Leadership and Organizational Behavior

This assignment examines the complex interplay between leadership, employee motivation, and organizational performance. Students are tasked with analyzing various leadership theories, exploring their impact on work engagement and organizational citizenship behaviors (OCBs). The assignment emphasizes understanding the connection between effective leadership, motivated employees, and a positive organizational climate.

ORGANIZATION
BEHAVIOR

TABLE OF CONTENTS
INTRODUCTION.........................................................................................................................................3
TASK 1..........................................................................................................................................................3
1.1...............................................................................................................................................................3
1.2...............................................................................................................................................................4
1.3...............................................................................................................................................................4
TASK 2..........................................................................................................................................................5
2.1...............................................................................................................................................................5
2.2...............................................................................................................................................................5
2.3...............................................................................................................................................................6
3.1...............................................................................................................................................................7
3.2...............................................................................................................................................................7
3.3...............................................................................................................................................................8
4.1...............................................................................................................................................................8
4.2...............................................................................................................................................................9
4.3.............................................................................................................................................................10
CONCLUSION............................................................................................................................................10
REFERENCES............................................................................................................................................11

INTRODUCTION
Organization behavior is the study of individuals within an entity to know their performance
level. The purpose of this study is to describe about the behavior of people working in City Collage and
Enterprise Car Rental. This report will show the relationship between organizational culture and its
structure. Through this, learner will be able to describe about various styles of leadership which helps
management to improve its productivity and efficiency (Pinder, 2014). Different motivational theories
will be defined to motivate employees towards their job. This report will also describe about impact of
latest technology on performance of both organizations.
TASK 1
1.1
Structure of an organization means arranging authority and management in a line. The work
culture of company is affected by decisions of management. So structure and culture of an enterprise are
connected with each other. There are following difference between cultures and structures of two entities:
City College
This college has a flat organization culture where principal is higher authority and three
departments namely teaching, HR and administration follow orders of him. Decision making power is
centralized at top management i.e. principal of college. This type of structure is generally followed by
undertakings those involves few number of employees and workers. This institution follows Handy’s
model of organization culture which involves four cultures such as power, task, person and role
(Obiwuru, et.al., 2011). By adoption of power culture whole command of this college remains with higher
authority i.e. principal. Staff members are not involved in making any decisions about their improvement.
Enterprise car rental
This enterprise has a tall structure that involves number of layers of management. General
Manager of firm comes at top of management who has a control over its employees and workers. It has a
layer of management from top to bottom such as general manager – regional group of city – front line
management – employees. It follows Edgar Schein’s model for organizational culture that includes
elements i.e. artifacts, espoused values and basic underlying assumption. Here, all levels of management
take part in all decisions related to firm (Jones, 2010). According to this work culture behavior, beliefs,
and attitude of staff has a great importance.

Figure 1: Tall and Flat organizational structure
(Source: Colquitt, Lepine. and Wesson, 2011)
1.2
There is a significant impact on culture and structure of both City College and Enterprise Car
Rental. The hierarchy of management of Enterprise Car rental must be people centric that show
participation of employees in all activities of firm. This thing assists this company to improve its
productivity and profits. The way in which managers of this entity treat its staff reflects attitude of
organization towards its customers. A people oriented structure of an entity creates a good and friendly
environment within a workplace (Mowday, Porter and Steers, 2013). It helps managers to motivate its
workers and employees which will boost their working efficiency which helps in growth of business.
City College has a flat structure where three departments work under its principal. It is the
responsibility of management of this college to introduce various policies related to reward to motivate its
staff and students. This helps to improve its working efficiency. It is a human tendency that they required
a kick to do something good and reward plays the role of such push to both students and staff members.
The relationship between employees and management must be good because it will reflect the relations of
college management with its students. This assists college to improve its brand image among all other
institutions. Therefore, structure and culture of a corporation has both positive as well as negative impact
on performance of business.

1.3
In an organization some factors exist which influence the behavior of people working there are
generally depends on circumstances and situations. There are so many factors which affects
organizational behavior such as attitude, perception, personality, abilities, intelligence, knowledge, etc.
The factors that influence behavior of people of both City Collage and Enterprise Car Rental are
explained below:
 Personality: This shows the character of a person which involves the way of thinking, feeling and
behaving of individual. It is an independent, self control, agreeableness and conscientiousness
characteristic of a person (Taormina and Gao, 2013). A human being who has patience and
understanding may stay in both organizations for long period otherwise this will have a negative
impact on business.
 Attitude: It is one of the most important factors that affect human behavior. Attitude of a person
towards his/her work shows his/her willingness to perform his/her work. An individual may have
both positive and negative attitude which may make and break his/her career respectively. If an
employee of a firm has a positive attitude then he may create a good and friendly working
environment and increase efficiency of work and vise versa. Therefore, it may affects the
performance of people working in both above organizations.
 Perception: It is the process through which a person gives his/her opinion and makes
assumptions about future happenings. This factor has a great influence over the whole
performance of business (DiPaola and Tschannen-Moran, 2014). Sometimes, these assumptions
are very much embedded which are not possible to implement in real life.
TASK 2
2.1
Leadership is an ability of a person which concludes overall performance of corporation. Leaders
are at responsibility to manage various activities of business such as motivating employees, improving
efficiency, productivity, increase in profits, etc. Here are following different styles of leadership:
 Autocratic style: This style of leadership is generally used by such firms where whole command
of business remains in one or few hands only. This leadership is suitable for City College because
here, only principal is authorized to perform and make all decisions about various activities of
college. It is extreme form of transactional leadership because overall power is centered with
leader of entity. Here, employees do not take part in decision making process and they are not

even invited to present their opinions and suggestions for future benefits (Miner, 2015). Although
this style is not people oriented but decision making process is very quick here.
 Demographic style: This is just opposite to above one and is also known as participative
leadership. From the name itself it described that it involves all employees and workers which
making decisions for company. As Enterprise Car Rental is people oriented entity where all staff
of firm is part of various activities is suitable for this leadership style. According to this, workers
and employees are a part of decision making process and by this they are highly motivated
mangers. This style is very much effective in large organizations which include a number of
layers of management to run its business.
2.2
An organization is establishes with an aim to accomplish its set goals and objectives with the help
of human beings. Organizational and management theories are the combination of certain aspects of
business which help in creating a brand image of the firm. People use these theories to achieve better
results in their work or to become successful. The organizational theory includes three types of
approaches such as traditional, neo classical and modern (McShane and Von Glinow, 2011). Under
traditional approach scientific theory plays a significant role in improving productivity and profitability of
enterprise. Main purpose behind this theory is to create good working environment within workplace to
increase productivity and decrease the wastage. Sometimes, as per the market condition firm require to
develop new product for its betterment but management of entity is not in such position to invest money
on such new development. In that case, organizational theory helps managers to make right decisions in
favor of company.
The organizational theory plays a role of guiding tool for management of both City College and
Enterprise Car Rental. With the help this only, management decides which leadership style and
motivation technique should be followed by company to increase its profits (Walumbwa, Hartnell and
Oke, 2010). It also helps in increasing the working efficiency of the employees.
2.3
As discussed above there are so many management theories which an entity must use for the
growth of its business. These are explained as under: Scientific approach: This is the approach given by Frederick Taylor which is based on some
concepts like work planning to meet standardization, efficiency and specialization. This theory
helps a corporation to increase its productivity by creating mutual trust between managers and
workers. As per this approach, employees and workers of firm must be selected and trained by

use of scientific methods (Nadiri and Tanova, 2010). According to this theory, management and
employees are treated as same which create a good employee – employer relationship. Human relation approach: This is the combination of psychology and sociology where
employees of firm are motivated to create a formal group and perform their job effectively to
meet their own desires. It includes some principles such as human beings in a workplace should
not be treated like machines, every establishment should facilitate effective communication from
top to bottom and vise versa and employees must work freely. Therefore this approach focus on
improving human relationships within the workplace to improve productivity and profits. Contingency approach: It is a situational approach which is inter-related to internal and external
environment of firm (Argote, 2012). In this corporation has to maintain good relationship with
other enterprises to compete with them.
Both the organizations must use different types of approaches to manage different situation arises
at workplace. A single approach is not enough to meet all situations so management needs to adopt
different theories as per the circumstances.
3.1
City College and Enterprise Car Rental adopted different types of leadership styles which affects
performance of business in negative as well as positive way. There are following impacts of leadership
styles on performance of individuals:
 Human relations: There is a significant impact of leadership in maintaining a good human
relationship at workplace. A firm has to develop a good and healthy working environment to
enhance working efficiency of people and this will happen by treating employees as an asset or
part of firm. Participative style of leadership plays a very important role in making such relations
within entity.
 Motivation: One of the main purposes of leadership in a firm is to motivate employees towards
their job (Springer, 2011). City College followed an autocratic leadership style where all staff
members of college has to follow instructions of principal and on other side Enterprise Car Rental
uses participative method which works by mutual consent of all employees and workers.
Motivation level among staff is very high in Enterprise compare City College.
 Communication: Communication plays a vital role in creating and destroying many things at
premises. Different leadership styles help people in organization to communicate from top to
bottom and vise versa. In autocratic style, generally one way communication is exists i.e. from

managers to employees and workers. While participative leadership establishes two way
communications among individuals. This has a positive impact on performance of business.
3.2
There are several motivational theories which are used by different undertakings to boost morale
of their workforce. Motivations theories used by City College and Enterprise Car Rental are as follows:
 Maslow’s hierarchy of need’s theory: This theory is based on the human needs which describe
their requirements from basic desires to higher ones. According to this, to meet higher needs of
people, basic wants must be fulfilled first. It divides needs of people in a pyramid form from
lower level to upper level wants (Maslow, 2013). It involves five layers of needs from bottom to
top are physiological – safety – belongingness – self esteem – self actualization. Without
fulfilling safety needs self esteem needs cannot be achieved. This theory must be adopted by
Enterprise Car Rental to motivate their employees and enhance their efficiency.
Figure 2: Maslow’s hierarchy of needs theory
(Source: Obiwuru, et.al., 2011)

 McGregor’s theory: It includes two types of theories i.e. theory X and Y. It described about two
types of workers for whom two different techniques of motivations are used to motivate them. As
per X theory, managers assume that some employees are lazy at their work and they always want
to escape from their job. These people required heavy motivation techniques which costs a lot to
organization. In theory Y, management assumes that employees are self motivated and there is
not much requirement to motivate such persons (Northouse, 2012). This theory should be adopted
by City College to motivate those staff members who are self motivated nature and it does not
cost much to institute.
Figure 3: McGregor’s theory
(Source: Pinder, 2014)
3.3
City College and Enterprise Car Rental follow above theories of motivation which have the
following benefits:
 Increase efficiency: Motivation is the process through which a person is encouraged by another
to do something (Jones, 2010). When an employee is encouraged by its employer then it will
affects working efficiency of that person. He/she will perform their job with more willingness and
this will increase their efficiency. This will in turn improve the efficiency of firm and helps in

growth of it. So it is the responsibility of management to fulfill needs of its employees to
encourage them towards their work.
 Decrease employee turnover: Employee turnover is the situation which every organization has to
face where workforce of firm quit or left their jobs. The main reason behind this heavy turnover
is lack of motivation. When management does not promote its staff than they feel low and not get
any interest in working in such place (Eyal. and Roth, 2011). So, motivate is necessary to boost
morale of persons within workplace and when they are promoted and motivated then they will not
leave company and ratio of employee turnover decrease.
 Improve productivity: Productivity of both organizations is also affected by adoption of
motivational theories because it is totally depended on performance of employees working in
enterprise. By motivation techniques like promotion, appreciation, bonus, etc. workforce is
motivated and this will improve the performance of individuals which directly affects
productivity of establishments in positive way.
4.1
There are generally two types of groups are formed in an entity such as formal and informal
which are explained as under:
 Formal groups: These types of groups are formed for the organizational purposes to support its
various functions and operations. These may be named as departments, teams, divisions, and
units. These groups of people take the responsibilities to accomplish their tasks and projects to
achieve goals and objectives of entity. Management of City Collage has three departments such
as teaching, HR and administration which are formed to meet set targets of collage. Managerial
staff of Enterprise Car Rental is more involved in formation of these groups (Hartnell, Ou and
Kinicki, 2011). Here, employees and managers are divided into many level of management and in
each of them various formal units and divisions are made which work on their respective projects
to complete mission of firm.
 Informal groups: These are not only created within but also outside the workplace. These are not
formed for organizational purposes. It involves teams like friendship, interest and support groups
which are created by employees themselves to develop a good and healthy bonding among
employees. As formal teams are necessary to reach the targets, like this informal ones are also
required to form by persons to increase their interaction and which helps in solving various
problems and conflicts within or outside organization (Obiwuru, et.al., 2011). Therefore, informal
groups also have a great importance in improving efficiency and relationships within premise.

Figure 4: Types of groups
(Source: Taormina and Gao, 2013)
4.2
Groups are internal parts of an enterprise which are developed to meet the collective goals of
firm. City Collage and Enterprise Car Rental has various groups and departments which are affected by
the following factors:
 Size: Size of the team is the main factors that influence the performance of it. Size of group
means number of members involved in a team. If the size of it is very large than it may create
problems among members because it will become difficult to interact and communicate to each
person in group (Colquitt, Lepine. and Wesson, 2011). Although a team is big in size but it is
formed systematically and has a formal procedure to accomplish its agenda than in that case size
will not create any problem. Size of a team is usually depends on nature of task, maturity among
people, interaction between them, etc.
 Norms: It means the standard against which suitability of behavior is judged. It shows the
behavior of team members which are expected to their leaders in particular situations. This helps
group to foresee the behavior of individuals and allow them to behave well while working
together as a team.
 Cohesiveness: It is the mutual commitment of group members towards staying together to meet
desire goals of it. When a official team is formed it becomes the responsibility of each person to
act as a part of group and work with each other gently.

4.3
Technology plays a significant role in various functions of a business. Both the organizations
need to use new and latest technology to improve its effectiveness. There are following technologies
which have direct impact on the performance of these businesses:
 Computers: It is one of the best way that allow employees of both firm to perform multiple jobs
at one time. Today, use of computers become very common because everyone want to complete
their work on or before time and this technology help people to complete their task effectively.
 E-mail: It is the method through which any person can communicate with others. It is a formal
form of communicating people (Babcock-Roberson and Strickland, 2010). This method is used
by both City Collage and Enterprise to communicate various important and official things and
announcement to its staff.
 Mobile phones: Today, everyone want to perform his/her work on or before time and this device
helps individuals to communicate others without use of e-mails and letters. It is very useful in
present life because multiple tasks are performed with the use of this technique like texting,
calling, mailing, presentation, etc. It is a small version of computer.
CONCLUSION
This report concluded that organizational structure and culture has a significant role in
performing various functions of business. City Collage and Enterprise Car Rental follow two different
kinds of leadership styles i.e. autocratic and participative respectively which has a great impact on
performance of employees working in such establishments. Different motivational theories must be used
by these entities to encourage its employees to perform their jobs effectively. These firms have to face
several problems and situations for which different management theories are to be used for such
circumstances.

REFERENCES
Books and Journals
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Maslow, A.H., 2013. A theory of human motivation. Simon and Schuster.
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Obiwuru, T.C., Okwu, A.T., Akpa, V.O. and Nwankwere, I.A., 2011. Effects of leadership style on
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