Leadership and Organizational Changes: Theories, Motivation, Performance, and Human Behavior

This report discusses the theories of leadership and people management, motivation and performance, and basic notions of human behavior in organizations. It explores ways to motivate staff, the effectiveness of reward systems, and how to monitor employee engagement and performance. The report also covers how to plan and deliver individual assessments.

Leadership and Organizational changes

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Contents
Leadership and Organizational changes................................................................................................0
Introduction...........................................................................................................................................2
1. Theories of Leadership and People Management..........................................................................2
1.1. Leadership skills....................................................................................................................2
1.2 Difference between leadership and management.........................................................................3
1.3 Leadership style in different situation..........................................................................................3
2. Motivation and performance of leadership........................................................................................4
2.1 Ways to motivate the staff...........................................................................................................4
2.2 Motivation theory and Reward..................................................................................................5
2.3 Effectiveness of Reward system..................................................................................................5
2.4 Monitor employee engagement and performance........................................................................6
3. Basic notion of human behaviour in organisation..............................................................................7
3.1 Factors involved in planning the monitoring and assessment of employee performance.............7
3.2 Plan and deliver the assessment need of an individual...............................................................8
3.3 Assessment Process...................................................................................................................10
4.1 Benefits of team –work..............................................................................................................11
4.2 Role of a Leader.........................................................................................................................12
4.3 Team effectiveness....................................................................................................................13
Conclusion...........................................................................................................................................14
References...........................................................................................................................................16

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Introduction
An organisation achieves the success when it has strong leaders and managers that
support, develop and encourage employee towards the organisation activities. People
management and leadership are the both terms which are important for the profit of an
organisation but it has significance difference between leadership and people management.
Leadership is an ability of an individual to lead or guide other individual, teams or the
members of an organisation. Managing the people within an organisation is called people
management (Goetsch, & Davis, 2014). In this report, the discussion will be made on these
two topics “Leadership and People Management”.
In starting of the report, theories and differences will be discussed to understand the
both terms such as leadership and people management. After that, the discussion will be
made on motivation. After analysing the motivation theory, the work performance of an
employee will be discussed. At the end of the report, development and effectiveness of team
will be discussed.
1. Theories of Leadership and People Management
1.1. Leadership skills
It has been seen that an organisation can easily achieve success when the company
have strong leaders to perform well. The leaders should have strategic thinking skills,
planning and delivery skills, communication skill and others:
Strategic Thinking skills
The best strategic thinkers see the big success of an organisation, it is necessary for a
leader to have strong strategic thinking skills (Gini, & Green, 2014).

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Communication skills
Communication skills are important factor for everyone, but leaders need more these
skills to motivate the team towards the organisation activities. Leader should be a good
listener who is ble to listen actively (Vernet, Moser, & Deichmann, 2015).
1.2 Difference between leadership and management
The main difference between manager and leader is that people follow the leader but
managers have the people who work for them. People follow the leader just because of trust
but manager control the people for efficient work. Leaders use the proactive strategy but
managers follow the reactive strategy. The main focus of leader is inspired the people and
manager focus on managing activities; it states that both have different responsibility. The
major difference of leadership and management is that leaders have a skill of leading other
but management is an art of organising and coordinating things in an efficient way. Leaders
follow principles and guidelines but management follow policies and procedure to manage
the things systematically. These are the difference between leadership and management
(Bolden, 2016).
1.3 Leadership style in different situation
Participative leadership theory states autocratic style of leader; leader can take the
decision without any consulting with others. This leadership style is applied when there is no
need for consulting for decisions and the decision will not change as per the result.
Democratic style of leader states that leader involves the people in decision making
process, but the process of final decision is different from the leader consultancy process.
This style is applied in problematic situations; where there is wide range of alternatives and
opinions. It is difficult for a leader to select the best decision among the alternatives.

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Situational leadership theory states the situational style of leader; an effective leader
does not fall into single preferred style. Things are not simple and straight on which the
leader can take a single decision. Leader has to change the decision as per the situation,
factors that affect the situational decision is motivational and ability of followers. Follower
behaviour also affects the leader decision and behaviour. This style is applied in the different
situations where the results are not remaining same and conditions are continuously changed
(Shields, et al., 2015).
2. Motivation and performance of leadership
2.1 Ways to motivate the staff
Appreciate them
Appreciation is a factor which can help the leader to motivate the staff. Leader has to
appreciate the employee for his quantity and quality of work. Praise is a powerful source to
improve the productivity of an employee. Appreciation receive by employee on the regular
basis improve the efficiency of an employee and also enhance the productivity. Motivated
employee always gives their best in his work (Landy, Zedeck, & Cleveland, 2017).
Divide Responsibilities
It is also factor that the employee gets motivated; a good leader is that who give the
responsibilities to its employees by trusting them. Leader divides the challenging
responsibility to its employees; it encourages the employee to give its best towards the
organisation activities.
Providing facilities

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It has been seen that employee satisfaction is necessary to improve the productivity. It
is necessary to fulfil the requirement of employee’s; so that they give their best in their work.
Facilities provided by a leader satisfy the requirements and necessity of an employee which is
the primary objective of an employee to do the job. It is also necessary to develop the good
environment with the proper facilities so that the employee does not face any difficulty to do
the better job. Proper resources motivate the employee to do the best job and providing the
basic facilities attracts the employee to do more for more facilities (Judge, & Bono, 2001).
2.2 Motivation theory and Reward
Motivation is a process in which a person influenced the others to done the things
through their skills. Motivation helps the leader to satisfy the follower needs and goals.
Motivation theories are divided into two parts that is content theory and process theory.
Content theory focuses on motivation meaning and process theory focus on the process of
motivation. Reward is a prize which is achieve by the workers during their job. Reward can
be financial gift which is pay by the company to its employee on its good performance or it
can be non-financial reward such as promotion, achievement and praise. Motivation is
process to influence the people to give their best towards the organisation activities and on
the best performance employees get the rewards. Reward is a part of motivation because a
leader encourages the employee by providing them rewards to give their best. Organisations
use the rewards as a strategy to influence the people for an extra work. Monetary reward use
by an organisation in a way from which employee is motivated. Reward is the main source to
motivate the employee that is how it links with the motivational theory (Caza, McCarter, W.,
& Northcraft, 2015).
2.3 Effectiveness of Reward system
Reward system describes the mix of intrinsic and extrinsic rewards which is offered
by the employers to employee in an organisation. This system combines the process, policies,

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and practices for implementing the system. Each organisation has its own reward system
which motivates the employee.
Employee bonus system is a strategy which can be used to motivate employees. It
depends on customer service, quality, group and individual performance. Bonus system
motivates employees which improves the productivity as well as output of employee
(Tomczak, Lanzo, & Aguinis, 2018).
Salary is also a reward system which is very important factor of motivation for
workers. It is observed that the salary is a motivation factor which motivates the people to
give their best in their work. It is a reason behind the employee’s good performance (Bartol,
& Srivastava, 2002).
Good performance of employees is a sign of good reward system; it helps the
employee to perform better in workplace. Reward system helps the company to increase the
profit through hard work and efficiency of the workers.
2.4 Monitor employee engagement and performance
There are many methods that can be used by the company to monitor the employee’s
performance. The company can use the observation and feedback method to monitor their
employee’s performance. In this method, the company hire the workers to monitor the
performance of employees where the managers of the company provide real-time feedback; it
helps the company to improve the productivity as well as the efficiency of an employee. By
observing and evaluating the performance of an employee, the company provide feedback
according to the performance of an employee (Wang, Zhang, Thomas, Yu, & Spitzmueller,
2017).

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The company also use performance standard method in which a system is used to
measure the employee performance. This system compares workers performance of
employees with the previous performance or by setting the standard. The performance of an
employee is expressed in terms of time, cost, quality, effect or way of performance (Erez, &
Judge, 2001).
Performance assessment is another method which can be used by the company to evaluate the
actual job performance of an employee against the selected performance standards. This
method helps to evaluate the strength and weakness of an employee. To improve the
weakness the company can develop an improvement plan to improve the performance of an
employee according his performance (Morris, Daisley, Wheeler, & Boyer, 2015).
3. Basic notion of human behaviour in organisation
3.1 Factors involved in planning the monitoring and assessment of employee
performance
Monitoring and assessment of employee performance refers the evaluation of the
performance of employees at the individual level. There are many factors which helps the
company to evaluate the performance of employees.
Age is a factor which helps the company to analyse the performance of an employee.
The assessor has to consider the age of an employee to measure his performance because an
employee gets the experience and their skills are also brushed up. It is observed that the
performance of an old man is very different with the performance of new employee. This age
gap is a major factor to consider at the time of monitoring the performance of an employee.
In an organisation, employees are hiring as per their ability and experience so it is necessary

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for the company that it can measure the performance of an employee according to the age,
and experience (Makoshi, et al., 2015).
Cultural diversity is also a factor which is important to consider at the time of
measuring the performance. Every employee in an organisation comes with the different
cultural background. Employee with different culture has to learn the different things and
every person has different capacity to learn the things quickly (Banks, 2015). Thus, the
company has to assess the performance with the different type of assessment process. At the
time of assessment, cultural diversity is another factor to consider measuring the performance
of an employee (Tampu, & Cochina, 2015).
Resources available are a major factor to determine the performance of employees of
the company. Available resources help the company to evaluate the level of learning or the
opportunity of learning of the learners. Some of the resources are not available in the
company which is necessary to perform well. It is necessary to have the all resources which
are useful for improving the employee performance. If the company has fewer resources then
the performance is measure according to the availability of resources. Thus, the evaluating
process of the company should be according to the availability of the resources.
Learning needs diversity is an important factor for the company to analyse the
different learning needs of the people. Every employee has different skills and wants to learn
different skills which are not present in an employee. Evaluator has to consider the learning
needs of an individual before monitoring his performance. Diversity in needs affect the
evaluation process of performance.
These are factors which has assessor has to consider at the time of evaluating the employees
performance.

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3.2 Plan and deliver the assessment need of an individual
It has been seen that the companies develop the skills after evaluating the
performance of an employee. The assessment can be delivered to them by various methods.
Motivation is the only source which encourages the employees to perform well in the
organisation activities. Motivation enhances the performance of an individual; it is the
responsibility of a leader to asses the performance and gives the feedback and appreciates the
employee on his performance to attain the objective of the company. Motivation is necessary
for developing the skills and enhancing the performance of an employee (Leary, &
Baumeister, 2017).
Delegation is a factor which encourages the employee to perform well; it is the
responsibility of a leader to delegate the responsibility according to the performance of an
employee. Delegation need should be developed in the employees so that they can understand
their responsibilities towards work. It is helpful for an employee because it develop the skills
and confidence in an individual. Team work is essential for employees and the employees
also have the responsibility to delegate the work accordingly so that they can all manage
without any conflicts and the help of manager (Dijk, et al., 2016).
Communication is a factor which helps the company to assess the individual
performance. Communication is a technique which influences the employee to do the work
hard; a manager always has a skill of communication because communication has a strong
power to influence the employees. It is most important tool to handle the employees as well
as to work effectively with team.
Assessment

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Assessment of an individual is a planned process which is evaluated to evaluate the
organisation performance. The strength and weakness of an organisation affects the functions
of an organisation as a whole. Role plays and group discussion are the most important
techniques that help the company to assess the needs of employees.
Role play
Role play is a method to create the artificial environment in the workplace which has
been created and the employees of the company has the responsibility to play the role which
has been delegated them. It helps the company in developing the employee’s skill.
Group Discussion
Group Discussion is a method in which all the members share their point of view on
the particular topic. In group discussion; directors, manager and employees of the company
has to discuss about the needs which they have to develop.
3.3 Assessment Process
The success of assessment process depends on the improvement in the skills of an
employee which affects the overall working of the company. There are many methods to
evaluate the success of assessment process.
Appraisal
Appraisal is a method to evaluate the success of assessment; in this method an
individual is praise on his performance by increasing their salary or to promote them.
Appraisal also motivates the employees to perform better next time. If 60% of employee’s get
appraisal that means employee perform well and skills are developed due to the assessment
process.

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Feedback
Feedback is a method which is given by manager to its employee on his performance.
This method motivates the employees to perform better and negative feedback encourages the
employees to tries to solve the issues in his performance. It has been seen that this method
improves the performance of an employee. If most of the employees have satisfactory
performance then it can be said that performance assessment methods achieve success.
Promotion
Promotion is the method in which the employee has been promoted due to its quality
and excellent work performance. Excellent work performance of an individual recognises the
success of assessment method.
Outcomes
Outcomes of the performance of employees evaluate the success of assessment plan.
If the outcomes of employees have been increase with the quality of performance then it
means the assessment plan is successful and if the performance of employees is not enhance
them assessment process is not much effective to develop the employees skills.
4. Development and effectiveness of teams
4.1 Benefits of team –work
There are many benefits of team work which helps the company to achieve the competitive
advantage and grab the high market share.
Build trust
Team members share a strong bond to attain the objective of the company. When
people work with each other, feeling of safety is developed due to strong trust with each

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other. Open communication is a key which build the strong trust and give the effective
solution in difficult group projects. Without any trust; the team does not attain the objective
of the company (Costa, Passos, & Bakker, 2014).
Better ideas
There are different types of members in a team which have the different skills to solve
the particular issues. Each and every member of a team presents their own ideas which help
the group to take the right decision at the right time (Dijk, et al., 2016).
Mutual support
When team is working together then the spirit to support each other is developed.
Mutual support of each other encourages the people to achieve the goals. By supporting each
other, team can easily achieve the objective.
Efficiency
It is observed that a team is working together then the capabilities to achieve the
target are increases as compare to individual. Increasing the efficiency of an employee helps
the company to gain the competitive advantage (McEwan, Ruissen, Eys, Zumbo, &
Beauchamp, 2017).
4.2 Role of a Leader
It has been seen that, conflicts and issues has been raised which is not good for the
company as well as for employees performance. It is the responsibility of a leader to control
the conflicts between the employees and enhance the performance of employees.
Distribute work

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A leader has to allocate the responsibility according to the capabilities of an
employee. Conflict is raise due to interference of employees in the work of each other. It is
the responsibility of a leader to allocate the work so that the conflicts are reduces (Mahajan,
& Sharma, 2015).
Respect differences
Each and every people are different from each other which raise the conflict between
the employees. As a leader, it has to respect the differences and learn the new things from the
positive point of view. These steps taken by the leader reduces the conflicts which is raises
due to differences. A leader understands the conflicts and then takes the steps to manage the
conflicts. Not only reduce the conflicts but it also developing the bond among the team
members.
Reduces problems
There are many conflicts which are raised due to personal problems or when the
employees are worry about anything. As a leader, it has to reduce the problems of employees
which affect them or give them break so that they can feel better and did not fight with each
other. Employees are getting frustrated due to overload of work; the leader has to entertain
and provides the break to reduce the stress level of an employee. These roles of a leader help
to reduce the conflicts among the employees (Aronson, 2016).
4.3 Team effectiveness
A leader plays many roles but the main role of a leader is to achieve the objective of the
company.
Support

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A leader supports the employees in their work which helps the company to achieve
the objective. Personality, intelligence, and experience of a leader provide the positive result.
It also plays the role of counsellor to provide the counselling to the employees. Support
increases the efficiency of the team (Zoogah, Noe, & Shenkar, 2015).
Friend, philosopher and guide
A leader plays the three roles to help the employees or to improve the work efficiency
of an employee. Philosopher guides the employee when they required support and
suggestions. He can also guide the supervisors at the time of decision making or change the
policies. Leader listen the problem of an employees and tries to solve them quickly so that the
employee improve its performance and the company can achieve its target (Hoffman, &
Tadelis, 2018). By solving the problem of the employees; the efficiency level of a team is
increases which help the company to achieve the objective.
Representative
A leader represents the business in front of many people. A leader promotes the
company goods and services in seminars, conferences, meetings, and others. The role of
leaders is to communicate with the outsiders to attain the objective. A leader also explain the
goals and objectives of the company to employees so that they can do hard work to achieve
the objective (Henker, Sonnentag, & Unger, 2015).
Motivation
Leadership is a function which is necessary for all level of management. Motivation is
an emotion which encourages the employee towards to attain the objective of the company.
Motivation improves the efficiency of employee towards the work. Motivation plays a role

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which enhances the performance of the team which helps to attain the objective and goals of
the company (Herzberg, 2017).
Conclusion
From the above analysis, it has been concluded that leader play the different role in the
different situation. It helps the company tom encourage the employees to achieve the
objective of the company. There are many differences in people management and leadership
such as principles, formulation and many others. It is observed that the leader can motivate
the staff by many methods such as rewards, salary and many others to achieve the objectives
of the company. Rewards are the best source to motivate employees and enhance the
performance of an employee. There are many methods which are used by the employee to
monitor the employee performance such as performance standard. An employee performance
affects organisation performance so it is necessary for the company to evaluate the
performance of an employee. There are many factors from which the company can easily
measure the performance such as age, cultural and many others. The company has to evaluate
the success of an assessment process with the many methods which are depends on the
employee performance. There are many benefits to work together as team workers in the
organisation such as outcomes, mutual support and many others. A leader plays many roles
but the main role play by a leader is to reduce the conflict between the employees and
improve the effectiveness of team to achieve the objectives and goals of the company
(Langfield, Logan, & Craith, 2009).

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