Organizational Behaviour and Leadership

This assignment provides a detailed overview of organisational behaviour, including leadership theories such as transformational leadership, servant leadership, and organisational citizenship behaviour. It also explores the relationship between leadership styles and team effectiveness, as well as the importance of self-management and performance improvement in organisations.

ORGANIZATIONAL
BEHAVIOUR

Table of Contents
1. INTRODUCTION.......................................................................................................................1
2. SUMMARY OF CURRENT STATUS AND KEY ISSUES......................................................2
SWOT Analyses.....................................................................................................................2
PESTLE Analyses..................................................................................................................3
3. STRATEGIC DRIVERS OF TRANSFORMATION.................................................................4
4. DEVELOPMENT OF INSTITUTIONAL LEADERSHIP.........................................................8
Transformational leadership for general manager..................................................................8
Institutional leadership for employees....................................................................................9
5. PERFORMANCE DRIVERS FOR IMPROVING PERFORMANCE.....................................10
6. CULTURE AND PEOPLE DEVELOPMENT.........................................................................11
7. BUDGET IMPLICATIONS......................................................................................................11
8. CONCLUSION..........................................................................................................................13
REFERENCES..............................................................................................................................14

1. INTRODUCTION
Organizational behaviour can be defined as subset of management activities that supports
managers in understanding behaviour of individuals and retaining them in the workplace for
longer duration. Demeanour of employees working in the corporation can get affected due to
motivation, rewards, environmental aspects (Banks and et.al, 2016). The main reason of
understanding organizational behaviour is to know needs of employees and fulfil their
requirements so that they feel satisfied with their jobs. It helps in implementing effective
leadership style and resolving conflict situations in the workplace. Organizational behaviour is
the tool that assists in developing a good team and enhancing productivity of the company.
Managers always try to develop healthy relationship with the staff members so that skilled
people retain in the organization for longer duration and they contribute well in accomplishment
of goal (Roueche, Baker III and Rose, 2014).
Danone Japan co. Ltd is being taken into consideration for the present study. It is the
multinational firm that operates in the food industry. It offers fresh dairy products to its
consumers. In the year 2016 overall sales generated by the firm was €21.9 billion. It has
employed 99781 employees those who are working across the world. Recently company is
facing many issues that are affecting its growth and now it is required to redesign its process for
re-accelerating growth. The main issues that are faced by entity are poor leadership, decreasing
sales volume, limited growth, Poor cultural environment in the organization. 7-S framework is
the effective assessment tool that supports managers in identifying work based problems and
helps in realigning connectivity among seven elements that are strategy, Shared value, Structure,
System, Style, Staff and Skills (Breevaart and et.al, 2014). It is very important for the cited firm
that to implement 3 pillar transformation plan and involve 6 growth drivers, sustainability
programs and cultural development so that entity can be able to retain skilled employees in the
workplace for longer duration and can enhance its market performance. This supports firm in
sustaining in the market for longer duration. Recently poor leadership style is implemented by
Danone Japan co. Ltd, it is required to adopt transformational leadership style so that healthy
relationship with employees can be developed. This problem is being identified by looking at the
turnover rate of the company and its development programs. Thus, cited firm is required to make
changes in its leadership so that skilled workers perform well and they support in the growth of
business.
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Current report will discuss current status of the Danone Japan co. Ltd and will explain
strategic transformation plan. It will include transformation before and after and its impact on
organisational chart. Strategies for sustainable growth will be determined in the report.
Furthermore, capability development of team members, budget implications, risk management
will be described in this assignment.
2. SUMMARY OF CURRENT STATUS AND KEY ISSUES
Danone Japan co. Ltd is the French food products corporation. It is operating its business
in Paris, Spain and many other countries (Schmitt, Den Hartog and Belschak, 2016). The main
aim of the organization is to enhance its sales volume and expand its business across the world.
In the year 2010 general Manager of cited firm has got changed and new manager has announced
that till the end of 2017 entity will grow by 15%. But due to earthquake in the 20100 cited firm
fail to generated expected revenues. That has affected its growth planning. Stagnant sales since
2010 is another issues in the business. Due to poor financial growth Danone Japan co. Ltd has
invested poor amount in promotion and marketing that has affected its sales volume to great
extent. Internal analyses of Danone Japan co. Ltd is explained as below:
SWOT Analyses
Strength: Excellent and robust process in place: Danone Japan co. Ltd has excellent robust process
that support the firm in operating its business across the world. Global recognition: It is working internationally thus, global recognition helps the firm in
earning high revenues (Caesens and et.al, 2016). Leading position: Danone Japan co. Ltd has leading position in the dairy products
industry. Fulfil Corporate social responsibilities (CSR): It takes initiatives and support the
stakeholders so that it can fulfill its CSR responsibility in the market.
Weakness Poor sales performance: It is considered as one of the major weakness of the business
because since 2010 its sales performance are decreasing continuously (Ibrahim, 2014).
The main reason of declining sales is poor investment in the marketing and promotional
aspects.
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 Delay of integration system: It is another weakness of the business due to which it fails to
achieve its objective. High turnover of employees: It is another major problem in the Danone Japan co. Ltd, its
employees are leaving the job frequently (Caulk and et.al, 2015). As culture of the firm is
not satisfactory and due to bad work life balance most of the workers feel dissatisfied
with the entity thus, turn over rate of staff members are increasing in the business.
Opportunities Product line extension: It is the major opportunity for the business that it can extent its
products line and can develop its products by taking innovative ideas. Acquisition and mergers: There are many firms those which are operating in the same
industry, company has opportunity to merge with them in order to enhance its
profitability (Bolman and Deal, 2017).
Threats Increase cost of raw material: It is the main threat to the Danone Japan co. Ltd because
due to this its budget get affected and it fails to generate high revenues.
 Stiff competition: Market is highly competitive in such condition it is difficult for the firm
to sustain in the market for longer duration. For that it is required make effective
strategies so that it can meet with its objectives (Burke and Noumair, 2015).
PESTLE Analyses
It is the tool that supports in analysing external performance of Danone Japan co. Ltd.
Political factor
Danone Japan co. Ltd is operating in many countries and most of the nations have
political stability that support the entity in smooth running of business. But as government of
UK has taken protective stance due to increasing rate of obesity that has affected company's
revenues. Due to increasing regulatory pressure and increasing tax rates entity has face difficulty
(Banks and et.al, 2016).
Economic factor
Due to cost of reducing GHG emission Danone Japan co. Ltd had to face huge economic
loss that has affected its growth as well. In many developing nation inflation rate in decreasing
that helps the entity in enhancing its profitability. Now consumers are able to buy food products
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easily that enhance sales of the company. Increasing rate of employment and rising GDP rate
are helpful in the growth of business (Roueche, Baker III and Rose, 2014).
Social cultural factor
Due to increasing obesity cases now consumers are paying attention on healthy diet. This
supports the Danone Japan co. Ltd in providing satisfactory products to customers as per their
requirements.
Technological factor
Use of advance R&S company becomes able to use innovative ideas that supports in
improving flavours of drinking water and other food products. High technology ca help in
improving quality of products and designing nutritive baby products (Schmitt, Den Hartog and
Belschak, 2016).
Environmental factors
GHS emission is increasing temperature and it is creating problem in water supply and
now cited firm is required to make changes in its products manufacturing process so that it can
fulfil its environment responsibilities.
Legislative factors
Changes in laws and regulations such as changes in environmental protection law, safety
law are creating issues for the business because it has to make modification in its process
according to these regulations (Burke and Noumair, 2015).
3. STRATEGIC DRIVERS OF TRANSFORMATION
Transformation plan is important framework in which primary steps are used to confirm scope
and mapping interaction of the processes that needs to be renewed. It is also starts through
determination of desired future state at the completion of overall the program for change in to get
this program within a set of projects. In this context, there are various important drivers have
been identified which has transformed the behaviour of employees and resolved the issues of
organization (Buchanan, and Huczynski, 2010). Analysis danon Japan has been taken in to
consideration in order to gain Information about their all the proposes project and is submitted to
the clients top management in order to gain corporate commitment to the initiative. Main
objective this transformation plan is to clarify the problems which are faced by enterprise and
needs to be addressed, keeping costs at the every minimum until there is an explicit consensus
and a clear way forward. Shared values of organization have analysed which has stated that
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company is more focused towards ‘sustainable implementation which refers to making
awareness about the food products and importance of sustainability. Sustainable alienation of
food products implies to the use of resources at rates that they do not exceed the capacity of the
earth in order replace them. Further, 7s model have been used to determine the share values of
Danone Japan in their business operations. It is important framework that needs to be used for
analysing the company's structural problems and provide them recommendation through
realignment of the connectivity among their important seven elements. This model provide more
effective as well as balanced diagnosis through looking within the interaction of seven elements
as compared to the when the focus is just on the structure as well as strategy. These seven
important elements of the model has been analysed with an aim to devise the plan.
Strategy is a considered as plan which is developed by enterprise in order to achieve their
sustained competitive advantage so that they will be able to successfully compete in the market.
In this, Danone japan has developed sound strategy which is clearly articulated, long term and
has provided the major support in maintaining their competitive advantage in dairy products and
services. But it is considered as hard to state that if such strategies are linked with the other
elements when they are analysed alone. For example; Danone has followed the strategy of
sustainability is the considered as central part of its corporate strategy. They have tends to
develop sustainability in their business process.
Structure element determines the ways business divisions and its functional units are organized
and includes the information about the authority and responsibility of employees towards each
other. In simple words, it is also considered as organizational chart of company (Huczynski and
Buchanan, 2010). As specified in the case study, Danone Japan have faced problems in structure
and due to this they have changed their structure and added the sustainability champion in top
management which includes health sustainability taskforce and nature sustainability taskforce.
Further, they have also made changes in sales department by adding industrial (B to B). In
marketing, they have added family brand, kids brand, OKIOS, dancol, EC specialist and
consumer health personnel. For taking quality assurance they have added call centre to take
direct feedback from customers about their products. Thus, it can be said that these changes have
made been made to transform the structure in order to accomplish their shared value of
sustainability alienation (Wilson, 2018).
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Systems are the process and the procedure of the organization that clearly determines the day to
day operations and activities and how the decisions have been made within the enterprise. In
Danone, Systems are the areas that determines the strategies and ways though which
management of company operates the business and it is required to be a major focus of the
managers at the time organization change (Lee and Lawrence, 2013).
Skills are considered as abilities which is performed by employees of Danone very well. It also
includes the capabilities and competencies of enterprise to perform the business. At the time
transformation, the question arises that what skills of the organization are needs to be
reorganized. Moreover, in order to make transformation it is essential for enterprise to raise the
capabilities of their existing employees at every level in the structure (Gagné, Sharma and De
Massis, 2014). Training needs to be provided Danone to their employees so that they will tend to
support in accomplishment of objective of sustainable alienation. They also have transformation
competencies of organization in market through innovation inn products and services.
Staff element of the model is concerned with the type and number of employee required in
Danone and ways of recruitment, training, motivation and rewarded in the organization.
Style element of this model represents the way company ghas been managed by their managers
at top level. It also states the ways through which managers will communicate with each other
about the information along with the actions taken by them and their symbolic values. It is also
considered as management style of leadership leaders in organization. In Danone, Management
is using sophisticated leadership style has been implemented by managers in which they perform
their duties effectively and provides direction to employees so that they will be able accomplish
company's objectives.
Shared values are considered as core part of model given Mc kinsey. They are norms and
standards of company that guides the employee behaviour along with the actions of organization
and thus are considered as foundation of every organization (Lubienski, Lee and Gordon, 2013).
As per case study, it is analysed that shared value of Danone Japan is Together, we move the
world to Sustainable Alimentation”. These important shared has raised the focus of enterprise
and their employees towards sustainable development and restoration food products to raise the
sustainability among the customers. Thus, it can be said that this model will support the
managers to improve the performance of enterprise, examination of the likely effects of the
changes in future within enterprise. For Alignment of department and process during the merger
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and acquisition, this model is used by enterprise along with the determination of best ways for
implementation of proposed strategy.
Further, 3 Pillars of the management are also determined such as:
6 Economic drivers of enterprise: These are considered as major elements through which the
company has transformation its business functions in order to accomplish business objectives
and achieve of growth and development. In case of Danone Japan. The six growth drivers which
are used by management are identified as the Driving sales, cultivating opportunities,
development of expertise, e commerce, exploring industrial in business to business, and
development of operational excellence (Bratton, 2015). Moreover, management of organization
has decided to Drive sales of Cup Yogurt with offerings of premium quality, premium pricing
and differentiation with health benefits. This will provide them major support in achievement
high profits as compared to competitors and development of brand image between customers
(Rumbles, 2015). Second driver is cultivating opportunities from the market which implies to
making innovation their products such Drinkable yogurt and implementation of competitive
pricing strategy and quality. Further, they also tend to achieve growth in their business through
building an expertise in their other value added products such as FOSHU, KIDS. Further,
making a tie up with e commerce websites has transformed their markets. By increasing its
digital marketing company will increase its sales in market and develops a high capacity.
Another driver states that Danone should expand their business by making relationship with
other retailers in countries. Channel leveraging is also the best method of increasing sales and
profitability (Haslam and et.al., 2014). Further, company can also achieve growth by increasing
their operational excellence which implies to strong or high production capabilities and
development of plants as well as purchasing of high quality raw materials.
Sustainable program: It is next stage of 3 pillars which implies that company should focus on
the sustainability of health of its customers and sustainability of nature (Ravanfar, 2015). As per
analysis, for compliance with this, company has implemented changes in their structure and
added sustainability champion along with the health sustainability taskforce and nature
sustainability taskforce. Sustainability champion is considered as individual who seeks to lead
change in Danone to transform the business in smarter, more successful and more sustainable
enterprise. For transformation of business Danone has added a sustainability champion at top
level.
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Danone culture: After the analysis, it is understood that company has developed a great
economic culture that promotes humanism, openness, proximity and enthusiasm. With this,
company has build among its 900 million customers and products (Alshaher, 2013). This both
has rewards to their efforts to respect cultural differences and acts a added motivation in order to
keep the integrating local dietary needs and eating habits. Today, over 60% of Danone’s sales are
generated in new geographies and we operate on the five continents.
4. DEVELOPMENT OF INSTITUTIONAL LEADERSHIP
Transformational leadership for general manager
General manager of Danone Japan co. Ltd is required to make changes in leadership
style. Adoption of transformational leadership can be beneficial for the general manager of the
cited firm. It is the type of leadership in which leaders involve subordinates and they work
together in order identify change requirements (Banks and et.al, 2016). They create vision and
share their views so that positive changes can be implemented in the organization. It is the best
style that supports in enhancing motivational level of employees and they feel involved. By this
way they retain in the workplace for longer duration. In such type of leadership style employees
think the leaders as their role model and their working inspire them.
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Illustration 1: Transformational leadership
Source: (Transformational Leadership Theory,
2017)

If general manager of the cited firm adopts this type of leadership then it will help in
retaining skilled employees in the workplace for longer duration and that will support in reducing
employee turnover. Leaders act ass motivator, they provide rewards to their workers for their
performance and creativity. They give power to the employees to take decision that encourage
them and it can support in raising their performance and they can contribute well in the growth
of business (Roueche, Baker III and Rose, 2014).
Institutional leadership for employees
Employees need to adopt institutional leadership style in the Danone Japan co. Ltd. It is
collective ability of leadership that supports in identifying the improvement areas and cope up
with changes so that primary goal of the company can be accomplished. It helps the company in
navigating the future and re-framing problems and turning them into opportunities. By this way
workers can be able to understand need of changes and they will perform better in modified
environment (Burke and Noumair, 2015). This is the way through which cited firm can enhance
its market performance and can accomplish its goal.
5. PERFORMANCE DRIVERS FOR IMPROVING PERFORMANCE
In order to raise the performance, the organization needs to identify various performance drivers
that enable the organization to sustain the in the market. It is also considered as major ability of
organization to sustain in market and increasing its own business opportunities of market
expansions (Singh, 2013). In this context, the major economic drivers of Danone japan are
determined above:
First and foremost performance driver is considered as cycle management optimization versus
increase in the internal processes. For increasing in performance, company needs to increase
their sales by using the balance score card strategy. It is the strategy in which the management
will analyse the effective delegation and implementation of organization processes. Senior
management team are prone to focus on short term financial results information reporter after the
damage is being done (O’Mahoney and Sturdy, 2016). In this, company will consider metrics
related to customers, internal processes and employees innovation, learning and growth. By
using the four step is has been recommended to the organization that they should make control
on their expenses on promotions.
Next driver is creative development of sustainability based differentiating products through
acquiring external expertise (Rummler and Brache, 2012). It states that organization will increase
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their sustainability through development of premium quality products and services. Company
needs to determine its profits margins that will increase through introduction of premium and
popular products representing health sustainability.
E commerce is considered as third performance drivers which implies to making correlation with
the commercial websites for promotion of products and services (Zhu, 2014). In this, company
needs to focus on the creation of value its products among the customers and development of
talent. In this, company needs to convert its brand manager in to the digital marketing managers
which aids the management in increasing performance through development of various
promotional strategies. Further, companies also needs to increase their business to business
model in their operation (Hoerl and Snee, 2012). Development of business to business model
implies that company will increase their relationship with the local retailers in their country so
that sale of their products have been increased. Danone Japan have faced problems in structure
and due to this they have changed their structure and added the sustainability champion in top
management which includes health sustainability taskforce and nature sustainability taskforce.
Further, they have also made changes in sales department by adding industrial (B to B). In
marketing, they have added family brand, kids brand, OKIOS, dancol, EC specialist and
consumer health personnel. For taking quality assurance they have added call centre to take
direct feedback from customers about their products.
6. CULTURE AND PEOPLE DEVELOPMENT
There is essential requirement to improve culture of Danone Japan co. Ltd. The main
issue found in the business is that employees are not satisfied with the working environment of
the firm. Leaders do not involve them in decision making process. That is why conflicts are
increasing in the firm and it is creating negative perception in the mind of employees for the
cited firm. In order to resolve this problem managers of the firm are required to improve cultural
aspects and need to give values to workers, so that they feel involved and share their innovative
views with higher authorities (Ibrahim, 2014). Employees are the key stakeholders of the firm if
they perform their duties well then it can help in resolving company's issues and enhancing its
market performance as well.
Danone Japan co. Ltd needs to organize development plan for people and need to give
them training timely. In the training session they need to give information about sales and market
need, trainers are required to enhance their selling skills so that people can circulate good
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information with consumers (Burke and Noumair, 2015). People development can be taken place
by making them aware with the digital marketing tools and with ingredients of material. This
will help them in satisfying needs of consumers and they will be able to sell their product in the
market effectively. Danone Japan co. Ltd needs to implement effective policies and need to
invest in research and development. This will help in modifying the current process in effective
manner and making the workplace environment positive. This will develop relationship between
employees and they will perform their duties well (Banks and et.al, 2016).
7. BUDGET IMPLICATIONS
In the Danone Japan transformation plan considered growing activities that are design to
perform several functions and operations in it. It includes several implications that are as
follows:
 Budget implications: In respect to implement the budget program, it is essential to focus
on the different tools and techniques that are needed to make products and services. In
this aspect, in 2012 the company develop BIO in a cup and drink which is estimated
around 200. Family cup will be classified in term of 25, kids consideration included in
15. On the other hand, in 2017 forecasting also considered is around 475 for all. Mainly it
is increasing around 225 with strategy to perform several tasks and outcomes (Searle and
Rice, 2016).
 Implementation schedule: Further, implementation of schedule considered through
different activities cost. In this way, development of several activities has been promoted
for health, family, weight measurement, etc. In addition to this, in Danone Japan different
activities has been promoted to focus on the consumer price. Furthermore, new
forecasting plan considered which assists to develop more creativity in the business
environment. As results, schedule activities will be develops on the time and different
perspective as well (Mahembe and Engelbrecht, 2014).
 Risk management: Risk management is the tool which need to be performed and
ascertain with more targets and goals. It helps to develop more useful consideration for
budget implementation. On the basis of views and activities, it can be seen that it will
assists to develop creativity and performances management. Hence, it could be
understand that it is the best way to accomplish desired results in the organisation.
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Furthermore, it help to make systematic activities and their combination towards the
activities that are being offered. Risk management requires in Danone Japan in different
consideration because it impact on its functioning. For example, shortage of profits and
sales, unsuccessful results from the trade negotiation. Insufficient market spend, etc. In
this manner, it is essential to make concentration on the activities for the business
development. There are several activities has been performed that producing to solve this
issue and make recommendations as well (Barbaranelli, Paciello and Tramontano, 2018).
 Contingency scenarios: Contingency scenario assists to develop systematic results and
outcomes at workplace. In this manner, Danone also includes those elements which make
concentration on the products and services. Danacol drink offers by the company which
is estimated to produce creative results and outcomes at workplace. With the help of the
concentration on the mutual aspects, organisation will able to deliver products and
services in proper manner. Beside this, contingency scenario considered imitation by the
competition, backlash from consumer groups which includes natural disaster, political
conflicts in several areas of the consideration in Japan. Due to these reasons the chosen
company unable to make their sustainable results and advantages to increase its
profitability (De Vries and Van der Poll, 2016).
From the above discussion, it can b stated that budget implementation considered more
operations and functioning that assists to make systematic results at workplace. In addition to
this, it is also based on the management of the business.
8. CONCLUSION
From the above report it can be concluded that Danone Japan co. Ltd is require to make
changes in its working process for regrowth of the business. It is required to establish new shared
values and need to evaluate needs of employees. The major problem that is faced by the
company is high turnover of staff members and poor market performance. This can be resolved if
general manager adopts transformational leadership style. By this way employees will feel
involved and they will feel motivated. Workers are required to adopt institutional leadership style
so that they can interact with each other significantly and can perform well in the workplace.
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