Impact of Leadership Style on Organisational Performance

The organisation structure and leadership style are crucial in shaping the enterprise culture and motivating employees to enhance performance. Technological changes can impact the functioning of an organisation, requiring upgraded technology to maintain human resources. Different types of leadership styles and management approaches contribute to employee nature and shared values, ultimately creating a working environment.

ORGANISATION
AND BEHAVIOUR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
AC 1.1 Organisation culture and organisation structure.............................................................3
AC 1.2 relationship between organisation culture and the organisation behaviour and their
contribution in organisation performance...................................................................................4
AC 1.3 Factors affecting individual behaviour at work.............................................................5
TASK 2............................................................................................................................................5
AC 2.1 Different styles of leadership followed by the organisation...........................................5
AC 2.2 Relationship between organisation theory and the style of management.......................6
AC 2.3 Different approaches of management implemented by different organisation..............6
TASK 3............................................................................................................................................7
AC 3.1 Influence of leadership style on the behaviour of staff..................................................7
AC 3.2 Types of motivational theory..........................................................................................7
AC 3.3 Implementation of motivational theory in practice........................................................8
TASK 4............................................................................................................................................8
AC 4.1 Nature of groups and group dynamics............................................................................8
AC 4.2 Factors affecting teamwork............................................................................................9
AC 4.3 Effect of technology in performance of City College and Rent-a-Car...........................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Organisation is the group of people working together to achieve common mission and
goals in link with the external environment. Organisation behaviour is the nature exhibited by the
members of the company within the organisation defining the organisation culture.
The organisation behaviour is affected by the different external and internal factors. The
organisation structure defines the organisation culture which results in the behaviour of
employees carried out in the premises of the company.
The organisation structure is followed by the different type of leadership style and the
management styles (Suppiah and Singh Sandhu, 2011). Group dynamics effects the working
efficiency of the organisation. Technological factors also affects the development of employee
and the success of the company.
There are many management theories which helps in carrying out the management
activities in the successfully. Organisation behaviour defines the relationship of employee with
the co-workers, higher authority and lower sub ordinates. The City college and the Rent-a-Car
majorly emphasis on the organisation culture and ensuring the good working environment within
the company for development of the enterprise.
TASK 1
AC 1.1 Organisation culture and organisation structure
Organisation structure defines the no. of employees working, the structure through which
information travels in the company and the division of authority and power in different levels of
management people chains. Organisation culture defines the behaviour and nature carried
carried out by the sharing of thoughts an beliefs of the employee collectively. Organisation
culture is the overview of values of all the members of the enterprise.
Charles handy and Edgar Schein Iceberg model both defines different types of organisation
culture (Bocchi, et.al., 2010). The Rent-a-Car is the organisation which follows the Charles
handy task and power culture in the company. Power culture defines the power is distributed
differently at various level of management hierarchy. Task culture defined as the different tasks
are distributed in employees and the groups.
Edgar Iceberg model studies three elements which defines the organisation culture in the
company. Artefacts, Espoused values and the Assumptions defines the organisation culture of the

any firm. Rent-a-Car has artefacts as the company logo, office structure etc. Espoused values
defines the organisation culture like role culture task culture followed in the Rent-a-Car company
and the employee internal behaviour as individual defines the assumptions of the Rent-a-Car.
The City College have different department to carry out different activities of the
organisation. Hence the city college is following the tall organisation structure with long chain of
command and follows narrow span of control. Every manager is cont4rolling only few lower sub
ordinates.
While in flat organisation structure the management hierarchy is short and the have
broader breadth of control as compare with the tall structure. The employees is controlling a
large no of sub ordinates in flat organisation culture (Punjaisri and Wilson, 2011).
AC 1.2 relationship between organisation culture and the organisation behaviour and their
contribution in organisation performance
An systematised organisation structure and good organisation culture contribute in the
good performance of the enterprise. The organisation should follow and well defined
organisation structure with implementation of rules and regulation. The systematic organisation
structure helps in establishing good working environment within the company premises.
The city college is following tall organisation culture where long chain of command is
followed. This results in the increased time in transmission of information between different
departments and affects the organisation culture working environment. The organisation follows
majorly power culture to regulate other employees which result in the decrease in motivation
level of employees and affects the organisation behaviour. Tall structure is more sytematic and
organised in nature.
The flat structure or the divisional structure of the organisation have good communication
and faster communication between the departments and the employees of the enterprise. This
affects the organisation culture too (Farndale, Hope-Hailey and Kelliher, 2011). The
communication is good in flat structure but the work load on the single individual is increased in
the organisation which results in dissatisfaction towards the work. This affects the organisation
culture and negative impact on the performance of the company.
AC 1.3 Factors affecting individual behaviour at work
The individual behaviour is influenced by many internal and external factors. The factors
like leadership style, organisation culture, organisation structure, technology, family life,

interpersonal behaviour, political and legal factors affects the working behaviour of the
employee in the company.
Rent-a-Car enterprise follows Autocratic type of leadership style which emphasis on the
decision making only by the involvement of higher management which decrease in the
motivation of employees. Hence affecting the individual behaviour of the organisation (Agarwal,
et.al., 2012). The change in new technology increase the human interest to know about new ways
implemented in the organisation of working methods that helps in enhancing the interest of
members of the firm to do work passionately. Rent-a-Car organisation also follows the task
culture which motivates the employee to complete their task in quality and time constraints as a
team.
TASK 2
AC 2.1 Different styles of leadership followed by the organisation
Leadership style is the nature and behaviour by which the leader influence and motivates
his followers to do work passionately and with best efforts. The different type of leadership
styles are described in this part of the report.
The autocratic type of leadership style is followed by the enterprise Rent-a-Car general
mangers and its founder Jack Taylor. This type of leadership is followed by the higher authority
when an important decision and faster decision is required within the company. The Rent-a-Car
enterprise follows many types of leadership style. The organisation also focuses on the employee
development and enhancing their career opportunities working within the organisation. The
leaders follows transformational type of leadership style in the organisation to increase sub
ordinates motivation (Nafz, et.al., 2011).
Democratic type of leadership style involves the employee ideas in the decision making
process. This style follows providing authority to the employee at their small level management
of task in their assigned area of work. This enhance the motivation level and the satisfaction
towards the job.
AC 2.2 Relationship between organisation theory and the style of management
There re different types of organisation theory which defines the appropriate structure,
culture and the behaviour of company to carry out their task and contributing in the development

of enterprise. The different type of organisational theories are classical theory, system theory,
contingency theory, neoclassic theory.
The City College defines the system theory division of whole system in the different
interlinked department. The City college has three department i.e. Teaching department, Human
resource department, Administrative department that works together as a single system to
achieve the goals of City group.
The neoclassic theory deals with the crafting the needs of employees like good working
environment (Wong, Wong and Ngo, 2012). Good communication system in organisation etc.
The Rent-a-Car enterprise follows neoclassical theory to develop the good working environment
resulting in enhanced working efficiency and effectiveness of the employees.
The classical theory deals with the scientific approach and the administration of the firm
to generate revenue only. Main focus of the manager in classical theory is toward the profit no
one is worried bout the employee satisfaction.
AC 2.3 Different approaches of management implemented by different organisation
The organisation is following different type of management and leadership style that
affects the working efficiency of the organisation. The Rent-a-Car business is following the
behavioural approach which study the behaviour of the employee and with help of appropriate
transformational leadership style motivate their employees. This enhance the creativity in the
employees.
The contingency approach deals with the any unpredictable situations or the problem.
This approach follows the autocratic type of leadership style in the Rent-a-Car to make decision
faster and appropriate by the higher authority of the business (Flodgren, et. al., 2010).
The system approach followed by the City group to mange their activity and
implementation of flexible environment within the organisation. The system approach develop
systematic organisation structure of different department. This results in good communication
system in the organisation. Results in effective leadership and motivated workforce.
TASK 3
AC 3.1 Influence of leadership style on the behaviour of staff
Different type of leadership style affects behaviour of the employees differently. The
autocratic leadership style has different influence on the organisation behaviour and the

employee behaviour in different manner. Motivation results from the effective leadership style
followed in the organisation. Motivation enhance the productivity of the firm.
The autocratic type of leadership style followed in the rent-a-car organisation y the higher
management does not involve employees in the decision making process. Which leads to the
decrease in satisfaction level of the employees. The leaders of autocratic style did not liable for
employee development (Barnard, 2012). The relationship between the leader and the follower is
having low respect and lower amount of trust. This decrease the efficiency of employee as well
as the leaders.
While the democratic leadership style motivates the employees to make their own
decision regarding their jobs and implement them. This provides motivation to the employee to
carry out their task with passion. The democratic leadership style helps the individual to be
creative and motivated to take decision by own. This enhance the performance of the
organisation. Their is relation of trust and respect between the leaders following the democratic
approach of leadership.
AC 3.2 Types of motivational theory
Motivation is the major factor that affects the development of the organisation and the
achievement of the goals. Motivation is the reason to carrying out the task effectively and
efficiently. The different type of motivational theory like Herzberg theory, Maslow motivational
factors, theory X and theory Y followed in the premises of the organisation (Watson and
Korczynski, 2011).
The Herzberg theory defines two types factors that affects the employee performance in
the organisation. According to the Herzberg theory the factors that motivates the employee to
carry out task properly like the salary, family goals, organisation goals, self esteemed desires etc.
called as motivational factors. The factors which has negative impact on the motivation of the
employee are called as the hygiene factors like punishment, strict rules and regulation, bad
working environment.
The Maslow theory defines that the every person has some wants and desires, in order to
fulfil them person is motivated to do the job efficiently. Maslow divided these desires in 5
different type i.e. basic needs, safety and security needs, social need, self actualisation need and
self esteem need. The person wants to fulfil these need from going through lower one first to the
higher needs.

AC 3.3 Implementation of motivational theory in practice
Managers is the one of the source of motivating the employees to carry out task in quality
and time constraints. There are many organisations which implement various kind of
motivational theory and defines different motivating factors within the organisation for the
employees.
The City College follows Maslow and helps their workforce to fulfil their desires and
needs while working with City Group. The employees are motivated to achieve social needs and
self esteemed needs as a professional managers teachers working with such a large Group.
The Rent-a-Car follows the theory X and theory Y in the enterprise. The person
belonging to theory X are less interested to work. They are devoid of self-motivation to carry out
tasks. Theses type of person have to be motivated regularly and instructed by the managers in the
organisation (Bird, Saalfeld and Wüst, 2010). This follows autocratic leadership style to convey
task and regulate lower sub ordinates. While person related to theory Y are self motivated to do
work. They only need assign work and they are motivated to finish the task in proper time. This
type of system follows transformational and democratic type of leadership. In this style the
followers are keen learners and develop their creativity through continuous learning. This is
followed at the locality manger level to carry out their own work independently in Rent-a-Car
enterprise.
TASK 4
AC 4.1 Nature of groups and group dynamics
Group making is the quality of human nature. From the starting of civilisation humans
starts making the groups. Group is the performing task by more than one person for achieving
shared goals and objectives.
Group can be formal or informal depending on the nature of objective of forming the
group. The formal groups are formed by completing the particular task in the contributing in the
functions of organisation. These groups are formed by the mangers and the supervisors in the
organisation. The informal groups are formed by the employees itself on sharing of some
common interest by the employees (Solomon, Russell-Bennett and Previte, 2012). The main
reason for the informal groups are relations, friendship, hobbies and common interest of the
group members.

The nature of group shown by the individual depends on the environment of organisation
and the relationship and communication between the employees. The employee is more efficient
while working in the group as compared to individual. So most of the companies like Rent-a-Car
follows making of groups to carry out tasks like customer satisfaction management and order
management etc.
AC 4.2 Factors affecting teamwork
There are many factors which affects the team efficiency and the team work of
employees. Some of the factors like leadership style, organisation culture, communication within
company, organisation structure, technology affects the team work.
The factor like group size is having major effect on the group dynamics. As the size of
the group increases the role clarity decrease and the conflicts arise in the group which decrease
the effectiveness of group and the teamwork (Ashby, 2013). The communication between group
members and the supervisors have great impact on the working efficiency of the team in the
organisation. The good communication leads to better management of objectives and the time
management and systematic transmission of information which leads in the effectiveness of
group.
The technology affects the group dynamics. The utilisation of upgraded technology
helped the team to manage their task better with help of effective time management and also
helps in establishing good communication management.
AC 4.3 Effect of technology in performance of City College and Rent-a-Car
The technological changes affects the organisation culture, organisation behaviour and
the growth and performance of the business to the large extent. The technological changes like
up gradation of machinery, use of upgraded software in inventory management, modes of better
communication system all these affects the performance of organisation system.
Rent-a-Car enterprise use an upgraded system of data mining through orders of the
customers to categorise them in different segment according their choice preferences and
regularity with the company product (Nutbeam, Harris and Wise, 2010).
The City college have better communication system with up gradation of technology and
installation of the system in different department to communicate with each other. The new
technology is used in the management of workforce in the Human department of the City
college.

The Rent-a-Car uses the new technology to maintain order from the customer to use their
quality specified services. The enterprise use new technology in the training and development of
employees for ensuring delivery of quality services to the clients.
CONCLUSION
The organisation behaviour and the employee behaviour contribute to the effectiveness of
company structure functioning. The organisation structure makes up the enterprise culture and
the leadership style to be followed to motivate their employees to enhance the performance of
the organisation.
Different technological changes affects the functioning of the organisation and the
organisation structure. Higher the no of employee working with organisation higher the
requirement of upgraded technology to maintain the human resource of the firm.
Different type of leadership style and the management styles contribute to the employee
nature and the shared values and beliefs in the organisation that ultimately makes up the working
environment of the organisation.

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