Organizational Behaviour Report: Leadership Styles and Impact Analysis

This report provides a detailed analysis of organizational behaviour, focusing on the comparison of Tesco and J Sainsbury PLC. It begins by defining organizational behaviour and exploring different organizational structures, including flat, hierarchical, functional, product, and geographic structures. The report then delves into organizational culture, examining various types such as clan, power, role, task, adhocracy, market, and hierarchy. A significant portion of the report is dedicated to comparing the organizational structures and cultures of Tesco and J Sainsbury PLC, highlighting the differences between hierarchical and functional structures, as well as market and hierarchical cultures, respectively. It further analyzes the factors affecting individual behaviour at work within these firms, such as motivation, leadership, and communication. Finally, the report examines the leadership styles adopted by managers in both companies, contrasting autocratic and democratic approaches and their impact on employees and overall firm performance. The report concludes with a discussion on the usefulness of different motivational theories in enhancing employee performance.

Organizational Behaviour

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
1.1 Different types of organizational structure and culture....................................................2
1.2 & Merit 1 Comparing the structure and culture of two firms...........................................4
1.3 Factors affecting the individual behaviour at work..........................................................7
2.1 Leadership style adopted by two different managers.......................................................7
AC 2.1 Different leadership styles.........................................................................................8
2.2 & Merit 2 Organizational theory underpins the practice of management........................8
2.3 Management theories adopted by these two firms...........................................................9
3.1 Impact on different leadership style on firm..................................................................10
3.2 Motivation through different leadership styles...............................................................10
3.3 Usefulness of different motivational theories.................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

ILLUSTRATION INDEX
Illustration 1: Hierarchical organizational structure........................................................................5
Illustration 2: Functional organizational structure...........................................................................6
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INTRODUCTION
Organization behaviour can be defined as the structure and nature of various practices
which are followed within an entity. It is a study of both individual and group activities and
performances within an organization. This study is helpful in knowing the human behaviour in a
working environment and also helps to determine the effect of job performance, communication,
structure, leadership and motivation (Ahmad and et.al., 2008). This report is about Tesco and J
Sainsbury PLC that what different forms of organizational structures and culture these firms use
and their effect on business performance. Further, it also covers the factors which affect the
individual factors and different leadership styles which firms can adopt in order to achieve the
organizational goals and objectives.
TASK 1
1.1 Different types of organizational structure and culture
Organizational structure: Organizational structure can be defined as coordinating,
supervising and allocating resources in order to achieve the goals and objective of organization
(Mills and et.al., 2006). In other words, it determines the way in which responsibilities, power
and roles are coordinated, controlled and assigned to the human resources of the firm.
Advantages of adopting organizational structure:
Strategies can be focused: It allows the firm to have a better focus on single set of goals
rather than group’s working towards achieving their own agenda. Through organizational
structure, the firm can communicate with any employee effectively and would help the
organization to use resources wisely.
Decision making: It is effective in decision making process as enterprises with defined
hierarchy are better equipped and decisions are made effectively.
Training: It helps the managers to provide training for employees who can be easily
administered and it also helps the employees to be flexible for the changes made by the firm
(Perkins and Arvinen-Muondo, 2013). When changes are conveyed, monitoring of information is
easily done through organizational structure.
Disadvantages of organizational structure
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Difficulty in management control: When the organization expands then it becomes
difficult for the top management to control. Management finds it difficult in making decisions
for providing responsibilities to all areas in the firm. In addition to this, coordinating activities
also becomes difficult (Schermerhorn and et.al., 2011).
There are mainly four types of organizational structures which are as follows:
Flat organizational structure: This organizational structure is adopted by those firms
which have less than 30 members or firm which has few levels of management. This structure is
very effective as the decision making is very fast as only few members are involved. All the
small firms adopt this structure like International Development Design Summit.
Hierarchical organizational structure: It is a systematic structure where the information
flows from top to bottom and bottom to top. In this structure, except one, rest all is under a single
head (Singh, 2009). Example, Tesco follows this structure and has proved to be effective in
achieving their goals and objectives. Example, U.S. Steel is a firm which uses vertical
hierarchical structure in which information is conveyed in a systematic flow.
Functional organizational structure: This type of function focuses on functional areas or
job functions. It is used when firms are in need to organize their operations into groups and
departments. For example, ABC International follows this organizational structure.
Product organizational structure: This is based on the firm's product lines. It is mostly
followed in the retail industry. Example, Kraft products is the firm which has many product lines
like sauces, dressing, meats, etc. (Ahmad and et.al., 2008).
Geographic organizational structure: This type of organizational structure is formed
when firms have different business units and offices at different places (Shahnawaz and Jafri,
2009). Example, the organization, Drug, is at different regions like North, South, East, west and
Central.
Organizational culture: Organizational culture is a system of shared values, beliefs and
assumptions which suggests the employees to behave in a particular manner. It plays a vital role
to influence the employees and guides them to act, perform and dress while at work.
Advantages or organizational culture
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Improves productivity: Employees who have better understanding of firm’s culture
generally perform better than compared to those that do not have proper knowledge regarding the
culture which organization follow. They understand their work clearly and perform effectually
(Saks and Gruman, 2011). Thus, productivity of the firm increases and organizational goals are
achieved.
Bring employees at a common platform: Firm which is having the organizational culture
where each employee is equally treated.
Disadvantages of organizational culture
Difficulty in adopting: Among all the employees in a firm, there will be few who would
find difficulty in accepting or in adopting the organizational culture.
There are many types of organizational cultures which are as follows:
Clan: In this type of organizational culture, they focus on nurturing and monitoring of
employees and perform work together with common goal (Jafri, 2012).
Power culture: It is a culture in which all few or only one person is given with the
authority to make decision. This type of culture is mainly followed in small firms. It is very
effective as in making decision does not take time.
Role culture: According to this culture individuals are given with job or roles which they
need to perform. For example, legal compliance, marketing, sales and project management (Mills
and et.al., 2006).
Task culture: In this culture, teams are used in accomplishing a given task. Assigned team
will be given with deadline and budget in which they have to complete the task.
Adhocracy: This is a culture which is entrepreneurial and dynamic and focuses on
innovation, taking risks (Ahmad and et.al., 2008).
Market: Firms that follow market culture are result oriented. They mainly focus on
achievement, competition and completing the tasks on time.
Hierarchy: These types of cultures are controlled and structured and focus on stability,
effectiveness and doing the things without error.
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1.2 & Merit 1 Comparing the structure and culture of two firms
Tesco: This firm adopts Hierarchical organizational structure were all the decisions are taken by
the head and orders flow form top to bottom. Head will convey the message to the employees
under them and they will pass on the information to the workers.
It provides a clear line of communication and through which the relationship between the
managers and subordinate and provides direction to their communication. The employees are
very clear regarding the person who will help them with any kind of issues (Tesco organizational
structure, 2015). Moreover, this structure helps Tesco in recruiting people who are specialist in
their area. As there is a manager under whom there are different departments who are responsible
for take effective steps in managing their departments. This structure helps them in selecting
candidates who will capable enough to handle their departments.
Illustration 1: Hierarchical organizational structure
(Source: Tesco's organizational structure, 2015)
Tesco adopts market culture where they focus on completing the tasks on the given time.
They mainly focus on results. They develop new strategies so that they can compete effectively
with their competitors. They provide objectives to their employees so that they focus closely on
achieving the organizational goals and objectives (Bond and Muethel, 2012). Both this structure
and culture are very effective in achieving the goal and objectives.
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Illustration 2: Functional organizational structure
(Source: Organizational structure impact, 2015)
J Sainsbury PLC: This firm adopts functional organizational structure where people are
grouped according to their area of specialization. These employees are supervised by a manager
who will be expertise in this area (Organizational structure impact, 2015). This manager helps
these employees to utilize his skills effectively which in turn helps the firm in achieving the
organizational goals.
Through this organizational structure employees of J Sainsbury PLC perform more
effectively as their superiors guide them so that they perform effectively. In addition to this,
managerial efficiency increases (Tohidi, 2011). All the departments are divided according to the
activities performed in the firm and is headed by supervisor and as a result the work is
accomplished on time and objectives are achieved.
J Sainsbury PLC adopts hierarchical culture as they mainly focus on completing the task without
error. They focus on the work performed by employees should be perfect. This type of culture
and structure are very helpful in maintaining the quality of work and through this the customers
are satisfied as the demanded products reach the customer on time.
Distinction 1
Tesco follows hierarchical organizational structure where all the information are provided in a
systematic way. On the other, J Sainsbury PLC follows functional structure where superiors
convey all the important messages form the top management. J Sainsbury PLC follows
hierarchical culture where they mainly focus on competing the task without error. On the other
hand, Tesco follows market culture in which the focus on completing the task on time (Mills and
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et.al., 2006). It can be concluded that different organization use different structure and culture
and they have their own importance and limitations.
1.3 Factors affecting the individual behaviour at work
Following are the factors which affect the individual behaviour at Tesco: Motivation: The type of structure Tesco adopts motivates the employees as employees
are under a head who directly looks after employees. All the issues which an employee’s
faces are conveyed the head. As a result the employee is motivated and performs
effectively. In effective head: The head under whom employees have to perform should be capable
enough to encourage the employees (Yiing and Ahmad, 2009). Employees face many
issues the head should solve all the problems and help employees to perform effectively.
 Work culture: According to the culture adopted by this firm focuses on the tasks they
perform. The employees are defined with the objectives which the firm aims to achieve
through their employees. This helps them to perform more effectively and to use their full
potential in achieving the goals (Organizational structure impact, 2015).
Following are the factors which are affect the individual behaviour at J Sainsbury PLC: Leaders: The organizational structure which this firm adopts has different departments
which are controlled by superiors. These superiors play an important role in influencing
individual behaviour at work (Aktaş, Çiçek and Kıyak, 2011). They provide direction to
the employees so that they can perform effectively.
 Effective communication: These superiors should have effective communication with
their employees. They should not have feeling that they are left out or avoided.
Communication effects the individual behaviour at work.
2.1 Leadership style adopted by two different managers
Manager of Tesco adopts autocratic leadership style. In this style all the decisions are
taken by the head. Employees are not involved in decision making. The manger has vast
knowledge regarding the all the areas and according to his experience decision are made.
Through this style the manager ensures that all the services and products are produced in
consistent manner. Employees have to follow the orders given by the manager, even if
employees dislike it. This style is very helpful in making quick decisions as the manger do not
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involve anyone in decision making (Ahmad and et.al., 2008). All the decision is made according
to the experience of the manager.
On the other hand, manager of J Sainsbury PLC adopts democratic leadership style. In this
leadership style, employees are allowed in making decision. Managers share problems with their
employees and decisions are made with the concern of every employee (Organizational structure
impact, 2015). Employees are highly motivated as they are involved in making decisions. It
encourages employees and they perform more effectively.
Basis of difference Autocratic leadership style Democratic Leadership Style
Motivation This style provides strong
satisfaction and motivation to
managers.
Democratic style provides
motivation to all employees and
managers because in decision
making process their ideas are also
considered.
Decision Process This leadership style permits quick
decision making process.
Due to involvement of all
employees, it takes long time in
decision making process and
quality of decision is improved in
this (Jafri, 2012).
Dependency In this style employees are
dependent on the managers decisions
and orders.
Every employee is independent, all
are equally involved in activities of
business.
Morale This style may leads to frustration
due to conflict and low morale
among employees or subordinates.
This style improves morale and job
satisfaction of employees.
Time Consume This style consume less time and
results are drawn quickly (Ahmad
and et.al., 2008).
This leadership style is more time
consuming and results are delayed
due to long decision making
process.
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Both leadership styles are totally opposite to each other but both are beneficial for firms in their
own ways (Mills and et.al., 2006).
2.2 & Merit 2 Organizational theory underpins the practice of management
Tesco adopts scientific theory, this theory is based on the planning the work to achieve
effectiveness. Employees should be given training so that they can perform more effectively.
Managers should understand the problems of the employees and work together in solving them.
In recruitment process candidates should be selected according to their capability and willingness
(Tesco organizational structure, 2015). This theory is followed by firm with the help of 14
principles given by Henry Fayol's, which are as follows:
 Division of work: It is very important for the organization to divide the work among their
employees.
 Authority: Employees should be provided with proper power and authority so that they
perform their roles effectively.
 Discipline: It is important for the employees of the organization to follow all the
practices and policies made by management strictly (Aktaş, Çiçek and Kıyak, 2011).
 Unity of command: All the workers should work together to achieve common goals and
objectives.
 Subordination of individual interests: Different workers have different interests and they
should be provided roles according to their interest.
 Remuneration: According to employees performance, they should be provided
remuneration.
 Centralization: In simple words it means reduction in employees role (Perkins and
Arvinen-Muondo, 2013).
 Scalar chain: In order to convey information, it should be done in an systematic manner.
 Order: Workers should be provided proper resources so that they could work effectively.
 Equity: Workers should be treated equally.
 Stability of tenure of personnel: Management should focus on retention of employees.
 Initiative: Employees should be encouraged by managers so that they come up with new
ideas or take initiatives (Yiing and Ahmad, 2009).
 Espirit De Corps: Harmony in the organization should be encouraged by management.
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On the other hand, J Sainsbury PLC adopts neoclassical approach. This approach follows
various principles which are as follows: Individual: Individuals should not be treated as machines and they should be provide
with proper rest so that they work effectively. Group work: Working in teams is better than working in teams. Team should work
together in order to achieve the organizational goals and objectives.
 Participative management: All the employees should be involved in decision making. It
helps in motivating the employees (Perkins and Arvinen-Muondo, 2013).
The organizational theory underpins the business activities in several ways. With the help of
this theory the management is able to know their current position of business. This theory also
helps to plan the organization structure to achieve the success and to solve the conflicts in
organization (Ahmad and et.al., 2008).
2.3 Management theories adopted by these two firms
There are several management theories which helps the firm in organizing and planning.
Different management theories like Classical organizational theory, neoclassical theory and
modern organizational theory.
Tesco uses Contingency theory, according to this theory there are many universal
application to manage its firms in setting management principles. Firm recruit well motivated,
groomed and trained staff and when the company grows it opens up new local offices and also
creates new opportunities for the employees. In this way this theory is very helpful in
underpinning the practice of management.
On the other hand J Sainsbury PLC adopts administrative Theory, according to this theory it
calls for formalized administrative structure, delegation of power and a clear division of labor.
The cited firm has divided its powers to different departments which are responsible for their
own workings (Schermerhorn and et.al., 2011). All the staffs in this firm are clear about their
role and responsibilities and this helps employees to perform effectively and efficiently.
3.1 Impact on different leadership style on firm
Tesco follows autocratic leadership style. According to this, following are its impact on
the firm:
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 De-motivated employees: Employees are not involved in decision making as a result of
which they have a feeling of disconnection with the organization. Thus, it affects the
overall performance of employees.
 Wrong decision making: Decisions made by managers may not be right all the time.
With involvement of employees, it increases the generation of ideas. As a result, quick
and effective decisions can be made (Tesco organizational structure, 2015).
On the other hand, J Sainsbury PLC follows democratic leadership style. According to this,
following are its impact on the firm: Coordination: This style offers better coordination among employees. This involves
discussing all the factors which affects the management of the organization (Singh,
2009). When decisions are made by involving all the employees, then firm can have
better suggestions along with the better understanding among employees.
 Creativity: Every employee has a different set of thoughts and possesses different ways
of solving the problems. This leader style helps in getting creative solutions for a
particular problem.
3.2 Motivation through different leadership styles
There are different application for motivational theories like:
Goal setting: According to this theory managers should set goals which this the employees will
be able to understand the purpose by which the hold on the job (Yiing and Ahmad, 2009). When
goals are set employees can be motivated as they will be able to develop path through which they
can achieve the goals.
Process motivation: This theory is mainly used for scientific research in any kind of occurrence
or event is caused because of certain input.
Autocratic leadership style adopted by Tesco motivates employees in the following ways:
Effective leader: Managers of Tesco motivates employees by establishing confidence in the
decisions which are taken by the manager will be productive and accurate. With managers
knowledge regarding the company’s processes and industry employees get motivated as they
keep the department focused in achieving the organizational objectives and goals (Shahnawaz
and Jafri, 2009).
Democratic leadership style which is followed by J Sainsbury PLC motivated the employees in
following ways:
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Decision making: In this leadership style all the employees are allowed in decision making and
major decisions are also taken only with the concern of all the employees. This helps in running
the firm smoothly and employees take interest in success of the firm as they help the firm in
crafting the processes and policies. This leadership style is very helpful in motivating employees
and they develop a feeling of importance for the organization.
3.3 Usefulness of different motivational theories
Following are the usefulness motivational theories which will help the managers of Tesco
and J Sainsbury PLC in adopting any one of it:
Maslow's hierarchy of needs is most useful theory which covers all the areas through which
employees get motivated. Usefulness of this theory is as follows:
 Helps in identifying the factors that will de-motivate or motivate the employees.
 Offers more opportunities in obtaining knowledge and experience.
 Improves satisfaction level at work.
 It allows employees to reach at the perfect stage of happiness.
 Offers flexibility in working location and hours
 Gives more rewards or recognition for good performance.
One more theory which firm can adopt in order to motivate the employee is X and Y theory
(Saks and Gruman, 2011). This helps to identify the employees who like the work as well as
those employees who dislike the work. Employee who love their job are grouped into X theory
and the employees who dislike their job are grouped in Y theory. Following are the usefulness:
 Employees who like their work can be identified and these can be provided with proper
training so that they could enhance their skills and perform more effectively.
 Employees who dislike their work can be identified and these employees can be provided
with suitable training so that they can understand their roles and responsibilities more
clear in order to perform well (Jafri, 2012). In addition to this, their issues can be
identified and solved so that they could b motivated and work effectively.
CONCLUSION
From this report, it can be articulated that organizational structure and culture are very
important in order to shape, coordinate and manage the firm effectively. Among all the
leadership style firm which follows democratic style is highly benefited as employees are highly
motivated and work effectively in order to achieve the organizational goals. Lastly, both the
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firms can adopt Maslow's hierarchy of needs for motivating employees as this theory covers all
the areas through which employees get motivated.
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REFERENCES
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efficiency: The moderating role of organizational environment and CEO values.
Procedia-Social and Behavioral Sciences. 24. pp. 1560-1573.
Bond, M. H. and Muethel, M., 2012. Doing Better Research on Organizational Behaviour in
Chinese Cultural Settings: Suggestions from the Notebooks of Two Fellow‐Travellers.
Management and Organization Review. 8(2). pp. 455-475.
Jafri, M. H., 2012. Influence of psychological contract breach on organizational citizenship
behaviour and trust. Psychological Studies. 57(1). pp. 29-36.
Mills, A. J. and et.al., 2006. Organizational Behaviour in a Global Context. University of
Toronto Press.
Perkins, S. and Arvinen-Muondo, R., 2013. Organizational Behaviour: People, Process, Work
and Human Resource Management. Kogan Page Publishers.
Saks, A. M. and Gruman, J. A., 2011. Organizational socialization and positive organizational
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commitment and organizational citizenship behaviour. Journal of the Indian Academy of
Applied Psychology. 35. pp. 78-84.
Singh, K., 2009. Organizational Behaviour: Text and Cases. Pearson Education.
Tohidi, H., 2011. Teamwork productivity & effectiveness in an organization base on rewards,
leadership, training, goals, wage, size, motivation, measurement and information
technology. Procedia Computer Science. 3. pp. 1137-1146.
Yiing, L. H. and Ahmad, K. Z. B., 2009. The moderating effects of organizational culture on the
relationships between leadership behaviour and organizational commitment and between
organizational commitment and job satisfaction and performance. Leadership and
Organization Development Journal. 30(1). pp. 53-86.
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<http://flylib.com/books/en/1.183.1.14/1/>. [Accessed on 6th November 2015].
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