Impact of Leadership Styles on Business Activities and Structure

This article discusses the impact of different leadership styles on business activities and organizational structure. It explores the effects of autocratic and participative leadership styles on employee performance and retention.

Departament of HND Business and Management Studies
Faculty of Business and Management Studies
Coursework:Organisations and Behaviour
Organisation and Behaviour

Departament of HND Business and Management Studies
INTRODUCTION
Employees coordinate the activities with the other person so that they can obtain
the roles and task with the skills and capabilities. Assigned task has to be ful filled by
the members of corporate with equal deduction so it can fulfil the purpose of entity .
Performance of the organisation is the study of the performance which is given by the
individual and the group (Parikh, 2010). In today's charismatic trade habitat, it is
imperative to the entity that they have to adopt the tools and techniques so that by using
the proper way they ensure the best interest. The company which is used in this
assignment is GSK which deals with health and care products, pharmaceuticals. This
study helps to analyse the different aspects of the company and the behaviour with the
trade enterprise while the various fields which include work in team and leadership etc.
TASK 1
1.1
Organisation structure is the essential part of the enterprise. Along with this it
helps in obtaining the substantial which affect the performance in the market. A stratified
conversation process, rights of firm and arranged the structure which shares the
theories, beliefs that administer behaviour towards work in the organisation (Robbins,
2013). GSK PLC should adopt an appropriate organisational structure because it tells
about the level of hierarchy. The most essential element of the organizational structure
is its specialisation in work. To achieve goals and objectives depends upon Employees
performance is the necessary. The corporation can have the structure of two kind the
first is tall and second is flat

 Tall structure – In this structure there are many levels of hierarchy. GSK PLC has
adopted Tall structure with different levels of administration calibration.
 Flat structure – It is an organisational structure with few or no level of middle
management between staff and executives. Aesica has adopted flat structure,
which is having less number of levels and management can directly
communicate to other departments.
Chain of command is the responsibility and the authority for the corporate which is
assigned from the top management level of the enterprise and it has two types which
includes short as well as long term. Span of control refers to the manager's position and
how leader controls and coordinate with subordinate. It has two types of span control
i.e. wide and narrow.
Organisational culture is the set of responsibility, attitudes, beliefs and attaining
the responsibility helps the employees of the enterprise. By using the Model which is
given by Charles Handy, company follows distinct type of culture. First, power culture –
In GSK PLC and Aesica, working members having the power and only they have the

Departament of HND Business and Management Studies
right to take the better decisions in the favour of the entity. Second, task culture – in
both the enterprise, is to achieve the targets and the objectives by various team or to
sort out the problems with give members in the troop. Third, person culture – working
staff feel that they are powerful (Buchanan and Huczynski, 2010). Fourth, role culture –
in GSK PLC and Aesica, the higher authorities of the entity assigned the different roles
and responsibilities to their managers. Along with this the responsibilities which are
assigned to them they are based on interest and qualification and by that they can
adopt the many challenges.
1.2
The essential part of the organization structure is to share the values by the
enterprise. Several issues faced on daily basis by GSK like the working pattern of
management, code of conduct, agreement by the superiors and the various level from
which the conflicts passes that helps to develop the working style with effectiveness of
the trade entity (Schermerhorn and et. al., 2011). By adopting the structure of the
corporate, GSK forms different groups to regulate the business activities to mange the
roles and responsibility efficiently and effectively. The structure of framework helps in
the effective communication and coordination which develops the healthy culture in the
enterprise and motivate the working stiff to work in the proper manner to attain the set
goals. Structure of the company helps in describing the responsibilities of the individual
person. Along with this they have to maintain the relation which helps in monitoring of
the employees so that they can manage the work and do the proper control. This
concept defines a clear view of the roles, duties and responsibilities towards
organization which helps to improve coordination between tasks which develop a
positive culture (Barron and et. al., 2013). These factors help the leaders in setting up
the vision and mission of trade enterprise as well.
1.3
Behaviour of the individual person affect the factors related to the personal and
environmental. Every organisation is made by the individual and they have to organised
the work by using the different data so that they can achieve the common objective
(Harrington and Kang, 2008). Factors that affect the GSK PLC Staff members are
explained as follows:

Personal factors – These factor influence the individual behaviour at office
premises with some classified characteristics of personal factor. It is generic in nature.
Organic factors are those factors which include age, gender, religion etc. and learned
characteristics assist in doing the changes in the behaviour including its personality and
perception.
Environmental factors – These factor is affected by the each staff member of the
organisation with impact on the environment i.e. political environment, legal
environment and socio-culture environment. (Iemmi, Knapp and Jackson Brown,
2016b). The impact on individuals of economic factors may be directly or indirectly
which involves the level of employment, wage rate etc.
Demographic characteristics – These factors assist in defining the change in
behaviour permanently which gives the proper outcome to do the interaction with the
consumer in environment. Leaders have to lay down the stress on study, envision and
learnings the demographic factors. In this factor elements are taken as per the age,
gender, taste and preference.
Psychological factors – These factors describe the thoughts and cognitive
characteristics which affect the behaviour of the person and the functions which are
done in the entity. These are the factors which influence the thinking of the consumers
and affect the relations and decisions in daily life.
TASK 2
2.1
Key components of leadership style are to provide the direction, implementing
plans and motivating the individuals. There are various types of style proposed which
the leaders can be used in the political business. Components which affects the higher
authorities and the new applicants of GSK PLC are as follows:-
Autocratic leadership style – It is the concept which divides the leader and
worker. Senior and administration level have the decision making power and the
involvement of middle level staff members is less interference and involvement in it.
(Kang and Harrington, 2008). The management of GSK is confident and comfortable
with the judgements as they have good management team in the field of operating

Departament of HND Business and Management Studies
activities and strategic planing or the corporates. This research shows that comparative
style has more creativity as compared to autocratic leaders.
Authoritative leadership style – In this style, team leaders have to do the proper
control. Along with this they have to make the appropriate decision and have to fulfil the
authorities. The task which are provided to them they are based on the performance of
the employees in the entity. Along with this they have to fulfil the responsibilities with the
capabilities so that they complete the work in the appropriate manner in the given time.
This style has been adopted by GSK PLC so that they can upgrade the position in the
competitive market. This style having the less flexibility which assist in making the
correct decision. It distributes the responsibilities and also provide training so that
working members perform better which reflects high control but less involvement of the
employees.
Leadership style related to demographic – In this leadership style, leaders are
helpful in making the appropriate team. Along with this they communicate with the
individual so that they can discuss the problems. (Knapp and et. al., 2015). By solving
the issues and conflict it creates a positive environment which develops a mutual
approach of the working. The enterprise use this system to create the open
conversation process with the help of administration team.
Different leadership's have the different effect on the organization. Authoritative
leadership is where the decisions are only taken by the top level of management which
affects the relation between the top management and staff members of the organization
because it does not involve the staff members to give suggestions to the top
management. Whereas in the authoritative leadership the management has to make the
decision with the proper control over the members of staff. It is adopted to fight the
competition in the market. In the demographic leadership style the management helps
to make a perfect team. They are involved with the staff member to help them in their
problems.
2.2
Structured organisation helps in doing the proper management so that they can
fulfil the roles which are assigned to them and also helps in attaining the predetermined

objectives. They have to influence the efforts which are done by the employees for the
appropriate work. Theory of scientific management is the old approach and adopt by
the business in the different aspects. They are :
Division of work – It is the break down of the job into groups. Different task to different
people or group of people has been allotted. It helps in assigning the work to their staff
member so that they can increase the efficiency. GSK having the distinct departments
and also distribute their work in the different functional area in entity.
Authority – The concept which is related to authority and duty. It helps in developing the
process of authority system and have to establish the aspects of the leadership which
helps in dividing the domination of the entity (McGill, 2008).authority is the power to
gives the order to make the staff members work. Organization has the administrative
control over staff members.
Discipline – The staff members of GSK have to develop the code of conduct which aid
in creating the significance of the aspects of the discipline. Along with this they have to
do the appropriate management which succour in maintaining the quality.
Unity of command – This factor has been adopted by the system of GSK so that they
can form the rigid structure which helps in developing the unity of command by
developing the outlets.
Remuneration – It helps in determining the labour pay rate so that they improve the cost
of living. GSK have to start the schemes and plans for the incentive so that they provide
the encouragement of the employees to do best work (Schermerhorn and et. al., 2011).
2.3
There are different type of approaches which helps in the entity in doing the
proper management. GSK follow the distinct approaches in the administration process
which are :-
Classical approach – The company members have to use the classical approach so that
they can use the concept of the classical theory. They have to use the appropriate
structure of fulfilling the power, roles, objectives, communication and other factors which
exist in the entity so that they have to do the proper work together. They have to use the
appropriate structure instead of fulfilling the needs and wants of consumer (Reid, Sholl

Departament of HND Business and Management Studies
and Gore, 2013). Classical approach emphasis on formal structure, hierarchy of
management, technical requirement and principles of organisation.
Neoclassical approach – The entity can also make the use of neoclassical approach.
The company members have to do the proper modifications or the improvements by this
approach and also helps in focusing on the social aspects of the employees. This will
helped the company in creating high aspects of motivation within the staff members
which influence the motivational power of working stiff and brings the innovation in the
trade. It emphasis on the satisfaction of the employees. It is more towards the individual
behaviour.
Modern approach – It focuses on the process and people so that they can make the
appropriate decision. So that they can do the proper activities along with this it helps the
manager that they have to fulfil the roles and have to do effective communication. It
includes system approach, socio technical system approach and contingency approach
(Snell and et. al., 2013). In approach of contingency, they have to use the appropriate
theories so that they can retain the employees in the company which helps in proper
management. Along with this they have to make a proper plan and the HR have the
capabilities to solve the conflicts among the employees. This theory has the impact of
environment on the effectiveness of the organization.
TASK 3
3.1
The styles of leadership having the impact on the activities of business and
structure of organisation. These styles having the effect everyone in the company and
by this performance of the employees as well as company influence. Effects of these
styles on the employees of GSK PLC are described below:
Autocratic Style – This style helps in making the appropriate division between the
workers and leaders and by that leaders can make appropriate and correct decision
with the less involvement. The administration of GSK PLC have to take the decision so
that they can do proper control by fulfilling the responsibility for plans of corporate
(Avey, Luthans and Youssef, 2010). It helps in achieving the result with the low
involvement of the employees which create a negative impact on the retention of the
employees and by that they get the encouragement in the business.

Participative leadership – Another name of this leadership style is democratic leadership
and most commonly used by the employees in the company and which can be used by
GSK PLC and this style is just opposite to autocratic style. The administration of GSK
have to provide the appropriate training to their staff members so that they can do
qualitative work and training is provided to them according to their departments. Every
employee of the company have to attend the training and manager of the company
have to take the feedback which is very important to do the developments. Along with
this they have to make the appropriate decision by taking the suggestions from the team
members so that they get motivated. It gives a positive impact on the performance of
the employees and due to that they feel power and confidence to do their job and
decision making (Bolino and et. al., 2013). This will give the result in developing
innovative working styles within working stiff of GSK.
3.2
In the workplace, to create a better environment manager have to use the
theories related to motivation. Different theories which includes Maslow's hierarchy
theory, Equity theory, Herzberg's motivation theory etc.
Maslow's hierarchy of needs – It helps in defining the approach related to humans which
assist in fulfilling the different needs at the distinct level. The lowest need is
physiological need. Along with this the uppermost is growth needs which helps in
providing the satisfaction. To satisfy all the needs of the working staff conditions and
safety and then meet the social needs for the good team having a strong culture
(Fischer and Mansell, 2009). The self actualisation need is the needs of growth and
development of working stiff to increase the motivation.
Equity theory – This theory explains the pay and reward system and also tells that the
person who are promoting and also attain the high payment then this having a negative
impact on the other employees. If the staff members treated as fair person then they get
encouraged and if the person who are treating as unfair as they are to be feel as a
demotivation.
3.3
For the better performance motivation theory is to be used. For fulfilling the
needs of the employees managers have to use Herzberg two factor theory so that it

Departament of HND Business and Management Studies
increase the productivity by increasing the satisfaction of the working staff. For the
motivation of the employee's remuneration is to be provided on the basis of
performance and the new ideas and by doing the extra work rewards is to be given to
the employees with the attainment of motivational theory. A motivational theory. For the
overall performance of the working stiff, it is the valuable for the entity that they have to
transform the attitude so that they attain the maximum profit and the customer loyalty
(Gelfand, Erez and Aycan, 2007). When the entity is providing the motivation to their
employees then they do the efficient work. Monetary elements which are provided by
the company to the employees which includes bones or incentives. To feel encourage
or motivated they have to capture the opportunity.
TASK 4
4.1
The performance of the individual person and the whole group which helps in
playing the essential role so that they can attain the goals and objectives of the
company. They have to do them proper work which helps in improving the profitability
and productivity. Along with this assist in creating a positive impact on the operational
activities of the entity. The company members have to do the effective work which helps
in doing the trade activities and they have to determine the behaviour of the person of
the group so that they can analyse the aspects of the firm.
Formal groups is that groups which assist in creating the achievements of the pre
determined goals and objectives in the entity. The company members have to follow the
structure so that they can maintain and fulfil the authority (Hoffman and et. al., 2007).
Theory of group formation describe the different stages which includes Forming,
Storming, Norming and Performing.
Informal groups helps in developing the work in the contemplated basis by the
preferences and needs. It helps in managing the working environment so that
employees can do qualitative work. Along with this it helps in defining the group which
having the informal behaviour by which they enhanced the high level of frustration
among the employees.

4.2
The factors which assist in promoting the development of the work which is done
in a team. They are :-
Diversity – The teams of the entity should be effective and have to use the appropriate
culture along with the personality. They have to do the proper work with the creativity
and innovation so that they create the awareness and also helps in supporting the
troop. If it is not managed properly, these differences raise the potential for the conflicts
within the teams which is very harmful (Parikh, 2010).
Communication – It facilitates by clear and open conversation. All the team members
respect to the targets and responsibilities. The staff members have to use the effective
communication and they feel comfortable by asking the appropriate questions and have
to fulfil the responsibility. When a conflict arise, then they have to use the appropriate
technique which helps in overcoming the situation by the effective communication which
assist in avoiding the issues.
Leadership – Leadership should be effective as it supports the team work. This helps in
motivating the employees and have to maintain the discipline among the staff members
so that they do the work with the potential and improve the performance as well as
productivity. Characteristics of leaders which are doing the work effectively are
agreeableness, adjustment and intelligence (Robbins, 2013).
Team-Building Exercises – The company members have to share the experiences by
using the team building exercise by which they can target the performance of team.
They have to do the effective communication, solve the problems and also complete the
work with the creativity. They have to use the effective way which assist in building the
relationship. Along with this they can assess the strength and weakness.
4.3
Technology is developing day by day, so with the latest trends it is the demand
and need of the time to work. The company members have to use the proper
technology which having the impact on the functions of the company. The company
members have top use the new and innovative technology which helps in improving or
earning the high revenue. They have to use the appropriate tools and techniques so
that they can do the proper team work. It helps the workers in doing the proper work as

Departament of HND Business and Management Studies
they are from the different background. The company members can use the emails as
well as the video conferencing so that they can do the work in the better way and
improve the performance (Buchanan and Huczynski, 2010). The company members
have to resolve the issues by using the phones as it takes the less time. They have to
provide the appropriate quality so that they can increase the quality by using the distinct
system of software. They have to do effective conversation so that they can resolve the
issues.
CONCLUSION
As the above analysis it can be conclude that the key aspects for carrying out the
operational activities of firm are organizational structure and the business culture.
Structure. Further different approaches concerning to the different leadership styles that
are used in management functions are evaluated. Moreover, the management staff of
GSK PLC have made the use of motivational theories such as Maslow's, etc.

REFERENCES
Books and journals

Departament of HND Business and Management Studies