Organisational Behaviour Report: Influence of Culture and Power

This report delves into the realm of organisational behaviour, specifically examining the impact of culture, power dynamics, and politics on individual and team performance within AM (Holdings) Limited. The analysis explores how these factors influence employee productivity and the overall success of the organisation. Furthermore, the report evaluates various process theories of motivation, such as Maslow's Hierarchy of Needs and Vroom's Expectancy Theory, and discusses how these motivational techniques can be applied to effectively achieve organisational goals. The report also highlights the key elements of building effective teams, contrasting them with the characteristics of ineffective teams. Finally, it explores the practical application of organisational behaviour concepts and philosophies to enhance overall performance and foster a positive work environment. The report emphasizes the importance of cultural awareness, the impact of technology, and the different types of power within an organisation.

ORGANISATIONAL
BEHAVIOUR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1. Analysing the influence of organisation's culture, politics and power on individual and
team performance...................................................................................................................1
LO2. Evaluating the process theories of motivation and motivational techniques enables
effective achievement of organisational goals.......................................................................3
LO3. Explaining the needs to make an effective team as opposed to an ineffective team. . .7
LO4. Applying concepts and philosophies of organisational behaviour in organisation.....10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Organizational behavior (OB) is regarded as study of people interact in a groups which
can help an organization to understand their employee better. This will help in enhancing their
overall performance. It will also assist in managing the management of firm as well. Present
report will focus on AM (Holdings) Limited functions as a holding company. The Company,
with its manufactures subsidiaries, and supplies confectionery foil and polyester film. This study
will analyse influence of company's politics, culture as well as power on individual and team
performance for organization along with evaluation of process theories of motivation and
motivational techniques that helps in enabling effective achievement of organisational goals.
This will also discuss about the needs which can be very helpful in making an effective team and
applying various concepts and philosophies of organisational behaviour in organisation to
enhance their overall performance.
LO1. Analysing the influence of firm's politics culture and power on a person and team
performance
Organisational culture includes a company's expectations, experiences, philosophy and
the values that guide member’s behaviour. Which expressed as personal beliefs, inner-working
and the interaction with other world as well as future expectations. Culture is all based on
attitude, customs and rules that are developed with time in an organisation. Culture of a company
also includes vision, mission, norms and values. In business environment, company's culture
contributes in its success because of its uniqueness and as it cannot be transferred to competitors
(Miner, 2015).
The organisational culture is very important in a company as it can affect both work life
and personal lives of employees. This cultures are determining factors in the successes of
organisations. Following are some factors which explores success of organisation:
 Organisational culture helps in building brand identity, business society will help in
defining the company's values and goals. This will help HR manager to create a good
environment for their employees to work. It will also help in showing their employees as
well as to the customer the vision and mission and the importance of the company's
performance.
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 Corporate culture will help in increasing loyalty among employees, they should enjoy
working in organisation. For the HR manager of A.M (Holdings) Limited, it is very
essential to maintain this corporate culture effectively. The culture gives employees in
driving goals for company and will always ready to take challenges for their jobs. Good
cultural atmosphere will help in increasing productivity of their organization.
Organisational culture helps in enhancing high productivity of employees. Higher rate of their
staff member's productivity it will lead to the customer satisfaction. As strong culture leads to
boost performance and it will increase reputation and brand image of company (Organizational
Behaviour, 2015).
Impact of organisational culture, power and politics on employee’s performance:
The role of power and politics in organisation is very important. It includes the control of
decision making to employees interacting with each other in workplace. The influence of power
can be negative or positive which will depend on the culture of organisation. Politics in
organisation is directly connected with the employees who have power in organisation. Power
and politics will determine the overall culture of the workplace and impact on the employee
productivity.
Importance of cultural difference awareness: This plays an important role in any organization
as it can affect their performance to a large extent. Making aware their employees about different
culture will be very useful in enhancing their working.
Rise of globalisation and digital technology: This has a huge impact on organizational
workforce as having latest and effective technology is very helpful for them in improving their
services. This will also influence on shaping organizational culture effectively.
Homestead’s five dimension of culture:
This theory is very effective in improving the individual and team work. It helps in
defining the cross cultural communication within an organisation. It is an effective tool to
analyse the cross-cultural relation which helps in understanding the difference in behaviour. This
theory defines the five different dimensions in which the culture in an organisation varies as
according to power distance uncertainty avoidance, individualism-collectivism, masculinity-
felicity and long term short term orientation.
There are different types of power in an organisation:
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Coercive power: In this power one uses the threat to make people do what they want then to do.
Reward power: in this power the rewards system are uses to take out work from employees.
Legitimate power: in this power a person from official position will held by someone.
Expert power: this kind of power is owned by person which owns genesis to the skills and
expertise possessed by them.
Referent power: this type of power is held by celebrity who has large number of followers.
Influence of power on employees and teamwork:
Positive power: in an organisation positive power can encourage the productivity and
team work. It will include giving power to employees in making decisions, rewarding employees
for their good performances and appointing other employees who can perform the task better.
Positive power helps in building confidence in employees and motivates them to put their efforts
and work hard. Giving power to employees in expressing their views ans concern to work
together in team will help in creating high employee retention in organisation.
Negative power: If the senior level employees in the organisation do not treat their
employees properly, they are using their power in negative way. These type of leaders motivates
their employees by threatening them by either job loss, or punishment or deduction from their
salary. Some employer or leaders also be biased to some employees which creates negativity in
workplace (Luthans, Luthans and Luthans, 2015). t will not only affect the productivity of
employees but also will affect the quality of work produced in organisation. Having a leader in a
team who misuse his power will affect the overall task of their team.
Influence of politics on employee and workplace:
Positive politics in workplace: employees who learn to plan the use of politics in
organisation are more productive than those who left out to learn it. An organisation should
create a political culture to increase productivity in the organisation. An effective policies and
commands from leaders will make it easy for employees to clear their problems and increase
their efforts to do more qualities works. A workplace which provides equal treatments will
prevent any conflicts between team members and employees and will increase the overall
productivity of organisation (Organizational Behaviour, 2015).
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Negative politics in workplace: A workplace with full politics and conflicts between
employees will suffer in productivity at the end. If employees of a company are indulged in
unethical or dishonest behaviour to get a head and biased rating of employees will affect the
quality of works. An organisation will ultimately suffer from decreasing in productivity.
LO2. Evaluating the process theories of motivation and motivational techniques enables
effective achievement of organisational goals
Motivation is a psychological term which means that it cannot be forced on employees
and it will automatically come from the employee's willingness, to do work. There are different
types of theories, i.e., extrinsic and intrinsic motivation, content theories based on their
characteristics etc. Intrinsic motivational theories are those which rises from internal factors
whereas, extrinsic theory arising from external component. Intrinsic type of motivation is self-
desire to achieve and to examine ability of individual to obtain knowledge. Motivation that
depends on internal element is called intrinsic and other that depends on external factors is called
extrinsic motivation (Motivation theories, 2016).
There are various different theories of motivation which can be applied in the
organization for the improvement of their performance. Such theories are content theories and
process theories. These theories are explained below in detail which A M (Holdings) Limited can
apply:
 Maslow's Hierarchy of Needs:
Abraham Maslow discovered this motivational theory of needs This theory states
that human beings have hierarchy of needs consisting of psychological, security, belongingness,
esteem and self-actualization needs. This theory is in a pyramid form.
A M (Holdings) Limited can apply the Hierarchy theories of motivation to motivate its
employees and to increase their productivity in order to achieve organisational goals.
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Illustration 1: Maslow's Hierarchy need.
(Source: Theories of Motivation,2018)
This theory is divided in five stages started from bottom to top. The five stages of
hierarchy of needs are as follows:
Physiological Needs: Physiological needs are the basic requirement of an individual for survival
and maintenance of life, for example, food, shelter, clothing, etc. Maslow regarded physiological
needs as the most important and other needs becomes secondary until these needs are met. The
HR managers of A M (Holdings) Limited can satisfy these needs by giving salary at times and
monetary incentives are offered by the employers (Wagner and Hollenbeck, 2014).
Safety and security needs: These are the needs which needs to make them feel safe and secure in
working place. These needs are security from illness, accident, future safety etc. which can be
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achieved by offering job security, safe and hygiene work environment, retirement benefit to
retain them. Organization and HR can provide these offering sto their employees to make them
feel safe.
Social needs association or Belonging Needs: This is the third most important needs which has
to be fulfilled very carefully by the organization. To fulfil these needs, HR manager should
prefer team-work, arrange formal and informal get together of employees so that they can
develop social relationship.
Esteem Needs: This also has a huge impact on an individual. This can include, esteem for
oneself, i.e., dignity, achievement and the desire for a reputation or respect from others, i.e.,
status, prestige. HR manager can fulfil these need by appreciate and reward the employees on
accomplishment of their task or target. They can also give the deserved employee higher job
rank/position in the organisation.
Self-Actualisation Needs: This need helps in evaluating the self-quality by realizing personal
potential, self-confidence, etc. HR manager of company can fulfil this needs by giving the
employees challenging jobs in which the employee's skill and competencies are fully utilized.
Vroom's expectancy theory separates efforts that arises from motivation, performance
and outcomes (Gelfand, and et.al., 2017).
 Vroom Expectancy motivation theory:
Expectancy theory states that an employee can be motivated to perform better and
will lead to good performance appraisal. This will also help in realization of their personal goals
in the form of some rewards which can help in self-motivation. This theory stated that employees
get motivated by the attractiveness of their efforts, or from their expected return in their work.
An employee's motivation to reach a desired outcome is determined by three components,
Expectancy, Instrumentality and valence.
Expectancy: Expectancy known to be a belief that enhanced effort will lead to their employee's
increased performance, for example, if they work harder than this will be better for them in
achieving higher wages in return. This can be affected by various factors, such as:
 Having appropriate resources available (e.g. raw materials, time)
 Having the skills for doing the job
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 Having essential support to get the job done (e.g. supervisor support, or correct
information on the job)
HR manager of company must discover what employees value and beliefs are regarding
job, and should know resources, training or supervision employee need.
Instrumentality: Instrumentality is defined as a concept which conclude that employee performs
well in an organization in order to get a valued outcome, for example, if an employee does a
good job, there is something which he can get in return (Carpenter, Berry and Houston, 2014).
HR manager of company must ensure that employee must get the reward which they have
promises to employees.
Valence: it is the value or importance that an individual hold with respect to outcomes.
Management must identify their employee’s needs and preferences as per their requirements
This theory is very useful for A M (Holdings) Limited's managers to understand the work
behaviour. Managers need to link rewards to set performances standards and employees are
motivated to achieve those outcomes they desire. Personal aim need to be established in
employees which ultimately leads to the organisational goals and objectives.
LO3. Explaining the needs to make an effective team as opposed to an ineffective team
For HR organising their employee in a team will be an effective way to create a common
goal between them. Effective team leads to increased employee motivation and business
productivity. As considered to the organisational culture, A M (Holdings) Limited should start
team building which will help in creating unity in workplace. Building an effective team requires
more than an abstract commitment to work, it requires encouragement and motivation from
leaders or managers.
For HR manager of A M (Holdings) Limited, it is mandatory to increase the productivity
of the employee by encouraging and motivating them. This will help in achieving their targets
and goals (Miner, 2015).
Following are the steps which is needed by the HR manager of A M (Holdings) Limited
to make an effective team:
 Establishing leadership: HR manager should possess leadership quality, to control
manage and organize its team member and take out best from them. If employee will trust
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the decision of manager, they will work effectively even in the absence of manager.
Before start developing a team, a right leadership skill should be developed in manager.
HR manager should always try to encourage the trust and working of employees through
honesty and transparency.
 Establishing relationship with each of the employees: HR manager of A M (Holdings)
Limited, should know about each member of his team, their skills, how they could be
motivated, their personal goals, likes and dislikes. This knowledge is important for
manager to assign the jobs to each team member according to their skills and also to
ascertain their specific problems. These things will help HR manager to increase their
productivity and job satisfaction. Involving employees in decision making process, assign
them open ended projects will help manager to encourage team members to corporate and
develop problem solving skills.
 Building relationship between the employees: managers should always try to keep the
team member united. It can be done through make them communicate, corporate and
trust each other. It will help the HR manager to resolve any conflict if may arise between
the employees. HR should always try to make positive environment in a team (Podsakoff,
Mackenzie and Podsakoff, 2016).
 Stimulate team work: After establishing mutual understanding with team and within
team, make them to work effectively together. Encourage the team to share information
with other team member and in wider organisation. HR manager should always try to
communicate more with the team. Communication is foremost important thing to make
an effective team. Starting open suggestions and concerns, get reviewed of each team
member works. It will help the employees to feel free in communicating to manger about
their problems and concerns.
 Setting ground rules for team: in this stage, certain norms and values of team will be
made. Every team member should follow these norms in order to achieve organisational
goal as well as evaluating team performance.
Building an effective team is one of the most important responsibility of a manager.
Encouraging their employee by creating a healthy company culture and laying the groundwork
through leadership and policies will help HR in enhancing their performance. There are some
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factors which helps in contributing in effective team. Like communication between employees
and with the management of company. Clear objectives which each team member must know
what they are trying to achieve. Goodwill and fair pay, each team member must feel connected
and ensure that they are valued and treated fairly.
Successful business team possess some characteristics that drive efficiency and
communication while maximizing productivity. Any inefficiency in team will lead to make the
team ineffective. Which can hamper the productivity of employees and effect achieving
organisational goals. There certain causes of effectiveness in team structure that would help in
getting team working together. The factors of ineffective team are as follows:
 Team focus: This is the main factor which has to be carefully managed by the HR
manager of A M (Holdings) Limited. When there is no purpose in team, they will suffer
from ineffectiveness. Setting an overall goal is not enough. It is important to set their
goals effectively which can be given to each member of team. When any employee fails
to understand how to reach the goals, that's where inefficiency starts. Every member must
know his task and understand how to perform it. Ineffective unit will lead to hamper the
efficiency and work ethics, resulting in affecting overall productivity of team.
 Inequality membership: When there are certain people in unit with good
communication skills and are more qualified than others, overlooked team members may
develop feelings of hatred towards rest of the group. It is important for HR manager to
supervise if any problem arises in the team, to discuss and resolve it to satisfaction of all
members. It is essential that all team members contribute equally. As no one has any
superiority in team (Lazaroiu, 2015).
 Errors and negativity: Finger-pointing is known to be a characteristic of an ineffective
team. When members of the team started pointing out the mistakes or errors of other team
members, rather than learning from many setbacks and moving forward accordingly. It
creates an atmosphere of negativity between team members and managers and ultimately
with goals. Self-evaluation is important for allowing members to correct any mistakes
before having a chance to develop into something larger and more damaging for group.
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LO4. Applying concepts and philosophies of organisational behaviour in organisation
Organisational group is the study of human behaviour within the organisation. It studies
how people interact with each other in an organisation, it applies in an organisation in order to
create more efficient business organization (Five models of Organisational Behaviour, 2017).
The organisation behaviour is based on a few fundamental concepts according to the HR
manager which revolve around the nature of people and organisations.
The fundamental concepts of OB are as per the HR manager are as follows:
 Motivated Behaviour: the employee had to perform well in organisation in order to
fulfil their needs. It is the duty of HR manager of A M (Holdings) Limited to motivate
and encourage their workers to improve quality of work. Performing better will lead to
the path of fulfilment the needs.
 Desire for involvement: every employee in organisation looks for the opportunities to
get involved in decision making process. HR manager should share their opinion to
management to get better ideas. Organisation should provide them a chance to express
their opinions, ideas, suggestions.
 Value of the person: an employee wants to be valued and treated fairly in organisation.
They don't want to see themselves as an economic tools or just as an asset in
organisation. HR manager of A M (Holdings) Limited wanted to see their value in
organisation and want respect, dignity and other things from their employers and society
(Podsakoff, Mackenzie and Podsakoff, 2016).
 Organisation is social system: the activities within the organisation are governed by
social laws as well as psychological laws. Like a person, organisation also have status
and reputation in society. The behaviour of organisation is influenced by their groups as
well as their drives. There are two type of social system exist side by side in organisation,
a formal system and an informal one.
Firms differ in quality of systems as they develop as well as maintain result they need
to achieve. Varying outcomes are substantially needed by different models of organisational
behaviour. Therefore, it is important that managers recognize the nature, significance and
effectiveness of their own models. The two models of organisational behaviour are:
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