Influence of Organisational Culture on Behaviour and Performance

This report discusses the influence of organisational culture on employees and team behaviour and performance. It includes different motivational techniques and theories, and their application on H & M. Concepts of effective and ineffective team are also explained in this report.

Submission Front Sheet
Programme Higher National Diploma in Business
Unit Title and Number: Organisational Behaviour (Unit 12)
Unit RQF level/Code
Credit Value 15
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Cohort Name Jan 19A & B
Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
............................................................................................................................................................
Influence of organisation's culture, politics and power influence individual and team
behaviour and performance.........................................................................................................4
Content and Process theories of motivation for achieving goals and objectives.......................7
Learner’s statement of authenticity
I certify that the work submitted for this project is my own. Where the work of others has been
used to support my work then credit has been acknowledged. I have identified and
acknowledged all sources used in this project and have referenced according to the Harvard
referencing system. I have read and understood the Plagiarism and Collusion section provided
with the project brief and understood the consequences of plagiarising.
Signature Date: 16/05/2020
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Effective team vs. ineffective team:..........................................................................................9
Concept and philosophies of organisational behaviour applied within given situation ..........11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Organisational behaviour refers to study of human behaviour in working environment.
Organisational behaviour includes analysis of internal and external factors which have an effect
on productivity of employees (Alleyne, 2016). A number of factors affect organisational
behaviour like environment, technology and people. Present case study is conducted on H & M
which stands for Hennes & Mauritz AB. It is a Sweden based multinational clothing company. It
has a wide range of clothing for men, women and children. The following report discusses
influence of organisational culture on employees and team. It includes different motivational
techniques and theories, and their application on H & M. Concepts of effective and ineffective
team are also explained in this report.
Influence of organisation's culture, politics and power influence individual and team behaviour
and performance
Behaviour and performance are different in each personality and it depicts the traits of
particular individual. In organisation, they reflect both positive as well as negative impact on
workforce and environment (Alvesson and Spicer, 2016) . A strong relationship and trust is build
when behaviour as well as performance are managed properly by entities. H&M is diversified
entity, so it has a greater impact on its behaviour as well as performance. Firm culture, politics
and power affect behaviour and performance at deep level which are stated below-
Organisation culture- Culture is crucial for every human being. Organisation culture
refers to beliefs, values and morals which depict how to behave in working environment. Culture
are different in traits from another organisation. It comprises of expectations and philosophy
which are to be followed within the firm. According to Charles Handy theory different types of
culture are adopted by organisation according to their work environment. Types of culture such
as power, task, person and role which are discussed below-
Positive effect- Employees works with more effort and positive mind when optimistic work
environment is present.
Negative effect- If organisation culture is not positive than it might demotivates the morale of
subordinates.
Power culture- Power culture refers to when distribution of power and authority has few
owners. This type of culture reflects strictness and discipline in entities. In this, subordinates did

not enjoy freedom of expression; cannot express their ideas and decisions or thoughts within the
group as well as firm. Power culture is beneficial where there is a need of control amongst the
organisation. H&M did not use this power as employees are well organised towards their work.
Positive impact- This culture gives self-confidence to subordinates to work with more
responsibility and difficult situation.
Negative impact- Wrong use of power causes disputes and problems between the work
environments.
Task Culture- According to Handy theory task culture refers to when firm gives task to
complete within the specified time. In this culture, employee get motivated and their morale
increases. It is considered as most flexible culture because subordinates enjoy freedom of
expression. In relevance with H&M, Subordinates get task on daily and monthly basis depending
upon employee capability and skills. This task culture depicts positive workforce.
Person Culture- Person culture refers to in which distribution of power lies in hands of
particular individual or subordinates and they have a perception that they are most crucial asset
of the company. This has a negative impact on organisation overall growth and development
process. This culture includes conflicts and negative thoughts amongst the management and
employees. In context to H&M, there are some employees in company who have this power, but
they know their line in that power so, this reduces conflicts in firm.
Positive- Individual becomes more responsible towards their work and roles.
Negative- Subordinates start develop negative attitude and try to increase their importance in
forcefully.
Role Culture- In this types of culture, power is distributed on basis of position access by
subordinates. This culture works in hierarchical form and formal structure. In this, power is
derived on basis on position and is managed and controlled by rules as well as regulations within
the firm. So, H&M focus on this role culture in positive and flexible way. Thus, in entity no one
can misuse this power according to their own needs. A proper observation is carried out when
distribution of power in organisation is needed.
Positive- Team and individual are able to analyse their work progress and performance level.
Negative- Employees develop negative thinking about the peers and superiors.
Importance of cultural differences awareness

It is important for the company to make effective strategies, plans and policies for
understanding the whole conception of cultural differences (Chen and Lai, 2014) .For instance,
people of various country behave in different manner in order to achieve goal of the organisation.
There are several cultural theories which is mentioned below:
Power Distance Index: It is the process in which the person who possess less power in
organisation expect as well as accept that power is apportioned unequally. In context of H & M,
the manager have a power to give order to its superiors without considering different factors of
the company.
Uncertainty Avoidance Index: It is essential for company to make better strategies,
plans and policies without considering uncertainty exist in organisation. Hereby, the manager of
H&M makes effective plans through ignoring uncertainty.
Collectivism vs Individualism:Herein, there are various countries who belief that
individual person can execute their work better than the group of persons. Thus, H&M need to
perform its work in group in order to attain pre-decided target.
Restraint vs Indulgence: Herein, the business conducts different activities that helps in
increasing involvement of employees in order to achieve objective of organisation. In context of
H&M , the supervisor emphasised on achieving future success of organisation.
Short Term vs Long term Orientation: There are both long term as well as short term
goal in the organisation which helps company in accelerating profitability of company. The
manager of H&M focus on achieving goal within stipulated period of time in order to sustain the
business.
Organisational Politics
This term is basically used for unwanted activities done by employees with their
colleagues. This can include bulling, making fun, biases etc. It affects the employees engagement
as well as performance results in reducing overall performance of the company. In context of H
&M, the supervisor emphasised on developing positive culture in organisation thus it assists in
expanding production as well as profitability of the company.
Positive- With use of politics, depth detail of every employee is known at depth.
Negative- It is mostly used as negative way by putting down the image of others and it creates
negative side effects amongst both team and individual.
Organisational Power

It is the ability of manager to give task to different individual in order to perform the
tasks. There are different kinds of power which is adopted by the H&M company that is
mentioned below:
Expert Power: This power comes from specialised knowledge and skills to take
challenges in the organisation. Hereby, the manager of H&M company user its power to achieve
goal and objectives in the organisation.
Positive- It helps both team and individual to enhance their knowledge and skills at larger scale.
Negative- It creates jealousy towards other person who is specialised in skills and knowledge.
This can affects the work of team as well as individual.
Reward Power: Herein, the manager gives rewards to employees for enhancing their
motivational level. The supervisor of H&M Company offer benefits and rewards to employees in
order to accelerate the performance of work.
Positive- It enhances the work efficiency of individual and team in effective way.
Negative- It enhances the expectations of employees or exceeds the limit.
Legitimate Power: In this power, the manger possesses right to issue order to individuals
in order to achieve target within a given time period. It helps the manager of H&M company use
this power to achieve its goal.
Positive effect- It helps both team and individual to become independent and understandable in
regard with their deadlines.
Negative- It develops the wrong attitude amongst the subordinates.
Referent Power: Herein, the supervisor of H&M give order to employees that helps in
accelerating skills and knowledge of employees towards work.
Positive- It increases the motivations amongst team members and individuals.
Negative- External force is required which sometimes is good for short period of time.
Recommendations in relation with employee turnover-
 The process is to be carried out with proper considerations and measures.
 Decision making is to be done in effective way with use of 360 degree method.
Organisational culture has an important part to play in various factors such as employee
turnover, motivation and team performance. Team leader in H&M uses task culture which helps
employee to be clear about work to be completed by them and time period in which they need to
do it. Leaders in H&M use information from politics in order to increase productivity of

employee. They motivate employees through informal networks. Reward power is foremost
strategy used by managers of H&M which helps them in retaining employees. In this way H&M
managers reduce employee turnover and motivate their team.
Content & Process theories of motivation for achieving goals and objectives
Motivation
Motivation is physiological factor which ignites actions to accomplish a task. It is
necessary for an organisation to keep their employees motivated. Motivated employees prove to
be good assets for a business (Cherry, 2017). Various motivational theories and technique have
been invented overtime to motivate human resources of an organisation. Many organisations
apply these theories in order to enhance the quality of work and improve employee satisfaction.
This also helps reducing employee turnover in an organisation. Motivational theories used by
respective organisation are:
Content Theory
Content theories of motivation focuses on need and aims of individuals. There a number of
content theories like Maslow's hierarchy of needs, learned needs theory, Manifest needs theory
etc. H&M uses Maslow's Hierarchy Need Theory in appropriate manner. In the absence of this
motivation theory it can have a negative impact on H& M performance as well as it will be
difficult for them to achieve their vision and mission. There will be increase in employee
turnover which might cause a negative environment at workplace. This theory consists of five
elements which describes the hierarchy of needs. These five categories of need are mentioned
below:
Physiological Needs- It includes satisfying basic needs for food, water, shelter, cloth, air etc.
Such needs have a great influence on human behaviour. Every employee of H&M is provided
with such need. It is not possible for an individual to survive without fulfilment of all these basic
needs.
Safety and Security needs- This need come second in hierarchy. Once the physiological needs
are fulfilled need for safety and security arises (Erbasi, 2017). This includes a secure surrounding
in workplace as well as after work, free from any threats from other individuals, good working
conditions etc. Satisfaction of this needs helps to reduce fear and anxiety in individuals. H&M
provides such secure environment to their employees. Also it takes care of their conveyance so
that employees are secure even after working hours.

Social Needs- This need refers to human desire for affection, love and belongingness. It is
important for an individual to be recognised in the society as well as in their organisation.
Family, friends, relative, work team etc. are all included in it (Osei , Osei-Kwame and Osei
Amaniampong, 2017) . H&M needs to make sure that there are groups formed in organisation
and people work in those groups. This helps to build good communication among employees and
a feeling of belongingness is developed in them.
Esteem Needs- This next need in hierarchy theory consists of self-respect and esteem of an
employee. These are indicated towards achievement, knowledge, competence and independence
of an employee. It is important for an employee to feel that they are a valuable asset for business.
Management at H&M appreciates employees for good work.
Self- Actualization- Self-Actualization need is last in this list of needs. This is a need which is
thought of to be never satisfied completely. It involves a need of self- fulfilment, to become
something more every day and to be everything that one is capable of becoming. H&M provides
challenging environment which helps an individual to understand their potential and worth.
Advantages- Maslow's theory takes into account human nature. The greed in human
nature is inborn; this is understood well by Maslow. Also this theory is universally applicable.
Disadvantages- It is difficult to measure human satisfaction, so it becomes difficult to
figure out when to move to next hierarchy. Also due to cultural differences this theory might be
difficult to apply in some cases.
Process Theory
Process theory includes process of through which motivation is achieved. Major process theories
are operant conditioning, equity, goal and expectancy (Nograšek and Vintar 2014) . H&m uses
Adam's equity theory which refers to balance between input of employees and output they
receive. These ensure that employees are motivated. In the absence of Adam theory, it will
difficult to analyse and examine the subordinates performance and work done by them. This will
have direct impact on turnover and achievement of selected Enterprise.
Input: Input refers to quantity and quality of work done by an employee. Energy, time,
hard work efforts etc., are utilized in it.
Effort: The work which an employee does carry out a task is called effort.

Skills: Skills are qualitative. It differs in different individuals. Experience and training
helps in acquisition of skills (Grufman, 2018).
Knowledge: Schools, training and interest in certain topics help in gaining knowledge to
an employee.
Experience: Knowledge is of no use without experience. Experience is said to be a
valuable characteristic.
Output: The result which is received after completion of a task is output. This includes
both monitory and non-monitory rewards.
Financial Reward: These includes wages, salaries, profit sharing etc. An employee gets
it in return of his services to business.
Immaterial Rewards: Immaterial rewards include challenges, responsibilities and
recognition.
Importance and effect of organisational culture-
 It helps in attracting employees towards the firm
 Increases employee motivation and morale in proper way.
Organisation culture is important because stability of the employees and business
depends upon culture that firm possess. Handy culture model is also crucial in organisation and
it also has deep impact on H& M subordinates team performance, personnel turnover as well as
motivation. Power culture of the firm affect the management at wider level. Because personnel
often has negative feeling about the superiors powers and it leads to decrease in motivation as
well as conflicts in team decrease the performance level of subordinates.
Equity Theory of motivation-
This theory states that individuals compare their inputs and received outputs while
working, they compare it with others and then take required measures to eliminate any equality.
Inputs can be time, energy, determination, skills etc., whereas outputs include praise, promotion,
salary, employee benefits etc. Comparisons are categorised into four types which are self-inside,
self-outside, other inside and other outside.
Advantages- It helps employees to know their worth. Employee’s exploitation can be
reduced with the help of this theory.
Disadvantages- Employees usually generate a feeling that they are treated unfairly.
Employees might misjudge their inputs which might result in dissatisfaction.

Motivation theory
Recommendations-
To improve the employee motivation in H&M, manager of the firm should conduct co-
curricular activities and schemes such as to earn bonus or incentives which will motivate them to
achieve the objective.
Turnover in the entity can be reduced by hiring the right personnel from the starting of
recruiting process.
The above recommendation has been provided because change is important in every firm
and to deal with uncertain activities it is important to use these recommendations.
VROOM expectancy
This theory is also adopted by entity and in the absence of this, it will be not possible for
managers of company to analyse the personnel perception and what factors can motivate them. It
can also cause negative sides of employee turnover.
Limitations-
 It gives wrong expectations to employees and their perception,
 Everything has to be clarified by the manager to subordinates so that they work
accordingly.
Recommendations-
 Before motivating employees brainstorming session is to be done for clear understanding.
 Employees need to motivated at every phase of process.
This motivation theory helps in analysing the effort and needs of an individual. It has been
explained below-
 Expectancy- Individual or say employee has perception that higher effort leads to
improves performance. In context to H& M, entity
 Instrumentally- This states that better performance results in positive outcome.
 Valence- In this, main focus is on importance of outcome that person has different from
each other.

H&M manages to create a balance between input and output of its employees. It is
necessary to reward the employees according to work done by them. This motivates them to do
their work efficiently and effectively.
Effective team vs. ineffective team:
A team is considered as group of people who work together to achieve common desired
goals. In this, coordination and cooperation are to be considered as important part of process.
Work is achieved in more efficient way when group of people work as a team. It is important for
an organisation to engage all of its employees in activities in order to attain effective outcomes
(Newman and et. al., 2014) . This helps in achieving goals of the organisation and
simultaneously increases employees performance level. Working in team helps an individual to
develop values such as loyalty, reliability, self-awareness, positivity, confident, communication
skills etc. Concepts of effective and ineffective team are mentioned below:
Effective Team: In such teams effective work is done by team members to achieve a
common goal. Sharing of roles in this team is done based on skills and experience of each
member.
Ineffective Team: In an ineffective team structure, members in a team do not
communicate efficiently which leads to disagreements and chaos in group. In this team members
do not actually understand goals of the organisation and put all their efforts to achieve individual
goals.
Different type of team:
Functional Team: In a functional team all the roles and responsibilities allotted to
members of team are similar. The members are supposed to inform to manager who have divided
work amongst them. Functional team are formed on the basis of functions of an organisation like
human resource, marketing, operations, finance etc.
Project Team: In a project team work allotted to members or a team differ from each
other. Team members are picked from different functions of organisation.
Task Force Team: In task force team small groups are formed to accomplish certain
projects or task. It is created for limited period of time (Kasemsap, 2014) . Such team exist for
short time span.

In context of H & M management of company uses functional team in retail stores. Task of
members in same team are also similar. There are different teams of cashier, salesman and
manager.
Comparison of Effective and Ineffective Team:
Basis Effective Team Ineffective Team
Description Effective Team clearly
mentions its goals and
objectives. They are also
aware about goals of
organisation (Waterson, 2018).
Every task they perform are
directed towards fulfilling
organisational goals along with
individual goals.
Ineffective team do not work
for a single objective. They
create a competitive
environment in organisation.
Each individual work towards
their own personal agenda
rather than working for
common organisational goal.
Powers Effective team shares power
with each member of its team.
Also rewards and incentives
are divided amongst team
members based up on their
contribution in team.
In an ineffective team power is
held with a single authority.
Also, division of incentives in
this team are unclear.
Communication Effective teams follow two-
way communication.
Ineffective team follows one-
way communication.
Leadership Style Leadership roles in effective
team are not specified. Each
member is authorized to take
lead maintaining consistency
in group.
The division of task and
responsibilities in such team is
not clear. Delegated form of
leadership is followed in this
team structure.
It becomes important for a business to make effective strategies for communication in its
organisational structure. Application of these strategies should be done in such a way that

employee engagement increases and maximum productivity can be attained. Effective team helps
managers to encourage their employees. Roles and responsibilities are divided without any
biases. This helps business to obtain maximum profitability. In context of H & M teams should
be made effective in order to reduce staff turnover at stored. If the staff is satisfied with team and
team leader the problem of staff turnover will reduce significantly.
Tuck-man leadership theory is a theory in which different aspects of team building are involved
such as storming, norming, forming, adjourning and performing.
 Forming- In this members and individuals are nervous about the culture of the
organisation. Leader and managers guide them about the work and environment of firm.
It makes an ineffective team because it is the phase of process in a team.
 Storming- Further comes the storming in which members start sharing ideas and
thoughts with each other. Leaders as well as managers start assigning task to every
member in the organisation. This develops the team further & it is is being still
considered as ineffective team.
 Norming- This is stage where conflicts are errors takes place. In this team members
strive for their motives within a firm. In this, team are being seen as effective as well as
ineffective depending upon the situations faced by them.
 Performing- In this, members of the team start taking their own responsibility and
leaders does not have to guide them. This is stated as effective team and positive result is
obtained.
 Adjourning- Further comes the adjourning in which, team get separated from each other
due to organisational rule and policies. It also increases the employee turnover but is
being said as effective team who complete their work and get separated.
Reflection-
In my own personal experience, team is essential part of organisation as it help in achieving the
goals and objectives properly. So, group of people working together help in develop a mutual
coordination. Working in team helps individual to achieve the task within a given period of time.
In context to H& M, as a team member of the firm I realised that different people present in the
entity and behaviour as well as attitude changes time to time according to the occurring of events
in team. So, the above tuck-man theory of leadership assists me to coordinated and cooperate

with team members in proper manner. Thus, managers as well as leaders of H& M are supportive
and understand each and every employee.
When employees are motivated and satisfied the quality of work automatically increases.
This also builds up reputation of company. In future when H&M wants to expand more,
attracting new employees will be very easy for it. These are some reasons which make it
necessary for companies to use motivation theories.
Concept and philosophies of organisational behaviour applied within given situation
H & M needs to build an effective team structure in order to achieve their objectives in
best possible manner (Khaola, 2014) . Along with it, it is also important to share all the necessary
information to every member of team without any favouritism. It is also foremost duty of
managers to motivate their team members or employees to work towards organisational goal.
There are some important factors which should be addressed by employers. Below listed are
those factors:
Integrity: Integrity is related to reputation and goodwill of organisation in external
environment. It becomes important for an organisation to fulfil all the demands of customers.
Providing them with effective services will help them build a strong brand image.
Responsibility: Distribution of roles and responsibilities is an important part to be played
by managers (Majumdar, 2018). Manager needs to have complete knowledge of skills and
capabilities of the employees in order to allot them their roles. Proper distribution of
responsibilities helps in increasing job effectiveness.
Organisation behaviour-Informal group theory- Informal group theory states that
these occur as soon as individuals meet or connect with each other. These are not operated by
management and they have positive as well as negative impact on behaviour.
Positive- It allows individuals to enjoy freedom of expression and perform their work
accordingly.
Negative- It does not create discipline and employees sometimes become aggressive towards
their behaviour and work.
Leadership- Every organisation need leaders in their manager because they are the
people who manages, handles and motivates personal to achieve the goals. This concept is wider
& requires set of skills as well as knowledge,

Path goal leadership theory:
This theory is based upon effective style of leadership. Motivating their employees in
order to attain required results is an essential part to be played by managers. This helps in
increasing productivity of employees. By using this theory, leaders can influence the employee
to achieve the objectives as by providing them support as well as proper guidance to them
towards their work and professional career. The required objective can be attained in a set time
frame through this. Various steps in this theory includes required characteristics of workers,
selection of an effective leadership style and motivational factors to be used in order increase
quality of work. Taking inputs from this theory H & M can efficiently increase their profitability.
Advantages-
 Path goal theory helps the leaders and mangers to identify the right path and direction.
 Also, motivation is increased of employees when using path goal theory.
Disadvantages-
 This theory is time consuming and requires skill and knowledge to understand.
Characteristics of Employee: Employees are usually judged based on their experience.
It is important for managers of H & M to know about backgrounds of their employees. They
need to have knowledge of all their skills and abilities. The work must be divided amongst
employees based on it. Also, it is role of manager to decide on the best method of motivating
employees.
Characteristics of Task and Environment: Company needs to provide employees with
required support to achieve their targets. This factor includes a new kind of task characteristics
which is formal authority system, design of task and work group. H & M needs to provide a good
working environment and required support which will help reduce staff turnover rate.
Leadership styles: A manager can choose from various leadership style to apply in organisation
(Mansouri, Singh and Khan, 2018) . Leadership styles can be categorised into 4 broad categories.
These categories are mentioned below:
Directive: It is clear by its name itself. This kind of leadership includes directing employees
towards goal. Managers in H & M guide their employees and make sure that none of their efforts
are wasted on tasks which are not important. This helps in optimum utilisation of man power.
Supportive: In this manager provides support to employees. In H & M team leader should let
employees fulfil their duty, but in critical situations it is job of leader to back up their team

members (McShane and et. Al, 2015) . This will help employees to gain confidence and also
improve their skills
Participative: In this leader needs to make sure that every worker participates in task. H & M
leaders look upon work of every employee. They make sure that all the employees are engaged
in task. This helps in creating a good working environment for employees so that they do not feel
isolated working for them.
Achievement: A goal or target is pre-decided in this kind of leadership. Leaders at H & M
formulate a number of challenges and targets for their team members. Employees are also
motivated in this leadership style to accomplish the objective provided to them.
BF skinner theory of leadership states that leadership behaviour is influenced by
situations and conditions and accordingly reaction occurs. This includes and specifies the
relationship between behaviour, punishment and reward. In today’s modern world, this theory is
much more used by entities in the firm. In context to H&M, they uses Skinner theory so that all
progress as well as performance level of employees are analysed in appropriate manner.
Combining the organisation culture, power, politics and leadership styles do have both positive
& negative impact which are discussed below-
Positive impact-
Consolidating the elements of firm & leadership styles leads to a strong base of the
management which results in higher productivity of entity.
Negative Impact-
Involving the leadership styles and other components may affect the working efficiency
level of personnel and it may also lead to demotivation because of work load and too much
expectations. In relation with H& M, to achieve the task manager and leaders of the company
combine these elements and environment at workplace get disrupted.

CONCLUSION
From the above-mentioned culture, power and politics have imposes positive and
negative impact on organisation. This helps in enhancing the employee’s performance in an
appropriate manner. It is important for building effective plan and procedures for understanding
entire concept of company. In addition to this, organisation politics is unwanted behaviour of
owner toward its employees. At last, organisation power is the ability of supervisor to give order
to employees to perform a particular task.

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