Organizational Culture and Performance Impact

This assignment analyzes the impact of organizational culture and structure on company performance. It uses case studies of City College and Enterprise to examine different leadership and motivation styles employed by each organization. The analysis highlights the importance of teamwork and a positive organizational culture for boosting sales and overall success.

ORGANIZATION BEHAVIOUR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different types of organizational structures and cultures......................................................1
1.2 Impact of relationship between an organization’s structure and culture on the performance
of the business..............................................................................................................................3
1.3 Various factors that might influence the way individuals behave at work............................4
TASK 2............................................................................................................................................4
2.1 Comparison of effectiveness of different leadership styles its impact on the two
organisations................................................................................................................................4
2.2 & 2.3 Link of organization theory with the styles of management & different approaches
to management and leadership theories.......................................................................................5
TASK 3............................................................................................................................................6
3.1 Impact of different leadership styles on behaviour of staff of City College and Enterprise. 6
3.2 Comparison on the application of the different motivational theories that City College and
Enterprise might adopt and its effect on workforce.....................................................................7
3.3 Applicability of both the above given motivational theories.................................................8
TASK 4............................................................................................................................................8
4.1 Nature of groups and group behaviour within the workforces of City College and
Enterprise.....................................................................................................................................8
4.2 Factors promoting the development of effective team work.................................................9
Factors that inhibit development of effective team work............................................................9
4.3 Impact of technology for the organization.............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
One of the most crucial tasks for organizations is to manage their business operations
more effectively. The whole behaviour of an enterprise depends on several activities that are
organized by the management team. Behaviour of any company can be defined as a procedural
study of human behaviour that includes various groups, teams, management and leaders
(Forshaw, 2006). Within this respect, the present study takes place on the basis of different
leadership and management styles. For the same, the case scenario of City College which is now
a part of City Group plc. They are dedicated to work with local communities and provide many
learning opportunities to many students. Another organization which is taken into consideration
is Enterprise Car Rental which operates fleets of cars exceeding one million vehicles worldwide.
The main aim of this organization is to hire people who can play the role of a leadership
effectively and help to grow the business for the longer term. In this regard, the present study
discusses the relationship between organizational structure as well as culture of both the cited
firms in the case studies. Several concepts have been talked about regarding leadership,
management styles as well as impact of technology on team functioning.
TASK 1
1.1 Different types of organizational structures and cultures
As per the given case scenario, both the City College and Enterprise follows different
organization structure as well as culture. Culture refers to the set of different values, beliefs as
well as norms of individuals as per their religion and countries from where they belong to. Edger
Henry Schein born in 1928 is a renowned professor at the MIT Sloan School of Management
(King and Lawley, 2012). He has gained huge popularity due to his one of the well-known
theories about organization culture. He believed that there are basically three types of
organization culture:
Artifacts: It is the first level and visible element in culture and is clearly recognized by
people and their living attributes. It can be judge by dress code, furniture, art, work
climate, organization structure, furniture, behavior of employees etc. It defines that some
firms follow professional culture whether some of them follows weak culture which is
not willingly accepted by workers.
Values: It is the next level and theory given by Schein where he determines that the
whole culture belongs to the different values of employees within an organization. In
1

deciding the culture of any company, values play the most important role as the thought
process and attitude of workers are having huge impact on the particular organization
(Aquinas, 2006). The mind-set which is individually associated with people is highly
influenced the culture at workplace.
Assumed values: This level determines the assumed values of employees which cannot
be measured but it does make a difference to the culture of any organization. All the inner
aspects of human nature come under this level.
From this model, it can be determined that an organization cannot adopts any type of culture
in a single day. Further, there are various kinds of cultures which are as follows:
Power Culture: In this type of culture, control is considered as the most important
element where companies can take any type of decisions quickly (Robbins and et.al.,
2013). However, in such kind of decisions, employees are not the part of it which might
leads to influence their behavior in a negative manner.
Role Culture: This is another type of culture in which individual employees perform
their tasks individually. There are different duties which are assigned to different
employees and they need to perform their specific given tasks. Here, workers can
perform all their tasks with full responsiveness.
Task Culture: Under this type of culture, team work plays a main lead role as various
teams are formed at the workplace (Chandan, 2004). At this situation, all team members
require to follow the rules. In case if any team member or a person will not comply with
the team decision, then the work of whole team suffers.
As per the above discussion, City College follows the role culture as there are many
departments that work together such as: an admin assistant working with the Human resource
manager etc. On the basis of this culture, all the employees of different departments work
individually and fulfil all their responsibilities and duties as well. On the other hand, Enterprise
follows power culture as all the decisions are taken by top management.
In addition to this, there are different types of organizational structure which are as
follows:
Hierarchal Structure: Here, different level is being formed in which each level is one
above other. However, a communication gap is considered as a major role in this type of
structure.
2

Functional structure: It is another structure in which organization is divided into
different groups as per the specialization of employees. However, responding towards
changes is the most crucial task for them. These different groups help in achieving better
productivity as well as increased market share.
Divisional Structure: In this type of structure, all the large organizations isolate into the
large sections of the company business into semi-autonomous groups (Shapira, 2002).
From the above discussion, it can be determine that City College follows functional structure
as they work within sections or different departments as per their specific purpose. On the other
hand, Enterprise Car Rental Company follows the divisional structure due to its different sections
within different geographic reasons. One of the major aims of this organization is taking
appropriate care of its customers.
1.2 Impact of relationship between an organization’s structure and culture on the performance of
the business
Organization culture and structure both are interlinked with each other. It highly affects
the performance or employees as well as organization. With the help of set structure and
appropriate culture, employees commit to work effectively and easily enhance their sales margin.
As per the given case scenario, there are different departments in the City College such as human
resource, teaching department, administration department etc. After acquiring this college by
new ownership through a private investor, named Mr Wakefield, the entire management system
have been changed (Day, 2007). Due to its different departmental structure, they follow
functional structure and want to become the best college with the regular growth. Under this
structure, all the employees work according to their specialization within their different fields. It
is the most effective way through which new innovative ideas can take place which helps in
improving the productivity of organization. It clearly determines the positive impact of the
organization structure of City College on all its employees as well as on their business
operations. Due to this sudden change, role culture is being followed by City College as it helps
the management team to achieve all their objectives.
With the help of Edger Schein’s model, it can be interpreted that by using this model
leaders will be able to understand the various cultural elements (Holyoak, 2003). They can even
try to change the basic assumptions of a given culture and also improve the effectiveness of
company. However, there are various negative impacts which are associated with the functional
3

organizational structure as it will take time to change the entire process. Due to these changes,
competitors can easily move forward and might leads to decrease the market share of company.
In this regard, it can be stated that it is very much important to follows appropriate culture and
structure in both the cited firms so that employee performance can be boost up. They can
perform all their tasks effectively and easily maintain their sales.
1.3 Various factors that might influence the way individuals behave at work
Behaviour of a person highly depends on the various situations as well as culture and
structure follows by them. There are several factors which can affect the behaviour of employees
at the City College and Enterprise.
The college principle Mr. Adam Wakefield has considered that person’s ability and
willingness to do any work is one of the most common factor which affects his/her behaviour.
Due to the new structure and working pattern of new principle most of the works are facing
several challenges (Nelson and Cooper, 2007). It requires a mental stability to work well and
keep up growing with the given chances. Further, each and every individual usually gives their
different reactions according to the situation. For the same, principle of City College needs to
provide right job to the right person at the time of change. It highly influences the behaviour of
individuals and they are able to perform all their tasks as per their area of interest. It helps in
enhancing the productivity and improved performance of company.
However, enterprise manager need various skills through which he can motivate, lead and
influence others. It is the most effective way to grow the business for the long term. Another
major factor is considered as a knowledge and area of expertise of individuals. Here, several
management and training programmes which help in providing workers with the skills required
to lead others. By having appropriate skills individuals behaviour highly affected. For the same,
Mr. Wakefield also requires to enforce appropriate recruitment as per the capabilities and skills
of individuals.
TASK 2
2.1 Comparison of effectiveness of different leadership styles its impact on the two organisations
There are different types of leadership styles which are as follows:
Autocratic leadership style: In this type of style managers take their own decisions and
do not take any suggestions from workers.
4

As per the given case scenario, this leadership style is followed by Enterprise firm as all
the decisions are taken by top management team (Parikh, 2010). Here, the leader conveys the
decision to staff and they have to work within the scope of that.
Democratic style: This is another type of leadership style in which final decisions are
taken by the top management but employees can also participate in these decisions.
As per the given case scenario, it is one of the most suitable styles for City College
because consultation is highly required by Mr. Wakefield as City group was acquired by new
owner ship through a private investor. He requires appropriate suggestions for better future
improvements.
This is contrary style to autocratic and it would definitely have good impact on both the
organizations as employees feels like an important part of organization.
2.2 & 2.3 Link of organization theory with the styles of management & different approaches to
management and leadership theories
Organization theory can be described as the analysis of different organizational designs.
It is highly associated with its response towards the external environment (Chandan, 2004).
However, both the City College and Enterprise follows different organization structure as well as
culture.
College is working under different departments such as teaching, finance, human
resource department etc. For the same, Fayol’s classic administration has been adopted by them
in which 14 principles of management have been presented by Henry Feyol. They always
encourage employees to come up with good ideas, so these can be discussed, adapted and
implemented throughout the business.
On the other hand, Mayo’s human relation approach have also been adopted in which all
the employees take part in the decision making process of company (Shajahan, 2007). It is the
most effective way through which satisfaction level of workers can be enhanced.
As per the scenario of Enterprise car rental company Herzberg neo-human relation
approach is one of the most suitable as employees are satisfied as per their level of understating.
By using Fayol’s different principles of management they are able to conduct various training
sessions for all their workers. Through this, they are able to improve their job performance and
enhance the level of productivity.
5

There are different approaches for management have been used by both the cited firms
such as: a
TASK 3
3.1 Impact of different leadership styles on behaviour of staff of City College and Enterprise
There is different type of leadership styles which highly affects the overall productivity
as well as motivation level of workers. These styles are as follows:
Transactional leadership: This is one of the most effective leadership style under which
top management team of any organization motivates their workers through rewards and
promotions (Ruiz, 2004). Leadership doesn’t mean getting thing done. Motivating employees
leads them towards better performance and change their attitude towards working. Teachers and
staff members of City College are involved in different activities and they got rewarded for their
exceptional performance. It boosts up their confidence level and motivates them to perform
6
Approaches to
management
According to the given case scenario, participative leadership theory is
followed by City College. Here, employees are free to give their ideas
and talk with management about any respective issues. With this, an
employee feels that they have special status in the company and they
are being valued. On the other hand, autocratic leadership theories
followed by Enterprise as all the decisions are taken by top
management people.
Leadership
theories
Moreover, the human behaviour management approach is use by both
the organizations i.e. City College and Enterprise. It clearly
determines that employees should be motivated by their top
management people and they always need to provide better
opportunities to their workers.

effectively. On the other hand, Enterprise always rewards hard work and staffs who achieve high
levels of customer satisfaction have the chance of promotion.
Transformational Leadership: These are the leaders who always challenge their
workers. Developing better relationship with employees is one of the most effective concerns of
this type of leadership (Kinicki and Kreitner, 2006). City College always challenge their teaching
department to produce and deliver higher education courses.
City College can adopt transformational leadership style in order to adapt all the changes
effectively Mr. Wakefield can understand the changing criteria and easily resolve the problems
related to their workers. It is the most effective way to boost up the confidence level of workers as
well. Change can also be noticed in the behavior of employees. On the other hand, transactional
leadership style follows by Enterprise with the help of this; they can respond more closely to
customer needs and attain competitive advantage over its rivals. They always reward hard work
and biggest improvement is recognised through the Enterprise newsletter or by membership of the
Enterprise ‘Elite Club’.
3.2 Comparison on the application of the different motivational theories that City College and
Enterprise might adopt and its effect on workforce
In order to motivate their workers both the cited firms follows different motivational
theories which are as follows:
Maslow's Need Hierarchy Theory: Abraham Maslow presented five human needs which
need to be fulfilled i.e. physiological needs, safety, love/belonging and self-actualization. This is
also considered as independent approach which enables Enterprise employees to have ownership
of many of their activities (Ingram, 2009). This is the best motivation style which can be adopted
by Enterprise Car Rental Company according to which everyone has their own needs for water,
food, warmth and safety.
It requires to the met by empowerment of employees to take their self-decisions. With the
help of this theory, workers feel motivated to use creative skills and perform more effectively. It
also includes various points such as praise, recognition or having more responsibility. Further, it
can be stated that autocratic style is inappropriate for them for their daily routine and for the
same Maslow’s motivation theory is one of the best suitable to enhance their productivity.
Herzberg's Motivation Theory: This is also defining as two factor theories which defines
that there are mainly two factors i.e. hygiene and motivation (Schermerhorn and et.al, 2011). It
7

determines that College premises will be neat and clean so that teachers feel safe. Principle of
the college can adopt this strategy in order to motivate their staff members. Mr. Wakefield can
create an environment through which workers feels satisfied and perform all their tasks
effectively (Hoffmann, 2007). They can provide them higher job satisfaction through increment
in salaries, job security, promotion etc.
3.3 Applicability of both the above given motivational theories
Enterprise can successfully apply Maslow’s need hierarchy theory by understanding
needs and demands of their workers. One of the main aims of company is to satisfy the needs of
customers by providing them quality services. By providing them membership of Enterprise
‘Elite Club’ self-esteem can be reinforced. Further, it is the best suitable motivation theory
follows by Enterprise. Moreover, top management team of company can also empower their
employees to make decisions and it improves their sense of worth and self-esteem (Martin,
2005). It also helps them to use creative skills within their role and motivates them to perform
better.
On the other hand, for better performance City College can provide better rewards and
promotions to all their teaching staff. It motivates them to perform more effectively. For the
same, college premises should be neat and clean so that better impression can create on the
mind-set of students family members. There is various motivation factors like behaviour of
peers, growth of employee are those which affect employee’s performance. So proper career
planning should be done.
TASK 4
4.1 Nature of groups and group behaviour within the workforces of City College and Enterprise
Groups are the collection of all those people who are sharing common goals and
objectives. In these groups, people usually discuss their ideas with each other and try to give
better output for the same. Nature of group and group behaviour within the workforce of City
College and Enterprise can be defines with the sense of unity. Every group member need to
perform effectively with each other (Chandan, 2004). They needs to join with some sense of
Harmony and the whole group should work with unity and motivation. In case of having
differences in all their decisions clashes may occur between the group members and it might
hamper the overall work quality. Workforce of City College should have sense of unity so that
they can accept the changes and work with the new principle of college Mr. Wakefield. In
8

addition to this, there should be appropriate verbal or non-verbal communication within the
group members is required (Perkins and Arvinen-Muondo, 2013).
4.2 Factors promoting the development of effective team work
There are various factors that could make a team effective and these factors are as follows:
 Interpersonal Relationship: Developing better relations with each other within the team
through proper communication is considered as a most important factor to promote
effective team.
 Leadership: By making employees involved in the decision making process job
satisfaction level can be enhanced (Robbins, 2009). Appropriate leadership brings several
changes within the team and motivates workers to perform all their tasks more
appropriately. Better leadership promotes effective teamwork.
Mr. Adam Wakefield use participative leadership style into all their business operations
through which he is able to satisfy all the workers needs and demands.
Factors that inhibit development of effective team work
 Diversity: In case of having diverse employees from different background and culture
they are not able to effectively work together. Due to this factor team members are not
able to share their views, ideas and knowledge with each other. It hampers the overall
growth and team performance as well.
 Lack of trained staff: This is another most common factor which hampers the team work
and for the same company should provide effective training to all their workers (Perkins
and Arvinen-Muondo, 2013). It is highly essential to have trained and qualified staff in
order to manage work appropriately.
4.3 Impact of technology for the organization
Due to the rapid advancements within the field of technology most of the companies
nowadays are adopting latest technology for making their business processing smoother. With
the help of new technologies companies can save their lots of time and all the members of staff
can easily interact with each other as well.
Within this regard, principle of City College can use various advanced technologies such
as staff members can coordinate with each other through the use of e-mails (Rasche, 2011).
Presentations and videos can be presented to educate the students. On the other hand, Enterprise
can also use these same tools for promoting their services and giving presentations in business
9

conferences and meetings. Further, client base can also be enhanced with the help of
communicating with customers through social media and websites.
CONCLUSION
From the above study it has been articulated that organization culture and structure are
having huge impact on the performance of company. Both the City College and Enterprise
follows different leadership and motivation styles in order to motivate their workers and enhance
their productivity. For the same, it is being concluded that effective team work and following
best culture is the most effective way to increase the sales of company.
10

REFERENCES
Aquinas, P. G., 2006. Organisation Behaviour. Excel Books India.
Chandan, J., 2004. Organizational behaviour. New Delhi: Vikas.
Day, D., 2007. Structuring the Organization for Leadership Development. Emerald Group
Publishing Limited. 4(2). pp.13 – 30
Forshaw, C., 2006. Organizational Behaviour in a Global Context. University of Toronto Press.
Hoffmann, S., 2007. Classical Motivation Theories - Similarities and Differences Between Them.
GRIN Verlag.
Holyoak, L., 2003. Body and Organization. Leadership & Organization Development Journal.
24(6). pp.353 – 353.
King, D. and Lawley, S., 2012. Organizational behaviour. Oxford: Oxford University Press.
Kinicki, A. and Kreitner, R., 2006. Organizational Behavior: key concepts, skills, & best
practices. 2nd ed.. McGraw Hill .
Martin, J., 2005. Organizational Behaviour and Management. Cengage Learning EMEA.
Nelson, D. and Cooper, C. L., 2007. Positive Organizational Behavior. Pine Forge Press.
Parikh., 2010. Organizational Behaviour. Tata McGraw-Hill Education.
Perkins, S. and Arvinen-Muondo, R., 2013. Organizational Behaviour: People, Process, Work
and Human Resource Management. Kogan Page Publishers.
Rasche, A., 2011. Organizing Derrida organizing: Deconstruction and organization theory.
Emerald Group Publishing Limited. 32. Pp.251 – 280.
Robbins, S. P., 2009. Organizational Behavior, 13/E. Pearson Education India.
Robbins and et.al., 2013. Organisational behaviour. Pearson Higher Education AU.
Ruiz, M. D., 2004. The influence of employee organizational citizenship behavior on customer
loyalty. International Journal of Service Industry Management. 15(1). pp.27 – 53.
Schermerhorn, R. J. and et.al., 2011. Organizational Behaviour. John Wiley & Sons.
Shajahan, S., 2007. Organisation behaviour. New Age International.
Shapira, Z., 2002. Organizational Decision Making. Cambridge University Press.
Online
11

Ingram, D., 2009. How to Apply Motivational Theories in the Workplace. [Online]. Available
through :< http://smallbusiness.chron.com/apply-motivational-theories-workplace-
10962.html>. [Accessed on 22ne February 2015].
12