Organizational Behavior and Its Impact

This assignment delves into the realm of organizational behavior, examining various theories that shape workplace interactions and individual conduct. It explores topics such as Maslow's Hierarchy of Needs, motivation, knowledge sharing, organizational citizenship behavior, and team dynamics. Students are tasked with analyzing these concepts and their practical implications for enhancing employee performance and fostering a successful organizational environment.

ORGANIZATIONS
AND BEHAVIOR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
2.1 Effectiveness of different leadership style in organisations.............................................1
2.2 How organisational theory underpin the practice of management...................................2
2.3 Approach to management.................................................................................................2
3.1 Impact of different leadership styles on motivation.........................................................3
3.2 Application of different motivational theories.................................................................4
3.3 Usefulness of motivation theory for manager..................................................................5
4.1 Nature of groups and group behaviour.............................................................................6
4.2 Factors making team effective as well as threatening......................................................6
4.3 Impact of technology on team functioning.......................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Organisations and behaviour both are interrelated to each other. This concerns with
working environment of the organisation such as employee behaviour, leadership, management
style. These help in understand organisational culture of working and its structure. Participation
of individual employee and its behaviour with customers help organisation to set image in the
mind of customers. These also help to understand the leadership and management style which
followed by particular organisation. These provide guidelines about how enterprise motivates its
employee toward objective. OB concern with technology used by that organisation and
knowledge of employee to operate.
2.1 Effectiveness of different leadership style in organisations
Every organisation uses different leadership styles for managing its employees.
Organisation use leadership style according to working culture of it. Leadership requires
understanding human behaviour in the organisation (Bess and Dee, 2012). There are many types
of leadership styles which can be use by different organisations, they are as follows;
1. Autocratic leadership:- Under this style of leadership, the leader keep all authority
centred and employees have to work as pre order given to them. In this type of leadership
decision taking power is in hand of one person. This leadership style helpful in making
quick and clear decisions but it lowers the motivation of the employees (Blomme and Te
Lintelo, 2012).
2. Democratic leadership:- This leadership style concern with group centred. In these
decision are not taken by manager but it taken in consultation with employees. These
help in build cooperative relations and open communication. This resulted to high morale
of employee but delay in decision making.
3. Free rein leadership:- This leadership style give freedom to employees to take decisions
in their working area (Ki and Hon, 2012). Many times these cause of low cooperation.
In context of given case study, City college having autocratic leadership style. Principle
is the leader of college and direction is given by them and it is necessary for all to follow that
directions. Principle has all rights to make rules & regulation and all the staffs and students have
to follow as per order given to them (Nutbeam, Harris and Wise, 2010). Another company Rent-
A-Car use democratic leadership style, it gives freedom to employees to provide suggestion
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relating to their work. The management take decision through including suggestions from
employee’s side.
2.2 How organisational theory underpin the practice of management
Organisational theory used in many ways for a business. These help in study of
organisational design, organisational structure and its relationship with external environment.
Organisation use different styles for work getting done through maximum utilization of resources
within a fix time period (Palliam, 2012). These theories help management in focus on the effect
of organisation on the behaviour of individual. These also concern with performance, survival
and success of the organisation. There are some basic theories which are used in both
organisations such as;
1. Modern organisation theory:- This theory concern that organisation is a system which
change itself according to the environment. Modern approach is a dynamic process of
interaction with others. This is descriptive and adaptive approach for the organisations
(Teh and Sun, 2012). Rent-A-Car is working with this theory because they more focused
on interaction with its employees and increase motivation level of employees. These also
followed by City college because it is necessary to follow discipline in these type of
institution and this approach deal with such terms multidisciplinary, descriptive and multi
variable.
2. Contingency or situational theory:- This theory describe that, there cannot be universal
parameter which is suitable for all situation in company. This system is directly related
with environment (Blomme and Te Lintelo, 2012). These approach says that every
organisation have different environment and it need different organisational relationship
for effectiveness in work.
3. Administrative theory:- This theory focus on accomplishment of task and concern with
principle of management and function of management. This theory used by management
of both company, Rent-A-Car divided its work on the basis of location office and City
college divided its work in different departments according to work.
2.3 Approach to management
Different approach implement to know the degree of complexity in the program and to
find objective of the organisation (Buchanan and Huczynski, 2010). The main aim of these
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approaches is to develop combined use of managerial knowledge. These focus on personal
development and management to improve their leadership qualities. All approaches are based on
personalisation, building confidence, integrated learning, etc. There are some basic approaches
which explain organisation and its structure, they are as follows;
1. Scientific management approach:- These approach deal with planning of work to achieve
simplification, standardisation and efficiency. These focus on improve productivity
through creating cooperation between management and workers (Hua and Lu, 2013).
These approach use by Rent-A-Car for improve its service quality through enterprise
service quality index (ESQi) to measure the quality of service provided by company. It
deal with scientific selection of the worker and provide scientific training to them. These
approach also use by company for train its employee to lead other worker.
2. Bureaucratic approach:- These approach focus on needs of organisation to operate this
effectively in the direction of achieving objectives (Darling and Nurmi, 2009).
Bureaucratic approach suggests that division of labour need for better outcomes with
minimum investment. These approach use by City College where they divide work force
according to departments such as teaching, human resource and administration
department. Both the organisation use chain of command and hierarchy for effective flow
of information from top to bottom.
3. Human relations approach:- These approach concern with human beings, they are not
only interested in financial benefits but also need appreciation (Eikenberry, 2013). Rent-
A-Car uses these approach through providing scope of growth to the employees.
3.1 Impact of different leadership styles on motivation
Leadership has a direct effect on organisation and its success. Leader is the person who
directly connects with employees who fall at lower level of hierarchy. They work as a mediator
for organisation and workers because organisation gives direction to them and they give to
subordinates (Eyal and Roth, 2011). Leadership style is different from company to company and
their work as well. All leadership style is useful in different conditions. In the context of case
study, leadership styles which can impact on behaviour of the staff are classified further;
1. Autocratic:- These style regularly follow by City college, it helps principle in fast
implementation of orders provided to staff. In this type of organisation it is important to
have centralised authority system (French, 2011). Autocratic leadership in Rent-A-Car
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help management to take decision fast but it negatively impacts on the working of
employees and cause for lower productivity.
2. Democratic:- This leadership style more successful than any others. These can use by
City college for inviting suggestions from staff to improve facility of library and so on,
these help in improve participation of the staff. It is also use by Rent-A-Car for taking
group opinions and provides rights to take decision of that particular working area
(Huang and Hsu, 2009). It will help in motivate employees and result come through
increase in productivity.
3. Laissez faire:- This leadership style have no scope in organisation like City college
because it need interfere of principle in every kind of decision. These can partly apply in
Rent-A-Car enterprise to give freedom on branch level office.
3.2 Application of different motivational theories
These theories can adopt by City College and Rent-A-Car enterprises for increase
motivation level of employees.
1. Maslow's theory:- according to this theory, everyone have some basic needs such as
personal and relating to their work. Basic need or physiological needs are food, shelter,
base salary, etc. When it got fulfil, employee look forward for fulfil its safety (freedom,
work safety, job security) needs (Jerome, 2013). This hierarchy also include
belongingness (family, friends, teams, supervisors), Self esteem (community, recognition,
status in the society, responsibilities) and self-actualisation (personal growth,
advancement). But this theory not work with every employee.
2. Two factor theory:- According to Herzberg theory, there are two main factors which
affect motivation in different ways;
Hygiene factors:- These include those facilities which appearance are not affect employees in
positive way but absent of them are cause of dissatisfaction and de-motivation such as status, job
security, salary, work conditions, holiday, etc. (Ki and Hon, 2012). It mainly focuses on extrinsic
factors which absent cause of dissatisfaction among employees.
Motivators:- These are intrinsic factors and its presence motivate employees. These include
sense of achievement, recognition, responsibilities and personal growth. These come under self
actualisation in Maslow's theory.
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3. Theory X and Y:- according to Douglas McGregor theory management styles are directly
influence by beliefs and assumption of employee. It focuses on “what motivates co-
worker of a team to do work (Landy and Conte, 2010). Theory X assumes that employees
are de-motivated and do not like working. It also assumes that employee avoid
responsibilities and need to be direct. Theory Y focuses on management style which is
de-centralized and assumes that employees are self motivated and responsible.
3.3 Usefulness of motivation theory for manager
Motivational theory's main aim is to generate profit through motivate its employees.
Managers of both companies (City College and Rent-A-Car) can use all motivational theory in
below described manner;
1. Maslow's theory:- According to this theory employees have different kind of needs and
they are in hierarchy. Manager can go through this theory to identify basic needs of
employees. They can fulfil employee’s basic needs by providing food and base salary so
that employees get motivated (Marchington and Wilkinson, 2008). When base need of
employee fulfil, they want work safety and job security and if manager provide these
facilities to them they ultimately get motivated. These include physiological, safety,
social, esteem and self-actualisation needs. Fulfil of these needs resulted to high
motivation level of employees.
2. Two factor theory:- Herzberg developed a motivational theory which focus on two
separate categories. First of those factors is hygiene factor which cover all those forces
that are cause for dissatisfaction if they lacking. So if manager provide good working
conditions, pay, job stability, extra benefits and status to the employees, these not result
to increase in motivation but it helps in create state of neutrality (Chou and Pearson,
2012). Second factor is motivators which include personal growth, achievement, etc. and
these factors stimulate employees to perform at their best level.
3. Theory X and Y:- By concern this theory manager can take decision on the basis of
category of employees. Manager wants not to avoid the work of X category's employee
and try to support them so that they get motivated. For Y category's employee, manager
has to give more responsibilities and opportunities.
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4.1 Nature of groups and group behaviour
Group behaviour is concerned with interactions and reactions of the people working in a
group. The name of the group can be recognised on the basis of the behaviour. There are some
qualities, characteristics and differentiations associated with a group which makes its
identification (Naranjo-Valencia, Jimenez and Sanz-Valle, 2011). There are two types of groups
which includes formal and informal groups.
Enterprise organization is having an informal structure. For instance it functions on the
basis of an open door policy. It facilitates the employee to have a direct conversation with their
seniors. This denotes that employees are allowed to given their views and opinions on what is
happening within the organization. The information flows from one end to the next end in a free
manner.
The owner of the Enterprise believes that profits will follow automatically if very good
care of customers and employees is kept within the business (Rolfesen, 2012). However, it is to
be noted that Enterprise is operating on a big scale and consists of more than 75000 employees.
There is a need to bring formal processes and systems for the purpose of maintaining discipline
and control within the company.
On the other side at City College a very formal kind of behaviour is found. The
organization is divided into three major parts which includes teaching, human resource and
administration. Individuals within the company are aware of their respective roles and
responsibilities. There is a structure for every department and the information flows from one
end to another end in formal manner.
4.2 Factors making team effective as well as threatening
The factors can be described as follows:
 Common goal – If some people are working as a team, they are required to have a
common goal. Framing of a common goal is essential to bring unity and collectivism
(Sevi, 2010). It helps in moulding the efforts of the team members in the same direction.
For instance at City College, there are different departments working and they have
different goals. Despite of that they all work together that means the administration
division unites with the human resource division for the management of records related to
students in the college. On the other side in the absence of a common goal, people will
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focus on their individual goal rather than the common goal. Hence, this can be a threat to
the business.
 Leadership – Selection of a leadership style also makes an impact on the behaviour of the
group and team (Bess and Dee, 2012). For example at Enterprise, managers adopt
different leadership styles according to the given conditions. There are leaders at different
levels within the hierarchy. However, selection of wrong style of leadership may lead to
ineffective results. The followers may not get influenced from their leaders due to wrong
leadership styles
4.3 Impact of technology on team functioning
Both the organisation needs technology for improvement in its working. It allows
companies to work efficiently with effectiveness. Nowadays technology change very fast and it
is necessary to update teams itself for functioning effectively. Impact of technology on the
functioning of team is as follows;
 Efficient productivity:- The use of technology help company in efficient its productivity
(Blomme and Te Lintelo, 2012). Use of technology such as social media helps City
College to attract more students and help Rent-a-car in getting more customers.
 Better communication:- Use of technology help in improve the communication in team
members and it directly help in team building.
CONCLUSION
Both the organisation operation on large level, City College divides its work into
departments and Rent-a-car divides its operation in different branch offices. The college prefer
working with local community. These organisations use autocratic style of leadership. Rent-a-car
focuses on enterprise service quality index (ESQi) and using democratic leadership style.
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REFERENCES
Books & Journals
Bess, L. J. and Dee, R. J., 2012. Understanding College and University Organization: Theories
for Effective Policy and Practice. Stylus Publishing, LLC.
Blomme, R. and Te Lintelo, K., 2012. Existentialism and organizational behaviour. Sage.
Buchanan, D. and Huczynski, A., 2010. Organizational Behavior and Companion Website
Access. Financial Times/Prentice Hall.
Chou, S. and Pearson, J., 2012. Organizational citizenship behaviour in IT professionals: an
expectancy theory approach. Management Research Review. 35(12). pp.1170 – 1186.
Darling, J. and Nurmi, R., 2009. Key contemporary paradigms of management and leadership: A
linguistic exploration and case for managerial leadership. European Business Review.
21(3). pp.201 – 214.
Eyal, O. and Roth, G., 2011. Principals' leadership and teachers' motivation: Self-determination
theory analysis. Journal of Educational Administration. 49(3). pp.256 – 275.
French, R., 2011. Organizational Behavior. John Wiley & Sons
Hua, L. R. and Lu, L., 2013. Technology strategy and sustainability of business: Empirical
experiences from Chinese cases. Journal of Technology Management in China. 8(2).
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Huang, S. and Hsu, C. H. C., 2009. Travel motivation: linking theory to practice. International
Journal of Culture, Tourism and Hospitality Research. 3(4). pp.287 – 295.
Ki, J. E. and Hon, C. L., 2012. Causal linkages among relationship quality perception, attitude,
and behavior intention in a membership organization. Corporate Communications: An
International Journal. 17(2). pp.187 – 208.
Ki, J. E. and Hon, C. L., 2012. Causal linkages among relationship quality perception, attitude,
and behavior intention in a membership organization. Corporate Communications: An
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Landy, F. and Conte, J., 2010. Work in the 21st Century: An Introduction to Industrial and
Organizational Psychology. John Wiley & Sons.
Marchington, M. and Wilkinson, A., 2008. Human Resource Management at Work. Wiltshire:
CIPD
Naranjo-Valencia, J, Jimenez, J, and Sanz-Valle, R., 2011. Innovation or imitation? The role of
organizational culture. Management Decision. 49(1).pp. 55-72.
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Nutbeam, D., Harris, E. and Wise, W., 2010. Theory in a nutshell: a practical guide to health
promotion theories (pp. no-no). McGraw-Hill.
Palliam, R., 2012. Enabling a motivated workforce: exploring the sources of motivation.
Development and Learning in Organizations an International Journal. 26(2). pp.7 – 10.
Rolfesen, M., 2012. Graphical profiling of team working through participatory research. Team
Performance Management. 18(1/2).pp. 27-40.
Sevi, E., 2010. Effects of organizational citizenship behaviour on group performance: Results
from an agent-based simulation model. Journal of Modelling in Management. 5(1). pp.25
– 37.
Teh, P. L. and Sun, H., 2012. Knowledge sharing, job attitudes and organisational citizenship
behaviour. Industrial Management & Data Systems. 112(1). pp.64-82.
Online
Eikenberry, K., 2013. Nine Ways to Contribute to Project Team Success. [Online] Available
through: <http://www.projectsmart.co.uk/nine-ways-to-contribute-to-project-team-
success.html>. [Accessed on 17th December 2015].
Jerome, N., 2013. Application of the Maslow’s hierarchy of need theory; impacts and
implications on organizational culture, human resource and employee’s performance.
[pdf]. Available through:
<http://www.ijbmi.org/papers/Vol(2)3/Version-2/G233945.pdf>. [Accessed on 17th
December 2015].
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