Organisational Behaviour: Impact of Culture, Politics, Power, Motivation Theories, and Effective Teams on Performance - TESCO Case Study

This report discusses the impact of organisational culture, politics, power, motivation theories, and effective teams on performance through a case study of TESCO. It evaluates the different types of organisational culture, power, and politics, and the content and process theories of motivation. It also discusses effective and ineffective teams and their impact on performance.

Unit 12 Organisational
Behaviour

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Potential impact of organisational culture, politics and power on individual, team
behaviour and performance.........................................................................................................3
TASK 2............................................................................................................................................6
P2) Content and process theories of motivation and motivational techniques...........................6
TASK 3............................................................................................................................................9
P3 Effective and Ineffective team...............................................................................................9
TASK 4..........................................................................................................................................11
P4 Application of concepts related to OB.................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Organisational behaviour is determined as study of both individual and group
performance within entity. In this, formative study of human behaviour is done along with its
impact upon job performance, job structure, leadership, communication and more. For this,
different type of strategies, policies and plans are being framed with an aim to align individual
behaviour with objectives of organisation (Griffin and et. al., 2020). Present report has
been conducted on TESCO, respective entity is operating their business operations in retailing
sector and was founded in the year 1919. With having more than 6,800 shops Tesco offer their
products via convenience shop, supermarket, superstore, hyper store and hypermarket. In this
report formative discussion has been made on the manner in which organisation's power, culture
and politics influence team and individual behaviour and performance. Along with this, report
include contribution of process and content of motivation in accomplishment of organisational
goals. In addition to this, elements of effective team and application of philosophies and concepts
of OB in organisational context are also included in present report.
TASK 1
P1 Potential impact of organisational culture, politics and power on individual, team behaviour
and performance
Organisational behaviour is defined as a concept that included the manner in which
individuals behaves and interact within organisation. In context with TESCO, it has been
evaluated that executives of company developed strategies and policies through which they are
aiming towards evaluating individual’s behaviour to access their contribution. This lead them to
determine any variance in results that can further be managed with effective measures.
Mentioned below culture, politics and power impact upon employee performance is defined:
Organizational culture:
Handy's Culture Typology
According to Charles Handy it has been evaluated that four types of culture are affecting
behaviour of organisation:
Power culture:
This culture states that some employees are authorised to give their contribution in
decision-making that resulted in their higher efficiency and creativity. However, this sometime

results in improper form of balance of power as selected individuals are entitled to take decisions
(Jacobs and Manzi, 2020). Further decisions get imposed on other without undertaking opinion
of others. Adaptability of this culture, makes employees de-motivated and also affects their
creativity and performance.
Role Culture:
This culture facilitate organisation to allot roles as responsibilities to every individuals as
per according to their talent and expertise. In addition to this, in this culture power is also being
allocated according to position that has been held by them. With the help of this culture TESCO
can increase their end outcomes efficiency.
Task culture:
Within this form of culture, different forms of team get formed to fulfil underlined
objectives in given time period. This culture within TESCO facilitate maximise active
participation of every employee. In this entity can also develop team that share mutual purpose
as to effectively accomplish organisational goals in stipulated time manner.
Person culture:
In this type of organizational culture, a person thinks that he/she is superior and dominant as
compared to others. Workforce in this work culture considered their interests only and
encouraged to have their own welfare rather than working for the organization. TESCO working
can be impacted negatively because employees have financial motive and there is no presence of
dedication towards the achievement of organizational goals.
According to the above evaluation it has been analysed that TESCO undertakes use of
role culture. This culture allows organisation to allot roles and responsibilities to team and
individual according to their expertise. It significantly increases their efficiency of work through
which entity assures higher profitability.
Organisational power
French and Raven's Power Types
Legitimate power:
This power basically sustains in top managerial executives hands like CEO and owners. It
has been seen that this power can reduce level of creativity among employees as their ideas and
opinions are not taken into consideration (Galli, 2020).
Reward power:

Managers and leaders of TESCO by offering various form of rewards can increase
performance efficiency of employees. This also facilitate entity to ensure that individuals are
motivated and focused towards objectives of company.
Coercive power:
In this power, individuals within entity are forced to perform task against their wish
according to company guidelines. Main aim of this is to fulfil goals in time effective manner.
Enforcement of company standards lead TESCO to see sense of dissatisfaction among
employees that can further affect employees to fulfil their goals in effective manner.
According to the above mentioned analysis it has been evaluated that, TESCO is
undertaking use of reward power in they offer reward to employees according to their
performance. This effectively impact upon team and individual performance and behaviour in
positive way. As by prasing employees according to their contribution enhances sense of
commitment and loyalty among employees in effective manner that enhances profitability of
company.
Organisational Politics
Chanlat's characteristics of political behaviour:
According to chanlat model, political behaviour are divided in three different aspects that
include decisional, personal and structural. Within this employees quality in context to using
political power are undertaken into due consideration during selection process by managers. In
relation to Machiavellian, it is determined that important characteristic undertaken by TESCO
leaders is to develop decisions to accomplish organisational goals in effective way. According to
the analysis this has been determined that, organisation politics impact in a positive way upon
behaviour and performance of employees, if company execute positive politics in their
workplace operations.
TASK 2
P2) Content and process theories of motivation and motivational techniques
In order to achieve desired targets and objectives on time it is vital for a company to
provide regular motivation and direction for its employees. Motivation basically comprises of
factors that effectively initiates, guides and influence employees to have a goal oriented

behaviour in order to improve their performance. Use of different motivation theories and
techniques is made by Tesco Plc to guide and drive its employees for better performance in order
to achieve set targets and goals on time a discussion of which is provided below:
Content theory of motivation
The main emphasis of content theory is on meeting the needs and desires of employee’s
fulfilment of which leads and ensures higher level of satisfaction and motivation to achieve set
targets.
Herzberg Two Factor Theory of Motivation
This content theory of motivation was given by Frederick Herzberg in year 1959 who
bifurcated all the factors that are present at place of work into two main categorises comprises of
Hygiene and Motivation factor. This theory argues that an organisation can adjust and set a
balance among these two factors to motivate and inspires its employees. A discussion about
these motivation and hygiene factors are provided below in context of Tesco Plc to evaluate their
impact on employees performance in achieving organisational goals.
Motivation Factors- these factors are intrinsic motivator which are found within the
actual job that are tends to be less tangible and meet more emotional needs which comprises of
challenging work, good relationship, recognition and better growth potential which encourage
employee to work harder. In context of Tesco Plc a positive workplace environment is provided
to all employees along with effective and transparent communication to establish a healthy
relationship with its workforces which drives better coordination and encouragement in them to
achieve organisational goals in more effective and better way.
Hygiene factors- these factors are taken as extrinsic motivators which are not present in
actual job but tends to be surrounded by the job. The main factors which are included in hygiene
factors and provided by Tesco plc to direct and inspire its employees for achievement of set
targets comprises of job status, regular and timely salary, job security and other perks and fringe
benefits which keeps them satisfied at workplace to perform their task in more efficient manner
for accomplishment of desired organisational goal of Tesco. It has been evaluated that
organisation by offering satisfaction to employees by emphasizing upon hygiene factors them it
effectively allows Tesco to enhance workplace performance of employees through which entity
can effectively accomplish their goals and objectives while assuring higher profitability.
Process theory of motivation

Implication of process theory is made by Tesco plc to ensure improvement and effective
development in employees so that organisational gaols could be achieve by them in more
efficient and viable manner.
Goals setting theory of motivation
This process theory of motivation was lead out by Edwin Locke in year 1960 to provide
internal motivation in employees to boost their performance and efficiency level by means of
setting out challenging goals. As per this theory, five dimensions are provided which must be
kept in mind while setting a goal or target to motivate and drive employees for its achievement.
These five dimensions or principles of goal-setting-theory are discussed below in context of
Tesco Plc:
Clarity- the goal set out by a form needs to be clear so that it could be properly
understood by employees to reduce the chaos and conflicts which hamper employee’s
performance and efficiency (Hamlin and Patel, 2020). For instance, Tesco plc sets clear goals for
its employees which can be easily understood by its employees like enhancing sales margin by
15% in coming 6 months which clearly specifies the targets that need to be achieved by
employees along with clear time lines and duration. Thus, clear gaols bring clarity in minds of
employees of Tesco plc and reduces the chances of chaos and conflicts which improve their
performance and lead to better accomplishment of gaols.
Challenge- to ensure extra efforts from employees and lead their better development it is
necessary that a challenging goal must be set out by a firm. As in case of Tesco plc, challenging
goals are set out for its employees along with providing better rewards and perks on achievement
of challenging goals which keeps its employees motivated and encouraged to achieve them to
earn better rewards and recognition.
Commitment- the next dimension of goal-setting-theory comprises of high level of
commitment and dedication which drives employees for better performance which is necessary
to achieve a set target in an efficient manner. In context of Tesco plc, proper participation and
involvement of employees is allowed to set an out a goal which provided higher level of
commitment and dedication in employees by leading a feeling of belongingness and sincerity
which drives their effort for achievement of set targets.
Feedback – regular feedback and open discussion is also provided by Tesco plc for its
employees which boost their morale and satisfaction level by leading a feeling of belongingness

and loyalty. Open discussion and feedback form employees leads to timely clarification of
doubts and confusion for achievement of set targets and organisational gaols of Tesco plc on
time.
Task complexity- to ensure proper achievement and accomplishment of complex task
Tesco plc proper guidance and direction is provided to employees for its timely and efficient
achievement. It ensures better development and enhanced self sufficiency in employees as they
build higher level of confidences through achieving a complex task which makes them more
capable and efficient for accomplish of organisational goals and target in better way. With the
help of this motivational theories TESCO can effectively fulfil their objectives in effective
manner as if leaders provide effective guidance to employees then it automatically increases their
work efficiency.
By undertaking advantage of different motivational techniques like job security,
flexibility, benefits and rewards Tesco can effectively conduct their operations while assuring
higher profitability and productivity. In addition to this, it also increases job effectiveness of
employees through which respective entity maximise their capabilities of earning high profits.
TASK 3
P3 Effective and Ineffective team
A team is a combination of number of individual those who are combined together with
an aim to accomplish a common objective or goal. Team allows entity to fulfil their
organisational vision with higher efficiency. In context with TESCO, team facilitate fulfilment of
company objectives with more potential (Alexander, Bloom and Taylor, 2020). Team allows
sharing and effective flow of information and knowledge through which overall level of
performance of both entity and employees maximised. This makes TESO managers and leaders
to fulfil company objectives with the contribution of team to assure maximum growth and
profitability.
Effective Team:
In effective team, individuals are communicated with their actual roles and
responsibilities that allows fulfilment of team goals without any confusion or misunderstanding.

In this, team members are also engaged in the process of decision-making process that increase
their confidence and responsibility towards team roles.
Ineffective Team:
Within this, there is unequal participation and less involvement of team members in
decision-making is seen. Roles and responsibilities are also not clear that increase chances
ineffective end outcomes.
The different between effective and ineffective team
Effective team Ineffective team
 In this team there is equal contribution
of all team members that increases
efficiency of results.
 Team leader effectively distributes
power among team members according
to their expertise and role.
 Team members are engaged in the
process of decision-making that
increases their commitment towards
team goals.
 Team leaders communicate each and
every essential information to team
members that increase effectiveness of
individual’s performance (Gastil and
Broghammer, 2020).
There is not coordination among team
members as in this form of team unequal
participation is seen.
Power is not distributed according to roles,
expertise that increases sense of partiality
among team members.
In ineffective team, team members are not
engaged in decision-making. Also, in this team
leaders does not consider perceptions of
individuals.
There is one way communication prevails with
ineffective team that increases domination of
team leaders along with chances of conflicts.
According to the above evaluation it has been determined that, TESCO by undertaking
use of effective team in their workplace premises can significantly assure higher profitability and
impressive end outcomes. As one of the most important advantage of effective team is that, if
there is conflict among team members then there is mutual understanding among individual that
lead towards win-win and lose-lose situation (Le Thi, 2020). Effective team also allows TESCO

leaders and managers to communicate roles and responsibilities to each and every individual that
increases possibilities of profitable results.
TASK 4
P4 Application of concepts related to OB
Effectiveness of team is required to be evaluated by TESCO in order to fulfil their team
objectives. This will allow entity to maximise their performance at great extent. Thus, it is
essential for company to regularly motivate employee and effectively guide them towards entity
objectives by taking assistance of various motivational tools:
Integrity:
This factor revolves around the concept of entity reputation or brand image in external
environment. Thus, organisation is required to undertake use of different types of techniques and
tools through which entity can assure positive brand image in marketplace.
Responsibility:
This is an essential aspect in which entity managerial executives are required to allot
duties, responsibilities and role according to expertise, capabilities and skill of employees. With
the help of this TESCO can assure accomplishment of their business operations with higher
efficiency.
Path Goal Theory of leadership
This theory was coined by Robert house in the year 1971. Path goal theory include
explanations related to leadership styles and traits (Strobach, Jekauc and Pfeffer, 2020). Along
with this, this theory develops meaningful online training experience that assist in maximising
skill and motivating individual. This theory underlines leader's behaviour or style as per
according to work environment. It has been evaluated that leaders hold most important
responsibility related to motivating and guiding individuals in proper direction. Path goal theory
aid leaders to undertake advantage of strong approach and clarify path that facilitates employees
towards proper direction.
Employee characteristics:

Within this, employees are judged as per according to their capabilities, knowledge and
skills. With the help of this organisation can offer them training to maximise their skills for
higher level of performance. It also allows entity to provide motivation to their employees that
facilitate company to assure more productivity and profitability. According to the analysis, this
has been determined that TESCO staff members developed negativity from each other.
Task and Environment Characteristics:
In this, organisation leader holds important responsibility which is related to assuring that
employees are working in suitable direction. It has been identified that TESCO is affected with
the issue of negative working environment which is further leading towards increase in number
of conflicts.
As per according to the above evaluation this has been signified that TESCO current
business situation is adversely affected with the issue of ineffective communication and negative
work environment which is significantly decreasing employee’s productivity.
Leadership Behaviour:
Leaders within entity holds important responsibility through which they can increase
overall productivity and profitability of organisation. For this they undertake advantage of
effective leadership style according to prevailing situation.
According to the evaluation it has been underlined that TESCO workplace environment is
facing issue related to negativity working environment and communication inefficiency. This
makes leaders to undertake use of participate leadership style as to effectively overcome all the
issues in a feasible manner. With the help of this leadership style, leaders encourage employees
to take place in process of decision-making and share ideas. It automatically enhances sense of
empowerment among employees towards entity. However, this leadership style increases time
duration of decision-making.
According to the evaluation, this has been determined that with the use of participation
leadership style leaders can see both negative and positive impact (Grigorov, 2020). As
participation leadership however increases level of inspiration within employees that increase
their work efficiency but is also makes sharing of ideas and thought that differs from person to
person. For this, it is important for TESCO leaders to emphasise upon both perspectives of
participative leadership styles while applying them into business situation.
Philosophies of OB

This basically involves contingency and autocratic philosophy. It has been evaluated in
context to contingency that, it aims towards development of futuristic plan while if it is talked
about autocratic, it relies upon formation of plan that are close to an individual. In order to
effectively overcome challenge associated to negative workplace environment and
communication inefficiency, TESCO executives can take use of Contingency philosophy.
Leadership Theory related to OB
System leadership theory
Systematic leadership theory allows leaders in organisational workplace structure of
formulate an environment within which all individuals at any level can conduct roles in effective
way. It involves efficient principles related to human behaviour as to develop a model of social
process and strategy of system design and effective leadership. Application to this, theory
facilitate TESCO to overcome issues related to negative working environment and ineffective
communication. This theory also facilitates leaders to undertake advantage of significant
strategies through which overall productivity of employees can be increased by evaluating their
behavioural conduct (Kachitsa, 2020). This further allows leaders persuade and encourage
employees with different motivational techniques through which creation of positive workplace
environment can be assured. In addition to this, evaluation of employee’s behaviour aid leaders
to influence them in positive manner which also increases communication flow between
employees and leaders.
CONCLUSION
According to the above mentioned report this has been concluded that, organisational
behaviour includes study of human behaviour within organisation. This makes managers and
leaders of company to effectively evaluate behavioural conduct of each and every individual
associated to company goals in order to further motivate them towards high performance. Further
it has been evaluated that there are different typed of factors that are impacting upon entity
objectives and are influencing overall profitability. In this, executives of company by
undertaking advantage of various range of motivational theories and techniques can enable
employees towards high performance through which overall profitability and productivity of
entity can be maximised. Team also plays essential role that facilitate organisation to ensure

coordination within workplace premises. With the help of effective team company can combine
skill, talent, knowledge and potential of different employees and can further utilize them in
fulfilment of entity objectives.

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