Organisational Behaviour Report: Analysing AM Holdings Ltd's Practices

This report delves into the realm of organisational behaviour, focusing on the influence of culture, politics, and power on individual and team performance within AM Holdings Ltd. It examines how organisational culture impacts employee behaviour, using Handy's Culture model and Hofstede's mod...Read More

Organisational Behaviour

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Analyse how an organisation’s culture, politics and power influence individual and team
behaviour and performance.........................................................................................................3
TASK 2............................................................................................................................................6
P2. Evaluate how content and process theories of motivation and motivational techniques
enable effective achievement of goals in an organisational context...........................................6
TASK 3............................................................................................................................................8
P3. Explain what makes an effective team as opposed to an ineffective team...........................8
TASK 4..........................................................................................................................................10
P4. Apply concepts and philosophies of organisational behaviour within an organisational
context and a given business situation......................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Organisational behaviour is a human tool which is beneficial for humans. This is all
about how an individual is behaving and interacting with their staff members in the organisation.
This can be said as the process of directing and controlling the behaviour of an employee within
the organisation. The present report is all about AM (Holdings) Ltd, which is a private limited
company dealing in material sector in the container and packaging industry. This operates as a
holding company which is incorporated on 17 October, 2007 (Ashenden and Sasse, 2013) . This
report will draw attention on the impact of organisation culture, power and politics on the
behaviour of the workers at the workplace. As it is said that coordination and cooperation is
needed among the employees in the organisation to attain the desired goals, so the discussion on
this will be take place in the current report. Along with this the discussion on motivation theories
will also going to be mentioned in the report. In the end the report will be wind up by applying
the philosophies of organisation behaviour in various situation of business.
TASK 1
P1. Analyse how an organisation’s culture, politics and power influence individual and team
behaviour and performance
Organisational behaviour is all about measuring the performance and activities performed
by an individual. This is the process which guides how to operate an business entity in an
effective manner. By this, the organisation can define the nature of employees. The main aim of

the company is to inspire and encourage their staff members in achieving their targets in
effective time frame (Carlos Pinho, Paula Rodrigues and Dibb, 2014) . The various elements
such as organisation culture, power and politics impacts can be briefly understand by the model
of Handy Culture which is popularly known as Handy's topology. The four elements that affects
the organisation behaviour are mentioned below :
 Organisation Culture – Organisation culture is the process of assumptions, beliefs and
values. This culture defines the way of employees in interacting or communicating with
other employees in the organisation. This can be better understand by the model of
Handy Culture, which helps in reducing the high turnover rate and enhancing the
performance level of staff members. The following are the components of the above
model, which are described as below-
Power Culture
In an organisation, only the higher authority
has the power to take any decisions. In similar
way, in AM holdings Ltd company the
decisions are taken by the CEO and senior
manager and also the tasks are assigned by
them, so that the firm can able to sustain their
business. This culture is mainly used by the
small business enterprises.
Task Culture
The employees of the organisation are assigned
with the specific task by their superiors in
order to accomplish their targets in an effective
manner and in a positive time frame. This
culture of handy topology provides the flexible
and positive working structure.
Role Culture
In this culture, the employees are delegated
with the roles and responsibilities assigned by
their senior manager in order to achieve the
desired goals and set of objectives. In the
similar way, in AM holding Ltd company, the

staff members are assigned with their duties to
perform the specific tasks on time.
Person Culture
In this culture, the employees are working and
taking decisions by their own. They treat
themselves as the senior manager and work
accordingly, by which the AM holding Ltd
company may have to face the difficulty in the
future.
In order to accomplish the targeted assigned by the higher authorities, the AM holdings
Ltd company will follow the task culture, as in this the specific task are assigned by the senior
manager to their employees, So by this they complete and attain their task in effective time
frame.
Impact of Organisation culture – The positive and negative impacts that affects the culture of
an organisation are as follows -
 Positive Impact – If the above model will be followed effectively by the AM holding Ltd.
Company, then the organisation can enhance the growth of the business. The manager
should treat each staff members equally so that no partiality point will be raised by the
employees, by this the organisation culture will be effective and goals and objectives can
be attained on time (Coccia and Cadario, 2014) .
 Negative Impact – If the organisation culture of an organisation is weak then the
employees will be demotivated towards their work. In context with AM holdings Ltd. ,
the organisation must have the powerful organisation culture so that the employees get
inspired to do work and attain their targets on time.
Hofstede model of organisational culture
Organisational culture is termed as the beliefs, ideologies and practices that are followed
in the company and differentiates it from other organisations. According to this model there are
five factors that influence the workplace culture-
Power distance- Power is distributed among different individuals. Subordinates are
assigned work according to their knowledge, skills and abilities.

Masculinity vs. Feminity- The organisation has different politics and rules for the
organisation where male employees dominate female ones. The responsibilities are distributed
among the male and female equally.
Individualism- Individuals with same interest and skills work together to complete
different taska and jobs.
Uncertainty avoidance index- It is the culture where individuals know how to respond to
business circumstances.
Long term orientation- It is the organisation where focus is on building long term
relations with the employees.
Impact of Politics – This impact of politics at workplace occur when an organisation manager
tries to involve themselves in any immoral situations in order to gain profitability of the
organisation. This matter create politics in the firm. So in this the impact which occur are
positive and negative, and are as beneath - Positive Impact - The employees of AM holding Ltd. Company implement an unique
idea in order to enhance their performance level and get motivated to work in an effective
manner.
 Negative Impact - Using the personal information of any employee without their
permission for the growth of the company, can have negative impact on the performance
level of the organisation.
Impact of Power – The managers of AM holdings Ltd. Can use certain powers on the
employees in order to attain the goals timely (Coccia, 2014) . The powers used by the higher
authorities are as follows -
 The managers has the power to motivate, inspire and encourage their employees.
 The senior team of the organisation also has the power to penalize their employees in the
form of demotion. The organisation must reward their employees for their working performance, as because
they have the power to reward them in the form of appraisal and motivation.
Positive Impact – By rewarding the employees for their work can be an positive impact for the
organisation.

Negative Impact – The penalize method of showing the power can demotivate the employees,
and this can be defined as an negative impact for organisation.
TASK 2
P2. Evaluate how content and process theories of motivation and motivational techniques enable
effective achievement of goals in an organisational context
Motivation is a very important factor that comprises of various tools and techniques that
are majorly used for skill enhancement and building morale of employees. This is all about the
needs and desire of an employee. Hence in present context of AM holdings Ltd. Company it can
be observed that motivation acts as a appraising factor for both organisations as well as
employees (De Vasconcelos, Gouveia and Kimble, 2016) . The various theories are used by
different organisations. In context with AM holdings Ltd, Maslow's hierarchy of needs as content
theory and Vroom's expectancy as process theory is explained as below -
Content Theory : In this theory, the needs of an employee is to be considered by the organisation
in order to attain the desired business goals and objectives. This theory is taken into
consideration while motivating the employees of the firm. Under this, the Maslow's hierarchy of
needs theory is to be used by AM holdings Ltd.
 Maslow's need hierarchy theory : Maslow's hierarchy of needs is an important motivation
theory which deals in psychology of individuals as in based on a five tier model that
infuses needs of people. These needs may often be depicted or expressed as various
hierarchical levels in pyramid form. This theory was profound by Professor Alfred
Maslow's. As per the author, people can only be motivated only when their needs are
fulfilled (Harper, Randall and Rouncefield, 2012) . This theory deals with a number of
ways or means which can be considered by leaders and managers of AM holding Ltd for
motivating their employees and also raising their overall performance level. There are
basically five factors in this theory which have further been explained as under :

1. Physiological needs : Physiological needs refers to basic needs of an individual such as
food, clothing, shelter etc. If these biological needs do not get satisfied then there is a
possibility that no human can function optimally. These needs are considered as most
vital needs of individuals (Maslow's hierarchy of needs, 2018) .
2. Safety needs : Safety needs deal with providing employees a certain level of safety as
well as security. For examples - health security, monetary insurance, etc.
3. Love and belongingness : In this the social needs arises, which comprises of feelings as
well as belongingness factor (Hashim and Wok, 2014) . Love or belongingness needs
generally are intangible in nature and can include factors such as well behaved supportive
employees, positive working culture and environment etc.
4. Esteem needs : Esteem needs are considered as confidence, achievement, respect from
other companions etc. Esteem needs can further be classified into two categories esteem
for oneself and desire for reputation or respect from others. These needs are most
important in children as well as in teenagers.

5. Self-actualisation : This is highest level of need theory. This needs infuses factors such as
creativity, spontaneity, lack of prejudice and so on. This theory deals with realising
potential of an individual along with personal growth as well as peak experiences.
Herzberg Theory
This motivation-hygiene theory was given by Fredrick Herzberg, who studied two
variables which were desirable and undesirable conditions. These conditions are independent and
affects behviour differently.
Desirable conditions referred to as hygiene factors which includes company policy,
relationship with peers, job security, personal life, etc. these are not intrinsic parts of job but
related to job conditions. Undesirable conditions referred to as motivational factors which
includes work, responsibility, achievement, advancement, and recognition. These factors have
positive impact on functioning of employees in organisation. If there is increase in factors
satisfaction increases and decrease in factors dont affect level of satisfaction.
Process Theory : This theory is all about the change in behaviour which influence the needs and
requirement of an individual. This implement an idea which changes the organisation for their
development. In context with AM holdings Ltd., Vroom's expectancy theory is applied in their
firm.
 Vroom's Expectancy Theory – This is the theory of motivation which was founded in
1964 by Victor vroom. This theory focus on the content and process of information by
integrating needs. This inspire and motivates their employees with the three factors which
are elaborated below :
Illustration 2: Summary of Vroom's Expectancy Theory

1. Expectancy – In this, the employees perceived probability that effort will lead to good
and best performance.
2. Instrumentality – In this, the employees that there is a connection between the goal and
activity. The employees have faith that their performance will lead in desirable outcomes.
3. Valence – This is related with the degree in which reward are valued (Hyde, Harris and
Boaden, 2013) . The employees will get to be rewarded in the form of promotion or
motivation.
The Theory of Adam’s Equity defines that the employees of the organisation should maintain a
positive and fair relationship between the rewards and performance in comparison to others. In
other words, an employee gets demotivated by the job and the employer inputs are more than the
their outputs. This theory was founded by John Stacey Adams which is based on certain
assumptions- Individuals make contribution in the form of input and they expect for the result
and reward in the form of outputs. The three types of exchange relationships are explained below
which arise when an individual input and output are compared with another other individual.
 Over paid Inequity : This is the phase where individual think that their outputs are more
then their inputs.
 Under paid inequity : This is visa versa of over paid inequity, where individual think
that the output is less then their inputs.
 Equity : This is a stable condition, where outcome are as per the input given by
individual.
TASK 3
P3. Explain what makes an effective team as opposed to an ineffective team
For every organisation, employees are crucial as they are the valuable asset of a
company. The firm should use the resources effectively as to accomplish their targets. And for
this the separation of effective and ineffective team is necessary, as by this all the employees can
work accordingly and can interact with the other employees. The two types of team in an
organisation is mentioned below- Effective Team : This team is said to make the efforts to do the work by coordinating
with all the employees. In an effective team, the employees are honest towards their work

and perform their task which are assigned by their seniors in order to achieve the business
targets in an effective time frame (Kazemipour and Mohd Amin, 2012) .
 Ineffective Team : This team is totally opposite from the effective team as in this the
employees are not honest towards their work and no goals are set. The employees of this
team don't know their target for which they have to work and they do not perform the
tasks effectively.
For better judgement of the team, a well differentiation chart has been done, which is mentioned
below-
Effective Team Ineffective Team
This Team is based on people-oriented process.
In this team there are good representatives,
which can present their team in front of public.
The manager of the organisation shares
decisions with the employees of an effective
team. The superiors cannot penalize the staff of
this team. In effective team there are huge
numbers of good planners.
This Team is based on performance-oriented
process. In this team, there is no
representatives, the employees of this team are
not presenting their team anywhere. In this
team, the decisions are taken by their own. The
punishment is given to the employees of
ineffective team. This team consists of Bad
planners.
The Turnover rate of AM Holdings Ltd. Company is £6M to £10M. This company
deal in material sector in Containers and Packaging Industry. This company serves
confectionery, multimedia, dairy and pharmaceutical markets, in order to enhance the
profitability (Muchiri, Cooksey and Walumbwa, 2012) . The higher authority management
department is deciding to enhanced their business globally. In order to attain their desired target
there is need to create effective team by which organisation can increase their profitability and
productivity to sustain their business in the market.
Tuckman's model of team development
This model was given by Bruce Tuckman in the year 1965 where different stages of team
development were discussed. According to him there are four stages of team development which

includes forming, storming, norming, performing and adjourning. These stages are followed in
AM holdings and explained in the following paragraph- Forming : This is the stage of team development which require dependency on managers
and leaders for guidance and suggestions in completing the tasks. Individuals are not
clear with the goals and objectives of the organisation (Robbins and et. al., 2013) . Team
leader has to put efforts in helping them to understand job and perform them effectively. Storming : In this stage the team members are involved in making ideas and suggestions
for project completion. There is an occurrence of conflicts and fights because of collision
of thoughts of different people. Norming : At this stage, roles and responsibilities are discussed for performing the
organisational tasks. The level of commitment and unity becomes strong and team
members involve in different social activities and have fun (Thomson and Van Niekerk,
2012) . Performing : strategies and plans are made for achieving the organisational goals and
objectives. Team members along with leaders are committed to perform various tasks.
 Adjourning : The leaders help in achieving goals of the company. The strategies are
actually implemented to achieve objectives of company.
Belbins theory was propounded by Meredith Belbin to measure preference of nine team
roles in organisation. This theory is also called as Belbins self-perception theory and team role
inventory. This model is formulated to use talent and traits or team members of company. A.m
holdings applies this theory for efficient development of team and understanding team members
role which are described below:-
Implementer: Implementer is team member who puts ideas and plans in executable tasks
and practical solutions. Implementer is reliable, efficient, disciplined and conservative.
Resource investigator: Resource investigator explores opportunities and develop
contacts. A.M holdings have such type of team members who help in developing creative ideas
to fulfil targets effectively.
Plant: Plant is creative, imaginative and unorthodox thinker of team. This team role helps in
solving difficult problems by giving surprising and effective results. In A.M holdings this team
role helps in solving major issues to accomplish task effectively.

Monitor: Monitor team role go through all options and judges accurately. Monitor
evaluator is strategic, discerning and sober in nature. A.M holdings Ltd passes judgements in
that manner that team don't face inequality.
Shaper: Shaper has a strong urge to perform for challenges and get things done. Shaper
always make sure that tasks are completed before deadlines and targets are also achieved. A.M
holdings with help of shaper move forward, overcome obstacles and conflicts easily.
Coordinator: Coordinator promotes decision making, clarifies goals, and do proper
delegation.This team role helps A.M holdings to attain goals from team by proper delegation.
Complete finisher: Complete finisher posses talent of feeling what could go wrong. A.M
holdings can use this team role after completion of task so that errors can be identified and
solved.
Team worker: Team worker is most sensitive member of team role of Belbin theory.In
A.M holdings team worker help in creating togetherness and team spirit.
Specialist:Specialist provides knowledge and skills in rare supply. They are single
minded, dedicated and self starting. In A.M holdings Ltd. Specialist helps in understanding
about teams key areas.
TASK 4
P4. Apply concepts and philosophies of organisational behaviour within an organisational
context and a given business situation
It is essential to have an effective organisational behaviour at workplace for achieving
organisational targets in given time. AM holdings company is having a number of managers
working towards accomplishing organisation's goals. For motivating employees, managers
provide rewards and benefits to their subordinates and making them work effectively. There are
several factors which affects managers and leaders working in the company. They are listed
below-
 Integrity: It is very important to make strong internal relationships among employees.
This can be done by providing them a secure and safe environment. Integrity is a part of
leadership and this is given to leaders and managers of the company.

 Responsibility: Roles and responsibilities are assigned to employees and subordinates on
the basis of their skills, knowledge and capabilities. This helps in accomplishing goals in
an effective manner.
Path goal leadership theory : This is a leadership theory which was given by Robert House in
the year 1971. Path goal leadership theory explains different ways in which leaders or managers
motivate and support their subordinates in attaining organisational goals and objectives. The
main focus of this theory is to make effective measures in leadership and support employees. By
using this determination of leadership styles in different organisations is selected (Wang and
Ritchie, 2012) . The main aim of Path goal leadership theory is to motivate employees and
increase the level of job satisfaction. There are basically four kind of leadership styles operated
in any organisation which are achievement -oriented , directive , supportive and participative The
Theory of Adam’s Equity defines that the employees of the organisation should maintain a
positive and fair relationship between the rewards and performance in comparison to others. In
other words, an employee gets demotivated by the job and the employer inputs are more than the
their outputs. This theory was founded by John Stacey Adams which is based on certain
assumptions- Individuals make contribution in the form of input and they expect for the result
and reward in the form of outputs. The three types of exchange relationships are explained below
which arise when an individual input and output are compared with another other individual.
 Over paid Inequity : This is the phase where individual think that their outputs are more
then their inputs.
 Under paid inequity : This is visa versa of over paid inequity, where individual think
that the output is less then their inputs.
Equity : This is a stable condition, where outcome are as per the input given by
individual.leadership.
Employee characteristics : AM holdings is an organisation where individuals are given tasks on
the basis of their capabilities, skills and knowledge. This role of managers where they give tasks
according to skills and abilities help in attaining best outcomes for business. Leaders and
managers need to motivate their team members in achieving goals and objectives.
Environmental and task characteristics : Support and motivation of leader is important for
effective functioning of the organisation. Leaders and Managers of AM Holdings help their
juniors by providing them guidance and support throughout projects and tasks.

Leadership styles – A leadership style is defined as characteristic behaviour of guiding,
motivating, directing and managing different groups or teams in the organisation. Good leaders
are those who motivate their employees in attaining goals and objectives in given time (Weng
and et. al., 2015) . There are following kinds of leadership that are followed in any organisation
and these help in achieving organisational goals in specific time. These leadership styles are
discussed in the following paragraph-
 Participative : This kind of leadership ensures that all individuals are actively
participating in performing jobs and tasks. This helps an organisation in attaining goals
and objectives in a given specified time frame. The present condition of employees is
evaluated and accordingly leader make efforts to enhance the performance of that
individual.
 Directive : These type of leaders do not focus on views of other employees. They only
focus on views and experience of their own. Leaders of AM Holdings follow this
leadership style in guiding subordinates to achieve their task (Wong, Wong and Ngo,
2012) . Such kind of leadership is helpful in building collaboration of work among
employees. Leaders make effective change in strategies and planning of the organisation
to consume less time in project completion.
 Achievement : Leaders and managers of AM Holding company use this leadership style
in motivating their team mates for accomplishment of project in less time. Motivation is
given to employees by giving rewards, appreciation and certificates for performing well
in the company. This leadership helps in employee satisfaction and employee retention
for a long time.
 Supportive : This leadership focuses on helping and supporting employees in attaining
goals and objectives of the company. Leaders provide guidelines, strategies and plans to
their subordinates and help them in solving difficulties in project completion. The
managers and leaders of AM Holdings follow this kind of leadership style to support and
encourage employees in every possible manner to achieve personal as well as
organisational goals within specified time (Wood and et. al., 2012) .
CONCLUSION
From the above mentioned report, it has been analysed that organisational behaviour is
an important factor in the smooth functioning of the organisation. This is beneficial in achieving

employee targets. There are different elements which affects the organisational behaviour that
includes culture, power and politics. In this report factors that influence organisational behaviour
are discussed on the basis of Handy's typology. In addition to this, there are different
motivational concepts and theories like Vroom's expectancy theory and Maslow's need theory
which are followed in organisations for motivating and supporting employees in order to make
them feel valued and engaged in the company. Moreover the advantages and disadvantages of
effective and ineffective teams is explained in later part of report. Effective teams are those
which attains the organisational goals and objectives. This helps in enhancement of growth in
business In the end of report philosophies of organisational behaviour within a organisational
work context is explained.

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