Motivating Employees through Goal Setting Theory: A Study on EE Limited

The assignment highlights the importance of considering motivational theories, specifically Goal Setting theory, in order to boost employee motivation and performance. The theory emphasizes the need for employees to willingly give their consent towards goal attainment, and that clear goals should be communicated by managers to achieve greater output and better performance. This approach can lead to increased employee participation, self-confidence, and goal commitment ability, ultimately resulting in improved business outcomes.

ORGANIZATIONAL
BEHAVIOR
1

TABLE OF CONTENTS
Introduction .........................................................................................................................................3
Task 1 Management environment and Leadership...............................................................................3
Q1. Basic forms of organizational structure and culture (1.1).........................................................3
Q2. Relationship of structure and culture. Explain its effect on business performance (1.2).........4
Q3. What individual behavioral factors affect employees at work. Why as a manager individual
behavior is required to understand (1.3)..........................................................................................4
Q4. Explain how organizational theory underpins the practice of management (2.2)....................5
Q5. Compare leadership styles of two manager and state difference between both (2.1)...............6
Q6. Evaluate the approaches of management used in two organization (2.3).................................6
Q7. Impact of leadership styles on motivation in the organization during the period of change
(3.1)..................................................................................................................................................6
Q8. Compare how managers can motivate employees (3.2)...........................................................7
Q9. Usefulness of motivational theory to the manager (3.3)...........................................................7
Conclusion ...........................................................................................................................................8
Reference..............................................................................................................................................9
2

INTRODUCTION
Organization is an association of people that works together for a common purpose; thus
organizational behavior is the study in which employers can understand the behavior and attitude of
employees in different situations (Lussier and Achua, 2009). The present study has been made with
an attempt to analyze the organizational structure and culture aspects of EE Limited (Everything
Everywhere) which is a British mobile network operator and provides internet services to the
business and customers both. Further, the study has also discussed the use of different leadership
styles and its impact on motivational level of managers. Apart from such discussion, researcher has
also stated several factors that affect the employee behavior at workplace. Teams have been made at
EE Limited for diversified purposes and the concept of developing has been stated in the
subsequent research report.
TASK 1: MANAGEMENT ENVIRONMENT AND LEADERSHIP
Q1. Basic forms of organizational structure and culture (1.1)1. Functional structure: As per the functional organizational structure, EE Limited divided all
the roles and responsibilities among people on the basis of different departments. This helps
the staff members to have clear understanding about the roles and responsibilities and as a
result, they deliver high quality services to clients (Allio, 2013). EE Limited has divided all
the employees as per different groups and teams and this also helps them to manage separate
processes for every project. The structure is suitable for large business entities whose
business processes are complex enough to be managed. Functional structure is far different
with that to product based structure and geographical structure since it emphasizes on
diversified functions and business operations. It is all about dividing the work processes in
distinct departments.2. Product based structure: When teams and departments are arranged on the basis of any
specified products, then the particular structure is called as product based structure. As per
the structure, employee's roles and duties are categorized in different departments. Finance,
marketing and human resource department are required to follow different projects based on
different product categories. Such structure is specific for limited period only and people
have to work majorly for the development of product concept. The structure is effective as
compared to others because performance level can be easily evaluated (Pardey, 2007).
Product based structure is somewhere similar to functional structure because in that,
organization typically divides the department on the basis of product categories. As per the
geographical structure, it is essential for the firms to divide things on the basis of market
3

size of each region.
3. Geographical structure: In geographic structure, employer brings several employees from
all the branches for a single project; however, the other entities are also involved in the same
project. The work processes and duties are delegated on the basis of products, services and
customers. Organization that follows such structure can enhance employee interaction level
and this is also vital in terms of managing competition aspects at the market place.
Organizational culture includes all those beliefs and norms that business follows to manage
all the work processes in an adequate manner. Along with the organization, employees are also
required to consider organizational cultural values for suitable environment at workplace. Types of
culture are as follows:1. Power: This type of culture heavily relies on individuals rather than on group systems. An
organization that uses this structure take decision on the basis of results acquired. From
many research studies, it has been identified that power brings satisfaction among
employees (Mann, 2011).2. Role: Role culture basically emphasizes on increasing the level of employee performance;
thus, the culture guides employees to follow appropriate standards at workplace.
3. Task: Task culture is incorporated directly with job completion aspects where organization
gives chief emphasis on completing the tasks. EE Limited focuses on getting the job done.
On the other hand, culture also seeks to bring appropriate resources in organizational
system.
Q2. Relationship of structure and culture with explaining its effect on business performance (1.2)
Structure and culture both are appropriately related to each other and both have direct
impact on the organization's performance. Structure reflects the hierarchy through which duties are
being provided in the organization and this even depicts the level of communication (Lussier and
Achua, 2009). With the structural aspects, employees of EE Limited have the right to communicate
with people effectively. On the other side, culture of entity allows employees to communicate with
the top management so that it would reduce any kind of confusion and mistaken belief among
employees and employers. Structural aspects only determine the type of culture that should be
followed in the business practices.
Culture directs the employees to fulfill all their roles and responsibilities and this also
creates appropriate environment at workplace (Buchanan and Huczynski, 2010). EE Limited has
healthy working culture which aids the employees to present their views and suggestions in decision
making process and this further motivates them to contribute in the organizational productivity. In
4

EE Limited, employee and customer feedback both are considered in the organizational processes;
thus, it helps the management to implement a wide range of changes in the business prospects.
Culture is the major strength of EE Limited which assists the employees to facilitate proper
interaction in the team.
Q3. Individual behavioral factors that affect employees at work along with the reason because of
which as a manager individual behavior is required to understand (1.3)1. Leadership: Leadership influences the behavior of employees at EE Limited because the
leader always considers the interest of working people of company. This is the reason
because of which employees always support leaders in all the work processes (Allio, 2013).
The style of leading people is such aspect that encourages employees to do work in a proper
and efficient manner. Hence, it can be said that leadership leads in efficacy of work
processes.2. Work culture: Work culture of organization seems to influence the behavior of employees.
At EE Limited, employees have been managing all their roles and responsibilities in a
proper manner because as per the culture, they can share their issues and work related
aspects openly. Work culture of EE Limited encourages the employees to become more
committed towards organizational prospects.3. Communication aspects: The behavior of employees influences when they are allowed to
communicate properly in the team. Communication is helps the employees to share things
with each other and sharing things helps in managing coordination level in business.
4. Personal life: Work / professional life of an individual hampers when he face issues in his
personal life. Imbalance between personal and professional life changes employee’s
behavior and further, it distracts them from their job roles (Brunsman, DeVore and Houston,
2011).
Further, it is essential for the manager to comprehend all those factors that influences the
individual behavior because the factors might hamper the efficiency of managing tasks and
performance. It is vital for the manager of EE Limited to observe if the employees are delivering
services to the clients on time because that will reflect their punctuality. Besides this, manager is
also accountable to identity the loyalty of employees towards business and this can be ascertained
with the help of determining level of service delivery. Along with this, manager should monitor the
level of performance as through that, individual capability can be identified.
Q4. Explain the way in which organizational theory underpins the practice of management (2.2)1. Classical theory: The main purpose of classical theory is to enhance the level of
5

organizational productivity. Thus, EE Limited considers this theory so as to deliver
prominent services to the clients (Buchanan and Huczynski, 2010). At the same time, the
theory gives importance to cultural norms and values which is valuable in terms of team
building aspects. Application of the theory aids in managing proper team bond and this
further assists in the attainment of organizational goals.
2. Neoclassical theory: This theory concentrates on motivating the employees and along with
employee motivation; it also gives a proper structure to the organization. As per the theory,
it is essential for the manager of EE Limited to focus on human resource approach so that
better results can be gained.
Apart from these theories, manager of EE Limited is also required to analyze the
contribution of scientific theories and management principles. This can also assist in underpinning
the practices of management (Cole, 2000). The management of EE Limited considers all the
principles of Henry Fayol and thus, according to the same, proper chain of command is being
followed up in business. The principle aids in managing disciplinary aspects in the business. Hence,
this reduces the issues related to ethical facets. Bureaucracy theory believes in managing proper
structure at the workplace through closed integrated systems. A systematic way of managing things
is being followed up in the business.
Q5. Comparing leadership styles of two managers and stating the difference between both (2.1)
Leadership is the aspect in which leader directs the roles and responsibilities to all
employees as per the organizational structure. Leader of EE Limited has been using democratic
leadership style where in the leader tries to consider interest of all the employees in decision making
process. The leader itself has allowed all the staff members to contribute in decision making process
and following such style helps the leader to retain the employees for longer span (Leadership and
Organizational Behavior, 2013). On the other hand, leader of O2 (which is second largest mobile
telecommunication provider in UK) follows autocratic style where the flow of authority passes from
leaders to subordinates. Here, in this style, employees are not allowed to present their advice in
decision making process and they merely have to consider directions that are being given by the
leader. On the comparison of both the styles, it has been found that leadership style of EE Limited is
appropriate for the long run.
Q6. Evaluating the approaches of management used in two organization (2.3)1. Human relation approach: Human relation approach typically focuses on building social
relations and this approach helps EE Limited to develop prominent relationships at
workplace. Employees are also focusing to contribute in long term sustainability aspects by
6

doing things mutually (Holt and et.al., 2003). The biggest advantage of human relation
approach is that businesses and customers are more often better equipped to manage people
in a proper way especially at the time of having issues and constraints. However, on the
other hand, the approach is based on the assumption that people are considered as friendly
and when they make mistakes and errors, it becomes an issue for the organization.
2. System approach: O2 has been considering system approach in which the business
emphasizes on social aspects. This is the reason because of which prominent services are
delivered regarding telecommunication. One of the chief advantages of system approach in
management is that it concentrates on end results rather than on the means and it also
provides an orderly and efficient plan of action. Further, it also provides a good basis of
control. However, on the other hand, the system is rigid and if changes prevail in the
environment then the approach can be applied slowly for better management of issues.
System theory makes holistic and integrated views and it also aids the managers to serve the
organization in an effectual manner.
Q7. Impact of leadership styles on motivation in the organization during the period of change (3.1)
Leadership styles influences employees and managers and this also leads them to manage
the process of change management (Li and et.al., 2013). At the time of implementing changes in the
business, it is essential for the leaders to use specific styles so that they can encourage people to
handle the change aspects. In the present case, leader of EE Limited has been using democratic
leadership style in which the leader invites all employees in decision making process and this
motivates people on higher extent. The use of democratic style assists the leader to encourage the
workforce towards better productivity and as a result, people are able to contribute in achieving the
goal effectually.
In democratic leadership style, leader focuses more on employee efforts and their efficacy
level and this assists the employees to develop the capability level (Lussier and Achua, 2009). At
the time when leader of EE Limited implements any change in the business process, people
supports them to the utmost level because they are highly encouraged from the leading style. At the
same time, motivation of employees will change due to different leading styles which are being
undertaken by the employees. Top management of EE Limited follows Participative style which is
similar to democratic style. Thus, managers also get positive response from the management
regarding motivation aspects.
Q8. Compare how managers can motivate employees (3.2)
1. Process theory: Process theory of motivation deals with the process of motivation and it is
7

also concerned with the ways through which motivation can occur in the organization. The
theory given by Vroom lies under this category and they showcase different approaches
related to employee motivation. Hence, Expectancy theory can be considered in the same
aspect and manager of EE Limited can motivate the employees by involving them in all the
areas of decision making process. Through such theory, manager can highlight the
involvement of active cognitive processes and user choice in the process. Thus, the theory is
helpful in revealing the valuable outcomes for business entity (Riley, 2012).
2. Goal setting theory: Goal setting theory chiefly emphasizes on the achievement of goal and
the theory also states that employees must willingly give their consent towards the goal
attainment process. Thus, according to the theory, manager of EE Limited needs to
communicate specific and clear goals to employees so that greater output and better
performance can be gained. The theory would enhance employee’s efficiency since it helps
the managers to facilitate employee participation on higher extent (Mail, Mohamed, Atan,
2006). The theory has certain other advantages as well through which manager of EE
Limited can focus on individual's self confidence and goal commitment ability.
Hence, from the discussion, it is clear that EE Limited needs to consider these basic theories
for employee motivation. As compared to Process theory, Goal setting theory would be more
beneficial for the management of EE Limited as here; employees can be involved in all the
processes of organization. Therefore, such aspect can raise employee encouragement level on
higher extent.
Q9. Usefulness of motivational theory to the manager (3.3)
In the above mentioned section, manager of EE Limited is suggested to adopt Goal Setting
theory because that is advantageous for the business from several grounds. The theory seems to be
used a raise incentive for employees to complete the work quickly and effectively (Mann, 2011). All
efforts need to be given to employee capability and thus, this raises the encouragement level of
workforce. Further, Goal setting theory leads to better performance by increasing motivation of
employees and through this, their efforts in organizational practices can also be augmented.
Moreover, employers can collect feedback and suggestions from employees on different work
processes.
Employees will be able to consider themselves as a part of management if they are provided
with proper services which can be categorized from monetary to non monetary benefits. Thus, the
application of Goal Setting theory at EE Limited would help the operator to deliver prominent
services to clients because motivated employees always contribute in the success aspects (Pardey,
8

2007). Employees need to be motivated enough because through that, manager will be able to
underpin the performance of business. Therefore, it can be articulated that the use of such theory
would help in retaining the workforce for longer period and as a result, long term sustainability can
also be attained. Thus, the theory can be widely used for different purposes by employers.
CONCLUSION
From the entire research study, it can be concluded that managers and leaders have to
understand behavioral aspects of employees because changes in their behavior directly impacts the
performance of business entity. This also affects the customer services of EE Limited. Thus, the
employees should be delivered with monetary and non monetary, both the advantages. The study
has also revealed all those forces that should not be present in the organization because of their
negative impacts on business.
9

REFERENCES
Allio, J. R., 2013. Leaders and leadership – many theories, but what advice is reliable. Strategy &
Leadership. 41 (1). pp.4 – 14.
Brunsman, B., DeVore, S. and Houston, A., 2011. The corporate strategy function: improving its
value and effectiveness. Journal of Business Strategy. 32 (5). pp.43 – 50.
Buchanan, A. D. and Huczynski, A. A., 2010. Organizational Behaviour. 7th ed. Pearson Education,
Limited.
Cole, A. G., 2000. Organisational Behaviour: Theory and Practice. Cengage Learning EME.
Holt, D. T., Self, D. R., Thal, A. E. and Lo, S. W., 2003. Facilitating organizational change: a test of
leadership strategies. Leadership & Organization Development Journal. 24(5). pp.262 – 272
Li, H. and et.al., 2013. An entry mode decision-making model for the international expansion of
construction enterprises. Engineering, Construction and Architectural Management. 20 (2).
pp.160 – 180.
Lussier, R. N. and Achua, C. F., 2009. Leadership:- theory,application and skill development. 4th ed.
Cengage learning.
Mail, R., Mohamed, N. and Atan, R. H., 2006. Leadership Factors in Organizational Change
Process: Observations from the Perspective of Management Accounting. Journal of Financial
Reporting and Accounting. 4(1). pp.103 – 128.
Mann, S., 2011. Leadership: A Very Short Introduction. Leadership & Organization Development
Journal. 32 (5). pp.529 – 529.
Pardey, D., 2007. Leadership in turbulent times: Effective leadership during times of organizational
change. Strategic HR Review. 6(5). pp.16 – 19.
Online
Leadership and Organizational Behavior. 2013. [Online] Available through:
<http://www.nwlink.com/~donclark/leader/leadob.html>. [Accessed on 10th December 2015].
Riley, J., 2012. Motivation Theory – Herzberg. [Online] Available through:
<http://www.tutor2u.net/business/people/motivation_theory_herzberg.asp>. [Accessed on 10th
December 2015].
10