Organisational Behaviour: Impact of Organisational Culture and Leadership Style on Performance of Morrisons

The report covers the study of organizational behaviour, specifically the impact of organizational culture and leadership style on the performance of Morrisons. The report includes a deep understanding of Handy’s model of organizational culture, the leadership style followed at Morrisons, and primary research findings and discussion.

Organisational Behaviour

EXECUTIVE SUMMARY
The report will cover the study of organizational behaviour. The organizational culture is
the way people interacts to each other within the organization. Report will cover the
organizational culture types using the Handy’s model. Organizational culture at Morrisons will
be explained using this model. The importance of leadership style over the performance of the
organization is covered. The report will perform a primary research for better understanding of
the effect of organizational culture and leadership style.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Organizational Culture.................................................................................................................4
Leadership Style..........................................................................................................................5
Primary Research Findings and Discussion................................................................................7
CONCLUSION..............................................................................................................................12
RECOMMENDATIONS...............................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Organizational behaviour is a term used to refer to the study in academics in relation to
the way people interact with each other in groups. Morrisons is a United Nation’s based retailing
company. It is country’s 4th largest chain of supermarkets. Organizational culture is the way by
which working pattern of an organization is formed. The report will include a deep
understanding of Handy’s model of organizational culture. Leadership is defined as the ability of
an organization’s management by which it inspires its workforce. The leadership style followed
at Morrisons will be highlighted. Further this report will outline and discuss the findings of
primary research. Lastly the report will include the recommendations for the company.
MAIN BODY
Organizational Culture
Organizational culture comprises of all the values, beliefs, processes and expectations
that initiates and acts as guiding base for the roles of employees working in a company. The
existence of appropriate organizational cultures ensures positive behaviour in the employees. A
good organizational culture is significant for an organization as it provides a way for employees
to interact with the people they contact at their workplace (Hiršová, Komárková and Pirožek,
2018). It promotes healthy competition within the organization. In has a significant impact on
brand image in long run.
Charles Handy was a popular philosopher. Organizational culture was his area of
specialization. He gave a theory for the organizational culture and named it as Handy’s Model.
Handy’s Model bifurcates organizational culture into four types (Charles Handy Model of
Organization Culture, 2022):
POWER: The first type of organizational culture in Handy’s model is known as power.
In power culture the power within the organization depends on few people. Only few people
within the organization holds the authority to take all the decisions. They are given with special
privileges. Responsibilities are delegated to others by these few individuals of the organization.
In this form of culture, the subordinates are bound to follow the instructions by the superior.
TASK CULTURE: The next form of organizational culture is task culture. Goals and
objective that an organization desires to achieve are break down into tasks that are to be achieved
by the teams formed within it. The teams are formed as per the task that are to be performance.
The individuals sharing common interests and having specialization in common field are
grouped together in a common team (Intezari and McKenna, 2018). This culture gives each of

the team member the opportunity to contribute an d bring innovations in the workings of the
particular team they are part of.
PERSON CULTURE: The third division of organizational culture as per the Handy’s
model is person culture. This type of culture exists within the organizations in which employees
think their importance over the importance of th e organization. There is close collection of the
workers within the organization with themselves and are disconnected from the objectives,
mission and vison of the company they work for. Following this type of culture employees
never get attached with the organization, their only motive is to earn money from it. This type of
culture in organization results in making the organization suffer.
ROLE CULTURE: The role culture is the last type in this model. The organizational
culture in role culture segregates the responsibility to an employee based on the field of his
specialization, educational background and areas of interest he holds. Employees take decision
for what they can do best and willingly take up challenges (Solanki, 2019). The ownership of the
role of an individual is with oneself and hence the individual is responsible for the outcomes of
decisions that he takes.
The organizational culture at Morrisons is best described by the second kind of
organizational culture as per the Handy’s organizational culture model. Task culture is the type
of organizational culture followed by Morrisons. The company divides the objectives of the
company and make dedicated teams of employees with common interest, specialization and
capabilities for better achievement of the objectives of the organization.
Leadership Style
The process by which the managers direct, and guide or influence the behaviour of the
employees in order to effectively accomplish the goals and objectives of the company is called
by the term leadership. There exists a number of ways by which the leadership is practiced by the
management of the company. Each way is known as a particular style of leadership. The type of
leadership style followed within the organization is vital for the performance of the organization.
Effective and efficient leadership style is important for initiating action by the employees.
Effective leadership motivates the employees working within the organization. Leaders create
confidence within the individuals by acting as their guiding angle. Through effective leadership
style managers aim at building appropriate work environment that supports the goals of the
organization (Cummings and et.al., 2018). Coordination is ensured with the leadership in the

efforts made by the employees within the company. Leadership is responsible for inducing
changes that are essential for survival and upward growth graph of the organizational
performance. Creation of successor is ensured through leadership.
Autocratic or Authoritarian Leadership Style: In this leadership style decisions are
taken by the leaders without considering the views or consulting the team members. Leaders do
not seek approval or participation by the members. This leads to dissatisfaction among the
employees from their job and low morale in them. This type of leadership style is best suited in
times of crises.
Affiliative Leadership Style: Leaders following this leadership style puts efforts to create
good relation with their team members. The bond of leaders with the team members is maximum
in this type of leadership style. Profits are at the second priority of the leader. People are at the
top priority of the managers in this type of leadership style (Al Khajeh, 2018). This leadership
style is most likely to be followed in the times of increased stress level among the employees.
The leaders seek to motivate and boost the morale of their team members.
Participative or Democratic Leadership Style: The importance is given to the level of
knowledge, competence and skills of the members in the team. Leaders tends to build their team
constantly by a process of asking input from their subordinates. Leaders in participative or
democratic leader ship style ensures that each individual in a team gets the opportunity and
appropriate resources and environment to make them give their best. Leaders listen to the issues
or concerns of their team members. Leaders give more authority to the employees with the view
point of creating competent workforce for filling the future senior posts.
Laissez-Faire or Delegative Leadership Style: The terminology laissez – faire is from
French language translated in English as let them do. Team members are given more authority to
do the tasks by the leaders. Leaders trust their subordinates in the tasks that they are supposed to
do. There is low level of interference by the leaders. The style is more likely to exist in newly set
up organizations (Sousa and Rocha, 2019). The employees are more empowered in this type of
leadership style; this limits their growth. Also the organizational chances to experience growth
through effectively capturing the growth opportunities are minimal.
Transactional Leadership Style: The area of main concern of leaders as per the
transactional leadership style is the work that the employees do. This type of leadership is
commonly seen in the sales teams where the salespersons are given targets by their leaders to be

achieved. The members meeting the targets successfully are rewarded by the leader through
giving of bonus. There is no overlapping of efforts and chances of conflicts and wasteful efforts
arising from overlapping are eliminated as the clear roles and responsibilities are defined by the
leader.
Transformational Leadership Style: Transformational leadership style is where the
leaders keep their focus over transforming the team members. Team members are constantly
developed by the leader by giving them challenging tasks and stretch their potential. The leaders
are great communicators and connects to employees on deep and emotional level.
The leadership style followed at Morrisons is transformational leadership style. This
leadership style helps the company to create the increased level of competency in its employees.
Primary Research Findings and Discussion
The primary research is done by noting the views of ten employees of one of the
supermarket of Morrisons. The questionnaire of the primary research is based on the
organizational culture and leadership style of the company. The research was based on the
consent of the respondents.
Theme 1: Task Culture is most preferred by management at Morrisons
Particular Responses Percentag
e
Response
Power
Culture
2 20.00%
Task
Culture
6 60.00%
Person
Culture
0 0.00%
Role
Culture
2 20.00%
Total 10 100.00%

The above chart shows in percentage the reponse of the ten repondents. 20 percent of the
respondants believe that the organizational cuture that is followed by the Morrisons is power
culture. Majority of the audience is in the response of the task culture. 60 percent of the audience
says that the organizational culture that is followed by the company is task culture. Person
culture is believed to be non preffered by the management of the company according to all the
respondants top whom the questions were asked. Role culture got 20 percent of the auidience. In
support of these findings Shuju and Shijun (2022) says that the task culture is the most important
form of the organizational culture. Task culture supports the organization in achieving its goals
most effectievely. As the teams are prepared on the basis of the task that has to be performed and
as per the talents and skills of the team members the goals of the organization are achieved.
Theme 2: Power Culture affects the employee motivation and morale
Particular Responses Percentag
e
Response
Power
Culture
8 80.00%
Task
Culture
1 10.00%
Person
Culture
0 0.00%
Role
Culture
1 10.00%
Total 10 100.00%

The above chart depicts that the maximum number of the respondents supports that
power culture is the type of organizational culture that affects the satisfaction levels and morale
of the employees working within the organization. The person culture has got zero support as
this culture is believed to exists in the situation where the employees give more importance to
themselves. In the support of this Gebauer and et.al. (2020) states that the person culture gives
utmost level of satisfaction arriving from the job role to the employees but adversely effects the
performance of the company in long run. Task culture and role culture got 10 percent votes each.
The maximum support was seen for the option a that is power culture. In the views of Goedde,
(2018) power culture effects the motivation levels in the employees adversely as the employees
are expected to work as per the decisions of the management about considering the viewpoints of
them.
Theme 3: Autocratic leadership style supports the organization in handling performance in crisis
Particular Responses Percentag
e
Response
Transactional 1 10.00%
Democratic 1 10.00%
Autocratic 8 80.00%
Affiliative 0 0.00%
Total 10 100.00%

The chart represents in percentage the responses of the audience in relation to the
leadership style that is best suited for the situation of crisis for example pandemic time. 80
percent of the audience believes that the organization works best and responds to the changes of
the dynamic business environment by following the autocratic leadership style. In the support of
this Hogg (2021) says that the autocratic leadership style is best during the situation of
emergency because such situation requires instant managerial response from the managers.
Quick decision making supports the company to survive effectively in the situation of crises.
Delayed decision making impose the risk over the organization to lose its competitive edge in the
market. Transactional leadership style got 10 percent favour. In transactional leadership the
leaders constantly focus on building the team members, existence of more competent workforce
is more beneficial for the organization in the situation of crises.
Theme 4: Transformational leadership style is followed at Morrisons
Particular Responses Percentag
e
Response
Autocratic 1 10.00%
Transformational 8 80.00%
Participative 1 10.00%
Delegative 0 0.00%
Total 10 100.00%

The above chart shows the responses by the respondents on the type of leadership style
that the Morrisons follow. Eighty percent of the audience supports that the leadership style of
Morrisons is transformational. In the support of this Eliyana and Ma’arif (2019) says that
transformational leadership style is preferred by the management because of the creation of more
developed workforce that the leadership enable the leaders to create. Participative leadership
style and Autocratic leadership style on the other hand got 10 percent support.
Theme 5: There is high degree of impact of organizational culture and leadership style over the
performance of the company
Particular Responses Percentag
e
Response
High
Degree
8 80.00%
Moderate
Degree
1 10.00%
Low
Degree
1 10.00%
Total 10 100.00%

The above chart shows the reponses of the audience in relation to their viewpoints
regarding the impact of organizational culture and leadership style over the performance of the
company. The eighty percent of the total reponses are in the favour that there is high degree of
impact of organizational culture and leadership style over the performance of the company. This
can be supported by the arguments given by the Meng and Berger (2019) on impact of
organizational culture over the performance. The culture that motives the employees supports the
growth and progress of the company. As per the views of the Guterresa, Armanu, and Rofiaty
(2020) leadership style has its great importance over the job satisfaction levels and employees
retaining rates of the organization. Howere the moderate and low degree of options got 10
percent vote each.
CONCLUSION
Based on this report it has been cleared that organizational behaviour is the study of
behaviour of people interactions. The report has discussed the meaning of organizational culture
and meaning. Morrisons is a UK based retailing company that follows task culture. It has been
concluded that the task culture is used in organizations where the objectives that the organization
aims to achieve are divided into tasks to be performed by the teams. The report has concluded
that leadership styles of the organizations are closely linked the performance of the business
entity. The leadership style followed at Morrisons is transformational leadership. The report has
also done a primary research on the topics concerned. The findings of the research have been
discussed in the report.

RECOMMENDATIONS
On the basis of the study it is recommended for the company to select the organizational
culture based on the impact it have over its employees. The organizational culture is closely
linked to the employee motivation, morale and overall productivity of the company. The best
suited organizational culture for the company is task culture. Company can effectively
implement the task culture through dividing its objectives into small tasks. These tasks can be
accomplished by formulation of teams of members having common areas of interest. This will
ensure that the performance of the organization improves constantly.
The leadership style that is recommended for the company is transactional leadership
style. Company can give targets to each team. This will motivate each team in the company to
effectively achieve the tasks assigned to them. It will stimulate healthy competition within the
organization.

REFERENCES
Books and Journals
Al Khajeh, E. H., 2018. Impact of leadership styles on organizational performance. Journal of
Human Resources Management Research, 2018, pp.1-10.
Cummings, G. G. and et.al., 2018. Leadership styles and outcome patterns for the nursing
workforce and work environment: A systematic review. International journal of nursing
studies. 85. pp.19-60.
Eliyana, A. and Ma’arif, S., 2019. Job satisfaction and organizational commitment effect in the
transformational leadership towards employee performance. European Research on
Management and Business Economics. 25(3). pp.144-150.
Gebauer, J. E. and et.al., 2020. The well-being benefits of person-culture match are contingent
on basic personality traits. Psychological science. 31(10). pp.1283-1293.
Goedde, P., 2018. Power, Culture, and the Rise of Transnational History in the United
States. The International History Review. 40(3). pp.592-608.
Guterresa, L. F. D. C., Armanu, A. and Rofiaty, R., 2020. The role of work motivation as a
mediator on the influence of education-training and leadership style on employee
performance. Management Science Letters. 10(7). pp.1497-1504.
Hiršová, M., Komárková, L. and Pirožek, P., 2018. The prediction of financial performance in
dependence on the type of organisational culture. Trends Economics and
Management. 12(32). pp.63-74.
Hogg, M. A., 2021. Uncertain self in a changing world: A foundation for radicalisation,
populism, and autocratic leadership. European Review of Social Psychology. 32(2).
pp.235-268.
Intezari, A. and McKenna, B., 2018. Creating organisational culture. Leadership: Regional and
Global Perspectives. 160. pp.160-189.
Meng, J. and Berger, B.K., 2019. The impact of organizational culture and leadership
performance on PR professionals’ job satisfaction: Testing the joint mediating effects of
engagement and trust. Public Relations Review. 45(1). pp.64-75.
Shuju, Z. H. O. U. and Shijun, L. I., 2022. Research on the Application of Task-Driven Teaching
Method in Computer Culture Foundation Teaching. The Theory and Practice of
Innovation and Enntrepreneurship. 5(2). p.172.
Solanki, K., 2019. To what extent does Amazon. Com, Inc.’s success accredited to its
organizational culture and ND Jeff Bezos’s leadership style. Archives of Business
Research. 7(11). pp.21-40.
Sousa, M. J. and Rocha, Á., 2019. Leadership styles and skills developed through game-based
learning. Journal of Business Research. 94. pp.360-366.
Online
Charles Handy Model of Organization Culture. 2022. [Online]. Available through:
<https://www.managementstudyguide.com/charles-handy-model.htm>
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APPENDICES
Q 1. What type of organizational culture is most preferred by the management at Morrisons?
a) Power Culture
b) Task Culture
c) Person Culture
d) Role Culture
Q 2. Which organizational culture adversely affects the employee motivation and morale?
a) Power Culture
b) Task Culture
c) Person Culture
d) Role Culture
Q 3. Which leadership style is more suited at the time of crisis?
a) Transactional
b) Democratic
c) Autocratic
d) Affiliative
Q 4. The leadership style is followed at Morrisons?
a) Autocratic
b) Transformational
c) Participative
d) Delegative
Q 5. The extent to which the organizational culture and leadership style affect the performance of
the company?
a) High degree
b) Moderate degree
c) Low degree
2