Analysis of Organizational Behaviour in ASDA Stores Ltd.

This document is a report on the analysis of organizational behaviour in the context of ASDA Stores Ltd. It includes an evaluation of the culture, politics, and power within the organization and their influence on team and individual performance and behaviour. The report also examines motivation theories and techniques used by ASDA to achieve its objectives. Additionally, it discusses the difference between effective and ineffective teams and the impact of organizational culture, power, and politics on team motivation and the success of the business. The report provides insights into the application of organizational concepts and philosophies in a business situation.

ORGANISATIONAL
BEHAVIOUR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of culture, politics, and power of organizational behaviour:...................................1
M1 Critical analysis of culture, power and politics of organization and its influence on team
and individual performance as well as behaviour:......................................................................3
TASK 2............................................................................................................................................4
P2 Evaluation of motivation theories and techniques in achieving objectives of organization:. 4
M2 Critical evaluation of motivational concepts, theories and models and its influence on
others behaviour:.........................................................................................................................5
D1 Critical evaluation of relationship between team motivation and organizational culture,
power and politics in relation to success of business:.................................................................5
TASK 3............................................................................................................................................6
P3: Difference between effective and ineffective team...............................................................6
M3: Evaluate the group development theory to maintain cooperation within effective teams:. .7
TASK 4............................................................................................................................................8
P4: Concept of organizational behaviour within a company...........................................................8
M4: Evaluate concept of Organisational behaviour that influence the behaviour in given
business........................................................................................................................................9
D2: Evaluate the relevance of team development theories that influence the behaviour in
workplace to improve performance...........................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organizational behaviour is an insight study of performance and behaviour of employees
in the workplace. It helps in improving effectiveness of management by appropriately managing
its human resource. This report is based on evaluation of organizational concepts and
philosophies of ASDA Stores Ltd. It is a supermarket retailer which is headquartered in England.
It was founded in 1949 by Peter and Fred Asquith (Abbott, Green and Keohane, 2016). It has its
supermarket chain in 631 locations. This report consists analysis of organizational culture,
politics and power and its influence on team performance and behaviour. It also evaluates
motivational techniques used for individual and group motivation in order to achieve business
objectives. Along with it, demonstration of cooperate efficiency and application of
organizational concepts and philosophies in business situation are also stated.
TASK 1
P1 Analysis of culture, politics, and power of organizational behaviour:
Day to day operations of business are governed and influenced by organizational culture,
power and politics. As power and politics in organization has huge impact on its culture. Every
organization has different guidelines and policies which define its work structure. Organizational
structure of ASDA Stores Ltd. in context to its culture, power and politics is defined further.
Organizational Culture: It consists of values, missions, behaviour, traits and
expectations that guides working environment of firm. Handy's model is applied by ASDA
Stores Ltd. To define its culture in a way that firm’s effectiveness and efficiency improves. This
model is developed by Charles Handy along with Roger Harrison. The focus of this model is on
defining different types of organizational culture that firm can use in accordance with its
structure. There are four types of culture explained in this model which are discussed below
along with its influence on ASDA Stores Ltd.:
 Power Culture: This culture is illustrated as web of spider in this model. It indicates that
power of influence is only on few hands who acts as a decision maker. This people are
politically minded and has power base. With the use of this culture, ASDA can judge
performance on result basis (Cohen, 2017).
 Role Culture: In this organizational culture, managers and leaders provide clear
guideline to employees about their roles and responsibilities. It will enable ASDA Stores
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Ltd. To increase efficiency of employees as they will have clear understanding of tasks to
be performed. It will ultimately enhance productivity of company.
 Task Culture: It is a job oriented culture. It focuses on on-time completion of tasks. It
can help ASDA Stores Ltd. to achieve its target on deadlines by enhancing teamwork and
utilizing human resources in optimum way.
 Person Culture: In this culture every individual belief himself or herself to be superior.
It is useful when workforce of organization consists of trained experts. Application of
this culture in ASDA Stores Ltd. will make individual realise sense of their importance
and hence will increase their commitment towards organization (Cormier, 2018).
According to organizational structure of ASDA Stores Ltd., Role culture was applied by
business. It enables managers to delegate tasks in accordance to competencies of their
employees.
Organizational Power: It is the ability of structure of organization to utilize capabilities of its
human resources. French and Raven power form is utilised by leaders of ASDA to influence
their workforce.
 Coercive Power: In this, leader orders employees to perform a task without his will.
Applying this style of organizational power in ASDA can ensure on-time performance of
tasks.
 Reward Power: It involves rewarding employees for their achievement. With the use of
this power base ASDA can boost morale of workforce and motivate them to set and
achieve high targets.
 Legitimate Power: Within it, power is related with position of the person. If the person
loses its position, he or she will automatically lose its power and authority. Designation,
value and acceptance are three bases of this power style. This base of power will ensure
clear hierarchy in ASDA. Hence, appropriate de-legacy of responsibilities will be
exercised (Duan, Li, Xu and Wu, 2017).
 Expert Power: Here, the level of skills and expertise of a person derives his power. As
power is derived through personal traits of individual, this style will ensure that decision
making authority of ASDA is with knowledge holders.
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Expert power is implied in ASDA Stores Ltd. It ensures authority holders are experts.
Hence, proper direction will be provided to employees to improve their competencies and
achieve objectives of business effectively.
Organizational Politics: It consists of principles, procedures, power, authority and guidelines
according to which firm and its members act to accomplish their interest. These are of mainly
two types which are explained below:
 Positive politics: Organizational politics leads to achievement of both company goals as
well as employee's interest. This increases efficiency of ASDA as employees are
motivated to work hard. It is because of good interpersonal relationship between
employees and authority. Hence, workforce feels a sense of security and commitment
towards organization (Ferris and et.al., 2018).
 Negative politics: This kind of politics affects productivity of employees. In ASDA,
leaders who have authority discriminates among employees. This indicates that
favouritism is there in firm. Some people are rewarded for even small achievement while
large accomplishments by some people are ignored by management.
In ASDA, while positive politics is increasing motivation of employees on the other hand
some employees are feeling demotivated due to discrimination and lack of recognition because
of negative politics.
M1 Critical analysis of culture, power and politics of organization and its influence on team and
individual performance as well as behaviour:
The power, politics and culture in relation to organization are very effective as it helps
management to run their business by adopting best alternative which influences team and
individual behaviour. Such as, management of ASDA has adopted 'Role culture' that avoids
chances of miscommunication. It is because of the fact that leaders and managers directly
provide clear instructions and guidelines to employees about the task that has to be performed.
While considering about organizational power, 'Expert power' ensures minimization of error as
directions are provided by experts. Organisational culture influence the individuals performance
and team behaviour by role culture because all the employees come from different culture which
create difficult to adapt this culture. So manager help them and delegate task according to their
specialization. Apart from these politics also influence the team behaviour and performance of
individual by create positive politics in the all departments by which all workers get motivated
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and easily achieve the organization goals. Organization power also help in influence the
performance and behaviour of team member and individual because leader give power to those
worker according to their ability and they help to other employee also in a friendly manner not
show anyone that they have power so hey can do anything. Hence, 'French and Raven model'
and 'Handy's model' have ensured effective organizational structure at ASDA (Ferris and et.al.,
2018).
TASK 2
P2 Evaluation of motivation theories and techniques in achieving objectives of organization:
Motivating employees is essential for any organization because it boosts their
engagement and commitment towards organization. It enables business to achieve its objective
and hence increases its bottom line. Content and Process are motivational theories enhances
motivation of workforce.
Content Theory: It is the earliest theory of motivation. It attempts to define needs and
wants of people in relation to their satisfaction level. ASDA utilizes Maslow's hierarchy of needs
to motivate its employees. This need is very important for the company because every employee
is satisfy by fulfil their necessary needs. This help them to achieve the goals of the company in a
short period of time and also increase the satisfaction level of workers and through thus they
can achieve the goals of organization also which is they increase their profit in short period of
time by giving them monetary amount as motivation or incentive. There are following factors:
 Physiological needs: It includes basic necessities of human, that is, food, shelter and
clothes. First priority of ASDA is to ensure basic pay amount to employees so that their
basic requirements can be fulfilled.
 Safety needs: Once physiological needs of individual are satisfied than person thinks
about safety and security. ASDA provides health and safety insurance, pension as well as
provident fund to employees. Organizational structure also collaborates job security to
workforce (Johns, 2017).
 Social Belongingness needs: Next concern of individual is social belongingness, as
human are social animals. It includes social and community groups, friends and family,
etc. In ASDA employees has freedom to socialize. People have mutual respect for each
other and negative politics is tried to be minimized or neglected.
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 Self-esteem: Needs of status and recognition are included in it. Here, people desire to be
valued and accepted. Leaders of ASDA ensures giving reward and recognition to
employees on achievement of targets. They also promote workforce on the basis of their
performance. Hence, employees have career development and enhancement opportunities
in firm (Kidron and Peretz, 2018).
 Self-actualization: At this stage, individual has feeling of self-fulfilment and realization
of highest potential. It is the final stage of Maslow's hierarchy theory. Employee
development programs are launched in ASDA to satisfy these needs of workforce.
Process Theory: Instead of 'what' this theory focuses on 'how' factor. It focuses on
process of behaviour and psychology of human. ASDA uses Vroom expectancy theory to
maximize employee satisfaction. It is very important for fulfilment of organization goals like
hygienic environment and for increase the sales manager motivate workers by providing the
positive environment. This theory has three components, that is, expectancy, instrumentality
and valence.
 Expectancy: According to it, increase practice will lead to increased performance.
Hence, in ASDA, resources and targets are provided to employees and they have to
achieve it within decided deadline.
 Instrumentality: It is affected by simplicity of process decided for target achievement,
and understanding or clarity in roles and accountability. Here, the focus of is on better
performance so that objectives of ASDA can be achieved (Kim, 2017).
 Valence: In this, actual outcome is compared with expected outcome. Hence,
performance of employees is evaluated in this stage. Efforts and outcomes are compared
during this level. Managers of ASDA than compare the result and identify any hinders or
errors that should be improvised. It provides direction to motivation of employees.
M2 Critical evaluation of motivational concepts, theories and models and its influence on others
behaviour:
Motivational models, theories and concept provide framework to motivate employees. It
enhances their competencies and confidence which leads to increased productivity of workforce.
It leads to increment in profitability of business. ASDA uses 'Maslow's hierarchy of needs' as a
conceptual theory to satisfy requirements and esteem of workforce. While considering process
theory, Vroom expectancy theory is best suited concept in ASDA as it challenges employee’s
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capabilities and motivates them to achieve higher proficiency (Koutsoumari and Antoniou,
2016).
D1 Critical evaluation of relationship between team motivation and organizational culture,
power and politics in relation to success of business:
Motivation and organizational culture are inter-connected. When organizational culture is
positive than its employees will feel connected and committed in organization. Management
understands its employees. Hence, good interpersonal relationship among workforce is ensured.
It will increase employee’s satisfaction level and they get motivated to perform better. If leaders
are skilled personalities, that is power is with expert authorities than management can show right
direction to employees for goal-achievement. Motivated employee will further perform better
which will increase company's profitability.
TASK 3
P3: Difference between effective and ineffective team
In the organization, “Effective team” is the term used for completion of projects,
efficiency and increase productivity. In this team every worker shows their talent and skill which
contribute overall success. “Ineffective team” is the term used when there is conflict arise, there
is distrust between employee and poor communication in the transfer of information. In Asda
store limited, effective team is preparing by manager and due to some conflict and negative
coordination it converts into ineffective team. So they focus on improving the performance of
employee for the achievement of goal (Miller, 2019).
Basis Effective team Ineffective team
Meaning It is team make for improvement of
performance, to increase the
productivity and for achievement of
goal quickly.
This team arise when there is
conflict arise between
employee, there is no
coordination occur.
Member contribution There is lot of discussion held so that
every employee put their view
regarding the task. In Asda, it is also
happen they can conduct a discussion
In this a few person has put
their views but their point is
out of the topic. In Asda it is
not happen all employee put
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in month to get the views of all and
then manager take decision (Yang,
Choi and Lee, 2018).
their own point.
Listening In this, member listen to each other
without any conflict. In Asda, every
worker is listen to each other so they
can maintain coordination and do
work effectively.
In this, members are not ready
to listen each other. In Asda,
some idea is ignored by
worker.
Goals Every team member is ready to
understand the goal and it is accepted
by all also. In Asda, all worker is
ready to accept the task.
In this it is difficult for
members to understand the
task and their goals.
Tuckman's model is used for establish the relationship between employees and for
develop maturity in the teams so there is no conflict arise in organization.
 Forming- In this, employees are dependence on leader decision for direction and
guidance. In this roles and responsibility are not specify in the company. In Asda,
workers are totally dependent on leader and do only that work which leader assign.
Through this tolerance power of leader is also checked (Moon, 2016). Hence, forming
stage provides opportunity to leaders to manage team effectively that enhance
performance level of employees.
 Storming- In this there is lack of agreement when it comes to decision making. In this
purpose of team is clarified but there is so much variation is there. In Asda, leader clarify
the working style and task very clearly to employee, apart from they receive some
challenges in working. During this stage, proper conflict management leads to formation
of effective team.
 Norming- In this the roles and responsibility of every employee is clear. Big decision is
take by superior and then they assign various work in individual according to their
specialization. Their working pattern is also specified. In Asda, leader provide different
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roles to worker according to their skills, talent. Through this their clarity towards purpose
is increases. Performance of task by skilled workers leads to improvement in team
efficiency.
 Performing-In this the vision of the organization is clear to all employee and and if
worker is not satisfied with the team, necessary changes is made to make positive
environment. In Asda, leader clear to all subordinates about the task they have to perform
and team also has high degree of autonomy (Mun and Hwang, 2016). Management of
effective team by leaders improves there productivity level.
 Adjourning- In this, specific team is preparing for specific task and after the cover of
task team is also renewed. It views the team from the prospective of work only. In Asda,
team is also built for special purpose. In Asda, different work is completed by various
team which is built for specific task. Then the team is break- up after its purpose is
achieved. Effective team building leads to efficient performance of business.
M3: Evaluate the group development theory to maintain cooperation within effective teams:
In the Asda, they apply Tuckman theory for the development of team and to maintain
cooperation and coordination with effective team. In this leader has the main responsibility to
delegate the various roles to different employee according to their education and help them in
performing their task in a positively manner. Through this theory organization is able to improve
the performance of worker and made strict rules to follow their decision. So their productivity is
increasing and able to achieve the goal very quickly in an effective manner.
TASK 4
P4: Concept of organizational behaviour within a company
Organizational behaviour is the study of behaviour of human in the company. It
determines the impact of human attitude in workplace and specify their effect on performance,
communication and motivation. In Asda, they do the study of employees and groups act in the
organization according to their behaviour. Through this all conflict is resolved and their
productivity is also get increased by the leader they also understand the subordinate in a better
way.
Scenario- In the Asda, the net profit is declining year by year, they have to focus on
improving the performance and productivity of employee for increasing the sales of company in
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retail sector. They have to open different shops at different place. They can use Path goal theory
so they can increase the revenue and customer base also (Paresashvili and Edzgveradze, 2019).
Path goal theory:
Environmental characteristics- In this leader is focus on environmental factor which effect the
profit of the company because due to climate change, consumer health etc. products in
supermarket is depend on climate. Asda have to maintain the goods according to their needs of
customers which ultimately helps in increasing sales and coping up with the problem of
declining profitability.
Employee characteristics- It play a vital role in increase the profit of Asda. Through this the
company is hiring different employee for various department according to their talent and good
communication skills. So they solve the issue of customer and maintain relation with customer
for their brand easily. Work group leader is appointing through the votes taken by the employee
which encourage them to take participate in discussion (Yadav, Rangnekar and Bamel, 2016). It
encourages employees of Asda for enhancing productivity.
Leadership styles: It suggests different leadership approaches for team management. These are:
 Directive path goal- In this, leader know everything about the task and deadline also.
They provide clear instructions regarding the completion of task. In Adsa, this style helps
in increasing the profit because leader know the employee traits which employee is best
for sales team and help in increase the sales because they have to give proper guidelines
regarding the work to all employee so they can work effectively and achieve organization
goal in a productive manner.
 Supportive leadership- In this style, supportive leader plays a lot of attention on their
employee’s needs. They support them when they require and treat them with respect. In
Adsa, the profit margin is increased by supportive role of leader in all the department so
they can treat the employee as their family member and help them when they require in
any task.
 Achievement-oriented leadership – In this, leader provide goals and expect highest
level of performance by the employee. it is suitable for independently worker which have
decision- making capabilities. In Asda, they can increase the profit by given the different
single task to various worker to check their efficiency. leader force subordinate to show
excellent work and confidence in their task (Światek Barylska, 2017).
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 Participative leadership – In this style leaders is work with employees and force them
to share their ideas in the decision. It means they involve suggestion from worker in
decision making process. In Asda, they help in increasing the profit by taking their ideas
related to the marketing strategy and implementation of this and also help worker by their
style when subordinate is highly involved in the task and have a good knowledge.
Social capital theory: This theory considers capacity of humans to act and think cooperatively.
That is, this theory deals with social relationships and structures. Application of stages of social
capital theory in Asda and its implications are further explained below:
 Bonding: This social capital approach focuses on network closure. It suggests leaders to
improve employee relationships which will improve their commitment towards Asda
which further leads to improvement in performance level of staff members.
 Bridging: In this stage, employees are divided into different social groups by leaders. It
works as a bridge for any structural holes. It does not involves shared norms buts
improves efficiency of business operations of Asda.
 Linking: In this leaders focus on emerging trust relationship with team members. This
provides sense of security to employees which encourages them to perform task allotted
to them effectively. Hence, it ultimately leads to improvement in profitability of Asda.
M4: Evaluate concept of Organisational behaviour that influence the behaviour in given business
In the Asda, Organisational behaviour play an important role in making employee
motivated and help them to improve their performance for the effective role. Leader used path
goal theory for the situation arise in the company. They use different leadership style to increase
the net profit related to the worker responsibility, their skills and also give corrective measure to
control the impact of external and internal environment. It also helps them to take the decision
related to task and delegate task to worker according to deadline. In this behaviour of superior
and subordinate is maintaining in positive manner. So they achieve entity goal in an efficient
manner and their productivity is also increasing (Vajjhala and Strang, 2017).
D2: Evaluate the relevance of team development theories that influence the behaviour in
workplace to improve performance
Firms are use team development theories for know about their employee’s efficiency
towards work and philosophies that influence employees behaviour towards their work. In
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context to Morrisons, the firm used two theories or philosophies to influence workers behaviour.
These two theories are Tuckman and theory. Tuckman theory concerns with team task in this
team taken a task from the starting to ending it. This model basically ends with stages like
forming, storming, norming, performing and adjuring. In path goal theory this concern with
motivation to employees that how they can interact with supervisor and subordinate. it is based
on leaders’ style or their behaviour towards employees and work culture to accomplish
organisation goal. These theory increase employees motivation, empowerment and satisfaction
so they give better productivity to become efficient workers in the organisation (Woodside,
2016).
CONCLUSION
From the above report it has been concluded that organizational behaviour means
interaction of human behaviour in the company, it is the study related to expected attitude of an
employee in the entity. In this, company use different types of model and theory in the
organization's culture, politics and power are Handy's model, positive and negative politics and
French and Raven forms respectively. There are different motivational approaches used in
process and content theory by entity which are Vroom's expectancy and Maslow hierarchy
theory to provide motivation to worker. In the business entity they use Tuckman's theory for
making the Effective team. Apart from this Path goal theory is also used by the leader to provide
leadership style for different business situation.
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