Monitoring Employee Performance through Leadership Styles and Theories

The assignment content discusses the importance of monitoring employee performance to improve their level. It highlights the different leadership styles of British Gas and EDF Energy, with British Gas following a democratic style and EDF Energy adopting transformation leadership. The report also emphasizes the need for organizations to adopt Maslow's Need Hierarchy Theory to motivate employees. Additionally, it stresses the importance of retaining and attracting customers through marketing research. Furthermore, formal groups are considered effective in achieving organizational goals.

Organizational Behaviour

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Comparison of leadership styles which can be adopted in EDF Energy and British Gas1
2.2 Organizational theories Used in British Gas which underpins the practices of management
................................................................................................................................................2
2.3 Evaluation of management approaches adopted in EDF Energy and British Gas...........3
TASK 3............................................................................................................................................4
3.1 Impacts of different leadership styles on employees motivation of British Gas..............4
3.2 Comparison of motivational theories in EDF Energy and British Gas............................5
3.3 Benefits of motivational theories for EDF Energy and British Gas.................................8
TASK 4............................................................................................................................................9
4.1 Nature group behaviour in EDF Energy and British Gas.................................................9
4.2 Factors which effective teamwork in EDF Energy and British Gas..............................11
4.3 Technological impact on EDF Energy and British Gas.................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

ILLUSTRATION INDEX
Illustration 1: Maslow's Hierarchy of Needs...................................................................................6
Illustration 2: Theory X and Theory Y............................................................................................7
Illustration 3: Different forms of groups........................................................................................10

INTRODUCTION
Organizational behaviour can be defined as the learning of group and individual
performance and their activities in the firm. This type of learning is very helpful in understanding
the effect on job performance, motivation, organizational structure, communication and it is also
helpful in understanding the behaviour (Wilson, 2013). Organizational behaviour can be viewed
by companies with the help of two perspectives which are internal and external. This report is
about study of British Gas and EDF Energy. It focuses on the organizational structures and
cultures adopted by these respective companies. Moreover, it also studies different formulation
of leadership and management. Along with that, use of various motivational theories and
mechanisms adopted for effective teamwork by EDF Energy and British Gas. This study will
help in developing effective plans for the new firms as well.
TASK 2
2.1 Comparison of leadership styles which can be adopted in EDF Energy and British Gas
In the business environment, leadership style are of various types. Every leadership style
has its own merits and demerits. Leadership styles should be adopted according to the goal and
culture of organization (Lee and Lawrence, 2013). Following are the different leadership styles
which exist in the environment:
Opportunist leadership style: This is the type of leader who is characterized by
manipulativeness, mistrust and egocentrism. These types of leaders focus on personal goals and
achievements. All the major decisions are taken by top head. This style of leaders are similar to
Autocratic leadership style. Decisions are only taken by top management or head, workers of the
organization are not involved in decision making. As a result, workers who work in such firm
where this leadership style is followed are generally de-motivated. They do not accept any kind
of feedback or suggestions given by any employee.
Diplomat: In this type of leadership style, opportunities are sensed by the leaders which
may be available in the surroundings. These leaders learn form their mistakes and focus on
understanding issues in solving conflicts (Lammers and Hickson, 2013). They are much better
than Opportunist leadership style.
Transformational leadership style: According to this leadership style, leaders reward
their workers according to the performance. Leaders provide their workers with task which has
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to be performed by in the given time. According to their performance they are rewarded.
Rewards are given so that workers work with their full efficiency and this one of the best way to
motivate them (Hogg and Terry, 2014). Through this way, leaders are also able to achieve their
organizational goals and objectives effectively.
Achiever: In this leadership style, leaders develop healthy and friendly business
environment for working. They focus on their employees performance and encourage them to
think out of the box and do welcome new ideas. All the ideas which the management get from
workers are considered and may be adopted if it is reliable. They have high skills in managing
their team effectively and focus on solving conflicts.
Strategist: These type of leaders focus on setting objectives and goals so that workers
could design their path by which they could achieve set goals and objectives. These leaders have
vast knowledge and use their skills and knowledge in solving conflicts. They control their
employees efficiently and provide them proper support so that they could achieve the desired
goals.
Magician leadership style: According to this leadership style, leaders are very reflective
and thoughtful. They have the ability to solve problems easily (Hassard and Pym, 2012). They
are successful, powerful, visionary and inspiring with lot many skills.
Pluralistic leadership: They are focused on the performance of work rather than the
position they hold. They are fully devoted towards their work and use their full capability in
completing the task effectively.
2.2 Organizational theories Used in British Gas which underpins the practices of management
In order to achieve the goals and objectives of the firm, organizational theories are very
helpful in developing strong relationship between managers and workers. There are different
strategies involved in this theory and are very helpful in enhancing skills and knowledge which
are very essential in obtaining desired goals (Jafri, 2012). Further, it also includes, understanding
customers and providing them services according to their needs and wants which are very
essential in gaining profit. Further, it suggests different ways through which firm can cope up
with rapid changes.
In accordance with the case, British Gas focuses on developing and maintaining relationship with
their workers. This shows that they use Neo- classical theory. Another name for Neo- classical
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theory is human relation theory (Bond and Muethel, 2012). In accordance with this theory, firm
focuses on fulfilling the requirements and wants of employees. Employees are closely observed
and their requirements and desires are satisfied which enables the employees to work effectively
and efficiently. In addition to this, firm focus on motivating their workers by rewarding them
according to their performance and it is also helps in maintaining relationship. This results in
increasing productivity and increase in efficiency level. In short, it can be said that, this
organizational theory is helps in underpinning the practices of management. Moreover, it also
encourages innovation and employees would feel free in sharing their ideas and as a result,
innovations are easily done.
Moreover, planning in assigning task for workers is effectively done and with the help of
effective communication relationship is also developed among managers and workers. Planning
is very essential for the development of organization as it helps in arraigning specific time for
each task (Symon and Cassell, 2012). Systematic plans can be made for achieving the
organizational goals and objectives. It helps British Gas in controlling the employees and
providing them proper path on which they can achieve the required goals. In making decisions,
all the workers are involved with this the changes which are to be taken place within the firm is
well known by the workers. Moreover, this theory is also helpful in monitoring the performance
of workers and managers according to their weaknesses they provide them training. Employees
performance is monitored which is very helpful in improving the performance level. As a result,
employees become more productive and increase the firm’s growth as well. Resources are
effectively utilized with the help of this theory as it increases the responsibility of employees and
uses the resources efficiently (Haslam and et.al., 2014). Thus, this shows that this theory has
proved to be very effective in underpinning the practices of management in British Gas.
2.3 Evaluation of management approaches adopted in EDF Energy and British Gas
In order to improve the growth and productivity of the firms, many formulations can be
followed. Following are few management theories which are applied by the firms:
Scientific management approach: This theory was given by Taylor. According to this approach
management synthesizes and analyzes the flow of work. Organization maintains objectives
which help in improving effectiveness of the workers (Zolfani and et.al., 2012). This technique is
applied in recruitment, providing training to the employees and in solving organizational
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problems. There are four principles followed in scientific management techniques that are
discussed underneath:
1. Applying most simple and effective way in completing the task.
2. Works should be assigned to any employees according to the capability of employees.
3. Employees should be monitored and proper guidance should be given to then so that they
can understand and improve their performance.4. Work should be allocated among employees and managers so that managers could spend
time in training and planning which will help the employees in performing the task
effectively.
Human relations approach: In this approach firm mainly focuses on their employees so that
they can perform effectively. Following are the principles which are followed in this approach:
1. Employees should be rewarded according to their performance.
2. Workers should be treated like human beings and not machines (Costa, 2014). Emotions
and feelings of employees should be understood by the mangers.
3. High degree of job satisfaction and job security should be provided to the employees.
4. Frequent interaction will help the workers to develop confidence in performing their job.
5. Employees should be given freedom in performing job in their own way.
Among these approaches British Gas follows scientific management approach and EDF Energy
follows human relations approach.
TASK 3
3.1 Impacts of different leadership styles on employees motivation of British Gas
Leadership is an approach which provides motivation and directs the employees.
Following are the leadership theories:
Autocratic style of leadership: According to this, leadership style all the important
decision are taken by the top management only. Workers of the firm are not involved in making
decision for the organization. As a result, workers are mostly de-motivated. In this style the only
step taken by management in order to motivate the workers is by rewarding them according to
the performance (Pettinger, 2013). Leaders provide appropriate decisions which they have to
follow. Even if the employees are not willing to adopt the change or decision imposed on them,
still they have to follow them. There are chances of making wrong decisions by the management
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as all the decisions are taken by the top management according to their knowledge and
experience. If British Gas adopts this type of leadership style then employees will get de-
motivated and will not work effectively.
Democratic leadership style: In this leadership style, all the decisions are taken
concerning all the employees. Staffs of the firm actively participate in decision making. This
style encourages the involvement of working people of the firm. This leadership style is also
known as participative leadership style as in this; high participation of employees is focused.
This leadership style helps employees of British Gas to achieve the organizational objectives and
goals (Dent and Whitehead, 2013). Under this style, staff members are informed regarding the
matters which may affect them. It helps in motivating the employees and in encouraging them to
work effectively. Employees effectively take part in the decision making and adapt to change as
all changes are made with the concern of all the workers.
Transformation leadership style: In this leadership style, managers provide their
employees with specific tasks which they have to achieve. They are provided with the rewards of
punishments according to the performance of job. This leadership style is very helpful in
completing the task on time. Managers provide the employees with proper training so that they
can accomplish the firm's goal (Belussi, and Staber, 2012). Workers are provided with the
rewards like bonuses when they complete their task. This leadership style will be suitable for
British Gas as the employees will be clear in achieving the goals and objectives within specific
time given.
3.2 Comparison of motivational theories in EDF Energy and British Gas
In increasing the motivational level of the employees, there are various motivational
theories which can be adopted by organizations. Following are the motivational theories:
Need hierarchy theory by Abraham Maslow: According to this theory, there are five
basic needs which every employee attempts to achieve (Importance of Maslow's Theory, 2013).
When these needs are fulfilled then employees are highly motivated and encouraged which
results in performing their job effectively.
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Illustration 1: Maslow's Hierarchy of Needs
(Source: Importance of Maslow's Theory, 2013)
Physiological Need: This includes basic requirements like food, water, air, sleep and
clothing. Employees should be provided with suitable working environment where basic needs
can be fulfilled. Providing workers with suitable working conditions, proper working hours and
frequent breaks to eat or drink or for using the bathroom comes under physiological needs.
Safety Needs: This need is helpful in providing workers It is to provide the employees
with a consciousness of security and safety. It includes protection form accidents, good health,
personal security, financial security, etc. In a firm, manager should provide healthy working
conditions where employees can work safely. In an environment with proper job security and
secured compensation, employees will be able to work freely and this will help in increasing
their motivation level.
Social needs: It is also known as belongingness and love. According to this need,
employees should feel a sense of acceptance and belongingness. It is very important so that they
would not feel depressed, alone and isolated (Blomme and Bornebroek-Te Lintelo, 2012).
Manager can look after this need by ensuring that all the employees should know each other.
Esteem need: This refers to need of respect and self esteem for an individual. Managers
can achieve this need by appreciating them when they would perform well. Employees should be
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offered with promotions and additional responsibility that must be provided to them so that their
self esteem can be raised (Gagné, Sharma and De Massis, 2014). Workers should be respected
and praised according to the performance of their job.
Self-actualization need: This describes the need of a person to reach his highest
potential. Managers of the organizations should encourage and provide them proper training so
that employees would get to know their potential and will enhance their skills to their full
potential.
Theory X and Theory Y by Douglas McGregor: This theory is helpful to identify two
types of managers, that is, one who assumes negative views of the employees and other who
assumes positive views of the employees (Pettigrew, 2014). Douglas McGregor has given names
for these two types of managers which are Theory X and Theory Y.
Illustration 2: Theory X and Theory Y
(Source: Douglas McGregor on Theory X and Theory Y, 2014)
Theory X: These are the employees who do not like their job. They work only to gain
salary and security offered by the firm. They are lazy, less ambitious and perform only those jobs
which have been assigned to them rather than taking initiatives for other responsibilities. They
just care about themselves and not the firm (Ahmed, 2015). Managers have to punish them so
that objectives and goals can be achieved by the firm.
Theory Y: This theory is opposite to theory X. These are the employees that love their
job and use their highest level of potential for the completion of their job. They work
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energetically and take responsibilities as well. These employees seek opportunity and adapt to
any change easily. It is through their imagination and creativity that the firm achieves their
organizational goals.
Among these theories, British Gas adopts Need hierarchy theory that is given by
Abraham Maslow for motivating their employees and EDF Energy applies Theory X and Theory
Y given by Douglas McGregor for motivating their employees in order to achieve their
organizational objectives and goals.
3.3 Benefits of motivational theories for EDF Energy and British Gas
It is clear from the above task that, British Gas adopts Need hierarchy theory by Abraham
Maslow. Following are the benefits through which mangers of British Gas get by using this
motivational theory: Physiological need: Abraham Maslow has covered all the important areas through which
organization can motivate the employees and bring out their full potential in completing
the given task. With accordance with the theory British Gas are able to fulfill all the
required needs of their employees (Westwood and Rhodes, 2013). According to the areas
given by Abraham Maslow, British gas effectively fulfills the physiological needs. They
have provided their employees with effective working condition. They include all the
required basic requirements like providing their workers with suitable working hours,
providing them with breaks for having their food, for drinking water and can use
bathroom. In addition to this they provide them with proper salary. Employees get highly
motivated and perform their work effectively. Through this British Gas satisfies their
physiological needs. Safety needs: They provide their employees with proper security and safety. Employees
working at British Gas work freely and energetically as they are provided with all the
required security (Eid and et.al., 2012). An environment with proper job security and
secure compensation employees will be able to work freely and this will help in
increasing their motivation level as their need of safety is been fulfilled. Social need: Employees working at British Gas are allowed in making decisions and all
their suggestion and feedback are taken into consideration. This encourages them and
develops a feeling that they are important for their firm.
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 Esteem need: Workers of British Gas are given respect and additional responsibilities
which increase their efficiency and effectiveness in their performance. Employees are
given rewards and intensives according to their job performance (Lyon, Möllering, and
Saunders, 2012). Workers have interactions with other workers and as a result they all
know each other closely. This helps them in working effectively in team. Everyone have
respect for each other as they all know each other very well.
 Self-actualization need: British Gas motivates the employees by allowing them in making
decisions, providing them with additional responsibilities, providing them proper training
and rewarding them according to their performance of their job. By this, employees of
British Gas are able to work with their full potential.
On the other hand EDF Energy adopts X and Y theory in motivating their employees. Following
are the benefits through which mangers of EDF Energy gets by using this motivational theory:
 Managers of this firm are able to identify the employees who dislike the job or who just
work because of the security provided by the firm. Mangers identify these employees and
motivate them according accordingly (Wilson, 2013). This theory is very much helpful in
recognizing the workers who may be depressed or unproductive. Managers provide them
with proper training so that they may overcome their drawback.
 With this theory mangers are also able to identify employees who are fully dedicated
towards their job and perform effectively. Managers provide those additional incentives
and rewards so that they maintain their job performance and firm could achieve their
objectives and goals.
TASK 4
4.1 Nature group behaviour in EDF Energy and British Gas
Groups are very essential feature for working effectively in an organization. In a group
members should focus on developing coordination with each other so that the task provided to
the group could be effective and efficiently done. Member of a group can influence each other in
any way (Lee and Lawrence, 2013). Group has the freedom to have their own leaders and
hierarchies. Following are the different types of groups:
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Illustration 3: Different types of groups
(Source: Different forms of Groups, 2014)
A. Formal group: This type of groups is formed for achieving specific goal or task. People
in the group are brought together based on the roles in the structure of the organization.
Formal groups are permanent and changes may occur according to the performance of
each group. This groups are very helpful in achieving specific task on given time. This
creates a healthy environment among the team members (Lammers and Hickson, 2013).
Formal groups are very helpful British Gas and EDF.
B. Informal groups: This groups are formed without any specific goals. Employees of the
firm themselves form this type of groups. These group do not have a specific purpose and
these type of groups are formed because these group members enjoy each other’s
company or they happen to be in same location. This type of groups is not at all
beneficial for British Gas and EDF.
C. Primary groups: This groups includes small groups of members who interact regularly.
In each small group they have a leader who guides them and provide them goals to
achieved (Different forms of Groups, 2014). These groups develop values, culture and
belief which are very helpful in creating a healthy environment in the firm. This type of
groups are beneficial for British Gas and EDF but firms have to create many groups
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which becomes difficult to control and for each group a leader have to be appointed
which will be time consuming.
D. Secondary group: It is a group of large members who do not know each other. In this
group, members do not get chance of interacting with each other. Members of this group
have their own goals and agenda (Hogg and Terry, 2014). This type of groups is not at all
helpful.
Among all this groups formal groups are best for British Gas and EDF and through this groups
firm will be able to achieve their goals and objectives. Members of formal groups are highly
motivated and perform effectively and they have a healthy relationship with each other.
4.2 Factors which effective teamwork in EDF Energy and British Gas
For effective teamwork, the firm needs to know the factors which affect the team.
Following are the factors which will help in promoting teamwork in EDF and British Gas:
o Communication: Effective communication and interactions with the team members are
very essential, as it help to know the problems which workers may be facing. Open
communication should be encouraged so employees convey their ideas and suggestions
for development of the organization (Hassard and Pym, 2012). Regular meeting should
be held so that members can be updated and importance information can be
communicated. In order to understand the organizational goal and deciding on the path
through which goals can be achieved, effective communication is very essential.
o Focusing on the goal: A team should be driven through a common goal. Goals which
has to be achieved by the team should be spelled out in advance and members should be
made understood the ways through they could achieve the goals. The goals which have to
be achieved should be written at a place where everyone could see it. When a group will
have a definite goal, then the members will be able to achieve the goals easily.
o Leadership: Leader is the one who influences the team members and motivates them in
performing their job more effectively (Jafri, 2012). The leaders of the group must be
patient, knowledgeable, supportive, and creative so that members of the group could
follow them and improve their performance of work. It is often found that members of
the group have some issues with each other. Leader should be capable enough to handle
this all kind of problems and should be able to guide the members effectively.
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o Cohesiveness: It is referred to the strength and degree of interpersonal interactions
among the members of the group. High cohesion means members are highly motivated in
achieving the organizational goal. Attributes which identify cohesion are loyalty,
friendliness, willingness, etc. More the member of the group are attached to each other,
then more efficiently the goal can the achieved.
o Compensation: Team members will work more effectively when they will be provided
with compensation according to the performance of their job (Bond and Muethel, 2012).
It will be very helpful if the compensation plan is developed before the team is
assembled. If the team members feel, that they are fairly compensated then they will
work more effectively.
4.3 Technological impact on EDF Energy and British Gas
Technological change has proved to be helpful for organization in achieving the goals
and objectives of the firm. It has made the efforts less and increased out comes. Technologies
like email, mobile phones, internet, etc. have proved to be highly effective in improving
performance of the team. Big revolutionary change has been brought with the help of mobile
phones. It has help in passing on to information within no time (Symon and Cassell, 2012). Even
when team members are outside, information can easily be conveyed to the other members. In
addition to all this, advancement in technology like video conferencing has enabled to have
meeting with anyone around the world. Other benefits like monitoring sales forecasting,
conducting business through websites, managing customer's data base, has effectively helped
team in achieving organizational goals. New technology helps in monitoring the performance
level of the members. Monitoring the performance of the employees helps in improving the
performance level.
CONCLUSION
From this report, it can be articulated that British Gas follows democratic leadership style
were all the employees are allowed to take decision. On the other hand, EDF Energy follows
transformation leadership style. In this style this firm mainly focuses on achieving the tasks.
Further, EDF Energy should adopt Need Hierarchy Theory in motivating their employees as it
covers all the required areas through which employees get motivated and improve their
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performance. In addition to this, retaining and attracting customers will be very effective through
marketing research. Further, formal groups are best for the organization as it enables to achieve
the goals and objective at given time.
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Belussi, F. and Staber, U.H. Eds., 2012. Managing networks of creativity(Vol. 19). Routledge.
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