Organizational Behavior Report

This report analyzes the organizational structure and culture of ASDA PLC and British Airways, examining their impact on employee behavior. It discusses various leadership styles (participative and transformational), organizational theories (systems theory, human behavior approach, and decision theory approach), and motivational theories (Maslow's hierarchy of needs, expectancy theory, and McGregor's X and Y theory). The report also explores factors influencing employee behavior, effective teamwork, and the impact of new technology on the workplace. The analysis reveals how ASDA's clan culture and participative leadership contribute to employee satisfaction and productivity, while British Airways' market-oriented culture and transformational leadership focus on results and high communication. The report concludes by emphasizing the importance of understanding employee behavior and utilizing appropriate leadership styles and motivational theories to enhance organizational effectiveness.

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1.1.........................................................................................................................................3
P1.2.........................................................................................................................................4
P1.3.........................................................................................................................................5
TASK 2......................................................................................................................................5
P2.1.........................................................................................................................................5
P2.2.........................................................................................................................................6
P2.3.........................................................................................................................................6
TASK 3......................................................................................................................................7
P3.1.........................................................................................................................................7
P3.2.........................................................................................................................................7
P3.3.........................................................................................................................................8
TASK 4......................................................................................................................................9
P4.1.........................................................................................................................................9
P4.2.......................................................................................................................................10
P4.3.......................................................................................................................................11
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................13
Factors That Promote Effective Teamwork. 2012. [Online]. Available through: <
http://smallbusiness.chron.com/factors-promote-effective-teamwork-1932.html >. [Accessed
on 30 May 2014]......................................................................................................................13

INTRODUCTION
Organizational behaviour refers to the field of studying human behaviour of people
working in a firm. It establishes the relationship between behaviour of people and company.
The motive behind this is to maximise the total output from employees. It promotes effective
interaction within groups as well as coordination among workers (Hosie and Smith, 2009).
In this report, there will be a discussion on organizational structure and culture of
ASDA PLC and British Airways. The impact of this on employee’s behaviour will be studied
in this. Different theories of organization as well as effectiveness of leadership styles will
also be focused (Sevi, 2010). Here, importance of motivational theories and effective
teamwork will be one of area to be studied.
TASK 1
P1.1
ASDA is having Divisional structure in its organization. Reason behind this structure
is that it is having a lot of layers as well as lots of levels. There are plenty of people who
report more than a person before it reaches to the final stage. In this structure, each level is
controlled by a person. Divisional structure is able to reduce confusion and biases. This
structure in generally applied on large firms and ASDA is one of them (Blomme and Lintelo,
2012). It is a tall hierarchical structure. This firm is following Clan oriented culture in which
there is a family like environment. Here, superiors focus on mentoring people in right
direction so as to make them doing things in a team. People are more satisfied and happy in

this culture as there they feel like home. However, there are some disadvantages too like it is
a low paying structure for employees as number of people are very high. Sometimes people
may take their work for granted which has adverse effect on performance of firm (Analoui,
2013).
British Airways is following Hybrid organizational structure. It normally used in
those firms where the environment faces substantial uncertainties. Main benefits behind this
are organization is having functional expertise and efficiency. There is flexibility in divisions
as well as ability to adapt them as there are a limited number of employees with specialised
skills in each branch. A demerit behind this is that there can be conflicts arise between
corporate departments and units (Jung and Hong, 2008). It is one of the short hierarchical
structures. Companies operating globally generally use this. British airways are following
Market oriented culture that is totally focussed on results. Here, main privilege is given to
competition and achievement. Getting job done is the main thing in this culture.
P1.2
As ASDA is having divisional structure, it has an important role on its organizational
performance. This structure has a lot of levels in it which leads to smooth functioning in the
firm. As all levels are having a person who has the responsibility to control all activities of
that department, functions in ASDA are very systematically followed. The flow of
information is very fast in this firm. There is no chance of missing any data (Chou and
Pearson, 2012). Every person is well known about his roles and responsibilities. As each
employee is having his senior on him who explains him how to perform a specific task, it
leads to perfection.
There is a relationship in between ASDA organization structure and culture. Culture
plays a vital role. As company is having clan culture, people feel free to share their views and
thoughts. It creates healthy environment in organization. According to the culture,
subordinates interact with their superiors without any hesitation. It leads to healthy and
effective communication (Bianco and Schermerhorn, 2006). The culture and structure which
ASDA is following has major benefit of high level of performance of employees as they are
being trained by their mentors for this. This ultimately brings more production in company.
Reason behind this is that, people are satisfied with their working conditions as well as work
culture. It makes them put their efforts to their highest potential. Culture of ASDA proves to
be helpful in promoting divisional structure in company.
So there is a high impact on performance of ASDA through its organizational culture
as well as structure. It is enjoying various advantages through this as it has the ability to

reduce retention rate in company. It is successful in making their people stay in firm for a
long period of time. It helps in maintaining stability in organization (Thompson, 2003).
P1.3
There are many factors which influences employee’s behaviour of ASDA at their
work. Some of them are like: Abilities and skills – Every person is different from the other. His physical ability
also differs. Skills of people are not same as all are specialised in different fields as
well as has unlike experience. In ASDA, these factors have their impact on
employee’s performance. Example – an employee who is well skilled and has
expertise in the field of sales can perform his task very effectively (Nelson and
Cooper, 2007). While if a person who is qualified in field of human resource is given
with targets of marketing cannot work effectively. It would lead to losses in
company. That is the reason skills, abilities and knowledge of a person plays an
important role in organization. ASDA needs to coordinate with their employee’s
skills so as to take maximum advantage from that. It is required from the firm that it
understands the experience and knowledge of a person and then delegate authorities
to him in accordance with that. It will help the company to get maximum returns with
positive results.
 Attitude and personality – An individual’s attitude and his personality has also its
affect on their behaviour at work. How a person responds in a specific situation plays
an important role in ASDA. Even there are some innate traits of every individual
which shows how a person will be adjusted with others. Example – An employee
aggressive and rude by his nature cannot communicate well with others in firm.
People would not feel comfortable in working with him (Aquinas, 2006). ASDA
needs to understand the personality and attitudes if employees so as to have an idea
about their perceptions towards things as it will help in identifying their expectations
from firm. As according to what they anticipate, they would behave accordingly.
TASK 2
P2.1
There are different leadership styles used in organizations. According to the nature of
business, an organization adopts its leadership style. ASDA is using participative leadership
style by its CEO in which value is given to the inputs of employees. It can also be referred as
democratic style of leading people. In this, people are given with equal opportunity to

participate in all activities of organization as well as in decision making (Sharma, 2013). This
style makes employees free to express their ideas. It is helpful in making people understand
and adopt change whenever required. At times when ASDA CEO’S make some changes in
its organization, this style proves to be very supportive to make employees comfortable with
that. In spite of having so many merits, in this style, sometimes employees get over confident
(Factors That Promote Effective Teamwork, 2012).
In British Airways, transformational leadership style is being used. In this, CEO gives
their main focus on high levels of communication from management. Such a privilege is
given to effective communication so as to achieve goals on time. In this organization, CEO
always tries to motivate employees in order to increase productivity (Hosie and Smith, 2009).
Employees feel highly motivated here. Transformational leadership needs high involvement
of management so that goals of the firm can be achieved on time. The main benefit behind
this style is that there is no burden of work on people as equal responsibilities are delegated
to them.
P2.2
The number of organizational theories is there which a firm follows depending upon
its nature of business. Likewise, ASDA is following systems theory in which system of the
firm is sub divided into further departments. All these sub systems are connected with each
other through proper communication as well as decision making. This theory is totally
focussed on the divisional structure followed in ASDA and makes efforts accordingly
(Blomme and Lintelo, 2012). It works so as to make the organizational structure strong
enough to adapt with the changes of environment. For a management to work effectively, it is
needed to have appropriate theory within it. Systems theory will lead the firm to earn higher
profits with increased productivity. Environment in which ASDA is running its business is
uncertain in nature. To survive with these changes and brings stability, systems theory is
highly profitable. It reduces any sort of confusions by specifying the roles of every individual
(Analoui, 2013). ASDA is enjoying heavy revenues through this.
P2.3
Various management approaches are there which are being followed in organizations.
ASDA follows human behaviour approach. In this, human behaviour is studied in order to get
things done from the employees. This retail organization thinks that for having work done, it
is necessary to understand behaviour of people working there. Its main stress is on motivating
and encouraging employees to increase the productivity (Sharma, 2013). It also emphasizes
on maintaining good relations among members of the firm. ASDA gives very much

importance to its people and provides them effective leadership as well as participative
management. Employees feel highly recognized by this which ultimately results into their
satisfaction. But there is one demerit also that is equating management with the behaviour of
employees is unsustainable (Aquinas, 2006).
In British Airways, the decision theory approach is being used. In this management is
basically decision making. Members of this firm are decision makers as well as people who
solve issues whenever occurred. According to this approach, organization can be considered
as a centre where various decision makers are present. In this company, the levels of
managers are decided in accordance to the important decisions they made (Griffin Moorhead,
2009). Effectiveness of working of British Airways gets affected by quality of decisions
taken there. It explains managers how to perform their functions effectively. In spite of
having so many benefits, it has one cost also, that is, it does not take the complete view of
management. Decision making is very essential for British Airways but it is not everything,
management is much more than that (Minor, 2005).
TASK 3
P3.1
In ASDA, if autocratic leadership style is used, the employees would feel very
restricted. Reason of this is that, presently the participative leadership style is being used in
the firm in which employees are free to express their ideas. So, in this case, if they are being
directed through autocratic way, they would not feel satisfied and their confidence would go
low (Thompson, 2003). This leadership style has some merits like people cannot deviate from
their goal as they are being supervised by their superiors on a regular basis.
If ASDA applies transactional theory in its organization, manager has to assign
employees with some tasks and then reward them on their completion. Here, managers set
predetermined goals which has to be accomplished through employees. This style proves to
be very effective in promoting motivation among employees (Bianco and Schermerhorn,
2006). Rewards like bonus will make them to put their efforts to their highest potential level.
As per the current business trends, the management of ASDA has applied significant
changes in leadership style of company. Company has adopted the participative leadership
style therefore management is able to involve workers in decision making process. In order to
manage this change, the management of ASDA has to develop an efficient communication
system with the help of latest communication tools such as emails, mobile messages etc.
Through which employees can provide their feedback on various management strategies. In
addition to that management has to restructure the decision-making process in decision

making process in which top authorities of ASDA can take suggestion and views of
employees. Furthermore, business entity needs to develop an appropriate response team that
would provide appropriate responses on employees quires (Jung and Hong, 2008). All these
elements leads significant impact on motivation level of workers. This is because employees
are able to provide their suggestion and feedback of various business operations. In addition
to that proper restoration of employees issues boosts up morale of staff members. Therefore,
participative leadership is considered as best tool to enhance employee motivation.
P3.2
According to Maslow’s hierarchy of motivation theory, there are five levels of basic
human needs. In ASDA, if it is applied, basic requirements of employees will be satisfied. As
this theory focuses on physiological, safety, social, esteem and self actualization needs, on
completion of them, people feel satisfied. If these needs are being fulfilled by the firm, it
would enable it to retain their employees (Chou and Pearson, 2012).
Expectancy theory is one which states that employees always choose that work which
he expects to be beneficial for him. In ASDA, it is the responsibility of managers to
understand the expectations of employees. If it is well known that what actually employees
want, it would be easy to fulfil their needs accordingly (Jung and Hong, 2008).
If ASDA applies McGregor X and Y theory in its firm, it will help it to understand
employees in two ways. X theory says that employees sometimes dislike their work and tries
to avoid that. So, for this they have to be punished. In this case, people work because they are
afraid of being punished. Y theory says there are people who work because it provides
satisfaction to them. These are people are being rewarded for their work (Analoui, 2013).
This theory would be helpful to create a healthy environment in a firm.
ASDA should apply Maslow’s hierarchy of motivational needs in its organization as
it will fulfil the employee’s needs to the fullest. By following this, it can retain its employees
for a longer period of time. It would bring stability as well as profitability so as to stay in
market in a long run (Sevi, 2010). In this process, management of ASDA can determine basic
salary and wasges of staff member as per the basic of needs of staff members. In addition to
that management needs to provide a safe work environment and appropriate insurance plan
with reference to safety needs of employees associated with lower management. Friendly
work environment has found very effective for attainment of social needs of workers. At the
end, by providing proper recognition, promotion and growth on extra-ordinary achievements,
retail organization can meet self-esteem and self-actualization needs of middle and upper

management (Blomme and Lintelo, 2012). All these elements have played important role to
influence motivation of staff.
P3.3
Motivation is an important tool that is often under-utilized by managers in today's
workplace. Managers use motivation in the workplace to inspire employees to work, both
individually and in groups. Produce the best results for business in the most efficient and
effective manner. It is assumed that motivation had to be generated from the outside, but it is
now understood that each individual has his own set of motivating forces (Blomme and
Lintelo, 2012). It is the duty of the manager to carefully identify and address these motivating
forces.
As per Hertzberg’s motivation theory, ASDA manager have an adequate
understanding about employee attitude and level of job satisfaction. According to this theory,
there are two factors which are motivating employees. These are motivators and hygiene
factors. With the help of this theory, ASDA managers are becoming highly motivated to
accomplish their goals on time. Motivators refer to things like recognition, responsibility etc.
These factors are encouraging the managers and other employees of ASDA to perform more
with their highest potential in order to get that (Factors That Promote Effective Teamwork,
2012). Hygiene factors like salary, fringe benefits etc that are helping people of this
organization in providing satisfaction to them. Because of this, managers of this firm are
highly satisfied that leads them to stay in it for a long period of time.
For application of Hertzberg’s motivation theory in ASDA, the management of
company has to carry out detail analysis of work environment, hygiene conditions etc. that
plays important role for creation of positive image of company. In addition to that managers
of ASDA has to identify such as factors that boost up morale of workers that could be
monitory and non-monetary (Blomme and Lintelo, 2012). In this process, management has
to carry out a employee survey.
TASK 4
P4.1
Groups fall into two categories, formal and informal. Formal groups are those which
have been given authority by the organization. Informal groups tend to be more social in
nature. Nevertheless, both are approved by ASDA in order to stimulate innovation or increase
morale of co-workers (Group Dynamics: Basic Nature of Groups and How They Develop,
2011).

A task group is a formal group created for specific purpose in this organization. For
example: it prepares master plan for ASDA plc task and schedules. It delegates time and
responsibilities of employees accordingly. This team creates to identify and resolve problems.
Task groups generally work for ASDA toward a definite project completion date in
accordance with well defined parameters and within set budgets (Types of Group. 2011).
People who work in formal groups usually perform their duties and responsibilities with more
sense of responsibility as these are assigned to them for accomplishing some goals of the firm
that are mandatory to follow. However, employees in formal groups most of the time used to
feel stressed out as they cannot delay their work as per they desire due to the targets given to
them by company.
ASDA has been making use of two categories of informal groups. These are
interest and friendship in nature. For ASDA plc these groups make coordination in all
departments as well as take care of employee rights. It provides them suitable conditions to
work. An interest group facilitates employee pursuits of general concerns and friendship
group evolves to meet employees' social needs that are working for ASDA (Sharma, 2013).
The leaders in both groups may be different and appointed by the organization. Employees
who used to work in informal groups are generally behaved in a positive manner as they are
more satisfied with their team members than that of formal groups. They perform their tasks
with high level of willingness as they used to be in there comfort zone which leads them to
get highly satisfied with their working environment.
There are various factors which influences the behaviour of group work of ASDA.
Some of them can be discussed as follows: Leadership: ASDA plc managers and leaders play an important role in influencing the
behaviour of individuals at workplace. It is the responsibility of leaders to set a
direction for team member. They further guide and help in their everyday operations
and encourage team to obtain new skills and upgrade knowledge (Griffin and
Moorhead, 2009). Work culture: Employees need to feel comfortable at workplace for them to stay
positive and happy. Rules and regulations should be same for everyone. Transparency
at all levels is essential for origination. For example, ASDA has tried to provide the
best possible culture to its employees with their desired facilities (Minor, 2005).
 Effective communication: ASDA plc managers need to communicate effectively with
team members. The moment, employees feel left out, they lose interest in work. That
affects in organization’s major decisions (Advantages and Disadvantages of Virtual
Teams, 2010).

P4.2
Many factors are there which helps in promoting as well as inhibiting development of
effective teamwork among employees in ASDA. Some of them can be explained as below: Communication: It would be very easy to do anything for ASDA if team members
could communicate with each other. It is also a necessity for ASDA’s manager to
provide ideas and others to understand complex concepts. For employees to emerge as
leaders that can more powerfully promote productivity within the organization is also
needed (Thompson, 2003). Positive approach: ASDA plc believed that organization is getting success, probably
because employees would be putting a sincere effort. To have this, it makes various
initiatives for maintaining their willingness to work. They were working toward goal
of company. A positive attitude of team make superior environment for organization. Trust: Trust is one of the essential factors that promote effective teamwork. ASDA’s
implement many valuable strategies and methods that help bring team members
toward task completion. With trust, employee can share as much information with
each other, and company can take risks (Bianco and Schermerhorn, 2006). Unclear goals: A team is created to achieve object within the workplace. Those goals
can be for a specific project, the ongoing process that defines the department's
responsibilities. If objects are not present clearly by ASDA, then the team cannot
work effectively. Staff members are unclear about what they are supposed to do in
company (Chou, and Pearson, 2012).
 Lack of managerial involvement: ASDA’s manager has been creating teams of
qualified members in order to complete predetermined tasks or projects. If manager
cannot find the time to be involved in team the atmosphere of effective teamwork is
exposed.
P4.3
New technology has been injected into the workplace at an exponentially increasing
rate over the last few years. ASDA plc fined new technology as the means to increase profit
margins and to remain competitive in a rapidly evolving marketplace. It provides due
emphasis on new techniques as through this only, it can create innovation which will lead it
to be in market for a longer duration. New implementation of technology has led organization
to an increasingly mobile workforce. Cellular phones allow a new kind of team to emerge
(Jung and Hong, 2008). Virtual teams can be formed to serve ASDA plc. E-mail,
teleconferencing, video conferencing, and new emerging technologies are enabling

department of company around the world to communicate and collaborate rapidly and
efficiently. However, on a negative front there are so many ways by which technology can
distract employees at work (Blomme and Lintelo, 2012). The use of social networks at work
can cause distraction and it affects the productivity of employees. It is expensive to buy
technology as well as costly to maintain.
CONCLUSION
From the above report, it can be concluded that in ASDA, to make its functioning
smooth and effective, it is necessary to study behavior of employees. In influencing behavior
of people working there, culture also plays an important role. As this organization is having a
very friendly and family like culture, employees are highly satisfied. By using democratic
leadership style, ASDA can motivate their people to give their ideas in decision making. It
would make them more confident and satisfied (Hosie and Smith, 2009). Along with this, it
will also enhance the level of productivity as well as profits to the company. This firm is
using latest technologies which create interest of people in their work. Employees feel stress
free by using them.

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