Organisational Behaviour: H&M Company Analysis Report

This report provides a comprehensive analysis of organisational behaviour, focusing on the multinational fashion retail company Hennes & Mauritz (H&M). The report begins by defining organisational behaviour and its impact on company effectiveness. It examines the characteristics of different organisational structures, including span of control, departmentalization, centralization, and decentralization, and assesses the influence of organisational culture on employee performance and decision-making. The report further explores the impact of learning and teamwork on employee effectiveness, highlighting how training and collaborative environments can enhance productivity and job satisfaction. Different leadership behaviour theories, such as those from Michigan and Ohio State Universities, are evaluated, along with theories relating to work relationships and interactions, including social exchange and uncertainty reduction theories. Finally, the report discusses the effects of change processes and outcomes on employee effectiveness, emphasising the importance of managing change effectively to minimise stress and maintain productivity within the organisation.

Organisational
Behaviour

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different organisational structures characteristics................................................................1
How the culture of organisation can impact on effectiveness of the organisation................2
What is the learning impact on employees effectiveness......................................................2
TASK 2............................................................................................................................................5
Evaluate different leadership behaviour theories...................................................................5
Analyse theories relating to work relationships and interactions...........................................5
Relevance of organisational culture theory in developing organisational effectiveness........6
TASK 3............................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7
.........................................................................................................................................................9

INTRODUCTION
Organisational behaviour can be defining as a study of how people behave or act in a
group (Bakotić, 2016). It is a field of study which helps in investigating the impact of behaviour
employees, organisational structure and group of individuals on organisation. Organisational
behaviour helps in building strong relationship by achieving desired goals and objectives.
Company chosen for this report is Hennes & Mauritz AB. It is a multinational company from
Sweden and it is dealing in fashion retail sector. H&M is one of the largest clothing retail
company which is well known for its high quality fast fashion products. This company was
formed in 1947 and founder of H&M company is Erling Persson. This report includes
characteristics of various organisational structures and impact of culture on effectiveness of
organisation. It consists of different leadership behaviours theories as well as work relationship
and interaction theories. This report includes various theory of organisational culture which helps
in developing effectiveness organisation. Apart from this, how motivational theory can improve
employee’s motivation.
TASK 1
Different organisational structures characteristics.
Organisational structure can be describing as a framework which helps in conducting
business activities and functions smoothly. H&M company should have a proper organisational
structures so that company's functions can be proceed in effective and efficient way. There are
several characteristics of different organisational structures and these are mention below. Span of control: It refers to number of employees that can be control by a supervisor
(Burrell and Morgan, 2017). In span of control, supervisor is responsible for controlling
and directing employees who are under them. It is very useful for ensuring proper control
and help in developing a sense of accountability in employees. Departmentalization: It can be defining as a proper structures of organisation which is
composed of different departments as well as managerial position in organisation.
Departmentalization can be referring as a process in which several teams combines
together into functional unites. Departments includes group of employees who are
functioning same type of activities.
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 Centralization: This is an organisational structure where power to take decision is with
upper level authority. Centralization structures helps in increasing consistency in work
processes and top level authority will develop a procedure in which employees will
perform their task.
 Decentralization: In decentralization, decision making authority is also with lower level
of organisation (Carlos, Paula and Dibb, 2014). Decentralization organisational structure
is when employees of middle and lower level have right to make important decision for
the benefits of company.
How the culture of organisation can impact on effectiveness of the organisation.
Organisational culture play a crucial role in influencing working of employees.
Organisational culture plays a crucial role in effectiveness or efficiency of organisation. Culture
of organisation can be describing as a belief, assumptions, values which develop unique
environment within the organisation. It includes organisation's philosophy, expectations,
experiences and so on. These factor can be expressed in members’ self-image, inner working
styles, future expectations as well as interaction with outside world. Organisational culture also
includes vision, mission, working system, values, assumptions, rules, regulations etc. all these
factor will have huge impact on Woking of employees as well as it will affect its effectiveness.
Culture of H&M company will affect its decision making as well as strategies. It is very
important to develop and maintain positive and healthy work culture in organisation as it will
lead in enhance productivity of business. Employees will only work effectively and efficiency
when they consider themselves as a part of organisation. H&M company should focus on
integrating personal goals of employees with organisational objectives. This will lead to
accomplishing organisational and well as personal goals of employees (CHEN and et.al., 2013).
By providing positive and friendly environment to employees, organisation can increase their
productive as well as motivate them. Strong corporate culture of H&M company will indicate
that employees hold similar beliefs and ethical values which will leads to building effective and
powerful team.
What is the learning impact on employees effectiveness.
Learning is a very essential part of organisation as it helps in increase effectiveness of
employees. H&M company should provide training and learning to its worker in order to
enhance their working style. Learning will have huge impact on employee’s performance as
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well as effectively completion of task. Respective company should conduct time to time training
programs so that their employees can develop needs skills and enhance their abilities. Leaning
will influence effectiveness of employees as it will reduce time spent on solving problems, save
time and cost of organisation and so on. Impact on learning on employee’s effectiveness is
mention below: Increasing productivity: Learning new techniques and skills will lead to increasing
productivity of employees (Christina and et.al., 2014). By providing proper training to
employees, company can enhance their capabilities and ability to perform task.
Employees will be more motivated and increase their work efficiency and effectiveness. Save time and cost: This will be very helpful in saving time and cost of organisation.
When employees are well trained and learned new tools or techniques it will leads to
reducing work time that is required to complete task as well as completion of activities in
lesser time duration. Employees will be able to conduct their job role in cost effective
manner.
 Enhance employee’s satisfaction: Learning will also have impact on psychology and
attitude of employees. It will help in enhancing satisfaction in employees and their will
work more enthusiastic by learning new things.
How working in team can improve the effectiveness of employee.
Working in a team is not only helpful for organisation but it will also lead to improve in
employee’s effectiveness. Conducting business activities in a team or group will have major
impact on overall performance of employees. There are various ways which reflect that working
in a team will can improve employee’s effectiveness.
Teamwork helps in learning new skills: Working in a team will help in enhancing skills
as well as learning new things from each other (Coccia, 2015). Teammate learn each other
working style and way of working. By learning new skills employee’s capability and efficiency
will be increase.
Creates healthy competition: It will also lead to creating healthy competition between
employees. While working in a group or team, there is always competition with teammates and
this competition among teammates will leads to improve potential and capabilities of employees.
Each and every employee will work with their full capabilities and efficiency.
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Strong working relationships: By working in a team employee can build strong working
relationship. In a team, teammates help each other and try to solve quarries or problems of other.
This lead to creating strong relationship and satisfaction in employees.
Impact of different leadership behaviours on organisation.
Leadership have huge impact on organisation as it is very important for motivating and
influencing employees towards goals of organisation. Leadership behaviours will help in taking
right decisions as well as enhancing performance of employees (Elsmore, 2017). They give
correct direction and command to their followers so that their needs and wants can be achieved.
Leadership behaviour is very essentials in introducing required changes and helps employees in
dealing with changes. It will leads to enhancing their performance and increasing effectiveness
or efficiency of employees. Leaders play a crucial role in resolving conflicts in better manner and
creating positive work environment in organisation. They will train employees in order to
improve their skills and capabilities. Trained employees will be able to complete task in better
manner as well as increase productivity.
Process and outcomes of changes on effectiveness of employees.
Change is an essential part of organisation and it will have major impact on effectiveness
and efficiency of H&M employees. Process and outcomes of changes can influence employee’s
performance in both negative and positive way. Management is changes is a critical process and
it is very important for overall growth and development of organisation. Impact of process and
outcome of changes on effectiveness of employees is mention below. Develop stress: Changes in organisation will leads to develop stress in employees.
Process of changes as well as its outcomes will have major impact on effectiveness of
employees (Katou, 2015). They will be very stressed and try to resist changes. When
organisation is conducting any changes in organisation it will create stress in employees
and directly affect their performance. Effect on attitude: Changes will have impact on attitude of organisation as when changes
are made in favour of employees they are ready to accept changes whereas when
organisational changes are not in favour of employees they will resist to accept changes.
Attitude of employees will affect in their performance and effectiveness.
 Productivity of employees: It will affect the productivity as employees will not be able to
complete their job role because of changes in organisation. Process and outcome of
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changes will affect overall productivity of employees as they required some time to
understand changes that has been newly implemented.
TASK 2
Evaluate different leadership behaviour theories.
There are different theories of leadership which provide guidelines to leaders and help in
motivating employees of organisations. Behaviour theories of leadership emphasises on the
effective role behaviour of leadership (Kitchin, 2017). Theory of leadership is emphasises on the
premise that behaviour of leader will make them a good leader and favourable behaviour of
leader will lead to provide greater satisfaction to their behaviours. This theory focuses on
activities of leader in order to identify patterns of their behaviour. There are two important
behavioural theories are Michigan University and Ohio State University.
Michigan University
This is a theory of leadership which is developed to identify which style of leader
behaviour will result in higher performance of employees. It was commenced at University of
Michigan in 1950s. This theory is developed with the motive of evaluating and identity various
types of leadership which will leads to enhance job satisfaction in employees. This theory
leadership is supported on two distinct styles of leadership which is job centered leadership and
employee centered leadership.
Ohio state University
Research at Ohio state university has conducted this study of leadership and the aim of
developing this theory is to study major dimensions of leadership. This behaviour leadership
theory is has two distinct groupings of behaviours. These groups are initiating structure and
consideration.
Analyse theories relating to work relationships and interactions
It is very important for employees to develop a strong and effective relationship within
organisation as well as correctly interact (Lee and Lawrence, 2013). There are various theories
which will help H&M company to develop a strong workplace relationship and interaction.
These theories are mention below.
Social Exchange theory: Theory of social exchange is developed with the aim thorugh
which social behaviour can be consider as a result of exchange process. Social exchange theory
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is developed with the motive of maximizing benefits as well as minimising costs. This theory
provide a study of social behaviour while interaction of two parties. This interaction will
implement a cost benefits analysis in order to determine risk and benefits.
Uncertainty Reduction theory: Theory of uncertainty reduction is formed by Charles R.
Berger and Richard J. Calabrese. Uncertainty reduction theory is developed with the motive of
explaining relationship between individuals who are not known to each other (Mclaggan, Botha
and Bezuidenhout, 2013). This theory includes three stages through which individual go through
in order to reduce level of uncertainty in relationships. Entry stage: In this stage two individuals attempt to knowing another person and they
found basic detail about other individual. Personal stage: At this stage individuals are no long stranger to each other and they try to
find out more information about each other such as their attitude, beliefs and so on.
 Exit stage: This is the last phase and in this phase people move out of their relationship.
They exit their relationship in search of more compatible partner.
Relevance of organisational culture theory in developing organisational effectiveness.
Organisation culture refers to values, idea, ethics, perception, behaviour, preferences etc.
within an organisation. All these factor are responsible for developing organisational culture. It
includes values as well as unwritten rules and regulation of organisation which have impact on
performance of employees. Theory of organisational culture was developed in 1980 by Edgar
Schein who was an American management professor. As per Edgar Schein, organisation have
two different mechanisms such as direct and indirect (Norton, Zacher and Ashkanasy, 2014).
Model of organisational culture have direct influence on the direct mechanisms such as belief,
status, action, appointments, behaviour and so on. The model of organisational culture is divided
into three different levels.
Artefacts and symbols: It includes all those elements which are visible in organisation
such as logo, structure, processes, architecture etc.
Espoused values: This consist of values, rule of conduct as well as philosophies,
objectives and strategies of organisation.
Basic underlying assumptions: It is deeply integrated with organisational culture and
unconscious behaviour.
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TASK 3
(Covered in PPT)
CONCLUSION
Through the above study of the topic it has been understood that positive behaviour of
employees is very significant for attaining set objectives and targets of organisation. There are
various theories which can be used by organisation as per the requirement of employees and
organisation goals. These theories are essential for providing guidelines and framework to
leaders and managers. Employees should develop strong relationship in workplace as well as
there should be positive working environment so that employees can focus on their work. This
will leads to completion of task and job role in effective and efficient manner.
REFERENCES
Books and Journals
Bakotić, D., 2016. Relationship between job satisfaction and organisational performance.
Economic research-Ekonomska istraživanja. 29(1). pp.118-130.
Burrell, G. and Morgan, G., 2017. Sociological paradigms and organisational analysis:
Elements of the sociology of corporate life. Routledge.
Carlos Pinho, J., Paula Rodrigues, A. and Dibb, S., 2014. The role of corporate culture, market
orientation and organisational commitment in organisational performance: the case of
non-profit organisations. Journal of Management Development. 33(4). pp.374-398.
CHEN, S.H. and et.al., 2013. Organisational support, organisational identification and
organisational citizenship behaviour among male nurses. Journal of Nursing
Management. 21(8). pp.1072-1082.
Christina, S. and et.al., 2014. How organisational behaviour and attitudes can impact building
energy use in the UK retail environment: a theoretical framework. Architectural
Engineering and Design Management. 10(1-2). pp.164-179.
Coccia, M., 2015. Structure and organisational behaviour of public research institutions under
unstable growth of human resources. Coccia, M.(2014)‘Structure and organisational
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behaviour of public research institutions under unstable growth of human resources’,
Int. J. Services Technology and Management. 20(4/5). p.6.
Elsmore, P., 2017. Organisational Culture: Organisational Change?: Organisational Change?.
Routledge.
Katou, A.A., 2015. Transformational leadership and organisational performance: Three serially
mediating mechanisms. Employee Relations. 37(3). pp.329-353.
Kitchin, D., 2017. An introduction to organisational behaviour for managers and engineers: A
group and multicultural approach. Routledge.
Lee, R. and Lawrence, P., 2013. Organizational Behaviour (RLE: Organizations): Politics at
Work. Routledge.
Mclaggan, E., Botha, C.T. and Bezuidenhout, A., 2013. Leadership style and organisational
commitment in the mining industry in Mpumalanga. SA Journal of Human Resource
Management. 11(1). pp.1-9.
Norton, T.A., Zacher, H. and Ashkanasy, N.M., 2014. Organisational sustainability policies and
employee green behaviour: The mediating role of work climate perceptions. Journal of
Environmental Psychology. 38. pp.49-54.
Pavalache-Ilie, M., 2014. Organizational citizenship behaviour, work satisfaction and employees’
personality. Procedia-Social and Behavioral Sciences. 127. pp.489-493.
Weng, R.H. and et.al., 2015. Exploring the impact of transformational leadership on nurse
innovation behaviour: A cross‐sectional study. Journal of Nursing Management. 23(4).
pp.427-439.
Wood, J. and et.al., 2013. Organisational behaviour: Core concepts and applications. John
Wiley & Sons.
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