Comparative Analysis of Organizational Behavior: ASDA & BA Report

This report provides a comparative analysis of the organizational behavior of ASDA and British Airways. It begins by examining their organizational structures and cultures, highlighting the differences between ASDA's hierarchical structure and British Airways' flatter structure. The report then investigates the impact of these structures and cultures on employee performance and individual behavior. It compares the leadership styles of the CEOs of both companies, contrasting ASDA's autocratic approach with British Airways' participative style. The report also explores the organizational theories and management approaches employed by each company, focusing on the application of Henry Fayol's administrative theory by ASDA. Furthermore, the report delves into the impact of different leadership styles on employee motivation, comparing motivational theories and evaluating the usefulness of Herzberg's theory for ASDA's managers. Finally, it analyzes the nature of group behavior within ASDA, the factors influencing effective teamwork, and the impact of technology on team functioning. The report concludes with a summary of the key findings and recommendations for enhancing organizational effectiveness.

ORGANIZATIONAL
BEHAVIOUR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Organizational structure and culture of ASDA as compared to British Airways.............1
1.2 Impact of ASDA's structure and culture on performance................................................2
1.3 Factor's influencing the individual behavior of employee's in ASDA.............................2
TASK 2............................................................................................................................................3
2.1 Comparison of the leadership styles used by the CEO of ASDA and British Airways...3
2.2 Organizational theory practiced by ASDA and its effectiveness on management...........4
2.3 Management approaches used by Asda and British Airways..........................................5
TASK 3............................................................................................................................................6
3.1 Impact of different leadership styles on the motivation of employees in ASDA.............6
3.2 Comparing the application of motivational theories to Asda’s employees......................7
3.3 Evaluating the usefulness of Herzberg’s motivation theory to the managers of Asda.....8
TASK 4............................................................................................................................................9
4.1 Nature of groups and group behavior of Asda.................................................................9
4.2 Factors impacting the development of effective teamwork in the employees of Asda..10
4.3 Impact of technology on team functioning.....................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Organizations are the set of individuals working together to accomplish the desired set of
tasks. The behavior of the each employee of each department decides and defines the structure of
organizational behavior. The contribution of an employee towards organizational efficiency is
decided by the way of their interaction and social behavior with others at their workplace
(Wagner and Hollenbeck, 2014). The effective leadership of a manager at every level of
management is also important in terms of understanding the goals and strategies of the
organization and implying them into the management structure. The study of report is based on
two different companies, British Airways and Asda plc. It explains about the various functions
and actions taken by them in their regular business operations in order to attain a higher level of
efficiency in their organization behavior and working.
TASK 1
1.1 Organizational structure and culture of ASDA as compared to British Airways
Organizational structure is a hierarchical constitution towards the achievement of
organizational goals and objectives. It defines the allocation of task and responsibility to the
authorized person of the firm to direct and coordinate the aims. However, organizational culture
is a process of sharing the organization's values and beliefs. It is to determine the employee's
behavior in the firm. Both ASDA and British Airways are among st the leading companies and
carrying a formal organizational structure with certain terms and conditions, that are strictly
needed to be followed by their employee's.
ASDA believes in a tradition of hierarchical organizational structure in which a number
of people are reporting to a single manager or supervisor. It has low span of control, covering a
wide range of area. It consists of a tall structure, ensuring an effective command. Contradictory
to that, British Airways follows a flat structure of the organization where there are comparatively
fewer layers of management or sometimes only a single layer with wide span of control (Du and
et.al., 2013). With the help of these features, it has an advantage of maintaining a clear and
effective communication.
Organizational culture has a direct effect on the behavior of its workers. Therefore,
ASDA has an affluent philosophy towards work, which believes in maintaining a task culture.
Considering their stakeholders as the backbone of the company, it truly focuses on empowering
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their employees by working in groups or team and provides an excellent service to their
customers with a unique and great experience. In contrast to that, BA strictly follows its rules
and regulation (Monzani, Ripoll and Peiró, 2015). They believe into a fair dealing with its
employees and the customers by maintaining a high standard of regularly updating their base and
effectively meeting their needs and demand.
1.2 Impact of ASDA's structure and culture on performance
Both organizational structure and culture are the conceptual framework to govern any
firm or company. It together creates a high impact on the members working in the organization
by controlling their actions or behavior.
Therefore, with reference to the “Organizational Structure of ASDA”, If the CEO of
ASDA is dissatisfied with the production of its manpower, then he is supposed to look back at its
organizational structure to consider few required changes in it. It is due to the fact which
determines the surrounding as a main factor of people's behavior. Secondly, ASDA has a strong
set of belief to empower its employees, which is another effective tool to enhance the
performance of its employees. They generally delegate their low level managers to ensure a
greater customer satisfaction. It in turn, enables the employees to maintain a friendly work
environment in the organization, which helps them to build a better and effective communication
with the customers by resolving their issues and concerns (Abualrub and Alghamdi, 2012).
“Organizational culture” too has an equivalent relationship with the performance of its
employees. A strong culture of an organization ensures a high performance, whereas a weak
culture deals with low level of performances. Therefore, ASDA is liable to maintain a very
strong and effective service based culture to beat the high level of competition in the area of
customer management. Secondly, ASDA's culture also defines the work efficiency of its
employees, contributing to the timely achievement of task. It too helps in building a flexible
work environment, that itself enable the employees to accept the need of diversification in work.
For being successful in task, carrying an adaptive nature is of utmost importance (DuBrin, 2013).
It is required to face the rapid market changes, which together affect the customer's demands.
1.3 Factor's influencing the individual behavior of employee's in ASDA
In ASDA, the employees are considered as their business assets and are highly trusted as
the internal stakeholders of the firm, with an equal respect and importance. However, the
employees are the people who work for predestine pay and an equal number of benefits from the
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organization. Therefore, there are numerous factors affecting the behavior of the employee's,
which are stated below- Esteem and recognition- ASDA has a high value for its employee's and thus treat its
employees with adequate esteem and regard. Each employee in the stated firm works
with technicality in their concerned areas and no one else knows their work better than
themselves. As a result, the employees in ASDA not only work for earning money
(Pinder, 2014). An admiring environment and self respect is another major concerns for
them. Rewards or other benefits- The employees in the stated firm are well paid. Rewarding
them with other benefits is a part of motivating the employees. It together values their
dedicated performance and efforts to take the business in a progressive path. Job security- Being secured with the job is a foremost factor for an employee to work
efficiently and with a peace in mind. Therefore, the stated firm too ensures a high level of
job security to its employee's that directly clearly defines a lesser chance of getting
unemployed (Aydin, Sarier and Uysal, 2013). It together helps the employees in working
more promptly.
 Work culture- It refers to the working environment of a company, where ASDA regular
seeks out a healthy job surrounding for its employees. It further helps to build more
confidence in its employees and they work harder to timely achieve the organizational
goals and objectives. It involves together celebrating the occasions and organizing
various fun activities for the employees at their workplace.
TASK 2
2.1 Comparison of the leadership styles used by the CEO of ASDA and British Airways
Leadership is the sovereignty of directing people with appropriate actions by effectively
recognizing the present situation. Different people with varied nature prefer to adapt various
styles of supervision.
Andy Clarke, who is the CEO of ASDA, believes in adopting an “autocratic style” of
leadership into the organization. Due to which, ASDA allows its managers to make most of the
decisions for its customers without any involvement of others. It allows the managers to closely
judge and supervise their customers by determining their need and demands. It has proven
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beneficial for the company, where they are now having more number of satisfying customers
into their account (Hogg and Terry, 2014). It is hard to challenge an autocratic leader, where they
focus more on the hidden things. Some focal points of Andy Clarke are-
 Providing equal growth opportunity to all the employee's by considering their
performances.
 Hiring solicitous and affectionate managers for the team, who feels pride to effectively
lead and work in a group.
 A recognized culture with great approbation for all the levels of employee.
Keith Williams, as the CEO of BA focuses on “participative style” of leadership, which is
too often known as the democratic style. It values the involvement of all the team members at the
time of decision making, but the final decision is in the leader's hand. It helps to boost
confidence of employees by together enhancing their knowledge in varied areas (Altindag,
Cengiz and Öngel, 2014). Participative leaders conduct such sessions to develop a vision of their
employees, which always result in the formation of better and numerous ideas. It together results
to build an effective plan for the organization and its success. The prime focus area of Keith
William are-
 For company's amelioration, inspiring the employees to settle or bargain their own heed.
 Building acknowledgment for the value of firm's ambition.
2.2 Organizational theory practiced by ASDA and its effectiveness on management
Organizational theories are made to effectively determine the organization and its
structure. It defines the formation of the organization by together specifying its different types or
levels. The overall activity of the firm is influenced by its organizational theory. Thus, choosing
an effective theory is of utmost importance. Holding the concept of a formal organization, ASDA
follows the administrative theory of Henry Fayol. It is established on the principle of dynamic
management. It involves certain management principles which directly relates to task
accomplishment (Cruz and Rincon, 2012). Believing in the concept of line and staff, it is
composed of various management functions which include planning, organizing, directing,
staffing, and controlling. These functions further consist of various management tasks, which
includes-
 Dividing work among the employees which increases both technical and managerial
productivity.
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 Assigning a specialized authority increases the responsibility of that person to accomplish
the task on time.
 Hiring disciplined members for the organization who adhere to company's rules and
regulations by together honoring their work.
 Unity of command that states to accept orders from a single supervisor and being
responsible to only that person (Huarng and Ribeiro-Soriano, 2014).
 Unity of direction means to work together in groups, by seeking each others help and
support.
 Timely honorarium to the personnel's to motivate them for better performance.
 Stability of tenure, which ensures job security to the employees.
 Fairness and equal justice in the organization provides encouragement to the employees
to take initiative in work.
 The last but foremost step lies in the concept of Esprit de corps, which states that “The
strength is always in being united”. It provides a sense of belongingness to the workers
which further helps to enhance their performance leading towards an increasing
productivity of the firm (Phegan, 2013).
Thus, it has been proven that the effectiveness of management is purely based on these
organizational theories.
2.3 Management approaches used by Asda and British Airways
Different company uses different theories of management, which is fully dependent on its
organizational structure and formation. Focusing upon the administrative theory of Henry Fayol,
ASDA is following the classical approach of management. It has a functional organizational
structure that believes in maintaining effective relationship with its employees. They trust their
employees and truly believes that whatever the employees will do, they will make it best out of
it. As a result of which, ASDA pursues an active listening combined with its passive
management approach. Thus building the capacity of its employees by providing a cultivating
work environment to them (Arnold and et.al., 2015). It helps employees to build a clear
understanding of their organizational goals and objectives to perform at their best. Therefore, the
key aspects of ASDA are-
 Identifying the area of concern and specifying solutions of it.
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 Work collaboration is of utmost importance, where the people tends to work in groups or
team together focusing upon the needs.
However, being a divisional organizational structure, BA focuses on applying more of a
steering approach towards the management by hovering a control over them. They give more
importance to the maintenance of quality in its each and every department. It emphasis on
training the employees to know their best about the procedures of the company and successfully
qualify over the organizational targets. The key points of BA are as follows-
 A clear description of plans and objectives to the staff (Killen and et.al., 2012).
 Specific task evaluations with proper correction and report.
 Strict assessment of the actual task done and further comparing it to the required
standard.
TASK 3
3.1 Impact of different leadership styles on the motivation of employees in ASDA
Leadership has a major role in motivating the employees of the organization. ASDA
plays a role in autocratic styles of leadership. However, it could be now step forward towards the
democratic or participative style. It is the most effective approach when the company is required
to make a decision at short time period. It gives more authority to the leaders as the power of
making a final decision goes into their hands (Miner, 2015). Various approaches of ASDA
leaders, and there effects on employee motivation are as follows-
 At times, when certain changes takes place into the organization, the leaders can make
decisions on their own and direct the staff to follow the same. This approach might make
the employees feel a bit neglected.
 Contrary to that, if the leader follows a consultative approach by involving the staff into
the process of decision making, by creating awareness about the organizational change
taking place (Clarke, 2013). As a result to it, the employees will feel valued and
motivated towards the organizational goals.
 Already working on the concept of teamwork is the best approach for the ASDA leaders.
This particular outlook encourages the team members to take responsibility of their work
by accomplishing the task on time.
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These approaches works on all leadership styles, if the leader is composed of the required
qualities, which includes-
 Being passionate towards the work.
 Encouraging employee's to work coherently and participate in organizational activities.
 Effective communication skill to clearly state the organizational goals to the employees
(Pierro and et.al., 2013).
 Strong convincing power to make the employee’s understands the importance of adapting
the organizational change.
3.2 Comparing the application of motivational theories to Asda’s employees
As per Maslow's Hierarchy of Needs, the management of Asda is responsible to provide
basic needs of life to all their employees, which are food, clothing and shelter. This would help
them in motivating their employees for effective working in return of fulfilling the basic needs.
Along with this, the employees should also provide with safety requirements during their
working hours. Asda need to make the employee laws by keeping the viewpoint of protecting the
employees' requirement. However, the higher level management of Asda could provide job
security to the effective employees by the use of life insurance cover that would stimulate and
encourage the employee to stay close to the company (Greenberg and Colquitt, 2013). Moreover,
advanced technology of Asda could be used so that employees could feel and kept safer from any
injuries. The need of employees recognition and respect for their hard work could be used as
motivation for others employees to perform well in their business activities. These all needs
would develop the personal growth among all the employees of Asda which would contribute
towards their objectives (Canina, Palacios and Devece, 2012).
By comparing this to Vroom theory of motivation which states that the employees of
Asda are motivated only when they see that their efforts are getting converted into desired
rewards. This expectancy theory consists of three factors. First, the management should be aware
of types of rewards that increase the employees' motivation. Second, management should be
aware of expectation of each employee which differs from person to person. Third, management
should assure the employee that their efforts will result in better rewards.
3.3 Evaluating the usefulness of Herzberg’s motivation theory to the managers of Asda
To evaluate the understanding and usefulness of the motivation, the organization has to study the
market and its premises for determining environment. By the use of Herzberg’s motivation
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theory, the management would ascertain the factors that cause satisfaction or dissatisfaction to
the managers of Asda. It describes about the factors which are causes of job satisfaction which
motivates the employees and reasons for job dissatisfaction (Chand, 2015). The factors affecting
employee’s job attitude and motivation are:
Hygiene Factors that cause job dissatisfaction -
◦ Working condition – The Asda's working environment for managers can de-motivate
their working performance and its effectiveness.
◦ Salary – The discrimination and negotiation in salary can be the cause for the de-
motivation of employees. Discrimination in pay scale of male and female workers
employed with equal level of work in the company causes dissatisfaction among
them.
◦ Company policy – The policy framework of Asda could decrease the motivation level
of the employees. The regulation framework created by the employee retirement
scheme and working hours policies are the major factors which demotivates the
managers' effectiveness to operate their working activities (Loots and Grobler, 2014).
Motivation factors which encourages job satisfaction -
◦ Growth – Asda could generate the training process to develop the managers. The
advancement by attaining professional techniques for effective working would
increase their abilities and organization's productivity.
◦ Responsibility – By providing authority to the managers to take decision at the time
of doing task during the absence of leader or head supervisor, could help in increasing
the job satisfaction. It would also encourage the managers' ability to guide the other
new employees to perform the job (Ghaffarzadegan and Andersen, 2012).
◦ Recognition – Asda could use the method of providing respect and recognition at
their work in order to motivate the managers.
TASK 4
4.1 Nature of groups and group behavior of Asda
In an organization, a group is described as a collection of individuals working under a
same section or department of the management. Further, the meaning of group was characterized
as a unit of people in an organization having similar point of view or related personal objectives.
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However, groups are divided in two types as per their nature, behavior and characterization, and
formal and informal groups (Mansouri and Rowney, 2014). The main variation among both the
types of groups is their official sense of formation and their typical principle functions. Formal groups and their behavior – The members of formal groups are committed to
some defined set of values and structures of overall functions to be performed by them. In
Asda, there are many formal groups at each and every level of management and
production department. They are responsible to accumulate and generate resources
necessary for completing their assigned tasks. In Asda, formal groups are working as
their role structure for developing a sufficient level of morale for their assigned projects.
The head members of the groups are having enough control by their leadership powers to
coordinate specific roles to their subordinates to utilize the available resources (Rooke
and Torbert, 2005). It improves productivity and quality of the employees' ability and
working capabilities.
 Informal groups and their behavior –These groups are different from the official groups
of the organization, from the objectives and formation viewpoint They are the groups
which are formed by the employees working in an organization. Informal groups are
generally made through employees' behavior, nature, thinking, social liking, etc. In Asda,
informal groups are less permanent and formed through interpersonal relationship with
no leaders (Greenberg, 2013). The members of such groups in Asda are more focused on
their personal goals.
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4.2 Factors impacting the development of effective teamwork in the employees of Asda
The success or failure of a group depends on some factors that affect the working and
behavior of the group members. The main factors affecting the group behavior are:
 Group processes
 Group structure
 Group resources
They are further defined and separated as: Group processes – The function of decision making for a group is superior than any other
function. In the decision making process, group generates information for various
alternatives from the available knowledge which further helps in making effective
solution and legitimacy (Mansouri and Rowney, 2014). In Asda, the power of decision
making in groups are benefited, but it takes long time and dominates subordinates from
participating in the group. The group leaders and members are pressurized to obey the
decisions made by the group head. It also affects the communication level of Asda as it
gives rise to management conflict and inefficient leadership.
 Group Structure – It refers to the factors that are essential for building group and defining
its structure. The factors shaping the group structure are:
◦ Group Size and roles – The number of members in a group decides their working
capacity as a team. The size of the group helps in maintaining communication level
among the members. In Asda, size of groups is maintained by the management which
assists them in deciding roles and responsibilities of the team units and balancing the
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Illustration 1: Types of groups