Organisational Behaviour Report: Cadbury Case Study

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ORGANISATIONAL
BEHAVIOUR

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1 Analyse how an organisation’s culture, politics and power influence individual and team
behaviour and performance.........................................................................................................2
LO2..................................................................................................................................................6
P2 Evaluate how content and process theories of motivation and motivational techniques
enable effective achievement of goals in an organisational context............................................6
LO3................................................................................................................................................10
P3 Explain what makes an effective team as opposed to an ineffective team...........................10
LO4................................................................................................................................................14
P4 Apply concepts and philosophies of organisational behaviour within an organisational
context and a given business situation.......................................................................................14
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

LIST OF FIGURES
Figure 1: Features of culture............................................................................................................3
Figure 2: Business power types.......................................................................................................4
Figure 3: Motivational sources........................................................................................................6
Figure 4: Employee needs theory....................................................................................................7
Figure 5: Factors maintains equal balance.......................................................................................9
Figure 6: Communication elements that make team.....................................................................10
Figure 7: Team behaviour through technology.............................................................................12
Figure 8: Leadership styles in OB theory......................................................................................15

Introduction
In modern era, businesses require to understand the behaviour of people that are associated with
firms. In context to it, organisational behaviour has depicted great importance as it studies the
human behaviour interface with organisation in individuals, organisational behaviour and work
groups. The current study will aim on analysing firm’s culture, power and politics that provide
huge impact on performances and individual behaviour of team members in context to Cadbury.
It will focus on evaluating importance of motivation in firm for achieving objectives planned by
business using different motivational theories of content and process that decided requirement
and satisfaction levels of team members. Moreover, the study will describe various team types
that plays important role in making effective teams as compared to ineffective teams discussing
its various features. Further, it will illustrate philosophies and concepts that are linked with the
organisational behaviour that helps in solving different business circumstances for maintaining
strong market positioning and image.
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LO1
P1 Analyse how an organisation’s culture, politics and power influence individual and team
behaviour and performance
The organisational culture in has significant role in gaining competitive and productive results as
it helps in creating better concepts for firm functioning. The term culture is set of understandings
in which community members has similar goals. It helps in generating distinctiveness in group of
people as it comprises of ideas, perceptions, morality, values, code of conduct, preferences etc.
Hence, organisation culture refers to shared attitudes and beliefs that direct employee behaviour
towards working. It helps in supporting management, develops strong structure, enhances system
of performance, tolerates risks etc. Similarly in UK huge number of firms manages work through
better and strong culture (Cadden, et.al, 2016). The Cadbury is cultured firm that manages its
operations in pro way that has its ranking on second position. It is identified as British
multinational firm of confectionary and called as largest brand in world that is headquartered in
London. It conducts operations across 50 countries that deal in Creme Egg, Roses selection box
and chocolate Dairy Milk. It has 71657 employees in firm that has effective culture to retain the
employees.
The firm has huge number of employees that is managed through certain policies, guidelines and
values that creates huge differentiation in production and its quality. The culture here plays main
role as organisation in deals with four types of culture that is classified below:
Power Culture – It is practised by limited number of people in taking decisions. The people with
power have privileges that make important personalities with better decision making ability. In
this, superiors orders and do not allow employee to take decisions and suggestions in work that
sometimes generates partiality in managers towards single person that brings unrest within other
people (Laforet, 2016).
Task Culture – It aims on finishing targets and resolving severe problems. The team is formed
with common specialisations and interests. Every team carries five to six people that have equal
contribution in innovation and task accomplishments.
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Figure 1: Features of culture
(Source: Characteristics of Organisational Culture, 2018)
Person Culture – It is followed by firm in which person has huge importance rather than firm. In
such culture, employees are focused on personal grooming irrespective of firm’s growth. It has
negative impact on organisation as earning money becomes motive for teams (Anitha, 2016).
Role Culture – The culture mentions that employees are given tasks and duties based on interest,
specialisation and educational qualification. In this culture power is allotted in work culture with
responsibility and determined employee calibre. Therefore, the Cadbury with distinctive policies
of labour management has created better culture of working.
In addition power and politics in firm also plays important role for providing effective directions.
Cadbury goes through various operations and activities in daily life that brings politics within
people and mindsets. Politics in workplace refers to utilisation of social networking and power in
firm that will help in initiating required changes. The politics in firm is important as it provides
chance to come under limelight by seeking appreciation and attention from seniors. It aids in the
growth of career and brings fame to an individual (Vigoda-Gadot and Drory, 2016). The politics
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in firm is used for ordering and coordinating things in such a manner that functioning and
running becomes smooth and even the members of team plays politics effectively for benefiting
at personal grounds. The politics might provide benefits to Cadbury but if it is practised at higher
level than it might bring decreased job satisfaction, impacts productivity, boost stress, disturbs
working ambience, low motivation in team and conveys wrong information.
The politics in firm generally impact at time of managing change that brings politics at various
level such as personal politics in which employee thinks about personal benefits and decisional
in which all process and works gets impacted by employees for getting performance benefits. In
cases of structural change, the firm changes all working criteria in which the politics has higher
chances of developing in culture to grab success as early as possible for grabbing high positions
(Crawford, et.al, 2019).
Figure 2: Business power types
(Source: Leadership Power, 2018)
Power is another term that is practised in Cadbury for achieving organisational objectives in best
and formatted manner (Li, et.al, 2017). Power is determined as authority possession and
practising control over others. It requires person to have importance, dependence and scarcity in
firm. It is important in business as it give directions, makes effective decisions, assists
management process, structures the firm, articulate objectives etc. There are several types of
powers that are practised in firm that includes:
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Coercive Power – In this manager forces and threatens staff to complete task and punishes in
case of not achieving goals. For example – demotions, terminations, pay cuts.
Legitimate Power – It derives from formal office or position. For example – the president of the
firm has authority to exercise such power.
Reward Power – The power is to give rewards to best performers for further conduction of such
better acts. For example – it includes bonuses, gifts, salary increase, praise, recognition, positive
feedback.
Referent Power – It is practised on followers or teams based on higher identification of level for
leader. For example – it includes celebrities, mass leaders, nationalism etc.
Therefore, a culture, power and politics in organisation are important ingredients that make work
and tasks pretty much easier by developing growth and career of employees and positions of the
firm (Clegg, 2016).
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LO2
P2 Evaluate how content and process theories of motivation and motivational techniques enable
effective achievement of goals in an organisational context
Cadbury as second largest confectionary firm has gained huge market share and customer sales
but at same time it has faced different criticisms and challenges that has shaken its existence in
market and questioned its quality measures taken for satisfying customers. Based on consumer
reviews and feedbacks it was found that taste of chocolate now found to be awful, it charges high
prices, minimised the size of cubes and most drastic that customer found worms in chocolate bar.
This type of issues might work as drawback for firm as customer might not rely on services and
health standards that are maintained by firm. The chocolates are liked by children most and for
this reason it is important to improve its quality and standards (Lăzăroiu, 2015). In reference to
it, business owners require to motivate staff for dealing with such crisis by using motivational
techniques as it plays major role in boosting morale of workers.
Figure 3: Motivational sources
(Source: Motivating Organisation, 2017)
Motivation
It is defined as reason for which person or an individual works in quality approach. This helps in
improvement of performance of employees that develops career opportunities. The firm leaders
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have ability to guide and direct employees in positive approach for task that enhances morale and
interest of workers (Mikkelsen, et.al, 2017). Further, motivational theories and techniques are
initiated so that better ways can be determined from which profitability and productivity can be
maintained. Following are the motivation types:
 Intrinsic motivation helps in encouraging people from internal sources present in firm. It
is initiated due to relatedness, autonomy and competence. For instance, the person works
for extra hours with interest of getting promotions that boost productivity also.
 Extrinsic motivation in which external reasons creates base for motivation in employee
minds. It is used for money, competition, praise and threats of punishment that helps to
boost working interest. For example – the person has motive to get promotions and extra
hikes in salaries for which extra hours are been used with better quality and quantity.
The leaders of Cadbury has major responsibility of motivating staff so to avoid mistakes in firm
and for this different motivational theories should be initiated included content and process that
helps to identify needs of employees and initiates change in working process for increasing work
morale (Al Mehrzi and Singh, 2016).
Figure 4: Employee needs theory
(Source: Maslow’s Hierarchy of Needs, 2019)
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Content Theories of Motivation – It helps in determining reasons or factors that brings positive
motivation in employees. It comprises various types of theories that aims on using internal ways
to encourage that directly impact on human behaviour and energises to work accordingly.
Maslow’s Theory
The theory aims at creating needs hierarchy from low to high (Stoyanov, 2017). According to
theory, a low need is achieved by employees and higher ones are emerging. The theory explains
that employee do not wish to fulfil higher needs till lower level needs do not get satisfied.
 Physiological Needs – Includes shelter, clothing and food.
 Safety Needs – gives safe culture, freedom from threats and job security.
 Social Needs – Creating team dynamics and acceptance.
 Esteem Motivators – Identifies projects, achievements etc.
 Self Actualisation – Gives meaningful and challenging assignments that allow progress,
creativity and innovation for goals of long term.
The theory helps in determining needs and requirements of employees for which person works. It
has mentioned needs of lower level but social needs are called as higher ones.
Process Theories of Motivation – It states the ways in which motivation occurs and for what
reason. It determines ways of creating satisfied process and working criteria from which worker
gets motivated and boost interest of work (Miner, 2015). These theories are very beneficial to
Cadbury if used in better manner.
Adams Equity Theory
The theory states that maintaining right relationship within rewards and performance is important
to be compared with others. The employee receives low satisfaction of the employer and leader
of organisation provides higher inputs in comparison with outputs. It brings negative impact on
minds and interest of people. It was introduced by John Stacey Adams that includes assumptions
such as:
 The employee compares inputs with the person that has higher outputs to determine the
inequality within firm.
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 The person makes various contributions in return to which expectation of rewards gets
increased.
Figure 5: Factors maintains equal balance
(Source: Adams’ Equity Theory, 2018)
According to theory outcomes are compared in three ways such as overpaid inequity that states
higher outcomes than input, underpaid inequity that mentions high inputs than outcomes and
equity states that input and outcomes are equal that brings satisfaction (Ryan, 2016). Thus,
Cadbury should use theory for treating all employees in fair manner so that motivation can be
boosted at higher level. The motivational theories initiation helps Cadbury in following ways:
 It will boost employee morale in dealing with situations in equal manner.
 Problems will be resolved in competent manner without feeling as stress.
 Satisfaction of team members will be increased.
 Employees will be able to remove issues like worms.
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