Detailed Analysis of Organisational Behaviour at AM Holding Limited

This report provides an in-depth analysis of organisational behaviour, focusing on AM Holding Limited. It examines the influence of organisational culture, politics, and power on individual and team performance. The report delves into various aspects, including the Handy model of organisational culture, types of power, and the impact of politics. Furthermore, it explores content and process theories of motivation, such as Maslow's hierarchy of needs and Vroom's expectancy theory, to achieve organisational goals. The report also differentiates between effective and ineffective teams, highlighting the importance of team dynamics and collaboration. The conclusion summarizes the key findings and their implications for AM Holding Limited, providing insights into improving organisational efficiency and employee engagement.

Organisational Behaviour

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Analyse organisation’s culture, politics and power influence individual and team
performance. ..........................................................................................................................1
TASK 2............................................................................................................................................3
P2 Content and process theory of motivation to achieve the organisation goal ....................3
TASK 3............................................................................................................................................6
P3 Effective team as opposed to ineffective team...........................................................................6
TASK 4............................................................................................................................................9
P4 Concept and philosophies of Organisational behaviour....................................................9
CONCLUSION.............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisation behaviour is a observation of an individual or group behaviour in a
business. It studies behaviour of people or group to know their attitude towards particular
circumstances so that efficiency in the business operations could be developed. Researcher wants
to analyse the impact of every individual behaviour or group on working of an organisation
(Carney, Cuddy and Yap, 2015). In this current scenario, every manger/leader must aware about
overall behavioural aspects of an organisation. Currently, five major issues faced by managers
today: lack of skills, incentive issue, non-response of superior etc.
This report is based on AM Holding Limited which operates as a holding company and
serves confectionery, diary, multimedia and pharmaceutical market. Apart from this, report will
keep its focus over: Cultural, political and power influence on an organisation and steps would
be taken to control, motivate concept.
TASK 1
P1 Analyse organisation’s culture, politics and power influence individual and team
performance.
Organisational behaviour is a study of way people interact within individual or group.
Normally, this study is applied in an attempt to create more efficient business organisation. It is a
field of study which analyse an impact of individual, groups or particular structure within an
organisation for a purpose of improving an organisation internal environment. The factors such
as culture, politics and power plays an important role in guiding both individual or groups to
accomplish their defined goals or target (Coccia, 2014). In case of new entrant, internal
environment of a company plays a pivotal role in creating perception and thought process in
mind of a person. So that an individual can judge accountability and culture of an organisation.
In context with AM holding limited, company needs to makeover strategies and plans to control
change in organisation behaviour in the company. It need to encourage an employee to come out
of fear and hesitation in such a way that person will ability to express his/her idea, thoughts and
opinion.
Organisational Culture - It is a characteristic or influence which comes from group of
people, language, religion, caste, social status and arts (Costello, 2013). It is a system of beliefs,
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assumption and values which regulate people how to act/behave in an organisation. Every
organisation maintain and develops a unique culture, which provides a manner to act in an
organisation. This explanation is in context of AM Holding Limited. There are four kind of
culture: power, task, role and person. Handy model of organisation culture is best suitable theory
to explain it. Power culture – In this type of culture, power lies in control of few individual who can
influence the decision-making and environment of a company. In AM holding limited,
company needs decentralisation of power to maintain equality and working in an
organisation. Role culture – It is determined by overall structure of an organisation. In this, role and
responsibilities can be judge on basis of specialisation of employees. If role is properly
defined, it is possible to complete the task more efficiently. Task culture – In this type of culture, a defined task is given to an employee to address
certain specific problem or projects (Crommelinck and Anseel, 2013). It will help
organisation to acquire resources needed for performing specific tasks.
 Person Culture – In this type of culture, manpower is recognized as more unique and
valuable assets of an organisation. Person with mix of right skills, training and leadership
are known for achieving goals more effectively. In this context, AM Holding Limited
needs to train their employee for development of their skills and personality.
A M Holding Ltd. Should adopt Role culture because it will help business to achieve
goals and objectives in a effective or productive manner as managers will assign jobs to
employees according to their specialisation area.
Organisational Politics – These are informal, unofficial and behind the scenes efforts to
sell ideas, influence, increase power or achieve targeted objective(Brandon & Seldman, 2004). It
is a kind of irrational behaviour which practices in order to take advantage which is completely
beyond their power and control. In context with A M Holding Limited, politics is major concern
to protect decorum taking several measures such as avoiding any kind of pulling, making fun and
creating values and morale for overall organisational path. It influences wrong behaviour,
partiality, demotivation and and any kind of coercion. Politics in an enterprise can be of two
types: Positive politics can encourage individual and team to increase efficiency. Negative
politics can demotivate and create conflicts among individuals and team.
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Organisational Power - It refers to the capacity to affect behaviour of a subordinate with
a control of resources. It is an exchange relationship that occurs in transaction between an agent
and a target (Frederick, 2014). An agent is a person who uses such power and target to complete
a task or to do something beyond policies. AM holding limited needs to utilize their power for
right utilization and development of an organisation. There are different types of power in
context with organisation behaviour: Reward power - It is based on ability to control incentive that a particular employee
wants. These incentive include salary increments, quarterly bonus, work appraisal and job
promotion. This can motivate individuals and team to increase their productivity. Legitimate power - It is based on position and hierarchy level of an organisation. It is a
form of authority which is delegated to the position of organisational members. There is a
chance of misleading individuals and team to obtain unexpected result.
 Coercive power - It is opposite of reward power. It is based on a manager's ability to
cause an unpleasant experience for its people. In organisational situation, it may be in the
form of action for or threat for dismissal, suspension or demotion for a people working in
an organisation. It demotivate individuals and team members and create an environment
of fear among them.
TASK 2
P2 Content and process theory of motivation to achieve the organisation goal
This session includes the different theory by which an individual or a group can be
motivated through different process, some time standard process are used and in some cases
individual is motivated through various process according to its nature and these theories are as
follows.
CONTENT THEORY
Motivation is internal process which makes a person, individual and group to move
towards it goal or objective. Motivation can be done in many ways by giving promotions,
incentives and recognition by giving awards. Different researcher have proposed different
theories to explain motivation (Fuchs and Edwards, 2011). Content theory generally refers to
question what motivates us. It mainly gives focus to internal factors of human behaviour.
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Maslow's hierarchy of needs theory
This theory was proposed by Abraham Maslow in 1943 in his paper “A Theory of
Human Motivation. This is classical theory which shows human motivation. The theory is based
upon some assumption that there are five needs of hierarchy for each individual to be motivated.
Which are as follows
(Source: Maslow need hierarchy of needs. 2018)
 Physiological needs: These are the basic needs which a person or individual need to have
such as air, water, food, clothing and shelter. AM (Holdings) Ltd provides the basic need
of food and shelter to their worker or employee so that it can fulfil the basic motivation
in them. Safety and security needs: After meting all physiological needs, The one's attention
moves towards the safety and security which helps worker to free and protected towards
any type of physical and emotional harm (Maslow Motivation Theory, 2018). In AM
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Illustration 1: Maslow need hierarchy of needs

(Holdings) Ltd the company gives their employee safe place to work, job securities and
medical insurance to fulfil their security needs, which increases the trust of all the
employee and they will put full efforts to do their work helps in attaining the organisation
goal. Social needs: Those type of needs in which the belongingness and socially connection to
each other is preferred,for example need of friend and whom with you can share your
feeling. AM (Holdings) Ltd organises different social gathering for worker so that they
can share there thoughts among them. A social secure person would always have
satisfaction in mind,which leads it to work for the organisation with more efforts then
ever and that helps to gain the organisational goal in more effective way. Esteem needs: Once a person feel belonging towards company then internal esteem need
arises like self respect, attention, recognition etc. AM (Holdings) Ltd also provide
training to their current and new staff so that they can be promoted and this also
motivates the other employee to work hard and hence through which over all effective
performance of the organisation will be increased.
 Self-actualization: It means personal development or growth in one's life, this process
aims towards maximizing overall ability of a person or person fully realise that its
creativeness and social potential are at peak point (Jansen and Samuel, 2014). AM
(Holdings) Ltd always work to make their employees best by changing their task,which
increases the multitasking capability among the workers that helps in achieving the goal
in critical time of company.
PROCESS THEORY
The type of theory in which in individual or a group analysis their own environment and
then develops the thoughts accordingly to react in their particular way. For every individual the
thought and reactive process is different. The vroom's theory is one of the process theory which
is as follows:
Vroom's expectancy theory
This believes that behaviour is the outcome of choices which a individual makes.
Vroom's assumes that performance of employee is based upon some individual factors as skill,
knowledge, overall experience and ability of its own. An individual can have different goal or
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objective and they can be motivated if they believe in their efforts,performance and in fire of
their desire. This theory is based upon three beliefs Valence: It means attraction or repulsion in the outcome of an individual,it explains that
a worker or employee should give value to reward, It might be not actual value of reward
but it should create value of reward in individual mind (Kellison and Mondello, 2012).
AM (Holdings) Ltd always give reward to good workers to develop value of reward
among workers. Which motivates other workers to perform well, hence overall
performance of the organisation would be increased, which helps in achievement of
organisational goal. Expectancy: It believes in theory that more efforts will result in the process of success.
Which increases trust of all employees towards work and they will put full efforts to do
their task, that helps in attaining objectives. If an individual feel that Probability of
achievement of goal is zero then a person would never try to do that task and if
probability is higher then he will put more efforts towards task to achieve desired result.
AM (Holdings) Ltd always value efforts by giving them promotion in every level.
 Instrumentality: It is belief of person that his performance would get desired reward.
For example if a person wants to be promoted and believes that good performance will
lead him to receive promotion. It motivates new as well as older employee of the
organisation to get reward and due to which they can work overtime and quickly, which
helps in achieving the objective of organisation in little time. AM (Holdings) Ltd always
gives reward to target achiever so that motivation remain with employee.
TASK 3
P3 Effective team as opposed to ineffective team
A team is a group of person who works together to achieve common goals and objectives.
All members have required skills to complete assigned task (Knights and Willmott, 2016). A
team can be of two types- Effective and Ineffective.
Effective team: A team become effective when all members mutually contribute their
efforts towards achievement of team goals. They all understand their roles and responsibilities
towards their work. In this they share their ideas with each others and welcome ideas of others.
In case of A M (Holdings) Limited, team has ideal number of members, have open
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communication with others for good discussion, all decisions are taken with consent of other
members. They use different approaches to solve problems in an innovative manner, good
leadership style is used to guide employees for achievement of goals. Leaders review
performance of team and it provides them chance to correct errors.
Ineffective team: In this kind of teams members are not focused towards achieving
common objectives. When members are not clear about their roles and duties than they will not
be able to work and contribute effectively in the achievement of corporate objectives (Mester and
et. al., 2018). This will lead to overall decrement of team effectiveness. In A M (Holding)
Limited, ineffective team do not have necessary skills and abilities to do work. Member do not
appreciate effort of others and they always try to find chances to blame others for their mistakes.
Only few people dominates in group and they force their decisions on other employees, which
leads to disagreement in team.
Difference between Effective and Ineffective team:
Basis Effective team Ineffective team
Interdependent Team members are dependent
on each other for achieving
goals.
In this members do not work
effectively for attaining
common objectives
Goals Goals are clear to everyone
and members work in
productive way to achieve
them in a better way (Lee-Ross
and Lashley, 2012).
They are forced for
achievement of objectives.
communication In this, members have
effective communication with
each other. They share ideas
with each others.
Members have one way
communication which is
ineffective, as they do not
express their ideas and accept
ideas given by others.
Decision making process It is decentralised because
decisions are taken with
mutual consent of all the team
In this decision process id
centralised as decision are
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members. taken by selected authority.
From above discussion it is concluded that Effective teams are more productive than
ineffective teams. They works to achieve team goal with mutually accepted norms and
participative decision making process.
BELBIN TEAM ROLE MODEL
This model is based on utilising skills and talent of different team members. Every
member in team is different from each other in terms of their personality, attitude, character etc.
The following are 9 team roles identified by Belbin:
Action Oriented Roles Shaper: These people challenges to solve problems in a unique way so that a team does
not lose its momentum. Implementer: They have capability to convert ideas into actionable plans which are to be
fulfilled in the most efficient manner possible (Okurame, 2012).
 Completer-Finisher: They focus on every detail and scrutinise the same so that works
provided matches with quality benchmarks.
People Oriented Roles Coordinator : They identify skills and values of every member to make them effective.
These persons in team provide guidelines to achieve goals. Team Worker : These persons support members to work together for completing task in a
productive manner.
 Resource Investigator : They identify required innovative resource for performing task
and work efficiently for achieving goals.
Though Oriented Roles Plant : These are innovators who always comes up with new ideas. They are introvert by
nature and prefer to work separately from other members. Monitor-Evaluator : These person in evaluate and analyse ideas given by others. They
analyse things in depth.
 Specialist : These persons have expert knowledge needed in performing tasks. They
maintain professionalism in work by their skills and abilities.
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TASK 4
P4 Concept and philosophies of Organisational behaviour
Philosophies are values of an organisation which differentiate them from other
businesses. Behaviour of an business is reflected from its values. Philosophies directly influences
efficiency and productivity of employees (Onyishi and Ogbodo, 2012). An enterprise can apply
these values in order to solve some issues which can affect performance level of employees. The
following are two concept of philosophies:
Nature of organisation: It explains purpose of existence of company. It is defined by
available opportunities and threats for company. In case of A M (Holding) Limited it is easily
understood by Ethics & values and social system of organisation. These factors are described as
follow: Ethics and Values : These are principles of an organisation. In A M (Holding) Limited,
these two can attract employees to be valuable towards their duties. If company is
ethically strong than it will influence culture of company like confidentiality of material
information and company should follow all legal procedures.
 Social system : Every enterprise needs to interact with customers, employees and other
organisations. Social system is very necessary for A M (Holding) Limited for
maintaining relations with other entities. Every company has following two systems:
(a) Formal- Peoples who works together at same place creates formal system.
(b) Informal- Group of persons who socialise in their leisure time.
Nature Of People: It explains qualities, character, personality of person which makes
them unique from other individuals. Following are factors which can affect nature of people of
A M (Holding) Limited: Individual differences: It is managerial one to one approach. It will help A M (Holding)
Limited to differentiate every employees to treat them equally on the basis of their work. Perception: It refers to ability of any person to uniquely observe and analyse things. It
helps A M (Holding) Limited to understand views of all employees because every person
has different way to interpret things.
 Motivated behaviour: It refers to behaviour of individual that is derived by some
motivation. In A M (Holding) Limited employees can have following two kind of
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