Effect of Organizational Behaviour on Employee's Performance

This report analyzes the effect of organizational culture, power, and politics on employee's performance and organizational teams. It also discusses different motivational theories for effective goal achieving and the impact of effective and ineffective teams.

ORGANIZATIONAL
BEHAVIOUR

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1: Effect of organizational behaviour on employee's performance...........................................3
M1: Impact of culture, politics and power on employee's performance......................................5
P2: Motivational theories for effective goal achieving................................................................6
M2: Influence through effective application of motivational theories........................................8
P3: Effective Team and Ineffective Team...................................................................................8
M3: Relevant team & group development theories ....................................................................9
P4: Concepts and Philosophies of Organizational Behaviours .................................................10
M4: Concepts and philosophies of organizational behaviour in business in given business
context........................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Organizational behaviour is the study of different ways in which employees interact with
each other within organization. This study of organizational behaviour is used for improving
productivity and goal achieving capabilities of employees. Richer sounds is a hi-fi and TV retail
chain which provides wide variety of Television Vision, Home cinema equipment’s and
premium audio devices. The report will analyse the effect of organizational culture, power and
politics on performance of employees and organizational teams. In addition to that different
motivational theories will also be analysed in this report and effectiveness in deciding the goal
achieving capabilities is also evaluated in this report. Application of effective team within
organization is also done in this report. With that conceptual and philosophical organizational
behaviour will be discussed in this report.
MAIN BODY
P1: Effect of organizational behaviour on employee's performance
Employees performance at Richer sounds is affected by many internal factors such as,
Organizational culture, internal politics and power influences within organization.
Culture
Organizational culture is an collection of practices, values and expectations which guides
the actions of team members. Handy's four classes of culture is used for better elaboration of
work culture, which are as following.
Power culture- Decision making is concentrated on the higher authorities, therefore Richer sound
must use this, for gaining a high level of control over their organizational working
(McShane and Glinow, 2017).
Role Culture- High level of control can be achieved in this work culture because Richer sounds
organizational responsibilities are divided according to roles which employees are
performing in organizational structure. This will increase employee's creativity and also
enhances their engagement with organization. In Role culture decision-making is often
slow because of long chain of command caused due to multiple authorities within
company.

Task Culture- Richer sounds organizational working would be divided into teams and each team
is having two or more heads. This culture will enhance the goal achieving capabilities of
Richer sounds because the decision-making and problems are solved in fast way. This
will also increase the productivity of employees because employees will be getting
instructions from two or more heads (Gagné, 2018). In case of task culture there are
high chances of misunderstanding between team heads and team may develop their
personal objectives.
Person Culture- In this type of culture each employee is considered as it owns unique head
within organization. This could be beneficial for Richer sounds because company has
empowered their employees (The guardian, 2019). This will increase the productivity of
employees and goal achieving capabilities. The drawback of Person culture is that
employees will not be able to coordinate with each other.
Power Influence-
Power in terms of organization, is the ability by which actions of other employees are
governed by the higher authorities in such a way that their actions would be beneficial for Richer
sounds. According to French and raven, power is divided into 5 form.
Expert power- It is regarding the experience which an employee achieves through their
experiences, since the higher authorities of Richer sounds has empowered their
employees. Therefore, company's experience employee's must drive the organization
towards achieving their organizational goals.
Referent power- This is related to employee's personal behaviour by which other employee's
effectively communicate regarding an issue which they are facing in their work area.
Since Richer sounds is converted into employee centric (The guardian, 2019). Here it
becomes important that company's employees are able to refer to their seniors regarding
work issues. For referent power there are high chances of miscommunication between
employee's which will affect Richer sounds performance in negative way.
Legitimate power- This power of driving others action is associated with the position at which
employees are working. In other words, employees follow instruction from higher
senior employees because of the position and power they are having within Richer
sounds. As in case of Richer sounds its senior employees are empowered to drive
organizations working towards their desired goals. This will motivate then to work hard

for achieving their goals. Legitimate power similarly the new goal may be different
from organizations vision.
Reward power- This is the capability of rewarding employee's for performing well in their given
task. Richer sound must empower their team leaders to reward their team members and
individual employee's, so they can be motivated for improving their performance. It
would be beneficial for company richer sound, because sudden changes in higher
authorities has made a negative impact on employee's motivation. Reward power on the
other hand this will also increase organizational expenditures.
Coercive Power- It is ability of higher authorities within organization to take benefits from
employees. Through this punishment strategy Richer sounds can motivate their
employees to work hard, so they can achieve their organizational benefits. This will
enable company to motivate their employee's that they maintain a consistent
performance through their working period. Coercive power makes a negative impact on
employee's loyalty with organization, therefore it must be implemented properly.
Political
Organizational politics is way in which employees make a unified decision (iEduNote,
2017). Chanlat's characteristics of political behaviours is used to link political behaviours of
employees with other aspects of organization. Internal politics makes a direct impact on
employee's performance, politics within organization is of two types, Good politics and Bad
politics. In case of good politics employees are able to share their issues regarding work place is
discussed effectively.
M1: Impact of culture, politics and power on employee's performance
Culture-
Power culture makes negative impact on employee's creativity because they are only
following orders provided by higher authorities. Therefore organizational culture should be made
such that it motivates employee's to work as per organizational requirement.
Power-
Expert power, has side effects because employee's may set their own personal targets
apart from company's vision. In case if organization is not able to provide a high role model then
it will make negative impact on employee motivation.
Politics-

In case of bad politics decision-making is concentrated on few employees which causes
negative impact on employee's performance. With that employee's may try to demotivate others
so their performance can increase this will make a negative impact on employee's motivation and
affect organizational working.
P2: Motivational theories for effective goal achieving
Motivation is key factor which drives an employee's actions toward achieving
organizational goals. Motivation is of two different types which are as following.
Content Motivational Theory- It consists of psychological requirements of employees which
has to fulfilled by Richer sounds to keep employees motivated for achieving their goals.
Maslow's hierarchy of needs is widely used among several content theories.
Maslow's Hierarchy of Needs- It shows the psychological changing requirements of employees
in a pyramid shape which has to fulfilled by Richer sounds to keep its employee's motivated. To
effectively implement this organization has to closely analyse its employee's performance.
Following are different levels of employee's need.
Physiological Needs- Richer sounds organizational structure must be able to fulfil basic
requirements of employees, like food, water and shelter. By fulfilling these basic
requirements of employees company can make sure that its employees are
concentrating on their work.
Safety Needs- Safety needs comprises many factors like, job security, financial security, personal
securities, etc. These factors affect employee's concentration towards their work and
affect their work efficiency (Borkowski and Meese, 2020). Therefore, richer sounds
must ensure that they are able to fulfil the safety needs of employees. For example,
providing job security, making work place safe and many other activities.
Belongingness- This is the third level which comprises inter-personal relationship. This
organizational teamwork will make a positive impact on employee's performance and
will also increase their creativity. So Richer sound must develop a friendly work
environment for their employee's to work.
Self Esteem- This need contains the feeling of respect and sense of achievement which an
employee desires from its team members. To fulfil this need Richer sounds can make
changes in their hierarchical power structure so employees can get higher position

within company with increment in their experience. This will motivated them for
improving their performance.
Self Actualization- It is considered as the final stage of employee motivation in which employee
tries to achieve it capabilities (Chen, Chen and Sheldon, 2016). Since Richer sound has
become employee driven company therefore, they must provide an opportunity to their
employees to increase their capabilities and learn new skills, so they can be more
beneficial for organization.
Process Motivational Theory- This focus on how to motivate, it contains physical activities and
rewarding through which employees can be motivated for achieving their goals. Skinner's
reinforcement is widely used among several process motivational theories.
Skinner's Reinforcement Theory-
According to this theory employee's behaviour toward their goal can be affected by the
consequences which they face at their work place. This theory uses two methods through which
employees can be motivated to improve their performance, which are as following.
Positive Reinforcement- Actions through which employee got positive experiences are repeated,
therefore Richer sounds can use this reinforcement technique to motivate their
employees for working hard. This will also motivate others to work hard and achieve
reward.
Negative Reinforcement- Activities through which employees get negative experiences are not
likely to be repeated. For this Richer sounds can take certain advantages for their
employees, this will create bad experience for employees and will motivate them to
improve their working. But simultaneously its increases the chances of creating
negative competition among employees. But it decreases their loyalty towards
organization.
M2: Influence through effective application of motivational theories
Through proper implementation of motivational theories Richer sounds can motivate its
employee's to increase their working efficiency. The goal of each motivational theory is to
improve working of employees and the methods are ways through which this can be done. But
simultaneously it will also have a negative impact either on company or on employee. For
example, Maslow's theory of needs is limited to few employees because organizational structure

cannot be changed as per all employees. Skinner's theory will decrease employee's loyalty
towards organization.
P3: Effective Team and Ineffective Team
Effective teams are the teams in the company that work together to achieve common
goals. It refers to team where each member contributes their part effectively and efficiently
where each member listen to instructions carefully to each other and have relevant discussion on
how to perform tasks more effectively (Ulrich, Crider, 2017). Effective teams in company are
self-conscious about the operations and its decisions are based in the consensus and not on the
votes of majority. It leads to open communication in company where each member participates
in sharing views, ideas and opinions. It helps in improving quality in operations of the company,
facilitating successful completion of project. They use the time more efficiently and are directed
towards the goals which serves as the foundation for the company and help to improve the
quality that helps in facilitating the completion of projects which helps in increasing efficiency
and productivity. It refers to the co-operation where it is not about the individual achievement
but it is about the achievement of goals by the teams. Communication in the team is flawless
which results in smooth functioning of operations (Gervits,Eberhard,Scheutz,2016).
Ineffective team refers to the team in a company where there is no process designed for
achieving goals of the company and resolving conflicts. It leads to discussion which is not useful
and there is lack of commitment in members for achieving the goals of the company. Ineffective
team in Richer sounds is filled with distrust, conflict driven, not focused towards the goals which
in turn leads to high turnover of employees, increased frustration level among the members, poor
communication and tolerance (Gilal, 2016). In this kind of teams leader dominates the power in
unfavourable manner which leads employees with unequal participation towards achievement of
goals and leading to the environment in the company which develops negative vibes where
members blame each other if anything goes wrong which results in conflicts to occur. These
teams do not receive proper training and there is lack of leadership which fails to understand the
strengths and weaknesses of individual which leads to inefficiency in business operation.
Members in the team are quick to point out mistakes and errors rather than learning from the
same and moving forward. It leads to build an atmosphere which is full of negativity. Members
in ineffective team do not follow the instructions properly where it evaluates the behaviour of
individual to be careless which do not contribute much towards the operations of the company.

M3: Relevant team & group development theories
Tuckman Group development model
This theory is relevant as this recognizes the fact that teams or groups does not start off as
fully-formed and functioning. There are stages from which employees pass by in the course of
their business operations. Theory is relevant as this suggests that team in Richer Sounds grow
through clearly defined stages, from individuals to groups to teams which are task-focused. Each
stage plays a vital role in building team which is high functioning, these stages are forming,
storming, norming, performing and adjourning. This is relevant as it recognizes how team
performs, behaves and makes decision from the time the groups meet until when the projects
end. It is useful and relevant as it explains how team develop maturity and ability to perform a
given task, establishing relationship and how leader changes the leadership style
(Natvig,Stark,2016.). Theory serves to be simply relevant as it helps in understanding how group
develops and enables the same to fulfil their full potential. It is relevant as it focuses on the group
development where the members of the teams are involved so efficiently in all the 5 stages that
makes communication more effective. Tuckman model is relevant as it helps leader of the team
to understand where its team stands and what further actions can be taken to make team perform
better. Theory serves to be useful as it explains how a team can reach towards the performing
stage as quickly as possible. It helps in understanding how the team evolve over the course of its
project from start to end. This is highly relevant in consideration with the effective teams as it
helps in considering how team may encounter several problems which comes in their way to
development (Li and et.al, 2019). It includes five stages that are
Forming – In this stage teams are assembled and task are been allocated. Each member tend ti
behave independently where time is spent on collecting information, planning and developing
bond.
Storming- This stage address to task by suggesting ideas. This is very important phase as
different ideas compete and if this phase is badly managed it can be very destructive for a team
as whole.
Norming- It includes moving to harmonious working practices where teams agree on rules and
values by which they operate.

Performing- This phase leads a team to perform towards the achievement of goals. Leader
delegates work and concentrate in how to develop a team effectively.
Adjourning- This stage is not suitable for teams who develop close working relationship as they
may find it difficult, particularly if their future is uncertain.
It is required on part of company to form effective team as it will result in achieving task
more efficiently with productivity where ineffective team result in making of business operation
more complex as the focus from task shifts to unusual things leading for loss of company.
P4: Concepts and Philosophies of Organizational Behaviours
It investigates individuals, group and structures impact on behaviour within an
organization. These are foundation that shapes direction and serves as an essence of
organizational behaviours. It includes following.
Path goal theory
It is leadership theory which is based on specifying style and behaviour of leaders that is
best fit for employees and working environment in order to achieve desired goals of a company.
Goal of this theory is make employees of the Richer sounds to be motivated, engaged and
satisfied, so they can become productive member of a company (Lee and et.al, 2019). It
identifies directive, achievement, participative and supportive leaders behaviours.
Directive style- It refers to situation where leaders of company let know what is expected out of
them and brief on how to perform tasks. It is most effective in cases when individuals are not
sure about tasks and are uncertain about environment.
Achievement style- It refers to the style where the leaders of Richer sound sets challenging goals
for its employees and expects them to perform at their highest level, and shows confidence in
their ability to meet their expectation. It is effective in occupations were achievements are most
prominent which can be sales person, engineers, entrepreneurs etc. (Farhan,2018).
Participative style- It is the style where the leaders consult with its employees and asks for their
suggestions before making a decision. It is predominant on the part of employees as they are
personally involved in their work process. It is highly effective when subordinates are highly
involved in the work and are trained.

Supportive style- It is a style which is directed towards satisfying needs and preferences of
employees where the leaders show concern for it employees. It is needed in situations where
tasks and relationship with other employee's is physically or psychologically filled with distress
Contingency theory
It is leadership theory that claims that there is no best way to organize a company, to
make decisions and to lead a company, instead it is contingent or dependent upon the external
and internal situation. Contingent leader in Richer sounds effectively applies own style of
leadership to different situations (Kim and et.al, 2019). They are flexible in choosing and
adapting to strategies which are suitable to change to a particular period in running business. It is
based on ideas that defines success of leaders depends on situations and how leader response to
the same. It helps in describing importance of both leaders' personality and situation
environments which can be internal and external in which leaders operate. It states that, leaders'
effectiveness is contingent to situation where leader can be efficient in one situation and
inefficient in another situation. The mentioned theory gives understanding to managers
knowledge and style which they adapt to take different decisions in different situations.
(Kulkarni,2017).
Resistance to change Model states that effective manager in company uses employees in
order to refine and improve upon a change process. It is applied when manager reaches at a stage
of reducing resistance to change. It states that communicating change decision and using
employees resistance, then assessing employees commitment towards change. It includes various
reasons which generates resistance to change and applying positive methods for reducing
resistance and helps in assessing employees behaviour towards the same (Lyskova,2019).
Barriers to effective behaviour can be challenges of knowing tasks from where to begin
with as team members initially can find difficulties in several steps of task, which requires
proper training and development on the part of employers towards its employees.
Barriers can be overcome by changing the individuals' behaviour which resolves around
the actual level of their participation in the company. It can also be overcome by introducing
effective training programs which helps in building skills of the employees which in turn reduces
barriers in their behaviour and contributes towards increased productivity of business operations.
Social capital theory states that social capital arises from a capacity of individuals where
it considers others, to think & act generously and cooperatively (Zulkifli, binti 2017). It relates to

social relationship and social structure between an employer as well as employee's of a company.
It involves positive relationship which are developed on basis of trust, kindness, respect and
reciprocity. It is based on a concept to encourages action that are pro social and not to entertain
behaviour that are exploitative in nature to employees of company. It states that being social help
Richer Sounds to survive in a marketplace. It leads to education of employees on how to
network, reducing conflicts at workplace, improves business performance, innovations in
company and growth of individual in their career path.
Path goal theory can be applied in a situation for example COVID-19 when there is lot of
pressure on retailers as leaders of the company can use the Directive style, which is suitable for
the uncertain environment conditions. The leader of Richer Sounds lays down what is expected
out of them in the given condition of COVID-19 to perform better in their given operations
(Kanfer and Chen, 2016).
It can also be applied in situation when the retailers all over the world like Richer sounds
are Under pressure due to increased trend of online purchasing by the customers where leader
of the company can exercise achievement style of path goal, where leader sets out challenging
task for employees to attract customers towards the store and make them aware towards its
product and shows confidence in the ability of its employee's to achieve their goals.
M4: Concepts and philosophies of organizational behaviour in business in given business context
Contingency theory of leadership is the best suited for situation like COVID-19 and
increasing trend of customers towards online shopping as leaders of the company can use style
which is preferred by them to get control over the situation. It can result in winning over the
marketplace and help in generating awareness about the customers towards purchase of goods
and services from the stores nearby which ensures the survival of the company,(Ghosh, 2017).
Relations with customers which is a part of social capital theory helps to fight with situation
mentioned above as it will help in building trust of customers and generate loyalty of customers
towards Richer sounds.
Path goal theory sometimes leads in too much dependence on the leader where the
system may collapse if something goes wrong. The disadvantage is everything is in the power of
leaders so if anything goes wrong leader will be only responsible for the circumstances.
Contingency theory is complex as it is said managers go according to the needs of
situation but when it is put in practice it becomes complex as it is not sufficient to say

managerial actions depends on the situations and managers take actions accordingly. This theory
is reactive in nature not proactive as sometimes handling of the situation becomes hard (Gelfand
and et.al, 2017). It is not always feasible for the managers of Richer sounds to consider every
factor and determine the variables which are involved in the decision-making process. It is
highly straight forward that all situations can not be dealt with the same manner but when it is
actually practised it is very hard process for managers of company.
CONCLUSION
From above report it is being concluded that culture, politics and power in a company
plays a vital role in influencing behaviours of individual and team towards their performance of
achieving goals of a company. Favourable culture, power executed in right way and good
politics helps in bringing best out of an individual which increases their productivity to perform a
task better and helps company in retention of talented staff and motivates them to contribute
towards achievement of goals. It is understood that effective team are more focused towards their
tasks to be performed in comparison to ineffective teams which lacks commitment and is not
guided in proper directions to achieve the desired goals of the company. It also led to the
understanding of various concepts and philosophies of the organizational behaviour amongst
which it stated how leader/ managers react, respond to the situations and make the proper use of
various style to achieve targets of company.

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