Organizational Behavior and Leadership Theories

The assignment delves into the multifaceted aspects of organizational behavior, encompassing topics like management practices, organizational structure, and work motivation. It examines various leadership theories and styles, analyzing their influence on employee performance and job satisfaction. The study also investigates the role of interpersonal relationships and communication within organizations.

Organization Behavior

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
a). Comparing the different organizational structure and cultures in the context of City college
and Enterprise car rental..............................................................................................................1
b). Stating the relationship between the organizational structure and culture............................2
c). Evaluating the factors which have impact upon the behavior of individual at workplace....2
TASK 2............................................................................................................................................3
a). Comparing the effectiveness of different styles of leadership...............................................3
b). Stating the ways through which organizational theories can be linked with the management
styles............................................................................................................................................4
c). Stating the leadership theories which are adopted by City college and Enterprise car rental
.....................................................................................................................................................4
d). Discussing the impact of different leadership styles upon the behavior of the staff of both
the enterprises..............................................................................................................................5
e). Comparing different motivational theories in relation to the given case scenario.................5
f). Evaluating the benefits which both the enterprises will derive by undertaking motivational
theories........................................................................................................................................6
g). stating the nature of group and group behavior in relation to the workforce of City college
and Enterprise..............................................................................................................................6
h). Identifying the factors which helps in making effective team as well also may threaten the
success of it.................................................................................................................................7
i). Discussing the role of technology in the success of business.................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organization behavior emphasizes on the ways in which groups interact with each other.
Structure and culture of the firm have high level of influence on the functions and activities of
personnel which are performed by them. In includes wide areas namely sociology, psychology,
communication and management (Pinder, 2014). A leadership and management strategy plays a
vital role in encouraging the workforce towards attaining organizational goals and objectives. In
this report, structure and culture of City College as well as Car rental is analyzed on the basis of
cited case scenario. Besides this, the present report will also shed light on the factors which
affects working aspects of personnel at the workplace. Further, this report will also examine
leadership theories and styles which both the firm is required to adopt to motivate their human
resources. In addition to this, it will also develop understanding about the motivational theories
and aspects through which business entity can encourage their workforce.
TASK 1
a). Comparing the different organizational structure and cultures in the context of City college
and Enterprise car rental
Organizational structure represents the system in which tasks are allotted to the personnel
of the firm. In addition to this, it also shows the person to which human resources of the firm
need to report about their work. Specifically, there are mainly two types of organizational
structure which exists in City College an Enterprise care rental namely flat and hierarchical
structure. In the vertical or hierarchical organizational structure, each employee has to report to
other entity or personnel about their performance and other working aspects. However, it is to be
critically evaluated that communication hindrance is one of the main aspect which limits the
significance of hierarchical structure. In addition to this, high level of control is practiced by the
firm on the activities of their employees in tall structure.
On the other hand, in flat organization structure there are very few levels which are
involved between the management and staff level employees (Robbins and Judge, 2013). It is the
most effectual structure which facilitates better coordination and communication between all
levels of employees. In comparison to tall structure, manager has less control on the activities
which are performed by their personnel.
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Besides this, culture consists of rules and other aspects which individual has to follow to
work within the business enterprise. It includes power and harmonious or integrated culture
which are highly suited to the above mentioned organizational structure. In power culture, the
power is held by only some of individuals. This culture facilitates quick decision making and
thereby helps in maximizing productivity and profitability of the firm. On contrary to this, in
harmonious culture, organization provides right of decision making to their personnel about their
own working aspects. On the basis of the cited case scenario, City College has adopted tall
structure whereas flatter structure is undertaken by the enterprise rental car.
b). Stating the relationship between the organizational structure and culture
High level of relationship exists between the culture and structure of the firm. According
to the attribute of tall structure, power culture is more suitable to City College. In this type of
culture, personnel are accountable to report to more than one authority. In power culture,
subordinates respect the supervisor who supervises their performance. Nevertheless, this culture
has negative influence on the performance of the employees (McShane and Von Glinow, 2012).
Moreover, subordinates have to perform each work by taking permission from their supervisors.
This aspect limits the creativity of the employees and thereby creates difficulties in front of the
college for building or sustaining competitive advantage over others.
In contrary to this, Enterprise car rental have followed harmonious culture which is
closely related to the flat organizational structure. In harmonious and integrated culture,
company provides decision making right to their personnel about their work (Fan, Wong and
Zhang, 2013). This aspect facilitates quick decision making and thereby creates satisfaction
among the workforce. Thus, with the help of satisfied workforce Enterprise is able to serve the
customers in an effectual manner and assists in enhancing the sales of the firm.
c). Evaluating the factors which have impact upon the behavior of individual at workplace
Leadership, motivational level, communication, working environment and culture etc. are
the main factors which closely affects the behavior of individual at the workplace in the
following manner:
 Effective communication between the management and employee provides clear idea
about the activities which personnel need to perform. In addition to this, it also
encourages human resources to come up with new ideas which in turn help in developing
satisfaction among them. It is cited in the case scenario that Enterprise car rental
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undertake open door policy which motivate human resources of the company to give their
suggestions and thereby raise employee productivity and profitability.
 In addition to this, leaders also place positive influence on the behavior of the personnel.
Leaders provide direction to their followers which enable then to give their best efforts in
the right direction (Martin and et.al, 2012). Through this, employees are motivated to
perform in an efficient manner without facing any kind of difficulty.
 Along with it, if working environment and culture of the firm is supportive then it places
significant impact on the performance of the employees. Harmonious culture or
environment encourages people to stay longer within the firm.
TASK 2
a). Comparing the effectiveness of different styles of leadership
Styles of leadership includes autocratic, democratic and transformational etc. which are
as follows:
Participative leadership: In this style, company encourages their employee to participate in the
decision making process of the firm. This style positively impacts the working aspects of City
College and Enterprise car rental. By adopting such style, organizations are able to make changes
more successfully without the resistance of their personnel.
Autocratic leadership: It refers to those in which manager of the firm does not allow their
followers to involve in the decision making process. Manager only has the authority to take
decisions which employees of the firm have to follow (Schneider, Ehrhart and Macey, 2013).
This style is not highly effective for College and Enterprise because it restricts the creativity
aspect of their employees that closely affects the growth and success of the firm.
Transformational leadership: Under this style, leaders encourage their employees with the help
of high level of communication and visibility. Through this, Mr. Wakefield and Enterprise is
able to enhance the efficiency and productivity of their personnel.
On the basis of the above mentioned analysis, it has been identified that Mr. Wakefield is
required to adopt participative leadership style to achieve success in the competitive business
arena. On contrary to this, transformational leadership style proves to more suitable for the
Enterprise car rental.
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b). Stating the ways through which organizational theories can be linked with the management
styles
According to the given case study, open door management policy is practiced within City
College and Enterprise car rental. This policy creates openness and transparency within the
business organization. In addition to this, such policy also fosters effectual communication
between the management and employees of both the firms. Open door policy provides
opportunity to the supervisor as well as to all level of employees to share their views, ideas and
suggestions. Besides this, manager also makes discussion with their personnel about the personal
issues. This policy keeps the morale of their employees high to the large extent. Along with it,
this style of management develops feeling of association among their employees and thereby
enhances sales and profitability of their employees (Open door management policy, 2016). On
the basis of features of open door management policy classical organization theory is highly
linked with the open door policy which is adopted by both the firms. Classical theory places
more emphasis on the recruitment and selection of highly skilled and efficient employees
(Nancarrow and et.al, 2013). Through this, both the business organizations are able to deliver
quality services to the users and thereby help them in getting desired outcome or profit.
c). Stating the leadership theories which are adopted by City college and Enterprise car rental
Specifically, there are four leadership theories namely trait, behavioral, full range and
contingency which City college and enterprise can use to guide their employees. Trait theory of
leadership entails that leaders are either born or made with specific qualities which helps them in
providing right direction to their employees. On the other hand, contingency theory places
emphasis upon the aspect that no single theory is appropriate in every situation. Thus, it focuses
that company needs to select suitable theory by considering on business situation. On the
contrary to this, behavioral theory incorporates reward and punishment system to motivate their
personnel (Leadership Theories, 2016). Along with it, full range of theory focuses on trust which
is basis of the relationship between the leaders and their followers.
In context to the given case scenario, City College has adopted full range theory of
leadership to enhance morale and efficiency level of their employees. In accordance with this,
theory leader have framed highly flexible rules for their employees and focuses on building
faithful relationship with their employees. On the contrary to this, Enterprise care rental give
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priority to recruiting skilled and talented people who have the ability to lead the actions of other
people.
d). Discussing the impact of different leadership styles upon the behavior of the staff of both the
enterprises
Various styles of leadership have either positive or negative impact upon City College
and Enterprise car rental. Democratic style has positive influence on the growth and success of
both the firm. City College can cut down the redundancies which take place in working aspects
of all departments such as human resources, administration and staff department. By involving
employees in the decision making process, company can make improvement in the operations
and functions of college by taking into consideration the unique ideas of the personnel. In
addition to this, this style also offers high level of benefit to enterprise car rental.
In services industry, company can attain success when they have talented, motivated and
skilled personnel. Manager of Enterprise can enhance the satisfaction level of their employee by
including them in the decision making process. On contrary to this, autocratic style restricts
employees to implement their unique ideas and suggestions because they have to follow
guidelines which are set by their managers (Gucciardi and et.al, 2015). This aspect negatively
affects the ability and creativity aspect of their employees. On other hand, transformational
leaders act as a guide in front of their followers. This aspect prevents mistakes of their
employees as well as it also provides assistance to the firm in building good image in the mind of
target market.
e). Comparing different motivational theories in relation to the given case scenario
Different motivational theories to the given case scenario are as follows. Mc Gregor motivational theory- This is the motivation theory that talk about two types
of managers. As per this theory, there are two types of managers one follows democratic
leadership style other follow autocratic style of the management. This theory has two
parts one is theory X and the other is Y. Theory X states that managers must be autocratic
in nature because employees do not prefer to work at the workplace. Hence, in order to
get work done it is necessary to follow autocratic approach. Whereas, theory Y is
different and it state that managers must follow democratic style because people love to
work and by motivating them productivity can be enhanced (Wan and et.al, 2015).
Enterprise car rental prefers employees who have good leadership skills and due to this
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reason Mc Gregor theory apply on the given organization. In this theory X is especially
applied on the firm.
 Maslow need hierarchy theory- This theory state that people have different type of needs
and same comes in existence in the sequence. If basic needs of human being are satisfied
then new needs comes in existence (Singh, 2015). Hence, an organization to motivate
employees must identify their needs and satisfy them. By doing so employees can be
motivated in a proper manner.
f). Evaluating the benefits which both the enterprises will derive by undertaking motivational
theories
Both organizations to a large extent will derive benefit from the application of the
motivation theories at the workplace. If MC Gregor theory is applied then firm will be in the
position to select appropriate leadership style for the business. By doing so, it will be able to
motivate its employees in the proper manner. If employees will be motivated then productivity
will get increased in an organization which will lead to enhance the profitability. Maslow need
hierarchy theory is another one that can be used by both organizations. This is because in both
organizations large number of employee’s works and it is necessary to motivate employees in a
proper manner. If motivation techniques are not able to meet employees’ requirement then they
will not feel motivated. Here, motivational theories help the business managers and show them a
way in which they can motivate employees to work hard. As per this motivation theory, it is
necessary to satisfy needs of employees step by step (Costa, Passos and Bakker, 2014). In this
regard, both organizations are required to identify needs of each and every employee.
Accordingly, monetary benefits will be given to the employees. In this way, by using motivation
theory firm will get a right direction in which it will motivate employees to work hard.
g). stating the nature of group and group behavior in relation to the workforce of City college and
Enterprise
Nature of group and its behavior are as follows. People commonly share values and beliefs- In the group, people shared beliefs and
attitude of each other. This is because in group, people work together and their social
relations also come in existence with each other. This leads to adoption of each other
value system and it is done to maintain good relationship with the group members. In
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same, people discuss their belief with each other related to different things. In this way,
group values and beliefs are shared by the members with each other. Achievement of objectives by making combined efforts- Every group that is formed in an
organization has some specific objectives. In order to achieve these objectives, all group
members make efforts. These efforts combined lead to achievement of the group
objectives. Hence, it can be said that achievement of goals and objectives are the result of
combined efforts. More than two people- In group, there are more than two people and the group may be
large or small in size. All these people work together to achieve determined objectives.
 Determination of roles and responsibilities- In group, roles and responsibilities of each
and every member is determined and according to the same they perform their acts in the
group. It is the role and responsibility that ensures that group objectives will be achieved
on time without any problem (Monzani, Ripoll and Peiró, 2015). Hence, both
organizations must frame roles and responsibilities of the employee’s with due care.
h). Identifying the factors which helps in making effective team as well also may threaten the
success of it
Factors that play a key role in making effective team are as follows: Communication- In order to make effective team, it is necessary to make sound
communication system. If there will not be good communication system then employees
will not be able to complete work on time and this will happen because no one know to
whom they have to communicate any information. This will lead to delay in action and
team will not be able to work effectively. Due to lack of proper communication, there
will be lot of misunderstandings among the team member. This will lead to conflict
among the team members. Hence, group will become ineffective. Thus, it is necessary for
both the organizations to make their communication system effective. Coordination-It is necessary to promote coordination among employees and for this strict
structure must be prepared which will be followed by the entire employee (Pinder,
2014). Due to determined structure who will communicate to whom will be determined.
In this way, team will become effective.
 Allow employee’s direct contact with team manager- Team members must be allowed to
directly contact with the team leader without any interference of other person. This will
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lead to good top management and middle management relationship. This will lead to less
chances of conflict among the employee’s. Hence, in this way group will become
effective.
i). Discussing the role of technology in the success of business
Technology plays a great role in the success of the business because by using it things are
presented before clients in the most effective manner. There are many things like Google drive
and cloud service etc which make business operations easy to perform. Technology to large
extent reduces business complexity. With passage of time, many new software are devised which
to large extent are acting as cornerstone to the business success (McShane and Von Glinow,
2012). Apart from this, with passage of time many new analytic tools come in existence which
helps the firm in analyzing huge and complex data in an easy way. This helps the firm in easy
decision making and on this basis it can be said that technology play an important role in the
success of the business.
CONCLUSION
From the above report it can be inferred that organizational culture and structure which
are adopted by City College and Enterprise care rental are highly interrelated with each other.
Furthermore, it can be concluded that effectual leadership and communication are the main
factors which positively influence the behavior of personnel at the workplace. It can be
articulated that open door management policy which is followed by both the organization is
highly related to the classical organizational theory. With this combination, both the firms are
able to achieve success in the strategic business situation. Besides this, it has been concluded that
Mc Gregor and Maslow's hierarchical motivational theories plays a vital in encouraging human
resources of both the firms.
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REFERENCES
Books and Journals
Costa, P.L., Passos, A.M. and Bakker, A.B., 2014. Team work engagement: A model of
emergence. Journal of occupational and organizational psychology. 87(2). pp.414-436.
Fan, J.P., Wong, T.J. and Zhang, T., 2013. Institutions and organizational structure: The case of
state-owned corporate pyramids. Journal of Law, Economics, and Organization. 29(6).
pp.1217-1252.
Gucciardi, D.F. and et.al., 2015. Implicit theories of mental toughness: Relations with cognitive,
motivational, and behavioral correlates. Sport, Exercise, and Performance Psychology.
4(2). pp.100.
Martin, R. and et.al., 2012. Anatomy of a paradox: Management practices, organizational
structure and energy efficiency. Journal of Environmental Economics and Management.
63(2). pp.208-223.
McShane, S. and Von Glinow, M., 2012. Organizational behavior. McGraw-Hill Higher
Education.
Monzani, L., Ripoll, P. and Peiró, J.M., 2015. The moderator role of followers’ personality traits
in the relations between leadership styles, two types of task performance and work result
satisfaction. European Journal of Work and Organizational Psychology. 24(3). pp.444-
461.
Nancarrow, S.A. and et.al., 2013. Ten principles of good interdisciplinary team work. Hum
Resour Health. 11(1). pp.19.
Pinder, C.C., 2014. Work motivation in organizational behavior. Psychology Press.
Robbins, S.P. and Judge, T., 2013. Essentials of organizational behavior. Pearson Higher Ed.
Schneider, B., Ehrhart, M.G. and Macey, W.H., 2013. Organizational climate and culture.
Annual review of psychology. 64. pp.361-388.
Singh, M.K., 2015. A Conceptual Study on Leadership Theories and Styles of Managers with
the special emphasis on Transformational Leadership Style. International Journal. 3(10).
pp.748-756.
Wan, L. and et.al., 2015. A cultural setting where the other-race effect on face recognition has
no social–motivational component and derives entirely from lifetime perceptual
experience. Cognition. 144. pp.91-115.
Online
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Leadership Theories. 2016. [Online]. Available through:
<http://www.leadership-central.com/leadership-theories.html#axzz40t5BcM00>.
[Accessed on 22nd February 2016].
Open door management policy. 2016. [Online]. Available through:
<http://smallbusiness.chron.com/open-door-policy-business-143.html>. [Accessed on
22nd February 2016].
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