Organisational Behaviour in Unilever

Organisational
Behaviour

Table of Contents

INTRODUCTION
Organisational behaviour is the study and application of knowledge about understanding,
predicting and influencing behaviour of individuals in an organisation. Organisational behaviour
includes detailed analysis of behaviour of an individual in an organisation and with their
colleagues and behaviour of organisations themselves (Arnold and et. al., 2015). This is
important to be studied so that employee satisfaction and organisational goals can be
accomplished efficaciously. For understanding this report in detail, Unilever is taken which is a
brand dealing in household products since 1929 and was founded by merger of soap makers
Lever Brothers and Margarine Unie. Its business deals in a variety of sectors with more than 400
brands, including food products, home care and personal care products. In this report the
influence of culture, politics and power on behaviour of individuals in an organisation is
explained which will help in making an immediate and positive contribution in the workplace.
TASK 1
P1
An organisation's culture, politics and power determine its rate of growth, stability and
continuous success in market. Power and politics are related to management and leadership of
the organisation and helps in managing behaviour of individuals and team so that their
performance can be made efficient to achieve organisational objectives (Bester, Stander and Van
Zyl, 2015).
Influence of organisational culture :
Organisational culture includes values and behaviours that contribute in making the
social and psychological surroundings of an organisation. It represents the aggregate values,
beliefs and principles of all the organisational members. Work cultures that exist in organisations
can be understood by Handy's cultural typology model which is described as follows: Power culture: This culture exists in small start-ups or new businesses where the power
is centralised with the founder who is a charismatic leader. Employees are loyal to the
leader and organisation is highly flexible. Role culture : This culture is highly job-oriented and usually exists in government
organisations. Strict rules and regulations, obligations, agreements and procedures are
followed. Roles of individuals determines their powers (Burrell and Morgan, 2017).

 Task culture: Many project based organisations have this culture and is mainly result
oriented. Employees are professional in their work with a lot of experience and are
oriented towards solving problems. Expertise and flexibility is the most important
character and coordination among the members depend on task or project requirements.
 Person culture: This culture is found in professional organisations where employees
have complete independence, are highly educated and work with their own expertise.
Law firms for example have this type of culture.
Unilever follows Task culture where emphasis on employee output is important to ensure high
performance of human resources.
Influence of organisational politics :
Organisational politics means use of informal strategies and power to obtain preferred
outcomes. Managers of Unilever need to take appropriate decisions so as to control and influence
people in the company so that objectives can be achieved and a cooperative environment can be
maintained. Influence of organisational politics on individual and team behaviour are described
below: Decrease in overall productivity: This is because people waste much of their time on
criticizing their co-workers and become more involved in gossiping about issues that are
not related to work. This reduces their concentration on work and employees fail to
achieve targets on time (Chen, and Wong, 2015). Spoils the ambience: Politics lead to discouraging environment at workplace and
deteriorates decorum among individuals.
 Demotivated employees: Employees feel demotivated when others get the credit for work
they have worked hard on due to mere politics. This leads to serious employees losing
interest in their work.
Influence of organisational power:
Power is the capability of managers to modify the conduct of individuals and teams in
order to achieve assigned tasks on time. Power is the ability of changing other's behaviour even
if they are unwilling to do so. Following types of powers can exist in an organisation: Reward power: This is the power to give appreciation and value to the employees based
on their performance. In Unilever this power is exercised by departmental managers who

distributes rewards to best performing employees after getting approval from Board of
directors. This motivates employees to increase their efficiency (Coccia, 2015). Coercive power : It is the ability of a person to force someone into doing something and
punishing them if the said work is not done. These powers are rarely used by
management and are exercised by the highest authorities at Unilever. For e.g. terminating
the services of employees on behalf of their misconduct. Legitimate power : This power is given to a person based on their position. Managers of
Unilever exercise these powers to control and influence the work of employees. Expert power : It is the power that is exercised by a person due to superior knowledge
and skills regarding a specific task. This power is usually exhibited by CEO of Unilever
who has expertise in his field and can manage the work environment efficiently to
achieve the desired results. Referent power: It is the power of influential people whose trades and attributes attract
people so that they can be influenced in a manner so as to achieve specific goals. In
Unilever this power concentrates in the hands of top performing employees who can be
referred so that other employees can be inspired to become like them (Crane, 2017).
Impact of power, culture and politics on individual and team behaviour and performance
Basis Influence on Individual behaviour Influence on team behaviour
Power Positive power in an organisation
encourages efficiency, builds their
confidence and motivates them to work
harder. Quality of work improves and
organisational objectives are well met
within time.
Positive power helps in better
coordination among the team members
and better problem-solving capabilities.
This helps in achieving targets by the
team within time and conflicts between
them can be well managed.
Culture Organisational culture impacts
motivation and promotes individual
learning, this helps in building
confidence among individuals to adapt
better with the culture and use their skills
efficiently.
Team behaviour is affected by
organisational culture as it affects
communication, group decision making
and solving conflicts. Teams can be better
managed with positive organisational
culture.

Politics Politics lowers the output of individuals
and affects the productivity of the
organisation. Individuals who play
politics at the workplace pay less
attention to their work hence their work
quality decreases (Drury, 2018).
Team work also gets affected with politics
at workplace. The diverse ideas of team
get dis balanced which affects their
decision-making capacity and the purpose
of team does not get achieved.
M1
The culture, politics and power in an organisation has both positive and negative impact
on the behaviour and performance of an individual and team.
Basis Positive Impact Negative Impact
Culture Encourages collaboration and quality
work from the employees and increases
coordination in workplace.
Workers become restricted in the strict
rules and regulations of the organisational
culture.
Politics Better distribution of tasks at low-levels,
creates competition and motivates new
and innovative ideas.
Affects concentration as people become
more interested in gossips, increases stress
and tensions among co-workers.
Power Employees can be pushed to work harder
and achieve targets within time.
Employees have to go extra mile in their
work to achieve organisational targets.
TASK 2
P2
Motivation is an important aspect which helps in achieving organisational goals within
the stipulated time frame. It has a positive impact on the overall performance of the employees as
their confidence is boosted by the way of motivation at every level and they are encouraged to
improve their efficiency (Elsmore, 2017).
Content theories of motivation: This defines the factors which cause change in needs
and wants of employees with time. It deals with individual needs and wants that motivates
people in doing some work. Following content theories will help management at Unilever to

analyse factors affecting motivation of employees to encourage them in achieving organisational
goals :
 Maslow's hierarchy of needs : This theory was given by American psychologist
Abraham Maslow. He said that there is a hierarchy of needs that consisting of five levels
which progresses from lower level to upper level (Famakin and Abisuga, 2016). As the
needs at each level are sufficiently satisfied, employee is motivated to work progressively
towards satisfying next level needs in the hierarchy.
Illustration 1: The Content Theories of Motivation. 2019
Source The Content Theories of Motivation, 2019
1. Psychological needs : It includes basic necessities of a human being i.e. food, water,
clothing, shelter etc. which can be done by providing employees with basic pay so as to
satisfy their basic needs.
2. Safety needs : These needs are related to job security, health and safety in the working
environment. For this basic health facilities and good working environment can help to
improve their performance and keep them motivated.
3. Social needs : These involves interactions, belongingness, companionship etc. of the
employees at the workplace. For this various training and development programmes can
help in building friendly work culture (Fisher and Royster, 2016).
4. Esteem needs : It involves recognition and appreciation of employees by rewarding them
for their work which motivates them to work more efficiently.5. Self actualization needs : These are the needs of a person for personal growth and
development. Self-actualized people are highly independent and satisfied.

 McClellands need for achievement, affiliation and power : According to this theory,
each individual has one of the three main driving motivators : the need for affiliation,
achievement or power. These motivators are inherent and develops in an individual
through culture and life experiences (Herzberg, 2017).
1. Need for power : People with higher power needs tend to be more attracted towards high-
level positions in an organisation so as to be able to influence and control others.
2. Need for affiliation : People who have affiliation needs like to maintain good social
relationships and try to avoid the pain of rejection by the society.
3. Need for achievement : High achievers tend to take moderate risks, achieve goals as fast
as possible and are ready to deal with negative feedbacks for their work so that quick
improvements can be made.
Process theories of motivation : These theories are related to psychology and behaviour
of a person that motivates them to perform a given task within time. Following process theories
will help management at Unilever to analyse factors affecting motivation of employees: The Expectancy Theory: According to Yale business professor Victor Vroom,
motivation is the result of conscious choices made by a person that maximizes pleasure or
minimizes pain. The expectancy of great satisfaction after the completion of a specific
task motivates the person to make efforts in the direction of achievement of the task. The
rewards that will be achieved after completion of work motivates the person to continue
working hard (Karnatovskaia and et. al.,2015).
 The Equity Theory : This theory says that employees can feel motivated by fair and
equal treatment i.e. the employees are rewarded equitably for the work done by them.
The ratio of inputs or contributions given by employees to the outcomes that result from
these contributions in an organisation can help in maintaining equity in the workplace for
the employees to feel encouraged (King, 2016).
The managers of Unilever can use the above mentioned theories of motivation to effectively
encourage its workers by understanding their driving factors and motivating them in the direction
of achieving goals and objectives of the company.
M2
In order to accomplish a specified target by the employees within a time-frame, it is
important for managers to influence the behaviour of the individuals associated with the task. For

this various behavioural motivational theories, concepts and models are applied so that people
can be made to act in a certain goal-oriented direction which helps in achieving organisational
goals. Maslow's hierarchy of needs can help managers to evaluate the needs of its employees that
should be fulfilled to keep them motivated to work efficiently. The expectancy theory can help in
understanding about the expectations of employees so that they are motivated to increase
performance (Meslec and Curşeu, 2015).
D1
Organisational culture plays an important role in determining actual feeling of people
about their work, levels of motivation to do that work, their commitment towards its efficient
completion and ultimately the level of job satisfaction. Politics, power, motivation and culture
collectively should ensure employee motivation which influences their performance in achieving
the goals and objectives of the organisation within time.
Recommendations:
 Performance based appraisal can motivate employees in improving their performance and
achieving targets on time.
 Training and development activities to integrate employees and build a friendly
environment which enhances their performance.
 Reward power can help in managing the employees in a better way.
 By developing positive politics in the organisation so that competition among the
employees increases to achieve organisational goals in better manner.
TASK 3
P3
Every business is facing a problems of huge competition by their rival’s firms. In order to
compete with the firm, the business seeks to have effective team members who can perform the
task and can be termed as an assets for the business. Having an effective team member will
enable the business of Unilever with certain amount of opportunities for their growth and
development (Nicholls, 2017). Each business has to undergo a problem of effective team
member and ineffective team member. These concepts of both the teams can be understood
better by the below mentioned description:
Effective Ineffective

Effective team members are those who are
more work oriented and give their best so that
the desired work can be completed within the
given time frame. In addition to this the team
member within the effective team always try to
complete the task in an effective way so that
the hurdles can be minimised and the goals can
be achieved.
Ineffective team member are those who
always seeks to fulfil their wish on prior notice
rather than considering the organisational one.
These does not focuses on the adaptation of the
dynamics and alterations due to which the
goals can be achieve on time and the business
have to deal with the problem of decreased
productivity and profitability.
Belbin theory:
Belbin theory states that each individual within the business fosters a different style and a
pattern to behave in particular situation (Peters, 2015). Belbin have given different role for the
team which are mentioned beneath:
Shaper: In this the Business of Unilever must focus on hiring the person have the
capability to take the business to the next level by supporting and guiding their employees and
should also ensure that the person whom they are appointing is capable enough to shape the
business towards growth.
Implementer: In this the manager of the Unilever must ensure that all the pre decided
strategies and plans for the business are implemented in the best possible manner so that the
overall business productivity can be enhanced.
Complete finisher: The business manager of Unilever must assure that the task and
strategies which have implemented give a complete result by resolving all those hurdles and
conflicts which arises.
Coordinators: The manager of the Unilever is required to motivate their members to
work within the team by establishing proper coordination so that objectives can be reached
collectively.
Team member: To achieve the goals with an effective way and procedure the
relationship between the team and its member must be exercise so that the objective can be
gained with the collectivism.
Resource investigator: The manager of the Unilever must assure that the person whom
they have selected have a sufficient knowledge regarding how the investigation should be

perform and what are the risk which a business has to bear in the near future. So that all the
corrective measure can be determined in an easier way (Robertson, 2016).
Plant: A planter is the person within the business who always come up with the creative
and innovative ideas to operate the business so that all they can easily beat their rival firm and
can have an advantage of the competition.
Monitor Evaluator: A person whom the manager of the Unilever have hired must be a
good evaluator so that they can easily identify all the advantages and disadvantages which are
associated with the new and creatives way of operating the business. An evaluation must assure
that they identify all the risk in advance so that the business can take precautions in advance and
can operate their operation in the best possible manner.
Specialist: Business must focus on the selection of the specialist so that the business can
easily deals with all the tough situation and uncertainties on the immediate basis so that the
specialist can lead the business with higher position and profitability in the market place.
M3
Belbin theory is one of the most efficient team and group development theory as it helps
the employees in understanding their roles in a team. This can help in developing strengths and
managing weaknesses to achieve unified objectives of a team. If team members have similar
team-work strengths, they may tend to complete their tasks and responsibilities collectively by
working together as a unit (Walker and Aritz, 2015). Through this theory a dynamic cooperation
can be ensured among the team members and they can together put efforts to achieve
organisational goals and objectives within time. This way all the members of the team can
contribute towards profitability of the organisation.
TASK 4
P4
Path goal theory: This theory helps in determining the leadership style or behaviour that
can be followed after analysing what will best suit employees and work environment and help in
achieving organisational motives. The main aim is to increase employee motivation,
empowerment and satisfaction so they become productive members of the organisation. It helps
in maximizing employee output. This theory can help Unilever in analysing the capabilities of
employees to perform a specific work or solve certain problems. This theory helps in developing

a clear and easy path that needs to be followed by employees for achieving the goals (Zhao,
Hwang and Lee, 2016).
Characteristics of path goal theory -
Sub-ordinate's characteristics: These are the personal characteristics of subordinates such
as their abilities and focus of control which cannot be changed by managers but can be managed
by adopting appropriate leading approach. If employees think they are incapable then this
leadership style is preferable. If employees are focused and have control on their work then
participative leadership is preferable.
Environmental characteristics of workplace : Structure of task and people involved in the
group are the two environmental factors. The leaders provide support to work groups and lead
them through appreciate leadership style. When the task structure is low, directive leadership is
more effective.
Leadership styles : Various leadership styles can be used by managers to guide, control
and monitor the workers in an organisation so that organisational objectives are achieved in an
efficient manner. Some leadership styles according to path goal theory are discussed below :
 Directive leadership : In this leader directs the subordinates, gives them guidance and
direction, schedules work according to expectations, divides roles and responsibilities
among each worker. Rewards are given based on their performance and ambiguity of the
roles to be performed decreases. Unilever can use this style when task is complex and
unstructured and the employees are inexperienced.
 Participative leadership : A participative leader always takes into consideration
suggestions of their sub-ordinates and allows them to participate in decision-making.
Unilever can follow this style when the employees are experienced and their advice will
help in improving the way a task is done.
 Supportive leadership: A supportive leader is friendly, can be easily approached and
treats all the members equally. Employee self-esteem can be increased with making the
job engrossing. This approach can be used by Unilever when the work is stressful, boring
or hazardous.
 Achievement-oriented leadership: Under this style, leader sets challenging goals which
gets the work done in an intellectual manner and also develops an individual. High

standards are demonstrated and expected. Unilever can use this when the task is complex
and leaders have high faith in the capabilities of the employees.
M4
The concepts and philosophies of organisational behaviour that are followed in an
organisation can help in building relationships with employees which helps in providing training,
offering feedbacks that can help in growing and developing an individual so that their
performance can be made efficient to achieve organisational goals. Motivating employees
through monitoring progress and rewarding their achievements. It also helps in managing a
diverse workforce and resolving conflicts. However, a restrictive environment build in an
organisation and employees are made to work and achieve goals and objectives even if they are
not capable of doing so.
D2
Team development theories influence behaviour in the workplace as the individuals in a
team have different set of skills, comes from different backgrounds and have different
expectations from their jobs. This influences the way in which they pursue doing their work. In a
team everyone has to coordinate and work together in harmony so that organisational goals can
be achieved in time and conflicts do not lead to demotivation of the members that will finally
affect their ability and productivity to work efficiently. So the teams need to be monitored using
appropriate leadership style by the managers so that unity can be ensured and employees can be
motivated to work in a particular direction to achieve the objectives of organisation.
CONCLUSION
From the above report it can be concluded that organisational behaviour affects the
growth and development of an organisation. It is affected by the behaviour of employees towards
achieving organisational goals and their motivating forces that leads them to work efficiently and
improve their performance. Managers need to first analyse the expectations of employees and
devise leadership styles to direct and monitor them in a way their productivity can be enhanced
and profitability of organisation can be increased. Belbin model can be used to make team
effective and path goal theory can be used to guide and lead people.

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