Organizational Behavior: Culture, Power, and Politics at Diageo

This report provides an in-depth analysis of organizational behavior at Diageo, a UK-based company. It explores how organizational culture, politics, and power dynamics influence individual and team behavior and performance. The report examines various power structures and their impact on employees, including positive and negative applications of power and politics. It also evaluates content and process theories of motivation, such as Maslow's Need Hierarchy and Herzberg's Two-Factor Theory, and how motivational techniques like setting goals and providing incentives enable effective achievement of organizational goals. Furthermore, the report analyzes team development theories and their relevance in fostering dynamic cooperation within the organization. The analysis includes a critical evaluation of the relationship between culture, politics, power, and motivation, offering recommendations for organizational success. The report concludes by summarizing the key findings and emphasizing the importance of a positive work environment and effective motivational strategies for enhancing employee performance and achieving organizational objectives.

Organizational Behavior

Contents
Introduction......................................................................................................................................3
L01...................................................................................................................................................4
P1 Analyse how an organization’s culture, politics and, power can influence individual and
team behavior and performance...................................................................................................4
M1 Critically analyze how the culture, politics, and power of an organization can influence
individual and team behavior and performance...........................................................................5
L02...................................................................................................................................................7
P2 Evaluate how content and process theories of motivation and motivational techniques
enable effective achievement of goals in an organizational context...........................................7
M2 Critically evaluate how to influence the behavior of others through the effective
application of behavior motivational theories, concepts, and models.........................................9
D1 Critically evaluate the relationship between culture, politics, power, and motivation that
enables teams and organizations to succeed providing justified recommendations..................10
L03.................................................................................................................................................11
P3 Demonstrate an understanding of what makes an effective team, as opposed to an
ineffective team.........................................................................................................................11
M3 Analyse relevant team and group development theories to support the development of
dynamic cooperation..................................................................................................................13
D2 Critically analyze and evaluate the relevance of team development theories in the context
of organizational behavior concepts and philosophies that influence behavior in the workplace.
...................................................................................................................................................14
L04.................................................................................................................................................15
P4 Concepts and philosophies of organizational behavior within an organizational context. . .15
M4 Range of concepts & philosophies and how they inform and influence behavior in both
positive and negative way..........................................................................................................17

D2 Critically analyze and evaluate the relevance of team development theories in the context
of organizational behavior concepts and philosophies that influence behavior in the workplace.
...................................................................................................................................................18
Conclusion.....................................................................................................................................19
References......................................................................................................................................20

Introduction
The definition of an organization refers to a group of people who are working for achieving some
desired objectives with material resources. In this prepared assignment, the organizational
behavior of Diageo situated in the UK has been discussed. The influence of the culture, politics,
and power of the behavior of others in the firm has been understood. The knowledge of
motivation of people and group for gaining the goals has become visible. There will be the
concepts and philosophies of organizational behavior. Organizational behavior explores the
behavior of the people by their organizational roles. One of the key areas of organizational
behavior is the determination of the organizational theory and preparation of a helpful concept
for organizational life.

L01
P1 Analyse how an organization’s culture, politics and, power can influence
individual and team behavior and performance
Organization’s power, culture and, politics ordain the growth and consistency of Diageo in this
modern era of business. Power and politics are the crucial elements of Diageo which are the
origins of the collapse and achievement of the company. These elements completely control the
application of the management and leadership of the company. In Diageo, power and politics
embody the resources, people, time, money, and behavior of the management team. The politics
are immensely reliant on the organizational culture and the operational roles. Many theories are
utilized in making the organization effective. The theories which are used in Diageo have been
effective for many years. The organizational structure of the organization shows the formation of
the organizational roles or the coordination of the works (Gupta, 2011). The consideration of
certain factors is important for structuring such as formalization, work specialization, a chain of
command, centralization, decentralization, and a span of control. Diageo follows three types of
power and political structures which are simple structure, bureaucracy structure, matrix structure.
Individual team behavior and performance could be influence by these structures. There are
different types of power which are reward power, legitimate power, coercive power, referent
power, and expert power. Diageo has three types of power which are physical power, emotional
power, and informational power. If power and politics are used in a negative way that can affect
the performance of the employees and group members. For example, if a marketing manager of
Diageo has proper information about the field he can easily do his tasks efficiently and get the
profits from Diageo such as rewards and salaries. The impacts of power and politics in Diageo
are determined are reliant on the application of them for influencing others in the firm.

M1 Critically analyze how the culture, politics, and power of an organization
can influence individual and team behavior and performance
The individual and team behavior of the performance can be influenced by the power, culture,
and politics of Diageo. Diageo has two stages of politics. The first stage of its politics embodies
the employees who work under the other people for getting those employees to do the tasks
appropriately. The second part works to negotiate and work altogether. When the higher
authorities get the caliber, they start directing and controlling the decisions and the employees
have no power to refuse the decisions. Consequently, it leads to less productive decisions and
decreases the involvement of the experienced employees in the decision-making for the company
(Wiley.com, n.d.). It is obvious that politics and power can influence individual and team
behavior and investigate if the entire culture of the organization motivates growth and
productivity.
Positive types of power: Diageo’s positive power helps in increasing the productivity of the
company. This power incorporates the employees by giving them the power for making
decisions for the company and gives appreciation and reward for the hard work given by them.
Positive power also helps in increasing the confidence level and inspires the employees to
provide their best afford. The withholding rates of the employees become low when the
employees get the power to make decisions and share their own ideas for the company.
Negative types of power: The negative power becomes visible when the leaders of Diageo do
not give any appreciation to their employees. This type of leader intimidates the employees to get
the tasks done properly with punishment. Besides, the leaders show favoritism to some particular
employees and do not give any adoration to the employees who work hard. Thus the quality of
work decreases under this negative power and it leads higher turnover rate in Diageo.
Positive politics: Diageo has to develop a political structure that is very clear and easy to
understand for their employees. Because the clear political structure helps to increase the
productivity of the company and leads the employees to earn the best results by using their time
efficiently. A workplace with an environment focusing on association and equal conduct
decreases the conflict that breaks the flow of productivity (Diageo, 2019).

Negative politics: The conflict among the employees of Diageo when it applies negative
politics. If the company encourages the employees to engage in unethical behavior the quality of
work can decrease and the company will face high rates of turnover.

L02
P2 Evaluate how content and process theories of motivation and motivational
techniques enable effective achievement of goals in an organizational context.
If Diageo increases motivation it can bring a positive impact on the productivity and
performance of its employees. As many kinds of motivators deal with different types of
employees some diverse theories and techniques are used in motivating the employees of
Diageo. Some techniques and theories used in motivating the employees of Diageo are
discussed below:
Create a positive work environment: Positive environment works as a motivation for the
employees by inspiring them to share their knowledge and ideas for the company to get the best
results. Moreover, the higher management should be present in every situation of the employees
so that they can help the employees to solve the problems and create a positive environment.
Set goals: Another technique to motivate the employees is to set the goals and objectives of the
existed employees. Diageo can be benefited if their employees set the goals and objectives for
the company. Because the goals and objectives set by the employees are reasonable and achieved
properly.
Recognize achievement: Diageo has to recognize the achievement of the employees because it
helps in motivating the employees and makes them work harder for the company. The
identification of the skills of the employees can be easy if the company recognizes the
achievement of the employees. Consequently, the employees can be properly utilized for gaining
the objectives.
Provide Incentives: Providing incentives is crucial for the employees of Diageo because it
motivates them to provide their best afford to gain the organizational objectives appropriately.
Besides, if the company gives rewards to the employees who work hard it will create trust among
the employees. The financial incentives of Diageo are cash prizes, certificates, coupons, etc. The
non-financial incentives of Diageo that are provided to their employees are holidays and vacation
days.

Provide professional enrichment: Diageo has to inspire their employees for taking education
and creating an impact on the decision-making. The company should send their employees to
seminars and workshops related to their tasks and effectively conduct them so that they can gain
their objectives. Diageo has to promote their current employees properly and help them to
achieve a good professional career (Turner, 2017).
Maslow’s Need Hierarchy Theory:
This is one of the well-known theories for giving motivation to employees. There are five levels
of need are attached to this theory and if the levels of need are fulfilled once these needs cannot
motivate an individual again.
The five levels of need are discussed below:
Physiological needs: These are basic needs that are essential for the living of human life. The
needs are clothing, food, air, shelter, and other essential things for life and have to be fulfilled at
the initial stage. After that, the next level of needs can be activated.
Safety needs: when the physiological needs are achieved the safety needs come. These needs are
called as need of safety and security. Individuals require money and work more for achieving
these needs (Singh and Behera, 2016).
Social need: All employees try to get social interactions and belongingness. Thus they want to
work in the old groups.
Esteem need: These needs are for self-respect. This need incorporate the achievement of esteem
needs, strength, and competence.
Self-actualization needs: These needs are incorporated with the stage of respect for the bottom,
intermediate and upper needs.

M2 Critically evaluate how to influence the behavior of others through the
effective application of behavior motivational theories, concepts, and models.
Each of the remunerations works with certain behavior and helps in meeting the needs and
gaining the goals. The reward system is applied for giving compensation to the employees for
their skills and responsibilities. The behavioral motivational theories are categorized into three
segments.
Content theories: This theory assists in influencing the behavior of others. This theory deals
with the works and motivates the employees for their works. The theories which are incorporated
in this theory are shown below:
Two-factor theory of motivation: Friedrich Herberg developed this theory that is classified
with the intrinsic and extrinsic factors. These are also called motivators and hygiene factors.
These factors include recognition, achievements, and responsibilities, etc.
ERG theory: This theory was developed by Clayton Alderfer. In this theory, there are three
groups of needs which are existence, relatedness, and growth. These needs are not the same in
order according to the background of the employees working in Diageo (World of Work Project,
n.d.).
Process theories: This theory anticipates rational qualifications and works towards the
endeavors.
Expectancy theory: This theory was developed by Victor Vroom on the basis of anticipation
and valence. The senior employees get retired to give benefits to the younger employees.
Supremacy is the feature that refers to the results that are considered significant. If Diageo offers
incentives to the workers it can not implement the desired behavior with the required efforts.
Equity and attribution theories: This theory defines that a key input into job presentation is the
fidelity that an employee experiences for their work situation. When the employees observe the
ratio for their results to inputs and the ratio of the other results.

D1 Critically evaluate the relationship between culture, politics, power, and
motivation that enables teams and organizations to succeed providing justified
recommendations.
Organizational culture is a combination of the power of the employees, politics among the
employees, and the level of motivation for employees. Every activity of Diageo influences its
employees. Diageo should ensure that a productive employee must not be attached to the
organizational politics that may hamper the performance of the employees. Eventually, the
employee of Diageo will not feel motivated to work for the organization because they will see
that the decisions are made politically.

L03
P3 Demonstrate an understanding of what makes an effective team, as
opposed to an ineffective team.
An effective team shows certain characteristics. All members of effective teamwork like one unit
to gain the objectives and goals of Diageo. Some characteristics of creating an effective team are
discussed below:
Team focus: When the teams do not understand the purpose of the organization they become
ineffective in their performance. Their performance also lacks purpose if they do not understand
the goals and objectives clearly. They can be punished if they cannot give their required
performance properly in the organization. When the teams of Diageo work together they can
determine their goals and objectives easily and work appropriately to gain them.
Inequal membership: Every team of Diageo has to provide equal participation in the discussion
of the groups. It can be possible that some members strongly speak in the group discussion and
some don’t because they can not identify the desired ideas. So it is crucial for the team members
to participate together in a group discussion to make the plans effective (Cheung, Lun and
Cheung, 2018).
Errors and negativity: Some team members make errors when they work to achieve the goals
and objectives of the organization. Then the other team members start pointing them at their
errors and try to make them negative in the organization. The team members of Diageo need to
work together for achieving the objectives and goals not pointing out the errors of each other.
Self-evaluation plays a vital role among the team members of Diageo to correct the faults and not
to make larger damage to the organization.
Some certain needs of making the teams effective are given below:
 Balanced Roles
 Good Communication
 Sound Inter-group relations