Leadership Styles and Employee Performance

This assignment is a report that examines the influence of different leadership styles on employee performance within two organizations: City College and Enterprise. It explores how various leadership approaches, such as democratic, autocratic, and laissez-faire, affect employee motivation, teamwork, and overall productivity. The report also delves into motivational theories and group dynamics relevant to enhancing organizational effectiveness.

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Table of Contents
Introduction................................................................................................................................................3
Ac 1.1 Organisational structures and culture in City College and Enterprise Car Rental...............3
AC1.Relationship organisation structure and performance................................................................4
AC1.3 Factors influencing behaviour of individuals.............................................................................4
AC2.1 Effectiveness of different leadership styles and its impact on the two...................................5
AC2.2 linking of organisational theory to management style..............................................................6
AC2.3 Leadership theories in context of the organisations.................................................................7
AC3.1 Impact of different leadership styles on the behavior of staff at City College and
Enterprise...................................................................................................................................................7
AC3.2 Application of motivational theories and their effects...............................................................8
AC3.3 Implementation of motivational theories and practices in City College and Enterprise.......9
AC4.1 Nature of groups and group behaviour within City College and Enterprise Car Rental....10
AC4.2 Factors that could affect the team work in City college and Enterprise...............................10
AC4.3 Role of technology on performance of City College and Enterprise Car Rental................11
Conclusion...............................................................................................................................................12
References..............................................................................................................................................13
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Introduction
Organisational structure and behaviour some of the prominent attributes, which are
accountable for altering the functionality and ultimately profitability. Different
organisations across the globe are known for attaining different work cultures, attitude,
structure and behaviour (Fisher, 2015). It is found that there is close relation between
the organisational structure and the profitability it makes in the business environment.
This report is focused on the organisational behaviour and structure that is possessed
by City College and Enterprise Car Rental, which are the market leaders in their
respective fields. The report features the relationship between organisational structure,
performance and style of leadership.
Ac 1.1 Organisational structures and culture in City College and Enterprise Car
Rental
There are four different cultures for organisations that are described by Charles handy,
which are depicted below.
 Power culture
 Task culture
 Role culture
 Person culture
As far as organisational culture is concerned for City College and Enterprise Car Rental,
it is found that both the organisations possess different cultures. City College is
comparatively small organisation which possesses power culture (Folsom, 2014). The
power distribution can be seen among administrative sections, Human resource and
teaching department in decreasing manner. On the contrary part organisational culture
in Enterprise Car Rental is quite different. The organisation has acquired task and role
culture. Basic function area for the organisation is to enhance the service utilisation,
which is accountable for deriving task culture in organisation.
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Considering the dimension of Edgar Schein Iceberg model, it is found that different
organisations have different assumptions for their activities. There are certain
objectives, which are made visible to the world such ethical considerations and values
in City College and Enterprise Car Rental. On the other hand certain elements are kept
hidden and unapproachable (Bussing-Burks, 2009). These attributes are responsible for
leaning the organisational culture in a particular manner. The organisational structure is
also affected by the physical spaces, values and behaviours along with beliefs and
assumptions.
AC1.Relationship organisation structure and performance
There is a deep relationship between the organisational structure and the performance
associated with it. If the organisational structure is found to be matching with the set
objectives and approaches, the managers in organisations are likely to attain more
opportunities. In the given case study, City College is found to possess less hierarchical
structure. However, the organisation possesses power culture more, but scale of
profitability is found to be low.
On the other hand, Enterprise Car Rental possesses more steep organisational
structure. The organisation is more task oriented thereby it can be seen that employees
in Enterprise Car Rent are more Task oriented and there is keen focus on enhancing
the customers size for the organisation. If the comparison is made on the performance
of the organisation, it is found that task oriented structure is more fructifying for the
organisations as seen in the case of Enterprise Car Rental, which has attained more
revenue and expansion (Ventrice, 2010). An influence of organisational structure can
also be seen over the competency of the organisation. Enterprise Car Rental is found to
be more competent in comparison to City College. There are remarkable differences in
the performance of the employees in both the organisation. Companies that possess
more steep structure are generally noted for high performance and profitability.
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AC1.3 Factors influencing behaviour of individuals
There are several factors, which are accountable for influencing the behaviour of the
employees and individuals in organisations, which are explained in the following
manner.
Collaboration of peers: As seen in case of Enterprise Car Rental, assistance from the
peer and colleagues is highly influencing in altering the behaviour of the employees.
Team spirit and encouragement are responsible for deriving the massive success to the
business of Enterprise Car Rental (DuBrin, 2011). Similar, factors can also be seen in
City College, where employees are more productive and possess positive attitude.
Thus, assistance of the other employees is one of the main factors that can alter the
behaviour of individuals.
Work environment: The environment in which the employees are working is also
accountable for altering their behaviour. Friendly environment with less anxiety factors
is helpful in bringing positivity in employees and enhancing the pace of work as seen in
case on City College and Enterprise Car Rental.
Work pressure: Extreme work pressure is also responsible for changing the behaviours
of the employees towards organisations and its policies (Lussier, 2014). It is found that
organisations that are known for high work pressures such as Enterprise Car Rental
often possess the employees that are exhausted from the policies and less motivated.
On the other hand, organisation with less work pressure such as City Colleges is noted
for more employee satisfaction and good attitude towards work.
AC2.1 Effectiveness of different leadership styles and its impact on the two
Leadership is all about motivating the employees towards performing the job in order to
achieve planned goals and objectives (Fisher, 2009). There exist different leadership
style such as autocratic, democratic and many more. It is vital for a leader or a manager
of the organization to adopt productive leadership style as it primarily affects the
performance of the workforce. Autocratic leadership style is one where the leaders give
instructions to the employees and take decision themselves. Autocratic leadership style
is effective when the employees requires close supervision from upper level however,
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this style fails when the employees willing to participate each and every operational
activity of the organization. Apart from this, democratic style primarily focuses on
participative working environment where the employees involve in decision making
process and also able to share their views at any time. City College is a well developed
UK based college that imparts teaching, administration and human resource
departments (Developer, 2017). It will be beneficial for the leaders of City College to
adopt democratic leadership style as it ensures the team work and integrity at
workplace. Further, enterprise rent a car is an employee centric company which focuses
on fruitful performance of employees. For this purpose, the managers of enterprise
acquire open door policy which is an example of democratic leadership style. Apart from
this, laissez faire leadership is other leadership style that could affect the performance
of both the organizations in negative manner. The laissez faire leadership style
emphasis on lower supervision and lack of regular feedback which impacts the
productivity of employees.
AC2.2 linking of organisational theory to management style
Organisational theory describes that the managers in organisations have to analyse the
set objectives and the available resource and formulate the strategies accordingly. It is
found that both the organisations given in case study have different objectives and
functionality. For this reason, the management style for both the organisation is also
required to be different. Enterprise Car Rental is active in service areas and provides
car renting services to the customers. Therefore, it becomes essential for the managers
in the organisation to adopt democratic management style (Nelson, 2015). The
manager in Enterprise Car Rental is required to analyse the needs of their customers
and act in respective manner. One major reason behind such approaches is the need
for sale enhancement, which is entirely dependent over customers’ attitude.
On the other hand management in City College appears to be more complying with
autocratic management style. Analysing the needs for the organisation, it is found that
management in City College require less hierarchical functioning. This is also one of the
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basic reasons that are responsible for deriving power culture in the organisation.
Decisions are taken by the top management or administrative departments with lesser
involvement of subordinates, which are required to be fulfilled by employees or
teachers. Thus, it can be found that management style in the organisations can be
linked to the organisational theories.
AC2.3 Leadership theories in context of the organisations
As far as management style is concerned for the two organisations given in the case
study, it is found that due to differences in their functionality and needs, both the
organisations adopt different leadership styles. Execution of the work in City College is
based upon the power implementation. For this reason, autocratic style of leadership fits
best with the organisation (Mosley and Irvine, 2014). Administrative department of the
City College is found to establish the strategies for which human resource department
comes under action for proper implementation.
On the other hand, Enterprise Car Rental is found to possess the democratic style of
leadership. Since, the business made by the organisation is dependent upon the prefer
abilities of the customers; therefore, it becomes essential for the managers in Enterprise
Car Rental in involve the perspectives of employees and customers to attain the
profitability and sustainability. For example, the CEO in Enterprise Car Rental has to
acquire the suggestions from general managers, branch managers and area managers
of the company, which are accountable for deriving modifications in strategies.
Thus, it can be seen that due to differences in objectivity, both the organisations
possess different styles of leaderships.
AC3.1 Impact of different leadership styles on the behavior of staff at City College
and Enterprise
Different leadership styles affect the behavior and performance of employees in diverse
manner. Enterprise and city college are well developed firm which imparts high number
of employees therefore it is vital for the managers of both organizations to adopt
effective leadership style such as democratic and transformational leadership (Chen
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and Silverthorne, 2005). Autocratic leadership style makes the working environment
stressful where the employees focus more on completing the task rather than effective
performance. While the democratic leadership style would enhance the productivity of
employees working in City College and enterprise as the workforce will feel motivated
as their opinions within the organization being valued (Gastil, 1994). Apart from this,
transformational leadership style is an essential leadership style which primarily
concerns with the high communication and involvement of employees and managers.
The strong communication within workplace would enhance the confidence and trust of
the employees towards the organization. The higher trust will lead to the commitment
and satisfaction of employees which would result in higher productivity and improved
performance of employees. Transactional leadership style is one which focuses on
providing rewards and punishment based on the employee performance. This type of
leadership style generates fear and distrust among the working people. As a result, the
performance of the employees will be influenced in a negative manner. Along with it,
Laissez faire leadership style does not effective to a greater extent. It applies when the
employees are highly capable and skillful. This type of leadership style would create the
dissatisfaction among the employees who required proper instruction and feedback
from their managers (Giltinane, 2013). Therefore, it can be said that the performance of
employees within enterprise and City College would affect by every leadership style
either in positive or negative manner.
AC3.2 Application of motivational theories and their effects
It is found that due to differences in functionality and objectives, Enterprise Car Rental
and City College possess remarkable differences in motivational measures for their
employees. Approaches for motivation in both the organisation are different and imparts
different outcomes. In Enterprise Car Rental, motivation of the employees through fiscal
rewards is carried out. The management is highly active in analysing the potential
employees and thereby fulfilling their needs the managers are able to implement
motivation. Quality of the services is one of the basic parameters for determining the
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effect of motivational measures. Therefore, productivity is the basis criteria for the
managers to evaluate the employees.
On the other hand, management in City College is particularly focused on the verbal
modes of motivation. However, considering the products of the organisation, it is found
that excellence in colleges comes along with experiences. Therefore, the managers in
City College tend to adopt the performance appraisal as a motivational measure for the
teachers and other employees. Considering the effectiveness of the motivational
theories and measures, it is found that motivation adopted by Enterprise Car Rental is
more acute in providing fiscal benefits and qualitative products.
AC3.3 Implementation of motivational theories and practices in City College and
Enterprise
Theory X and theory Y are important motivational theories which indicate the certain
behavior and management styles of managers at workplace. Theory X primarily
emphasis on strict control and high supervision whereas theory Y concerns with the
participative environment and high motivation for employees (Warner Burke, 2011). City
College effectively applies theory X while managing its workforce. The managers of the
college provide opportunity to share their views and ideas that could lead to improved
performance of the organization. Further, the teaching staff of City College is free to
communicate with the management of the communication at any working stage. In this
way, the managers of the City College motivate the teaching staff and other
departments towards performing their job with more efficiency. Apart from this,
enterprise rent a car is well developed organization that operates at very large scale.
The company imparts approximately 75,000 employees, therefore, the managers of the
enterprise applies theory X as well as Theory Y as per the requirement (Fisher, 2009).
Sometimes, it is difficult for the managers of the company to provide opportunity to its
employees to take part in decision making employees as it is large scale company. At
this time, the managers of enterprise took decision themselves and instruct their
employees to achieve the goal. However, the managers of the company adopt effective
strategy such as open door policy to motivate its workforce and to eliminate the
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possibility of distrust among employees. In this manner, the managers of the enterprise
effectively applied both the motivational theories to attain desired performance of
employees. Further, it would help the managers of the enterprise to develop growth
opportunities for its employees as well as for the organization.
AC4.1 Nature of groups and group behaviour within City College and Enterprise
Car Rental
There has been a significant difference in the nature of groups that are formed in City
College and Enterprise car Rental. As far as groups are concerned in City College, it is
found that teacher have different role for their jobs, which is responsible for reducing the
workplace rivalry. Therefore, the groups are friendlier in nature (Nelson, 2015).
Individual tend to behave in more free fashion in City College, which make them
possess no biasness, grudges and several other factors that can affect the relations.
Every teacher is proficient in his work, which make them to understand each other
more.
On the other hand, groups in Enterprise Car Rental are more formal than that of City
College. Organisational functionality and objectivity is highly accountable for deriving
such group behaviour in employees. Since, growth and development of the employees
in organisation totally depends upon their performance in comparison to other; the
group behaviour is found to be more unrealistic and fake. Personal objective are
preferred over the group benefits. For this reason, many psychological attributes such
as rivalry, jealousy, grudges and other can be seen in individual and group behaviour.
AC4.2 Factors that could affect the team work in City college and Enterprise
Team work is necessary for every organization to compete with the planned goals and
objectives. Team work creates a sense of integrity and responsibility among employees
which is vital for effective performance of organization. Within City College, not only
employees work together but also the different department focuses on team work to
ensure improved performance. For example: the administration and human resource
department work together within City college. The democratic leadership style and
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motivational theory X are various factors that could result in effective team building.
However, the possibility of conflict and delay in reaching the conclusion are the aspects
that could lead to poor teamwork in City College. In case of enterprise, team work is the
main concern of the managers and leaders (Lantz, 2011). For this purpose, the
managers of the company ensure that the each and every decision is effectively
communicated with the employees. Further, to create a sense of teamwork, the leaders
of enterprise focus on effective communication and leadership style. The improved
communication and transformational leadership style within Enterprise could lead to the
effective team. However, improper delegation of roles and responsibilities, interpersonal
conflict are the factors that could affect the teamwork in a negative manner.
AC4.3 Role of technology on performance of City College and Enterprise Car
Rental
Technology is found to be one of the best solutions to derive organisational excellence
and enhance the productivity. For an organisation like Enterprise Car Rental, advance
technology can act as a boon for targeting more customers and profitability. For
example, the business of the organisation is based upon the utilisation of car renting
services. For this reason, the managers in organisation can take virtue of advance
technology such as internet to promote their services in different markets (Ventrice,
2010). Facebook, Instagram, Twitter and many other mass media websites are found to
be helpful in attaining customers’ attention and raising the profitability.
As far as use of technology is concerned for the productivity of City College, the concept
of smart classes through successive implementation f technology can aid the colleges
with better outcomes. There has been a trend in societies for education that is equipped
with smart technology. Therefore, the managers in City Colleges can obtain the benefits
of advancements in technology. In addition, internet has been successful in availing
more options to the organisations such as online payments and many others (DuBrin,
2011). Therefore, managers in City College can opt for such options for the
convenience of students and organisation.
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Conclusion
From the above report, it can be concluded that organization structures and culture
influence the performance of employees to a greater extent. Further, different
leadership styles affect the performance of the employees in different manner. City
College and Enterprise are well established organizations which are highly focused
towards enhance its effectiveness. For this purpose, the organizations adopt different
leadership styles and motivational theories to attain desirable outcomes and
performance of employees. Team work is an essential aspect that could lead to the
improved performance of the employees. Group behavior is another aspect that is vital
to effectively manage in order to ensure effectiveness of the organizations.
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References
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