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Comparing Organization and Behavior between Nestle and HSBC

Nestle was found in 1866 by Hentri Nestle. Sales for 2009 were CHF 108 bn. Variety of employees around 280000 people and also have factories almost every country on the planet. The company's priority is to bring the best and most relevant products to people, wherever these are, whatever their needs throughout their lives. The business's strategy is guided by several fundamental principles.

Today Nestle present different markets in different main brands.

-coffee, ice-cream, other beverages like 'Milo', diary-shelf stable nestle, dairy-chilled nestle, infant nutrition, performance nutrition, healthcare-nutrition, soups, sause(pasta, seasoning), frozen foods, refrigerated products, chocolate, confectionary and biscuits.

Introduction to the HSBC-

Hong-kong and Shanghal Banking Corporation (HSBC) is a public limited company that is headquarted in London, England. The HSBC was founded in Hong-kong, china but was force to go to London in 1992. It's the major banking group in the world. It has many locations world-wide.

Chester Barnard(1938) defined a business as 'a system of co-operative human activities'. Organizational behaviour is the study and application of knowledge about how exactly people, individuals and groups act in organizations. The organizations base rests on management's philosophy, Values, vision and goals. The culture determines the types of leadership, communication and group dynamics within the business. The staff perceive this as the grade of work life which directs their degree of motivation. The final outcome are performance, individual satisfaction and personal growth and development. Each one of these elements combine to construct the model or frame work that the organization operates from.


Organizational structure

According Stoner et al. , (1995; 315) organization structure refers to "The way in which an organization's activities are divided, organized and co-ordinated". Therefore the structure of an organization establishes how work is allocated and controlled;how people and activities are grouped together;and the channels through which authority and communication are distributed within the organization

Both HSBC and Nestle organizations have formal organizational structures. the target is to survive, maximize their profits and also to expand their business. The strategic management enables to achieve competitive advantage and competitive position in global market. The formal organization structure really helps to achieve many objectives.

To link individuals in an established network of relationships

To group together the task required to match the objectives of the organization as a whole, and allocated them to suitable individuals for groups

To allocated individuals or groups the authority they required to perform their functions as well as the duty to account for their supervisors

This creates a hierarchy of command, whereby authority flows downward from senior to each degree of the organization

To enable the flow of work, information and other resources through the organization via clear lines of co-operation and communication.

There are numerous factors which in influences the structure of organization.

1. Organization's size- as a business gets larger its structure gets more technical. Therefore specification and subdivision are essential. Both HSBC and Nestle are global organizations. They are very large in proportions.

2. Organizations' task- the type of its work. Nestle is a nutrition, helth and wellness company and HSBC is one of the greatest financial and banking services industries in the global environment.

3. Organization's staff - the abilities and skills of staff will determine how the work is structured and the degree of supervision required. The staff of the Nestle is a lot bigger than HSBC because in HSBC almost all of the items are automated. but in Nestle most of the work should be done by human.

4. Legal, commercial, technical and social environment of organization- both are legal and technology is very high. And both companies related to the people in two ways.

In an organizational structure span of control is another important things. That means the number of subordinate immediately reporting to an excellent official. Nestle have narrow span of control since it has a huge number of degrees of management hierarchy and HSBC have a broad span of control since it has a tiny amount of hierarchical levels. Other important thing is decision making. When the decisions making doing by the top levels of the business it is called centralization and if it's doing throughout all levels of the organization then it is called decentralization. Nestle company believes strongly in decentralization. Regarding HSBC, also decentralized and all branches than it controlled by a central committee. But it also subdivided on national and domestic market.

Both companies are departmentalized on functional basis. You will find six functional departmentaion within Nestle;





Research and development


Organizational culture

Organizational culture varies from organization to organization. It really is difficult to define organizational culture. Deal & Kennedy. , (1982;4) defined organizational culture as " The way things get done around here" and J. A Stoner, R. E Freeman & D. R Gilbrert defined it as "Organizational culture is the group of important understanding such as norms, values, attitudes and beliefs shared by organizational members".

Culture of an organization depends on the management style and organizational structures that are used. It could be;

1. Role culture-This tells how regulations associated with employees and it is best suited for hierarchy organizational structure.

2. Task culture-This encourage the visitors to work as a team.

3. Power culture-This is at matrix structure and it is based on one dominant.

4. Person culture-This s predicated on person in the business to support and help in their work

HSBC have an efficient strong organizational culture. As part of this the management has initiated localization policies which can be opened for some higher levels within operating to nationals that enables the company to top high-quality employee from different part of world. Within the organization culture of HSBC it is respectable for work-ethic endorsement. This calls for the careful screening of employee with the required skills and high prospect of improvement.

Nestle have a organizational culture which vary from country to country since it is a food related organization. Nestle has good values;

It also commitment to a strong work, ethics, integrity, honesty and quality.

The personal relationships are based specialy on trust and mutual repect. This implies sociable attitude towards others.

Pride in adding to the performance of the company.

Effect of structure and culture on business performance

The relationship between organizational culture and structure can be an important. Nonetheless it is difficult to distinguish in one another. They are extremely much intertwined. Peter F Druker, a prominent author of management, politics, economy and society(1995;190) highlighted "organization structure is an indispensable means and the incorrect structure will seriously impair business performance and may even destroy it" Thus success or failure of out come of the organization depends on organizational structure.

How management works, which specific duties supervisors have, What sort of complaint is passed through the ranks each one of these issues within the organizational culture that are directly tied to how an organizational structure works.

The degree to which tasks in the business are subdivided into separate jobs( work specialization ) help makes efficient use of employee skills and it will increases employee skills through repetition. Also wider spans of management increases organizational efficiency. Departmentalization of organization also helps to give efficient work and facilitates group work.

The effect of the organizational culture are depending on whether the company has a strong culture or a weak culture. Therefore a strong organization culture will help take everyone more efficient and successful. If the members in the organization accept the core values and invest in those values, then your culture in that organization is strong when the culture is strong it'll then influence on the behaviour of its members all together. This influence the behaviour of everybody within the organization.

Strong cultures not just have a great impact on the behaviour of employees but also have a positive influence on the performance of the business. Therefore strong culture lead organizations towards high performance and success.

Approaches to management

Organizations are made up of managers and operatives. Operatives work directly on the work they have been assigned and aren't responsible to oversee the task of others. But managers are accountable for the actions of others to ensure that things 're going on as planned. The functions of management traditionally include;planning, organizing, commanding, co-ordinatng and control. But Managers' job cannot defined exactly.

The structure of HSBC provide better management over the complete organization. The management decisions within the business tend to be more flexible. Also as part of strategic management HSBC in addition has had the opportunity to constantly stock of its workforce and assess their performance in exciting job. The managers of HSBC also given extensive development and training.

In Nestle the members at management level tend to be more concerned with continuously adding value to the company than exercising formal authority. The managers of Nestle can motivate and develop people utilizing their own techniques and openminded and a high level appealing in other cultures and life styles.

Effectiveness of Leadership

Leadership can be an essential aspect to a group or a business to make it effective. 'Management' and 'Leadership' are interchangeable. Leadership can be discovered as the procedure of try to direct and fore others to attain objective or objectives of the groups or organizations.

Leadership styles are illustrates by theories of leadership. Leadership styles can be explained as how the functions of leadership are completed the way in which the first choice typically behaves towards members of the group or the business. In other words leader styles will be the patterns of behaviours which a leader adopts in influencing behaviour of his/ her followers. The different styles of leadership are;

Autocratic leadership style

Democratic leadership style

Laissez fair leadership style

Autocratic or authoritarian style

Under this leadership styles all decision making powers are centralized in the leader. They do not entertain any suggestions or initiatives from subordinates. It provide strong motivation to the manager. It permits quick decision making as only 1 person decides for the whole group and keeps each decision to himself until he feels it is needed to be shared with all of those other group.

Participative or democratic style

This can be seen as the contrary of the autocratic leadership style. On this style group functions as a whole and there are volume of interoperations. That means the functions of leadership are divided among members of the group or the members of the business. They win the co0operation with their group and can motivate them effectively and positively.

Laissez-fair or free rein style

In this the first choice assumes that all members of the group or the business will succeed. Such leader allows maximum freedom to subordinates. Therefore the leader dose not interfere to the works of the members. If the members need any help, the leader provides the necessary assistance. This is different from a predicament where the leader is not considering about his functions and trying to avoid problem situations.

The effectiveness of the above leadership styles may different from one situation to some other situation. The success of a leader is measured by output or productivity of the group they lead but success is not effectiveness. In the event the subordinate follows the leader because of his position power, the first choice is successful but not effective. The first choice leads to a successful response and subordinate does the work because it is personally rewarding, it can be seen that the leader has not only positional power but also personal power. Then subordinates respect the first choice and they're willing to compare realizing that the leader's request is consistent with some personal goal. Then it could be identified that the first choice works well.

The factors affecting leadership effectiveness.

The characteristics of leader

Personality, attitudes, value system of the leader

The relationship between leader and the group

Characteristics of subordinates/group members

The nature of the task organization

Relationship among subordinates/group members

Motivation and Motivational Theories

A work place has members of group and the group has to achieve a target or objectives. Thus the objectives or objectives can be achieved by the combined effort of its group members. Because of this effort to accomplish objective or objectives proficiently and effectively, motivation of the group members should be there. It is therefore necessary to learn how to motivate group members of workplace. There will vary theories of motivation attemptedto explain the type of motivation. These theories show that we now have many motives that influence people's behaviour.

There are four theories of motivation;

Maslow's Hierachy of Needs Theory

Herzberg's Two Factor Theory

Alderfer's Modified Needs Theory

McClelland's Achievement Motivation Theory

1. Maslow's Hierachy of Needs Theory

This motivation theory produced by Abraham Maslow and according to him people has been with needs and what they want is determined by what they already have. He suggests that human needs are arranged in a series of levels depicting a hierarchy worth focusing on. That is why theory is named as hierarchy of needs' theory.


Actualization Need

Esteem Need

Love Need

Safety Needs

Physiological Needs

Pyramidal diagram for Maslow's Hierarchy of Needs

Physiological Needs- In this need people try to meet their basic need for food, shelter and clothing. In work place if one is paid enough salary to keep up above needs then employee engage with work willingly.

Safety Needs-When physiological needs satisfied to reasonable level next important level is safety need. If indeed they satisfied with safety needs people can be motivated by introducing pension schemes and by introducing projects for labour safety.

Love Needs-Then they expect love and affection. Whenever a leader know that such have to be prevailing within members of his/her workplace, the leader can be used following strategies.

Providing opportunities for group entertainment

Put them to work in groups

Let these to more with groups in which they have affection

Esteem Needs-At this level employee are concern with self respect, self-confidence, a feeling of personal worth feelings of being unique and recognition. Here motivation can be exercised by providing positional status, appreciating, giving awards etc.

Self-Actualization Needs-This is the highest need and it is the necessity to minimize one's potential, whatever it may be. Here the individual can be motivated by maximizing the benefits provided to the individual earlier in line with personal goals.

2. Herzberg's Two Factor Theory

Herzberg identified that there were two sets of factors affecting motivation and work. He introduced these factors as ' hygiene factor' and 'motivators'.

Hygiene/Maintenance factor- Herzberg determined pay, job security, status, work environment, rules and regulations, nature of interpersonal relations and personal esteems as hygiene factors. By this factor dissatisfaction can eliminate because this factor is related job context and they worried about job environment and extrinsic to the work itself.

Motivators/Growth factor- Herzberg discovered recognition, responsibility, room for development and workplace as motivator factors. It'll lead to motivate employees. That means motivators are serve to motivation individual to superior effort and high level of performance. These are related to job content of the task itself.

In a workplace according to this theory by providing hygiene factors dissatisfaction of the employees can be removed and by giving motivators, employees can be kept satisfied.

3. Alderfer's Modified Needs Theory

This theory was introduced by Alderferand by this theory he condensed five levels of needs as Maslow's Hierarchy of Needs Theory into three degrees of core needs. They may be;




Maslow's Hierachy of Needs Theory

Alderfer's Modified Needs Hierachy Teory

Physiological Needs

Esistence Needs

Safety needs

Relatedness Needs

Love Needs

Esteem Needs

Growth Needs

Self-Actualization Needs

Relationship between Maslow's hierarchy of needs theory and Alderfer's modified needs hierarchy theory

According to the Alderfer's modified needs hierarchy theory a person is motivated to safety, one or more basic sets of needs. Therefore if someone's needs at a specific level are blocked then attention should be centered on the satisfaction of needs at the other levels

4. McClelland's Achievement Motivation Theory

This theory was presented by McClelland's and colleagues plus they recognized three main arousal based and socially developed motives. They can be;

Needs for Affiliation

Needs for Power

Needs for Achievement

In this theory they discovered the desire for friendly and close interpersonal relationship as needs for affiliation. The necessity to make others behave in a way that they might not behave otherwise was recognized the derive to excel to accomplish in relation to group of standards also to make an effort to succeed as needs for achievement.

Ho Individual behaviour at work

H However relative intensity of afflation; power and achievement motives varies among individuals Mc Celland and his colleagues discovered 3 common characteristics among people who have high achievement needs. These characteristics were ;

1. The preferences for personal responsibility

2. The setting of moderate goals

3. The desire to have concrete feedback

In a work place to achieve goal efficiently the setting of moderate gal is important because the task should be easy to accomplish with just a little challenge and feed back is essential for self evaluation. Feedback allows to determine success or failure in the accomplishment with their goals and derive satisfaction from their activities.

In an organizations individuals/members are another important element. In a organization the social system includes all the folks in it and their relationship to one another and to the exterior world. The behaviour of an individual can impact either directly or indirectly on the behaviour of others. The major factors which influence individual behaviour at work is as follows;

Demographicfactors-Those are socio-economic background, education, nationality, age, sex etc. . Normally organization prefer individuals that participate in good socio-economic background, well educated and young person than others because they think that they high work performances.

Ability and skills-Ability can be defined as the individual can do and skill can be defined as the ability to act in a way to execute well. Therefore individual behaviour is highly influence by the skills and skills to provide a good performance.

Personality-This can be defined as the characteristics of an individual's thoughts, feelings and behaviours. Heredity, family, society, culture and situation are factors which influence personality. It helps individuals in directing their effort and motivating them for attaining of the organizational goal.

Attitude-The other most important factor is attitude of a person. It could be defined as a tendency to respond favorably or unfavorably to certain states.

Three basic components are containing in attitudes. They can be;

- Knowledge and beliefs

-Feelings and desire

- Volition and will

Perception-This can be defined as the psychological process by which incoming data are selected and organized into patterns that happen to be meaningful to the individual.

Group behaviour in a organization

A group can be explained as a collection of individuals to achieve the goal/task. The members of the group are depending on each other Groups have grown to be the core unit in many organizations. The group can be small or large to form a group there must be more than two individuals but there is absolutely no specific limit for the utmost number. It rely upon the aim of the group. Within an organization there are rules an regulations which control the actions of group. Also group influence their member's attitudes and behaviour. Therefore groups are inseparable from organization. Group increase organization stability and it facilitate changes in organization procedures and policies. Therefore there exists important impact of groups on organizational effectiveness.

Group dynamics describe about group formation, norms, decision making, contributing. So that it shows what sort of group should be organized, operated and conducted. It really is a couple of techniques.

Teamwork is vital in an organization to accomplish it's goals. An effective team always have clear team goals that encourage team members to replace priority of individual goals your of team one Also there should be effective team leader who are able to motivate team members even in difficult situation.

Effective teamwork can be archived through effective team building and teamwork is always good for organizations. Teamwork increases flexibility and speed of the work because one task s is done by several individual with deferent skills.

Stephen R. Covey define teams in organizations as "An empowered organizations is one where individuals have the data, skill, desire and chance to personally flourish in a way that contributes to collective organizational success".


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