Organisational Culture and Behaviour: Harrods Report - MG414 Module

This report provides a comprehensive analysis of Harrods' organisational behaviour, focusing on its culture and impact on employee motivation and organisational effectiveness. It begins with an executive summary and introduction to organisational behaviour, emphasizing its role in understanding and improving company performance. The report identifies Harrods' culture using Handy's culture model, specifically highlighting the 'Role' culture. It then explores how this culture enhances organisational effectiveness through communication, detailing how effective communication with all levels of employees, freedom of sharing ideas, and top management accessibility contribute to a positive work environment. Furthermore, the report evaluates the role of culture on employee motivation, emphasizing the importance of transparency, honesty, and a positive work environment in inspiring employees. The report concludes by evaluating how Harrods could leverage its existing culture to further enhance its success, supported by both primary research (questionnaires) and secondary research (journals and books). The report underscores the significance of organisational culture in fostering employee engagement, driving operational efficiency, and achieving business objectives.

MG414
ORGANISATIONAL
BEHAVIOUR
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EXECUTIVE SUMMARY
The present report comprises of some significance related to organisational behaviour
along with the effect of culture on company's workings. Organisational behaviour is a study that
provides certain perceptions of human behaviour with the development of knowing some key
concepts that are used in motivating company's workforce. The Harrods is a company which
follows proper culture that assists company in motivating its employees in order to perform their
task to fulfil its vision and mission that brings more integrity and transparency. The
organisational culture performs a very important role in enhancing company's performance
backed by effectiveness in its communication among top level, middle level as well as lower
level of organisation. The company's employees feels free in communicating their ideas with rest
of employees. The culture plays a role of motivating company's workforce as it assists in
fulfilment of need hierarchy. Culture also contributes in bringing success to the business firm by
enhancing employees efficiency and productivity. The present report is being done with a
support from primary as well as secondary form of research in which primary research is
conducted by formulating a questionnaire in which the Harrods culture is analysed with a sample
collection of 15 workers. The secondary research is being conducted in order to fulfil report's
several other aspects that is done by having research from some journals as well as published
books.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Identify its culture in line with a theoretical model of your choice........................................4
Explore how culture improves organisational effectiveness with a focus on communication.6
Evaluate the role of culture on employee motivation.............................................................8
Evaluate how the company could use the culture of the organisation to further enhance its
success....................................................................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
The term organisational behaviour is an understanding of employees as well as
company's performance for the tasks that are being done in company. The main focus of such
understanding is to analyse the behaviour of its employees in organisation's working
environment that measures its effect on their job performance, leadership, structure, motivation
and many others (Asadi and et. al., 2020). The concept assists in providing perceptions towards
behaviour of its employees along with a development of analysing few aspects in order to
enhance their performance in their workings for company. This helps business in establishing
trust worthy and strongest relationship with its staff. With the help of this manager of a company
is comfortable in knowing the wants and needs of staff along with certain factors that affects
motivation level. Harrods is a company that is being considered under this report which is a
multi product operating company based on United Kingdom in the field of clothing, jewellery,
electronics, toys and several more. The present report comprises of organisational culture that
assists in enhancing company's effectiveness with the help of better communication. The report
also comprises of cultures role in motivating company's workforce along with the support that
culture brings in having company's success.
ABOUT HARRODS
Harrods is a UK based departmental store that deals in clothing, electronics, toys,
cosmetics, jewellery, health and food, etc. the company also has a chain of restaurants
comprising 23 stores. It has a large customer segment that comprises more than 300,000 buyers
who shops in peak time. Harrods was founded in year 1849 by Charles Henry Harrod. Its net
income is more than £233.2 million and generates revenue greater than £2 billion each year.
TASK
Identify its culture in line with a theoretical model of your choice.
Organisational culture refers to a combination of company's practices, expectations and
values that directs and instructs the tasks of each member is a team. The culture of an
organisation assists in benchmarking of company's expectations about the behaviour of
employees as well as their workings in a company (Baradarani and Kilic, 2018). The culture
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helps its team members in performing work in collaboration as it defines certain guidelines
which functions together for a team. In respect to Harrods the culture of an organisation is
identified by using Handy's culture model.
The model was developed by Charles Handy who states four various forms of culture that
is being followed in an organisation at workplace. The organisational culture in respect of model
is mentioned below:
 Power: This form of culture defines that few organisations gives authority to less people
in having decision making power and certain other controls (Choi, 2018). The people gets
pleasure only in having special kind of privilege during performance at work area. There
is a further delegation of few responsibilities to some people which posses a culture that
is required to be strictly followed by each employee all the information or decisions
without having no alternative option. Employees of Harrods under this aspect does not
have any freedom to share their views or opinions rather has to follow the directions
made by top level or by immediate boss. This type of cultural form possess features of
partiality in organisation.
 Task: The culture of task is associated with creating different teams so to attain
company's objectives or goals along with solving problems of critical nature (Eid and
Agag, 2020). The teams under this culture is being made on the basis of specialization the
employees have with the area of interest in achieving objective together. Each team
comprises of approx four to five employees who all contributes in equal ratio to complete
the set target in time with an innovative approach.
 Person: This form of culture gives a feeling of belongingness to company's employees
by knowing them that they are an important asset for organisation (Koo and et. al., 2020).
Under this the employees of a company pays concern for themselves instead of
organisation as a whole. The presence of this kind of culture in businesses brings
negative environment along with sufferings because the culture takes a position of back
seat. The staff under such kind of culture are only focused on earning remuneration
instead of attaching value and hard work dedicated towards organisation. For the
employees they are at the priority not the organisation for which they are working.
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 Role: This kind of organisational culture assigns some kind of roles and responsibilities
to its employees based upon their specialization, area of interest, and academic
qualification in order to have better results from it (Li and et. al., 2020). Under this
culture company's workforce is motivated to accept any kind of challenge and gives their
best for organisation to have effective outcomes. All the employees themselves takes the
ownership along with the accountability of their actions. The culture attaches some
responsibility and power which is given to company's employees.
From the analysis through various questions asked in a form of questionnaire it is
analysed that majority of employees feel that they are allotted with roles and responsibilities for
the tasks allotted to them. Harrods includes his employees in having their opinions or views to
bring innovation in their company so that they can offer better services to their potential
customers. From the sample of 20 employees from Harrods company it is found that:
The Harrods company applies a Role Culture in its organisation in which workforce is
allotted with some work and roles associated with it. The management of company bears an
expectation of having integrity and transparency from the side of their employees towards
organisation. Harrods possess values for its staff and motivates them for their hard work
contribution along with a regular encouragement for more productive performance. Harrods pays
its focus towards having integrity, transparency and honesty in its workings and the employees
are allowed to draw decisions associated with work but with an accountability for the same.
Explore how culture improves organisational effectiveness with a focus on communication.
The culture of an organisation performs a very vital role in enhancing company's
effectiveness because of the impact of workforce behaviour on working culture of an
organisation in which they are allotted with work (Peng, Lee and Lu, 2020). The organisational
culture is being developed by a leader of such company and becomes an integrated part of firm
which it mentions the way of working along with a communication hierarchy and channel needs
to be take place in within the operations of company. Productivity is only increased in such
organisation when there is a presence of positive and healthy working culture this brings strong
and peaceful working environment along with encouragement in efficiency of operations. A
healthy organisational culture removes all the possibilities of having negative or improper
environment from business.
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In respect to Harrods a company applies culture in order to enhance organisation's
effectiveness by employing proper communication medium in which there is an effective
exchange of information and plans. A proper and continuous communications assists Harrods in
having flawless running of company's internal process that develops a positive and healthy
relation among people along with all the stakeholders. A communication gap of any kind
between boss and subordinate brings misunderstanding as well as confusion that later on takes a
shape of conflicts at workplace. In relation of Harrods organisation takes eminence care of its
communication and culture to enhance its effectiveness which are mentioned below:
 Effective communication with top level and other staff: Harrods being following the
role culture in its organisation carries certain role and responsibilities that is mandatory
required to be communicated with company's employees effectively along with detailed
description in order to minimise the chances of confusion and clarity in targets (Pizam,
2020). Harrods must define roles of each employee in clear manner backed by all the key
elements of responsibility in order to have best and effective delivery by a company at
higher level. Top level management is responsible in delivering roles of each employee
based upon their interest area and specialization.
 Consistent performers to have say: Those employees who has maintained consistency
in their performance are allotted with freedom in order to share their views so to have
effective strategic planning which makes them feel encouraged and maintains healthy
culture in an organisation. Such communication assists Harrods in retaining its
experienced and highly skilled employees for a longer period of time because the
employees will be boosted through a chance of getting opportunity in presenting their
views and opinions that can be considered while making decisions.
 Freedom of sharing ideas: Employees of Harrods business must posses freedom in
offering their opinions, views in order to create a healthy and positive work culture. This
makes employees to have feeling of being motivated, valued or honoured that enhances
employees effectiveness which ultimately takes company to experience success.
 Top management to be reachable by all: Harrods company always focuses on
maintaining effectiveness in communication among all the level of employees along with
an easy reachability to top level of management for immediate solutions. The
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management of top level at Harrods can motivate its employees or lower level staff
directly by their own. This practice by management encourages Harrods employees and
generates feeling of belongingness because of continuous support from their
management.
It can be analysed that using effective channel of communication assists Harrods in
enhancing firms effectiveness along with culture that has an important place in developing
healthy and positive culture that builds medium for effective communication. Harrods is a
company that employs role culture in its organisation where the employees have freedom of
expressing their thoughts or views in decision making process in order to achieve targets in well
manner. This brings effectiveness in operations of Harrods.
Evaluate the role of culture on employee motivation.
Workplace culture performs a very crucial role in order to enhance employees motivation
because its states organisation's transparency as well as honesty which they possess to gain high
brand image in market (Qu, Jo and Choi, 2020). Employees in any organisation gets motivated
through spreading of positive and healthy culture that makes them feel secured during work
along with an inspiration to perform more better. When company's workforce is motivated
enough they works with more efficiency and greater productivity in an organisation that assists
firm in enjoying more profitability from their hard work. In relation to Harrods, firm can apply
its role in order to encourage its workforce to have more productivity as well as greater profits.
According to Maslow Need hierarchy theory Harrods can motivate its employees by
fulfilling their needs mentioned in Maslow's theory which everyone desires to satisfy need to
next level. Organisational culture plays a very important role in motivating employees along with
fulfilling their needs to stay encouraged. A theory is defined in a hierarchical manner having a
pyramid structure starting from bottom to up. The theory is explained below:
Physiological Needs: This covers basic needs such as food, shelter, clothing which are
necessity of life (Úbeda-García and et. al. 2018). To fulfil this need Harrods can provide fair and
equitable remuneration to all the employees based upon their competency also by reducing the
chances of discrimination in organisation.
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Safety Needs: Under this need an employee seeks to have safety at job place also with a
health security. Harrods can take care of its employees by looking into various safety and
security needs at work place.
Social Needs: This need requires to fulfil demand of having a society and a healthy
surrounding near where an employee can have relation (Vuković and et. al., 2018). Friendship
and an image in font of others. Harrods can schedule some training or informal gathering where
employee can develop relations with its peer group.
Esteem Needs: This includes recognition or appreciation in front of others. Harrods can
fulfil this need of its employees by recognising them of their hard work in front of whole
company or top level management.
Self Actualisation Need: This is a last need in the hierarchy where a person realises his
achievements and tries to enhance his existing skills (Yadav and Morya, 2019). Harrods can
enhance its employees skills through proper development which will allow them to feel
motivated.
From the above theory it can be said that culture plays as very vital role in developing
and motivating Harrods employees who with their hard work brings success for the company.
Evaluate how the company could use the culture of the organisation to further enhance its
success.
The relevance of corporate culture is highlighted in today's environment in each
organisation no matter its scale of operations. The culture is one which sets company's vision and
mission for an organisation that assists in achieving targets effectively.
The different ways in which Harrods can employee culture in order to attain success are
mentioned below:
Keep mission in mind: Organisational culture is formulated with a purpose of achieving
goals that bring profit for the company. A business firm that has its mission in mind can motivate
its employees to work more hard to fulfil its mission always experiences success and growth in
market. Harrods by focusing on its mission is able to fulfil its mission and has successful
business in industry.
Acquiring fresh talent: The organisations who acquires new and fresh talent in their
company for achievement of target attracts them through its positive and healthy culture that
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encourages people to work for such firms. The organisational culture of Harrods through its
culture attracts new talent from market to have productive results and success.
Employees retention: Those companies which have positive and healthy culture always
encourages its employees to work for them and stay for long term in their firms. Harrods through
its role culture is able to retain its high skilled and experienced workers in their organisation for
longer time.
CONCLUSION
From the above report it can be concluded that study of organisational behaviour
comprises of human behaviour that helps company in motivating and retaining its employees.
Organisational culture has a great impact and influence on workings of a business. Positive and
healthy environment in a company takes employees to feel motivated and work with more
productivity for the success of an organisation. It is very necessary to have an effective
communication so to avoid chances of misunderstanding and confusion. An organisation can
enhance the competencies of its employees through retention, encouragement, appreciation or by
application of Maslow need hierarchy theory.
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REFERENCES
Books and Journals
Asadi and et. al., 2020. Investigating influence of green innovation on sustainability
performance: A case on Malaysian hotel industry. Journal of cleaner production. 258.
p.120860.
Baradarani, S. and Kilic, H., 2018. Service innovation in the hotel industry: culture, behavior,
performance. The Service Industries Journal. 38(13-14), pp.897-924.
Choi, D.H., 2018. Impact of Organizational Culture on the Organizational Commitment in Hotel
Employees. Indian Journal of Public Health Research & Development. 9(8).
Eid, R. and Agag, G., 2020. Determinants of innovative behaviour in the hotel industry: a cross-
cultural study. International Journal of Hospitality Management. 91. p.102642.
Koo and et. al.., 2020. Relationships among emotional and material rewards, job satisfaction,
burnout, affective commitment, job performance, and turnover intention in the hotel
industry. Journal of Quality Assurance in Hospitality & Tourism. 21(4), pp.371-401.
Li and et. al.., 2020. Human resource management practices, emotional exhaustion, and
organizational commitment–With the example of the hotel industry. Journal of China
Tourism Research. 16(3). pp.472-486.
Peng, X., Lee, S. and Lu, Z., 2020. Employees' perceived job performance, organizational
identification, and pro-environmental behaviors in the hotel industry. International
Journal of Hospitality Management. 90. p.102632.
Pizam, A., 2020. Hospitality as an organizational culture. Journal of Hospitality & Tourism
Research. 44(3). pp.431-438.
Qu, Y., Jo, W. and Choi, H.C., 2020. Gender discrimination, injustice, and deviant behavior
among hotel employees: role of organizational attachment. Journal of Quality
Assurance in Hospitality & Tourism. 21(1). pp.78-104.
Úbeda-García and et. al. 2018. Continuous innovation in the hotel industry: The development of
organizational ambidexterity through human capital and organizational culture in
Spanish hotels. International Journal of Contemporary Hospitality Management.
Vuković and et. al.., 2018. The impact of organisational learning on innovation:
Yadav, S. and Morya, K.K., 2019. A Study of Employee Engagement and Its Impact on
Organizational Citizenship Behavior in the Hotel Industry. IUP Journal of
Organizational Behavior. 18(1).
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APPENDIX
QUESTION FREQUENCY
Q1. Who is authorised to take all the decisions in organisation?
a) Top Level Management 14
b) CEO 2
c) Senior Managers 3
d) Leaders 1
Q 2. How many members are included to form a team?
a) 5 5
b) 8 6
c) 10 6
d) 15 3
Q 3. How many personal are authorized to take decision in a company?
a) 1 12
b) 4 1
c) 5 4
d) 8 3
Q 4. In which field company includes its employees in having decisions?
a) for strategic planning 2
b) innovation 8
c) task allocation 4
d) product improvement or development 6
Q 5.What kind of rules and regulations you are required to follow?
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a) safety and security measures 3
b) dressing and styling 5
c) Leaves and absence 2
d) polices related to working hour and over time. 8
Q 6. up-to which extend power is centric in organization?
a) entire power 10
b) Up-to some extend 3
c) based on need and situation 5
d) Not at all 2
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