Impact of Politics, Culture, and Power on Organizational Behaviour

This report explores the impact of politics, culture, and power on the behavior of organizations. It discusses the importance of motivated employees and effective teams, as well as different philosophies of organizational behavior. The case study focuses on Unilever and its strategies for maintaining a strong performance in the market.

ORGANISATIONAL
BEHAVIOUR

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Impact of politics, culture and power on the organization’s behaviour................................3
LO 2.................................................................................................................................................6
P 2 Motivate individuals..............................................................................................................6
LO 3.................................................................................................................................................8
P 3 Effective team as opposed to an ineffective team.................................................................8
LO 4...............................................................................................................................................11
P 4 Philosophies of organizations behaviour.............................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Organizational behaviour refers to the study of a group or individuals of an organization
to analyse the performance of them (Shukla and Srivastava, 2016). It is very essential for the
organizations to have a strong performance in the market because the demand is increasing in the
market which needs to be controlled so that there is an effective functioning. Strong productivity
and operations can help any organization to have higher profit margins for a long run in the
market.
Unilever is United Kingdom originated and London is the headquarters of this company.
There are more than 155,000 employees working in the organization currently and the company
is having an experience in this industry from 90 years. The products company is dealing with are
food & refreshments, Personal and beauty care, etc.
This report would consist of the impact of culture, power and politics on the behaviours
of groups and individuals of an organization. The importance of having a motivated employees
force is very important for the organization to have so that the objectives can be met by the
company. There are a lot of concepts and philosophies which the businesses have to analyse and
use in different situations which is also going to be discussed in the further report.
LO 1
P 1 Impact of politics, culture and power on the organization’s behaviour
The competition in the market is increasing and it is very important for the organization
to achieve their objectives and aims despite of that factor. There has to be a strong team work
which is going to make the organization be able to have a high productivity and operations in the
market so that the increasing demands of the customers can be met. This is resulting in the
organization getting higher profit margins which is good for a long run in market and investment.
Culture
Handy’s Culture Model
 Power
There are few people in Unilever who have the power to make the right decisions for the
organization (Chhabra, 2018). When there are decisions taken in the company the management
always considers the employees and the customers as their priority because it is them on which

the decision is going to implement. The productivity of the company cannot fall which has to be
made sure of by the company.
 Role
Unilever is hiring the right skilled and experienced employees in the organization so that
there is a better functioning in and quality of the organization can be maintained as well (Jansen,
2018). There is a better functioning when the employees have clarity of the role they have in the
organization. The help and provided needs of the employees can be understood which improves
the standards of the organization.
 Person
The employees must feel like they are very important in the organization and they are the
backbone of the company so that they can help the organization met the demands. The
employees will have a negative impact when they feel that they are superior to one another and
that is going to make the workforce not be able to work.
 Task
There has to be a fair distribution of work or task which the leaders and managers assign to
the workforce according to their capabilities (Rao, 2016). That is the strengths of Unilever
because they have observed the importance of this factor and the quality of the products and
demands are being able to be met from time to time.
Politics
Chantel’s
There are a lot of roles and characteristics of politics which would be understood
effectively with the help of this model. There is a lot of de-motivation in the organization in
Unilever at present because of politics and that is limiting the functioning.
 Individual Factors
There is a standard which organizations create for themselves in the market which has to be
well maintained which is possible when the workforce is motivated in the organization. The
employees who are interested in politics will be disliked by the organization employees in the
organization which is going to reduce the productivity and operations.

 Organizational Factors
There have to be rewards or any other extra privilege which is being given by the
organization to the employees so that there is a better functioning (Kelkar and Emilus, 2016).
The performance of the employees can fall due to politics but the targets can be achieved if there
is a better leader or manager in the organization which is going to help the employees to remain
motivated. Lose of interest is very common in the organization which has to be maintained by
the company so have a better functioning.
Power
French & Raven Theory
 Expert
The experts in the organization have to be respected and appreciated in the organization so
that they have a better environment to function within. This factor can make these experts share
their knowledge and skills with the other employees and that is going to make Unilever have an
overall improvement and the company will be able to improve their brand image for a longer run
in market.
 Legitimate
The employees have to know that the power of decision making lies in the hands of CEO,
owners and executives of the company so that they can deal with the decision making. The
authorities have to include the employees in the decision making so that there is a strong
understanding and right decisions can be taken (Lau and et.al., 2017). The authorities at Unilever
have to follow two factors which are monitoring and controlling the workforce.
 Referent
There are few employees in Unilever who are having a power or control in the work place
because of their looks, charm and attitude which is making the company have a negative impact
on the functioning and operations. This is not a healthy environment for the workforce to have in
the market.
 Coercive

There is a standards and expectation which the organization has from the employees which
are working in the organization (Haugen, 2019). To match those employees are provided with
training and development but even after giving the employees this facility, they are not being
able to match the expectation then the authorities can take strict actions against them. The
promotions are not given or they are even fired in extreme cases in the organization. This sets an
example for the other employees to put in their best so that the right decisions and achievements
can be done.
 Reward
To have a better function the organization will have to provide more rewards to the
employees of the organization so that there is a better functioning. There are salaries, incentives,
promotions; etc which is being given but there has to be more like retirement plans and more for
the better functioning.
LO 2
P 2 Motivate individuals
To achieve the targets and aims of the organization there is a requirement of a strong
workforce in the company so that the company can get a competitive advantage. There are a lot
of theories which can explain the methods which are being used by Unilever which is helping the
company have an effective functioning (Simões and Sebastiani, 2017). There are theories which
make the working of the company more effective and make Unilever get higher profit margins
for a long run in this competitive market.
Process Theory
The employees needs and satisfaction level of the individuals and the group has to be
understood so that the processing of the organization can take place effectively. There are a lot of
methods and theories which are changing in Unilever so that the workforce can have a better
motivation and a healthy environment to function within. The reputation of the company is high
which has to be well maintained as well and there has to be a rapid increase in brand image in the
market.
Reinforcement Theory

This theory is given by BF Skinner and this theory is famous as the reinforcement which is
on the law of effect (Ying and et.al., 2020). According to Skinner all the actions have a
consequence which can be negative or positive in nature and they have to be controlled by the
organization in the market. Positive Reinforcement
There are a lot of employees in Unilever who are doing their best in the organization because
they are being rewards for the kind of work they are doing in the company. There are rewards
which are being given to these employees like wages, bonus, promotions, etc so that they
continue to work like this. There are a lot of objectives which Unilever is having in the market
which have to be achieved on time since there are a lot of competitive challenges and the
company can lose their market share very quickly. The employees who are being positively
rewarded for the actions they have a tendency to repeat their actions so that there is a better
functioning. There is a personal development in this as well because the employees get more
skilled and they can make decisions on their own when they have the right knowledge and can
help the company to come up with better ideas in the future (Raffaelli, Margolis and Narayandas,
2016).
 Negative Reinforcement
There is going to be a negative environment in Unilever is the right skills and knowledge of
the employees is not going to be used. There are a lot of training and development programmes
which are being done in the organization so that the company can have a competitive advantage.
The employees who are not matching to the standards and expectations of the organization will
not be promoted or their wages will get affected but when there is an extreme case then the
organization can fire the employees as well from Unilever.
Content Theory
This theory is very effective to understand the needs and demands of human beings
which can make the organization take the measures accordingly (Jensen, Cole and Rubin, 2019).
Individual content theory is very effectively used in Unilever so that the employees are
motivated. According to this theory there are two factors which are having an influence on the

human being’s motivation level which are going to be discussed with the help of Herzberg’s
model in the further report.
Herzberg’s two factor theory Motivators
The organization has to know the candidates which are going to make the productivity and
the products sustain in the market. Right employees have to come in so that the motivation level
in the market can be maintained. There are a lot of factors like product quality and standards of
the organization in the market which has to be controlled so that there is a better functioning.
There are a lot of achievements which the company has made over years in the organization
because they are promoting the employees and providing them a better place to work.
 Hygiene Factors
The employees have to be given a healthy environment to work in so that the company can
have a gain in the market (Crabbe and Acquaah, 2016). There are targets which are planned by
the organization according to which the productivity of the organization must take place so that
there is a better functioning. There have to be supervisions, company policies, security and other
important hygienic factors which have to be followed by the company for better operations.
LO 3
P 3 Effective team as opposed to an ineffective team
Effective Team
To have an overall success of the organization the company will have to have an effective
team in the market so that they can have a better reputation in market. There are a lot of
innovative ideas which can generate in Unilever if there is an effective team in the company.
There are going to be conflicts in an effective team as well but there have to be effective ways
through which they can be solved and a common decision can be taken by the organization.
There is a lot of improvement which can be made by the company and the employees for the new
products which can make the number of customers increase and gain competitive advantage.
Ineffective Team

There are a lot of conflicts and there is a negative environment for the employees to work
in which is reducing the productivity of the organization (Lee and Ha-Brookshire, 2018). The
customers will not be able to get the best of services and products by the organization which is a
major drawback for the company. There is a standard and expectation of the customers and the
company has in the market which has to be present otherwise the reputation and brand image can
get affected in the market.
Tuckman’s Theory
To have a better functioning and operations in the market there is a use of Tuckman
theory so that there are changes which can come in effectively in the organization. This is going
to help the company to be able to maintain the conflicts which can rise and the productivity of
the organization will not get affected. Forming stage
There has to be a selection of the right employees for the task which has been planned in the
organization so that the company’s standards can be matched. The employees will have to be
given a deadline to complete the task within so that they can make the productivity increase and
function accordingly which is going to help the company to be able to maintain their demands of
customers.
 Storming Stage
There are a lot of conflicts which are going to rise in this stage which is not a good factor for
the operations and productivity of the organization. The customers are going to shift their loyalty
from Unilever to other competitors in the market which is a very negative factor for the
company’s revenue generation. There has to be proper assigning of the roles to the skilled
employees so that the best results are received by the organization in the market.
 Norming Stage
The employees have to have a healthy understanding between themselves which can help the
organization to build up an effective team for the organization (Hwang and Choi, 2017). The
relationship is going to make the employees be able to share their skills and knowledge with one
another which is going to make the productivity and the quality of Unilever increase and that is a

very important factor. The demand of the customers is increasing in the market and that has to be
met by the company on time.
 Performing Stage
By this stage the employees are ready to work with one another and the changes can also
come in effectively. There are lesser conflicts by this stage and that is a very good factor for the
company to have so that the company can have better improved working. There are a lot of
technological changes which are currently taking place in Unilever so that there is a better
functioning of the organization in the market.
Factors Affecting Effective Team Team size
There have to be small group which have to function together because larger the group there
are going to be more conflicts in the organization. Coming to a common conclusion is going to
take a lot of time when this is done in an organization (Conroy and et.al., 2017). In a large group
there are a lot of creativity which can come out but there has to be done in the time period
allotted. The leaders will also be able to focus on all the employees when there are smaller group
made which can make the leaders help the employees as well whenever they need help.
 Leadership
It is very important for Unilever to have a strong leader in the organization to that there is a
better functioning. Leaders have to make sure that the employees are under their control and they
even have to monitor them from time to time. The leaders divide the pressure which is the targets
for the employees so that the employees can function better and not feel pressures in the
company. The leaders have to make sure that there is a sense of clarity in the functioning of the
organization so that the company can have a better functioning for a long run in the market.
 Communication
There has to be a strong communication in the organization so that the productivity does not
get affected in Unilever (Kim, Eisenberger and Baik, 2016). There are a lot of gaps between the
management and the employees of Unilever which needs to be filled by the human resource and

the leaders of the employees so that the right decisions can be made in the organization which is
going to make the organization have a better functioning.
LO 4
P 4 Philosophies of organizations behaviour
Path Goal Theory
Path goal theory helps to analyse the behaviour of employees in the organisation and
develop effective strategies which can increase the performance of the organisation effectively.
the main role of this theory is to analyse the effective leadership style which helps to encourage
employees to become efficient in achieving objectives effectively. This also improves the
potential of Unilever to compete in the market by analysing market current trends and increase
customer satisfaction effectively. Path goal theory is sub-divided into four styles which helps to
increase the potential to identify effective strategy to achieve competitive advantage effectively.
Directive Path
In this style leader provide directions and support to their employees in order to increase
employee performance effectively. this also helps company to analyse the employee skills and
knowledge expectations to increase decision making and reducing the cost to gain higher profit
margins . This style helps to increase the positive environment n the organisation and increase
the efficiency of employees to grow (Xu and Lv, 2018). However, this style also reduces the
independent decision making of employee in absence of leader which can impact the grow
opportunity of the company.
Achievement
Achievement leadership style helps employees to assign challenging tasks which helps to
push their potential and become more productive in achieving objectives of the organisation
effectively. this style also helps to increase confident in employees to solve problems and
increase their decision making skill. It also supports leaders to influence employees to increase
sales, production, and operation efficiency to increase profit margins and compete in the market
effectively.
Supportive leaders

Supportive leaders are very important part of the organisation as it helps to provide
support to all the employee at every stage to achieve their objective. Leaders also provide
effective information and knowledge to employees which increases the efficiency develop
healthy working environment (Latham, 2016). This leadership style helps to increase the job
satisfaction of employees and retain them in the organisation. It also reduces the cost of
operation of the organisation to gain competitive advantage in attracting more customers. This
style is adopted by the leaders to increase the communication between the employees and
increase employee relation to increase retention effectively.
Participative Leaders
Leaders in this style participates in the achieving the objectives with employees and
develop collaborative team working. This style also ensures the employee participation in the
decision making with leaders which increases the motivation level of employees. This behaviour
helps employees to become loyal to the company and increase productivity to increase customer
experience effectively.
Custodial organizational behavior model
This model helps to increase the effective behaviour of employees by providing
economic benefits to employees to improve performance of the organisation effectively.
Unilever provide employee benefits which develop positive attitude of employees to achieve the
objectives and create effective work culture. Incentives and financial rewards are providing to
employee on their performance which also develop high performance workforce to improve the
potential of company to attract more customers and increase their satisfaction effectively (Wilder
and et.al., 2018). This also helps company to improve skills and knowledge of employees to
communicate in the market and improve brand value of the company effectively.
CONCLUSION
From the above report it can be concluded that there is a need for the organization to
maintain a healthy and safety environment or workplace for the employees who are working in
the organization so that there is positivity in the organization while functioning. There are a lot
of negative impacts of different factors in the organization which have to be controlled and

monitored upon so that the demands and changes in the organization can come in effectively. It
is very important that the companies in the market are being able to achieve their objectives and
goals from time to time which is a very important factor for the company to have. The
competition in the market is increasing which is why it is very important for the organization to
be able to have a better planning and measures have to be taken for different situations as well
which are going to be right for the company. It is very important for the management of the
organization to consult the employees before making any decision which can make the company
have a negative impact and the reputation of the company can be affected.

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