Leadership and Management Styles

This report summarizes the different types of leadership and management theories, organizational structures, and the role of innovation, creativity, and team work in influencing work within an organization. It also highlights various approaches to decision making and emphasizes the importance of effective leadership styles in achieving organizational goals.

ORGANISATIONAL
BEHAVIOUR

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
1.1 Evaluation of leadership theories..........................................................................................3
1.2 Evaluation of the impact of managerial styles on organisational effectiveness....................3
1.3 How motivational theory can inform employee motivation.................................................4
1.4 Analysis of theories relating to work relationships and interaction......................................4
ACTIVITY 2 ...................................................................................................................................5
2.1 Describing the characteristics of different organizational structure......................................5
2.2 Importance of organizational culture theory.........................................................................5
3.1 Explain how innovation and creativity can be facilitate in the organization........................5
3.2 Explain importance of learning.............................................................................................6
3.3 Evaluate effectiveness of Team working..............................................................................6
3.4 Explain effective management of the Change......................................................................7
ACTIVITY 3....................................................................................................................................8
2.3 How culture and structure impact on the company's effectiveness.......................................8
ACTIVITY 4....................................................................................................................................8
4.1 Explain different approaches to decision making.................................................................8
4.2 Explain approaches to risk and uncertainty in the decision making.....................................9
4.3 Explain effectiveness of decision in organization.................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organizational behaviour is the study of group and individual performance in a firm. The chosen
firm for this report is HSBC Ban Malta which is the top bank who provides best financial
services to their customers. Thus, report will describe different leadership and motivational
theories and then define how power culture and structure impact on the effectiveness of the firm.
Further, study will analyse how the quoted firm can improve the employee effectiveness in order
to respond business opportunities. Lastly, it describe approaches of organizational decision
making and risk and uncertainty in decision making.
ACTIVITY 1
1.1 Evaluation of leadership theories
Trait Theory: This theory believes that people are either born or made with certain
qualities which will helps to make them effective leader. These qualities are intelligence, sense
of responsibility, creativity etc. Moreover, Gordon Allport also identified around 18000 English
personality relevant term and the theory mainly focused on determining the mental, physical and
social characteristics which are quite common (Stewart, Courtright and Manz, 2019). Allport
also classify different traits such as common trait, individual trait, cardinal trait, central trait and
secondary trait.
Behavioural Theory: It is quite differ from Trait theory and it also offer new
perspective such that it mainly focus on the behaviours of leader which opposed to their mental,
physical and social characteristics. In this, the role theory is used which refers what happened
when people are acting out social processes and each person is the actor which represent typical
individual in the real life scenario who perform the specific context and different functions as
well (Moghimi, 2019).
1.2 Evaluation of the impact of managerial styles on organisational effectiveness
There are different managerial style which are creates impact upon the organization such
as:
Participative Leadership: It is also known as democratic leadership in which leaders of
HSBC Bank encourages employees to take participation in decision making, but final decision
relies on leaders only (Leadership styles, 2018). This helps employees to make comfortable in

the working place, and working in the team brings more creative ideas and this style helps HSBC
to take better decision and also leads to effectiveness as well.
Autocratic Leadership: In this type of leadership style, only leaders exercise total
control over all the decision and this style is mainly used in military areas only. This leadership
style is not preferred by the employees because it leads to decrease the productivity of all
employees which leads to affect the business in negative way.
Laissez- Faire Leadership: It is another management style in which decision making is
left to the employees with little or no guidance from the leaders. Though, leaders also provide the
resources but employees do not use and they resolve issue by their own. Sometimes, this
situation motivate the employees but sometime it may generate wrong results as well because of
not involving leaders into the decision making process (Frankel and PGCMS, 2019).
1.3 How motivational theory can inform employee motivation
Herzberg Two Factor theory: the theory state that there re some factors such as
motivation factor like job satisfaction and other is hygiene factor that cause dissatisfaction. For
example, in HSBC Bank if the hygiene factor like salary, working condition and work
environment are unsuitable at workplace then it may cause individual unhappy and dissatisfied
from their job (Shane and Heckhausen, 2019). On the other hand, motivation factor helps to
increase the job satisfaction as well as raise their personal growth as well. That is why, to
motivate the employees of HSBC, leaders have to satisfied them in order to achieve the above-
average performance and effort.
McGregor theory: The theory state that the human nature in two state such as Theory X
and Theory Y. The theory X is consider negative because employees are inherently dislike the
wok and they are also threaten with punishment. Moreover, when manager accept theory X who
have the tendency to stricture and control but they think external control is appropriate for
dealing with unreliable people. On the other side, assumptions of theory Y are positive in which
employees are self directed and they have the ability to make decision in order to lead the firm in
positive direction. Thus, by using Theory Y, manager/leaders of HSBC bank can motivate the
employees (Kuri and Kaufman, 2019).
1.4 Analysis of theories relating to work relationships and interaction
Working relationship and interaction mainly depends upon such theory such as:

Power:Mainly there are five types of power and in HSBC, the leaders generally opt
Expert Power which is based on in-depth, knowledge and expertise. These type of leaders are
quite intelligent and also have trust in their power in order to fulfil different roles and
responsibility. Therefore, this type of power helps to maintain the relationship and get closer
attraction as well. Further, this expertise is also appreciated and used by the firm.
Social Constructivism Theory:It is another theory of knowledge which states that
human development is socially situated and even the knowledge is constructed through effective
interaction (Prentice, Jayawickreme and Fleeson, 2019). The theory also state that people who
work together in order to construct the artifacts and it also focus on the artifacts which are
created through social interaction of a group so that people easily get interact with each other and
share the knowledge as well as idea in order to get the work on time. Moreover, in HSBC bank,
leaders also use these two types of theory In order to maintain the working relationship and get
proper interaction with the employees.
ACTIVITY 2
2.1 Describing the characteristics of different organizational structure
Enclosed in PPT
2.2 Importance of organizational culture theory
Enclosed in PPT
3.1 Explain how innovation and creativity can be facilitate in the organization
Booklet
Innovation and creativity are the part of the
process of bringing or developing something
new into the market which was not developed
by anyone in the past. Organization are having
many option to do the same. Some of the
source are as follows:
New technology or Technique: It is the most
common way through which the innovation is
brought in the HSBC in which the company
used to take the help of upgraded technology to
produce new product or adopt the new form of
the technique to serve the people.
Research and Development: It is the another
common form of bringing innovation in the
organization in which the HSBC used to search
in the market (Sigala and Kyriakidou, 2015).
On the basis of finding from the market the
organization used to produce or develop the
service or product which can satisfy the need
of the organization. For example if other bank

is giving the offer to attract customer than on
the basis of that need HSBC can bring new
technique to satisfy that need.
Skilled Employee: As employees are the one
who run all the activity of the business and
they are the one who are the biggest influenced
factor behind the innovation in the
organization. HSBC can opt for bringing new
and skill full talent in the organization so that
with the help of the new skills talent employee
can bring innovation in the organization.
3.2 Explain importance of learning
Booklet
Learning is the on going process in the
organization which ask the employee to adopt
the new things to increase the efficiency of the
work in the business (Perry-Smith and
Mannucci, 2017). Some of the importance of
learning in the organization is as follows:
Efficient workforce: It is the biggest benefit
which is brought by the Learning in the
organization as the learning help the
organization in building the more efficient
workforce as learning help the employee in
understanding the current situation very
comfortably and defending them easily.
Learning about the new technology or about
current situation can be helpful for the
workforce.
Competitive Advantage: Learning help the
organization in understanding the need of the
customer very easily as by the help of the
proper learning HSBC is able to understand
what is expected by the customer from the
organization. On the basis of the outcome of
the learning the organization used to develop
the product or the service which can satisfy the
need of the customer efficiently.
Other than above two benefit the
learning also used to bring the benefit of less
uncertainty in the organization and also good
learning help the HSBC in becoming ready for
the different situation of the future (Dixon,
2017).
3.3 Evaluate effectiveness of Team working
Booklet
Team working is the co operation between the
group of the employee to work together for
achieving the individual and the team goal.
Team working used to bring many benefits for
the organization. Some of the effectiveness of
the team working is as follows:
Problem Solving: Teamwork bring the greater
way to solve the problem in the HSBC as in
the team more than one individual try to

resolve the problem which is faced by the
organization which helps the business in
getting the better solution of the problem
which is faced by the HSBC (Ellis and
Sevdalis, 2019).
Innovation and Creativity: It is the another
benefit which is brought by the team work as
in the team work all the employee are
permitted to present their point of view in front
of the team and which generally helps the
organization in bringing the new idea to
complete the task in the organization.
Working Environment: Team working also
builds a good working environment in the
organization as all the employee used to build
the good trust factor and bonding in between
the employee in the Team dynamic. This will
generally helps the HSBC in reducing the
uncertainty in the organization which
eventually increases the efficiency of the
business.
3.4 Explain effective management of the Change
Change is about the process of changing an organizational strategies, processes, procedures,
technologies, and culture, as well as the effect of such changes on the organization. Change
always creates the uncertainty in the organization as it demands the high rate of the effort from
the employee side. Organization can use the followings way to effectively manage the change in
the organization.
Employee Involvement: Organization can involve employee in the decision making at the time
of the change as these group of the stakeholder is more adversely affected at the time of the
change. Involving employee in the decision making will send a positive signal toward the
employee that they are cared by the organization which will eventually create the good bound
between the employee and organization which will reduce the employee turnaround rate. For
example at the time of the change involve the employee and explains them what is the need of
the change and how it benefit the company and employee.
Proper Training: Proper Training to the employee and management is the another way through
which the change can be effectively manage in the organization as the biggest issue which is
faced at the time of the change is that employee are not able to adopt the change. Proper training
will help the employee in defending the challenges which will eventually help the organization in
managing the change effectively.

ACTIVITY 3
2.3 How culture and structure impact on the company's effectiveness
Both culture and structure creates positive as well as negative impact upon the company's
effectiveness. Such that organizational culture cannot be separated from the other aspects of the
firm and it is also analysed that both culture and structure are closely connected. If there is low
power distribution can be found which means that there is a hierarchical structure. Moreover, if
the company have strong culture then it decreases the conflicts. Thus, it helps to raise the
company's productivity level and also Improve its overall performance. Thus, a strung
organizational structure and positive culture do affect the business in positive way and leaders
should also adopt the best leadership style that is participative leadership style so that it will
create positive impact upon the business performance.
ACTIVITY 4
4.1 Explain different approaches to decision making
Their are many approaches which are used by the organization in the decision making (Onyett,
2018). Some of the main approaches to decision making are as follows:
Classical Approaches To Decision Making: It is the approach in which the decision maker
used to clarify all the problem at the starting stage only and on the basis of the problem sets the
Aim and goal to be achieved and after take makes the decisions accordingly to achieve the goal.
In this approach the decision maker used to rank the entire alternative on the basis of their
preferred consequences.
Behavioural Approach To Decision Making: This is the approach of the decision making
which study the decision making in two concept i.e. Bounded rationality and Satisfying.
Bounded study explains that the decision maker are bounded by the limited mental capacity and
emotion also by the factor they are having no control. So the decision taken by the maker cannot
be perfectly rational decision.
Retrospective Approach To Decision Making: It is the approach in which the decision maker
used to select the alternative for the problem which has been identified and on the basis of that
the leader used to identify the strength (Onyett, 2018). After that the decision maker used to
compare with other alternatives and then identifies its drawbacks.

4.2 Explain approaches to risk and uncertainty in the decision making
Rational Approach: It is the best approach which is used by the organization in reducing the
risk and uncertainty in the decision making in this approach data and the stats which are obtained
are taken as the basis to make a decision making. As there is low level of assumption in this
approach it reduce the chance of risk and uncertainty in the decision making.
Practical Approach: It is the another method which reduces the chance of the risk and
uncertainty in the decision making as in this approach the decision maker used to take the
decision on the basis of the practical work which is going on the organization. Decision in this
approach highlights what can be done to improve the performance of the business (Ferrell and
Fraedrich, 2015).
Normative Approach: Is the another approach which reduce the risk and uncertainty as in this
approach the need of the employee are also look and the decision are taken on the basis of that
which helps the organization in making employee happy as they are the one who used to carry
out the activity.
4.3 Explain effectiveness of decision in organization
Organization decision plays a very important role in influencing the work of the HSBC bank as:
Direction: Organization decision which are taken by the decision maker in the organization used
to provide the guidelines or the direction to the employee of the HSBC. The employee of the
organization also used to follow the same and try to achieve the organization goal on the basis of
the decision.
Increase efficiency: Organizational decision also helps the HSBC bank in improving the
efficiency of the work in the organization as the decision taken in the organization is always
taken with the sole motive of increasing the efficiency of work in the organization. Decision in
the organization always centred around the betterment of the employee which eventually result
in increasing the efficiency as the performance of the employee and the efficiency of
organization is interlinked (Anderson and et.al., 2015).
Problem solving: Decision making in the HSBC also helps the organization employee in solving
the problem efficiently as the decision which are taken are taken by keeping the future situation
in mind.

CONCLUSION
After going through above report it has been summarized that there are many different types of
the leadership and management theory. It has been also summarized that there are different
organizational structure. It has been also summarized leadership, innovation, creativity and the
team work used to play a very crucial role in influencing the work in the organization. In the end
it has been summarised that there are many approaches of decision making in real.

REFERENCES
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