Transformational Leadership and Employee Performance

This assignment content is a collection of various research articles and studies on different topics such as transformational leadership, relationship quality, employee performance during continuous incremental organizational change, shakedown behavior in pavement's granular layer, consumers' choice of brand, travelers' risky choice behavior, morphological sexing of Grey-crowned Babblers, animal welfare, wind data, antisocial behavior in Malaysian adolescents, promoting alternative thinking strategies, and transactional-transformational leadership. The articles were published in various journals and conferences from 2013 to 2016.

ORGANISATION
AND
BEHAVIOUR
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
TASK 1
LO1- UNDERSTAND THE RELATIONSHIP BETWEEN ORGANISATIONAL
STRUCTURE AND CULTURE
1.1 Compare and contrast different organisational structures and culture...................................3
1.2 Explain the correlation between structure and culture...........................................................5
1.3 Factors that influence individual behavior at work................................................................5
TASK 2
LO2- UNDERSTAND DIFFERENT APPROACHES TO MANAGEMENT AND
LEADERSHIP
2.1 Effectiveness of different leadership styles............................................................................6
2.2 Organizational theory and its link with management styles.................................................7
2.3 Different approaches of management....................................................................................9
LO3- UNDERSTAND WAYS OF USING MOTIVATIONAL THEORIES IN
ORGANISATIONS
3.1 Impact of leadership styles in organizations..........................................................................9
3.2 Different motivational theories at workplace.......................................................................10
3.3 Usefulness of motivational theory for managers..................................................................11
LO4- UNDERSTAND MECHANISM FOR DEVELOPING EFFECTIVE TEAMWORK
IN ORGANISATIONS
4.1 Nature of groups in organizations........................................................................................12
4.2 Factors that promote effective team development...............................................................13
4.3 Impact of technology on team working................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
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Introduction
Organization behavior (OB) is the conceptual study of human behavior in an
organization. Employees are the assets of the company it is essential that they like the workplace
and be loyal towards the firm. OB supports the entities in identifying their attitude towards the
brand and helps to make them positive towards the corporation (T’ng, Baharudin and Ismail,
2015). This study is applied in order to improve performance of the workers so that they
contribute well in the organization and supports the firm in accomplishing their goals and
objectives. Present report is based on the City College and Enterprise-Rent-a-car. Assignment
will focus on the organizational structure and culture of the cited firms.
Various factors that influence the individual behavior will be discussed in this study.
Leadership styles adopted by both firm and their impact on the organization will be described in
this report (Akowe, 2016). Comparison of different motivational theories and their usefulness for
the entities will be discussed in this assignment. Various components that may promote the
development of effective team will be illustrated in the present study.
Task 1
LO1- UNDERSTAND THE RELATIONSHIP BETWEEN ORGANISATIONAL
STRUCTURE AND CULTURE
1.1 Compare and contrast of structure and culture of organization
Performance of an entity much more depends upon its structure and culture.
Organizational structure can be described as working pattern of a corporation, hierarchical
arrangement of authorities and how communication takes place in an entity.
That is completely based on the goal and objective of the firms. City College and
Enterprise both follow different organizational structures (Ghadimi, Nega and Nikraz, 2015).
There comparison is as following:
Enterprise-Rent-a-Car City College
It follows the centralized structure. It follows decentralized structure
Meaning:
It is followed by the large firms which are
working worldwide in different
geographical areas. In such type of
Meaning:
In such type of structure decision making
power are distributed and various
management level persons are accountable
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structure higher authorities retain all
powers to take any decision.
for the judgment.
In such type of structure, communication
flow is vertical. As in the Enterprise
higher authorities do not coordinate with
the lower staff directly, they inform
department head and so on information
pass to next level employee (Shallice,
2014).
In the City college open and free
communication held between employees
and employer.
Inadequate control over the staff members
is done in the workplace.
Considerable control over the employees.
Strong supervision of managers is here. In this people are skill so managers have
nurturing nature towards their workers.
It is necessary to follow the rules and
regulations in the cited firm.
Flexibility is provided by the authorities to
their employees so that they like
workplace and perform better.
Culture
Culture of an organization can be described as values, believes and ethics of the firm.
Health cultures in the workplace help in creating positive workplace where people can feel
satisfy. Handy has described the four types of culture; power, role, personal and task culture.
College has power culture in which everyone gets learning opportunity (Lambert and Blackmore,
2015). All perform their duties individually and fulfill their responsibilities well so that goal of
the company can be accomplished.
Flexibility in the workplace encourages others and they share their innovative views
through which teachers can deliver good knowledge to the students. Enterprise is the big
organization and operating in many geographical areas. It is very important for the cited firm to
manage their employees well and make effective coordination among them so that conflicts can
be minimized to great extent. Entity follows role culture in which all persons have to perform
their duties. Managers give them responsibility as per their capability and position in the
company (Wilson, 2016). Role culture helps in reducing confusion in the workplace and
performance of workers. By this way firm will be able to achieve its goal significantly.
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1.2 Correlation between structure and culture
Organizational structure and culture are interrelated aspects and impact on each other to
great extent. If structure of the company is poor then culture would not be able to create healthy
working environment. By this way people will be demotivated and they will not like the
workplace (Martínez, Suárez and Ghezzi, 2016). By this way job turn over will get increased that
can harm the reputation of the firm. Positive culture and ethical values will encourage employees
and they will accept inflexible structure and will put their best efforts in the organization so that
objective of the entity can be fulfilled. If structure is improper then people will not look upon the
cultural aspect, same as if culture is poor then employees will ignore the structure.
Development of culture is highly depended upon the policies and procedure which are
made through structure of the company. So both are deeply connected terms and impact on each
other (Aparow and et.al, 2014).
As City College follows decentralized structure and power culture. That supports the
cited firm in achieving its goal. Flexible environment motivates teachers and they try to deliver
good knowledge to students. Apart from this due to positive culture and lack of supervision
confidence of the workers get improved. By this way people perform their duties well and
support higher authorities. Whereas Enterprise is the global brand, it follows centralized structure
and role culture. That helps in taking speedy decisions and give rewards to the workers. That
motivates the staff members and people stay in the firm for longer period. That impact positively
on the cited firm and helps in accomplishing goal of the entity (Yeasmin, Jinnah and Islam,
2014).
1.3 Factors that influence individual behavior
 Personality factor: Age, gender etc. are main elements those influence the behavior of
person in the organization. Young people are much more enthusiastic and innovative they
use innovative ideas to perform the task better. Whereas old people wants to perform
their duties with the traditional methods (BENHATTAB, 2013). So if Enterprise or City
College modify their working practices then below 30 persons will take it as challenge
but old people will be negative and they will change their mind towards the firm. So it
can influence their behavior to great extent.
 Culture: Every person has different values and ethics. If there are cultural differences
then individual will not be comfortable in the workplace and will prefer the leave the job.
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Whereas there is same culture then individual will be positive and will stay in the
organization form longer period (Ranta, 2014).
 Environmental factor: If in the City College and Enterprise, employees do not get
promotional opportunity and manager create negative pressure on them. Then in such
condition behavior of individual can be influenced to great extent. No one will be able to
stay in the firm for longer period whereas if company provides them equal opportunities
and promotion options then they will be motivated and perform their duties well (Hu,
2013).
 Working practices and relationship: It is another factor that influences the mind of
individual. As City college has flexible working policies and practices so people are
positive and they have good communication so bonding of them are very strong. Whereas
Enterprise has strict rules and regulation and due to this working performances of the
employees is increasing. Reward system encourages them to do well for the firm
(Håkansson, Kvarnström. and Nilsson, 2014). By this way people trust on the employer
and perform their responsibilities well. But if they pressurize the persons and demotivate
them then in such condition people will be negative and they will not like the workplace.
Task 2
LO2- UNDERSTAND DIFFERENT APPROACHES TO MANAGEMENT AND
LEADERSHIP
2.1 Effectiveness of different leadership styles
Leaders are the key players of an organization; they motivate employees and guide them
in such manner so that they can improve their performance. Leadership is the skill of a leader
which supports entity in increasing profitability (Sönmez, 2014). There is different leadership
styles adopt by the managers of both companies:
 Autocratic leadership:
It is the type of leadership in which leaders have controlling nature and they take all decisions by
own. Enterprise adopts this leadership style, for the firm it is necessary that people follow rules
and regulations and obey guidelines of managers (Carter and. et. al, 2013). By this way conflicts
will be minimized and that will help in improving performance level of staff members.
Effectiveness of autocratic leadership are as below maintained:
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As higher authorities take the final decision so fast and good decisions taken by managers for the
welfare of the company.
Leaders supervise people closely so they improve their learning and knowledge, by this way
overall performance of workers gets enhanced.
To motivate staff members, leaders give those rewards and recognition. By this way people like
the workplace and job turnover get reduced (Wilson, 2015).
 Democratic leadership:
It is adopted by the City College in its workplace. In this, leaders provide flexibility to employees
and involve them in decision making process. By this way people feel involved and share their
innovative views with management. By this way managers can make effective strategies for the
well fare of cited firm. Effectiveness of democratic leadership is as discussed below:
As all workers are involved in decision making process so satisfaction level of them get
increased (Autocratic leadership style. 2015).
Communication between employees gets improved and that is why conflicts and
misunderstanding get reduced to great extent.
 Free-rein leadership:
It is the type of leadership in which higher authorities trust on their staff members and provide
them freedom to work as per their own ways. It helps in increasing morale of staff members. Job
satisfaction gets increased and people serve better to consumers. That supports in increasing
profitability of the company (Ranta, 2014).
2.2 Organizational theory and its link with management styles
Organizational theory is the study of the structures of organizations, and to understand
their nature and behavior. To achieve goal and objective of the company it is very important to
understand and implements effective theory in the organization. Management style is simply
construed as a way to manage an organization.
The relationship between management styles and organizational effectiveness cannot be
overemphasized (Martínez, Suárez and Ghezzi, 2016). Management styles are one of the
important factors that affect organizational effectiveness. A good match between the style of
management and operating realities of an organization will substantially influence its level of
effectiveness (Wilson, 2016). In each organization, management style influences the performance
of individual employee and work groups, and thereby the whole organization’s performance.
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There are various organizational theories:
1. Classical Theory: It represents the merger of scientific management, bureaucratic theory
and administrative theory
Scientific management theory has four basic principles:
 find the one "best way" to perform each task
 carefully match each worker to each task
 closely supervise workers, and use reward and punishment as motivators
 the task of management is planning and control
It was very successful at improving production, but it has not fared well in modern
companies. The philosophy of "production first, people second" has left a legacy of declining
production and quality, dissatisfaction with work, loss of pride in workmanship, and a near
complete loss of organizational pride (Ranta, 2014).
Max Weber (1947) expanded on this theory called bureaucratic theory, emphasized the
need for a hierarchical structure of power. It recognized the importance of division of labor and
specialization. A formal set of rules was bound into the hierarchy structure to insure stability and
uniformity
Administrative theory: The emphasis was on establishing a universal set of management
principles that could be applied to all organizations
2. Human Relations Theory: It is also called Neoclassical theory addressed many of the
problems inherent in classical theory which focuses on employee's needs
Principles of Human Relations Theory are:
a) Emphasizing differences between people to create different effective motivators and resolving
creative conflict to develop new ideas and build stronger working relationships.
b) Emphasizing social interactions, participative management and decision-making.
3. Decision Theory: It is also called Contingency theory for inescapable, but manageable
work of an organization, assesses management effectiveness by management’s
environmental adaption abilities.
Theorists noted the importance of giving managers at all levels the authority to make decisions
over their domain. Managers would be free to make decisions contingent on the current situation
4. Modern Systems Theory: The principles of Modern systems Theory are: all of an
organization's components interrelate non linearly, therefore making a small change in
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one variable impact many others. A small change can cause a huge impact on another
variable or large changes in a variable can cause a nominal impact.
2.3 Different approaches of management
There are several approaches to management that is being used by different organization
such as Passive, steering, capacity building approach etc (Ranta, 2014).
According to the case study Enterprise wants to enhance its sales and want to satisfy its users. So
for achieving this objective cited firm follows capacity building approach and train its staff
members in such manner so that they can build relationship with the users. It will help in
increasing their skills and they will serve better services to clients. With the help of capacity
building approach Enterprise will be able to motivate its staff members thus, people will like
their working place and they will contribute well in the success of the organization.
On other hand City college is working in the educational field and it is necessary for the
entity to provide good knowledge to students so that they like their college. Cited firm follows
steering approach in the workplace with the help of this students can lean many things. Apart
from this teachers and other staff members feel satisfy and they perform their work well
effectively (Sönmez, 2014). Less supervision and less controlling encourage them to perform
better. Apart from this, they share innovative ideas through which they can per duties well.
LO3- UNDERSTAND WAYS OF USING MOTIVATIONAL THEORIES IN
ORGANISATIONS
3.1 Impact of leadership styles on organizations
Leaders are the key players of an organization; they guide people and motivate them so
that employees can perform their duties well. Leaders are responsible for the growth of an entity;
they put their best efforts in achieving the goal of the firm. There are different types of leadership
styles adopt by different organization. All these styles directly or indirectly affect the business
performances.
In the City College leaders and management level persons follow democratic leadership
style. In this they involve all employees in decision making process and take time to time their
feedback (Autocratic leadership style. 2015). So that draw back of current system can be
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found out and firm can make strategies to deal with such issues. Impact of democratic leadership
on City College is as following:
 Flexibility and less supervision motivate employees and make them loyal towards brand.
 People share their views and innovation takes place.
 Job turnover is very less in the City College due to democratic leadership. As each
individual has right to make their own judgment (Wilson, 2015).
On other hand it impacts negative also, extra freedoms make them careless and they
avoid their duties. And due to this people cannot manage work load and create negative working
environment.
Enterprise adopts autocratic leadership in which leaders of cited firm do not get power to
make their decision. People follow rules and regulation and by this way their working
performance gets improved.
A reward system highly motivates the workers and encourages them to stay in the
organization for longer period (Wilson, 2015).
With the help of this leadership, leaders develop professionalism among employees.
On other hand high controlling and strict regulations demotivate them and they prefer to
leave the job.
3.2 Different motivational theories
Motivation is the key factor that increases performance of the organization to great
extent. Every corporation knows the importance of motivation in the workplace because
motivated staff members are loyal and they put their best efforts for the well fare of the company
(Martínez, Suárez and Ghezzi, 2016).
Theory X and Y
Theory X assumes that employees are not satisfied with the working environment and
they are demotivated. So in such condition it becomes duty of management level persons that to
encourage the people so that they can perform better. Managers have to give close supervision
and have to give monitory rewards so that workers can be positive towards the brand. Theory Y
explains that people are satisfied with their jobs and they are performing well. Management
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needs not to do anything to motivate them. But managers of the company can give reward and
recognition in order to promote them towards higher level (Wilson, 2016).
This is great concept and gives benefit to City College and Enterprise. With the help of
this motivational theory both entities will be able to motivate its staff members. By this way job
turnover rate of the company will get reduced and skilled persons will stay in the organization for
longer period (Wilson, 2015).
Maslow's motivational theory
Customers and employees both are important for the growth of the firms. If consumers
are satisfy then they will buy the products again and again whereas if employees are happy then
they will provide quality services to the clients. In both cases organization will be able to
enhance its profitability and sustainability (Hu, 2013). Maslow concept is based on the need
identification. This theory explains that there are five types of needs of employees psychological,
safety, social, esteem and self-actualization. By fulfilling on requirements of the Workers City
college and Enterprise both will be able to motivate its staff members. By this way, people will
feel happy and they will put their best efforts for the well fare of the companies.
3.3 Usefulness of motivational theory
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Illustration 1: Maslow's motivatio theory
Source: (Hu, 2013)

In the modern era, it is very difficult to survive in the corporate world. Firms have to
provide excellent services to consumers so that they get attracted towards the brand and be loyal
towards the company. It is possible if workers treat all consumers well and provide them goods
as per their needs. Motivational theories are very useful, it can help in satisfying their workers by
this way City college and Enterprise will be able to understand needs of its users.
City College follows Maslow's motivational concept and identify the learning needs of
students. So that it can train its staff members in such manner so that they can provide good
knowledge to the learners. Apart from this, companies look upon other departments as well and
give those rewards and recognition (Wolfram and Gratton, 2014). So that all workers can
perform their duties well and contribute well in the economic development of organization.
Love, respect can make people loyal and their retain in the firm can get enhanced.
Enterprise managers follow X and Y theory in the workplace. They first identify the group those
who are happy and second which are demotivated. Managers treat both of them differently.
Company provide monitory rewards to unhappy employees so that they feel satisfy whereas it
give recognition in front of all staff members to the happy persons. By this way employees feel
satisfied and talent stay in the workplace for longer period (Lambert and Blackmore, 2015).
LO4- UNDERSTAND MECHANISM FOR DEVELOPING EFFECTIVE TEAMWORK
IN ORGANISATIONS
4.1 Nature of groups in organizations
There are number of employees those who significantly for the welfare of the
corporation. Generally they are divided into two groups formal and informal.
Formal group is the type of unity in which all members behave professional and they
work according to the norms of the firm. Informal group is the type of unity in which people has
friendly relationship and they share their feelings with each effectively. In the City college
there's formal group present. All departments’ employees have professional relationship with
each other. They coordinate well with each other but do not share their feelings. All staff
members follow instruction of higher authorities and manage their work accordingly (Lambert
and Blackmore, 2015).
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On other hand Enterprise has informal and formal group both. Nature of informal
group is very friendly; they share views with each other’s and discuss the issues openly. They
have strong relationship with each other and that is why communication takes place between
them significantly (Ranta, 2014). Due to the strong bonding conflicts get reduced in the
workplace to great extent. That helps to encourage people to improve their performance and put
best efforts for the benefit of company. But sometimes these informal group members discuss
personal issues which are not related to official work that create negativity in the workplace.
They ignore guidelines of the higher authorities and spoil environment of the company.
4.2 Factors that promote effective team development
There are many elements that promote or inhibit development of an effective team. These
are as following discussed:
Team size: It is an important factor due to this team performance can get affected to great extent.
If there is high number of workers in a single team then it becomes difficult for the managers to
manage them. That affects on their working performance and creates misunderstanding between
employees. On other hand if there are limited team size then no confusion will take place in City
College and Enterprise (Martínez, Suárez and Ghezzi, 2016).
Social cohesiveness: It is one of the common factors due to this job turnover is increasing. There
are many persons those who are negative and their negative conversations create negative
environment. It demotivates workers of City College and Enterprise and they feel unable to stay
in a team or work as a team.
 Good organization: It is essential factor that helps in promoting team development to
great extent. If company is providing positive workplace environment to its team
members and culture of the firm is good then it will help in motivating team members and
they will put their best efforts for the well fair of the entity (Martínez, Suárez and
Ghezzi, 2016).
 Good Communication: It is another factor that helps in the promotion of team
development. If people interact with each other well then there will be no confusion
regarding duties and role. But if there is coordination problem due to language issue or
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culture then team members will not be able to understand each other. It may turn into big
conflict situation in the workplace (Sönmez, 2014).
 Stability-reliability: It is another component that impact on the team development. If
team members are not stable then they will not be able to work as team and they will not
support each other. By this way both firms will not be able to accomplish a team
development their tasks.
 Know Your Team: If the mangers and supervisor identify needs of their employees and
motivate them by fulfilling their requirements. By knowing the team well company will
be able to make them satisfied. It will help in encouraging the employees to perform their
duties well and contribute in achieving goal of the firm.
 Tackle Problems Quickly: It is another factor that can promote team development to
great extent. There are so many issues faced by the team in workplace environment and
their personal life. If management of cited firm work fr resoling their problems soon then
it will motivate them and they will stay in the workplace for longer duration (Martínez,
Suárez and Ghezzi, 2016).
 Define Roles and Responsibilities: it is one of the major factor that influence the overall
working of City college and Enterprise both. Most of the people are unaware with their
responsibilities By making them aware and defining their duties clearly both firms can
enhance productivity and efficiency of the operation and it will support in development of
team as well.
 Break Down Barriers: It is another element, if management of City college and Enterprise
break down the barriers that cause difficulty to the team then it will be able to motivate
team and it will help in their development significantly.
 Create Good harmony: It is the element that helps in developing relationship between
employees. By this way they will understand each other and will support each other well.
That would create positive environment in the workplace thus confusions and conflict
will get reduced soon. That will support in promoting the team development.
 Pay Attention/Show interest/openness: Higher authorities needs to pay attention of
team members and they have to train them and try to develop their skills. By showing
their interest in the team, confidence of team members can be boost up and they will
work hard for the organization (Martínez, Suárez and Ghezzi, 2016).
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4.3 Impact of technology on team working
In the modern era it is essential for the entities to adopt the latest technologies. That can
help in increasing sustainability of the organization in the corporate market. With the help of
technologies companies not only speedy finish their task whereas the can improve quality of
work as well. Impact of technology on team working is discussed as following:
 Technology helps in making good coordination in a team, by this way easy and fast
interaction will take place so misunderstandings will get reduced to great extent. It
impacts positive and enhance performance of a team in City College and Enterprise
(Aparow and et.al, 2014).
 With the help of advanced software and other tools both organizations will be able to
train its staff members well. By this way they will develop some additional skills that will
help them in performing their duties well.
 But technology also impact negative on the team working, as if people has no knowledge
about the technique then they will not be able to operate such tools. It will demotivate
them and make them negative. And if one person becomes negative then it can spoiled
working environment and can influence others too (Håkansson, Kvarnström. and Nilsson,
2014).
◦ Virtual team is the group of people those who work together from different
geographical locations. Technology impact on the individual person of the team
because they can be able to coordinate well via email, net etc. That would develop
communication and understanding level of the workers thus confusion and conflict
can get reduced to great extent. It impacts on the organization as well, because virtual
team will be bale to work together for accomplishing common goal thus, overall
production and profitability of the entity will get raised. Employees will be able to
serve better to social group or consumers. Technology will support in knowing
preferences of different societal members and company will be able to offer them
similar product as per their needs. Thus, it will make them positive towards the brand.
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Conclusion
From the above report it can be said that employees are the assists of the company and it
is essential to treat them well. Satisfy workers can stay in the firm longer period and can
contribute well in increasing performance of the companies. City College and Enterprise both
have unique pattern of working. Centralized and decentralized structure support in accomplishing
the objective of both entities. Motivation is important aspect, by encouraging employees;
managers can make them loyal and can enhance their satisfaction level. That can help in
increasing retention rate and profitability of the firms.
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References
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