Organisational Culture, Leadership and Employee Behaviour Report

This report delves into the intricacies of organizational culture, contrasting vertical and horizontal structures and their influence on business performance, using City College and Enterprise as case studies. It explores the impact of leadership styles, including transformational, transactional, and autocratic approaches, on employee behavior and motivation. Furthermore, the report examines the application of various motivational theories, such as those proposed by Taylor, Mayo, and modern systems, evaluating their potential usefulness for managers. It also investigates the dynamics of group behavior and teamwork, assessing the factors that contribute to effective collaboration and the impact of technology on team functioning. The report aims to provide a comprehensive analysis of these organizational aspects to enhance understanding and improve management practices.

ORGANISATIONAL AND
BEHAVIOUR

Contents
INTRODUCTION......................................................................................................................4
TASK 1......................................................................................................................................4
1.1. Comparing different organisational cultures and structures............................................4
1.2 Impact of the relationship between culture and structure on business performance........6
1.3 Factors that impact employee behaviour at work.............................................................7
TASK 2......................................................................................................................................7
2.1 Different types of leadership styles along with their effectiveness..................................7
2.2 Explaining organisational theory with regard to practice of management.......................8
2.3 Evaluating different approaches to management.............................................................9
3.1 Impact of leadership styles on motivation during change..............................................10
3.2 Application of various motivational theories at work....................................................11
3.3 Evaluating potential usefulness of applying a motivational theory on managers..........12
4.1 Explaining group nature and behaviour at work............................................................12
4.2 Discussing factors that impact development of effective teamwork..............................13
4.3 Evaluating the impact of technology on teamwork or team functioning.......................14
Reference List...........................................................................................................................14
Appendices...............................................................................................................................18
Appendix 1: Two-factor model................................................................................................18
Appendix 2: Expectancy Model...............................................................................................18
Appendix 3: Maslow’s Needs hierarchy..................................................................................19

INTRODUCTION
Organisational culture is the collection of customs, beliefs, practices and behaviours
found within the workplace environment. Every organisation possess culture unique to
themselves, which helps the company distinguish itself from others. As a result, organisations
develop distinct cultures by implementing philosophy and values. Present file is based on two
different case scenarios which are City College and Enterprise. This report covers
comparison of organizational structure and culture for cited firms. Further, it includes the
factors that night influence ways in which individuals behave at work.
TASK 1
1.1. Comparing different organisational cultures and structures
While organisational culture and structure may differ vastly across various
organisations, most of them follow set patterns or types as described by organisational
theories. According to research conducted by Lee et al. (2008), organisations may follow up
to three different types of organisational structures, which result in slightly different work
cultures.
Figure 1: Vertical organisational structure
(Source: Bbc.co.uk, 2017)
Arguably, the most traditional and commonly used is the vertical structure, which is often
referred to as a traditional hierarchy. Figure 1 above points out how a vertical structure looks
like, which immediately resembles a pyramid. In this type of vertical structure, a work culture
where interdependency and teamwork may manifest. Moreover, due to the hierarchal nature

of the structure, a lot of importance is placed on controlling and directing employing. City
College follows this structure and this allowed cited firm to control over its employees,
through a tall vertical hierarchy (Panmore.com, 2017). Unfortunately, this system limits
employee autonomy and creativity, which can make employees of City College feel
objectified like “cogs on a wheel”. That being said, since the Company is not technology-
based, rather is falls under educational sector, it makes sense to adopt a vertical structure
where employee management is essential (Foss et al. 2013).
On the other hand, horizontal structures are significantly flatter resulting fewer layers or
management levels as seen in figure 2. Fewer managers and figure heads result in a culture
where communication and autonomy is encouraged. Information from lower levels easily
flow to higher authority, resulting in better employee-company relationships. Enterprise
adopted a flat or horizontal structure, which has created a work culture where creativity,
autonomy and freedom to express is encouraged at every level (Panmore.com, 2017).
Enterprise’s strategy to adopt a flat structure is justified, considering the importance
technology and innovation plays in their products. Services and products provided by cited
firm are a direct result of creative work culture, something which only flat structures can
fosters
Figure 2: Horizontal organisational structure
(Source: Grevesen and Damanpour, 2007)
For culture of City College, they make use of power culture in which a single person
is responsible to control all other employees. It is important for all staff members to make
sure that they take up appropriate steps that are directed by the person who is provided with
power. On the other hand, Enterprise make use of task culture in which all the employees

have proper understanding about the steps that are required to be followed and it is required
to be completed within speculated time period.
Differentiate between tall and flat structure
Basis Tall Structure Flat Structure
Span of control Tall structure has a Narrow
concept of span of control.
It has wide span of control
Formal and informal relations Tall structure follows
informal relation
Flat structure follows formal
structure
Control of subordinates There is a close control
system between subordinates
Flat structure has loose
control system between
subordinates.
1.2 Impact of the relationship between culture and structure on business performance
According to Olson et al. (2005), it is difficult to clearly distinguish organisational
structure from culture, simply because both elements are interdependent and hold an
inseparable relationship. Some believe that culture and structure are one, while some theorist
suggest otherwise. The impact of this relationship is another unknown in the field of business
management studies, simply because when viewed individually culture and structure do not
seem to influence business performance. For example, when City College performs well it
often results in development of strong culture and values within the firm. In addition,
structure acts as a framework to position people within the company; it alone cannot lead to
positive business performance. However, the relationship between these two elements does
influence business outcomes.
Relationship between culture and structure on business performances
Organisational culture leads to the creations of structure by virtue of beliefs and
values. Hence, an organisational culture which believes in employee freedom, will tend
construct a structure where employees are given freedom to behave, act and work in a manner
that suits them the most. As a result, the relationships between structure and culture can bring
the following benefits, with regard to business performance:

 Effective employee management
 Raises employee morale and overall productivity
 Promotes teamwork
 Encourages employee empowerment
 Directs the company to operate in manner that is most suitable to its capacity, gaols,
objectives and business orientation
 Saves time by reducing project delays
 Helps the company make better use of internal resources
(Zheng et al. 2010)
1.3 Factors that impact employee behaviour at work
Leadership is an important behavioural determinate at work. Since, team leaders or
managers are potential role models at work; they tend to set examples, which subordinates
often follow. While leaders can inspire employees to strive for excellence, they can also have
a negative impact on employee behaviour. For example, a manager often coming late to work
will motivate his/her team members to do the same. Thus it required the leaders of both City
College and Enterprise to focus on developing strong relationship with employees.
Work culture: The next factor that affects behaviour at work is work culture. For
example, a work culture that promotes equality will result in employees respecting and
trusting one another. Moreover, a positive work culture can make employees feel at ease,
giving them a better sense of job security. As a result, employees become more committed to
the organisation and even stand by it during times of crisis or conflict.
Communication: also affects employee attitudes and behaviour. If instruction are
not communicated clearly or if communication barriers exists, then it can leave employees
“in the dark”. In other words, they feel left out, neglected and objectified. As a result, they
isolate themselves, speak less and manage problems themselves. While, these factors
significantly affect how an employee behaves at work, these forces external; hence they can
be managed effectively (Furnham, 2005). With cited companies, it requires to have strong
interaction among workers so that they are able to perform with their full efficiency.

Personality Issues : Internal factors like employee personality and personal life
issues exists within the individual, making it much difficult to manage. Hence, even if
external factors are positive, the employee can continue to behave in a negative manner. For
example, an employee with short temper will often argue and fight with co-workers even
without any substantial or apparent reason. Likewise, problems in personal life can
demoralise employees at work (Macky and Boxall, 2007).
TASK 2
2.1 Different types of leadership styles along with their effectiveness
Transformational leadership is arguably one of the best types of leadership and
most valued, as it can literally transform employees overtime. As the name suggests, this type
of leadership style focuses on developing subordinate skills and attributes. Managers
following transformational leadership focus of nurturing employee growth and transforming
them into individuals that perfectly fit into the organisation. This often results in high levels
on intrinsic motivation, something that rewards and money cannot satisfy. On the other hand,
leaders that follow transactional leadership style are seen to rely on “trades”. In other
words, transactional leader mostly offer rewards to employees for positive performance.
While, such leadership cannot satisfy intrinsic motivation, extrinsic needs like money are
taken care of effectively (Zagorsek et al. 2009).
Autocratic leadership is considered the classical approach to managing employees, through
authority and power. This is seen as an extremely negative leadership approach in modern
times, as it ignores employee feedback, suggestion, autonomy and freedom at work.
Moreover, those not following orders after often punished through salary cuts and layoffs.
That being said, it is extremely useful when majority of staff are new recruits or when
employees disrespect higher authorities regularly. This theory is used by Enterprise and this it
makes workers demotivated. While, a manager who adopts a bureaucratic type of
leadership will often direct subordinates according to protocol or rules. As a result, the
manager will carry out all tasks according to policy or procedure. This brings a major
limitation to leadership quality, as managers are unwilling to compensate, adjust or change
according to needs (Somech, 2006). This is a type of style that is applied by City College.
Among these, at City College, individuals should follow Autocratic leadership and
this is effective enough to make develop strong relationship with workers. On other hand,
Enterprise should make use of democratic leadership style as it helps to make the business to

identify the issues that are faced by customers and appropriate steps can be taken to
overcome them.
2.2 Explaining organisational theory with regard to practice of management
Classical theories
Classical theorists like Taylor, Weber and Fayol developed management practices that held
employees as being machines or tools. Their views suggested that an organisation’s
efficiency could only be improved if its parts or employees were made more efficient. As a
result, there was a lot of emphasis on co-ordination and specialisation. Moreover, these
theories also regarded employees at top levels as being most important with regard to success
of the organisation. When the theories are assimilated as one, the four pillars of
organisational theory manifest as division of labour, scalar/functional processes, span of
control and structure (Shafritz et al. 2015).
Neoclassical
Neo-classical theorist George Mayo placed importance on human beings for the first time.
According to Mayo’s theory, mechanical and physiological variables influenced how an
organisation functions. Moreover, studies conducted by Mayo pointed out that, physiological
variables alone did not influence human behaviour. Hence, Neo-classical theorists viewed the
organisation as social system, where motivation, rewards and teamwork were considered
necessary elements of the management system (Heugens and Lander, 2009).
Modern theories
Lastly, modern theories like the systems approach and contingency approach were developed
later on. These theories laid the foundation for modern organisations to adopt, and is still
followed today. According to modern organisational theories, the organisation is a system
that possess various sub-system elements like processes, roles, codes of conduct, structures
etc. Siler a modern theorist suggested that organisation’s possess four elements;
organisational inputs, technological inputs, human inputs and social norms or structures
(Fao.org, 2017).
Higher archival theory
This is the another theory of management business, that helps to build up the curate
data presentation. It helps to record different records of data and evaluate recorded material

and be able to access them. This theory of management helps to achieve or to make the
proper effective theory of presentation. It also helps to decontrol the matter and developing
goals. It helps to maintained the reliability, usability and integrity in performance making
task.
2.3 Evaluating different approaches to management
The scientific management approach is based of a classical theory, which was
developed by Taylor in the mid-1940s, where science was incorporated into management
practices. According to Taylor’s approach, science should replace traditional rules that
govern management practices. Even while selecting, recruiting and training employees, the
theory suggests that scientific analysis needs to be incorporated by following models or
previous scientific results. In addition, cooperation between workers and management should
supersede conflict management to ensure that work is carried out according to scientific
principles (Waring, 2016).
The social systems approach on the other hand, is neoclassical approach that places
importance on social relationships and cooperation between teams. While the human
relations approach takes the social systems approach to the extreme, by laying emphasis on
the satisfaction of employee social and psychological needs, along with guaranteeing them
autonomy, self-control and self-direction (Shafritz et al. 2015).
One popular modern approach to management is the systems approach. The systems
approach divides the organisation into several subsystems, where environmental changes
could influence business functioning. In terms of management, the approach resulted in
expansive and detailed frameworks, which could be used to diagnose problems, direct
employees and accomplish tasks. Although such an approach is complicated and expensive, it
often led to better management planning and execution (Hatch and Cunliffe, 2013).
Company required to took social system approach as it will help to consider in
developing relationship with students and staff. When this is done, then it becomes
favourable enough to attain the set of goals in effective manner. On the other hand,
Enterprise should make use of human relations approach as it help to understand the
problems that are faced by workers and as per the findings made steps can be taken.
3.1 Impact of leadership styles on motivation during change
A transformational leader possesses supportive, charismatic, empathic and inspirational
qualities that help motivate employees during times of change. As a result, they instil

confidence and encourage followers to accept challenges that change brings. Thanks to the
positive nature of transformational leadership, leaders or managers are constantly working
with their subordinates to help them make improvements or adopt new techniques in order to
accommodate the change. During times of change, transactional leadership ensures that
employees adhere with consistency and standards. The instrumental nature of this leadership
style allows employees to be rewarded for meeting the new expectations during change. That
being said, change is a gradual process within an organisation, where rewards or exchanges
may only be sufficient to motivate employees during the earlier stages. Later on, however
such rewards lack the supportive and engaging nature that comes with transformational
leadership (Holten and Brenner, 2015).
While Bureaucratic leadership is arguably the least affective during organisational change,
especially when the change incorporates massive overall haul of rules and regulations. The
rigidity associated with bureaucratic leadership is primarily its downfall, as it lacks people-
orientation and supported needed during times of change. Lastly, autocratic leadership a
style which result in either positive or negative outcomes during organisational change. Since
autocratic leaders believe in authority and power, employees are disregarded during the
change. As a result, employees must deal and overcome problems themselves out of sheer
necessity. Moreover, this can result in stress and anxiety build-up amongst those unable to
cope with the change (Cameron and Green, 2015).
All these leadership styles have their own set of advantages and disadvantages. It is
important taken up appropriate steps in which proper analysis should be done so that
appropriate leadership style is used. When use of leadership style is not done properly, then it
causes negative impact over the business. More specifically, use of autocratic leadership
should be done by City College and Enterprise should use democratic leadership.
Impact of leadership styles on motivation
 it provides better performance of individual work performances.
 It helps to engage the work capabilities of employees.
 It helps to give good profitability goals.
3.2 Application of various motivational theories at work
Two-factor theory

When applying Herzberg’s motivation theory within the workplace, factors such as
pay, policies, benefits, environment, status, relationships and job security are important but
not necessarily motivational factors (refer to appendix 1). However, in order to motivate
employees the Company must give them adequate recognition, growth opportunities, sense
of purpose/achievement, and added responsibility (Zeffane, 2010). This helps company to
motivate employees through both factors eith from motivation or hygiene factor.
Expectancy theory
When applying Vroom’s expectancy theory, it is evident that employees may be
motivated when their expectation are met (refer to appendix 2). For example, expectance of
receiving a bonus if targets are achieved or expectancy of praises for achieving high quality
work. Moreover, the management can utilise measuring techniques like counselling or
psychological testing to understand which type of award an employee prefers; thereby
designing intrinsic or extrinsic motivation accordingly. While, this give positive impact on
the employee performance to meet employee expectation thee management should provide
training, growth, resources or even supervision if needed. Lastly, apart from fulfilling the
promises of rewards, the management could communicate their intension to do the same
(Petri and Govern, 2012).
Hierarchy of Needs
Maslow’s need theory is arguably one of the most popular motivational theory. When
applied at work, the theory suggests that employees possess different types of needs, which
may manifest at different stages of their lives (refer to appendix 3). At work safety, social,
esteem and self-actualisation needs should be pursued. Since, each of these needs occur at
different levels, the company must work to move employees from lower to upper levels of the
hierarchical pyramid. Likewise, basic needs or needs lower in the hierarchy must be met first,
in order to purse motivating higher levels needs like esteem or social needs (Kaur, 2013).
This helps to full fill the individual needs and give good impact on the overall development
process.
Both these motivational theories that are highly effective to make employees and staff
member of City College and Enterprise to boost and to make perform with their full
efficiency.