TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 1.1 Organizational structure and culture of ASDA as compared to British Airways.............1 1.2 Impact of ASDA's structure and culture on performance................................................2 1.3 Factor's influencing the individual behavior of employee's in ASDA.............................2 TASK 2............................................................................................................................................3 2.1 Comparison of the leadership styles used by the CEO of ASDA and British Airways...3 2.2 Organizational theory practiced by ASDA and its effectiveness on management...........4 2.3 Management approaches used by Asda and British Airways..........................................5 TASK 3............................................................................................................................................6 3.1 Impact of different leadership styles on the motivation of employees in ASDA.............6 3.2 Comparing the application of motivational theories to Asda’s employees......................7 3.3 Evaluating the usefulness of Herzberg’s motivation theory to the managers of Asda.....8 TASK 4............................................................................................................................................9 4.1 Nature of groups and group behavior of Asda.................................................................9 4.2 Factors impacting the development of effective teamwork in the employees of Asda..10 4.3 Impact of technology on team functioning.....................................................................11 CONCLUSION..............................................................................................................................11 REFERENCES..............................................................................................................................13
INTRODUCTION Organizations are the set of individuals working together to accomplish the desired set of tasks. The behavior of the each employee of each department decides and defines the structure of organizational behavior. The contribution of an employee towards organizational efficiency is decided by the way of their interaction and social behavior with others at their workplace (Wagner and Hollenbeck, 2014). The effective leadership of a manager at every level of management is also important in terms of understanding the goals and strategies of the organization and implying them into the management structure. The study of report is based on two different companies, British Airways and Asda plc. It explains about the various functions and actions taken by them in their regular business operations in order to attain a higher level of efficiency in their organization behavior and working. TASK 1 1.1 Organizational structure and culture of ASDA as compared to British Airways Organizationalstructureisahierarchicalconstitutiontowardstheachievementof organizational goals and objectives. It defines the allocation of task and responsibility to the authorized person of the firm to direct and coordinate the aims. However, organizational culture is a process of sharing the organization's values and beliefs. It is to determine the employee's behavior in the firm. Both ASDA and British Airways are among st the leading companies and carrying a formal organizational structure with certain terms and conditions, that are strictly needed to be followed by their employee's. ASDA believes in a tradition of hierarchical organizational structure in which a number of people are reporting to a single manager or supervisor. It has low span of control, covering a wide range of area. It consists of a tall structure, ensuring an effective command. Contradictory to that, British Airways follows a flat structure of the organization where there are comparatively fewer layers of management or sometimes only a single layer with wide span of control (Du and et.al., 2013). With the help of these features, it has an advantage of maintaining a clear and effective communication. Organizational culture has a direct effect on the behavior of its workers. Therefore, ASDA has an affluent philosophy towards work, which believes in maintaining a task culture. Considering their stakeholders as the backbone of the company, it truly focuses on empowering 1
their employees by working in groups or team and provides an excellent service to their customers with a unique and great experience. In contrast to that, BA strictly follows its rules and regulation (Monzani, Ripoll and Peiró, 2015). They believe into a fair dealing with its employees and the customers by maintaining a high standard of regularly updating their base and effectively meeting their needs and demand. 1.2 Impact of ASDA's structure and culture on performance Both organizational structure and culture are the conceptual framework to govern any firm or company. It together creates a high impact on the members working in the organization by controlling their actions or behavior. Therefore, with reference to the“Organizational Structure of ASDA”,If the CEO of ASDA is dissatisfied with the production of its manpower, then he is supposed to look back at its organizational structure to consider few required changes in it. It is due to the fact which determines the surrounding as a main factor of people's behavior. Secondly, ASDA has a strong set of belief to empower its employees, which is another effective tool to enhance the performance of its employees. They generally delegate their low level managers to ensure a greater customer satisfaction. It in turn, enables the employees to maintain a friendly work environment in the organization, which helps them to build a better and effective communication with the customers by resolving their issues and concerns (Abualrub and Alghamdi, 2012). “Organizational culture”too has an equivalent relationship with the performance of its employees. A strong culture of an organization ensures a high performance, whereas a weak culture deals with low level of performances. Therefore, ASDA is liable to maintain a very strong and effective service based culture to beat the high level of competition in the area of customer management. Secondly, ASDA's culture also defines the work efficiency of its employees, contributing to the timely achievement of task. It too helps in building a flexible work environment, that itself enable the employees to accept the need of diversification in work. For being successful in task, carrying an adaptive nature is of utmost importance (DuBrin, 2013). It is required to face the rapid market changes, which together affect the customer's demands. 1.3 Factor's influencing the individual behavior of employee's in ASDA In ASDA, the employees are considered as their business assets and are highly trusted as the internal stakeholders of the firm, with an equal respect and importance. However, the employees are the people who work for predestine pay and an equal number of benefits from the 2
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organization. Therefore, there are numerous factors affecting the behavior of the employee's, which are stated below-Esteem and recognition-ASDA has a high value for its employee's and thus treat its employees with adequate esteem and regard. Each employee in the stated firm works with technicality in their concerned areas and no one else knows their work better than themselves. As a result, the employees in ASDA not only work for earning money (Pinder, 2014). An admiring environment and self respect is another major concerns for them.Rewards or other benefits-The employees in the stated firm are well paid. Rewarding them with other benefits is a part of motivating the employees. It together values their dedicated performance and efforts to take the business in a progressive path.Job security-Being secured with the job is a foremost factor for an employee to work efficiently and with a peace in mind. Therefore, the stated firm too ensures a high level of job security to its employee's that directly clearly defines a lesser chance of getting unemployed (Aydin, Sarier and Uysal, 2013). It together helps the employees in working more promptly. Work culture-It refers to the working environment of a company, where ASDA regular seeks out a healthy job surrounding for its employees. It further helps to build more confidence in its employees and they work harder to timely achieve the organizational goals and objectives. It involves together celebrating the occasions and organizing various fun activities for the employees at their workplace. TASK 2 2.1 Comparison of the leadership styles used by the CEO of ASDA and British Airways Leadership is the sovereignty of directing people with appropriate actions by effectively recognizing the present situation. Different people with varied nature prefer to adapt various styles of supervision. Andy Clarke, who is the CEO of ASDA, believes in adopting an “autocratic style” of leadership into the organization. Due to which, ASDA allows its managers to make most of the decisions for its customers without any involvement of others. It allows the managers to closely judge and supervise their customers by determining their need and demands. It has proven 3
beneficial for the company, where they are now having more number of satisfying customers into their account (Hogg and Terry, 2014). It is hard to challenge an autocratic leader, where they focus more on the hidden things. Some focal points of Andy Clarke are- Providingequalgrowthopportunitytoalltheemployee'sbyconsideringtheir performances. Hiring solicitous and affectionate managers for the team, who feels pride to effectively lead and work in a group. A recognized culture with great approbation for all the levels of employee. Keith Williams, as the CEO of BA focuses on “participative style” of leadership, which is too often known as the democratic style. It values the involvement of all the team members at the time of decision making, but the final decision is in the leader's hand. It helps to boost confidence of employees by together enhancing their knowledge in varied areas (Altindag, Cengiz and Öngel, 2014). Participative leaders conduct such sessions to develop a vision of their employees, which always result in the formation of better and numerous ideas. It together results to build an effective plan for the organization and its success. The prime focus area of Keith William are- For company's amelioration, inspiring the employees to settle or bargain their own heed. Building acknowledgment for the value of firm's ambition. 2.2 Organizational theory practiced by ASDA and its effectiveness on management Organizational theories are made to effectively determine the organization and its structure. It defines the formation of the organization by together specifying its different types or levels. The overall activity of the firm is influenced by its organizational theory. Thus, choosing an effective theory is of utmost importance. Holding the concept of a formal organization, ASDA follows the administrative theory of Henry Fayol. It is established on the principle of dynamic management.Itinvolvescertainmanagementprincipleswhichdirectlyrelatestotask accomplishment (Cruz and Rincon, 2012). Believing in the concept of line and staff, it is composed of various management functions which include planning, organizing, directing, staffing, and controlling. These functions further consist of various management tasks, which includes- Dividing work among the employees which increases both technical and managerial productivity. 4
Assigning a specialized authority increases the responsibility of that person to accomplish the task on time. Hiring disciplined members for the organization who adhere to company's rules and regulations by together honoring their work. Unity of command that states to accept orders from a single supervisor and being responsible to only that person (Huarng and Ribeiro-Soriano, 2014). Unity of direction means to work together in groups, by seeking each others help and support. Timely honorarium to the personnel's to motivate them for better performance. Stability of tenure, which ensures job security to the employees. Fairness and equal justice in the organization provides encouragement to the employees to take initiative in work. The last but foremost step lies in the concept of Esprit de corps, which states that “The strength is always in being united”. It provides a sense of belongingness to the workers whichfurtherhelpstoenhancetheirperformanceleadingtowardsanincreasing productivity of the firm (Phegan, 2013). Thus, it has been proven that the effectiveness of management is purely based on these organizational theories. 2.3 Management approaches used by Asda and British Airways Different company uses different theories of management, which is fully dependent on its organizational structure and formation. Focusing upon the administrative theory of Henry Fayol, ASDA is following the classical approach of management. It has a functional organizational structure that believes in maintaining effective relationship with its employees. They trust their employees and truly believes that whatever the employees will do, they will make it best out of it.Asaresultofwhich,ASDApursuesanactivelisteningcombinedwithitspassive management approach. Thus building the capacity of its employees by providing a cultivating work environment to them (Arnold and et.al., 2015). It helps employees to build a clear understanding of their organizational goals and objectives to perform at their best. Therefore, the key aspects of ASDA are- Identifying the area of concern and specifying solutions of it. 5
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Work collaboration is of utmost importance, where the people tends to work in groups or team together focusing upon the needs. However, being a divisional organizational structure, BA focuses on applying more of a steering approach towards the management by hovering a control over them. They give more importance to the maintenance of quality in its each and every department. It emphasis on training the employees to know their best about the procedures of the company and successfully qualify over the organizational targets. The key points of BA are as follows- A clear description of plans and objectives to the staff (Killen and et.al., 2012). Specific task evaluations with proper correction and report. Strict assessment of the actual task done and further comparing it to the required standard. TASK 3 3.1 Impact of different leadership styles on the motivation of employees in ASDA Leadership has a major role in motivating the employees of the organization. ASDA plays a role in autocratic styles of leadership. However, it could be now step forward towards the democratic or participative style. It is the most effective approach when the company is required to make a decision at short time period. It gives more authority to the leaders as the power of making a final decision goes into their hands (Miner, 2015). Various approaches of ASDA leaders, and there effects on employee motivation are as follows- At times, when certain changes takes place into the organization, the leaders can make decisions on their own and direct the staff to follow the same. This approach might make the employees feel a bit neglected. Contrary to that, if the leader follows a consultative approach by involving the staff into the process of decision making, by creating awareness about the organizational change taking place (Clarke, 2013). As a result to it, the employees will feel valued and motivated towards the organizational goals. Already working on the concept of teamwork is the best approach for the ASDA leaders. This particular outlook encourages the team members to take responsibility of their work by accomplishing the task on time. 6
These approaches works on all leadership styles, if the leader is composed of the required qualities, which includes- Being passionate towards the work. Encouraging employee's to work coherently and participate in organizational activities. Effective communication skill to clearly state the organizational goals to the employees (Pierro and et.al., 2013). Strong convincing power to make the employee’s understands the importance of adapting the organizational change. 3.2 Comparing the application of motivational theories to Asda’s employees As per Maslow's Hierarchy of Needs, the management of Asda is responsible to provide basic needs of life to all their employees, which are food, clothing and shelter. This would help them in motivating their employees for effective working in return of fulfilling the basic needs. Along with this, the employees should also provide with safety requirements during their working hours. Asda need to make the employee laws by keeping the viewpoint of protecting the employees' requirement. However, the higher level management of Asda could provide job security to the effective employees by the use of life insurance cover that would stimulate and encourage the employee to stay close to the company (Greenberg and Colquitt, 2013). Moreover, advanced technology of Asda could be used so that employees could feel and kept safer from any injuries. The need of employees recognition and respect for their hard work could be used as motivation for others employees to perform well in their business activities. These all needs would develop the personal growth among all the employees of Asda which would contribute towards their objectives (Canina, Palacios and Devece, 2012). By comparing this to Vroom theory of motivation which states that the employees of Asda are motivated only when they see that their efforts are getting converted into desired rewards. This expectancy theory consists of three factors. First, the management should be aware of types of rewards that increase the employees' motivation. Second, management should be aware of expectation of each employee which differs from person to person. Third, management should assure the employee that their efforts will result in better rewards. 3.3 Evaluating the usefulness of Herzberg’s motivation theory to the managers of Asda To evaluate the understanding and usefulness of the motivation, the organization has to study the market and its premises for determining environment. By the use of Herzberg’s motivation 7
theory, the management would ascertain the factors that cause satisfaction or dissatisfaction to the managers of Asda. It describes about the factors which are causes of job satisfaction which motivates the employees and reasons for job dissatisfaction (Chand, 2015). The factors affecting employee’s job attitude and motivation are: Hygiene Factors that cause job dissatisfaction- ◦Working condition – The Asda's working environment for managers can de-motivate their working performance and its effectiveness. ◦Salary – The discrimination and negotiation in salary can be the cause for the de- motivation of employees. Discrimination in pay scale of male and female workers employed with equal level of work in the company causes dissatisfaction among them. ◦Company policy – The policy framework of Asda could decrease the motivation level of the employees. The regulation framework created by the employee retirement scheme and working hours policies are the major factors which demotivates the managers' effectiveness to operate their working activities (Loots and Grobler, 2014). Motivation factors which encourages job satisfaction - ◦Growth – Asda could generate the training process to develop the managers. The advancementbyattainingprofessionaltechniquesforeffectiveworkingwould increase their abilities and organization's productivity. ◦Responsibility – By providing authority to the managers to take decision at the time of doing task during the absence of leader or head supervisor, could help in increasing the job satisfaction. It would also encourage the managers' ability to guide the other new employees to perform the job (Ghaffarzadegan and Andersen, 2012). ◦Recognition – Asda could use the method of providing respect and recognition at their work in order to motivate the managers. TASK 4 4.1 Nature of groups and group behavior of Asda In an organization, a group is described as a collection of individuals working under a same section or department of the management. Further, the meaning of group was characterized as a unit of people in an organization having similar point of view or related personal objectives. 8
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However, groups are divided in two types as per their nature, behavior and characterization, and formal and informal groups (Mansouri and Rowney, 2014). The main variation among both the types of groups is their official sense of formation and their typical principle functions.Formal groups and their behavior– The members of formal groups are committed to some defined set of values and structures of overall functions to be performed by them. In Asda, there are many formal groups at each and every level of management and production department. They are responsible to accumulate and generate resources necessary for completing their assigned tasks. In Asda, formal groups are working as their role structure for developing a sufficient level of morale for their assigned projects. The head members of the groups are having enough control by their leadership powers to coordinate specific roles to their subordinates to utilize the availableresources(Rooke and Torbert, 2005). It improves productivity and quality of the employees' ability and working capabilities. Informal groups and their behavior–These groups are different from the official groups of the organization, from the objectives and formation viewpoint They are the groups which are formed by the employees working in an organization. Informal groups are generally made through employees' behavior, nature, thinking, social liking, etc. In Asda, informal groups are less permanent and formed through interpersonal relationship with no leaders (Greenberg, 2013). The members of such groups in Asda are more focused on their personal goals. 9
4.2 Factors impacting the development of effective teamwork in the employees of Asda The success or failure of a group depends on some factors that affect the working and behavior of the group members. The main factors affecting the group behavior are: Group processes Group structure Group resources They are further defined and separated as:Group processes– The function of decision making for a group is superior than any other function. In the decision making process, group generates information for various alternatives from the available knowledge which further helps in making effective solution and legitimacy (Mansouri and Rowney, 2014). In Asda, the power of decision making in groups are benefited, but it takes long time and dominates subordinates from participating in the group. The group leaders and members are pressurized to obey the decisions made by the group head. It also affects the communication level of Asda as it gives rise to management conflict and inefficient leadership. Group Structure– It refers to the factors that are essential for building group and defining its structure. The factors shaping the group structure are: ◦Group Size and roles – The number of members in a group decides their working capacity as a team. The size of the group helps in maintaining communication level among the members. In Asda, size of groups is maintained by the management which assists them in deciding roles and responsibilities of the team units and balancing the 10 Illustration1: Types of groups
teamforeffectiveteamwork(GhaffarzadeganandAndersen,2012).However, company faces roles conflicts which disrupt the group working and efficiency. ◦Group norms – It refers to the level of standard which describes the behavior of an individual which is to be maintained by him as a member in the group. In Asda, the main responsibility of the leaders of their groups is to maintain the balance of team and its functioning at every level in order to achieve organizational goals. Group resources - They are described and characterized as the members' abilities, skills and personalities, which are required to achieve specific tasks that are specified by the management (Canina, Palacios and Devece, 2012). The Asda team, as a whole is responsible for accomplishing the objectives by utilizing members' resources within the stated duration. 4.3 Impact of technology on team functioning The management can analyze the impact of technology by assessing its scope and use in the organization. The change could be negative or positive which depends on balance of technology incorporated and abilities of an organization's team. The changing technology can affect traditional techniques of supervision and its relationship with the other team members. In Asda, the upgraded technology allows the people to communicate quickly, share their ideas, and transfer information regardless of different physical locations (Greenberg and Colquitt, 2013). It alsoenablestheAsdasupervisortomonitor,manageandcontroltheactivitiesofthe subordinates without reporting to them directly. However, in Asda, structured teams are used to solve any problem or to overcome some critical situation. The structuring of IT sector and systems in the teams are done as a part of an overall plan which results in attaining different processes and techniques to handle the situation (Greenberg, 2013). CONCLUSION It can be concluded from the above report that understanding the topic of organizational behavior is an important aspect to be covered by the management. It defines about the rules and regulations, the structure and culture of an organization should be such that all of these factors would complement each other. It also focuses on the effectiveness of leadership in any organization that can motivate the team and enhance their working capabilities to achieve their desired goals (Monzani, Ripoll and Peiró, 2015). The report covers the important section of 11
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organizational theories and motivational theories that acts as theoretical view and prospect for the management in order to take better decision over the business operations. The report has studied about the organizational behavior of two different companies and shown their various aspects which were also compared to define their conceptual structure, culture and approaches for accomplishing their desired objectives. 12
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