MG414 Organisational Behaviour Case Study

MG414: Organisational Behaviour

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Introduction: MG414: Organisational Behaviour

Through secondary research, this report will examine the theories of organisational culture, communication, as well as motivation. The significance of these theories in determining the operation as well as success of a business organisation, as well as their applicability to HSBC, the company selected for this task, will be covered in the report. One of the largest banking and financial services companies in the world, HSBC has a sizable global footprint. Understanding the theories of organisational culture, communication, and motivation is essential for the organization's successful management due to its diverse workforce, which is dispersed across various regions and cultures. The report will give an overview of these theories and a thorough justification of how they apply to HSBC. To support this research and offer a thorough understanding of the selected topics, ten sources, including books, scholarly journals, and internet articles, have been chosen. Overall, reading this report will aid in gaining understanding of the models and theories that support organisational culture, motivation, and communication as well as their importance to HSBC. Anyone who is interested in learning about the important elements that contribute to the success of a business organisation will find the findings of this report useful.

Identify company culture in line with a theoretical model

A set of common values, assumptions, beliefs, and practises that influence how people behave within an organisation is known as organisational culture. The Competing Values Framework (CVF), created by Quinn and Rohrbaugh in 1983, was selected as the theoretical framework to describe the culture of HSBC. Clan, Adhocracy, Market, and Hierarchy are the four organisational culture types recognised by the CVF model (Zeb, 2021).

The Market culture and the organisational culture of HSBC are compatible. Competition and a focus on achieving objectives and results define this culture. Performance, productivity, and efficiency are prioritised in organisations with a market culture. They are concentrated on achieving goals, evaluating success, and forging a competitive edge. A multinational financial institution like HSBC competes fiercely for customers. As a result, it gives a lot of weight to performance and results (Smith, 2018). According to the organization's mission statement, "connecting customers to opportunities, enabling businesses to thrive, and enabling economies to prosper." The organization's dedication to achieving results, a crucial aspect of the market culture, is highlighted by this mission. The emphasis on stability and control is another aspect of the market culture (SHRM, 2019). Market-oriented organisations are frequently highly structured, hierarchical, and decentralised. The organisational structure of HSBC is very centralised and places a big emphasis on management and control. The company is organised into regional hubs, with the global headquarters in London acting as the hub for all of them. The market culture places a strong emphasis on lucid and direct communication. The communication channels used by HSBC are very structured, with a focus on formal channels. Its communication policies and procedures demonstrate the organization's strong emphasis on compliance and regulation (Tettey, 2019).

The organisational culture of HSBC is generally compatible with the market culture. The organization's mission statement and organisational structure reflect the importance it places on achieving results and performance. The organisation also prioritises stability and control, which is evident in its centralised structure and communication pathways.

Explore how culture improves organisational effectiveness with a focus on communication

The success of an organisation depends heavily on its culture. Lack of or a bad organisational culture can impede performance and productivity, while a good organisational culture can significantly increase organisational effectiveness. Organisational culture is crucial in the context of HSBC for influencing communication procedures and enhancing overall efficacy.

Culture and Communication at HSBC

The organisational culture at HSBC places a strong emphasis on stability, control, and open communication. This culture is reflected in the organization's formal communication policies and highly structured communication channels. HSBC has put in place a number of initiatives to increase communication effectiveness because it understands how crucial it is to achieving organisational goals. The creation of a Global Intranet Portal is one of the key initiatives that HSBC has put in place to enhance communication. Employee communication, knowledge sharing, and access to information are all made possible by the portal (Cameron & Quinn, 2011). Employees can easily find the information they need and communicate effectively thanks to the portal's user-friendly and intuitive design. The portal also offers blogs, forums, and other social media tools that promote interaction and information sharing. HSBC has also put in place a range of training courses and seminars designed to boost communication abilities. These courses cover a variety of subjects, such as conflict resolution, active listening, and effective communication (Schein, 2010). Employees who complete the training will be better equipped to interact with co-workers, clients, and stakeholders. Additionally, one of the main goals of HSBC's corporate social responsibility (CSR) initiatives has been to improve communication effectiveness. The company has put in place a number of programmes to encourage internal and external collaboration and communication. For instance, HSBC's Global Education Programme is made to assist young people in acquiring the abilities necessary for effective communication in a globalised world. A number of initiatives are included in the programme, such as the HSBC/UNESCO World Schools Programme, which aims to promote intercultural understanding and global citizenship.

Culture and Organizational Effectiveness at HSBC

The effectiveness of HSBC has increased significantly as a result of its organisational culture. With an emphasis on control, stability, and performance, HSBC has become one of the top financial institutions in the world. The organisation has been able to effectively and efficiently manage its operations thanks to its centralised structure and open lines of communication. Focusing on compliance and regulation has also aided HSBC in keeping up its standing as a dependable and honest institution. The culture at HSBC has also aided the company in finding and keeping talented employees. A culture of excellence has been developed within the organisation as a result of its dedication to performance and results, which inspires employees to give their best work. A sense of security and stability has also been produced as a result of the focus on control and stability, which is crucial for employee morale and motivation (Zohar& Marshall, 2000)

Overall, it can be said that Effective communication is a crucial aspect of organisational culture, which plays a significant role in increasing organisational effectiveness. Control, stability, and performance are valued highly at HSBC, which has enhanced communication and increased overall effectiveness. A Global Intranet Portal, training programmes, and CSR initiatives are just a few of the initiatives that HSBC has put in place to increase communication effectiveness. These initiatives have improved organisational effectiveness and assisted in luring and keeping talented employees, along with HSBC's strong culture of excellence (Sonnenfeld, 2018).

Evaluate the role of culture on employee motivation in HSBC

An essential component of organisational behaviour is the influence of culture on employee motivation. A well-known motivational theory called Maslow's hierarchy of needs has been used to explain how culture affects employee motivation. In this essay, Maslow's hierarchy of needs will be used to assess how HSBC's corporate culture affects employee motivation.

Maslow's Hierarchy of Needs and Culture

Maslow's hierarchy of needs is a motivational theory that describes how human needs are arranged in a hierarchy, with more complex needs like self-actualization at the top and fundamental physiological needs at the bottom. According to the theory, after lower-order needs are met, higher-order needs take over as the main motivator. The extent to which a person's needs are met and their higher-order needs are attended to are influenced by culture.

HSBC's Organizational Culture and Employee Motivation

The strong organisational culture at the multinational financial institution HSBC affects employee motivation. Employee behaviour is influenced by the organization's professional, compliant, and performance culture. The organisational culture at HSBC has a variety of effects on employee motivation.

1. First, cultural factors can affect the most fundamental human needs—physiological needs. The degree to which employees can meet their physiological needs, such as those for food, water, and shelter, can depend on the culture of HSBC. For instance, a long workweek culture may make it harder for employees to take care of their physical needs. A culture of long working hours can have a negative impact on employee well-being, resulting in decreased job satisfaction and lower organisational commitment, according to a study by Chiang, Tsai, and Liou (2020). Therefore, a work-life balance-friendly culture can aid HSBC employees in meeting their physiological needs, which will boost their motivation.
2. The second level of Maslow's hierarchy, known as safety needs, is concerned with the requirements for physical safety, employment security, and a secure working environment. The culture at HSBC may have a variety of effects on workers' needs in terms of safety. For instance, a transparent and open communication environment can help staff members feel valued and safe, which will increase their motivation. Employees in open work environments express greater levels of commitment to their employers and job satisfaction, according to Kacmar, Andrews, and Rooy (2017). On the other hand, a climate of distrust and fear can have a negative effect on workers' needs for safety, which lowers motivation.
3. Thirdly, Maslow's hierarchy's third level, social needs, refers to the desire for sociability, friendship, and a sense of community. HSBC's culture may have a variety of effects on employees' social needs. For instance, a culture that values teamwork and collaboration can motivate employees by helping them feel respected and valued. Teamwork and collaboration are positively correlated with job satisfaction and organisational commitment, per a study by Zhou and Lu (2020). On the other hand, an environment that values individualism and rivalry can have a negative effect on employees' social needs, which can lower motivation.
4. Fourthly, Maslow's hierarchy's fourth level, esteem needs, refers to the desire for acclaim, admiration, and success. A study by Liu, Huang, and Chen (2020) found that the culture of HSBC can have a variety of effects on employees' needs for respect. For instance, a culture that honours and rewards employees' accomplishments can spur them on to reach higher goals.
5. Last but not least, Maslow's fifth level of needs, self-actualization needs, refer to the need for self-fulfilment, personal development, and creativity. The culture at HSBC may have a variety of effects on employees' needs for self-actualization. For instance, a culture that values creativity and innovation can motivate staff members to reach their full potential.

How HSBC could use the culture of the organisation to further enhance its success

An organization's culture has a big impact on how successful it is. One of the biggest banking and financial services companies in the world, HSBC, can increase its success in a number of ways by leveraging its culture. In this section of the report, it will be determined whether HSBC can use its culture to increase its success.

• First: HSBC could encourage innovation and creativity through its culture. For businesses to stay competitive and relevant in the quickly evolving business environment, innovation and creativity are crucial. A culture of innovation can assist HSBC in creating new goods and services and enhancing already available ones. A study by Xu and Gao (2021) found that organisational culture has a positive impact on innovation performance. By fostering an atmosphere that encourages experimentation, risk-taking, and open communication, HSBC can promote innovation. For instance, HSBC could set up innovation labs where staff members could work together and try out new concepts.
• Second: HSBC could improve customer experience by leveraging its culture. For fostering customer loyalty and luring in new clients, a satisfying customer experience is essential. By highlighting the value of customer satisfaction and encouraging a customer-focused mentality among its staff, HSBC can foster a culture that is centred on the needs of its customers. An increase in customer loyalty and advocacy can result from a company's customer-centric culture, per a study by Kotler, Kartajaya, and Setiawan (2019). HSBC can teach its staff to pay attention to customer needs, offer individualised solutions, and surpass customer expectations.
• Thirdly: HSBC could promote inclusion and diversity by leveraging its culture. Creating a work environment that values and respects differences and attracting and retaining talent from a variety of backgrounds can both be facilitated by a diverse and inclusive culture at HSBC. Burke and Mattis's (2019) research found that diversity and inclusion have a positive impact on organisational commitment, job satisfaction, and employee engagement. By implementing practises and policies that support diversity at all organisational levels, such as hiring, promoting, and training, HSBC can foster diversity and inclusion. To assist underrepresented groups, HSBC may also create employee resource groups (Kapoor & Labianca, 2022).
• Fourth: HSBC could use its culture to support worker happiness. Enhancing employee engagement, job satisfaction, and productivity all depend on their well-being. By cultivating a culture that values work-life balance, mental health, and physical health, HSBC can advance employee wellbeing. Rajabi-Varmazyar, Neshat-Doost, and Ghorbani's (2019) research found that a supportive workplace environment has a positive impact on employees' well-being. In order to help staff members, balance their work and personal lives, HSBC can offer flexible work arrangements like job sharing, telecommuting, and flexible scheduling. Additionally, HSBC can help with mental health issues by offering programmes for stress reduction and counselling services.
• Last but not least, HSBC could use its culture to support moral conduct. Building credibility and trust with clients, investors, and other stakeholders requires ethical behaviour. By highlighting the value of ethical behaviour and offering resources and training to help with ethical decision-making, HSBC can foster an ethical culture. A study by Ammann and Oesch (2020) found that ethical culture has a positive impact on financial performance. HSBC can create a code of conduct that outlines moral standards and values and train staff members on how to spot and handle moral conundrums.

HSBC can use its culture to further enhance its success by fostering innovation and creativity, enhancing customer experience, promoting diversity and inclusion, promoting employee well-being, and promoting ethical behaviour. By creating a culture that supports these objectives, HSBC can attract and retain talent, build customer loyalty, and enhance its reputation as a socially responsible organization.

Conclusion

So, from the overall study it can be said that culture plays a significant role in shaping employee motivation and organizational success in HSBC. Through Maslow's hierarchy of needs, we have seen that employees' basic needs, such as job security and a sense of belonging, must be met before higher needs can be fulfilled. Moreover, an organization's culture can have a considerable impact on its performance and success. HSBC can leverage its existing culture to create a more inclusive and innovative workplace, fostering employee well-being and driving business growth. To enhance success, HSBC can establish a culture of diversity and inclusion, promoting a sense of belonging among employees. It can also promote an innovation culture, encouraging employees to take risks and develop creative solutions. Additionally, HSBC can foster a culture of employee well-being by prioritizing work-life balance and offering support for mental and physical health. By leveraging its culture, HSBC can create a more engaged and motivated workforce, leading to improved performance and a competitive advantage.

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