Organizational Behaviour in company - Desklib

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Unit 12: Organizational
Behaviour

INTRODUCTION
Organizational behaviour (OB) is mainly concerned with the study of human
behaviour in an organization. It also helps in studying the complex nature of individuals
in an organization and further help in taking corrective actions, if necessary. It is
imperative for every business to focus on organizational behaviour in order to influence
the behaviour of employees in a company so the goals and objectives can be achieved
effectively and efficiently. Tesco PLC is a British Multi-national groceries and retail store
company headquartered in Hackney, London, England. The company was founded in
the year 1919 by Jack Cohen and it has currently more than 6000 stores globally in
countries like United Kingdom, India, Malaysia, Thailand, Hungary, and Poland. TESCO
provides employment to more than 400,000 people all around the world therefore it is
essential for the organization to study organizational behaviour in order to understand
the factors influencing the employees in the company. It also has various subsidiaries
under its name like TESCO bank, TESCO family dining and TESCO mobile. Also, it will
help the organization to improve the work environment and culture so that the
employees can work with full productivity. It will further avoid chaos, confusion, and
conflict in the work place. The current report will highlight on how Tesco’s culture and
power influence the behaviour of employees in the company, theories of motivation for
the accomplishment of goals and objectives of an organization, concepts, and
philosophies of organizational behaviour with relation to a given situation and their
importance in the growth and success of business.
LO 1
P 1. Analysis of how culture, political relation and power influence action of employees.
Hendy’s Culture model
This model helps in effectively analysing the four different kinds of culture which
includes power, role, person, and task.

Influence of culture, political relation, and power on behaviour of individuals in
organization
1. Influence of culture:
The main constituent which influences culture of company are related with work
in the company, gender of workers, goals, clients, and parties, etc. The culture depends
on the power, role, task, and the person as well. If one person is in power and his role is
main, the whole organization has an impact of it. The work culture changes and the
dynamics of the organization can change due to cultural difference (Borkowski, 2015).
The importance of cultural differences is also required to be studied. There are the small
things which have huge effect on the working of the Tesco. The rise of globalization and
digital technology has also impacted the working of Tesco. Previously people use to
work manually but now everything is digitalised which has impacted the organization a
lot.
2. Influence of politics:
The organizational politics and differentiation between the personnel, decisional
or structural can also have a very huge impact on the organization. The various tricks
and tactics of the employees used by the other manpower can be demotivating for
some employees of the organization. So, this practice can also be the point on the
behaviour of the employees in the Tesco. Practice of such policies in the organization is
not a good thing and because of this the work culture can change and the way of
working would also be affected.
3. Influence of power:
Power is the most important thing in an organization or at any other place. If the
person holds power, is at a very good place in the organization then obviously the way

of working for him would be different and that of the other employees would be different
(Borkowski, 2016). This can be positive and can be negative also. The key strength
associated with this is that, if the power is used in a correct way, then the organization
would grow and the work culture would also be maintained in the company. On the
contrary, the negative aspect is that, if the power is used in a wrong way, then it can be
harmful for the Tesco. There could be clashes among the leader and the employees
and among the employees themselves. So, these things need to be considered while
judging any situation in an organization.
Cultural difference awareness is very crucial for the organization as it effectively
leads to higher decision making. Cultural difference awareness is very useful in
determining the various other culture of the individuals. It is very useful in dispelling
personal biases and negative stereotypes about the group.
Rise of globalization largely influence organizational culture as every country has
different set of culture, belief, and attitude. Each employee thinks in a different way and
in turn largely influence the organization culture. Rise of digital technology can
adversely affect the employees in a negative as well as a positive manner. Many
individuals cannot adapt to the change in the technology because of their own set of
belief and attitude. There are various individuals who can effectively adapt to various
technology which in turn leads to higher operational growth and productivity of the
employees and company.
Tesco plc must focus on improving positive work culture in the environment
which in turn leads to sustainable growth of the business. All the workers in Tesco must
treat employees with respect and dignity in order to improve the performance of the
business. Organizational behaviour is mainly concerned with the study of human
behaviour in an organization. It also helps in studying the complex nature of individuals
in an organization and further help in taking corrective actions, if necessary.
Application of system theory in the organization helps in improving the functioning of the
organization. System theory must focus on interacting with the environment which in

turn forms a complex whole which in order to attain higher operational goals. This
theory is useful in combining all the input in order to attain desired output (Kinicki. and
Fugate, M., 2017). It also focuses on making desired changes which in turn helps in turn
helps in attaining organizational goals and objectives. System theory helps in
coordinating all the activities of the company in a systematic and appropriate manner. It
is imperative for every business to focus on organizational behaviour in order to
influence the behaviour of employees in a company so the goals and objectives can be
achieved effectively and efficiently.
LO 2
P 2. Evaluating theories of motivation.
1.Herzberg's hypothesis of inspirations and cleanliness factors -
Illustration 1: Herzberg theory, 2019
Herzberg theory mainly states that there are various factors in the TESCO which in turn
leads to better job satisfaction. This theory is referred to as two-dimensional theory
which h takes into consideration factors such as employee relations, company policy,

supervision, working conditions, and compensation are effective factors. Absence of
these factor in run mainly leads to job dissatisfaction. Their essence does not motivate
or create any level of satisfaction. Taking into consideration all such factors help in
higher operational performance of the employee at Tesco plc. This theory takes into
consideration five factors which mainly includes achieve, advance, individual growth,
self-sufficiency, identification, and obligation. These satisfactory factors are mainly
related with positive effects at workplace. In summary, satisfiers portray a person’s
relationship with individual. Dissatisfied employees lead to lower operational growth and
performance for the TESCO company.
Maslow's series of needs
Illustration 2: Maslow hierarchy, 2019
This is a motivational theory which mainly takes into consideration various factors
which consists of human needs. This theory is based on basic needs such as security
and physiological needs, psychological needs which includes belonging needs and
esteem needs and lastly self-actualization needs. This theory states that the individual
must focus on first satisfying the basic needs of the individual and then tends to focus
on increasing their needs to a higher level. An individual must focus on recognizing their
needs at the first place in order to attain self-actualization needs. Physiological needs
such as air, food, home, sleep, etc. Safety needs includes protection from law, security,
stability, etc. Belongingness needs mainly includes trust, acceptance, love, intimacy,
affection, etc. Esteem needs are mainly associated with independence, dignity, respect,
etc. Self- actualization needs are associated with self- fulfilment and becoming the most

of oneself. As an individual advances through TESCO company, employer gives
opportunities to fulfil needs higher on Maslow's pyramid (Lăzăroiu, 2015).
ERG motivation theory Alderfer
Clayton P. Alderfer's ERG hypothesis from 1969 is classified into three segments
which includes Existence, Relate
Needs for existing
Incorporation of various physiological desires such as nutriment, garments,
water, air, safety, love, and fondness. These are the needs which h are required for
day-to-day survival of life.
Relatedness Needs:
Developing needs which are associated with family, colleagues, companions, and
businesses. This model intends to gain a sense of security for the social and family
members. This need helps in building stronger relationship with the external individuals
in order to get socially recognized and acceptable.
Development Needs:
These needs are mainly associated with the self-actualization and self-
realization of an individual (Miner, 2015). This incorporates wants to be imaginative and
profitable, and to finish significant undertakings. The needs of the individual differ from
person to person. Presence needs are mainly concerned with the personal needs of the
individual (Newman and et.al., 2017). These needs tend to rely on the personality and
uniqueness of the individual. This motivational theory helps in increasing the opportunity
of the individual in order to successfully attain greater heights and live higher standard
of living. This need helps in self-development of the individual in order to fulfil the
satisfactory needs of the person.
As indicated by Westwood (1992: 288), has specific features:

• An inward state experienced by the person. While outside variables, including other
individuals, can influence an individual's persuasive state. Inspiration is created inside
the individual and is interesting to that person.
• The individual encounters an inspirational state such that offers ascend to a longing,
expectation, or strain to act.
• Motivation has a component of decision, goal, or ability. That is, the individual
encountering the condition of excitement (remotely or inside created), reacts by acting
in a route and at a degree of force that they decide.
• Action and execution are a component of inspiration. It is along these lines significant
in our capacity to anticipate and get activities and execution.
• Motivation is multifaceted. It is a mind-boggling process with a few components and
the plausibility of various determinants, choices, and results.
• Individuals contrast regarding their inspirational state and the components that
influence it.
• The inspirational condition of an employee is covariant; it is diverse crosswise over
time and circumstances.
The key relationship between Alderfer's ERG theory is that individuals must focus
on progressing towards its satisfaction in order to move level higher in the pyramid
hierarchical needs. It helps in satisfying the current situation of the individual in order to
reach higher gradation of employees.
Adam theory is used in context of TESCO to motivate their workers-
When workers contribute to gain competitive advantages, management give
rewards as outcome of hard work that help to motivate staff. On the other hand, the
motivational level will be decreased when employees perceive less than expectations.
According to this theory, company must pay salary according on basis of employee’s
contribution.

Process theories
Process theories of the motivation tends to explain why the behaviour is initiated.
This in turn is very useful in choosing the target in order to attain higher operational
goals and objectives of the company.
VROOM expectancy theory: This theory tends to focus on assuming the
outcomes of the behaviour because of conscious choices in order to maximize pleasure
and minimize pain. This theory states that, the performance of the employees within
Tesco plc. is based on various individual factors like experience, knowledge,
personality, skills, abilities, etc. The key components of the expectancy theories mainly
include expectancy, valence, and instrumentality (Lloyd, R.A. and Mertens, D., 2018).
This theory states that, certain level of efforts and expectations leads to improved
performance.
Goal setting theory: This theory of motivation determines that, challenging and
specific goals within the organization while contributing to the feedback in turn results in
higher task performance and organizational growth of the Tesco plc. This theory tends
to state that, individuals who tends to set difficult and specific goals tends to perform
better than the people who set generic and easy goals (Aarts, 2019).
LO 3
P 3. Evaluating effective team and ineffective team.
Team group is referred to be collection of various individuals who focus on
effectively coordinating the efforts of individual. On the contrary, the group is considered
a group of individuals or people who focuses on sharing common interest, goals, and
objectives. All the individuals in the team are committed mutually to attain higher
operational goals and productivity of the Tesco. Effective team member is one of the
effective workers which helps in improving the performance of employees. An effective
team member focuses on attaining aims of the TESCO (Newton and Lepine, 2018). It
also focuses on open communication, team roles and responsibilities, time
management, employer and employee relationship and focuses on solving problems.
Team is most effective when there is mutual connection, bonding and respect between
everyone which focuses on attaining long term operational goals and objectives. On the

contrary, an ineffective team is mainly associated with the distrust, conflict, negative
competition, and it is also leads to conflict among various team members.
An effective team focuses on improving the various soft and hard communication
skills which in turn is useful in coordinating all the activities of the Tesco. This is very
useful in carrying out all the functions and specific task with utmost accuracy and
efficiency. An effective team is useful in cooperating all the activities which leads to
higher operational goals and standards. Hard communication skills such as software
programming, technical knowledge, and capabilities, etc. are useful to carry out various
organizational functions which is useful in achieving higher goals and objectives. Soft
skills are considered to the productive cluster of an individual personality traits which
mainly includes language skills, teamwork, time management, cognitive behaviour,
leadership traits, social grace, etc. are very useful for team members to attain higher
operational goals and efficiency of the Tesco.
The management of the company should focus on evaluating the problems and find the
best conflict resolution in order to attain higher operational goals and objectives.
Tuckman’s theory key focus is on determining how the team manages and tackles a
task from the initial stage to the completion of project. This theory is useful in
determining various team development challenges which in turn affects the operations
of the business (Osland, Devine, and Turner, 2015). This model is classified into
forming, storming, norming, acting and finish. Forming is a stage where the team
focuses on project goal, ground rules, roles and responsibilities of individual, timeline,
etc. Storming stage helps in managing various conflicts which could affect the efficiency
of the business. This stage is useful in determining the problem and finding best
solution to the problem. Norming stage is where individuals of the team focus on their
job roles in order to attain set goal of the company. Performing is a stage where
individuals focus on operating the business without any supervision. Adjourning is the
last stage where the individual team members who focuses on achieving closure and
end the project on a positive note.

Illustration 3: Tuckman's Theory, 2019
Belbin’s team model is an effective model which helps in describing the roles of
various employees in group. This model is useful in determining the action bounded role
which mainly includes shaper, implementer, and complete finisher. It also helps in
evaluating people-oriented roles which includes organizer, team player and resource
expert. This team model is useful in determining thought-oriented roles which mainly
includes plant, monitor evaluator and specialist (Belbin Team Roles: Theory and
Practice, 2017). This tool is very useful in attaining higher operational goals and
objectives of the Tesco plc. This model is very useful investigating resources, teamwork
and coordinating all the activities by gaining higher operational goals and standards
(Pentland, and Harem, 2015).
Tesco must focus on improving an effective team and identify the conflicts
among team members and operations of the business in order to attain higher
operational goals and efficiency. Finding the best solution to the problems helps in
smooth functioning of the business.

Conflict resolution is an effective way which helps in providing useful solution at
the time of conflict between two parties. This helps to carry a negotiation which in turn
is very useful in resolving the disagreement between the parties.
Emotional intelligence helps in controlling and expressing the ideas which in turn
is very useful in maintaining interpersonal relationship which leads to higher operational
growth and efficiency in the Tesco company.
Autocratic model tends to state that, managers or superiors in the organization
has controlling power which in turn gives direction to all employees in a systematic and
efficient manner. This in turn helps in attainment of higher operational goals and
objective and also leads to higher productivity.
LO 4
P 4. Concepts and philosophies.
Path goal theory
Path goal theory specifies the leader’s behaviour as to how he has to perform his
task in order to make his employees work in best possible manner to achieve group
goal.
It aims at increasing employee’s motivation & improving their satisfaction level in work
process so as to generate higher level of productivity.
It was first introduced by Martin Evan in 1970 with a view to set certain specific working
style of different individuals & integrating their individual efforts to achieve group goal
(Podsakoff, Mackenzie and Podsakoff, 2018).
Though path goal theory is not complete but it gives basic idea about
1 Employee best suited for specific work and their characteristics.
2 Selection of leadership style.

3 Employees success through motivating them
Employees characteristics
It tells about the ability & knowledge different individuals possesses & based on that
different leadership style to be implemented so that employees feel sense of
belongingness & feels motivated.
Leadership style
There is various form of leadership style & one needs to select the best style keeping in
mind the situation of work. There are 3 types of leadership styles
Authoritarian or autocratic leadership
In this form of leadership control lies in the hand of leaders & decisions are made by
leader himself.
Participative or democratic leadership
Herein decisions are made by leader involving other employees as well. This form of
leadership is helpful for generating more ideas.
Delegation or laissez fair
Leader has no such control over the actions of employees & in different situation
different individuals acts as a leader. However, leader is responsible for the acts made
by others.
All three types of leadership styles are important in different circumstance.
Focus on motivation
Leaders tends to define the goals for which efforts are made
Then clarify as to how, when & by whom these goals have to be achieved

Every path involves certain obstacles which needs to be counter
Leaders motivate their subordinates by providing continuous support & making their job
easier.
Path goal theory is an effective leadership approach as it helps in improving the team
productivity of the business in a long run.
For instance, ineffective training to individuals in the organization results in lower
operational growth and efficiency for the business. Training is a process which makes
new employees understand the organization work process. Training is given by already
existing qualified personnel. Training makes new employees understand the firms
working easily & their speed of work also increases. Lack of training tends to result in
lower operational productivity and leads to higher employee turnover.
Every individual in an organisation has certain shortfall regarding different work &
training make it possible to learn & understand different work process & style.
Once training is taken in an effective manner then individual gains confidence in
performing that task. Moreover, employees feel satisfied & starts working to achieve
higher level of work tasks.
After training process is over employees become competent enough to perform different
works & thus helps in achieving goals of Tesco in an effective, efficient, and accurate
way.
Though training involves higher cost in form of qualified / skilled employees working to
groom lower-level employees. Such skilled employees charge higher cost for their
services rendered.
Training is an important tool to achieve organizational goal in an effective & proper
manner. Effective training in an organization leads to:
· Making new employees learn about organization working

· Speed in work increases and also results in improved performance and productivity
· Higher productivity
· Satisfied employees
· Self driven employees
For instance, positive work environment helps in improving the working of the
organization. The management of the company should focus on improving the wok
culture in order to attain higher operational standards and efficiency for the
company. Every individual in the organization must be treated with respect, dignity
and in an ethical manner which in turn lead to higher retention of employees and
skilled workers into the organization. This in turn helps in high sustainable
development of the business for the long run.
Contingency theory states that, the effectiveness of the management is mainly
dependent in the behaviour of an individual and specific situation within the
organization. In case on increase in contingency within the business, the management
of the organization should focus on finding the best solution to the problem and function
with utmost accuracy and attain higher organizational goals (Takeuchi, Bolino and Lin.,
2015).
CONCLUSION
From the above report, it can be concluded that it is imperative for every
business to understand organizational behaviour in order to get a better knowledge
about the way in which employees behave and the factors that influence their
behaviour. The culture, politics and power have a deep impact on the working of the
employees. Also, it is important to motivate them timely by communicating the goals
and objectives of the organization with them and providing them with rewards and
incentives on completion of the tasks. Moreover, in order to make an effective team it is
necessary for all the employees to cooperate and collaborate with each other and for

this purpose it is essential to have a good and flexible working environment within the
company. The fundamental concepts of OB included individual perception, motivated
behaviour, human dignity, holistic concept, and mutuality of interest. TESCO company
studies the organizational behaviour and make changes accordingly as it helps in
providing a better understanding about the employees, motivating them and most
importantly also leads to controlling and influencing of the behaviour of employees.
Thus, it can be stated that organizational behaviour helps in optimum utilization of
human resources in the business which means that it leads to employees working with
full efficiency and effectiveness and contributing towards the overall growth and profit
maximization in the long run. It also leads to reduced employee turnover and absent ism
rate which helps the company in achieving cost advantages and increased revenue.

REFERENCE
Books and journals
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Borkowski, N., 2016. Organizational behaviour in health care. Jones & Bartlett
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Kinicki, A. and Fugate, M., 2017. Loose Leaf for Organizational Behaviour: A Practical,
Problem-Solving Approach. McGraw-Hill Education.
Lăzăroiu, G., 2015. Work motivation and organizational behaviour. Contemporary
Readings in Law and Social Justice. 7(2). pp.66-75.
Miner, J.B., 2015. Organizational behaviour 4: From theory to practice. Routledge.
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Podsakoff, P.M., Mackenzie, S.B. and Podsakoff, N.P. eds., 2018. The Oxford
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Takeuchi, R., Bolino, M.C. and Lin, C.C., 2015. Too many motives? The interactive
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Aarts, H., 2019. Goal setting theory and the mystery of setting goals.
Lloyd, R.A. and Mertens, D., 2018. Expecting more out of Expectancy Theory: History
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Online
Belbin Team Roles: Theory and Practice. 2017. [ONLINE]. Available through:<
https://activecollab.com/blog/collaboration/belbin-team-roles-theory-practice >