Analysis of Organizational Behaviour and Performance

The report concludes that employee behavior significantly impacts an organisation's overall performance. It discusses various leadership styles, motivational theories, and factors influencing employee performance. The importance of team working and effective decision-making is also highlighted. The document references several studies and research papers on organisational behaviour and performance.

ORGANISATIONAL
BEHAVIOUR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Explain various leadership theories......................................................................................3
1.2 Explain impact of managerial styles on organisational effectiveness ..................................4
1.3 Explain motivational theories is affect on level of employee motivation.............................4
1.4 Explain work relationship theories........................................................................................5
TASK 2............................................................................................................................................6
2.1 Explain characteristics of different organisational structures...............................................6
2.2 Explain importance of culture theory in organisation effectiveness.....................................6
3.1 Explain how can a organisation is facilitate innovation and creativity................................7
3.2 Explain the importance of learning to organisation..............................................................7
3.3 Explain effectiveness of team working ................................................................................8
3.4 Analyse effective change management in the organisation..................................................8
TASK 3............................................................................................................................................9
2.3 Analyse culture and organisational structure of Tesco and its impact on its effectiveness. .9
TASK 4..........................................................................................................................................10
4.1 Explain different approaches of decision making ..............................................................10
4.2 Decision making under uncertainty and risk.......................................................................10
4.3 Analyse effectiveness of decision making in the organisation...........................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Organisational behaviour means different reactions of various employees in the
organisation. It is very important to understand the behaviour of every workers because it affect
the operations of the company. When employees work in team the behaviour of every team
member affect the activities of whole team. It is important to know the interest of employees ver
because it helps to assign the roles and responsibilities to them(inder, 2014). Different behaviour
of the employees is influence the achievement of goals and objectives of the organisation. Report
will also including the motivational theories and their effect on the management. Report is also
going to describe some important factors which directly affect the behaviour of a employee in
the organisation.
TASK 1
1.1 Explain various leadership theories
Leadership theories are play very important role in the organisation because it helps to a
leader for smooth functioning of their responsibilities. There are various leadership theories are
mentioned below:
Trait theory: This kind of leadership theory is define that some people are born with the qualities
of leadership. Such qualities are intelligence, creativity and sense of responsibility which are
play important role to being a good leader. Trait theory is focuses on a person's physical, mental
and social characteristics of leadership(Cummings and Worley, 2014).
Behavioural theories: This kind of leadership theory is focuses on the different behaviour of the
leaders which affect their mental, social and physical characteristics. It focuses on cause and
effect relationship of human behaviour of leaders. Behavioural theory is totally opposite from
trait theory because it focuses on the thought of leaders are made, not born.
Contingency theories: This theory is based on that there no single method or way of leadership
and every style of leadership is based on specific situation. Contingency theories of leadership is
extension of trait theory because it describe that there are various human related with different
situation in which a leader can exercise their duties.
1.2 Explain impact of managerial styles on organisational effectiveness
Organisational effectiveness means when managers are set their goals and objectives,
they also formulate some strategies which helps to achieve those goals and targets. Company is

also conduct assessment programme to monitor level of objectives attained. When manager
monitor whole organisational performance it also includes in the organisation effectiveness
Management style of the company are directly affect the effectiveness of organisation. If there is
perfect match between management style and organisation effectiveness than it helps to achieve
goals and objectives of the company in less time period(DuBrin, 2013). If talk about Tesco
which is largest retail store in UK, it is important to adopt those management style which helps
to increase the organisational effectiveness. Management style are affect the performance of
employees in the organisation. Style of management means a way in which all the activities of
the company is managed. Culpan and kucukemirogula propounded a model which helps to study
of different management style in the enterprise. This model is describe six dimensions such as
communication style, decision making, leadership style, control mechanism, patten of orientation
and interdepartmental relations. So basically styles of management is directly affect the
performance of each employee or a group. So it is important to maintain good link between
management style and organisation which helps to increase the organisational effectiveness.
1.3 Explain motivational theories is affect on level of employee motivation
There are various motivational theories available which can be adopted by the the
organisation to increase the level of motivation of the employees. These theories is helps to
achieve the goals and targets of the company. Efficiency and performance level can be increase
by give motivation to workers of the enterprise so motivational theories play crucial role which
directly affect the performance of the company(Pieterse and et.al., 2010). There are some
theories which a organisation can adopt are given below:
Maslow's theory: According to this theory there are define five needs of individual which are
helpful to identify sources by which a person can motivated. First stage of this model is define
physiological needs of a individual which consists basic needs such as foods, shelter, cloth, water
and air. Next is safety stage of this model which consist financial and personal security. After
satisfy this need a person is come to their belongingness needs which includes love, affection,
good relation with other person of society, relationship with family and other people. Next level
of this theory is esteem needs which includes when a person want to feel confident, self
dependent and respected by others. After satisfy those needs people want to satisfy their need of
self actualisation which includes when individual want to achieve their dreams.

Herzberg theory: This theory is also known as two factor theory it helps to increase the
motivation level of the employees. This theory is focuses on elimination of demotivating factors
which are directly affect the performance of the organisation. Two factor theory is focuses on the
hygiene factor which involve salary, safety and other benefits of employees in the company.
So basically Tesco use these motivational theories to increase the motivation level of
their employees so that they can easily achieve their goals and objectives. These theories can
improve the productivity and performance of the workers and also helps to give them fair and
positive environment at the workplace(Hartnell, Ou, and Kinicki, 2011).
1.4 Explain work relationship theories
In the cited organisation there are large number of employees working in stores which are
located in wide geographical area. It is important to make good relations between them so that
they can perform well in the organisation. For smooth work relationship company can adopt
some theories by which they can make positive and healthy relations between workers and their
supervisor at the workplace. There are some work relationship theories are given below:
Social exchange theory: According to this theory there are consist some relationship in which a
person get less than he gives. The role of this theory at the workplace of the organisation is that
every employee have to help to their employees without any consideration.
Uncertainty reduction theory: When two people are meet first time and go through many stages
than uncertainty reduction theory is play important role in the organisation. Employees have to
communicate with each other which helps to identify their compatibility level. Good relations
between new and existing employees is very important because it directly affect their
performance. This theory includes three stages which have to be faced by every individuals when
they go first time in the enterprise(Walumbwa and et.al., 2011). These stages includes such as
entry stage, personal stage and exit stage.
So basically For Tesco which is largest retail store in UK it is important to adopt work relation
theories so that they can provide best goods and services to their various customers.
TASK 2
2.1 Explain characteristics of different organisational structures
The structure of the organisation is the base of whole activities which have to performed
by the employees of the firm. Organisational structure is consist leadership, culture and internal

as well as external environment. Every organisation have their different structure which followed
by the workforce when they performing their task. Structure of a company is includes chain of
command and define hierarchy of the enterprise. There are many structure which cited
organisation can follow:
Work specialisation: This form of structure includes when there is large project is divided into
single tasks and assign to every employee of the organisation. If talk about Tesco there are large
number of activity such as from production to selling of products and services. In this kind of
organisation includes repetitive, smaller and narrow task. Apart from that organisations are
decide all the duties and tasks for the purpose of assigning and also give them responsibility.
Departmentalization: This structure of o0rganisatiobn consist different segment and groups of
the people with different duties and responsibilities. In cited organisation have different
department such as manufacturing, marketing, sales and customer services. Each of the
department are interconnected in terms of their activities.
Hierarchy of authority: This structure of organisation focuses on decide who are responsible to
whom. It include one important factor such as span of control which consist number of workers
on which manager have authority to control them.
Decentralization and centralization: When structure of the organisation is decentralized than
decision making responsibility have to be spread in the lower level managers. On the other hand
in centralized form of structure decision making authority is only possessed by the top level
managers.
2.2 Explain importance of culture theory in organisation effectiveness
Culture of the organisation play very important role in the effectiveness of performance
because culture is affect the performance of every individual in the company. There are define
some importance of culture for the effectiveness of the organisation are given below:
 Effective culture is important to boost up the performance of every employee.
 A good culture is consist all values, beliefs and background of the employees which
really very important for their well performance.
 It is responsibility of the company to make that kind of culture in which workers can feel
comfortable and motivated.
 For increase the efficiency of the workers it is important to make formal culture so that
they can easily perform their assigned task.

 Every person is treated equally is also a important part of positive and good culture in the
organisation.
3.1 Explain how can a organisation is facilitate innovation and creativity
It is important for organisation to innovate and invent new products and services which
helps to increase the profit level of the company. It is important to understand what kind of ways
cited organisation have to be adopt so they can give their best and quality product to the
organisation. Tesco is the largest retail store in UK so it is important forb them to produce that
kind of product which helps to attract the different customers. For facilitating the innovation and
creativity cited organisation is involved their various employees by conduct activities such as
open door policy and suggestion box in which employees give their innovative ideas which helps
to smoothly conduct innovation process(Hartnell, Ou, and Kinicki, 2011). For this purpose first
company need identify taste and preferences of different customers and launch product with new
features and ideas so that they can attract large number of customers. For make create product,
company can take different suggestions and ideas from their workers which helps to create
innovation in existing products and services.
3.2 Explain the importance of learning to organisation
Learning level of the employees are directly affect their performance in the organisation.
To retain and attract the employees, it is very important for the organisation create opportunities
of learning which helps to workers in their growth. It is a important management tool which help
the managers, leaders and other employees of the enterprises. It is very crucial to conduct
learning programme in the company which helps to make organisation competitive. There are
some importance of learning in the organisation are given below:
Personal mastery: It includes encourage organisational and personal goals and help to in
capacity building of various employees(Walumbwa and et.al., 2011).
Mental models: It includes that learning can change the way of thinking of the workforces of the
enterprise.
Shared vision: Learning programmes is helps to identify vision of the company so employees
can easily analyse their personal and professional goals.
Team learning: Learning is also important for build team capacity and develop ability and
intelligence which is more important than the individual's learning.

System thinking: Learning of a employee is increase the thinking level of employees and they
get to know change in single factor how change whole system of the organisation.
So basically learning culture of the organisation is helps to the employees to perform well and
improve their productivity because they can learn new things which can be used in the
company(Walumbwa and et.al., 2010).
3.3 Explain effectiveness of team working
For the organisation it is very difficult to operate all activities by a single person or a
individual. For effective functioning of the company it is important to build small teams so that
works can be divided and complete in given time period. Cited organisation have to build their
teams according to their roles and responsibilities. Team is divides as in human resource,
marketing, sales, manufacture and IT etc. working in team helps to employees to enhance their
skills and competencies and department can focuses on their clear vision. One another benefit of
of team building is that supervisor can get many ides and advices from their team members
which helps to make appropriate strategies in the enterprise. Knowledge and talent of the
workforce can be improved when they are working in a team. Large organisations such as Tesco
have to make team and assign task to every workers according to their skills and qualities so they
can give their full contribution to achieve goals and objectives of the their team. The structure of
Tesco need adoption of technology so that they can give their best and quality products to
various customers(Sharpe, 2012).
3.4 Analyse effective change management in the organisation
It is obvious that organisation is affect by internal and external environment so it arises
some change in the enterprise. For smooth functioning it is important to manage these change
according to the structure of the company. Change management is includes effective
implementation of the strategies with the involvement of various employees of the enterprise. It
is important that change must be achievable, realistic and measurable. When organisation want
to change it is important to identify purpose of change and effects of change. For effective
change management cited company can adopt some theories are mentioned below:
Psychological contract theory: This theory is adopted by the cited organisation which helps to
effective change management in the company. It describe relationship between organisation and
their workforce.

Nudge theory: According to this theory it helps to understand way of thinking of employees of
the organisation and how their thoughts are affecting decision making on the company. Change
management process became effective if company can understand the behaviour of the
workforce(Snape and Redman, 2010).
Apart from that cited organisation can adopt other activities which helps to effective
management of change such as decision making template and personal change model.
TASK 3
2.3 Analyse culture and organisational structure of Tesco and its impact on its effectiveness
Tesco is the largest retail store in UK provide products and services to various customers
which are located in the wide geographical area. There are different department in that company
from manufacturing to selling. Organisational structure of Tesco are given below:
Functional structure: This kind or organisational structure is also known as bureaucratic
organisation structure. It divides the operations of the company on speciality bases. According
to this structure various departments such as marketing department, sales and customer service
department. Cited organisation is provide goods and services to various customers so they are
needed manufacturing department and marketing department also. Cited company is adopted this
structure because it helps to increase the dedication and potential of every employee. This
structure is clearly defines roles and responsibility of every workers in the enterprise. It also
facilitate good communication between various department which is essential for good
performance of the company. Apart from that cultural of organisation is also affect the
effectiveness of the company. Good and positive environment is helps to increase the the
performance of the employees(Pinder, 2014). Culture is very crucial part which directly affect
the performance of individual, group and whole organisation.
TASK 4
4.1 Explain different approaches of decision making
For effective decision making in the company they have to adopt various approaches
which helps to improve the performance of the enterprise. There are different decision making
approaches are given below:

Rational approach: This kind of approach is assume that organisation is managed by the
decision makers who have complete knowledge and information regarding to the work. In this
method decision is taken step by step(DuBrin, 2013).
Behavioural approach: According to this decision making approach it consist bounded
rationality means some idea and views which can not used by decision makers and chose some
meaningful solution of the problem.
Practical approach: This is the combination of behavioural and rational approach of decision
making. This is more realistic process of decision making in the organisation.
Personal approach: It focuses ion how people react on particular situation such as anxious,
nervous and worried. These situation can affect the decision making process of a individual in
enterprise.
4.2 Decision making under uncertainty and risk
Today's environment is more complex and dynamic so it is important for the organisation
to make effective decision making process so they can get better results.
Decision making under the uncertainty: In this situation of uncertainty means when conditions
and situation is unpredictable in future and every activity is fluctuate. It is important for decision
maker to aware about all the alternatives for effective decision making in the organisation.
Decision making under the risk: In this situation decision maker have in incomplete and wrong
information about the facts(Hartnell, Ou and Kinicki, 2011). While making decision under the
risky situation, manager have to determine probability of each alternative.
4.3 Analyse effectiveness of decision making in the organisation
Effective decision making is very important for any kind of organisation such as Tesco.
For effective decision making, managers have to find out all the alternatives available in the
environment and take appropriate decision according to the situation. Correct decision making is
effect the overall performance of the organisation. Cited organisation have to make corrective
decision related to the sales, marketing and manufacturing. Overall performance of every firm
can be enhanced by the effective decision making. Tesco is provide their best goods and services
to every customers with the helps of impressive decision making process.

CONCLUSION
As per the report it can be concludes that behaviour of the employees are affect the total
performance of the organisation. The report is includes various leadership styles, motivational
theories and other factors which all are affect the performance of the employees. Various
organisational structure is also discussed in this report(Walumbwa and et.al., 2011).
Effectiveness of team working and importance of team working is also discussed in this file. At
last effectiveness of decision making process is also discussed which really affect the
performance of the company.
REFERENCES
Books and journals

Cummings, T. G. and Worley, C. G., 2014. Organization development and change. Cengage
learning.
Pinder, C. C., 2014. Work motivation in organizational behavior. Psychology Press.
DuBrin, A. J., 2013. Fundamentals of organizational behavior: An applied perspective. Elsevier.
Pieterse, A. N. and et.al., 2010. Transformational and transactional leadership and innovative
behavior: The moderating role of psychological empowerment. Journal of Organizational
Behavior. 31(4). pp.609-623.
Hartnell, C. A., Ou, A. Y. and Kinicki, A., 2011. Organizational culture and organizational
effectiveness: a meta-analytic investigation of the competing values framework's theoretical
suppositions. Journal of Applied Psychology. 96(4). p.677.
Walumbwa, F. O. and et.al., 2011. Linking ethical leadership to employee performance: The
roles of leader–member exchange, self-efficacy, and organizational identification.
Organizational Behavior and Human Decision Processes. 115(2). pp.204-213.
Walumbwa, F. O. and et.al., 2010. Retracted: Psychological processes linking authentic
leadership to follower behaviors. The Leadership Quarterly. 21(5). pp.901-914.
Sharpe, N. F., 2012. Process Over Structure: An Organizational Behavior Approach to
Improving Corporate Boards. Southern California Law Review. 85. pp.11-01.
Snape, E. and Redman, T., 2010. HRM practices, organizational citizenship behaviour, and
performance: A multi‐level analysis. Journal of Management Studies. 47(7). pp. 1219-1247.
Suppiah, V. and Singh Sandhu, M., 2011. Organisational culture's influence on tacit knowledge-
sharing behaviour. Journal of knowledge management. 15(3). pp. 462-477.
Westwood, R. and Rhodes, C., 2013. Humour, work and organization. Routledge.
Wilson, F. M., 2013. Organizational behaviour and work: a critical introduction. Oxford
University Press.
Online
Theories of Motivation. 2016. [Online]. Available through:
<http://www.analytictech.com/mb021/motivation.htm>. [Accessed on 22nd august
2017].