Impact of Motivational Theories on Employee Productivity

The assignment content discusses the importance of motivational theories in encouraging employees for better productivity. The theories mentioned include Maslow's need hierarchy theory, which focuses on meeting different needs of employees, and Herzberg's two-factor theory, which identifies factors that cause job satisfaction or dissatisfaction. The study highlights how these theories can be applied by managers to improve employee motivation and retention. Specifically, Asda's manager uses Maslow's theory to meet the needs of employees at each level, while Morrison's manager uses Herzberg's theory to identify factors affecting employee encouragement. The study concludes that organizational behavior is a complex concept involving various aspects such as motivation, structure, culture, teamwork, and group dynamics.

ORGANIZATIONAL BEHAVIOUR
1

Table of Contents
Introduction..........................................................................................................................................1
Task 1 Management environment and Leadership...............................................................................1
1.1 Basic forms of organizational structure and culture. State advantages and disadvantages of
each culture and structure (D2)...................................................................................................1
1.2 Relationship of structure and culture. Explain its effect on business performance..............3
1.3 What individual behavioral factors affect employees at work? Why as a manager individual
behaviour is required to understand............................................................................................3
2.1 Compare leadership styles of two manager and state difference between both (M1)..........5
2.2 Explain how organizational theory underpins the practice of management.........................6
2.3 Specify link of management theories with organizational practices (D1)............................7
3.1Impact of leadership styles on motivation in the organization during the period of change. 7
3.2 Compare how managers can motivate employees (M2).......................................................8
3.3 Usefulness of motivational theory to each of the managers.................................................8
Conclusion............................................................................................................................................9
References..........................................................................................................................................10
2

INTRODUCTION
Organizational behaviour is the field of study in which the company can analyze the
behaviour and attitude of employees in different business situations. The present study has been
made on Asda which is one of the largest entities in UK retail market. Thus, in such context
different structural and cultural aspects have been defined along with the impact of these facets on
performance of business. Furthermore, the research study has also included the need of different
leadership style for the business managers. Along with this description, organizational theories are
also discussed which strengthens the practice of management. The concept of motivation is also
emphasized in the subsequent study which managers are using to encourage employees for better
productivity.
TASK 1 MANAGEMENT ENVIRONMENT AND LEADERSHIP
1.1 Basic forms of organizational structure and culture. State advantages and disadvantages of each
culture and structure (D2)
Organizational structure is the way through which Asda is able to delegate roles and
responsibilities to all the employees in adequate manner and the structural aspects also defines
communication level between the employees (Jelinek, 2010). The categories of organizational
structure have been stated in the below section:
 Functional: All the job roles are divided among employees as per different departments
and functions. This is also essential in making the things clear within workforce. Each
portion of the organization is grouped according to its purpose.
Advantages Disadvantages
 Suitable for large and complex business
enterprises.
 It has a long and single chain of
command.
Lack of Teamwork
Difficult Management Control
 Product based structure: In a product based structure, the firm is organized around
specific products and each product group contains all the traditional departments such as
finance, marketing, HRM and so on (Baligh, 2006).
Advantages Disadvantages
 Greater product responsiveness to market
changes
 Performance of the firm is easier to
 Duplication and lack of economies of
scale
1

evaluate
 It often reduces the operating decision
makign burden of the top executives
 It creates problems for customers
 It may generate conflicts between
corporate objectives and product groups.
 Geographically structure: It is the one of several organizational designs. This structure
brings employees together in a geographical division; however other divisional structures
are based on product, services and customers.
Advantages Disadvantages
 Bring employees together
 Helps in proper responding
 Can create competition in different
departments of the organization
 Leads to duplication of activities
On the other hand, organizational culture is the value and beliefs that employees follow
while delegating and managing things. This is also another criteria in which businesses can define
its shared values and rituals that govern people. Categories of culture have been stated in the below
mentioned section: Power: For a Power Culture, it is essential for the firm to each aspect and decisions are
made by one or a small number of people (Suppiah and Sandhu, 2011). Role: This is particularly useful for specialist roles e.g. sales, marketing, project
management and legal compliance. Task: Task culture refers to the use of teams to complete tasks especially if the
task/objective has a number of steps.
 Person: Person cultures are found in organizations where there is an opportunity for
employees to develop their career and skills (Smith, 2013).
Concluding the structural aspect of Asda, it can be said that it assists the employers to
maintain disciplinary aspects in the business which further helps in reaching towards organizational
goals. This is the result of flat organizational culture. On the other hand, Asda is following task
culture where in the major focus is given to task accomplishment. Contrary to this, Morrison's has
been following matrix structure where in duties are delegated as per the specifications of
employees. In terms of cultural aspects, Morrison's has been following power culture where in
small group of people are entitled to take decisions.
2

1.2 Relationship of structure and culture. Explain its effect on business performance
Organization structure and culture both have direct relationship with each other and both
directly impacts business performance in diversified aspects. Through structure, employees can set
the boundaries through which they can communicate with other departments. This affects cultural
values of the business and restraints the employees for direct communication. For instance-
organizational values and beliefs can be protected if all the employees put equal efforts for the same
aspect. This can depict significant relationship between cultural and structural aspects (Oshagbemi
and Ocholi, 2006).
Looking towards the organizational scenario of Asda, it can be said that structure does not
allow the employees to present their views and opinion in decision making process; thus this has a
direct impact on the cultural values. This leads to communication gaps and as a consequence, it
impacts sustainability of the business. Contrary to this, Morrison's have been allowing all the
employees to participate in organizational sessions which generates positive environment at the
workplace. This probably aids the employees to put more efforts in enhancing organizational
performance.
1.3 What individual behavioral factors affect employees at work? Why as a manager individual
behaviour is required to understand Working environment: Environment plays a crucial role in changing the behaviour and
attitude of employees at workplace as it facilitates effective coordination and direction. At
Asda, individual behaviour changes due to different work environment and this probably
also hampers organizational performance (Mayfield and Taber, 2010). Changes in team structure: Changes in team structure influences employee behaviour
which has a direct impact on the performance level of employees. It has been analyzed at
Morrison's that employees get de-motivated when they shift to other teams and this happens
because they do not want changes in the job roles.
3

 Changes in policies and strategies: At Asda and Morrison's both, mangers have articulated
that individual behaviour gets changed where organizational policies are changed and
altered. This particular aspect has a direct impact on performance level. Leadership: Leadership influences individual behaviour at workplace as this factor changes
their behaviour to positive and negative aspects. The leader needs to adopt suitable style of
leadership so that followers can behave positively. Communication: Communication level is one such aspect that helps the employees to
transfer information from one place to another. Behaviour of people changes when things
are not properly communicated to them especially in the team. This generates negativity in
the team and affects overall team performance.
 Family and personal issues: It is an apparent fact that, behaviour of employee affects at the
time when he or she is facing issues in personal life. Personal life creates issues in work life
management as well; thus it directly hampers productivity of work.
Furthermore, it is essential for the manager to comprehend all those forces that affects
individual behaviour at workplace because managers have to get the things done by the employees;
therefore changes in employee behaviour could affect overall productivity of the organization
(Hassell, Zhao and Maguire, 2003). Managers have to keep idea about all those factors that affects
and encourages motivation of employees because that is concerned with overall business
performance. In the current study, manager at Asda has been paying attention towards all the
aspects that affects individual behaviour at workplace. In respect to this, the manager has also
explored that organizational culture is one such aspect that probably influences employees to
behave in different manner. Task performance: Manager of Asda must have to consider those forces that affect task's
performance and which have direct influence on employee behaviour. It is essential for the
manager to identify those forces that are concerned with the performance of employees. Loyalty: The manager of Asda must analyze loyalty aspects in the employees as how much
they are loyal to the company. Meanwhile, it is also essential for manager to identify those
forces that affects loyalty of employees for the business entity.
 Punctuality: It is the duty of manager to ascertain what forces affects punctuality of any
employees so that such issue can be properly managed. Furthermore, every manager should
promote punctuality in the business so that discipline can be maintained.
2.1 Compare leadership styles of two manager and state difference between both
Leadership is the aspect through which work can be performed through others and this is
also another way of managing organizational practices and processes.
4

 The leader of Asda has adopted the Autocratic Leadership style in which employees are
authorized to consider the directions which are given by the leader. Flow of authority and
command is managed in the centralized manner. As per the leader's viewpoint, the style is
more suitable than to Participative leadership because of the clear and direct command over
authority (Griffin and Moorhead, 2009). Being one of the largest entities, the leader of Asda
is satiated with the adopted style.
 Furthermore, the leader of Morrison's has adopted Democratic style where in all the
employees have the authority to present their views in the decision making process. This is
yet another way of facilitating creativity and innovation at the workplace. It has been
observed that leader of Morrison's has been satisfying the employees by providing them
with authorities and responsibilities in decision making process (Castro, Armario and Ruiz,
2004). According to the views of Morrison's leader, the style is suitable for the business
entity as compared to autocratic style as somewhere through this subsequent leadership
style, motivational level of all the employees are maintained.
Both the styles are effective according to different business situations as both are effective in
terms of managing work processes properly. However, both the leaders have to make sure that
employees are able to meet organizational goals as per the directions determined by the leaders. In
terms of conclusion, it can be said that leadership styles of both the organizations are effective in
their own way and they are also beneficial for proper business management. It is can be said that
autocratic style sometimes seems to be beneficial because that helps in conducting all the job roles
in appropriate way. Moreover, democratic style is effective because that includes employee
satisfaction aspects.
M1
Autocratic leadership style is usually considered as more beneficial since Asda is able to
manage all the disciplinary aspects in the business activities. Further, Asda is also emphasizing on
adequate management; hence for such purpose, the leader believes to be more autocratic in all areas
of concern (Future Leadership at Asda: the inside view, 2011). The employees are also able to
manage roles and responsibilities in adequate manner because the leader guides them to perform all
the duties in prominent manner.
Leader of Morrison's uses democratic style where in employees are authorized to give their
suggestion in decision making process. The style seems to be more effectual because it works for
employee motivation (Morrisons sacks half its senior management team, 2015). Employees are able
to conduct all their duties in proper manner and leader's ability and guidance drives them to do so.
The leader is able to take appropriate decision for business management and success; hence the
5

style seems to be adequate for the organization. Laissez faire is another style of leadership in which
leader lacks direct supervision of employees and fails to provide regular feedback to those who
work under the supervision. This style usually hinders the production of employees who need
supervision. Managers who use transactional leadership style receive directions for certain tasks so
as to perform activities for acquiring more rewards for the team members according to the
performance results.
2.2 Explain how organizational theory underpins the practice of management (D1)
From many research studies, it is articulated that, Organizational theory has been developed
with the aim to interpret the structure of organizations. Several researchers have argued that
organizational theory believes in having a close co-operation between management and employees.
All of the theories in this realm are commonly categorized into several categories which are
discussed in the below mentioned section: Socio technical approach: Social technical theory is also termed as modern approach where
in organization mainly focuses on developing team coordination and for those structural and
cultural aspects are managed accordingly (Daft, 2009). Firms that operate business on larger
scale usually adopt such theory; hence Asda has been using the same approach for so long.
Furthermore, the business entity is also able to conduct all the processes in effectual manner.
 Classical theory: Classical theory emphasizes on accelerating organizational productivity
and the theory is also useful in encouraging organizational cultural aspects. It has been
observed that Morrison's has adopted this subsequent theory so as to develop team building
aspects. All such efforts helps Morrison's to build prominent level of coordination at the
workplace. Neo classical theory: The neoclassical theory was an attempt to incorporate the behavioural
science into management thought in order to solve the problems caused by classical theory
practices. There are two main sources in this theory such as the human relations approach
and the behavioural movement. Henry Fayol's 14 principles: As per the theory, managers must emphasize on specifications
of each and every employee so that duties and tasks can be delegated accordingly. The chief
focus is given towards all the principles of management that needs to be applied in the
workplace so that every practice can be properly managed.
 Bureaucracy theory: It lays emphasis on authority structure and description of organization
and the system also treats the organization as a closed system. It is based on practising; thus
it increases experience of managers in several grounds. Further, emphasis is being given on
6

economic efficiency and formal structure.
2.3 Specify link of management theories with organizational practices (D1)
1. Scientific management approach: Scientific Management is mainly adopted so as to
increase productivity by increasing efficiency and wages of the workers. Asda has been
focusing on such approach so that to deliver proper amenities to all the employees.
Application of such approach can enhance employee capability and as a result they would be
able to perform in adequate manner (ASDA Leadership Program, 2011). As apparent the
approach of scientific management comprises of several principles; thus Asda can manage
service delivery aspects properly. One of the major benefits of using such approach is that
employees are able to follow proper chain of command.
2. Administrative approach: Team management is the best aspect that can be facilitated
through the application of such approach (Mayfield and Taber, 2010). The approach seems
to be profitable for the organization because that enhances the productivity of the
organizational members with disciplinary actions. Morrison's have been using the approach
so that all the business activities can be managed in proper way. This theory has been
applied at Morrison's; thus for such purpose, the business entity is able to facilitate team
bonding in adequate way. Hence, it generates more opportunities for team bonding and as a
result, work complexity aspects are managed properly.
These management theories have been assisting the organizations to plan and schedule all
the work aspects in adequate manner. It has been observed that Asda's practices are getting
underpinned by application of these theories.
3.1Impact of leadership styles on motivation in the organization during the period of change
It has been observed that at the time when organization implements change in the business
activity, managers and leaders have ensure that employees are motivated and encouraged enough to
cope with the changes. Leadership styles have a direct impact on motivation of employees; however
to comprehend the same aspect, interrelationship of employee motivation and leadership has been
presented here. It is the duty of leader to motivate employees at the time of change management and
both the managers have to adequately perform their duties in this domain (Ahmad, 2009). However
there might be some aspects that could affect people from leadership styles which are also pointed
out briefly in the below section:
 It has been observed that leader of Asda is using autocratic leadership styles in which
employees are not allowed to raise their opinion in the decision making process. This
aspect sometimes hamper the interest level of employees and due to non availability of
authorities and power, they get demotivated. At the time of change management,
7

employees should get the opportunity to raise their advice in execution process so that
certain sorts of modifications can be facilitated (Baligh, 2006).
 On the other hand, leader of Morrison's has been using democratic style which helps the
business to acquire many benefits. The workforce are also motivated enough due to proper
delegation of duties. Thus, the leader generally does not face any sort of problem related to
employee support at the time of change management.
3.2 Compare how managers can motivate employees
In order to motivate the employees, managers of both the cited organizations have been
following different theories which helps the managers to encourage the employees for better
productivity. The different theories are mentioned in the below section: Asda: The manager of Asda has adopted Maslow's need hierarchy theory which focuses on
different needs of the employees in hierarchical order (Suppiah and Sandhu, 2011). The
theory works on the principle that as the person is contended with one need, he moves on to
the other need.
 Morrison's: The manager has been using Herzberg two factors and through this, each and
every need of employee is considered and is fulfilled by the organization. This theory is also
known as two factors theory. According to this, there are some factors in the workplace
which causes job satisfaction (Jelinek, 2010). However, on the other hand, there are also
some factors which results in dissatisfaction among the employees.
M2
Maslow's theory of motivation aids the manager of Asda to meet each and every need of the
employees. Thus, it can be said that in order to motivate an employee, it is important for the
managers to comprehend that at which stage the person is lying in the hierarchy so that the
managers and leaders can address their needs efficiently. The needs can be categorized as per the
level of motivation and this also assists the managers to find out employee retention aspects.
Morrison's has been emphasizing on Herzberg theory which is discussed in the subsequent
section which further assists the business to facilitate suitable atmosphere at workplace. Employees
are able to derive rewards and recognition from the management which is yet another source of
managing employee encouragement.
3.3 Usefulness of motivational theory to each of the managers
The motivational theories are helpful for the managers of Asda and Morrison's as that allows
the managers to encourage workforce for longer span. The usefulness of motivational theories is
mentioned in the below mentioned section: Asda: The manager of Asda has been managing employee interest with the help of
8

Maslow's need hierarchy theory where in motivational aspect of employee at each and
every level is identified in clear terms. With the help of different needs of employees, Asda
is able to drive the employees for productivity which improves the overall efficacy of the
business entity (Hassell, Zhao and Maguire, 2003).
 Morrison's: The theory is useful for the managers since through that managers are able to
identify those aspects that affect employee encouragement level in the business processes.
Issues related to employee dissatisfaction and discouragement is fewer at Morrison's
because all the concerned factors are explored in appropriate manner. Manager of
Morrison's has been imparting training facilities to the employees so that they can raise
their capability level. Hence, application of all such aspects ensures that employee interest
is considered in every process of the organization (Griffin and Moorhead, 2009).
CONCLUSION
From the entire research, it is articulated that organizational behaviour is a concept that
includes various aspects such as motivation, organizational structure and culture, team work and
groups. Organizational behaviour and culture is depicted in the personality of a corporation and
attitude of employees towards their working. The study has depicted that structural and cultural
aspects of Asda and Morrison's both have direct relationship with each other and probably impacts
business practices in diversified manner.
9

REFERENCES
Books and Journals
Ahmad, K., 2009. Leadership and work motivation from the cross cultural perspective.
International Journal of Commerce and Management. 19(1). pp.72 – 84.
Baligh, H. H., 2006. Organization Structure. Springer.
Castro, B. C., Armario, M. E. and Ruiz, M. D., 2004. The influence of employee organizational
citizenship behavior on customer loyalty. International Journal of Service Industry
Management. 15(1). pp.27 – 53.
Daft, 2009. Organization Theory and Design, 10th Ed. Cengage Learning.
Griffin, R.W. and Moorhead, G., 2009. Organization Behavior, 9th Ed. Cengage Learning.
Hassell, D. K., Zhao, S. J. and Maguire, R. E., 2003. Structural arrangements in large municipal
police organizations: revisiting Wilson’s theory of local political culture. Policing: An
International Journal of Police Strategies & Management. 26(2). pp.231 – 250.
Jelinek, S., 2010. The Impact of Management Practices and Organizational Structure on Firm
Performance. GRIN Verlag.
Mayfield, O. C. and Taber, D. T., 2010. A prosocial self-concept approach to understanding
organizational citizenship behavior. Journal of Managerial Psychology. 25(7). pp.741 – 763.
Online
ASDA Leadership Program. 2011. [Online]. Available at:
<http://www.iedp.com/Blog/ASDA_Leadership_Program>. [Accessed on July 21 July 2014].
Future Leadership at Asda: the inside view. 2011. [Online]. Available at: <http://cirrus-
connect.com/cirrus-articles/future-leadership-at-asda-1339>. [Accessed on July 21 July
2014].
Morrisons sacks half its senior management team. 2015. [Online]. Available at:
<http://www.theguardian.com/business/2015/mar/24/morrisons-sacks-half-its-senior-
management-team>. [Accessed on July 21 July 2014].
Oshagbemi, T. and Ocholi, A. S., 2006 "Leadership styles and behaviour profiles of managers",
Journal of Management Development. 25(8). pp.748 – 762.
Smith, W., 2013. Behavioral Organizational Theories. [Online]. Available through:
<http://smallbusiness.chron.com/behavioral-organizational-theories-4963.html>. [Accessed
on 20th July 2013].
Suppiah, V. and Sandhu, S. M., 2011. Organisational culture's influence on tacit knowledge-sharing
behavior. Journal of Knowledge Management. 15(3). pp.462 – 477.
Toor, S. P. T., 2009. People management: an imperative to effective project management. Business
Strategy Series. 10(1). pp.40 – 54.
10