Organizational Behavior and Teamwork

This assignment provides a comprehensive overview of organizational behavior theories, highlighting the importance of understanding human behavior in workplaces. It discusses different approaches to motivation, such as reinforcement theory, and emphasizes the significance of teamwork, citing Lencioni's Five Dysfunctions of a Team. The assignment also touches upon core culture and its alignment with organizational philosophy, emphasizing the role of power dynamics within organizations.

ORGANISATINAL BEHAVIOUR
PRESENTED BY ALVIN MUIGAI
PRESENTED TO MR. BRILL OTIENO
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Declaration
I confirm that this assignment is my own work and has not been copied from someone else either
published or unpublished. It has also not been submitted for assessment at Intel College or any
learning institution. I also approve that I have read and understood the department and college
rules and regulations on plagiarism on the course handbook
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Acknowledgment
I would like to recognize all those who played a role in my academic activities. First and fore
most I would like to thank my teacher Mr. Brill who allowed me to take part in his class. He also
took his time to show me how my assignment should be done.
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Abstract
This document consists of two tasks. Part A critically analyses how the culture, politics and
power at Vivo energy can influence individual and team behavior and performance. In addition,
it provides an evaluation of how content and process theories of motivation and motivational
techniques enable Vivo Energy achieve its goals.
Part B explains what makes an effective team as opposed to an ineffective team. In addition, it
also analyses relevant team and group development theories to support the development of
cooperation within effective teams, it also applies and evaluates how concept and philosophies of
organizational behavior inform and influence behavior within a business situation.
.
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Contents
Declaration.......................................................................................................................................2
Acknowledgment.............................................................................................................................3
Abstract............................................................................................................................................4
Influence of Organizational Culture, Politics and Power on Team and Individual Behavior and
Performance.....................................................................................................................................6
Influence of culture according to Charles Handy Theory...............................................................6
Power...............................................................................................................................................8
Different sources of Power..............................................................................................................8
Politics...........................................................................................................................................10
Influence of content and process theories and motivational Techniques in the effectiveness of
Achieving Goals............................................................................................................................11
Content Theory..............................................................................................................................11
Herzberg Theory............................................................................................................................11
Maslow’s Hierarchy of Needs.......................................................................................................14
Process Theory...............................................................................................................................16
Vroom's expectancy theory............................................................................................................16
Goal Setting Theory of Motivation................................................................................................18
Equity theory.................................................................................................................................19
Impact of motivational theories on the behavior of employees at vivo.........................................20
Motivational Techniques...............................................................................................................22
Influence of Effective Application of Behavioral Motivational Theories, Concept and Models on
Others.............................................................................................................................................23
Relationship between culture, Politics, Power and Motivation that enables teams and
organizations success.....................................................................................................................23
Teamwork......................................................................................................................................25
Effective Teamwork......................................................................................................................25
Characteristics of Effective team work..........................................................................................25
Ineffective Teamwork....................................................................................................................26
Characteristics of Ineffective Teamwork.......................................................................................26
Comparison between effective and Ineffective teamwork............................................................28
5 common problems experienced by team that impact their effectiveness by Lencioni’s 5
Dysfunctions of a Team.................................................................................................................31
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Organizational Concepts and Philosophies at Vivo Energy..........................................................33
Link between Philosophy and Concept at Vivo energy.................................................................34
An Evaluation of Concepts and Philosophies inform of how they Influence behavior both
Positive and Negative....................................................................................................................34
Nature of people............................................................................................................................34
Nature of Organization..................................................................................................................35
Leadership Theories.......................................................................................................................36
Theory X and Theory Y.................................................................................................................37
Goal setting theory and Influence on Employees..........................................................................38
Influence on Employees................................................................................................................38
Contingency Theory......................................................................................................................39
Influence on leaders.......................................................................................................................39
Bibliography..................................................................................................................................40
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P1 AND M1 Influence of Organizational Culture, Politics and
Power on Team and Individual Behavior and Performance
Tylor’s defines culture as “that complex whole which includes knowledge, belief, art, morals,
law, custom, and any other capabilities and habits acquired by man as a member of society”.
(Tylor, 2012)
Organizational culture is the collective effect of the common beliefs, behaviors, and values of the
people within a company. (Morcos, 2018)
Influence of culture according to Charles Handy Theory
Person culture
Person culture is an unusual culture. It is not found in many organizations, yet many people
espouse some of its values. This type of culture is illustrated by a loose cluster or a constellation
of stars. In this culture, the individual is the focal point; if there is a structure or an organization,
it exists only to serve and assist the individuals within it, to further their own interests without
any overriding objective.
Clearly, not many organizations can exist with this sort of culture, or produce it, since
organizations tend to have some form of corporate objective over and above the personal
objectives of those who comprise them. Furthermore, control mechanisms, and even
management hierarchies, are impossible in these cultures except by mutual consent. An
individual can leave the organization, but the organization seldom has the power to evict an
individual. Influence is shared and the power base, if needed, is usually expert; that is, people do
what they are good at and are listened to for their expertise
Role Culture
Organizations with a role culture are based on rules. They are highly controlled, with everyone in
the organization knowing what their roles and responsibilities are. Power in a role culture is
determined by a person's position (role) in the organizational structure.
Role cultures are built on detailed organizational structures which are typically tall (not flat) with
a long chain of command. A consequence is that decision-making in role cultures can often be
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painfully-slow and the organization is less likely to take risks. In short, organizations with role
cultures tend to be very bureaucratic.
How it affects teams and individuals
For employees, the role culture offers security and the opportunity to acquire specialist expertise;
performance up to a required standard is rewarded on the appropriate pay scale, and possibly by
promotion within the functional area. However, this culture is frustrating for ambitious people
who are power orientated, want control over their work or are more interested in results than
method. Such people will be content in this culture only as senior managers. The importance of
role culture is that it suggests that bureaucracy itself is not culture-free.
Task Culture
Task culture forms when teams in an organization are formed to address specific problems or
progress projects. The task is the important thing, so power within the team will often shift
depending on the mix of the team members and the status of the problem or project.
Whether the task culture proves effective will largely be determined by the team dynamic. With
the right mix of skills, personalities and leadership, working in teams can be incredibly
productive and creative.
How it affects Teams and Individuals
Most managers, certainly at the middle and junior levels, prefer to work in the task culture, with
its emphasis on groups, expert power, rewards for results and a merging of individual and group
objectives. It is most in tune with the current trends of change and adaptation, individual freedom
and low status differentials – but it may not be an appropriate culture for all circumstances.
Power culture
Power culture is only allows a limited people in the organization to enjoy the positional power.
These people have the power and they are authorized to take necessary decisions. These people
are considered to be the privileged ones at the work place (Dempsey, 2015). These authoritative
bodies further have the responsibility to further delegate job designations and responsibilities to
other employees. In this work culture the employees do not have the liberty to express their
views.
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How it affects employees Teams and Individuals
Working in such organizations requires that employees correctly anticipate what is expected of
them from the power holders and perform accordingly. If managers get this culture right, it can
result in a happy, satisfied organization that in turn can breed quite intense commitment to
corporate goals. Anticipating wrongly can lead to intense dissatisfaction and sometimes lead to a
high labor turnover as well as a general lack of effort and enthusiasm.
(abc, 2020)
Power
Power is the ability to make things happen according to one’s perspective by getting someone
else to do it for you. It is mainly beneficial in organizations where the managers assign tasks to
different employees and make them do those tasks. (PennState, 2017).
Power in organization such as Vivo energy is used to get others to take action; power is based on
positional authority such as Peter Murungi, managing director of Vivo energy. He has the power
over all his employees and decides what to do, he might use various sources of power to get
others to act or change behavior such as his employees or teams.
The amount of force used by Peter Murungi, to influence, may affect how employees at Vivo
energy work for example, if he uses too much power, he might get resistance, compliance, or
commitment from his employees or teams at Vivo Energy.
Different sources of Power
Legitimate Power
Power that is given to a person based on their position or role is known as legitimate power (or
positional power). It’s determined by the hierarchy of the organization; junior managers’ report
to senior managers and senior manager’s report to directors. Other than being promoted, there’s
not much you can do directly to get more legitimate power. Increasing some of your other types
of power – mainly referent and expert power – leads to having more legitimate power.
Legitimate power can’t be faked: in order for it to be wielded, the person claiming the power has
to have earned it legitimately.
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Reward Power
Tied in closely with legitimate power, reward power is the ability that one holds to dole out
incentives and compensation in an organization. This includes salary raises and bonuses, praise,
recognition, and promotion. Reward power that is used fairly can be highly motivating to
employees. They’ll do more and better things by going for the rewards with the knowledge that
they are achievable. However, if the rewards are given out unfairly and favoritism is used, this
will demotivate them and make reward power less legitimate.
Coercive Power
Coercive power can be scary: it’s what sets in the fear of being punished for poor performance
and keeps us coming in early and staying at the office late. People who wield coercive power can
influence others’ behavior by their ability to threaten and punish others. These actions might
include demotion, firing, and reprimanding, but can also be less concrete and abusive in the form
of social ostracizing and shaming. A good dose of coercive power keeps employees in line, and
with good management doesn’t need to be used often or severely. The mere knowledge that it’s
there is usually enough.
Referent Power
Even if you don’t have any granted power in an organization, you can still influence others’
behavior and decision-making. Referent power is the ability to influence others because they
respect, admire, or like you. There are many ways to earn referent power at work. Especially if
you are new to an organization, you can start building social capital right away by saying “yes”
when people ask you to do things. Never say, “No, that’s not my job” – especially to your boss.
It’s OK to say no when you really can’t do something – just say, “No, but…” and give another
solution. Also, befriend others with referent power – find the influential people in your
organization, be part of the “in” crowd, and others will respect you.
Expert Power
Expert power is another way to earn respect and influence independently of the hierarchy of your
organization. With expert power, you have the ability to influence others because of recognized
talent, abilities, and knowledge. The key to gaining expert power is to know your job: be
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conscious of what you need to know to do your job well and build those skills. Cross-training is
another way to gain expert power – you won’t just know your job, but others’ jobs as well. Look
for opportunities in your skillset and offer to do things in areas that you’re skilled in to gain more
Information Power
Is what you have if you possess knowledge that others need or want? This power is related to
your ability to get access to information, and doesn’t require expertise. It could be knowing
when the next meeting is, or knowing the impact of budget cuts at headquarters, or how new
trends will impact your business.
(Himmelfard health, 2020)
Politics
Organizational politics refers to a variety of activities associated with the use of influence tactics
to improve personal or organizational interests. (Jarrett, 2017)
Political behavior is also likely to be present in an organization. For example, it may be the case,
Peter Murungi, the manager needs to exert a large amount of pressure on a team to get something
done by using the power of his position over others. It is also occasionally necessary for
employees to work behind the scenes to build coalitions of believers in a new vision to convince
others. Whatever the situation, it is important to understand that the root cause of political
activities are often scarce resources (including time pressures), social and structural inequalities,
and individual personal motivations.
The use of power and politics has allowed Vivo energy to bring in new changes like the Kaizen
strategy a continuous improvement strategy that rewards employees based on the performance in
the organization etc. Again the use of politics has influenced the performance of the company as
the company Vivo Energy has adapted elements from different political structure that is currently
in action in the country, Kenya, into its business policies. This adaption of the policies has
improved the productivity of the company but again it has created employees getting involved in
the unethical practices in the company.
(Jarrett, 2017)
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P2 Influence of content and process theories and motivational
Techniques in the effectiveness of Achieving Goals
Content Theory
Content theory attempts to explore the factors that motivate people to seek after their desires and
satisfy their needs. (INternational Journal, 2020)
Herzberg Theory
In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor theory or the
motivator-hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg,
the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No
Dissatisfaction”.
Herzberg classified these job factors into two categories-
Hygiene factors- Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to positive satisfaction for long-term. But if these
factors are absent / if these factors are non-existent at workplace, then they lead to
dissatisfaction.
In other words, hygiene factors are those factors which when adequate/reasonable in a job, pacify
the employees and do not make them dissatisfied. These factors are extrinsic to work. Hygiene
factors are also called as dissatisfies or maintenance factors as they are required to avoid
dissatisfaction. These factors describe the job environment/scenario. The hygiene factors
symbolized the physiological needs which the individuals wanted and expected to be fulfilled.
Hygiene factors include:
 Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.
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 Company Policies and administrative policies - The company policies should not be too rigid.
They should be fair and clear. It should include flexible working hours, dress code, breaks,
vacation, etc.
 Fringe benefits - The employees should be offered health care plans (med claim), benefits for the
family members, employee help programmers, etc.
 Physical Working conditions - The working conditions should be safe, clean and hygienic. The
work equipment’s should be updated and well-maintained.
 Status - The employees’ status within the organization should be familiar and retained.
 Interpersonal relations - The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or humiliation
element present.
 Job Security - The organization must provide job security to the employees.
Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as
motivators. The motivational factors yield positive satisfaction. These factors are inherent to
work. These factors motivate the employees for a superior performance. These factors are called
satisfiers. These are factors involved in performing the job. Employees find these factors
intrinsically rewarding. The motivators symbolized the psychological needs that were perceived
as an additional benefit. Motivational factors include:
 Recognition - The employees should be praised and recognized for their accomplishments by the
managers.
 Sense of achievement - The employees must have a sense of achievement. This depends on the
job. There must be a fruit of some sort in the job.
 Growth and promotional opportunities - There must be growth and advancement opportunities in
an organization to motivate the employees to perform well.
 Responsibility - The employees must hold themselves responsible for the work. The managers
should give them ownership of the work. They should minimize control but retain accountability.
 Meaningfulness of the work - The work itself should be meaningful, interesting and challenging
for the employee to perform and to get motivated.
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Advantages of Herzberg Theory
Emphasis on Motivation from within
The first and foremost advantage of this theory of motivation is that it lays emphasis on
motivation coming from within the employees themselves rather than focusing on other external
factors. Hence in simple words company by adopting this theory ensures that on the part of the
company it can improve its working environment and conditions so that employees feel
motivated to work hard which in the long term will benefit the company as a whole.
Companies can focus on the problem of Employees
The majority of companies think that giving salary is enough for the satisfaction of employees
but when a company uses this theory than only it comes to know about employee’s problems and
by making sure that factors which dissatisfy employees can be reduced company can make the
environment of the company employee-friendly.
Money is Treated Secondary
Another benefit is that in this theory money is treated as secondary because factors like job
promotion, recognition, relationships between employees are considered to be motivating factors
rather than money. In simple words in this world where everything is measured in money,
Herzberg’s theory brings a change by measuring employee satisfaction not in terms of money but
through other equally important factors
Limitations of Two-Factor Theory
1. The two-factor theory overlooks situational variables.
2. Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil
the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his job acceptable
despite the fact that he may hate/object part of his job.
5. The two factor theory is not free from bias as it is based on the natural reaction of employees
when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame
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dissatisfaction on the external factors such as salary structure, company policies and peer
relationship. Also, the employees will give credit to themselves for the satisfaction factor at
work.
6. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor theory
is acceptable broadly.
(INternational Journal, 2020)
Maslow’s Hierarchy of Needs
According to Smith & Cronje (1992), the way Maslow’s theory is explained relies on the fact
that people want to increase what they want to achieve in life and their needs are prioritized
according to their importance. Deriving from the hierarchy of needs by Maslow, content theories
of job satisfaction revolve around employees’ needs and the factors that bring them a reasonable
degree of satisfaction. Based on the basic physical, biological, social and psychological needs of
human beings, Maslow came up with a five-stage theory that places the needs of the individual
in different categories and prioritizes their attainment. These categories, in order of decreasing
priority, are;
• physiological needs (food, shelter, clothing);
• safety and security needs (physical protection);
• social needs (association with others);
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• esteem needs (receiving acknowledgement from others); and
• self-actualization needs (the desire for accomplishment or to leave behind a legacy).
Maslow’s hierarchy of needs forms the basis of theories that try to explain job satisfaction. For
examples, employees have needs that have to be satisfied. Besides the basic needs for food,
shelter and clothing, safety from physical, harm, and social interaction, they also need the
recognition and appreciation from their bosses and family members.
Merits of Maslow’s Theory of Motivation:
(i) Maslow’s theory of motivation helps the managers in understanding how to motivate the
employers.
(ii) Maslow’s theory of motivation theory is very simple, common and easily understandable.
(iii) It accounts for both inter-personal and intra-personal variations in human behavior.
(iv) Maslow’s theory of motivation theory is dynamic because it presents motivation as a
changing force; changing from one level of needs to the other.
Criticisms of Maslow’s Theory of Motivation:
1. Researchers have proved that there is lack of hierarchical structure of needs as suggested by
Maslow, though every individual has some ordering for his need satisfaction.
Some people may be deprived of their lower level needs but may still strive for self-actualization
needs. The example of MAHATMA GANDHI is one of the most important. There are always
some people to whom, the need for self-esteem is more prominent than social needs.
2. Another problem is that there is a lack of direct cause and effect relationship between need and
behavior. One particular need may cause different type of behavior in different persons. On the
other hand, as a particular individual behavior may be due to the result of different needs. Thus,
need hierarchy is not as simple as it appears to be.
3. Need and satisfaction of needs is a psychological feeling. Sometimes even the person may not
be aware about his own needs. How can the managers come to know about these needs?
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4. Some people say that hierarchy of need simply does not exist. At all levels needs are present at
given time. An individual motivated by self-actualization needs cannot afford to forget his food.
But this criticism is solved by Maslow by saying that needs are interdependent and overlapping.
5. Another problem with Maslow’s theory of motivation is the operationalization of some of his
concepts which makes it difficult for the researchers to test his theory. For instance, how does
one measure self-actualization
(INternational Journal, 2020)
Process Theory
A process theory is a system of ideas that explains how an entity changes and develops. Process
theories are often contrasted with variance theories, that is, systems of ideas that explain the
variance in a dependent variable based on one or more independent variables. (INternational
Journal, 2020)
Vroom's expectancy theory
Vroom's expectancy theory assumes that behavior results from conscious choices among
alternatives whose purpose it is to maximize pleasure and to minimize pain. Vroom realized that
an employee's performance is based on individual factors such as personality, skills, knowledge,
experience and abilities. He stated that effort, performance and motivation are linked in a
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person's motivation. He uses the variables Expectancy, Instrumentality and Valence to account
for this.
Expectancy is the belief that increased effort will lead to increased performance i.e. if I work
harder than this will be better. This is affected by such things as:
1. Having the right resources available (e.g. raw materials, time)
2. Having the right skills to do the job
3. Having the necessary support to get the job done (e.g. supervisor support, or correct information
on the job)
Instrumentality is the belief that if you perform well that a valued outcome will be received.
The degree to which a first level outcome will lead to the second level outcome. I.e. if I do a
good job, there is something in it for me. This is affected by such things as:
1. Clear understanding of the relationship between performance and outcomes – e.g. the rules of the
reward 'game'
2. Trust in the people who will take the decisions on who gets what outcome.
3. Transparency of the process that decides who gets what outcome.
Valence is the importance that the individual places upon the expected outcome. For the valence
to be positive, the person must prefer attaining the outcome to not attaining it. For example, if
someone is mainly motivated by money, he or she might not value offers of additional time off.
Advantages of the Expectancy Theory
 It is based on self-interest individual who want to achieve maximum satisfaction and who wants
to minimize dissatisfaction.
 This theory stresses upon the expectations and perception; what is real and actual is immaterial.
 It emphasizes on rewards or pay-offs.
 It focuses on psychological extravagance where final objective of individual is to attain
maximum pleasure and least pain.
Limitations of the Expectancy Theory
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 The expectancy theory seems to be idealistic because quite a few individuals perceive high
degree correlation between performance and rewards.
 The application of this theory is limited as reward is not directly correlated with performance in
many organizations. It is related to other parameters also such as position, effort, responsibility,
education, etc.
(INternational Journal, 2020)
Goal Setting Theory of Motivation
In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states
that goal setting is essentially linked to task performance. It states that specific and challenging
goals along with appropriate feedback contribute to higher and better task performance.
The important features of goal-setting theory are as follows:
The willingness to work towards attainment of goal is main source of job motivation. Clear,
particular and difficult goals are greater motivating factors than easy, general and vague goals.
Specific and clear goals lead to greater output and better performance. Unambiguous, measurable
and clear goals accompanied by a deadline for completion avoids misunderstanding.
Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph
when he attains them, and sets him up for attainment of next goal. The more challenging the
goal, the greater is the reward generally and the more is the passion for achieving it.
Better and appropriate feedback of results directs the employee behavior and contributes to
higher performance than absence of feedback. Feedback is a means of gaining reputation,
making clarifications and regulating goal difficulties. It helps employees to work with more
involvement and leads to greater job satisfaction.
Employees’ participation in goal is not always desirable. Participation of setting goal, however,
makes goal more acceptable and leads to more involvement.
Goal setting theory has certain eventualities such as:
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Self-efficiency- Self-efficiency is the individual’s self-confidence and faith that he has potential
of performing the task. Higher the level of self-efficiency, greater will be the efforts put in by the
individual when they face challenging tasks. While, lower the level of self-efficiency, less will
be the efforts put in by the individual or he might even quit while meeting challenges.
Goal commitment- Goal setting theory assumes that the individual is committed to the goal and
will not leave the goal. The goal commitment is dependent on the following factors:
1. Goals are made open, known and broadcasted.
2. Goals should be set-self by individual rather than designated.
3. Individual’s set goals should be consistent with the organizational goals and vision.
Advantages of Goal Setting Theory
1. Goal setting theory is a technique used to raise incentives for employees to complete work
quickly and effectively.
2. Goal setting leads to better performance by increasing motivation and efforts, but also through
increasing and improving the feedback quality.
Limitations of Goal Setting Theory
1. At times, the organizational goals are in conflict with the managerial goals. Goal conflict has a
detrimental effect on the performance if it motivates incompatible action drift.
2. Very difficult and complex goals stimulate riskier behavior.
3. If the employee lacks skills and competencies to perform actions essential for goal, then the goal-
setting can fail and lead to undermining of performance.
4. There is no evidence to prove that goal-setting improves job satisfaction
(Juneja, 2019)
Equity theory
In the equity theory of motivation, employee’s motivation depends on their perception of how
fair is the compensation and treatment for their work input. Equity Theory states that the
employees perceive what they get from a job situation (outcomes) about what they put into it
(inputs) and then compare their inputs- outcomes ratio with the inputs- outcomes ratios of others.
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The equity theory of motivation describes the relationship between the employee’s perceptions
of how fairly is he being treated and how hard he is motivated to work. J. Stacy Adams
developed equity theory. This theory show-
 Inputs: Inputs include all the rich and diverse elements that employees believe they bring or
contribute to the job – their education, experience, effort, loyalty, commitment.
 Outcomes: Outcomes are rewards they perceive they get from their jobs and employers’
outcomes include- direct pay and bonuses, fringe benefit, job security, social rewards and
psychological.
 Over rewarded: if employees fell over-rewarded equity theory predicts then they will feel an
imbalance in their relationship with their employee and seek to restore that balance.
 Equity: if employees perceive equity then they will be motivated to continue to contribute act
about the same level.
 Unrewarded: unrewarded who feel they have been unrewarded and seek to reduce their feeling
inequity through the same types of strategies but the same of this specific action is now reverse.
(Juneja, 2019)
Impact of motivational theories on the behavior of employees at vivo
1. Motivation helps change negative attitude to positive attitude:
Without motivation the employees at Vivo Energy try to perform minimum activities in the
organization. But the motivation fills in the desire to perform to their maximum level. All the
resources of the organization are of no use unless employees use these resources. The motivated
employees at the company make best use of the resources.
2. Motivation improves performance level of employees:
The motivation improves the efficiency level of employees at Vivo energy which means the
employees start performing the job to the best of their ability with minimum wastage of time and
resources because motivated employees always go for best utilization of resources. The
motivation bridges the gap between the ability to work and willingness to work and willingness
always improves efficiency.
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3. Helps in Achieving the Organizational Goal:
The motivated employees at Vivo energy always try to achieve the organizational goal and
contribute their best efforts for the realization of organizational goal as they know with the
achievement of organizational goal only they can achieve their personal goal. All the employees
contribute their efforts in one direction of accomplishment of goal set by Vivo energy.
4. Motivation creates Supportive Work Environment:
In motivation the relations between superior and subordinates are always improved. When
employees get their need satisfied or get the recognition and respect at Vivo energy then they
always offer a supportive hand to superiors. There is more cooperation and co-ordination in the
organization and all the employees work with the team spirit.
5. Motivation helps the managers to introduce changes:
The motivated employees at Vivo energy show less resistance in accepting the changes
according to changes in the business environment because they know if the changes are not
implemented in the organization, not only the organization will lose by this but the employees
also will find it difficult to get their needs fulfilled. Motivated employees at Vivo Energy are
always supportive and co-operative in accepting changes in the organization.
6. Reduction in Employees’ Turnover:
The motivation creates confidence in the employees at Vivo energy to get their needs satisfied in
the organization itself. They always select the alternative to remain in the organization and
increase their earning rather than leaving the organization and increasing their earnings. With
motivation the turnovers are less because the satisfied employees never leave the job.
(S, 2019)
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Motivational Techniques
Create a Positive Work Environment
Vivo energy can motivate employees by offering an upbeat, positive work environment.
Encourage teamwork and idea-sharing, and make sure staffers have the tools and knowledge to
perform well. Be available when employees need you to be a sounding board or a dispute
mediator. Eliminate conflict as it arises, and give employees freedom to work independently
when appropriate.
Set Goals that are Reasonable and Achievable
Vivo energy can help employees become self-motivated by helping establish professional goals
and objectives. Not only does this give employees something to strive for, but your business
benefits when goals are tied to corporate contributions. They should make sure goals are
reasonable and achievable so employees don’t get discouraged. Offer encouragement when
workers hit notable milestones.
Increase Motivation by Providing Incentives
Increase motivation by providing incentives to work toward. Vivo energy can create individual
incentives for each employee or team incentives to motivate employees as a group. Financial
incentives can include cash prizes, gift cards or restaurant gift certificates. Nonfinancial
incentives can include extra vacation days, compressed work weeks or choice office space or
parking spots.
Recognize Achievements and Accomplishments
Vivo energy should celebrate employee achievements through employee-of-the-month or star
performer awards. Make a big deal out of accomplishments by celebrating at staff meetings.
Print certificates or engrave plaques, issue a press release or post a notice on your company
website. Recognize team accomplishments as well as individual efforts.
Share Profits to Improve Performance
Vivo energy should motivate employees with the incentive of a profit-sharing program. In this
way, employees increase earnings while helping the business income rise. This approach
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simultaneously promotes collective goal-setting and teamwork. It also gives employees a sense
of pride in ownership and can improve performance and reduce turnover as well as raise morale.
(NcQuerrey, 2019)
M 2 Influence of Effective Application of Behavioral Motivational
Theories, Concept and Models on Others
It can be deduced that theories. Models and concept can be applied in various ways to influence
organizational behaviors positively. For example, the role of management in the theories and
models has been to encourage continuous and collective learning and subsequently transform
them into desirable behaviors and processes to create a sustainable competitive advantage.
Managers must therefore recognize the central role motivation plays in influencing the behavior
of individuals and groups in organizational settings and be familiar with the content and the
cognitive motivational factors that drive employee satisfaction and commitment. Key motivators
such as employee recognition, work/life balance, empowerment and participation, advancement
and growth, and sense of achievement can be used to reinforce desirable employee behaviors
towards the attainment of organizational goals. However, managers need to be sure that the
motivational strategies fulfil needs; otherwise they will have little value. Content theories of
motivation suggest that different people in an organization such as employees, have different
needs at different times. These theories also warn against relying too heavily on financial
rewards as a source of employee motivation.
(Himmelfard health, 2020)
D 1 Relationship between culture, Politics, Power and Motivation
that enables teams and organizations success
There are several reasons why employee motivation organization culture and politics are
important. Mainly because it allows management to meet the company’s goals with the use their
power and the culture of the organization. A motivated workplace aligned with a stable culture of
an organization, will lead to the success of an organization in terms of profits since the
organization will have laws that govern the employees and also use motivational tools that
25

support the growth of their employees, without this, companies could be placed in a very risky
position of generating loses or even turnover of employees.
Motivated employees with well-structured culture of the organization, can lead to increased
productivity and allow an organization to achieve higher levels of output. If employees lack the
proper culture and motivation, they will probably use the time at their desk surfing the internet
for personal pleasure or even looking for another job. This will lead to the waste of time and
resources of the company that would have been used to generate other projects relevant to the
organization.
The culture of an organization, decides the way employees interact at their workplace. A healthy
culture encourages the employees to stay motivated and loyal towards the management which in
the long run leads to the success of the organization.
An organization with a strong culture and employees who are motivated, enables managers to
reduce ambiguity in the workplace. It is important for organizations to manage
the political environment. When resources such as commission or promotions are scarce,
employees and management are more likely to see an organization as political and it
is important for organizations to reduce ambiguity for it to be successful. (Himmelfard health,
2020)
Recommendations
For an organization such as Vivo energy to be successful in the long run, the organization has to
have a defined culture since it brings all the employees on a common platform by this,
employees must be treated equally and no one should feel neglected or left out at the workplace.
It is essential for the employees to adjust well in the organization culture for them to deliver their
level best.
However, the organization also needs motivated workers since Motivation improves
performance level of employees: The motivation improves the efficiency level of employees at
organization such as Vivo energy which means the employees start performing the job to the best
of their ability with minimum wastage of time and resources because motivated employees
always go for best utilization of resources.
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LO3 Teamwork
The process of working collaboratively with a group of people in order to achieve a goal.
Teamwork is often a crucial part of a business, as it is often necessary for colleagues to work
well together, trying their best in any circumstance. Teamwork means that people will try to
cooperate, using their individual skills and providing constructive feedback, despite any personal
conflict between individuals. (SUN, 2019)
Effective Teamwork
An effective team accomplishes its goals in a way that meets the standards set by those who
evaluate its performance. For instance, a team may have a goal of delivering a new product
within six months on a budget of $100,000. Even if the team finishes the project on time, it can
be considered effective only if it stayed within its expected budget. (Morello, 2019)
Characteristics of Effective team work
Mutual accountability
High-performing teams accept responsibility as individuals and as a team. Team members should
not blame one another for mistakes and failures. And no one should spend time in personal
justifications. Any success should be celebrated together.
Team trust
The truth is – team members who cannot trust one other or and do not believe in the defined
team goals seldom get success. Focusing on solving problems is a natural thing for effective
teams. There can be trust between team members only if they can translate their views freely.
That’s why managers and team leaders often undertake team building exercises and problem-
solving activities that put everyone in positions of trust.
Communicate freely
Communication is the cousin of chemistry. In any team, communication is crucial to building a
sense of camaraderie between members. The content of the communication is rather irrelevant,
as researchers at MIT’s Human Dynamics Laboratory have shown. Rather, the manner of
communication — how freely and frequently team members communicate — determines the
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effectiveness of the team. Put simply, the more freely you talk to your fellow team members, the
more comfortable you are in sharing insights and ideas. This is just one major reason why
modern businesses emphasize communication and spend significant time each year on social
communication and collaboration tools.
Common goals
A chief characteristic of any successful team is that members place the common goal above
individual interests. While scaling individual targets is great for personal morale, teams succeed
when they understand, appreciate and work with a common purpose.
Efficient use of ideas
Generating ideas is the crucial skill for all teams. Brainstorming is one of the ways to come up
with the solution to a problem. Every team member should be able to propose information and
formulate that information into a response.
(Morello, 2019)
Ineffective Teamwork
Ineffective teams are often made up of individuals who do not mix well, or who do not have the
necessary skills to perform the variety of work at hand. Some teams may have too many
members with the same skills, while other teams suffer from a lack of proper training. (Morello,
2019)
Characteristics of Ineffective Teamwork
Unequal Membership
The members of a dysfunctional team may not carry equal status within the group. When certain
members speak more or are more open with opinions, or when the expression of feelings or
opinions is discouraged, the overlooked team members may develop feelings of animosity
toward the rest of the group. When a problem does arise within the group, it is essential that the
team and its supervisor discuss the issue fairly and openly and resolve it to the satisfaction of all
members. Basing conflict resolution on majority rule creates anger and resentment, which can
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pop up again later and harm the team dynamic. It is essential that all team members contribute
equally and that no one is allowed to ride on the shoulders of the rest of the group.
Errors and Negativity
Finger-pointing is a characteristic of an ineffective team; members are quick to point out the
errors and weaknesses of others rather than learning from setbacks and moving forward. An
atmosphere of negativity builds walls between the members of the team, between the team and
its supervisor, and between the team and its goals. Self-evaluations are essential in allowing
members to correct any errors before they have the chance to develop into something larger and
more damaging for the group.
Lack of Cohesion
Ineffective teams are often made up of individuals who do not mix well, or who do not have the
necessary skills to perform the variety of work at hand. Some teams may have too many
members with the same skills, while other teams suffer from a lack of proper training. The team
leader must bring attention to the specific talents of each member, use them properly and clearly
establish why tasks are designated to each member throughout the process. Daily goals and
reviews prevent members from taking on other members' tasks out of habit or circumstance.
(Morello, 2019)
Insufficient resources
Whether its people, equipment, supplies, facilities, time, or money, insufficient resources make
teams ineffective. The situation can also lead to conflicts, even revolts. If resources are not
distributed in an objective, meaningful manner, then differences can magnify into severe
conflicts. Members of the team can quickly become polarized.
Lack of openness and trust
Everyone is guarded, protective of his or her own interests. Openness and truthfulness are
perceived as yielding to someone, giving a competitive advantage, or exposing vulnerabilities.
When this happens, idea sharing is at a minimum and that is never good if you want to be part of
a successful, cohesive team on a successful project.
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(Morello, 2019)
Comparison between effective and Ineffective teamwork
There is no greater weapon in at Vivo energy than an effective team. When firing on all
cylinders, effective teams have the ability to increase efficiency by taking on more complex tasks
(think "two heads are better than one"), improve communication by facilitating open discussion
and cooperation among team members, maximize output by leveraging each team member's
strengths, provide opportunities for personal growth, and act as a support mechanism for staff.
Unsurprisingly, teamwork at the workplace such as Vivo energy has also shown to increase
innovation and creativity by allowing team members to bring unique and distinct perspectives to
the table. When leveraged, effective teamwork drives company growth and boosts
performance and success by tapping into each individual's unique strengths and attributes.
(Zimmer, 2019)
Unlike Ineffective teams which are often made up of individuals who do not mix well, or who do
not have the necessary skills to perform the variety of work at hand. Some teams may have too
many members with the same skills, while other teams suffer from a lack of proper training. The
team leader must bring attention to the specific talents of each member, use them properly and
clearly establish why tasks are designated to each member throughout the process. Daily goals
and reviews prevent members from taking on other members' tasks out of habit or circumstance.
BRUCE TURCMAN
Psychologist Bruce Tuckman first came up with the memorable phrase "forming, storming,
norming, and performing" back in 1965. The “Forming – Storming – Norming – Performing”
model of group development maintained that these phases are all necessary and inevitable in
order for the team to grow, to face up to challenges, to tackle problems, to find solutions, to plan
work, and to deliver results. This model has become the basis for subsequent models. He used it
to describe the path to high-performance that most teams follow. Later, he added a fifth stage
that he called "adjourning." (Lumencandela, 2020)
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Tuckman team model /5 understanding team dynamic
This process of learning to work together effectively is known as team development. Research
has shown that teams go through definitive stages during development. Bruce Tuckman, an
educational psychologist, identified a five-stage development process that most teams follow to
become high performing. He called the stages: forming, storming, norming, performing, and
adjourning. Team progress through the stages is shown in the following diagram.
Most high-performing teams go through five stages of team development.
Forming stage
The forming stage involves a period of orientation and getting acquainted. Uncertainty is high
during this stage, and people are looking for leadership and authority. A member who asserts
authority or is knowledgeable may be looked to take control. Team members are asking such
questions as “What does the team offer me?” “What is expected of me?” “Will I fit in?” Most
interactions are social as members get to know each other.
Storming stage
The storming stage is the most difficult and critical stage to pass through. It is a period marked
by conflict and competition as individual personalities emerge. Team performance may actually
decrease in this stage because energy is put into unproductive activities. Members may disagree
on team goals, and subgroups and cliques may form around strong personalities or areas of
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agreement. To get through this stage, members must work to overcome obstacles, to accept
individual differences, and to work through conflicting ideas on team tasks and goals. Teams can
get bogged down in this stage. Failure to address conflicts may result in long-term problems.
Norming stage
If teams get through the storming stage, conflict is resolved and some degree of unity emerges.
In the norming stage, consensus develops around who the leader or leaders are, and individual
member’s roles. Interpersonal differences begin to be resolved, and a sense of cohesion and unity
emerges. Team performance increases during this stage as members learn to cooperate and begin
to focus on team goals. However, the harmony is precarious, and if disagreements re-emerge the
team can slide back into storming.
Performing stage
In the performing stage, consensus and cooperation have been well-established and the team is
mature, organized, and well-functioning. There is a clear and stable structure, and members are
committed to the team’s mission. Problems and conflicts still emerge, but they are dealt with
constructively. (We will discuss the role of conflict and conflict resolution in the next section).
The team is focused on problem solving and meeting team goals.
Adjourning stage
In the adjourning stage, most of the team’s goals have been accomplished. The emphasis is on
wrapping up final tasks and documenting the effort and results. As the work load is diminished,
individual members may be reassigned to other teams, and the team disbands. There may be
regret as the team ends, so a ceremonial acknowledgement of the work and success of the team
can be helpful. If the team is a standing committee with ongoing responsibility, members may be
replaced by new people and the team can go back to a forming or storming stage and repeat the
development process.
(Lumencandela, 2020)
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5 common problems experienced by team that impact their
effectiveness by Lencioni’s 5 Dysfunctions of a Team
1: Absence of Trust
PROBLEM: This occurs when team members are reluctant to be vulnerable with one another
and are unwilling to admit their mistakes, weaknesses, or need for help. Without a certain
comfort level among team members, a foundation of trust is not possible.
SOLUTION: As the manager, set the good example by asking for help from your team
members, admitting your own weaknesses and limitations, and be the first to own up to a
mistake. When you take the lead, others will follow. Slowly, these habits will become culture
and the team will begin to build the first unshakable brick in the pyramid — trust.
2: Fear of Conflict
PROBLEM: Teams that lack trust are incapable of engaging in unfiltered, passionate debate
about key issues, causing situations where team conflict can easily turn into veiled discussions
and back channel comments. In a work setting where team members do not openly air their
opinions, there is a lot of posturing and precious time is wasted, resulting in inferior decisions.
SOLUTION: Establish that conflict is welcome and purposeful. Define what healthy conflict
looks like by praising healthy examples or giving corrective feedback if conflict veers towards
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unhealthy. You can also “mine for conflict” by opening a meeting with a bad idea to see if
everyone will agree to avoid conflict, and use this as a litmus test to open up healthy discussion.
Lastly, you can designate a devil’s advocate in a meeting, or use pro and con lists for ideas to get
people to open up to sharing a differing perspective.
3: Lack of Commitment
PROBLEM: Without conflict, it is difficult for team members to commit to decisions, creating
an environment where ambiguity prevails. Lack of direction and commitment can make
employees, particularly star employees, disgruntled.
SOLUTION: Clarity and closure are paramount to overcome this dysfunction and move to the
next level. Setting clear deadlines, reviewing key decisions at the end of meetings as well as
what should and should not be communicated to other staff and contingency planning can help
teams overcome their fears by creating clear plans and facing potential pitfalls and the fear of
failure head on so everyone can commit.
4: Avoidance of Team Accountability
PROBLEM: When teams don’t commit to a clear plan of action, even the most focused and
driven individuals hesitate to call their peers on actions and behaviors that may seem
counterproductive to the overall good of the team. This allows for mediocrity, poor performers to
slip by and the leader to become the sole source of discipline.
SOLUTION: If teams have come this far, they have trust and commitment, then they will know
that a team member calling them out not only has the right to do so because expectations and
deadlines were clear, but that it is not a personal attack. This allows team members to confront
difficult issues to hold each other accountable. Clear standards, progress reviews and team
rewards are also important to make sure this area stays healthy.
5: Inattention to Team Objectives
PROBLEM: Team members naturally tend to put their own needs (ego, career development,
recognition, etc.) ahead of the collective goals of the team when individuals aren’t held
accountable. If a team has lost sight of the need for achievement, the business ultimately suffers.
SOLUTION: When teams have a solid base of trust, healthy conflict, commitment and team
accountability and are recognized within the company for performance via praise or rewards, it
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will be easier for team members to put their own needs aside for the sake of the team. With these
solutions, teams should be able to retain top performers, handle failure with resilience and stay
focused.
(Taskworld, 2017)
P4 Organizational Concepts and Philosophies at Vivo Energy
An organizational concept specifies the legal nature of the organization, depicts potential
functional relationships among participants and describes the governance process including the
initial decision making bodies. (Venkatesh, 2019)
Concepts of Organization:
There are two concepts of organization:
1. Static concept
2. Dynamic concept,
1. Static Concept:
Under static concept the term ‘organization’ is used as a structure, an entity or a network of
specified relationship. In this sense, organization is a group of people bound together in a formal
relationship to achieve common objectives. It lays emphasis on position and not on individuals.
2. Dynamic Concept:
Under dynamic concept, the term ‘organization’ is used as a process of an on-going activity. In
this sense, organization is a process of organizing work, people and the systems. It is concerned
with the process of determining activities which may be necessary for achieving an objective and
arranging them in suitable groups so as to be assigned to individuals. It considers organization as
an open adoptive system and not as a closed system. Dynamic concept lays emphasis on
individuals and considers organization as a continuous process.
(Venkatesh, 2019)
An organizational philosophy describes how you operate, what you offer and how you are
organized to meet your goals. (Margolis, 2020)
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Link between Philosophy and Concept at Vivo energy
Vivo Energy operates under the Shell brand - one of the top-three most recognized brands in
Africa. Their company vision – to create Africa’s most respected energy business - is being
achieved through:
 The high quality of Shell products.
 An emphasis on local accountability in the countries where we operate.
 The highest HSSE standards.
 Our demonstrated commitment to our core values - Honesty, Integrity and Respect for People.
Keeping organizational concept and philosophy in mind, Vivo energy does things differently,
Not for the sake of being different but because our performance-driven operating culture drives
them to focus on the core issues and to simplify processes and procedures wherever possible. It's
a philosophy that determines the company’s way of working and underpins everything they say
and do. It places demands on all of Vivo Energy. It creates expectations with their customers and
business partners. It generates opportunities for anyone with the drive and initiative to make the
most of them.
M4 An Evaluation of Concepts and Philosophies inform of how they
Influence behavior both Positive and Negative
The concept of Organizational Behavior is based on 2 main elements:
Nature of people
It is the basic qualities of a person or the character that personifies an individual. They can be
similar or unique. In an organizational level, some major factors affecting the nature of people
are:
Individual difference – it is the managerial approach towards each employee individually, that
is one-on-one approach and not the statistical approach that is avoidance of single rule.
Perception – it is a unique ability to observe, listen and conclude something. The way we
interpret things and have our point of view is our perception.
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A whole person – our personal life cannot be totally separated from our work life, just like
emotional conditions are not separated from physical conditions.
Values of a person – employees want to be values and appreciated for their skills followed by
opportunities which help them develop themselves.
(iEduNote, 2017)
Nature of Organization
Nature of organization states the motive of the firm. It is the opportunities it provides in the
global market. It also defines the employees’ standard; in short, it defines the character of the
company by acting as a mirror reflection of the company. They include;
 Social system − every organization socializes with other firms, their customers, or simply the
outer world, and all of its employees - their own social roles and status. Their behavior is mainly
influenced by their group as well as individual drives. Social system are of two types namely −
o Formal − Groups formed by people working together in a firm or people that belong to the same
club is considered as formal social system. Example − A success party after getting a project.
o Informal − A group of friends, people socializing with others freely, enjoying, partying or
chilling. Example − Birthday party.
 Mutual interest − every organization needs people and people need organizations to survive and
prosper. Basically it’s a mutual understanding between the organization and the employees that
helps both reach their respective objectives. Example − we deposit our money in the bank, in
return the bank gives us loan, interest, etc.
 Ethics − they are the moral principles of an individual, group, and organization. In order to
attract and keep valuable employees, ethical treatment is necessary and some moral standards
need to be set. In fact, companies are now establishing code of ethics training reward for notable
ethical behavior.
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Leadership Theories
Leadership theories are schools of thought brought forward to explain how and why certain
individuals become leaders. The theories emphasize the traits and behaviors that individuals can
adopt to boost their own leadership abilities.
Early studies on the psychology of leadership pointed to the fact that leadership skills are
inherent abilities that people are born with. It was not until recently that formal leadership
theories emerged, despite leadership becoming a concept of interest at the beginning of time.
Key Leadership Theories
1. Great Man Theory
The theory suggests that the ability to lead is inherent – that the best leaders are born, not made.
It defines leaders as valiant, mythic, and ordained to rise to leadership when the situation arises.
The term “Great Man” was adopted at the time because leadership was reserved for males,
particularly in military leadership.
2. Trait Theory
The Trait Theory is very similar to the Great Man Theory. It is founded on the characteristics of
different leaders – both the successful and unsuccessful ones. The theory is used to predict
effective leadership. Usually, the identified characteristics are compared to those of potential
leaders to determine their likelihood of leading effectively.
3. Contingency Theory
The Contingency Theory emphasizes different variables in a specific setting that determine the
style of leadership best suited for the said situation. It is founded on the principle that no one
leadership style is applicable to all situations.
4. Situational Theory
The Situational Theory is similar to the Contingency Theory as it also proposes that no one
leadership style supersedes others. As its name suggests, the theory implies that leadership
depends on the situation at hand. Put simply, leaders should always correspond their leadership
38

to the respective situation by assessing certain variables such as the type of task, nature of
followers, and more.
5. Behavioral Theory
In Behavioral Theory, the focus is on the specific behaviors and actions of leaders rather than
their traits or characteristics. The theory suggests that effective leadership is the result of many
learned skills.
(CFI, 2020)
Theory X and Theory Y
Theory X and Theory Y were first explained by McGregor in his book, "The Human Side of
Enterprise," and they refer to two styles of management – authoritarian (Theory X) and
participative (Theory Y).
If you believe that your team members dislike their work and have little motivation, then,
according to McGregor, you'll likely use an authoritarian style of management. This approach is
very "hands-on" and usually involves micromanaging people's work to ensure that it gets done
properly. McGregor called this Theory X.
On the other hand, if you believe that your people take pride in their work and see it as
a challenge , then you'll more likely adopt a participative management style. Managers who use
this approach trust their people to take ownership of their work and do it effectively by
themselves. McGregor called this Theory Y.
The approach that you take will have a significant impact on your ability to motivate your team
members. So, it's important to understand how your perceptions of what motivates them can
shape your management style.
We'll now take a more in-depth look at the two different theories, and discover how and when
they can be useful in the workplace.
(MindTools, 2020)
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Goal setting theory and Influence on Employees
Goal Setting Theory explains the mechanisms by which goals influence behavior, and how the
latter can be moderated by goal characteristics (difficulty and specificity), the level of
commitment, the importance of the goal, and levels of self-efficacy, feedback, and task
complexity.
Influence on Employees
Realistic Expectations
They understand exactly what they have to do to achieve their goal, and they believe that they
can do it. Having tangible goals like this increases motivation because people can imagine
themselves actually meeting your expectations. If they feel confused by the goal or that the goal
is unattainable, their performance will suffer because they feel destined to disappoint.
Sense of Purpose
When employees have a goal, they have a sense of purpose that was otherwise missing. This
increases not only motivation and productivity but also morale. When employees feel like their
actions are actually making an impact in the company, they want to do well. Your employees
don't want to feel like they don't make a difference or that they are simply small pieces of a big
machine. When they have goals, they feel rewarded by their work and become more productive.
Measurable Progress
Goals motivate employees, but only if the deadlines are frequent enough to keep them working
consistently. Goals that are too long-term or offer no method of measuring progress may
influence behavior negatively, encouraging people to put off their work until a later date.
Motivation and Reward
Goals motivate people only if there is a reward involved. That isn't necessarily cynical, though.
Remember that reward can be as simple as getting credit for hard work. Whether your rewards
40

are monetary or not, promising them at the time of setting a goal motivates your employees to
meet your expectations. If your employees have goals without any sense that they will be
compensated even with just your appreciation their motivation will suffer.
(Ryan, 2020)
Contingency Theory
The Contingency Theory of Leadership states that a leader’s effectiveness is contingent upon
with how his or her leadership style matches to the situation. That is, the leader must find out
what kind of leadership style and situation he or she thrives in.
Influence on leaders
Provides Solutions in Specific Situations
Using a contingency management style, managers can respond to the causes of individual
problems rather than overreacting to the problem itself. Instead of focusing on the results of the
problem, managers who understand the importance of contingency theory will seek to
understand all of the influences that led to the problem. For example, a warehouse manager
dealing with the problem of decreasing efficiency as it relates to loading and unloading goods
may look closer and realize that the lack of proper ventilation is causing warehouse workers to
tire quickly and need to take frequent breaks. Had the manager simply relied on motivation
theories as an automatic response to productivity problems, he might not have missed the real
culprit for the decrease in production.
Allows a Macro View of the Organization
The importance of contingency theory also extends to the way managers think about the
consequences of a decision as it relates to the entire company. A manager’s actions must reflect
the culture, commitment to employee safety and wellbeing, profit orientation, branding
positioning and customer service attitudes of the entire organization. The contingency
management style forces managers to make decisions and resolve problems based on how it will
impact the company, not solely how it will affect a division or department. For example, let’s say
a manager discovers the research and development division of a company is months behind on
perfecting a new product. Using the contingent management style, that manager wouldn’t
41

publicize this problem to the entire company; instead, he would work closely with the R&D
leaders to identify the sources of the delay and fix them. Publicizing the problems in R&D could
lead to a decrease in employee morale, especially in the sales and marketing departments that are
working diligently on strategies to promote that product.
Increases Managerial Discretion
One of the other major implications of the contingency theory for managers is that it provides
them with far greater discretion. Whether you have a top-down or a flat organizational structure,
your managers are a linchpin of implementing decisions and ensuring that your employees
remain committed to specific goals. Because the contingency theory gives managers a wide
range of ways to react to problems, it also gives them significant discretion in their decision-
making. Business owners who implement contingency theory must allow their managers to bend
policy or even override it if the circumstances demand it. Managers must embrace the agile
thinking that is required to effectively use contingency theory in the workplace. That means
managers must interpret policies and regulations loosely, yet still adhere to the company’s values
and visions when they make decisions. While you may balk at giving your managers this type of
discretion, remember that contingency theory is all about adapting to changing circumstances
without adopting a one-size-fits-all approach. Business owners often find that giving managers
this type of freedom results in increased confidence in decision-making as well as managers who
feel empowered and trusted to do their jobs without needing constant approval.
(Ryan, 2020)
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