Organisational Behaviour Report: Culture, Power, and Politics Analysis

This report delves into the realm of organisational behaviour, using A.M Holdings Ltd as a case study to explore the intricate relationships between culture, power, and politics, and their subsequent influence on both individual and team performance. The report begins by defining organisational behaviour and its significance in the business context, emphasizing the inter-relatedness between employee activities and company growth. It examines the impact of power dynamics, including coercive, reward, legitimate, referent, expert, and informational power, on employee motivation and productivity. Furthermore, the report analyses the effects of organisational politics, highlighting how factors such as decreased productivity, a negative work environment, and changes in employee attitudes can undermine performance. The report also explores how Handy's cultural typology model can be applied to A.M Holdings Ltd to establish a work culture that fosters employee engagement and drives team success. The report concludes by summarising the impact of power, culture, and politics on individual and team behaviour and performance, and it also covers motivational theories for achieving organisational goals.

Organisational
Behaviour

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
P1 Influence of organisation culture, power, and politics on individual and team performance.
................................................................................................................................................1
Task 2 ..............................................................................................................................................5
P2 Motivational theories for the effective achievement of organisational goals ..................5
Task 3...............................................................................................................................................7
P3 Effective team opposed in ineffective team......................................................................7
Task 4 ..............................................................................................................................................9
P4 Concepts and philosophies of organisational behaviour...................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisational behaviour is the study of environment and beahviour of the individuals in
the firm. It shows the relationship between the individuals activity and the company.
Organisational behaviour and the growth of the company are inter- related with each other. If the
employees performs the assigned task in an appropriate manner than this will lead to effective
and efficient work of the firm. The behaviour of the employees depends upon the growth of the
company. It also shows how the relationship between the superior and the subordinate can be
managed in a efficient manner. The company taken in this report is A.M Holdings Ltd . It is one
of the leading company of UK which deals in confectionery foils and laminated carton board.
The topics covered in this project report are the influence of culture, politics and power on the
organisation performance, the motivation theories and philosophies of organisation behaviour.
TASK
P1 Influence of organisation culture, power, and politics on individual and team performance.
The organisation's culture , power and politics are the factors which can influence the
individual and team performance. These factors effects the existence and growth of the company
in a positive or negative manner (Antonakis and House, 2013). Power is a means of influence
which means power can influence the employees and their working behaviour. Manager have the
capability to influence the behaviour of employees and direct and guide them in the right
direction. So that the organisational goals of the company is achieved in a desirable manner.
Power is the most important factor in controlling the behaviour of the employees in the
organisation.
Influence of power on individual and team
Power is used by managers to guide and motivate employees in the organisation so that
productivity is increased. It also helps in the completing the task in a desirable manner. In this
the decisions are taken by the managers related to the work. Such decisions involve- assigning
the roles and responsibilities, giving rewards, encouraging employees to perform better, etc. No
objectives and duties can be achieved in the organisation without power. The decisions taken by
the employees are for the growth and betterment of the employees(Atherton, 2015). As this will
help in reducing employee turnover and absenteeism in the company. Doing this will lead to the
growth of the individual and the team as well. In context to organisational power there are
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various theories which can be used by A.M Holdings Ltd to guide and influence the employees
behaviour. They are discussed below-
 Coercive power- Coercive is the power given to the individual with the objective of
punishing,terminating any employee in the organisation. In A.M Holding Ltd this power
is assigned to managers and CEO (Ball, 2012). These powers are rarely used by the
management with the hope of getting maximum output for the company by the
employees.
 Reward power- It is the power given to the person with the objective of providing
reward, training and development, promotions etc. In A.M Holding Ltd. Such power is
used by Board of directors by taking the permission of CEO rewards can be given to the
employees (Chemers, 2014). If this power is used by the management then individuals
will get motivated as this will help in increasing the skills and knowledge which will
directly result in improving performance of the team.
 Legitimate power- Legitimate power is the power which is given to the person
according to the position in the organisation. The power of the CEO of A.M Holding Ltd
is legitimate power which gives the authority to put control over its employees. Use of
such power will lead to proper control in the performance of the individual and the team.
This is because the management will know how to control and manage the performance
its employees and team.
 Referent power- It means the power which is given in order to influence the working
behaviour of other employees in the organisation. In A.M Holding Ltd this power is used
by the leaders to bring confidence among the employees related to their work
performance and loyalty in the organisation. Use of this will lead in increasing the
performance of the team because the individuals will be loyal towards their work and
organisation.
 Expert power- This refers to the power given to the individual for having proper
knowledge and skills in a particular field. In the company the power is used by the
managers who are expert in dealing with the difficult situation and they make proper
decisions to make maximum output. The use of this power will lead solving the problem
of the individual and due to this person will be satisfied in the organisation.
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 Informational power- These are the powers which are given to the individual who are
more capable to access valuable information and financing reports (Chevallier and et. al.,
2012). This power is used by CEO and top authority in A.M Holding Ltd who maintains
the information related with the inflow and outflow of company and the performance of
employees. If such power is used than the individual will have faith towards the
organisation.
Influence of politics on individual and team
Organisational politics is described as the use of informal efforts or strategies which may affect
the activities of business, selling the idea and attainment of power, etc. According to Chanlat
political behaviour can be divided into three parts which are- decisional, personal and structural.
Managers of A.M Holdings Ltd must take proper decisions and actions to control the political
environment of the organisation so that the work of organisation can be maintained. The
influences of politics on individuals and teams are discussed below-
 Decrease in the productivity- It is seen that those employees who are engaged in the
organisational politics are less concentrating towards work assigned to them which leads
to a negative impact on the organisation (Deckers, 2018). Employees who are more
interested in finding the mistakes of others directly affects the performance and
productivity of teams. And the individual performance will also be affected as the person
will be less concentrating.
 Spoils the Ambience- Politics in the organisation leads to negative environment and
mismanagement in the organisation. It spoils the relationship of the superior and
subordinate and also with other employees in the organisation.
 Change in attitude of employees- organisational politics in the company results in
change of the attitude of employees. The serious and dedicated employees will lose
interest in the work. Due to this employees will not be able to give their best in the
organisation. This will also leads to demotivation of the individuals in A.M Holdings Ltd
which will affect the productivity and performance of the team.
Influence of culture on individual and team- These are the factor which defines the
norms, values of the organisation and these are to be followed by the individuals. In A.M
Holding Ltd culture is established by employees and organisation(Dolan, J. and et. al., 2017).
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Work culture of A.M Holding Ltd can be described through Handy's cultural typology model-
This model directs organisation to follow some specified culture with values and norms that A.M
Holding Ltd can apply. It is divided into four parts-
1. Power culture- It is assigned to superior having centralised control on their employees.
In A.M Holding Ltd very less members have this power to control its employees. Use of
this type of culture will increase the performance of the individual as experienced person
will have this power.
2. Role culture- It is concerned with roles and responsibilities that employees have in the
organisation. In A.M Holding Ltd managers play a important role in giving roles and
responsibilities to the employees. These are given on the basis of skills and knowledge.
Individual having skills will get this. So this will bring self confidence in the individual.
3. Person culture- In this recognition of employees is done by giving them opportunities to
show talent. In A.M Holding Ltd this motivates employees to share the new and
innovative ideas. With this company achieve competitive advantage. If such type of
opportunities are given to the individuals than they will provide new ideas for team which
will positively impact the team and individuals performance. (El-Maghrabi and et. al.,
2018)
4. Task culture- In this the major focus is on motivating and influencing employees to
work and give best output. In A.M Holding Ltd the major priority is team spirit which
increases the productivity and performance of the team and desired goals are achieved in
a efficient manner. The individual will also be motivated by this as the focus will be on
giving the best output.
Impact of power, culture and politics on individual and team behaviour and performance
individual behaviour and
performance
team behaviour and
performance
Power When the managers in a firm
does not assign the work
properly then the behaviour of
the individuals gets effected in
negative manner as the work
will not be completed in the
When excessive power is
exercised on the individuals by
the managers, their
performance will reduce which
will also impact their working
behaviour. Due to the reduced
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given time which will also
impact their performance as
the problems can occur in their
working due to the allotment
of the work without
determining their skills.
performance of individuals, the
team performance will also be
negatively impacted which
will also create dissatisfaction
in their working behaviour.
Culture When the power are assigned
to wrong persons, then they
can change the working
environment and culture of the
firm which will leads to
dissatisfaction among the
individuals behaviour as it is
not easy to adapt to new
culture instantly. This will also
negatively impact their
performance as they have to
change their working style
which also leads to delay in
work.
When the culture of a firm
changes, the individuals and
teams also needs to make
changes in their working style
which will negatively impact
their performance. And when
the performance of the
individuals and teams
decreases, then their working
behaviour will also get
influenced as they have to
change their working styles
and their predetermined goals
cannot be executed in a timely
manner.
Politics When the individuals involves
in the politics of the
organisation, their efficiency
and performance will be
negatively impacted as they
takes part in the unproductive
activities. Due to this
involvement, their behaviour
also gets impacted as their
When the individuals in a team
engages in the office politics,
their performance decreases
which will also reduce the
team performance and
efficiency. Due to this reduced
performance and efficiency,
their behaviour towards the
firm and their work will also
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performance may not be
satisfactory which will leads to
dissatisfaction among their
behaviour towards the work.
change which will create
dissatisfaction in their working
behaviour.
Task 2
P2 Motivational theories for the effective achievement of organisational goals
Motivation is the most important aspect for the achievement of organisational goals. It
influences the work and interest of the employees of organisation in the positive and effective
manner. This is because if the employees are motivated in a proper manner than they will help in
achieving organisational goals. The motivational theories are discussed below-
Content theory- This defines the factors which causes change in needs and wants of the
employees . It will help the management of A.M Holding Ltd to analysis the factors which will
motivate the employees (Geppert and Dörrenbächer, 2014). It involves the motivational theory
which is discussed below-
Source: The Hierarchy of Human Needs: Maslow’s Model of Motivation. 2018
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Illustration 1: Hierarchy of Human Needs:
Maslow’s Model of Motivation

Maslow's need hierarchy theory- Maslow's need hierarchy theory states that the need
and requirements of employees are identified in five different categories. In this theory it is
explained that if the needs of the individual is satisfied than the individual will require new needs
to get motivate (Ghoddousi and et. al., 2014). Categories of Maslow's theory are discussed
below-
 Physiological needs- It involves the basic needs of the human life which include food,
clothing, air, water, shelter, etc. These are some common needs of the employees of A.M
Holdings Ltd which affects the performance and behaviour of organisation. A.M
Holdings Ltd needs to identify and fulfil these needs of the individual so that maximum
output can be drawn from them. If this is done than individual will perform better and
will help in achieving organisational goal.
 Safety and security needs- Such needs are related to the job security, health and safety
of the employees of A.M Holding Ltd. Management of A.M Holdings Ltd must
implement some safety measures and security needs for its employees. So that they gets
motivated and performs better. If the security needs of the employee is taken into
consideration than they will have a sense of belongingness towards the organisation.
 Social needs- These involves the social interactions, belongingness, companionship, etc.
of the employees in the organisation (Kiatkawsin and Han, 2017). The managers of A.M
Holding Ltd must try to maintain better communication and proper working environment
so that employees gets motivated because if this will increase the performance of the
individual and will motivate them to work in a effective and efficient manner. So the
organisational objectives will be achieved.
 Esteem needs- These involves the recognition and appreciation of the employees of A.M
Holdings Ltd from the other employees. Managers of A.M Holding can motivate
employees by rewarding them. If the employee is rewarded and appreciated than it will
directly help in achieving organisational objective.
 Self-actualization needs- These are those needs which are generated when the employee
is satisfied with other needs and demand. As those needs were fulfilled in a appropriate
manner. This will motivate the employee in doing the assigned task in the desirable
manner and will also help in the accomplishment of organisational goals.
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Process theory- it is used to analysis the physiological and behavioural process and also
identifies the individual needs which influences the performance of A.M Holding Ltd. The
organisation can motivate their employees with the help of this theory so get maximum output
from its employees. This includes-
Vroom's expectancy theory- this theory states that overall performance of employees
is directly dependent and inter- related with the individual factors such as skills, experience,
personality, abilities,etc. This theory will help the managers of A.M Holding Ltd in achieving
personal and organisational objectives. This will also motivate the employees in a appropriate
manner. This theory is further discussed below in three steps-
 Valence- It refers to the emotional orientations people have with the rewards. Some
employees in A.M Holding Ltd might have want extrinsic rewards while some may want
intrinsic rewards. The manager must know the needs and wants of the employees.
Different individual will get motivate with different things depending upon the needs and
wants. This will directly help in achieving the organisational goal and improving team
performance. (Nuttin, 2014).
 Expectancy- Employees in A.M Holding Ltd will have different expectations from the
organisation. If the expectations of the individual is fulfilled than they will automatically
gets motivated and will help in the accomplishment of organisational objectives.
 Instrumentality- It is the perception of the employees about what they will actually
receive and what they want. The manager of A.M Holding Ltd must give rewards to the
employees so that their needs are fulfilled and they are motivated. As this will directly
help in achieving the organisational goal.
Task 3
P3 Effective team opposed in ineffective team.
In the organisation team is defined as the group of people who have different skills which
are required to complete the assigned task or job. Team plays a vital role in the achievement of
organisational goals . This is because with the help of teams work is done in a coordinated and
effective manner. Teams are further divided into two types effective team and ineffective team.
Effective team is a team which helps the organisation in achieving organisational goals
and manages each and every task in the organisation. Effective teams is the major reason for the
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success of the organisation. A.M Holding Ltd must focus on making the teams more effective
because it will lead to the growth of the organisation.(Nuttin,2014). There are several
characteristics of effective team which are is discussed below-
 Establish company's goal- An effective team will directly help in achieving and
establishing the goals of A.M Holding Ltd. This is because these teams will help the
managers of A.M Holding Ltd in managing each and every task in an appropriate
manner and will also motivate their employees.
 Clear purpose- Effective teams will have clear purpose and motive in the organisation.
These teams in A.M Holding Ltd will know what are their major motives and purpose
towards the organisation and how these can be achieved.
A team is said to be ineffective when there is lack of communication, lack of focus, poor
leadership, negativity, etc. Ineffective team will lead to dis balance in the organisational
activities of A.M Holding Ltd. The characteristics of ineffective are discussed below- Errors and negativity- There will be more errors in the work if the team is ineffective. It
will also create negativity and demotivation in the employees or members of a team. The
managers of A.M Holding Ltd must focus on making the teams effective so that errors
can be eliminated.
 Job distribution- The work distribution in the ineffective team will not be properly
managed. There are chances that some people in A.M Holding Ltd might have heavy
workload and some might not. This is because of ineffective teams in the organisation
(Rowold, 2014).
Teams on the organisations are very important because it helps in increasing the performance of
the employees . There are some major differences between effective team and ineffective team
which are discussed below:
Basis Effective team Ineffective team
Underlying goals The objectives and goals will
be easily understood and
accepted by each and every
member of the team.
The goals and objectives will
not be clearly defined and
understood by the team
members.
Member contribution Each member will be actively There will not be active
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