Leadership and Organizational Performance

This assignment delves into the crucial relationship between leadership and organizational performance. It examines how different leadership styles, organizational culture, and knowledge management practices contribute to a company's success. The analysis draws upon research findings and theoretical frameworks to illustrate the impact of these factors on overall performance outcomes.

ORGANISATIONS AND BEHAVIOUR

Table of Contents
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Different organisational structures and culture for two different organisations, City
College and Enterprise Car Rental.........................................................................................1
1.2 How the relationship between an organisation’s structure and culture can impact on the
performance of a business......................................................................................................2
1.3 The various factors that might influence the way individuals behave at work................3
TASK 2......................................................................................................................................4
2.1 Compare the effectiveness of different leadership styles and consider how each style
would impact on the two organisations..................................................................................4
2.2 How organisational theory is linked to the style of management which is most likely to
be practised in the two organisations.....................................................................................4
2.3 Explain which of the theories of management and leadership adopted by both City
College and Enterprise rent-a-car...........................................................................................5
TASK 3......................................................................................................................................6
3.1 Impact that different leadership styles are likely to have on the behaviour of staff at
City College and Enterprise...................................................................................................6
3.2 Compare the application of the different motivational theories that City College and
Enterprise might adopt and discuss what effect this would have on their respective
workforces..............................................................................................................................6
3.3 Usefulness of a motivation theory for managers..............................................................7
TASK 4......................................................................................................................................7
4.1 Explain the nature of groups and group behaviour within the workforces of City
College and Enterprise...........................................................................................................7
4.2 Identify the various factors that could make a team effective and also those factors that
may be likely to threaten the success and effectiveness of a team.........................................8
4.3 The impact of technology on the performance of City College and Enterprise...............9
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INTRODUCTION
The basic purpose of this report is to know different theories and concepts related to
organisational behaviour that are helpful for managers to work in a company. Organisational
behaviour explains the manner in which people interact with each other in company or
outside the company. The interaction includes exchange of ideas, values, attitudes, belief, and
thoughts. The report illustrates that the form of structure followed by company depicts the
culture of an organisation. For explaining different structure and culture two organisation are
taken such as City College and Enterprise rent-a-car. Further, the report shows the impact on
the performance of company as a result of following any particular structure and culture. The
paper also shows the effectiveness of different leadership style that can be adopted by an
organisation and its impact on the motivation to employees which is crucial in order to
improve the productivity of the company.
TASK 1
1.1 Different organisational structures and culture for two different organisations, City
College and Enterprise Car Rental
In today’s business world, there are different structure that is followed in an organisation
such as:
Functional Structure – In a functionally structures organisation, all the operations of a
company are organised as per the activity that is performed by employees. For instance, City
College is divided into three main functions such teaching, human resource, and
administration. All the employees are segregated into different heads according to their skills.
The functional structures allows employee to focus on what they are best for. Such focus of
employees leads company to be highly efficient.
Matrix Structure – It is a grid form of organisational structure and more complicated than the
functional structure. The company is divided both according to the functions and
product/services. For instance, Enterprise have different functional head such as accounting,
finance, and marketing. Also, as it is a service based company so it have different service
sector such as car hiring service, customer services etc. In this manner an employee serves
different division. This is completely different from functional structure as there is only one
reporting and in this structure there are more than one reporting line.
Functional structure is followed in City College, as in this company all the departments
are managed by particular functional heads such as finance, marketing, production, HR,
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administration etc. Whereas a different kind of structure is followed in Enterprise rent-a-car
that is matrix structure. There is no any single line of reporting in this company and they
syndicate both functional as well as divisional structure.
Moreover, organisational culture is the nature, idea, belief, and thoughts of a person shared at
the workplace. There are various kinds of culture followed in a company as mentioned
below:
Role culture – It is a kind of culture in which a particular job or task is assigned to every
employee working in a company. Based on their roles, employee perform their work in an
organisation. Under this culture, a well-organised mechanism is followed as everybody is
assigned a particular work.
Power culture – Under this culture, company does not authorise every person to take decision
according to their choice as the decision making power lies with a single person only who is a
manager and supervises their subordinate’s work. Company have a strict control on the
operations in an organisation if it follows this form of culture.
Role culture is followed in City College where all employees perform their assigned
task in a prescribed manner. On a contrary, power culture is followed in Enterprise rent-a-car
where all the employees are not involved in decision making as only managers are authorised
to take decision and delivers their decision to subordinates under them.
1.2 How the relationship between an organisation’s structure and culture can impact on the
performance of a business
The structure creates a boundary for the culture to execute, whereas the structure of
company dictates by the culture. The structure of organization fully involves in its culture.
Moreover, there are different type of practices and methods within the infrastructure which is
referred by the structure that assists the organizational culture to run with consistency and
efficiency. Along with this, the culture of the company should be a trademark of its structure.
Moreover, the structure of the company primarily deals with its culture at the workplace
(Ismail Al-Alawi and et.al., 2007).
In the given case, City College adopts functional structure and based on which, it
promotes individuals career development. The particular structure allows employees to share
their ideas with others at the work. Also, the functional unit of organization manages by the
professionals who have in depth experience and knowledge in their specific field (Wright,
2016). In addition to this, the organization follows role culture, on the basis of which
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employees are divided to complete specific roles. This supports the management in reducing
conflicts and stress among the staff members, as all are aware with their particular
responsibilities and hence, achieve their personal and organizational goals effectively
(Deshpandé and Farley, 2004).
Beside above, Enterprises uses the matrix structure. It allows the company to use highly
expertise staff whose are proficient in their particular fields. In addition to this, it reduces the
duplication of work and allows the optimum utilization of the available resources, which
leads to organizational success. Additionally, the company adopts person culture, which
allows the enterprises to focus on their employees working behaviour. Also, provide them
opportunities to enhance their skills and career from which they feel proud and give their best
to achieve desired goal (Kotter, 2008).
1.3 The various factors that might influence the way individuals behave at work.
An organisation is formed by combining different individuals who are directed to
accomplish common goals and objectives of a company. The behaviour of employees are
affected by both internal affairs and external environment. In City College and Enterprise,
many of these factors influences the behaviour of employees. One such factor is personality
of an individual which is undoubtedly be different from person to person. The change in
personality is due to the change in background, skills, and outlooks. Another factor is ethnic
background of a person which will play essential part in determining the way of their
thinking.
The behaviour of individual working in a company is also influenced by the status of
employee holding in an organisation. For instance, the behaviour of person who is leading the
group or team will be different than the person acting under him. This is different due to the
difference in skills, abilities, status, level and power. The behaviour is also determined by the
geographical culture. The managers and employees in Enterprise are from different
geographical area and background which will have impact on their perceptions, their views
and actions according to the culture they inhabit in.
In City College, managers give emphasis on improving the personality of employees in
order to improve individual’s behaviour. Conversely, managers of Enterprise focuses on
geographical culture of employees because there are 75000 employees under this company
working and people with different culture have different behaviour at the workplace.
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TASK 2
2.1 Compare the effectiveness of different leadership styles and consider how each style
would impact on the two organisations
From the case study of Enterprise rent-a-car it has been analysed that the company
follows autocratic style of leadership where managers does not involve employees in decision
making. Under this form of leadership style, employees are bound to follow predetermined
method of work as set by the leaders. In this company, general manager takes decision
without involving anyone in the decision making process (Ramirez, 2016). Branch manager
has role to best serve their customers locally. Each branch operates as a small unit or
enterprise in their own. Managers are allowed to take decision required for serving their
customers in a better manner. Employees are not allowed to take decision and hence
employee’s creativity is not shown in this company. However, they have to work according
to the prescribed norms (Škerlavaj, Štemberger and Dimovski, 2007).
On the contrary, democratic as also known as participative form of leadership is
followed in City College. The company is divided into three main departments such as
teaching, human resource, and administration. These three departments work together and
employees under all departments are allowed to take decision and share their views and
thoughts. Their shared ideas are evaluated by managers and executed in decision if fit for the
task (House and et.al, 2004).
2.2 How organisational theory is linked to the style of management which is most likely to be
practised in the two organisations
Management is a function through which work performed by all employees are
coordinated for achieving common goals and objectives of an organisation. The management
focuses on optimum utilisation of resources available with the company. Managers have an
authority to delegate work to employees and take follow up (Zheng, Yang and McLean,
2010). These practice of management and organisational theory are connected to each other
and they are affected by the following:
Neoclassical theory – In this theory, attention of management is towards human side. It
generally includes a kind of environment having information flow within an organisation.
The basic fundamental is to provide value to human relations and improve their behaviour at
workplace (Germano, 2010).
Weber’s bureaucratic theory – According to this theory, an organisation is characterised by
division, well-defined hierarchy, prescribed rules and various regulations, and impersonal
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relationship. By using this theory with the help of proper chain of command, company can
delegate the authority of work to their subordinates (Cole, 2004).
Classical theory – This theory is also known as management of Taylorism. It study the
performance of employees in detail and provide them better value of their contribution. The
factors of this management are waste elimination, logic, rationality etc. In this management
practice, employees are allotted authority to take decision according to the situation
(Hambley, O’Neill and Kline, 2007).
2.3 Explain which of the theories of management and leadership adopted by both City
College and Enterprise rent-a-car
A per the analysis of case, Theory Y of McGregor is followed by City College which
delegates authority to make decision to employees. The company is divided into three main
heads such as teaching, human resource, and administration. These three departments work
together to achieve common organisational goals and objectives. Employees under this theory
work freely and take decision according to their skills and ability. This increases their
enthusiasm and motivates them to work better for an organisation (Vera and Crossan, 2004).
On the contrary, Theory X of McGregor is followed by Enterprise. Managers tells their
subordinates what they have to do and then supervises their subordinate’s work. This reflects
an autocratic style of leadership. The managers delivers the decision to staff and they have to
work within the scope of decision taken by leaders. In order to measure the satisfaction of
employees by the services provided by Enterprise, leaders have implemented ESQI measures
in a company. Also, the workers are not allowed to serve their customers in their own way as
per their skills and knowledge and as a result employee’s innovation and creativity is not
shown in a company (Director, 2008).
Hence, it is analysed that management practice adopted by City College is best suited to
organisation that believes in innovation and not resistance to change. Here, employees are
more motivated towards the work of company because they are allowed to take decision
which creates a sense of enthusiasm in employees. However, in order to comply with the
prescribed guidelines for serving customers in manner as suggested by owners, management
practice adopted by Enterprise will be suitable. As these guidelines are set by owner having
experience, this would definitely improve productivity of company (Robbins, 2001).
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TASK 3
3.1 Impact that different leadership styles are likely to have on the behaviour of staff at City
College and Enterprise
In the present competitive environment, companies makes its expansion at global level
and face several challenges in achieving their goals as well as chase to become more
successful than others. In the accomplishment of such goals, a very significant role is played
by leaders and boost the performance of employees by increasing their satisfaction with jobs.
There are two different leadership styles that can create impact on the City College and
Enterprise employees’ behaviour. These are:
Transformational style – The transformation leaders are always charismatic. They encourage
subordinates as well as appeal to their moral and ideals values by developing plus
representing an inspirational vision of future. This type of leadership includes the formation
of an emotional attachment in between employees and leaders. Also, it nurtures a climate of
trust, encourages the development of individual and nurtures the confidence of employees.
Furthermore, the transformational leadership comprises the elements of power sharing and
participative decision making (De Jong and Den Hartog, 2007).
Transactional style – Such type of leadership is the process of exchange. It is a matter of
employee’s contingent reinforcement on the basis of performances. This style motivates
workforce by appealing their own desires on the basis of instrumental economic transactions.
Hence, transactional leaders concentrate their efforts on the task compliance and completion
as well as rely on the punishments and rewards to affect the performance of employees
(Anderson and Anderson, 2010).
3.2 Compare the application of the different motivational theories that City College and
Enterprise might adopt and discuss what effect this would have on their respective
workforces
Every person have different motivational level, skills, knowledge, talent etc. In order to
improve the productivity of employees as well as company as a whole, motivation plays a
vital role. Hertzberg motivational theory and Expectancy theory can be compared to
comprehend the effect that would have on personnel present in the company (Chan and
Drasgow, 2001).
Management of City College allows employees to participate in decision making and
use both online and offline mode of communication within and outside the organisation. It
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creates a sense of responsibility among employees which motivates them to contribute their
best in a company (Nuttin, 2014).
On the contrary, expectancy theory is adopted by management of Enterprise. This main
factors are given emphasis under this theory that is expectancy, valence, and instrumentality.
These are explained as instrumentality is a performance required to obtain objective,
motivation is a product of expectancy of employee and desirability to get positive result is
valence (King and Marks, 2008). Moreover, level of satisfaction can be ascertained with the
help of these three factors.
3.3 Usefulness of a motivation theory for managers
Motivation is a key factor to improve the productivity of the company. The
organisation grows with the high contribution of employees to the work of company. For
remain competitive and better goodwill, efforts need to be taken by the management. There
are different motivation theory that can be applied to workforce in order to obtain maximum
out of them. Also, it is essential to comprehend different behavioural patterns and expectation
of employees to be motivated (Tyler and Blader, 2003).
There is no fixed process of motivation as it depends on different perspectives.
However, managers are required to understand the expectation and needs of employees
because some may expect monetary benefits and some may require intrinsic factors (Miner,
2015). The following tools can be applied in order to motivate the employees:
 Enhancing job;
 Appraisal system;
 Financial benefits such as bonuses etc.;
 Recognising performance;
 Eliminating limitation that hamper employee’s performance;
 Assigning more responsibilities and accountability
TASK 4
4.1 Explain the nature of groups and group behaviour within the workforces of City College
and Enterprise
Group is refereed as a bunch of employees working together to accomplish common
goals and objectives of the company. Generally, groups are formed for completing any
particular job or task. The nature of group present in the company influences the performance
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of employees (Shalley and Gilson, 2004). The different groups that can be formed are as
follows:
 Formal Group – This is a group which is created by company itself for completing any
task or activity. The information flows freely in the group within an organisation. The
person with similar skills, ability, and talent are combined to form a group.
 Informal Group – This group is created by individual’s themselves having a common
motive. Generally, such group is formed to win any argument or for accomplishing any
common goal whether or not related to business. Such group may hinder the performance
of company like a union of workers demanding increment (Scott and Davis, 2015).
Moreover, following factors can be utilised to ascertain the behaviour of group:
 Involvement in decision making;
 Brand loyalty and loyalty towards members
 Smooth flow of information
 Freedom to share ideas
4.2 Identify the various factors that could make a team effective and also those factors that
may be likely to threaten the success and effectiveness of a team
It is essential for managers to check whether the teamwork has resulted in achievement
of set goals or not. The effectiveness of team can be improved by the following factors:
 Communication – Communication refers to the way through which ideas, belief, and
knowledge are shared among people. Managers should promote formal communication
and allow free communication in order to improve employee’s performance (Enock,
2006).
 Cohesiveness – It is the connection and inter link between the members of team. High
cohesiveness among members will results in better results.
 Homogeneity – Group is formed with people having similar nature and behaviour. It
results in less confusion and better results (Bass and Riggio, 2006).
 Size of group – It is better to form small groups so that the bounding is strong and work is
finished early. In big group it is difficult to coordinate with so many people.
On the contrary, the effectiveness is threatened by the following:
 Leadership – The style of leadership such as autocratic and democratic affects the
performance of group as it also influences the motivation among employees. Democratic
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leadership improves the productivity of team as all the members are involved in decision
making.
 Synergy – The effectiveness of group is increased by presenting synergy through
employing right person to right job with the required skills.
 Group norms – The procedure that has to be followed influences the performance of
group. It is suggested to implement easy norms that can be easily adoptable (Enock, 2006).
4.3 The impact of technology on the performance of City College and Enterprise
With the increase in advanced technology business are adopting new innovative ideas
to improve the productivity of the company. There are many ways to improve team
functioning and there are ways of technology that hinders their performance also. In this
regards, City College and Enterprise learn the advance technology to improve their
functioning and achieve competitive advantage (Devaraj and Kohli, 2003).
In order to improve and growing with working in a team both the companies take use of
e-mails, 4G network services, personal laptops and different gadgets that improves the team
functioning through effective communication. E-mails are used for instant messaging and
sending different letter and document in formal manner. Work under team or group can be
handled effectively by taking the use of laptop and smart phone which gives facility of
anywhere and anytime access to information (Alton, 2016).
Further, video conferencing is a tool to conduct meeting oversees without having
physical presence of member. There are many other facilities under technology which
improves operation of the company. In this context, both City College and Enterprise adopts
technology base for sharing various data and information related to business. Also, Enterprise
is a service related company which takes the most effective use of technology in their
operations (Davenport, 2013).
CONCLUSION
From the above report it can be concluded that organisation behaviour is influenced by
the structure and culture followed in the company. Also, the culture adopted in the company
is the result of structure that is followed by management of the company. The above report
explains various management and leadership style that can be followed in a company and it is
analysed that democratic style is the best suitable which improves the motivation that directly
increase the productivity of an organisation.
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