Impact of Culture, Power and Politics on Employee Performance

This report analyzes the impact of culture, power, and politics on employee performance in the context of organizational behavior. It explores the influence of organizational culture on work flow, the different types of organizational power, and the role of politics in motivating employees. The report also evaluates various motivational theories and their critical analysis. Additionally, it discusses effective teams versus ineffective teams and the concepts and philosophies of organizational behavior. The analysis is based on the case of IKEA, a multinational furniture brand.

Organizational Behaviour

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BOODY...............................................................................................................................3
TASK 1:...........................................................................................................................................3
LO1:.................................................................................................................................................3
P1: Impact of culture, power and politics on employee performance.........................................3
M1: Critical analysis....................................................................................................................5
LO2:.................................................................................................................................................6
P2: Motivational theories.............................................................................................................6
M2: Critical analysis of Motivational theories............................................................................8
TASK 2:...........................................................................................................................................9
LO3:.................................................................................................................................................9
P3- Effective teams V/S Ineffective teams..................................................................................9
M3- Relevant team and group development theories................................................................10
LO 4:..............................................................................................................................................10
P4- Concepts and Philosophies of OB.......................................................................................10
M4- Theories influencing behaviour.........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Organizational behaviour is the analysis of individual’s behaviour within a organization, this
is done for developing effective organizational structure such that organizational employees are
able to collaborate their efforts for achieving a common organizational goal. IKEA is a
multinational furniture brand which provides high quality products at an affordable pricing to its
customers. Analysis of influence of work culture, organizational politics and power on employee
performance is done in this report. Evaluation of various motivational theories for motivating
individuals and team members is also done in report. Various effective team development
theories are also evaluated with that implementation of organizational behaviour at various
organizational situations of IKEA is also analysed in the report.
MAIN BOODY
TASK 1:
LO1:
P1: Impact of culture, power and politics on employee performance
Culture-
Organizational culture is the collection of several organizational factors which
contribute in achieving organizational goal, it is important for IKEA because it is the way which
decides the work flow within the organization. Following is the French and Raven method which
best describe organizational culture.
Power-
In this type of culture only a few limited employee of organization are responsible for
decision making due to which other only have to follow them, this type of culture will give
IKEA a high level of command over organizational activities (McShane and Glinow, 2017).
Role-
In this type of work culture responsibilities are given to employees on the basis of
roles which they are playing in organizational activities. This traditional way of working will
motivate employees to increase their working capabilities because their position within
organization.
Task-

Organizational teams are made within IKEA such that specific targets are allotted to
employees and then they have to self analyse their performance such that they are able to active
their targets. In this type matrix structure is also formed in which employees can report to two or
more heads which will reduce the problem solving time and high creativity is also achieved
(Tasselli, Kilduff and Landis, 2018).
Person-
This type of culture is more efficient in small scale industries because in this each
employee is a head of its own and can work in such a way that IKEA is able to achieve its
organizational goals.
Power-
Organizational power is the way in which employees influence the actions of other
employees; this influencing is based on many factors. Following are the different types of French
and raven forms of organizational power.
Coercive power-
Coercive power means organizational decisions are forced on employees such that they
have to follow them, with this organizational culture IKEA can make sure that their changes for
improving company’s performance are efficiently implemented (Kanfer and Chen, 2016).
Reward power-
As the name suggest this power is related to rewarding employees for the excellent
performance, thus employees are tend to put more efforts in improving their performance such
that they are able to achieve higher benefitsLegitimate power-
This is the organizational structure wise power in this employees at higher position of
IKEA have the ability of governing activities of other employees on the bases of power which
they are having within organization. This power arises only when a clear organizational structure
is available, thus to implement this power within organization IKEA has to develop clear
organizational structure (Gelfand and et.al, 2017). Expert power-
Expert power arises in employee only when they are able to completely understand the
working procedure of IKEA and capable of fulfilling the organizational requirements. This
power is established only when employees are able to communicate and able to share their
experience. This is most usefully power because it develops efficient team bonding and
employees are able to share work related issues with each other such that with proper

collaboration problem solving is much more efficient thus IKEA must develop a friendly
structure.
Politics-
Organizational politics is the way in which employee motivate other employees such that
with their working they are able to achieve organizational goals. Inter organizational politics
empower employees to implement organizational changes such that they are able to increase the
efficiency of organizational working by collaborating efforts of other employees. Inter
organizational politics develops team work spirit among employees but with that it also give rise
to negative politics in which employees de-motivate other employees such that they can achieve
their personal gain. This will make negative impact on IKEA’s overall performance, thus this
should be implemented in limited way.
M1: Critical analysis
Culture
Power-
This culture will also reduce employee’s loyalty and their creativity because they are only
following the orders irrespective of using their experience.
Role-
Due to long chain of commands implementing changes in organizational structure is time
consuming.
Task-
But issues due to miscommunication increases due to which employees can get two tasks
at a time and employees can also develop their own personal tasks.
Person-
Since individual employees are working as per their personal objectives, due to which
instability can arise within organization. Thus this could be implemented on higher level of
company where employees are well trained and aware of requirements.
Power
Coercive Power-
This will reduce employee’s engagement with organization due to which their loyalty will also
decreased, resulting negative impact on company’s performance in front of customers.

Reward Power-
Reward power will make negative on employees who are not able to achieve reward even after
their hard work, this will lead to decrement in their performance.
Legitimate Power-
Employee at higher position may misuse its power on other employees which will reduce their
working capabilities resulting lack of performance for IKEA.
Expert Power-
There are high chances that employees may start discussing other irrelevant topics which will
affect organizational working.
LO2:
P2: Motivational theories
Content Theory of motivation-
Content theory focuses on the psychological needs of employees which motivate them for
working and breaking their limits. Maslow’s theory of motivation is one of the widely used
motivation strategy which is used by organizations. Following is the critical analysis of
Maslow’s hierarchy of needs.
Maslow’s hierarchy of needs-
Maslow has divided the changing physiological needs of employee in a pyramid shape
which goes from bottom to top. These employees need changes when employee improves its
working capabilities, following is the Maslow’s hierarchy of needs.
Basic Needs-
Basic needs or psychological needs comprises of basic lively hood requirements of
employees, such food, water and shelter. It is important for IKEA to fulfil these requirements of
employees such that employees are able to concentrate at their workplace. Thus IKEAS’s
organizational structure must be accommodated in such a way (Gagné, 2018). With that a
specific time segment also has to be allotted to employees for utilizing these organizational
resources such as lunch breaks, where employees can take a break and fulfil these requirements.
Safety Needs-
Once the employee is able to fulfil its basic requirements then arises the safety needs, in
this type a sense of work place safety and other security needs arises within employee. Thus

employee seeks to work such that it can eliminate uncertainties and can fulfil its future
requirements. IKEA can fulfil this requirement of employees by providing them a sense of
secured future by providing job security and through efficient salary structure organization can
also eliminate the sense of uncertainties (Li and et.al, 2019). By doing so company will motivate
employees to work hard for better future
Belongingness Needs-
Once the employee is able to fulfil basic and security needs then it seeks for belonging
needs in which it tend to share the reward of its achievement with its loved once like friends and
family. This need motivate employees to improve its working capabilities such that it can
achieve high rewards. For fulfilling this needs IKEA can provide employees a efficient
organizational structure such that employee can communicate with each other such that they can
easily discuss their issues and share rewards with each other (Stewart, Courtright and Manz,
2019).
Esteem Needs-
Once the belonging needs of employees are fulfilled then in that case they seek for
having dignity and pride feeling due to which employee work hard such that it able to develop a
better position among other team members. High level of self confidence and pride feeling can
be seen in this stage, thus employee put more efforts such that it is able to achieve a better
position than others, thus IKEA can use this by promoting employee to higher post. By doing so
IKEA can improve its organizational working but at the same time organizational changes has to
be made.
Self Actualization-
This is the highest level of motivation at which employee tend to extend its performance
to the max level one can achieve thus it tend to learn new skills by which it is able to leave a
legacy behind. IKEA can use this behaviour of employee by providing them training such that
they are able to concentrate their efforts in a concentrated way which will enhance the goal
achieving capabilities of organization.
Process Theory of motivation-
Process theory focuses on the needs of employees which has to be fulfilled by the
organization such that employee is able to improve its working capabilities. Skinner’s

reinforcement theory is used for motivating employees such that their working capabilities can
improve by reducing the errors in operation (Cooper and et.al, 2017). Following is the critical
analysis of skinner’s reinforcement theory.
Skinner’s reinforcement-
Skinner has classified two reinforcement theories by which employees can be motivated
for performing well at their respective position on the basis of experience which they achieve
from their actions, following are two types of reinforcement theories.
Positive Reinforcement-
It states that positive experience of employees are more likely to be repeated again by the
employees. In other words if the employee achieve a good experience from some actions then
there are high changes that they will work hard such that they are able to achieve the same
experience. Thus IKEA must reward its employees if they perform well in achieving their target,
through this activity organization can make sure that they will get same high level of
performance (Pan and et.al, 2018). But on the other hand it will make negative impact on other
employees who are not able to achieve rewards even after their hard work.
Negative Reinforcement-
It is just opposite of negative reinforcement, it states that actions through which employee
get negative experience are less likely to be repeated again due to which company can make sure
that employees are performing to a base level by which a threshold level is achieved. This
method may provide base performance to organization but on the other hand this also limits
employee’s engagement with organization due to which their loyalty towards organization is
reduced (Lee and et.al, 2019). Thus this method is most likely to used but in a reduced way like
removing additional benefits from employees or strictly discussing the problem, by this
controlled aggression IKEA can achieve a base level performance from employees without much
affecting their loyalty.
M2: Critical analysis of Motivational theories
Motivational Theory
Basic Needs will also increase organizational expenditures Thus these segmented time
allotments are necessary but with that they also break the work flow. Safety Needs, it make
negative impact on company’s economic growth because expenses are increasing. Belonging

Needs, friendly work place could lead to high communication is which employees can discuss
irrelevant issues which will increase organizational times. Esteem Needs, Organizational changes
has to be implemented due to which complexities are increased.
TASK 2:
LO3:
P3- Effective teams V/S Ineffective teams
Effective teams refers to group of individual who cooperate in team for the task given to be
achieved in given time period by Ikea. It’s the team where each member unite with same vision
and are motivated to bring that vision in company (Raley, 2017). They set clear and measurable
goals and are highly committed to play there part in overall success of Ikea.
Ineffective teams are teams who are not focused, guided and directed in proper manner to
achieve the desired goals of company, lack understanding of what needs to be done, displays
flaws in communication and which are teams where conflict is highly driven as view, thought
and opinion of team members does not matches as result they lack commitment and motivation
to achieve business goals.
Impact of technology on organisational team in Ikea is it has helped smooth functioning of
business organisation as it facilitates smooth flow of communication at all level of business and
ensure in building culture which is fun loving and which helps Ikea to increase its research
capacities and various ensures security which brings business in operations of company.
Functional teams refers to group of individual with common expertise working towards
objectives shared in Ikea. Problem solving teams are teams that bring together members and
leaders and focuses on solving specific problems which comes in the company. Project team are
teams where members have different functions, belong to different groups and are assigned to
activities of some same or similar projects.
Benefit of team in organisation is that it helps in creating value to organisation by
achieving common goals with all the efforts of individuals guided in one direction.
Risk of a team in organisation is generally members are more concentrated towards
achieving their personal goals rather than organisational goals and thus leading to the conflicts
between the members of the team.

Conflict resolution is a way where parties in team find solution to the disagreement
amongst them which in turn helps company with smooth functioning in terms of boosting sales
and build positive brand image in minds of its customers (Wallensteen, 2018). It could be
understood better by some team development theories mentioned as below
Tuckman’s team development model- it includes 5 stages-
Forming Stage-It is initial stage where everyone in team is introduced with each other where
they displays to very polite in nature. This is starting stage where team discusses common goals,
role and responsibilities, background and ensure building relationship with each other at the
initial stage and getting to know each other.
Storming stage-This is second stage of team development where every individual and team
member at Ikea is aware of their characteristics they possess. It is the stage where conflicts are
risen as members or individual in team don’t agree to different option, viewpoints which other
possess and raise their own voice when they feel something is not favourable to them (Native,
Stark, 2016).
Norming stage- This the stage where people in team start to appreciate efforts of others and
everyone start to work as team. Conflicts in storming stages start to resolve as there is
understanding developed between them and which leads to unity among team members at Ikea
BelBin's Theory of team development-
This theory suggest that by understanduing various roles within a team it can help
indivuiuals to develop its qwwn strengths and manages its weaknessess. It could be understood
with stages of
Action oriented roles
Shapers- This are people in team who challenges to improve. This are dynamic and usually
extroverted employees who enjoy sinmualating others, finding best options to solve problems.
Implementor-this are people who get things done. They turn concepts and ideas into practical
plans and actions.
Completer- finsiher- This see the projects are completed throughly who ensures that there are no
errors and mistakes
People oriented roles
Coordinators- This are one in Ikea who take on traditional team leader role and also refer them as
Chairmans (Belbin's Team Roles,2018 ).

Team workers- This are people to provide support and make sure that all are working together
effectively together.
Resource investigator- These are people with curiosity and innovation, who explore various
options, develop contacts and negotiate on other basis.
Thought oriernted roles
Plant- This are creative innovators who come up with new ideas and approaches
Monitor Evaluator- When team member continuously monitor the team performance in such a
way that they assure team is performing well and achieving its objectives.
Specialist- This are people with specialised knowledge that is needed to get the job done.
Joining a team includes individual be to individual to be himself and possess its own strengths
and weaknesses and include knowing each other in team to build relationship. To work
effectively in team ones should have various organising, planning skills and self sufficient with
problem-solving and decision making skills
Team dynamics refers to unconscious behaviour of individual in team at Ikeas that influence
decision making in company and its performance. It can relate to conflicts at workplace, target
to be achieved and various others
Various skills that assist effective team work is individual have mindset of being go getter. They
are highy dedicated, committed and focused towards there task of what they want to do. They
also posses skills of problem solving, time management, critical thinking, collaboration and
various others
Team roles to achieve the task objectives is that it they should listen to problems of each and
every members which can help with in understanding problems that employees suffers which
increases efficiency and effectivenss of carrying on task which helps in providing productivity of
achieving goals

Advantange of performing in team is that it leads to allocation and utilisation of resources more
prominently where it gives insights about how effectively team is performing under dynamic
business situation which helps in getting edge and winning over the competition.
Disadvantage of working in team is it may leads to conflicts at workplace as a result of not
matching with viewpoints, though process which build negative and unfavourable working
environment.
M3- Relevant team and group development theories
Performing stage- This stage refers to where team members are highly expertise in there relevant
field and perform their tasks without any supervision. It is stage where everyone is focused and
committed to achieve common goals of Ikea as they are highly driven with loyalty and morale in
achieving what they want to.
Adjourning stage- It refers to stage of separation of team members where projects which they are
working upon ends. It is stage where individuals are driven with emotion as they have developed
close relationship with colleague where they find it hard to separate.
The theories of team development if not implemented in proper and assigned manner
leads to conflicts in workplace at Ikea which will lead to operation being non-productive as a
result of high loss of sales.
LO 4:
P4- Concepts and Philosophies of OB
There are various philosophies and concepts of OB some of which are mentioned as below
Path goal theory-It relates to style of leadership that is best suited in Ikea to guide the behaviour
of employees which result in their commitment, motivation, and enthusiasm to achieve the
common goal of company. It includes approaches-
Directive- This states direction are being given to employees on how to perform task as they are
unaware of what needs to be done and leaders lay down what is expected out of employees to
perform.
Supportive- It states that leader create and make an environment in company which is pleasant
where leaders show concern towards its employees needs by being friendly with them and
approachable (Phillips, Phillips, 2016).

Participative- It refers to leaders consult with its employees before making any decisions as it get
an insight in company with highly trained and skilled employees with their relevant expertise
areas.
Achievement- This approach sets leaders with various challenging duties to perform by its
employees where leaders shows confidence among its employees that they can achieve the goals
more effectively and efficiently.
M4- Theories influencing behaviour
Situational/ Contingency leadership- It refers to style adopted by leaders which depends on
situation which they faces while carrying their business operation (Cunha, 2019). It is not based
upon special skills of leaders but it depends on how leaders modify the same which depends on
varied situation in Ikea to meet desired goals and target
Social capital theory- This theory relates behaviours of individual which guide and considers
other individual to act and think generously and with co-operation. It is based on the structure of
social relationship where it is meant for developing relation which is based upon loyalty, trust
and not on behaviours that degrades other individuals.
Company needs to closely monitor its leadership style as it can make and break business where if
not implemented in proper manner leads to situation where competitors take an edge over
business which affects the brand image in unfavourable manner, where as a result of companies
figure of sales go down and which leads company to face harsh time to regain its throne in
marketplace.
CONCLUSION
From the above analysis it can be concluded that there are several organizational factors
which are having a direct impact on employee performance. It happens because these factors
affect the working procedure of organization therefore it is direct proportional to the employee’s
within IKEA, thus in order to attain high organizational output from employees several
organizational changes has to be implemented. Through this implementation IKEA can improve
its goal achieving capabilities which will lead to high organizational profit for which IKEA has
to implement motivational theories so it can maximize employee output at minimum
expenditures. With that IKEA can also develop organizational team such that company’s output

can be enhanced and for achieving this it has to implement effective team development theories
for tackling organizational situations.

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Online
Belbin's Team Roles.2018[Online].Available
through<https://www.mindtools.com/pages/article/newLDR_83.htm>
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