Icon College HND Business: Organisational Behaviour Report - Unit 12

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This report provides a comprehensive analysis of organizational behavior, focusing on how organizational culture, politics, and power influence individual behavior and performance, using Tesco as a case study. It delves into various aspects, including Hofstede's cultural dimensions, collaborative, competitive, and controlled organizational cultures, and the impacts of positive and negative organizational politics on employee productivity and well-being. The report also explores motivation theories, such as Herzberg's two-factor theory (hygiene and motivation factors) and process theories like equity theory, to understand how to enhance employee performance and satisfaction. Furthermore, it examines the application of reward, legitimate, referent, expert, and coercive power within organizations and how these power dynamics affect individual and team behavior. The report aims to demonstrate effective and ineffective team dynamics, applying concepts and philosophies of organizational behavior within a business context, as demonstrated in the provided assignment.
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ORGANISATIONAL
BEHAVIOUR
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
P1Analyse organization’s culture,politics and power to influences individual behaviour and
performance.................................................................................................................................3
LO2..................................................................................................................................................6
P2 Content and Process theories of motivation and motivation techniques................................6
LO3................................................................................................................................................10
P3)Demonstrate an effective and ineffective team ...................................................................10
L04.................................................................................................................................................11
P4 Apply concepts and philosophies of OB along with business situation...............................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Organization behaviour refers the process of understanding behaviour of human at
workplace and finds out its impact on job structure, employees performance, action and
leadership. Organizational behaviour concludes four parts such as peoples, structure, technology
and the environment of company etc. impact on organization performance and supports to
achieve goal of company. Thus, organization behaviour supports to examine the complicated
nature of employees in company. To understand organizational behaviour concept of company
there is an example Tesco. It is a British multinational groceries company and famous as general
merchandise retailer company (Buchanan and Huczynski, 2019). Headquarter of the organization
is London in UK where comes in third largest retailer around world on the basis of gross
revenue. On the basis of revenue organization comes ninth largest retailer in the world. Tesco
has the largest productivity of employees at workplace such as 450,000. Company retails wide
variety of products such as supermarket, hypermarket, superstore and convenience shop etc.
organization has 6.800 shops which operates in various countries along with wide subsidiaries.
In this report will examine determine culture, political and power on the behaviour of other
organization. It will cover content and process theories of motivation and motivation techniques
which enables to effective achievement of goals in an organization.
MAIN BODY
LO1
P1Analyse organization’s culture,politics and power to influences individual behaviour and
performance
Organization culture refers a system which includes values and behaviour of human
being that determines how employees behave in organization. While shared values gives impact
on employees and guides them how to dress up, how to act with other and how to perform at
workplace. Organization culture plays vital role in organization where it supports individual and
team to influence their performance by meeting their objectives. Tesco applies organizational
culture concept and gives values to their employees (Osland, Devine and Turner, 2015). There
are various culture in organization such as -
Hofstede's six dimensions of Culture: It is cross culture communication framework. The main goal of
the theory is to gives values each type of employee's who belongs to different culture. Tesco
introduces different type of cultural employee at workplace so that they enable to understand each
type of customers objectives.
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Collaborative organization culture: Manager of company involves whole team of employees in
decision-making where they share ideas and collaborate to company to gain business
competition. Organization encourages teamwork and through this strategy achieves complete
task in minimum time.
Competitive company culture: Tesco applies this culture to enhance employees efficiency and
their behaviour at workplace where manager gives challenges to employees through task, so that
they work as team to overcome challenges. Beside of this individual employee also gets
opportunity to sharp their skills so that he perform better at workplace.
Controlled organization culture: company monitors employees performance at workplace and
guides them to achieve organization mission (Cook and Artino Jr, 2016). To control organization
culture Tesco improves their organizational structure so that company enables to give value to
individual and team behaviour and performance.
Organization culture leads employees productivity at workplace but it has some drawback such
as strong organization culture drastic resistance to modification.
Organization politics mentions the activities which requires, develop and applies power
and other sources to find desirable outcome's in critical situation. Organizational politics applies
by organization to gain positive outcomes.
Positive politic: It is behaviour which designs to influences other employees along with
objectives of supporting both company and individuals. Beside of this Tesco usage this
organizational politics to enhance efficiency, form inter personnel relationship, profit of
company and their members. due to politics at workplace individual employees enable to give
proper attention at workplace and always try to down other employees.
Negative politics: Company gets drawbacks of politics because it leads unequal behaviour of
individual employee at workplace to gain benefits. It gives negative impact on team
performance in company. Impact of organizational politics-
Decrease employees productivity; to gain positive outcome in company manager to do unequal;
behaviour to employees at workplace which reduces well-being of employee. Due to this
employees' productivity become lower at workplace (Wilson, 2017). Beside of this employee
plays politics at workplace rather to pay attention in his performance. It causes dispute obtains
between employees.
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Changes attitude of employees: Politics in company changes the attitude of employees regarding
company even ideal employee also disturbs and loss his interest in job and attendance. Thus,
internal politics of employees doesn't permit them to give their hundred percent at workplace.
Thus type politics decrease performance of employees and crates conflict between employees.
Beside of this it leads demotivation in employees. Employee gets difficulty at workplace
regarding task but politics causes no employees interact to each other. Thus, it reduces individual
well-being in company. Thus, Tesco unable to motivate employees and doesn't get positive
outcomes in company.
Organization power refers the capability of organization to influences individual and
team behaviour and performance. It also encourages employees to achieve individual objectives
by influencing their performance. Tesco uses French and ravens theory in which includes four
type of power coercive power, expert power, legislative power, reference power and reward
power. French and ravens theory is specially designed to motivate large number of employee at
workplace.
REWARD POWER:Tesco applies reward power to enhances allocation of incentives within
company, Where manager of Tesco company offers rewards on the basis of employees
performance (Wilson, 2018). Reward power greatly motivate employees to retain in company.
To influence individual employee well-being at workplace manager offers incentive strategy so
that he enhances their skills and improve his performance. Beside of these employees also gives
their best performance so that he enables to get extra incentive. To improve team performance at
workplace organization offers promotion or bonus strategy so that each group of company works
hard and leads success in company by achieving profitability for company.
LEGITIMATE POWER: Manager of the organization perform as the owner of the company
where fix target for employees. The main goal of the power is to keep control employees activity
so that organization gets profitability in company. Conflict obtains crisis between employees and
that decreases performance of employees at workplace. As result organization unable to use
reward power in well-formed in company and unable to influences individual and team
performance and behaviour.
REFERNECE POWER: Leader influences their employees performance by offering admiration.
The main goal of the leader to give the values of their employees so that their well-being is
maintained at workplace.
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EXPERT POWER: The main goal to influences talent of employees by offering skill
development classes. Through this theory organization analyses individual employee behaviour
at workplace and gains complete task on time. Employee influences their impact by offering the
best performance along with profitable outcomes at workplace. Thus, employee well-being
maintains and resolve conflict between employees and management. Reward power leads wide
scale employees productivity at workplace.
COERCIVE POWER: In this power manager of Tesco posses power top give threat to
employee's along with punishment. The main goal each employee understand their responsibility
regarding job. Tesco gets negative impact in organization because this strategy support to
achieve short term objectives but it can't get long term objectives. Thus, organization unable to
achieve mission of company. Manager keeps motivate employees for short time but after
sometime again conflicts obtains between employees and management.
LO2
P2 Content and Process theories of motivation and motivation techniques
Motivation is a tool which leads effectiveness in performance by meeting individual
objectives. To understand motivation there are two theories examples such as content theory and
process theory. Both theory is basically designed to influence employees performance at
workplace so that organization gets positive outcomes in company. Tesco applies both theories
to motivate individual and team along with their performance and behaviour at workplace.
Content theory
it refers the process of examination human needs which changes according to time. This
theory specially designed to motivate individual employees at workplace so that their well-being
maintains, and they give their best performance. Content theory includes various theories such as
Maslow theory, ERG theory or Alderfer's theory, Herzberg's two factor theory and McClelland-
need for achievement, affiliation and power theory. Tesco applies Herzberg's theory to
motivate individual employees in company and makes them satisfy at workplace. This theory
also supports to overcome dissatisfaction of employees in company. That why it's known as
Herzberg's motivation hygiene theory or dual factor theory (Miner, 2015). It classifies into two
factors such as hygiene factor and motivation factor. It explains below-
HYGEINE FACTORS: it is essential for employees motivation at workplace and supports to
maintain employees well-being in company. This factor plays vital role to influences individual
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employee performance and motivate them (Namada, 2018). Hygiene factor concludes-various
factors which supports to elect intellectual employees in company. Tesco keeps appropriate pay
structure rather to other competitive industry so that employee's motivate in company.
Organization offers salary on the basis of employees talent and their work efficiency. Tesco
offers flexible working hours facilities to employees where employees can do work to home as
result organization gets complete task on time while employees gets time to spend with
employees. Thus, organization keeps flexibility in company policies and administrative policies.
Beside of this organization provides holidays to employees which makes them happy and makes
them loyal at workplace. Company offers fringes benefits to employees where organization
offers health insurance policies to them which leads satisfaction in employee's along with their
families. To enhance employees performance at workplace manager organizes training classes
for them so that they learn new techniques and enhance their performance at workplace. While
employees gets opportunity to overcome their weakness and learn new techniques. Manager
provides physical condition to employees (Petrou, Demerouti and Schaufeli, 2018). In physical
working condition, manager provides good sitting condition along with cleanliness, air
conditioning place which makes them feel good during working. Beside of this organization
provides safety at workplace so that employees can do work free. Such kind safety boost female's
confidence, and they enable to give their best performance in their jobs. Organization also offers
job security to employees which encourage employees to retain in company prolong time.
MOTIVATION FACTORS: Above factor leads satisfaction in employees regarding job but
doesn't motivate to achieve organization mission. Motivation factor motivate employees to gives
their loyal performance at workplace. Self esteem is plays beneficial role to motivate employees
improve performance at job place (Lăzăroiu, 2015). Incentives motivate employees for short
time but employees needs respect, recognition, promotional opportunities and challenges which
inspires employees and gives values. Manager gives appreciation to employees for their work
performance which motivate individual employees to gives the best performance. Beside of this
organization offers promotion opportunities to employees on the basis of their talent which
inspire employee to perform well and get higher position in company.
This theory has drawback such as it influences employees productivity at workplace but
organization unable to take competitive advantage in business market.
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Process theory
It refers the process of examines how humans needs gives impact their behaviours in
order to accomplish goal of relevant to their requirements. Process theory is specially designed to
influences individual and team behaviour in organization so that they lead positive outcomes in
company. This theory includes Equality theory, expectancy theory and the porter Lawler model.
Tesco applies equality theory to influences employees behaviour at workplace. This theory
helps to influence team behaviour in company by meeting their needs. Equity theory is the
process which keeps fair relationship between punishment and reward in comparison to others
(Devece, Palacios-Marqués and Alguacil, 2016). In simple term balance between input and
outcomes where organization pays along with their conditions. For example organization offers
flexible working hour facilities to employees as result employees gives complete task on time.
Thus, organization gets complete task on time. Organization provides health insurance policies to
employees which leads satisfaction in employee's and their families regrading job. While
employees gives profitability in organization by doing overtime. Manager provides facilitative
working condition as result employees gives their productivity at workplace. Employee gives
their best performance at workplace as result organization offers incentives to employees on the
basis of their performance.
Illustration 1: Herzberg's two factor theory
source: Herzberg’s Two-Factor Theory
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Motivation techniques
Motivation techniques are those techniques which influences motivation in employees
regarding their job at workplace. Beside of this it gives values to employees and raises their
productivity at workplace. There are lots of techniques which motivate employees to influences
their performance.
REWARD STRATEGY: Reward is that strategy which attracts employees to give the best
performance at workplace and achieve that awards. Organization offers incentive to employees
on the basis of their performance where employees inspire and give their loyal performance at
workplace (King and Lawley, 2016). Beside of incentive organization gives reward as
appreciation to employees on their performance which inspire employees to give the appreciable
performance so that organization meets their mission.
Contingency theory: it is the approach of management to manage company effectively so that
organization gets profitability. It is not only depend on leaders' ability but also depends on
employees' ability. In simple word a leader who manages whole team according to circumstance.
For example To motivate employees organization involves them to share profit where employees
get golden opportunity to earn extra profit beside of incentives. Through this technique
organization enables to raise organization income along with improvement in employees
performance at workplace. Tesco enables to reduce turnover of employees and gets competitive
Illustration 2: Equity theory
Sources:Adams Equality Theory on job Motivation
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advantage in business market. Thus, contingency theory supports organization to motivate and
lead employees in well-formed manner.
Path goal theory: path goal theory is based on leadership behaviour or style where number of
employees treat in equal manner so that they achieve goal of organization. The main goal to
increase motivation empowerment, self-esteem and satisfaction in employees so that they give
high productivity at work place. For example Manager organizes skills development classes for
employees and provide opportunity to learn new skills. As result employees gives their
involvement and sharps their skills and learn new techniques. Employee's applies these skills at
workplace to enhance their performance and leads profitability in company. Thus, organization
keeps fairness in reward and punishment and gets positive aspect in company. While employees
gets satisfaction and influences their performance at job place.
LO3
P3) Demonstrate an effective and ineffective team
Effective team- are foundation of each successful organization and it helps to improve facilitate,
quality for the completion of projects and increment of efficiency and productivity. It help to
improve the facilitate, quality of completion the project.
Ineffective team- It is a conflict-ridden, unfocused, filled with a distrust of negative competition.
It well results in high turnover, considerable frustration levels, absenteeism, intolerance and poor
communication.
To demonstrate effective and ineffective team Belbin theory are taken. The main aim of the
theory to influences employees performance at workplace, so they enable to lead profitability in
company.It has nine stages that are-
Shaper- It is the initial stage of the team during the team development where the
individual are not yet mixed or form together (Cherry, 2017). Here each member are highly
depended on the leader for the direction and guidance. Where the little agreement on the team
objective other than the received from leader. For making an effective team leader are to be well-
prepared to answer all the relevant questions about the team, objective and purpose and external
relationship because team member mainly depend on leader direction and guidance. If the leader
is not well-prepared than it is not possible to make an effective team, as the members not get the
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proper guidance from the leader and become ineffective team. So the leader are to be having
knowledge of all the norms and very well about the Tesco company.
Implementer: it is most important step where manager makes decision and direct
implement on team to follow. For the effective team, member of the team should overcome the
obstacles, by accepting the individual differences and work according to the team goals and task
and understand the situation, work efficiently that help to make an effective team member and
(De Vries and Van der Poll, 2018). If failure to address the conflict than it may result in long
period issues and never became an effective team. But it is the most critical and difficult stage
that pass through. It marked the period by competition and conflict as emerge individual
personality. In this stage team performance actual decrease because energy are wasted in the
unproductive activities. If the member of the team members are not accept and disagree with
goal than the team became ineffective, that decrease the performance and became ineffective
team.
Complementer finisher: Number of employees gets number of project as complement
along with deadline whereas employees give assurance to manager they complete their task
before deadline with any errors. Thus manager influences team work activity at workplace. It
enahynce effctivenss in team. While ineffective unable to complete task on time.
Team worker: From the stages if the team member are resolved from the conflict and
understand the responsibilities and agree to accept the team goals and objective than it helps to
emerge a unity. In this stage normal guidance are developed around the leader or leaders and the
individual members' responsibility. For making an effective team member there need to be
resolved all the interpersonal differences are to be resolved and the sense of understand and
cohesion and unity are to be emerged. Then only it is possible to increase the performance of the
team member, when each member are begin to cooperate focus on the goal of the team than it
make an effective team, which lead to success of the Tesco organization (Jaakson and et.al.,
2017).
If the team member are not agreed to resolve the interpersonal differences and can't able
to try changes and understand, then it is not possible to emerged as unity and are not possible to
improve the performance which result in declining the performance of the member day by day
which make the ineffective team member, which can decrease the sales and productivity of the
Tesco firm.
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Resource investigator: effective team is active at workplace and gives new creativity
about sources so that organization comes in profitability while ineffective team keep themselves
non active due to politics.
Monitor evaluator: it is strength of effective team because they get platform to create
creativity, imagination. It leads effctive performance of each employees in team. Thus, effective
team enable to resolve their conflicts and leads competitive advantage in company while
ineffective team unable to plant due to poor communication each other.
Plant:: In this stage cooperation and consensus are to be well-established and team are
well mature, functioning and organized and have stable and clear structure, and all members of
the team are committed towards the mission of the team. For an effective team are to be well
matured and are to be functioning well and make a clear and inflexible structure, so that all
members are to be performed well and are committed towards the mission of team (Onn, Yunus
and Yusof, 2017). Such effective team can help the Tesco firm to increase the productivity and
sales of the company, that leads a profitability of firm.
If the team is not been well-established and cooperate each other and become full mature
and are not in well-functioning than the member can remain low performance and also if the
company not provide the stable structure to the team it also creates impact on the performance of
the team member and the team remain ineffective, which leads reduction in the performance of
the team member and hence decrease in productivity of the Tesco company.
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