:
1. Be reliable
2. Be responsive
3. Understand learners needs
4. Be straightforward
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Elements at City College
The table below shows how the company is organised and the various support functions
needed: City College operates both in north and south London.
Important functions within City College
Operations
In general, City Colleges operations are:

City College`s ‘operations’ can be split into three Departments:

maintaining the college’s workforce. It is its aim to continue to provide personal professional
development to its entire staff. City college invested £1.1 in its North London branch in
facilities and new staff recruitment. This site now has 1500 students enrolled on higher
education courses. Operating improvements and growth do not happen by accident. City
Colleges encourages employees to come up with good ideas, so these can be discussed,
adapted and implemented throughout the business.
In 2005 City College won the number 1 college for education to work Awards 2005. City
College is aware its importance to increasing the opportunities for education in the local
community. Working with organisations such as Westminster council, City College are able to
provide more educational courses to the local community. Working with the Westminster
council, as allowed city college to encourage adults back into education and on the road to a
prospective career in business.
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Administration
Administrative people:

team members within City College.
Part of City colleges Culture is to have respect for all staff and support each other through
daily operations.
Support functions
Human Resources
City colleges Human Resources (HR) department focuses on the following areas:
Organisational Development including managing change, training and development

It aims to ensure that: City College values are shared across the company and employee
satisfaction is increased which in turn can drive and achieve a sustainable college. One area in
which HR is involved is recruitment. When a company recruits someone, selection will be
done by HR and the employing department working together. Induction and training are the
next steps. These are also managed by HR and the employing department. HR ensures that,
once recruited, staffs remains. Moreover, as people need to develop and maintain skills, HR is
usually responsible for staff development. Tarmac’s HR strategy ensures that its corporate
values are shared and maintained across the company. Employees are expected to follow its
four key corporate values. City College sees these values as essential for helping them to carry
out their work day in, day out; they guide us in our dealings with each other and with our
customers; ultimately, they are the bedrock of the culture of the company.’
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Strategy, Marketing and Technical
In business terms, strategy is a relatively new concept. Strategy, strategic development and
strategic management are key roles in their own right. Additionally, various managers and
levels of management are involved in many different ways. The management team undertakes
a review with the aim to improve the college functionally and to identify parts of the company
not performing as well as others.
Marketing
City colleges marketing team is involved in four key activities to help it achieve its mission
statement:• gaining insight into markets and student needs • applying this knowledge to inform
strategy development and marketing plans, and identify new product ideas and services •
managing the City College brand image and external communications through a broad range
of communication channels including public relations, advertising, website development, emarketing, brochures and exhibitions. • leading internal communications through the company
magazine, newsletters, intranet and conferences. Through its technical team, City College
constantly looks for new and innovative solutions, for example Foam Master.
Finance
No business can survive without cash or some form of credit, so to ensure it does not run out
of money, it needs to manage its finances properly. Any company with sales in the region of
£1 million is a big business and therefore relatively complex. The finance function of any large
business includes: • bookkeeping • accounting • credit control • finance • taxation •
management accounting • auditing.
Conclusion
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.
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Company B: Enterprise
Introduction
For organisations to develop they require a direction. The people who manage the business
provide the direction. Taking responsibility for making decisions and running a business well
is a skill. Businesses place considerable emphasis on getting the right people with the right
skills into key posts. They need to ensure that these people have the opportunities to develop
decision-making skills. 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 belief forms
the foundation of Enterprise’s four key business objectives of:
• Customer satisfaction
• Fleet growth
• Employee development
• Profitability.
These four business objectives link together:
• 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.
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.
Leadership and management
Management involves control and organisation to get something done. In the course of
business, managers use many different skills. They:
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• Plan and organise people and resources
• Set and monitor budgets
• Control operations or services in order to meet customers’ needs.
The ability to manage is essential at all levels in the organisation. However, for a business to
excel, leadership is vital. A leader is somebody who sets the direction and inspires other
people. A leader is able to influence others in meetings or when making decisions. This helps
to achieve the goals of the organisation. Enterprise has leaders at all levels of its business, not
just senior management. Some people are natural leaders. For example, the captain of a school
football team will probably have the ability to influence others. Leaders can also develop
through training and education.
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. This might be through meetings or having lunch in the same
dining area. The CEO Andy Taylor is following the values set by his father by making
opportunities for employees to meet and talk to senior managers. This shows an informal style
and a lack of hierarchy. Enterprise puts a high value on teamwork and open communication
between employees at all levels. Managers have their own preferred management style. Some
prefer an autocratic style where they tell employees what to do and how to do it. Others prefer
a democratic style where they help their team to discover solutions to problems for
themselves. However, the management style must change to fit the circumstances. Some
decisions must be made at the highest level. For example, a manager would need to give
immediate instructions on a health and safety issue or in a fire. However, if changing an office
layout, the manager could leave the team to investigate and decide on the solution for
themselves.
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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.
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. In order to gain commitment to using the process, employees had the
prospect of promotion when they achieved high scores. This was a big motivator for staff. •
When the Senior Vice President of European Operations at Enterprise decided on the
company’s diversity programme, employees were clear that this decision was compulsory and
not an option. • The Vice President of Corporate Communications for Enterprise established
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an environmental committee. Its aim was to influence the behaviour of the whole organisation
by reducing waste and improving its carbon footprint.
As the industry leader, Enterprise attempts to set high standards when it comes to the impact
of rental cars on the environment. In contrast to the autocratic style, Enterprise uses
democratic decision-taking in many parts of the business. Everyone has the opportunity to
contribute ideas to the decision. There are two types of democratic decision-making:
1. Persuasive democratic management – here the leader makes the decision first and then
persuades employees that he or she has made the right decision.
2. Consultative democratic management – this involves the group contributing to the decision
making process, with the leader making the final decision.
The team is central to delivering good customer service. The consultative approach helps
Enterprise achieve this business objective. Enterprise operates through an extensive network of
local offices. Branch managers and their staff need to make decisions to meet the changing
needs of customers in a fiercely competitive market. Each office operates with a large degree
of autonomy. This means that, in many areas of operation, local offices have the power to
govern themselves and make changes without referring to senior management. They use
different management styles with customers on different occasions. Examples of incidents
they may have to deal with include: • A car has been in an accident and a customer needs a
hire car urgently. Local managers take a consultative approach to understand the issues and
find the right solution for customers who might be upset or worried. • A customer wants a
vehicle for a weekend break. Branch staff will be more authoritative in recommending a
specific vehicle to suit their needs. This helps to satisfy this customer and ensure repeat
business.
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
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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.
Conclusion
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 competitive advantage over its
rivals.
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Unit 3: Organisations and Behaviour Regent College
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Programme: BTEC Higher National Diploma in Business
Unit Number: 3
Unit Title: Organisations and Behaviour
Module Tutors:
Email:

Task 1
Identify the difference leadership styles that are available and discuss the impact that
different leadership styles may have on motivation at the time of a change at Egg and Taylor
Woodrow’s workforce. (LO 3.1)
Task 2
Compare the application of the different motivational theories adopted by the two
organisations, Egg and Taylor Woodrow’s workforce. (LO 3.2)
Task 3
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Evaluate how has the management of both Egg and Taylor Woodrow’s workforce applied
these motivation theories and practices in the company and what benefits, if any, have the
companies derived from their chosen motivation practices (LO 3.3)
Task 4
Explain the nature of groups and group behaviour within Egg and Taylor Woodrow’s
workforce (LO 4.1)
Task 5
Identify with examples the various factors that could make a team effective and also those
factors that may be likely to threat the success and effectiveness of a team. With reference
to the case studies, discuss to what extent you believe that these factors have impacted on the
effectiveness of the teamwork of the organisations (LO 4.2)
Task 6
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 Egg’s and Taylor
Woodrow’s company teams and groups and the company’s overall performance (LO 4.3)
Assessment Type: Individual
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Company A: Egg
Egg is the world’s largest pure online bank, established in 1998. It has a reputation for
innovation in financial services and was set up in response to consumer demand for a more
flexible approach to banking. Today it has more than 3.7 million customers. Egg is best
known for its credit card business, but it also offers loans, savings accounts, investments,
mortgages and insurance. Egg’s enduring purpose is ‘to revolutionise customers’ experience
of financial services driven through unleashing the power of people’. This is like a mission
statement, in that it defines the way the company carries out its business. Egg knows its
performance will determine its success in winning and keeping the confidence of its
customers. It is apparent from Egg’s enduring purpose that it believes in the ‘power of
people’. First-rate performances by Egg people offer a first-rate service to its customers.
When customers receive a great service, they will tend to buy more. This in turn will lead to
greater shareholder value. Egg believes it is advantageous to build a strategy of motivation
into its culture. Motivation is seen as essential and has been made part of the fabric of the
company, known as ‘Egg DNA’.
In essence, motivation is the art of getting people to do things because they want to, or
because they see some benefit. At its most crude, motivation in the workplace is linked to
pay. It has subsequently been proved that pay is not the only motivator and in certain
circumstances does not act as one at all.
MOTIVATION
For Egg, motivation is about creating an environment where its people:
 Are involved in planning, performing and achieving for themselves, customers and
Egg.
 Have a great relationship with their manager who knows what they want to achieve in
their working life.
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 Feel empowered and ‘unleashed’, so they have the power to create change, reach their
potential and deliver excellent customer service.
 Enjoy their work and have opportunities to improve themselves and their role.
 Are recognised and rewarded for the effort they put into making Egg successful.
However, Egg also recognises that all the ‘hygiene factors’ which affect motivation need to
be in place and work effectively. For example great emphasis is placed on creating an
atmosphere which is conducive to working creatively and powerfully and ensuring that
people’s salaries are paid on time. Egg’s approach builds on much of the theory described
below. Egg aims to understand its people as much as possible and to get the best out of them.
By meeting the needs of the individual – and giving them ownership and the power to make
decisions – Egg ensures that the needs of the business are met. At Egg the role of the
manager is vital in ensuring its people are motivated. The management cycle is continuous –
managers plan and organise work. They then, in conjunction with their people, distribute the
work in such a way that, wherever possible, everyone is undertaking work which motivates
them and that they enjoy, and therefore delivers a better result for customers and
shareholders. Egg makes sure that each manager knows his or her own people well through
training called ‘know yourself, know your people’. It recognises that every individual is
unique and the way in which they behave is driven by a number of factors. Understanding
how these factors can be harnessed to reach both Egg’s and the employee’s target is of utmost
importance.
Over the years, many theorists have tried to discover what motivates people. The most wellknown are Taylor (1856-1917), Mayo (1880-1949), Maslow (1908-1970), McGregor (1906-
1964) and Herzberg (1923-2000). Of course, motivation is so important that new theories are
constantly being developed (Egg, for instance, uses McClelland’s Three Social Motives)
but these are all built on the work of the early theorists. The first of these is FW Taylor’s
Scientific Management Theory. Taylor was an American who worked with Henry Ford and
may be said to be responsible for the first production lines. He believed money was the only
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motivator and that there should be a ‘carrot and stick’ approach. This means that for those
who worked hard enough there would be rewards, but for those who didn’t penalties would
be imposed. Other theorists realised that this was not always the way to get the best out of
people.
Elton Mayo did not accept that money was the only motivator and he carried out the
Hawthorne Experiments at a plant in Chicago to try to discover what really drove people.
His Relay Assembly Test proved that workers were inspired by directing their own work,
working in teams and having a good relationship with management. He concluded that the
main reason his subjects’ work rate increased was because they were being studied. Having
someone show an interest in you is, in itself, a motivating factor. He also found that people
were driven when working in teams. People are also influenced by their own aspirations and
by friendship groups and managers can use these to assist in motivation. What Mayo called
the psychological contract refers to the unwritten understanding between the employer and
the employee – each knows what is expected of them. This can be built on to ensure that the
workers and the business are reaching their potential.
AH Maslow was an American psychologist who believed that people worked in order to
obtain certain things. He established a ‘hierarchy of needs’, as shown in the figure, stating
that people would endeavour to reach each need in order, starting from the bottom. Once
they had reached a level, they would then strive to achieve the next one. Douglas McGregor
studied how employers and employees could each have a view of work. He called the
traditional way of working Theory X. Here, the employer pays the money, supervises the
worker and gives instructions; the worker does the job, asks no questions and accepts the pay.
This he balanced with what he called Theory Y. This is where most people are satisfied with
their employment and take responsibility. McGregor believed that most workers are the
Theory Y type and that if people could be treated this way, firms would be more efficient.
Frederick Herzberg came to similar conclusions to Mayo. Asking workers what motivated
them, he ascertained that the main things were a ‘job well done’, a feeling of being
appreciated, trust, responsibility and specific rewards, such as being promoted.
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Certain conditions, which Herzberg called ‘hygiene’ factors, were de-motivators if they were
missing or inadequate. Pay and working conditions are two of the main ones, meaning that
satisfactory surroundings are not necessarily motivators, but inferior environments are
certainly de-motivators. Mayo’s theories and conclusions are particularly important at Egg.
He commenced from the idea that the better the relations between management and their
teams, the more efficient the business would be. Working agreeably is linked to being
contented, and satisfaction comes from the employee knowing s/he is appreciated. This is
why Egg places so much emphasis on managers knowing their people well in order that they
enjoy their work and are putting in every effort because they want to. Egg believes that to
motivate people it is important to balance the needs and wants of the company with those of
the individual.
This refers to what the individual wants from their working life. It is discussed in a ‘Know
Your People’ conversation between the manager and the employee. This conversation is an
important opportunity for the employee to talk about what motivates them, what they enjoy
doing and what their future aspirations are. Egg endeavours to ensure these needs can be
reached by, wherever possible, matching them into a role which takes account of what they
want to achieve and thus ‘unleashing their power’. Each person has different levels of
aspiration. For example, an ambitious graduate may have different goals and needs to a parttimer with young children or someone nearing retirement.
This is something each manager knows through the dialogue they have with their people.
Taking this approach leads to Egg being a motivated organisation with motivated people. Egg
believes that the aims of the company (known at Egg as the ‘Egg Game’) can be delivered
through clear responsibilities and targets (known as accountabilities and objectives). When
the accountabilities and objectives have been formulated by the manager she/he will have a
further conversation with each team member to agree these. They talk about what the
employee brings to the job and the knowledge s/he can acquire and use. Egg recognises that
everyone has different training and development needs and ambitions which will enable them
to be successful in their particular role and at Egg in general. The framework used for this is
called Egg DNA and is made up of:
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 The specific, special or technical skills/knowledge a person brings to the role (e.g. an
accountant would need specific accountancy knowledge).
 The attitudes a person displays in relation to what is being asked of them (e.g. being
passionate about the role and about what Egg is want to achieve).
 The non-technical skills individuals need to do their job (e.g. communicating
powerfully).
Egg plans to enhance and improve these qualities and skills through training and coaching the
individual to be the best they can in the role they are undertaking. Egg hopes that motivated
people who enjoy their work will encourage their family and friends to apply for jobs when
they become available. It runs a scheme which rewards people financially for this called
‘Bring a Friend to Egg’.
Conclusion
The success of Egg is connected to the way it treats its people. Its enduring purpose sets out
what it wants to provide as an organisation and where its targets lie. This includes having
satisfied and well-motivated people who strive to deliver an excellent service for customers
thus achieving greater shareholder value. By achieving these aims, both the organisation and
its people get what they require. This is what mayo described as a psychological contract.
Company B: Taylor Woodrow
Taylor Woodrow plc employs around 6,000 people worldwide. Its primary business is house
building. In the UK it builds homes through its Bryant brand and also has housing
operations in the USA, Spain, and Gibraltar and in Canada, through its Monarch brand. It
offers property development expertise UK wide through its network of regional offices. Its
construction business is focused on activities such as Private Finance Initiative, Facilities
Management and specialist engineering consultancy. Together, Taylor Woodrow’s
combination of skills in house building, property and construction give the company a
powerful competitive edge in the area of urban regeneration and Brownfield development.
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The Taylor Woodrow way of working
Like people, organisations have distinguishing characteristics. These usually feature in an
organisation’s vision and culture. An organisation’s vision statement describes what it sets
out to achieve. Such a statement needs to be: Believable’ feasible, and inspiring (to those
involved in the company). Taylor Woodrow’s vision is: “To be the leading developer of
living and working environments in the UK and other chosen markets’’ An organisation’s
culture is the network of relationships and patterns of behaviour within the organisation –
what the Americans refer to as “the way we do things around here”. Taylor Woodrow’s
culture is based on seeking: “To ensure that its companies and employees continue to
improve and develop in a culture of excellence”.
This places Human Resource Development at the centre of the company’s culture. Besides
having a strong people focus to the way it operates, Taylor Woodrow also has a strong
customer emphasis, and the teams of people working for the organisation continually strive
to exceed customer expectations. Taylor Woodrow wants its customers to feel certain that
they can rely on it to deliver products and services (e.g. a new house) at the agreed price and
to the highest standard. Employees therefore play a key role in enhancing shareholder value
to the benefit of the Group and its stakeholders. Most of Taylor Woodrow’s competitors are
other large house builders. Its Unique Selling Point (USP) that sets it apart from rivals is the
skill base of its workforce and the fact that it can meet just about every engineering need
from within the company.
A major problem facing UK housing and construction projects is a shortage of available
greenfield sites at a time when demand for property continues to rise. A major strength of
Taylor Woodrow is its expertise in developing complex Brownfield sites (on reclaimed land
that once might have been an industrial area) using integrated teams of specialists brought
together for particular projects. Brownfield site development includes remediation: the
removal of toxic waste so that the environment is safe for people to live in. This is a highly
complex operation. When working on these complex projects it is essential that the
workforce is familiar with corporate objectives in order to enhance company performance
and thus gain competitive advantage.
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Taylor Woodrow’s workforce
One common misconception is that house builders only employ people like bricklayers and
labourers. Taylor Woodrow does employ these skilled tradesmen, some of whom are subcontracted: brought in from other firms as and when required. However, Taylor Woodrow’s
core employees also include:
Quantity Surveyors and Commercial Managers
Business Development Managers
Project, Estate and Land Managers
Architects and Interior Design specialists
Civil Engineers
The usual promotion route is for specialists in these areas to become managers. Today, the
company is looking at taking on more generalists such as business graduates who can then
train to become managers. In addition, Taylor Woodrow employs central services staff
including Human Resource specialists and people working in Finance, IT, Sales &
Marketing.
Individual performance and corporate objectives
Performance management is an HRD process concerned with getting the best performance
from:
 Individuals
 Teams
 The organisation as a whole
Effective performance management involves sharing with employees an understanding of
what needs to be achieved and then managing and developing people in a way that enables
these shared objectives to be attained. Ideally, an organisation will have all of its employees
‘pulling in the same direction’ and ‘singing from the same hymn sheet’. Supporters of this
HRD approach argue that this two-way process can be effective only where there is a clear
psychological contract between employers and employees based on mutual trust and
BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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commitment. The Taylor Woodrow group is committed to a Performance and Development
Review process for all employees, departments and companies. In an individual Performance
Review, a manager and a fellow employee sit down together to: agree on meaningful task
objectives for that employee and for the team(s) within which he/she operates identify
individual development needs and aspirations
In preparing for such a review, individuals write down their career aspirations and training
and development needs, as well as their successes in meeting previous targets and objectives.
Managers will read this prior to the Performance and Development Review and also plan
ways of communicating to the employee the various objectives of the local management
team (and how they support Taylor Woodrow’s wider objectives) that are particularly
relevant to that individual. It is then possible at the review meeting to identify the successes
of the individual in attaining previously decided objectives, and to identify new targets.
With such a system in place, it is possible to establish for a period of time ahead the Key
Result Areas against which an individual’s performance will be assessed. In this way,
performance is measured against agreed standards. Salaries and bonus payments then reflect
the success of each individual’s performance based on a rating system.
Taylor Woodrow believes that the effective management of individual performance rests on
managing the performance cycle, which is an ongoing process of performance planning,
support and review. The planning stage involves agreeing the objectives. The supporting
stage involves identifying development needs and how these can be addressed, and then the
manager giving ongoing coaching, feedback, and support. Reviewing performance involves
both informal employee/manager discussions and a formal Performance Review tied to the
reward process. Each employee receives two formal Performance and Development Reviews
each year. A January review establishes objectives for the coming calendar year. An
interim July review then examines any further development needs of the individual and the
teams within which he/she works. It is essential for managers to feel that they ‘own’ this
process and fatal if they see it only as a chore. Properly carried out, the system can operate
at every level within a company.
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Unit 3: Organisations and Behaviour Regent College
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The Performance Review process encourages even the humblest employees undertaking the
most routine of tasks to support the company by accepting greater responsibility for their
own actions. For example, a mailroom worker used his own initiative to ensure that
outgoing mail posted on a Friday was sent 2nd Class. His reasoning was that no receiving
firm would read it until Monday, so why waste the company’s money on next-day delivery?
This constructive move continues to save Taylor Woodrow considerable sums annually.
Motivation, performance and pay
In the UK, there is a movement towards relating pay and promotion to measured
performance. The PRP (Performance Related Pay) approach is based on a philosophy of
agreeing: the key results areas of the job clear standards of performance and target levels of
competence regular, objective reviews of performance and competence. In 2000 a Taylor
Woodrow survey of its employees showed that 94% favoured a Performance Review and
Pay Review Cycle. This is typical of many companies, where employees prefer objective
standards for measuring their performance rather than relay on the subjective views of their
line manager. Individual rewards for employees are therefore based upon: the Group’s and
the individual company’s overall business performance and ability to pay each individual’s
contribution to the company’s success the level of salaries and benefits necessary to attract
and retain people, taking into account competitive salary arrangements elsewhere
The Performance Review examines:
The level of skills, competencies and knowledge an employee demonstrates in his/her
particular role the degree to which set objectives have been achieved. These are documented
and evidence is provided. Employee rewards are then tied to this Performance Review,
which is rated using a scale of 1 to 5, with 5 being the highest. Bonuses and salaries are then
related to this rating, after consideration of company financial performance. Where
employees have skills that are in short supply, the review also considers wages being paid
elsewhere for similar work. Salary increases based on the past calendar year’s performance
are effective from April 1st. Bonus payments in respect of the previous year are paid at the
end of March. A major aim of the company’s Performance and Development programme is
to create commitment and motivation at all levels of the organisation; by the organisation
itself, managers, and all employees.
BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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Assessment Criteria:
P1-P12 Pass Criteria
M1-M3 Merit Criteria
D1-D2 Distinction Criteria
To Achieve a Pass
To gain a pass grade you must attempt all three assignments and you must satisfy the pass
criteria as outlined below.
LO 1.1 compares and contrast different organisational structures and culture (P1)
LO 1.2 explain how the relationship between an organisation’s structure and culture can
impact on the performance of the business (P2)
LO 1.3 discuss the factors which influence individual behaviour at work (P3)
LO 2.1 compare the effectiveness of different leadership styles in different organisations (P4)
LO 2.2 explain how organisational theory underpins the practice of management (P5)
LO 2.3 evaluate the different approaches to management used by different organisations (P6)
LO 3.1 discuss the impact that different leadership styles may have on motivation in
organisations in periods of change (P7)
LO 3.2 compare the application of different motivational theories within the workplace (P8)
LO 3.3 evaluate the usefulness of a motivation theory for managers (P9)
LO 4.1 explain the nature of groups and group behaviour within organisations (P10)
LO 4.2 discuss factors that may promote or inhibit the development of effective teamwork in
organisations (P11)
LO 4.3 evaluate the impact of technology on team functioning within a given organisation
(P12)
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Unit 3: Organisations and Behaviour Regent College
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To Achieve a Merit
To gain a merit grade you must achieve all the pass mark criteria and in addition you must
satisfy the criteria as outlined below.
Identify and apply strategies to find appropriate solutions through effective judgement (M1)
Select/design and apply appropriate methods/techniques. You are judged on the application
of relevant theories and techniques and the justification for their application (M2)
Present and communicate appropriate findings. This includes the use the appropriate structure
and approach with coherent, logical development of principles/concepts for the intended
audience (M3)
To Achieve a Distinction
To gain a Distinction grade you must achieve all the pass mark criteria and all the merit
mark criteria and in addition you must satisfy the criteria as outlined below.
Use critical reflection to evaluate own work and justify valid conclusions including realistic
improvements which have been proposed against defined characteristics for success. (D1)
Demonstrate convergent / lateral/creative thinking by showing evidence on receptiveness to
new ideas and effective thinking in unfamiliar contexts. (D2)
Take responsibility for managing and organising activities including accommodating the
unforeseen and recognising the importance of interdependence. (D3)
Your subject tutor will be able to give you general guidance and feedback on improving your
work however it is your responsibility to seek feedback from the subject tutors on the above
criteria for you to achieve the intended grades.
BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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Support materials
Textbooks
Brooks I — Organisational Behaviour, Individuals, Groups and Organisation 2nd Edition
(Prentice Hall, 2003) ISBN: 0877781265
Huczynski A and Buchanan D — Organisational Behaviour: An Introductory Text (Prentice
Hall, 2000) ISBN: 0273651021
Maccoby M — Why Work: Motivating and Leading the New Generation (Simon and Schuster,
New York, 1998) ISBN: 067147281X
(Outlines the changing nature of the workplace and categorises people into five types, giving the
characteristics and sources of motivation and demotivation of each.)
Mullins L — Management and Organisational Behaviour 5th Edition (Pitman Publishing,
London, 1999) ISBN: 0273651471
Robbins S — Essentials of Organisational Behaviour 4th Edition (Prentice Hall International,
2003) ISBN: 0582820758
BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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Plagiarism and Collusion
When producing the assignments, Learners must not copy any material whole or part from
fellow students intentionally or unintentionally. Any materials including phrases, paragraphs,
diagrams, tables, charts or graphics copied from books, journals, web sites or any other
sources must be properly referenced according to the Harvard referencing system. Even if the
words are changed or altered learners must clearly reference the source. Learners are required
to produce a ‘Turn-it-in’ originality report for any coursework, essays submitted for
assessment. Any assignments submitted without a ‘Turn-it-in’ report will be refused and
returned without marking.
Collusion: Unless stated otherwise, you must not produce assignments in collaboration with
fellow students where the assessment is based on the individual work. Such material will be
refused by the assessor and you will receive no mark. You must not share your individual
assignments with fellow students and in an event both lender and the receiver will be
disqualified for the assessment.
Plagiarism and Collusion is seriously dealt with in accordance with the regulations at Regent
College and any learner who fails to produce an original piece of work may be disqualified of
taking the assessment and may have to repeat the unit.
Please visit the link http://www.regentcollegelondon.com/Policies.asp to read our Academic
Misconduct Policy for further information on above. You can also access this policy by
accessing VLE.
Extension and Late Submission
Please visit the link http://www.regentcollegelondon.com/Policies.asp to read our Assessment
Policy in order to acquire information concerning the above matter. You can also access this
policy by accessing VLE.
Attendance and Punctuality
Attending all your sessions is vital for your studies. We expect students to attend 100% of
your classes. Please visit the link http://www.regentcollegelondon.com/Policies.asp to read
our Attendance Policy for further information on above. You can also access this policy by
logging on to VLE.
General Guidance
This unit is assessed on 100% coursework including your active participation in lessons. You
must submit both assignments to receive an overall mark.
BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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You should plan well in advance on how to tackle this assignment. You should seek
knowledge outside the classroom lectures and activities to gain maximum learning outcome.
You should access recommended supporting materials as suggested and use the knowledge in
your assignments.
BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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Programme: BTEC Higher National Diploma in Business
Unit Number and Title: Unit 3, Organisations and Behaviour
Module Tutor: Nalika Danthasinghe
Learner name:
Information/feedback on assessment and grading criteria

Feedback Sheet
BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
33

BTEC Higher National Diploma in Business
Unit 3: Organisations and Behaviour Regent College
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Assessor’s general comments:
Assessor’s Signature: …………………………………………………………………………………………………….
Print Name: ………………………………………………………………………………………………………………….
Date: ……………………………..