Organisational Behaviour: Impact on Lidl's Performance Report

This report provides a comprehensive analysis of organisational behaviour, focusing on the case of Lidl, an international supermarket chain. The report delves into the influence of organisational culture, politics, and power on individual and team behaviour, examining various cultural types and their impact. It critically evaluates both content and process theories of motivation, such as Maslow's hierarchy, Herzberg's two-factor theory, and Vroom's expectancy model, to assess their effectiveness in achieving business objectives. Furthermore, the report explores the factors contributing to the formation of both effective and ineffective teams, analysing team development theories and their influence on organisational behaviour. The analysis includes a critical evaluation of motivational theories and their relationship with company politics, power, and culture, offering insights into how these elements impact organisational performance and employee behaviour within Lidl.

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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
P1 Discuss how organisational culture, politics & power affect individual & team behaviour
.....................................................................................................................................................4
M1 Critical analysis on organisational power, culture and politics that influence individual or
team performances......................................................................................................................6
P2 Evaluating content & process theories of motivation to achieve business objectives or
goals............................................................................................................................................7
M2 Critical Analysis of organisational behaviour through effective application of behavioural
motivation theory, concept and models......................................................................................9
D1 Critical evaluation on relationship between motivational theories and company politics,
power and culture........................................................................................................................9
P3 Determining factors behind formation of effective and ineffective teams within
organisational context.................................................................................................................9
M3 Analysis of effective and ineffective teams with application of appropriate theories for
group development....................................................................................................................12
M4 Evaluation of organisational behaviour concept or philosophies that influence behaviour
in different business situations..................................................................................................14
D2 Critical evaluation on various team development theories, concepts an philosophies that
influence organisational behaviour at workplace to improve business performances..............14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Organisational behaviour is study of human behaviour in order to meet objectives. In this
competitive market, it is essential to focus on environment so that goals as well as objectives in
proper manner. Main aim of this report is to understand the importance of organisational
behaviour in business. Lidl, an International German supermarket chain headquartered in
Neckarsulm, Germany. It has many competitors such as Tesco, Walmart, Asda etc. This report
comprises of organisational culture, power & politics, process and content theories, team vs
ineffective team and philosophies of organisational behaviour.
MAIN BODY
TASK 1
P1 Discuss how organisational culture, politics & power affect individual & team behaviour
Organisational consists of broad range of activities, functions and operations which are to
be focused in proper manner. These have wider impact on individual as well as team behaviour.
In reference of Lidl, organisation culture, politics, power affects the overall organizational
structure. It has been further stated that it is crucial, to focus on individual as well as team
behaviour so that it is easy to implement strategies in proper manner.
Organisational Culture-
In enterprise, it is important to focus on different culture so that it is easy to understand
point of view of different people easily (Ozmen, 2018). Culture refers to group of people with
difference in opinions. Impact of culture on employees help them enhance productivity within
organisation. In relevance of chosen firm, there are various kinds of culture which are stated as
follows- Power culture- It is type of culture in which enterprise authorize power to few people on
basis of which decisions are being undertaken. In reference of selected entity, conflicts
arises more within workplace. Therefore, centralized power is exorcized by superior
manager to monitor control over company operations. Role culture- It is another type of culture in which power is given on basis of roles &
capabilities. In relevance of selected firm, every individual has different roles within

entity. Managers assign task to every potential candidate working as per their capabilities
and skill for effective attainment of goal objectives. Person culture- In this, it states that subordinates given importance to themselves rather
than firm. In reference of chosen entity, HR of company clearly well defined the roles of
person in company (Whiting and et. al., 2017). It is task of chosen firm manager to align
company objective with personal goals of employee so that they do not drift apart form
giving their best performances to organisation as per their potential.
 Task culture- In this, different types of tasks are allotted to individual & accordingly
work is done. The progress level of individual depends upon task given to them by
supervisors. For accomplished of goals within specific deadline, it important for manger
to create groups rather than allot individual task that may create burden to single
employee.
In relation to Lidl, one of most appropriate option to adopt by manager is role culture that
help them assign appropriate potion to every individual as per their skill competencies.
Organisational politics
This is a form of informal influence of outsiders or internal stakeholders within
organisation to carry on business operation smoothly. Sometimes, political pressure also result in
negatively impacting employees at workplace as they do not get fair chance to represent
themselves as well as their opinions in correct manner (Rothes,Lemos and Gonçalves, 2017). In
relation to Lidl, there are a lot of retailing supermarket subsidiary firms under this retail company
that are quick functioning under political undue influence. Some of political relation also help
maintain good communication with variety retailing supermarklet suppliers in UK leading to
profitability and good customer satisfaction with multiple alternative choices.
On other hand, corporation politics is created on basis of different perspectives of people
resulting in lack of clarity, freedom of speech, unchanged structural design, manipulation and
formation of informal gossips. Promotions done through political influence create sense of
demotivation among employees leading to frequent resignations (Klaeijsen, Vermeulen and
Martens, 2018). The factors above therefore broadly impact productivity of chosen enterprise
both negatively and positively.
Organisational power

This term itself denotes organisational capacity to impact others behaviour including
subordinates, staff members, managers leaders etc. It is ability of one stakeholder influencing
other to complete task within time as per company expectation. Power exercised within
organisation also is of various types that consist of formal, coercive, reference, reciprocal, expert
and rewards power discussed below:
Coercive power: This is a form of aggressive power that is practised by superior authority
of organisation on subordinates working under them to make workers complete their task as per
set deadlines. In context of Lidl, this power influences both groups & individual employees in
finishing their assigned work task (Northouse, 2021). There are different form of punishments or
charges for irresponsible or irregular staff members to make them improve their performance
level.
Reward power: In context with Lidl, have set up various rewards in form of fringe
benefits, accommodation facilities & incentives to encourage employees work under rewards
power (Hur, Moon and Ko, 2018). This power is also useful when practised to honour, awards or
promote an individual working within chosen firm.
Legitimate power: This power is exercised by employees who think that their is
legitimacy in their position. So, Lidl also classify this as formal power exercised by all staff
members working at corporation.
Expert power: This is form of individual power that an individual exercises with help of
their unique skills or knowledge in specific field. In relation to expert professionals and business
researchers mainly in Lidl uses this power to assist trainees or fresher employees under them.
Reference power: This is power that signifies identification of less powerful personnel
through shred identity, person's personification, culture sharing and hero worship etc. In relation
to selected supermarket retailing firm, leaders at workplace use this power to influence their
followers (Otoo, Kim and Choi, 2021). These subordinates are ones who admire, respect and
identify certain candidates as potential leaders of enterprise.
In relation to Lidl, employees at workplace perform activities effectively under rewards
power that motivate them in providing best outcomes towards company goals. Managers also use
centralised power to direct subordinates in following enterprise instructions, guidelines and rules.

M1 Critical analysis on organisational power, culture and politics that influence individual or
team performances
Individual performance and teamwork have varied motives to be established in relation to
organisational goals or objectives. These goals are impacted by above terms discussed that is
company culture. Factors impacting business decisions at large within organisational
environment are power, politics and culture. Application of these factors have helped company
segment similar mindset individual workers under groups to make effective attainment of goals.
TASK 2
P2 Evaluating content & process theories of motivation to achieve business objectives or goals
Content theories- These theories are adopted by organizations who prefer traditional
style of motivational leadership. Content theories have old theoretical management practices and
policies with general academic content. In relation with Lidl, uses these need theories to fulfil
motivational needs of individuals and teams within business. Following content strategies are
classified into following type that are maslow hierarchy of needs, herzberg two factors theory,
McClellan-d's needs and ERG Alderfer's Theory.
Maslow hierarchy of needs: This theory of motivation is utilized by top authority to
fulfil needs of employee at different levels. Need of working individual at workplace is divide
into two that are growth and deficiency factors. In reference to Primark, apply mas-low theory of
motivation to motivate employees discussed below in following points:
Physiological or basic needs- Such needs fulfil basic want of working employees that
includes shelter, clothing and food necessities (Alsawaier, 2018). That is why, Lidl have
analysed various necessities of a subordinate working at organisation to accordingly provide
them with travel allowances, loan facilities, fringe benefits, uncertainty insurances to make them
feel secure for family & self.
Safety needs- These are secondary needs of an individual participating in business
operations who want a secure environment at workplace. Employees inducted to a particular
enterprise have various expectations such as safety of health, job security etc. So, Lidl have
created various committees such as women empowerment cell, health committee, protective
measures towards hazardous substances used in company.
Social needs- These are also called security needs that include equality of every staff
member within business environment (Aboelmaged, 2018). In relation to selected enterprise,

managers have observed that employees except monetary benefits also require informal goals
such as friendship with others in team, companionship and respect amongst company members
etc. This need totally depends on workplace environment for employee that make them feel
comfortable with others.
Self-esteem needs- These needs comprise of recognition to employees who make an extra
effort to achieve organisational goals within specific time deadline. In relation with Lidl,
employees are provided with honour awards, recognition for their hard work, promotion etc. to
maintain a cordial relationship with talented & skilful employees.
Self actualisation- This is last stage of motivational theory in which individual achieves
their personal & organisational needs. At this stage, employee is fulfilled with knowledge and
appropriate specialisation in particular field. This help chosen firm provide opportunity to such
individuals with guiding subordinates achieve same level under them.
Above theory of hierarchy needs explains how employee wants are aligned with
organisational objectives to encourage them in both monetary & non- monetary terms.
Fulfilment of these needs direct employee towards attainment of company goals effectively &
efficiently.
Process motivational theories: These form of theories comprise of behavioural &
psychological processes carried on for accomplishment of organisational goals (Landry and et.
al., 2017). There are different form of process theories adopted by corporations that are V room's
expectancy model, Adam Equity approach, Locke goal setting theory and Skinny reinforcement
model. In context with Lidl, applies following theories to analyse employee personal and
organisational behaviour towards set goal objectives:
Vroom Expectancy motivation approach
Valence: This factor determines strength of an individual willing to get accurate actual
outcome for their performances. In context with Lidl, employees use valence to know analyse
their own wok tasks by evaluating them based on their handwork, effort, quality work and time
skills. Managers use scaling tool to grade up employees with outcomes that can be both negative
& positive.
Expectancy: This factor of Vroom theory measures employee performance based on
expectancy ratio that varies from 0 top 1. Expectancy in this factor defines belief of individual or
attitude towards work positive (Trabelsi and Felton, 2018). In relation with chosen supermarket

company, employees measure their current performance based on their past experiences,
confidence level and competency to beat others.
Instrumentality: This factor consist of desired outcomes form employee in near future as
per set goal objectives. This denotes if employee will perform some activities, they will achieve
following outcomes. In relation with Lidl, managers have created clearly defined policies &
procedures that employees can easily follow to meet their desired goal.
The above theory has helped individuals of chosen enterprise meet personal and
organisational goals.
M2 Critical Analysis of organisational behaviour through effective application of behavioural
motivation theory, concept and models
The above content and process theories are adopted by chosen firm to determine different
form of organisational behaviour. In content of chosen supermarket company, have used maslow
hierarchy of need to identify various needs of employee working at organisation and fulfil them
accordingly. By helping subordinates at workplace attain personal and company needs, managers
are able to retain potential candidates giving their best performances. On other hand, Vroom
expectancy process theory is utilized by chosen entity to carry on business operations & process
smoothly. This theory is beneficial for manager to measure and align employee performances
with organisational objectives.
D1 Critical evaluation on relationship between motivational theories and company politics,
power and culture
In above analysis of organisational environment have helped manager choose appropriate
motivational concept through content and process theories. Power, politics and culture of Lidl
broadly impact individual or team performances. Managers of respective entity link motivational
theories with organisational behaviour of employees to attain company goals in systematic
manner. The manager of Lidl in addition have used strategy of performance appraisal that can
easily motivate employees through various benefits such as incentives, financial benefits,
accommodation facilities, bank loans and references etc.
TASK 3

P3 Determining factors behind formation of effective and ineffective teams within organisational
context
In organisation, team play important role in achieving of growth and development. In
this competitive market it is essential to focus on mutual cooperation & coordination so that
effective strategies are implemented. In context of Lidl, they also have wide ranges of team on
the basis of which it is easy for them achieve higher productivity. It is duty of manager to make
assure that team segmentation is done on basis of skilled, knowledge etc. To achieve
competitive advantage in market, it is essential to focus on team development. To manage and
organise a team is difficult process. In business perspectives, it is critically important to
implement team in such a way that it is easy to access new opportunities. So, comparison
between these effective & ineffective team are further discussed as follows-
BASIS Effective Team Ineffective team
Meaning
Effective team are those who deliver
positive outcomes within workplace
(Mayfield and Mayfield, 2019).
Ineffective team are one who
produces negative results at
workplace.
Goals
Main aim of effective team is to
increase the work effectiveness &
achieve set objectives within period of
time.
Issues as well as problems
occurs between members.
Decision making
In effective team, decision making is
done with brainstorming sessions &
group discussions.
Taking is decision making is a
difficult procedure.
Results Effective team generates positive
outcomes.
Ineffective team are those
which do not produces positive
results.
In relation of selected entity, they scan the business environment in such a way that it is
easy to identify the difference between effective as well as ineffective team. Also, manager of

firm stated that there are various kinds of stages which are faced during group development. So,
Tuckman group model has been discussed as follows-
Tuckman's Team Model
It is model which states that various type of stages are encountered by team in
organisations (Kearney, 2018). Every member faces these stages which are explained as follows-
Forming-
It is a first stage in which it states that when individuals newly enters into entity, they are
nervous and worries about their roles. Also, in this stage leaders of firm directs and guides the
members regarding their work & roles. In relevance of chosen entity, leaders of firm make assure
that proper guidance is being given to team members.
Storming
It is second stage in which main behaviour and attitude is being analysed appropriately.
In this, team members started to develop relationship with each other. In context of Lidl, they
leaders of company make ensure that opinions and views of every individual is shared with each
other. It has been too examined that problems are also shared between each members.
Norming
It is aspect in which it states that work is being completed with collaboration & co-
operation. At this stage, team members work with each other in order to achieve common
mutual objectives. So, selected entity conduct brainstorming and group discussions. It is
critically stage which is to be understood in proper manner.
Performing
It is a aspect in which team perform and compete with each other. In this, members of
team main objective is to increase the work effectiveness & access to growth & development at
workplace (Gipson and et. al., 2017). Lidl manager evaluate & examine the performance of
employees by statistics and techniques.
Adjourning
It is to be considered as last stage in which every member of team get separated from
each other. It is also seen that in this team members move back to their old places &
departments when projects are finished. In case of selected firm, manager weekly conduct a
meetings where team members can meet their friends & colleagues.
Belbin Model

It is kind of model which consists of nine roles which are described below- Monitor Evaluator- This is a role in which decisions are done on basis of facts & figures.
There main aim is to implement planning strategically. The specialist- It is a role in which member is specialised in some field or area. Further,
they are provided with special powers. The Plant- These are those kind of team members in which innovation and new
thinking is focused. Lidl team members comes into this category. The shaper- It is also essential role in which members of team are able to achieve higher
productivity (Zaid, Jaaron and Bon, 2018). Also, it is examined that such type of
individuals who are ready to deal with challenges easily. The implementer- Implementers are those in which action are being executed. They are
one who has ability to achieve their goals by their own. Furthermore, it has been too
stated that they are strict & self discipline towards their work. The completer- This is another role in which members of team members are able to
finish the work on time & increase quality of work at higher scale. The coordinator- These are those who manages and maintains communication and other
skills of individuals. The team worker- Such kind of individuals properly understand other point of view.
Also, these people focuses on establishing effective team and positive results.
 The resource- Investigator- It is a type of role in which member of a team conduct
research analysis & then execute their work (Torlak and et. al., 2020). Such kinds of
individuals identify the new processes and procedures of doing work.
Thus, from above discussed matter it stated that models establishing of a team is not easy
task. It is essential to be aware about such models on basis of which it is easy to understand the
team members as well as team. Furthermore, it is duty of manager to analyse examine impacts
of team at workplace.
M3 Analysis of effective and ineffective teams with application of appropriate theories for group
development
The above analysis have helped organisation differentiate between an effective and
ineffective team based on various factors. In relevance with Lidl, mangers have adopted group
development theories such as tuck-man & Bel-bin model. Employees with similar characteristics

and perspective towards work tasks are collectively grouped into a team is explained in tuck man
model of group development. Whereas with help of belbin model, managers are able to assign
work as per quality skills of every employee in a team to effectively achieve group goals.
P4 Discuss philosophies and concepts of organisational behaviour
The concept of organisational behaviour is wider and broader which is top be properly
understood. In this contemporary market, it is necessary to focus on how goals can be achieved
within organisation. Philosophies refers to guidelines which assist in taking effective decisions.
Organisational behaviour is study of human behaviour. In reference of Lidl, managers focuses on
concept of OB on basis of which they are able to make decisions in appropriate way.
Path Goal Theory-
According to this theory, it states & focuses on leader's style is important and behaviour
which is best fit for employees (Wu and Lee,2017). Main goals of this theory is that it is assist in
increasing of employee motivation, skills etc. In relation of Lidl they too uses this theory & it
is further states as follows-
 Directive leadership- It is type of leadership in which guidance is being given by leaders
to team members. It is type of leadership style, in which leaders role is important which is
to be focused properly. In this, formal relationship is maintained by leader of firm. In
relation of chosen entity, they uses this style only when work load is there or control is
needed over employees. Supportive leadership- It is kind of leadership style in which it depicts that leader' s role
is to support & provide sources to employees so that it is easy for team members to
achieve higher work efficiency. Achievement oriented- In this type of leadership style, it states that difficult &
challenging tasks are being provided to employees & team members so that it is easy to
achieve higher achievements (Al-Henzab, Tarhini and Obeidat, 2018). In relation of
chosen firm, they uses this leadership style because leads to increasing of higher
productivity. Participative leadership style- It is another kind of leadership style in which it shows that
managers as well as leaders both participate equal decisions making. By using of this
style of leadership, it is easy to access employee inner capabilities and positive outcomes

are achieved easily. In this style, both formal as well as informal relationship is
presented.
Social capital theory-
This theory reflects that resources of society are beneficial which are to be adopted as
they can leads to development & growth of capital. With consideration of this theory, it is easy to
use resources at optimum level. In context of Lidl, they uses resources with scanning of business
environment. This social capital theory reflects that it is necessary for entity to be aware about
these changing situations so that it is easier to adapt the most appropriate methods & consider
how resources can be used.
Contingency theory-
It is type of theory in which it states that there is no best way to lead a entity or make a
decisions (Wang and et. al., 2019). With reference of this theory, it specifies that it is essential to
focus on the way company can be organised & lead so that planning is done accordingly &
effectively.
So, above explained paragraph shows that it is crucial to focus on philosophies as well as
concept of organisation a behaviour so that it is easy for entity to achieve common desired goals
appropriately. Therefore, various kinds of theory has been explained such as social, contingency,
path goal theory. Furthermore, it is critically important for individual to gain knowledge about
theories and models so that everything is being done in proper manner.
M4 Evaluation of organisational behaviour concept or philosophies that influence behaviour in
different business situations
The following analysis showcases variety of organisational behaviour theories of
leadership and motivation to employees. Theories such as path goal theory describe various
forms of leadership exercised by superiors to monitor businesses operations. So, Lidl applies
democratic leadership to give fair chance to employees in giving honest feedbacks, opinions,
suggestions and opportunity to prove their point in business environment. Another theory is
social capital theory that help organization with having optimum resources to operate from
society as whole. Contingency theory on other hand help manager choose best alternative option
to carry on business for longer period of time.

D2 Critical evaluation on various team development theories, concepts an philosophies that
influence organisational behaviour at workplace to improve business performances
Above analysis of team development theories and influence on organisational behaviour
within chosen enterprise affects goal objectives & performances broadly. These theories have
helped manager bring out a positive change in work culture of employees performing various
activities. Contingency approach help chosen firm use sustainable resources in long run. Social
capital theory is categorised into multiple dimensions categorised into cognitive, structural and
relational sections.
CONCLUSION
The above report conclude different form of organisational behaviours with company
environment impacting their managerial decisions. The influence of power, culture and politics is
explained in above analyses with different types impacting individual and group work
performances within chosen enterprise. So, in order to effectively achieve organisational goals or
objectives there are certain motivational leadership theories used by selected firm to monitor
different forms of subordinates behaviour. Differences between effective and ineffective team
also has helped firm identify factors that help improve scaling up of business with adoption of
appropriate motivation concepts. The following report classifies different form of organisational
behaviour within firm that are identified and grouped based on similar characteristics of
individual. The above report also explains theories of leadership that can be exercised in
participative, free rein, democratic and centralized manner.

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