HND in Business Management

Organization and Behavior

Student name: Thevakumar Nitharsan

Course name: HND in BM

Module name: Organization and Behavior

Batch no: 32

Lecturer name: Mr.Frank Gunasekera

Executive summary
This report consists of two companies they are Nokia and Commercial bank

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The history of Nokia goes back to 1865. That was when Fredrik Idestam built a wood pulp mill
on the banks of the Tammerkoski rapids, in southern Finland. A few years later, he built a
second mill by the Nokianvirta river – the place that gave Nokia its name.

Nokia’s organizational structure is designed to position them for a world where the mobile
device, the Internet and the computer are fusing together. The organizational structure of Nokia
is functional structure.

The birth of Com Bank roots back to 1920s’ during the British colonial regime when trade,
commerce and enterprises like Banks opened up in Sri Lanka. In 1969 Commercial Bank of
Ceylon gathered momentum when it became a totally independent entity. So began an unbroken
tradition of excellence in service that has continued to what it is today; the Best Bank in Sri
Lanka.

The organization structure of Commercial Bank is also the similar to the Nokia organization
structure,. Power, responsibility and authority are concentrated at the top and the decisions flow
from to down. But at Commercial Bank they have a wide span of control where the manager is
responsible for many subordinates

Acknowledgements

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I would take this opportunity to thank all the people who supported me in doing this report.

Firstly, I would like to thank my lecturer, Mr. Frank Gunasekara for helping me out to
understand this report and guiding me. Thank you for the immense support given to me on this
report and given perfect knowledge of the subject.

The Directorate of ICBT and mostly the computer section for provided computer facilities in the
campus for my colleagues and me.

Also I would like to thank my dearest parents and friends who were with me whenever I needed
help and encouragement from them.

Once again I would like to thank all those who helped me to complete this report.

Table of contents
Content………………………………………………………………………........Page No

(P1) Task 1 (p1.1-P1.2) Organizational structure and Culture of organizations

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(P1.1) & (P1.2)……………………………………………………………………..5

(P1.3) Diagnose behavioral

problems…………………………………………………………………………….18

(P2)

(P2.1)… The development of

management……………………………………………………………….22

(P2.2)… Managerial roles of Nokia and Commercial

bank………………………………………………………………………….26

Conclusion………………………………………………………………………….29

References…………………………………………………………………………..30

Task 1 (p1.1-P1.2) Organizational structure and Culture of organizations

Nokia

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"Connecting people" is now connecting people to what matters - whatever that means for each
person - giving them the power to make the most of every moment, everywhere, any time.
Connecting the "we" is more powerful than just the individual. That's how Nokia is needed to
help make the world a better place for everyone.

To do this we will become the leading provider of mobile solutions. Our solutions strategy
leverages one of our greatest assets - a portfolio of outstanding devices, with unmatched scale
and geographic reach. We couple them with smart services, integrated via an intuitive and
seamless user experience. We differentiate these solutions offerings based on our in-depth
consumer understanding, with a strong focus on social location (people and places).

In a world where connecting people to what matters, empowers them to make the most of every
moment. Our ambition is to become the leading provider of mobile solutions

Organizational structure of Nokia

Nokia’s organizational structure is designed to position them for a world where the mobile
device, the Internet and the computer are fusing together.

Mobile Solutions is responsible for developing

and managing Nokia’sportfolio of smartphones
and mobile computers. The team is also busy
developing a world-class suite of internet
services under the Ovi brand, with a strong
focus on maps and navigation, music, messaging
and media. Mobile Phones is responsible for
developing and managing our portfolio of
affordable mobile phones, as well as a range of
services that people can access with them.
Markets manages Nokia’s supply chains, sales channels, brand and marketing activities, and is
responsible for delivering our mobile solutions and mobile phones to the market.

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Nokia Siemens Networks, jointly owned by Nokia and Siemens, provides wireless and fixed
network infrastructure, communications and networks service platforms, as well as professional
services to operators and service providers.

NAVTEQ is a leading provider of comprehensive digital map data and related location-based
content and services for automotive navigation systems, mobile navigation devices, Internet-
based mapping applications, and government and business solutions.

The Organizational Structure of Nokia

Managing Director

Marketing Production Finance HR

The organizational structure of Nokia is functional structure which is dividing the

organization according to the departments there are 4 layers in the organizational structure.

Decentralization method is used in Nokia. The reasons for using this method is

 Senior managers have time to concentrate on the most important decisions (as the other
decisions can be undertaken by other people down the organisation structure.
 Decision making is a form of empowerment. Empowerment can increase motivation and
therefore mean that staff output increases.
 People lower down the chain have a greater understanding of the environment they work
in and the people (customers and colleagues) that they interact with.  This knowledge

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skills and experience may enable them to make more effective decisions than senior
managers

Culture within Nokia

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Culture is about how the organization organizes itself, its rules, procedures and beliefs make up the
culture of a company.

All individuals with different backgrounds, different ethnics and nations are teamed up and
driven towards a common set of goals and objectives at Nokia. The company has been successful
in focusing the entire team towards a single vision by incorporating all individuals’ goals and
personal objectives together. Nokia strives to create a culture compatible with its strategic
business model through the core value of integrity.

Nokia is a big company but they got the dynamic, restless feel of a much smaller one. Which
means they can respond to problems quickly.And get solutions off the ground fast.

Forget bureaucracy – this is a place where everyone feels free to express their ideas. They are
committed to helping their people be the best they can be, and they give them the training and
tools they need to get there. And of course, they’re a global company. So they work flexibly and
with an eye on the bigger picture, adapting to the needs of different cultures and perspectives.

But in the end, it’s their values that make us different. They provide a sense of direction for
consistent behavior as employees and citizens of the world, and in our quest to be a great internet
company. These values aren’t just about marketing speak or window dressing – they live and
breathe them every day. It’s part of the reason why you can always recognize a Nokia person, no
matter where they are in the world……..

Flexible Working

Mobile Working and Teleworking:

They recognize the diverse needs of the individuals in the different phases of their lives. They
can provide their employees with innovative solutions aiming at having positive effects on the
overall quality of life, job satisfaction and job performance. Depending on the situation and
needs, flexible working solutions can provide alternative modes of working such as teleworking
at home or at other locations (e.g. working at remote sites).

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Time Off:

Nokia´s flexible working solutions can include unpaid time off and sabbaticals. These solutions
support Nokia´s philosophy of Employee Personal Growth and Self-management and enable
employees to take extented leave from work.

Health-care Services

Nokia aims to maintain and improve the working environment and well-being of its employees.
In order to ensure the physical well-being of employees Nokia offers amongst others medical
check-ups, counseling and insurance programs to the employees.

Volunteering

Volunteering is yet another way to help create a balance between personal convictions and
professional lives. Nokia's global volunteer program Nokia Helping Hands gives employees a
chance to contribute their time and effort to worthy causes in their communities. Nokia
employees can use 1-2 working days per year for Nokia Helping Hands volunteering.

Other Services

They offer fitness facilities and programs as well as other sporting, social and cultural activities,
which promote workplace relationships as well as personal development and comfort. These
well-being services may also include laundry service, cafeteria, take-away food, day care and on-
site concierge services, among others.

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The content and selection of services varies in different countries, according to local practice,
legislation and other factors.

As well all know Nokia has the largest market share when compare to its competitors such as
Motorola, Samsung, and LG etc. Nokia has the 70% of market share worldwide in the mobile
phones and devices market. Nokia is the market leader in its business of mobile handheld
devices. Nokia achieved this by its successful combination of structure and culture in its
organizational activities.

Commercial Bank

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The birth of Com Bank roots back to 1920s’ during the British colonial regime when trade,
commerce and enterprises like Banks opened up in Sri Lanka. In 1969 Commercial Bank of
Ceylon gathered momentum when it became a totally independent entity. So began an unbroken
tradition of excellence in service that has continued to what it is today; the Best Bank in Sri
Lanka.

In 1920, The Eastern Bank opened a branch at Chatham Street Colombo little realizing they were
laying the foundation to what was to become, a byword in Banking! As business became good
with the Donourmough constitutional reforms, they moved to the heart of the premier business
area at 57, Sir Baron Jayatilleke Mawatha, Colombo in 1939. After the independence in 1948,
trade flourished in Sri Lanka and as a consequent; the share capital of Eastern Bank Ltd was
acquired by the Chartered Bank in 1957. A decade later in 1969, Commercial Bank of Ceylon
was duly incorporated in Ceylon, with The Eastern Bank holding 40% of its equity. Later in
1971, the business of the Eastern Bank was taken over by the Commercial Bank of Ceylon
Limited.

Expansion of the corporate business

After the 2nd Constitution in 1978, and under the liberalized economy, offshore banking was
established. Hence, in 1979 Commercial Bank opened its first Foreign Currency Banking Unit to
promote off-shore banking business.

Despite the social unrest in early 80’s the bank took a significant turn in 1984; Commercial Bank
moved its operations to a centralized location at the newly constructed head office branded as the
“Commercial House” at 21 Bristol Street, Colombo. Then in 1985 the status of the Foreign
Department of the Bank was elevated to that of a fully-fledged branch. This move completed the
reorganization process. Now the City Office, Foreign Branch and Head Office segregated the
different operations of the Bank.

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During the late 1980’s business expanded; two associate companies Commercial Insurance
Services (Pvt.) Ltd. and Commercial Leasing Ltd. were formed. Then again in 1991, associate
Company Commercial Stock Brokers (Pvt.) Ltd., commenced operations with the bank owning
40% equity participation. Then in 1992, Commercial Fund Management (Pvt.) Ltd. was formed
for the purpose of operating unit trusts where the bank enjoyed 50% equity participation. In
1996, the bank increased its shareholding in Commercial Development Company Ltd. (an
independent entity, dealing in property development) to 94.55% by means of a share swap.

1999, marked the year for another major event when banking and super marketing were
combined with the opening of the first "Mini Com" at the Staple Street Cargills Food City outlet.
In 2003, the bank took over the operations of Credit Agricole Indosuez in Bangladesh making its
first overseas foray. Then in 2005, Commercial Bank raised US $65 million 2 year syndicated
loan with the option to extend it further for another year at the option of the lender. This was the
first such loan given to a non-sovereign corporate in the country. The Bank made a scrip issue on
the basis of 1:1 in 2006 and also successfully raised US $10 million by issuing 5 year bonds.
This was another first for an indigenous bank in Sri Lanka.

They are known as, the benchmark private sector bank in Sri Lanka. Over the years, they have
with clear vision, set standards, created an identity and forged a unique trend in banking that has
brought them recognition year after year. They have maintained their cultural identity, reached
to the grass roots and created a style that has set the trend. Today, their superlative range of
products and services, powered by state-of-the-art technological superiority and peopled by a
dynamic, highly motivated team have made them what they are, the most progressive bank in Sri
Lanka.

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Vision

"To be the most technologically advanced, innovative and customer friendly financial services
organisation in Sri Lanka, poised for further expansion in South Asia"

Mission

"Providing reliable, innovative, customer friendly financial services, utilising cutting edge
technology and focusing continuously on productivity improvement whilst developing our staff
and acquiring necessary expertise to expand locally and regionally

The structure
Chairman/ Board
of Directors

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Governor

Audit Committee
Adviser

Internal Audit

Economic
Research
Department

First Deputy Second Deputy

Governor Governor

Financial Banking Services

Supervision Department
Department
Administration
Department
Foreign
Department
Finance
Department
Micro Finance
Department
Information
Technology
Unit
Risk
Legal Unit
Management

The organization structure of Commercial Bank is also the similar to the Nokia organization
structure,. Power, responsibility and authority are concentrated at the top and the decisions flow

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from to down. But at Commercial Bank they have a wide span of control where the manager is
responsible for many subordinates. Less supervision and control can create a more positive
attitude among employees, who appreciate the extra trust and freedom.

The culture of Commercial bank

Commercial bank mainly depends and believes on the Task culture which is working as a team
to achieve the desired goals and objectives of an organization. The bank strongly believes that
unity is the key to success .Organizational activities at Commercial are shared and divided
among the staff of the company .its organizational structure helps the company in a major way to
achieve this.
One of the known practices within the Commercial’s organizational culture is its high regard for
work-ethic endorsement. This practice involves the careful screening of employees with the
necessary skills and high potentials for improvement. Through this culture, the Commercial are
able to create an effective workforce that is determined to succeed and is highly committed to
work, family and to the company.

Flexible working times

There two type of employees are working at Commercial they are part time employees and Full
time employees . Daily working hours are 8 and an employee reported to start work at 8 in the
morning can stop work at sharp 4 .

The human resource function

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Personnel management

The functions or activities of a single person or a group of people for the good of the employees
Is called as Personnel management .The function of personnel management usually begins with
the staffing process. The screening and interviewing applicants, with an eye to placing
individuals with the right skill sets in the right position within the company. Along with
placement, the HR manager may also oversee, or at least be involved in, the creation of entry
level training programs, as well as continuing education opportunities for existing employees.

Personnel policies

These policies provide access to gain the personnel goals or objectives.

Strategies and operating plans

These goals and plans are used by the HR managers in organizations to make sure the have the
adequate amount of human resource to meet their organizational needs

Strategic goals for personnel

Strategic goals for personnel are the planning and implementing objectives in the personnel
policies for example ,Certain objectives may be implemented in the hiring process of an
organization.

(P1)(P1.3) Diagnose behavioral problems

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According to Maslow’s theory the needs of the employees such Physiological, Safety, social,
Esteem and actualization has to be fulfilled to motivate the employees to make them to work on
towards the organizations objectives and goals.

Motivation is the set of forces that cause people to behave in certain way. From the manger’s
viewpoint, the objective is to motivate people to behave in ways that are in the organization’s
best interest. (Moorhead & Griffin 1995, p.78) From another way, motivation is the term used to
describe those processes, both instinctive and rational,
by which people seek to satisfy the basic drives,
perceived needs and personal goals, which trigger
human behavior. (Cole 1995, p.119) And other writers
defined the study of motivation is concerned with why
people behave in a certain way, and with what
determines the direction and persistence of their
actions. Levels of work performance are determined not
only by the ability of staff but also by the strength of
their motivation. If staffs are to perform to the best of
their abilities, attention must also be given to the nature
of work motivation and job satisfaction. (Mullins 2001, p.223) Motivation represents the forces
acting on or within a person that cause the person to behave in a specific, goal- directed manager.
(Hellriegel & Slocum 1995, p.170)

Physiological Needs

Physiological needs are those required to sustain life, such as:

 air
 water
 nourishment
 sleep

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According to Maslow's theory, if such needs are not satisfied then one's motivation will arise
from the quest to satisfy them. Higher needs such as social needs and esteem are not felt until
one has met the needs basic to one's bodily functioning.

Safety

Once physiological needs are met, one's attention turns to safety and security in order to be free
from the threat of physical and emotional harm. Such needs might be fulfilled by:

 Living in a safe area

 Medical insurance
 Job security
 Financial reserves

According to Maslow's hierarchy, if a person feels that he or she is in harm's way, higher needs
will not receive much attention.

Social Needs

Once a person has met the lower level physiological and safety needs, higher level needs become
important, the first of which are social needs. Social needs are those related to interaction with
other people and may include:

 Need for friends

 Need for belonging
 Need to give and receive love

Esteem

Once a person feels a sense of "belonging", the need to feel important arises. Esteem needs may
be classified as internal or external. Internal esteem needs are those related to self-esteem such as

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self respect and achievement. External esteem needs are those such as social status and
recognition. Some esteem needs are:

 Self-respect
 Achievement
 Attention
 Recognition
 Reputation

Maslow later refined his model to include a level between esteem needs and self-actualization:
the need for knowledge and aesthetics.

Self-Actualization

The summit of Maslow's hierarchy of needs. It is the quest of reaching one's full potential as a
person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically
there are always new opportunities to continue to grow.

Self-actualized people tend to have needs such as:

 Truth
 Justice
 Wisdom
 Meaning

Self-actualized persons have frequent occurrences of peak experiences, which are energized
moments of profound happiness and harmony. According to Maslow, only a small percentage of
the population reaches the level of self-actualization.

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An organization can motivate its employees by

Physiological needs:
Provide lunch breaks, rest breaks, and wages that are sufficient to purchase the essentials of life.

Safety Needs:
Provide a safe working environment, retirement benefits, and job security. Social Needs: Create
a sense of community via team-based projects and social events.

Esteem Needs:
Recognize achievements to make employees feel appreciated and valued. Offer job titles that
convey the importance of the position. Self-Actualization: Provide employees a challenge and
the opportunity to reach their full career potential.

Self-Actualization: These are the needs which cannot be satisfied because they change time to
time .

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(P2)(P2.1)The development of management through certain theories

Scientific management

Scientific management involves using scientific methods to determine the best way for a job to
be done. By using scientific application as statistics, optimization models, information models
for management activities might lead to continuous improvements and responsiveness to
customers’ needs and expectations.

Classical administration

.The classical management consists of Scientific management and administrative management

this method failed because in this method the human resources are treated like machines and this
method assumes they do not have any feelings.

Bureaucracy

Certain rules and regulations which are used by the organizations to monitor its activities

Human relations and contingency approaches

Human relations theory is also known by various names like Humanistic Theory, Neoclassical
Theory, etc. Elton Mayo, an American Sociologist is the founder of the Human Relations
Theory. The other writers who contributed to the growth of this theory are William Dickson,
North Whitehead, W. Lloyd, and L. J. Henderson, among many others. The Hawthorne
Experiment (1924-1932) conducted in the Western Electric Company at Hawthorne near
Chicago by the Harvard Business School under the leadership of Elton Mayo formed the basis
for the rise of the Human Relations Theory of Organization.

The idea that the organizational structures and control systems manager choose depend on²are
contingent on²characteristics of the external environment in which the organization operates.
Assumes there is no one best way to manage. The environment impacts the firm and managers
must be flexible to react to environmental changes. In rapidly changing organizational
environments, managers must

Find ways to coordinate different departments to respond quickly and effectively.

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The functions of management

No limit the largest fashion outlet in Sri Lanka is planning to open their new branch in
bambalapitya since there no No limit branches in this area this decision was made by the CEO of
the organization. They have chosen to open their new branch near St.Lawrences Road in
Bambalatipitya after carefully positioning the place.

The planning functions of the No Limit manager will be defining the goals .creating strategies,
and implementing action plans to coordinate these activities. The main objective is to fill the
geographical gap in the business and sell clothes in Bambalapitya. Selecting the suitable budget
for this business project is a planning function of the manager at No limit.

The organizing functions will be how the tasks are going to be done, who are going to do them
m, how the tasks are going to be grouped, who is going to report to whom etc.Increasing the
customer awareness, dividing the tasks between the employees etc comes under Organizing
function .

The manager of the HR division has to perform many tasks in this business project such as
Recruiting, Training, Motivating etc .The HR manger at No limit will advertise about the job
vacancies and calls the selected candidates to the interview .The correct candidate with correct
skills will be selected for the job positions. They will provided with industry based training
facilities. This function is called as Staffing.

At the leading function the HR manager will involved in activities such as motivating the
employees (financial and non financial) .The manager assigned to the control will deal with
standard ,quality and performance based issues at No Limit .

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(P2)(P2.2) Managerial roles of Nokia and Commercial bank

Nokia Interpersonal

Figurehead role -
Symbolic leader of the Nokia performing duties of social and legal character.The manager will
be engaged in activities such as attending ribbon-cutting ceremonies, hosting receptions,
presentations and other activities

Leader role -
Motivating subordinates interaction with them, selection and training of employees.The manger
assigned to this role will train ,motivate and directs the employees in Nokia .

Liaison role -

Establishing contacts with managers and specialists of other divisions and organizations,
informing subordinates of these contacts. Participating in meetings keeping contacts with
representatives of other organizations such as Samsung.

Nokia Informational

Monitor role –The manager at Nokia will Seek and acquire work-related
information to the company. Scan/read trade press, periodicals, reports attend seminars and
training; maintaining personal contacts are the activities of the manager at the monitor level in
Nokia .

Disseminator – The person who has the authority to transfer the information or pass the
information at Nokia by staff meetings and conferences .

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Spokes person-The manager who speaks about the company in events and addresses the
company is called as spokes person .

Nokia Decisional

Entrepreneur –The person who comes with new product ideas and innovativeness is called as an
Entrepreneur .

Disturbance handler –The manager who handles the problems among the employees and come
up with solutions is called as Disturbance handler.

Resource allocator – The manager who allocates the resources such as raw materials for
efficiency and maximum productivity comes under this role

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Commercial Bank Interpersonal

Figurehead role -
The person who represents Commercial bank as a banks representative is called as figure head.
Attending ribbon cutting functions ,branch opening functions are the activities of a manager at
Commercial bank assigned to this role .

Leader role -
Motivating subordinates interaction with them, selection and training of employees.The manger
assigned to this role will train ,motivate and directs the employees at Commercial bank .

Liaison role -
The manager who Creates relationships with the people who are outside the organization is
called as a Liaison .

Commercial Bank Informational

Monitor role –The manager who monitors the quality of their services in order provide
improved and unmatched services is called as Monitor

Disseminator –the manager who conveys the information through the bank is called as a
disseminator

Spokes person-The manager who speaks about the company in events and addresses the
company is called as spokes person .

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Commercial Bank Decisional

Entrepreneur –The person who comes with ideas to introduce new services and feautures for the
development of the organization

Disturbance handler –The manager who handles the grievances among the employees is called
as Disturbance handler.

Resource allocator – The manager who allocates the resources such as employees to get things
done effectively as well as efficiently .

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Conclusion

Nokia’s organizational structure is designed to position them for a world where the mobile
device, the Internet and the computer are fusing together. The organizational structure of Nokia
is functional structure which is dividing the organization according to the departments there are 4
layers in the organizational structure. Culture is about how the organization organizes itself, its rules,
procedures and beliefs make up the culture of a company. All individuals with different backgrounds,
different ethnics and nations are teamed up and driven towards a common set of goals and objectives at
Nokia. The organization structure of Commercial Bank is also the similar to the Nokia organization
structure,. Power, responsibility and authority are concentrated at the top and the decisions flow from
to down. According to Maslow’s theory the needs of the employees such Physiological, Safety,
social, Esteem and actualization has to be fulfilled to motivate the employees to make them to
work on towards the organizations objectives and goals.The functions of a manager in an
organization are Planning , organizing , staffing ,leading and controlling . The roles of a manger
can be categorized into three according to Mintz berg they are Interpersonal ,informational and
decisional therefore we can come to a conclusion that the the tasks will differ among managers
according to the roles which they have been assigned to and culture and structure play a vital part
in any organizations they are used by the CEO’s to achieve the objectives and goals in
organizations .

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References
http://sawaal.ibibo.com/exams-education-and-references/introduction-about-commercial-bank-
detail-777365.html

http://faculty.chicagobooth.edu/raghuram.rajan/research/papers/firewall.pdf

http://www.wfccb.com/e2.asp

http://en.wikipedia.org/wiki/Public_administration

http://www.wordiq.com/definition/Bureaucracy

Moorhead, G. & Griffin, R.W. 1995, Organization Behavior: Managing

People and Organization, Houghton Mifflin Company, Boston.

2.Cole, G.A. 1995, Organization Behavior, DP Publications Ltd, London.

3.Mullins, L.J. 2001, Hospitality Management and Organizational Behavior,

Pearson Education Limited, London.

4.Hellriegel, D. & Slocum, J.W. 1995, Organization Behavior, West

Publishing Company, New York

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