Impact of Leadership on Employee Behaviour at Asda: A Report

This report analyzes the organizational behaviour within Asda, a UK-based supermarket retailer, focusing on the impact of leadership styles, particularly autocratic leadership, on employee turnover. It examines Asda's organizational culture, power dynamics, and the influence of organizational politics on employee behaviour and performance, utilizing frameworks such as Charles Handy's model, Hofstede's cultural dimensions, and various organizational psychology theories. The report also explores motivational theories, including content and process theories, and the application of extrinsic and intrinsic motivation to enhance employee productivity and achieve organizational objectives. The analysis includes an examination of effective vs. ineffective teams, Tuckman’s group development theory, and the concepts and philosophies of organizational behaviour, providing a comprehensive overview of the factors influencing employee behaviour and organizational success within Asda.

ORGANISATIONAL
BEHAVIOUR

TABLE OF CONTENTS
TASK 1............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1: Analysis of organisational culture, power and politics.........................................................3
LO 2.................................................................................................................................................8
P2: Motivational theories, models and concepts.........................................................................8
CONCLUSION..............................................................................................................................11
TASK 2..........................................................................................................................................12
Effective vs Ineffective team.....................................................................................................12
Tuckman’s group development Theory.....................................................................................13
Concept and philosophies of organisation behaviour................................................................15
Reflective.......................................................................................................................................16
REFERENCES..............................................................................................................................17

TASK 1
INTRODUCTION
Organisational behaviour in context to management is the study of human behaviour in
company settings where the interface between company and employees is studies and aims at
development of a better organisational culture and workplace with satisfied employees and
completion of the organisational objectives (McShane and Glinow, 2017). This formal report
will study the case scenario where in the company Asda, the employee turnover has reached a
high level due to the autocratic leadership style. Asda is a supermarket retailer based in UK and
headquartered in West Yorkshire. The report will critically analyse the organisational structure
of Asda, and the impact of company’s power and influence and politics upon the employee
behaviour and performance using culture-difference awareness, Charles Handy’s theory,
Hofstede dimension of culture, network and systems theories and organisational psychology. The
report will also highlight ways in which process and content motivational theories, behavioural
psychology and motivational techniques help in enabling organisations like Asda to achieve its
organisational objectives and goals.
LO 1
P1: Analysis of organisational culture, power and politics
Organisational culture
The workplace in recent times is changing around the world as globalisation and modern
changes of work styles and workplace cultures have started driving the organizational
perspectives. Multiculturism and diversity can be observed in the workplaces and a substantial
need for increased awareness of culture has become necessary. The major impact of this is on the
productivity and performance of employees who differ in their way of thinking, personality and
behaviour due to diversity in cultures. It has also risen necessity of established standards,
employee legislations and conflict-resolution. It is a dire requirement to avoid the cultural
conflicts and differences to avoid the decrease in potential of employees and its effects on the
organisation (Felipe, Roldán and Leal-Rodríguez, 2017).
3

Charles Handy’s model of organisational culture
As per Charles Handy the organisational culture can be divided into four major elements that are:
 Power Culture: In companies like Asda where there is prevalent power culture, the
authority and power are held by a handful of people who tend to influence the entire
company. This can be considered autocratic leadership style that are currently being
implemented in Asda. There tend to be a couple of rules and regulations which have to be
followed by the employees and the power to make decisions remains in the hand of the
individuals with power. The employees are usually assessed by their targets and
achievements instead of how they act or conduct things in the company. The culture
tends to have quick decision making and direct communication and clarity in orders. But
the major demerit is that the culture can become toxic and lead to collapse of the
organisation (Kurniadinata, 2020.).
4
Person
Culture
Role
culture
Task
Culture
Power
culture
Culture

 Task Culture: In a task culture, all the individuals and teams are created for addressing
the particular problems related to specific projects or challenges. The task remains an
important aspect and hence power remains within the team members. However, the
power tends to shift among the team members as per the status of the task. The success of
this culture largely depends upon the team members and the way they take decisions and
operate.
 Role Culture: This culture is adopted by organisations who follow rules and have highly
controlled operating mechanisms in terms of roles and responsibilities. The power in this
culture is determined by the role or position in the hierarchy of the organisation and
generally have a long chain of command. The decision-making process is quite slow and
company can become bureaucratic in nature.
 Person Culture: The companies who follow a person-based culture, tends to give
importance to individuals who have special skills and competencies that are unique and
provide value to the organisation. The company would merely exist for the purpose of
employees to work. This remains a collection of individuals who work in the same
company. The power remains in each group on individuals.
Hofstede’s cultural Dimensions
The framework helps in understanding the cultural differences across countries and their effect
on decision-making and the manner in which business is done. There are six dimensions of
organisational culture which affect the business:
 Power Distance Index: It considers that extent of relation between power and inequality
and the degree at which they are tolerated. The high-power index shows that a culture
encourages authoritarianism and bureaucracy and respects the rank and autocratic
aspects. A lower power distance represents decentralisation.
 Indulgence vs Restraint: A highly indulged culture represents relative more gratification
such as enjoyment and fun while restraint-based cultures suppress gratification via social
norms (Ugrin, Pearson and Nickle, 2018).
 Individualism vs collectivism: This represents the extent to which societies and its
integration drives the culture in relation to obligations and dependence. Individualism
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shows that there is higher significance in attainment of personal or individual goals
whereas collectivism indicates a higher significance on the objectives and the sustenance
of a group or society that works collectively.
 Uncertainty avoidance: This dimension observes the degree to which there is tolerance
for ambiguity and vagueness of unexpected situations. A high uncertainty index equals to
low tolerance and low risk taking with stricter regulations while low uncertainty index
indicates high tolerance for vagueness and more acceptance of the unknown.
 Masculinity vs femininity: High masculine cultures like that of US and China represent
assertiveness and importance on material achievements whereas high feminine cultures
like Iceland represent focus on quality of life and environment.
 Orientation: Long term orientation indicates delaying of gratification emphasising on
long term growth while short term orientation focusses on near future emphasising
present rather than future.
Organisational politics and its influence
Organisation politics can be referred to as the self-serving behaviours of the people
working in the organisation use for raising the probability for attaining positive results in the
company. It is used to serve personal interest and influence co-workers and leaders to fulfil
individual goals and objectives. The differentiation between personal, structural, decisional and
organisational change tends to influence how employees behave and impact the operations of the
organisation. The effect of organisational is mostly negative in context to absenteeism, employee
turnover, the culture of the workplace and overall organisational behaviour. Politics tends to
reduce the output of employees which eventually lowers their performance and productivity,
individuals who are involved in politics have low tendency to focus on work, there are common
instances of work delay whenever high politics in involved. Politics influences the attitude of the
employees and serious employees may lose interest in work due to the disruptiveness of
workplace culture, it affects the concentration of the employees and employees tend to make
errors and mistakes. The employees tend to focus more on impressing the superior authority by
any means and tend to ignore the core work. The team collaborations and working are highly
impacted and there is an ambience of negativity in the workplace. There may be problems with
communication and manipulation of information which could directly impact the work and
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management might not understand the actual scenario that an employee is dealing with or the
real challenges of the organisation. Apart from this organisational politics can demotivate the
employees and reduce their productivity due to uncertainty of rewards and promotions.
Organisations have to always work on eliminating politics beyond a certain level ((Lampaki and
Papadakis, 2018).
The influence of power in organisation
Organisations are made of individuals who are place at various levels and hierarchy in an
organisation and tend to have different degree of authority and power. There are various sources
of power that leaders may exercise from organisational power which comes from authority to
individual power that comes from skills and expertise.
 Legitimate power: This source of power is also known as positional power and is derived
from the authority and level in an organisational structure or hierarchy. Most employees
respect and report to people with such power.
 Expert Power: This power is based on individual power of a leader or person in the
organisation who is highly valued for the expertise in a specific area or possession of
knowledge about performing critical tasks and solving problems.
 Referent Power: This power source derives from interpersonal relationships that a leader
or person cultivates among other employees in the company. This type of power arises
from charismatic influences of the leader by trust worthiness, valuation, admiration and
respect (Ghasemi, Gholami and Zeinali, 2020).
 Coercive power: This power arises from the ability of the person to influence other
employees through usage of punishments, threats, reprimands or various sanctions. This
power ensures that the rules are being followed.
 Reward Power: This power is portrayed by a leader or a person in the company for
influencing the allocation of incentives and rewards such as salary increments,
performance appraisals, recognition, and promotions. The organisation where reward
power exists tends to increase the output and motivation of employees.
7

LO 2
P2: Motivational theories, models and concepts
Motivational theories refers to tasks of discovering what drives employees of Asda to
work towards achievement of certain outcome and goals. Business motivates employees as it
helps them to derive employee’s productivity and helps in more economic utilization of
resources.
Extrinsic and Intrinsic Motivation-
Extrinsic motivation refers to the behavior of employees at Asda which is driven by external
rewards such as fame, money and praise in organization. It arises from outside the individual. It
is usually defined as tendency to be in and to engage in activities, by which its employees get
some type of known rewards that are external (Locke, Schattke, 2019). It can be either tangible or
psychological in nature such as Money, trophies etc. which serves as tangible source of extrinsic
motivation and praise, fame, recognition that serves as psychological source of extrinsic
motivation.
Intrinsic motivation refers to employee’s behavior at Asda which is driven by internal rewards. It
refers to motivation to engage in employees behavior arise from within an individual itself and
which satisfy employees naturally. It is an act of doing something without taking into
consideration any external reward (Kuvaas, 2017). It is being done by employee as they find it to
be interesting or fun- loving rather than to gain outside incentive or they are being pressurized to
do which provides them external rewards.
Asda needs to constantly monitor both for its employees to ensure efficient functioning and non-
compiling with same will lead to high rate of turnover of talented employees from company.
Content theory
It is subset of theories of motivation that defines what motivated employees of Asda. It defines
various system of needs that motivates employee’s actions. This theory helps in what those needs
and motives are. It could be understood by
Herzberg’s two factor theory- It argues that there are two factors that influence and adjust
motivation in workplace. These are Motivators which motivates employees of Asda to work
harder and Hygiene factors that does not motivate to work harder but non presence of such will
lead employees to be demotivated. Motivators include
8

Achievement - job at Asda must give sense of achievement to its employees which gives them
proud feeling of done something difficult
Recognition- Job must provide employees of Asda with praise and recognition of their success.
Work itself- the job must be interesting, and backed up with challenges to make employees
motivated.
Responsibilities- Employees should hold themselves to be responsible for their completion of
tasks.
Advancement- Promotion should be made in Asda to derive motivation of its employees.
Growth- Jobs at Asda should give employees to learn new skills in there relevant field.
Hygiene factors include-
Company policies- It should be clear to each and every employees and should be fair enough
Supervision- it should be appropriate and reasonable where employees be given sufficient
autonomy (Alshmemri, Shahwan-Akl, Maude, 2017).
Relationships- There should be amiable, healthy and appropriate relationship between peers,
subordinates and superiors of Asda.
Salary- The pay scale at Asda should be reasonable and fair and competitive with its competitors
in industry.
Working conditions- Equipment should be safe, hygienic and fit for the purpose.
Status- Asda should ensures in maintaining status of employees within organisation
Security- it relates to security of job and employees are under no threat of being laid off.
Process theory
It refers to system of ideas that explains how entity develops and changes. It explains why
behaviors are initiated which focuses on employees of Asda choosing a target and efforts that hit
the same. It could be understood better by
Vroom’s Expectancy theory
This theory assumes that behavior of individual is resulting from conscious choices among
various alternatives where the purpose is to maximize pleasure and minimize or decrease pain. It
realizes employee’s performance in Asda is based upon individual skills, personality, experience,
knowledge and ability (Patil, 2020). It suggest that even employees have different set of goals
they can be motivated if they believe
 Favorable performance will result in awards desirable by employees.
9

 Positive correlation exist between performance and efforts
 The need will be satisfied with reward gained.
 The efforts are worthwhile to make to satisfy needs which is desirable by employees.
It is based upon 3 things
Valence – It refers to emotional orientation which people hold in respect of outcome or reward
received
Expectancy- Employees at Asda have different expectation and have different confidence level
of what they can achieve and do (Lloyd, Mertens, 2018).
Instrumentality- it is perception of employees whether they will get actually desired what
management promises, which needs to be fulfilled in order to derive employees motivation at
Asda.
Company needs to closely monitor content and process theory as non-compiling with same will
lead them to face harsh time as it employees will not be satisfied which will decrease their
efficiency to work as a result will lead company to face loss heavily.
Motivation helps management and leadership in increasing organisational efficiency as it helps
in increasing employee’s satisfaction which in turn help Asda to derive employee’s higher
productivity and efficiency to take up challenging task that contributes towards growth and
development of company as well as employees.
It also helps in effective utilisation of resource and building better relationship with employees
which helps in reduction of employee’s turnover and helps in better organisational image and
goodwill and be competitive in marketplace.
Behavioural psychology
Emotional intelligence refers to one owns ability to use, understand and manage emotions
in favourable manner in order communicate effectively, overcome challenge, reduce conflicts,
empathizing with others and many others (Emotional Intelligence, 2017).
It is important on part of managers to develop soft skills as it helps in engaging with meaningful
interaction with its employees. It helps managers at Asda to develop an environment that is
highly productive for employees to work and conducive to better and successful achievement of
10

goals. It help in building better relationship with employees, enables smooth flow of business
operation and helps in avoiding conflicts and misunderstanding at Asda (Rebele, Pierre, 2019).
Manager/ leaders of Asda who fails to exercise soft skills get to face bad times as its employees
will not feel comfortable working with which as results leads with high rate of employees
turnover.
Task v/s Relationship leadership
Task leadership refers to behavioural approach of leader which focuses around task that
needs to perform in order to achieve certain standards or goals. Task oriented leader focuses on
completing necessary task in order to accomplish company goals, where they are less concerned
with employees and are highly focused on finding step by step solution to meet business target.
Relationship leadership refers to leadership where leader focuses more on motivation,
satisfaction and well-being of its employees. It focuses on and encourages collaboration and
team work by fostering communication and positive relationships (Dalluay, Jalagat, 2016). It
understand to build positive productivity requires positive environment where individuals feels
flexible in carrying their work and achieving goals of company
Company need to have both task and relationship leaders in order to run company
efficiently and non-presence of which may lead employees with direction that is not focused on
achieving goals of Asda.
CONCLUSION
From the above report it can concluded that organisational culture, power and politics
have a major impact upon the performance of employees in autocratic organisation like Asda.
The organisational culture is also affected by the leadership and management styles and the
hierarchy in the organisation works. The culture of Asda was describes using Handy’s model and
Hofstede model describes how business can be impacted by various cultural dimensions. The
negative effects of organisational politics were elaborated such as reduced employee motivation
and higher turnover. The power that is used by leaders to influence employees was describes
using various sources of power. Apart from this motivational theories, concepts and techniques
were elaborated to retain the employees, increase their job satisfaction and improve workplace
culture.
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TASK 2
Team roles becomes important in changing business and organisation use various kind of
theories for framing and managing workforce. Company use various kinds of way in selecting
people for the project. This selected people are set in a group, where they all work for a single
goal and focus on achieving it. Strength of this participant depends on mutual understand and
cooperation. Asda management and leaders choose workers wisely for any team and hence it
helps in gaining competitive advantage in changing business. It also increase quality, efficiency
and productivity of work and organisation will able to achieve higher target on time.
Effective vs Ineffective team
An effective team can be define as in which all workforce concentrated on single goals.
They work hard and support each other in achieving ii. Ineffective team members focus on
individualism success rather than group’s achievement and hence firm mutual difference are
comparatively higher in it.
Effective team Ineffective team
Goals All the members are agree and
work together for accomplishing
single goal for the
organisation(Young and et.al.,
2018).
Because of lack of understanding
between members, they remain
confused for aims and objective
of the firm.
Member
contribution
People in the project contribute
highly so that output can be higher
and with good quality. Also, they
remain connected to each other.
Individualism decrease
performance of workers. Seniors
take all the credit of achievement
while junior output remain
sideline.
Listening In this everyone try to understand
each other and hence effective
communication leads to fruitful
results.
Members of the group has
different opinion and hence
listening block in such kind of
teams which effect on
productivity of work.
Conflict Every problem is discussed in right Large number of difference
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Resolution way and all participate in it which
helps in coming to a single point.
People in the group try to avoid
difference by communicating with
each other.
becomes barrier in solution and
hence it effect on efficiency of
work.
Decision-Making Management and employees
equally participate in framing
policy procedure and anything
related to work.
Decisions are taken by few
members of group and hence all
other members remain
unsatisfied by this which
increases mutual tension among
authority and workers.
Leadership Leaders do not dominate others in
this kind of team and on the other
hand try to gain loyalty of
workforce by giving higher
autonomy at workplace.
Board of direction and higher
authority remain domination
throughout work which increase
isolation chances of employees
at workstation.
Self Evaluation In this people take responsibility of
mistakes and try to solve it timely.
Also try to understand strength and
weakness related to work and
accordingly improve it.
High difference become a major
challenge in self evaluation of
workers and also effect on
growth of the firm.
Division of
labour
People are divided according to
project steps and guidelines
associate also given to them.
Workforce keep shifting
according to need of leaders and
hence create confusion at
workstation.
Tuckman’s group development Theory
In the year 1965, Bruce Tuckman developed a developed a theory for team formation.
This theory is divided into 5 stages namely forming, storming, norming, performing and
adjourning.
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Forming
In this stage people are selected by management of Asda for making team. Employees
selection depends on various factors such as skills, background and interest for example IT
interested personal can be profitable for company to handle online sites. People remain polite
and humble and try to know each other (Souza-Monteiro and Hooker, 2017). Motivation remain
high because they will go to do something different what they did in past. Timelines are setup for
accomplishing every task and goals are projected. Few rules are also discussed in this stage and
individual roles are discussed.
Storming
This is one of the difficult phase for Asda, as group themselves divided and difference
between workers increases which effect on performance of work. Miscommunication in the intial
stage becomes one of barrier for making effective team. Management problems increase to join
all the employees for accomplishing single objective (Akanji, 2017). Workforce can also
disagree on goals and try to challenge senior authority for taking wrong people for the project.
Senior authority tries to make understand profit of being in team and the way in which it help in
achieving higher target on time.
Norming Stage
Employees in this stag try to resolve their difference and work in a team for organisation
benefits. Member’s role and leaders are set up in it and hence all remain motivated for working
together. Relations again start building in this stage and performance of the team increases.
However, management of Asda take proper decision so that it did not back to storming.
Performing stage
Maturity of the workers increases and cooperation of each other help Asda in increasing
quality, efficiency and productivity of the work (Ramanathan and et.al., 2017). Team are
planned, organisation and work in proper structure so that process remain smoothly. Meeting and
other ways are decided for solving differences and issue related to work.
Adjourning
Project is completed in this phase and members appreciate each other for various kind of
task’s achievement in Asda. Also. Management gives award, reward and incentives according to
performance of the workers. Resources and workers are reshuffled for the next work and a part
was setup for achievements.
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Concept and philosophies of organisation behaviour
Path goal theory can be describe as the process in which senior leaders set some rules and
guidelines for employees and according to it they have to perform. Senior authority provides
various kinds of resources and help in achieving target on time. There are 4 types of leadership
style that are use by management of Asda for gaining higher output timely.
Directive Leadership
In this board of director and CEO of the firm try to understand project nature and
accordingly guidelines are set up which they provide workers for performing duties. It positively
impact on skilled or unskilled work and hence firm will lesser time and complication in
achieving target. However, management keep analyse on the performance of the workers and
also in time of any deviation guide them (Dedaj, 2017). For example: Employees in Asda stores
instruct them for what they have to do by leaders and according to them they perform, but KPI
are use for checking working capacity and mistakes.
Supportive Leadership
Employees are motivated and supported by leader in this style. Before framing and
organising goals, workers are involve in it so that they can decide the way in which they can
work and according management gives guidelines. It is more of friendly nature and hence
workforce loyalty increases because they are included and involve in various kind of decision
that are taken from them by senior authority. It implement is Asda when workers are motivation
level is low and feel isolated at workplace. For instance workers in the firm involve in framing
task during festival season so that they can work as per the guidelines and in effective way.
However, it become difficult all people in the firm and hence become time consuming for the
firm and also increase expenditure which can be utilised for market expansion.
Achievement-Oriented Leadership
In this leaders highly focused on taking as much as output they can take from workers
capacity. They set difficult or complex goals and objectives which workforce has to follow. They
think workers enthusiasm can achieve anything and by this firm will be able to achieve higher
target on time and increase market share of the firm. Expectation of senior management is very
high in this which increase tension between workers also they start feeling exploited. However,
people who has confidence for achieving any kind of goals and love to take risk fall in this
15

category. For example: Asda’s marketing team remain highly enthusiastic for handling any
difficult situation which helps leaders to set higher goals for them.
Participative leadership
In this management involve employees for framing decision for the organisation. It helps
firm in achieving higher target on time and increase market share in changing business. For this
kind of leadership style employees must have talent and experience which can contribute in
growth of the organisation (McShane and Glinow, 2017). However, This is not possible in all
the cases as when decision are taken quickly, workforce suggestion overlooked and only
management play important role in it. Opinion and suggestion are taken with the help of
feedback, meetings and survey and hence right plan can be implement and executed by all
employees support.
Reflective
I have learnt so many things during research on team management and philosophies of
organisation behaviour. In the beginning I found this topic as one of difficult because of various
details by various author but with time my interest developed and able to complete work on time.
There are many challenges which becomes barrier for my research such as Asda’s information
related to organisation behaviour is not able on internet which increase my time and cost by
going through large number of offline sources. Also, I try to make contact with employees of the
firm which did not give response and hence I have to write what is available on official sites. My
friends and guide remain supportive throughout study which highly impacted on my
performance.
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Online
Emotional Intelligence.2017 [Online]. Available through< https://hbr.org/2017/02/emotional-
intelligence-has-12-elements-which-do-you-need-to-work-on>
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