Organisational Behaviour Report: H&M's Culture and Employee Motivation

This report provides a comprehensive analysis of organisational behaviour, focusing on the case of H&M. It begins with an executive summary and an introduction to the core concepts. The main body delves into identifying H&M's organisational culture using Handy's model, specifically highlighting the Task culture. The report then explores how effective communication, using Berlo's communication model, enhances organisational effectiveness. Furthermore, it evaluates the crucial role of culture in employee motivation, emphasising its impact on productivity and job satisfaction. Finally, it assesses how H&M can leverage its existing culture to further enhance its success and competitiveness in the market. The report concludes with a summary of findings and a list of references.

Organisational
Behaviour

Table of Contents
Executive Summary ........................................................................................................................1
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Identify its culture in line with a theoretical model of your choice.............................................1
Explore how culture improves organisational effectiveness with a focus on communication....3
Evaluate the role of culture on employee motivation. ...............................................................5
Evaluate how the company could use the culture of the organisation to further enhance its
success..........................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCE ..................................................................................................................................8

Executive Summary
Behaviours refers as values, attitude, beliefs and sharing of information which is important
to have in effective at market places as it increases the organizational performance and
profitability. In business industry number of people are working who are belongs to different
culture, behaviour and attitude that should be concern by organization as it helps to make the
workings easy and develop the performance. To increase productivity management should
provide training to their staff so they can be ready to accept the challenges and develop the
business performance. In other terms, organization behaviour refers as study of human behaviour
as how they see, bring changes, and develop the business performance in changing environment.
The aim of organization to arrange the all workings by working with employees and increase the
brand image. The present report is based on culture and behaviour of organization that states how
to motivate staff towards accepting changes.
1

INTRODUCTION
The behaviour of organization is explained as study of human behaviour which they
reacts on each workings and changes that are taking by company. This is important for
organization to identify the situation and formulate effective planning by involving all staff so
that they can put their views on changes. If management are able to understand problems of their
employees and provide them optimum solution then it will be opportunity for company to
increase sales and performance (Tufan and Wendt, 2020). The culture encompasses through
beliefs, knowledge, norms, and capability that can help to operate the business and increase the
profitability. To increase the insight about organization culture, and motivation among
employees H&M has been selected that is large British multinational retailer operating their
business in changing environment. In this, number of employees are working by maintaining
their culture and values in organization which can help to develop a business. This organization
was founded in 1947 by Erling Persson. The headquarter of business industry in Stockholm,
Sweden where it it serving products in higher range. Topics are going to covered in report are
culture by adopting a theoretical model, culture improves organizational effectiveness and the
role of culture on employee motivation that affected the business.
MAIN BODY
Identify its culture in line with a theoretical model of your choice
Organization behaviour is the study of behaviour of employees who are working at
workplace that increases insights how to manage the workings and develop the business
effectively. This is important for all organization to decide their vision, mission, norms, and
systems which can help to manage the activities and functions in relation to business and attain
the higher performance. The culture of organization stands for environment of industry where
employees spending their time in workings and increase the productivity so that competitive
advantages can be attain by business industry. In business environment certain conditions may
occurs that might be affects employees reaction towards workings and operating the business
effectively. H&M is a multinational clothing retail company for the fashion in clothing of men,
women, teenagers and children. H&M operates over 74 countries and over 5000 stores under the
various companies brands . It is the second largest retailer company of clothing it also engaged in
the designing, manufacturing, marketing. The company also offer online and sales in Sweden,

Norway, Germany, Finland and many more places. Tag line of H&M is The secret to its success.
With reference to H&M effective culture is adopting which helps to manage the workings and
increase profitability by running a business accurately (About H&M, 2020). To understand the
culture of industry Handy Culture has been explained such as:
2

Handy's Model Of Organisational Culture:
Handy's model of organisational culture was developed by Charles Handy . It is define in
a way the individual want to live and follow the norms . It helps in human motivation, thoughts
and their learnings. It has four different kinds of culture: Power, Role, Task and Person.
Power culture - In an organisation the power is held by some individuals only who have
right to take the decisions in the organization. There are few rules and regulations are to be
followed and they believed in what people achieve rather that how they do the things. In H&M
company has to follow the strict rules and the regulations in case of adopting this culture by
management where such person will have authority to make decision only. Size is the major
problem of power culture in H&M that can create the conflicts between individuals and team
work. Some of the companies find it difficult to link too many activities and have the control
over them and have a proper financial control (Prabhu, 2020).
Role culture – The business industry having this culture are based on some rules and
responsibilities. These rules are to be followed in an proper manner and are highly controlled that
can help to increase the organizational workings and profitability. In role culture power in
determined by a person by defining role in organisation structure. In role culture the employee
has its own rules and responsibilities according to their positions, specialization, and in the area
of their interest. In H&M team work is essential and proper rules and regulations are to be
followed in case of adopting this culture that can help to increase working of individuals as they
make decision on time and team work become more effective. This is the part of the H&M
culture which can provide higher profitability. Leaders are always the role models and set good
examples of everything. In H&M leadership is all about inspiration, delegation, revert and
motivation (Caputo and et.al., 2019).
Task culture - This culture is formed when an teams in an organisation is formed to
solve an specific problem, there is no single power source and team may have their own risk.
Individuals having the having a same problem and the specific specialisation come together to
form a team and every team member has to contribute to accomplish the task in an effective
manner in case of adopting this culture. In H&M the company have to focus on specific task and
project which is assigned by management that can help in solving the issue in a proper manner so
that the proper results can be optimized. In H&M people are divided into the groups so that the
problems can be solved in time.
3

Person culture - In an organisation having the person culture the person see themselves
as very unique and superior to the organisation and exist in order the people to work in an
effective manner. They are common in the term of profession and this power lies with the each
group of the individual. According to the person culture the employees come mostly for the sake
of money they are never attached to organizational working. In H&M the person culture is
different they prefer to work in a team and see themselves in a proper manner in order to work
effectively. In H&M power lies in the hands of people so that there is a proper utilisation of
work.
From the above H&M is adopting the Task culture which is suitable and preferable
culture as per business situation that will help to grab the opportunity and maintain the higher
performance by completing task and project on time. In this culture, management decide the task
and bring the change in their performance by operating all activities and functions effectively so
that entire business can operate effectively.
Explore how culture improves organisational effectiveness with a focus on communication
Communication is the activity which perform between two and more than two individuals
for the purpose of increasing performance and managing all task. The main purpose of
communication is to understand information and making a clear judgement which supports to
develop a business and maintain higher profitability. The way of exchanging ideas, information
and messages from one person to other is known as communication which can help to manage
the workings and develop a business. If there is clear and effective communication between
people who are working then it will be opportunity for organization to increase the workings by
maintaining good performance (Kurtzo and et.al., 2019). In case of informations are not cleared
then it will be difficult for management to complete the task and goals in certain time. And
sometimes problem of miscommunication can be arises that has affected the profitability.
The good communication increases business effectiveness as all activities and functions
become easy to complete on time and manage the workings. For running any business and
attaining higher profitability there is need to have clear communication as it solve the problems
which are pertaining in business and get them optimum solution which can help to increase the
effectiveness. To understand about importance and way of communication Berlo's
communication has been used that are as defined:
4

Berlo’s communication model – The model of communication is given by Berlo who
states that without proper communication it won't be possible for individual to understand the
message and manage the workings. This can help to develop the business productivity by sharing
the message and operating a business in systematic manner. H&M is using this model for the
purpose of maintaining good communication that are as defined below:
Sender – A person who sends messages and information to another people for specific
task and having fun is known as sender. The process of sending message is consider as encoding
where it can be in the form of audio, video and others. For sending information there is
requirement of skills, knowledge, attitude, culture and ways of sharing. In H&M number of
employees and management are sharing their information who are observing as sender that helps
to complete task (Macnamara, 2020).
Message – It can be explained as collection and package of information which is sent
from sender to receiver which can help to manage the workings. The messages which sends by
person in the form of video, audio, text, speech and others which should be understand properly.
In context to H&M, management uses this stage for sharing the important message and
information to employees so their sales and profitability can be maintain.
Channel – For sharing and transforming any messages there is need to have requirement
of channel which helps to complete the workings and maintain good performance. The channel
are which can be used by H&M company are hearing, tasting, speaking, smelling and others that
supports to convert the message in right form.
Receiver – This means a person who receives the messages and information by sender is
called as receiver. In context to H&M, receivers are getting messages from sender and
implement in their organization which can help to solve the problem and attain the higher
profitability in changing environment (Barnlund, 2020).
Therefore, H&M is using Berlo communication model which supports to manage the all
workings and functions in effective manner. If organization brings any changes in their
performance then it share with employees by using effective channel which can help to complete
the workings and maintain higher performance.
Evaluate the role of culture on employee motivation.
As culture and communication is important for each organization where motivation between
employees is also defined as important aspects which can help to increase employees willing to
5

work and maintain the good performance. If all workings are done on time and managed it
properly then it will be opportunity for organization to increase the workings and attain the
higher performance (Jiang and et.al., 2019.). Motivation is the important activity which uses by
H&M company to reduce the emotional pressure, economic pressure and other activities which
are important to increase the organizational performance. In chosen organisation various
department such as production, HRM, finance, sales, accounts, and marketing are working by
adopting motivational activities with the help of motivation model that are as explained:
Maslow hierarchy model – This model is related to making satisfy and happy to
employees by managing the workings and attaining the higher performance. Motivation is the
activity which uses by H&M to getting the work done by satisfying their needs and wants which
can help to increase the sales and performance in changing environment. The explanation of
Maslow's hierarchy are as explained:
Physiological needs – The relation of this need is with basic needs of employees who are
working in organization. It involves food, water, air, shelter, warmth, sex, and sleep that helps to
make feel happy to employees. H&M is focusing on basic needs of employees and satisfying
them by managing all workings.
Safety needs – The employees whose basic needs have completed are demanding safety
next that can help to make feel them happy. The management of H&M focuses on this needs and
provide safety to staff which motivates them to work effectively (Nasif, 2020).
Belongings need - If basic needs and safety provided to employees then next level of
requirement is belongingness such as affection, relationship and others. This need is filled by
management of H&M that provides good motivation in their workings.
Self-actualization needs – In this, employees of H&M actualise their skills and
knowledge by managing workings and task which helps to increase insights and get the further
business opportunity. This can help to maintain higher productivity in developing the skills and
maintain higher performance (Karathozhuvu Suresh, 2020).
Therefore, motivation theory is uses by H&M company to maintain the good behaviour
and effective workings which helps to motivate employees to manage workings and increase the
profitability. This activity develop the business performance and accept challenges as employees
get full support of their superiors which increases organizational effectiveness.
6

Evaluate how the company could use the culture of the organisation to further enhance its
success
For every business organization success is important as it can help to develop their
business in changing environment and bring the changes more. In organization there is need to
focus on culture, task, motivation and changes that should bring by management for the purpose
of managing activities and performance. It has been seen that employees of organization mainly
prefer to work where is having strong and clean culture, as no conflicts and problems are running
in business. If there is not adopting good culture then it will be challenge for organization to
operate their activities and develop the business (Lang and Mohnen, 2019.). In context to H&M
management analysis the performance and task which they are required to do and follow the task
culture that can help to complete the workings on certain time and attain the higher performance.
The management of chosen industry analysis current situation and bring the innovation by
involving all employees as it follows task culture which can help to adopt the changes by
maintaining effective communication and attain the higher profitability in competitive
environment.
Skills and abilities of employees are analysed by management then work is being divided
so that all workings can be complete in certain time and maintain higher profitability. The
management of chosen organization working under selected culture, motivation and
communication process which provides various benefits as:
Increase employee retention – For business industry it is important that their employees
retain in organization for long period as they assigned role and responsibilities between staff
which helps to complete the workings. In relation to H&M, management decide the goals and
increase the feeling of work by understanding their demand motivating them which supports to
complete the workings and increase business success (Vrečko and Skaza, 2020. ).
Build brand image: The aim of organization is to maintain higher brand image by
satisfying employee and customer's demand. As following task culture by H&M customers feel
strong environment of business industry and make happy to employees by filling their
expectation that supports to improve the brand image in changing environment.
CONCLUSION
From the above report it can be concluded that culture and communication is important
aspects of organization as it involves various activities and functions that needs to be complete
7

on time. Having strong culture and command on employees needs an organization can influence
the employees and getting the work complete which provides higher success.
8

REFERENCE
Books and journal
Tufan, P. and Wendt, H., 2020. Organizational identification as a mediator for the effects of
psychological contract breaches on organizational citizenship behavior: Insights from
the perspective of ethnic minority employees. European Management Journal. 38(1).
pp.179-190.
Prabhu, J. J., 2020. Dimensions and Characteristics of Organizational Behavior: Impact and
Competitive Advantage. Dimensions. 4(3).
Caputo, F., and et.al., 2019. Innovating through digital revolution. The role of Soft Skills and
Big Data in increasing firm performance.
Jiang, Z., and et.al., 2019. Knowledge hiding as a barrier to thriving: The mediating role of
psychological safety and moderating role of organizational cynicism. Journal of
Organizational Behavior. 40(7). pp.800-818.
Lang, L. and Mohnen, A., 2019. An organizational view on transport transitions involving new
mobility concepts and changing customer behavior. Environmental Innovation and
Societal Transitions. 31. pp.54-63.
Vrečko, I. and Skaza, A., 2020. Steering Start-Ups' Organizational Behavior Through
Development of Project Management Practices. In Recent Advances in the Roles of
Cultural and Personal Values in Organizational Behavior (pp. 324-343). IGI Global.
Kurtzo, F., and et.al., 2019. Exploring communication tendencies of program
facilitators. Journal of Applied Communications. 103(1).
Macnamara, J., 2020. New Developments in Best Practice Evaluation: Approaches, Frameworks,
Models, and Methods. The Handbook of Public Sector Communication, pp.435-454.
Barnlund, D. C., 2020. TOWARD A MEANING-CENTERED PHILOSOPHY OF
COMMUNICATION1. Shared Experiences in Human Communication, p.26.
Nasif, S., 2020. Maslow's Hierarchy of Needs.
Karathozhuvu Suresh, A., 2020. Could climbing up Maslow's pyramid help us solve the world's
environmental problems?: A study of the impact of human development from material
to non-material needs on the environment.
Online
About H&M. 2020. [Online]. Available through:
<https://en.wikipedia.org/wiki/H%26M>
9