Organizational Behavior: Leadership, Motivation, and Employee Impact

This report on organizational behavior delves into various aspects of workplace dynamics. It analyzes different organizational structures, highlighting the impact of organizational culture on effectiveness and the significance of learning for employee performance. The report evaluates teamwork's role in improving employee effectiveness and examines how diverse leadership behaviors influence organizations. It also covers the processes and outcomes of change management. Furthermore, the report evaluates leadership behavior theories, work relationship theories, and the relevance of organizational culture theory in developing organizational effectiveness. The report also analyzes the benefits and issues of employee involvement in decision-making and explores different ways to motivate employees. Finally, it analyzes how motivational theories can inform employee motivation and evaluates how a chosen organization motivates its employees, drawing comprehensive conclusions about the interconnectedness of these factors in fostering a productive and effective work environment.

ORGANIZATIONAL
BEHAVIOUR

CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1........................................................................................................................................3
1.1Analysis of characteristics of different organizational structures.......................................3
1.2 Impact of organizational culture on its effectiveness.........................................................3
1.3 The impact of learning on the effectiveness of employees................................................4
1.4 Evaluation of how working in team can improve effectiveness of employees..................4
1.5 How different leadership behaviors impact on organizations............................................4
1.6 The process and outcomes of change on the effectiveness of employees..........................5
TASK 2........................................................................................................................................5
2.1 Evaluate different leadership behavior theories.................................................................5
2.2 Theories related to work relationships and interactions.....................................................5
2.3 evaluate the relevance of organizational culture theory in developing organizational
effectiveness.............................................................................................................................6
TASK 3........................................................................................................................................6
3.1 Analyze the benefits and issues with involving employees in organizational decision
making......................................................................................................................................6
3.2 explain different ways to motivate employees...................................................................6
3.3 Analyze how motivational theory can inform employee motivation.................................7
3.3 evaluate how a named organization of your choice motivates its employees....................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organizational behavior is defined as the behavior of human either individually or in
groups in an organization. Organization behavior impacts on effectiveness of organization. Of all
the resources, human resources are mandatory and the behavior of human is unpredictable and
that is why the study of organizational behavior is necessary. Organizational behavior or OB
focuses on three levels of analysis- individual, group and organizations. This study includes the
analysis of different organizational structures and the culture of an organization impacts the
effectiveness of organization. Also, impact of teamwork on organization will be evaluated.
Further, different effective leadership theories will be studied in this. Moreover, motivational
theories for development of organization will be analyzed.
TASK 1
1.1Analysis of characteristics of different organizational structures
Depending on the objectives and culture, organizations are structured in various types. The
performance and operational manner of an organization is determined with the help of its
structure (Hogg and Terry, 2014). Some of the organizational structures includes flat, tall,
centralized and decentralized. Main features of organizational structures are as follows-
 Division of labor: In this organizational structure the work is divided into small
components so that the employees become specialist in their task.
 Authority: It is right to command. This is right of individuals to make decisions.
 Coordination: The synchronization of individual efforts and group effort for attaining
the efficiency of organization is coordination type of structure.
 Size of hierarchy: Depending upon the size of hierarchy organizational structure is
divided into two subgroups- tall and flat.
Tall structure- A tall organization has many levels of management and supervision.
There is a long chain of command in this structure. In tall structure there is narrow
span of control i.e. employees can be closely supervised. Also, the functions of each
layer will be different and effective (Ashkanasy, Becker and Waldman, 2014.).
Flat structure- A flat organization has few levels of management and supervision. The
main reason behind flat organization structure is provide employees with larger part
in decision making process and also this structure leads to benefits such as lower cost.
1.2 Impact of organizational culture on its effectiveness
The culture of organization is closely linked to the development of organization. The
culture of an organization can be its strongest asset or its biggest liability. Culture of an
organization highly influences the performance of an employee. Culture of organization should
be employee-friendly and at the same time it should be company’s environment friendly too.
Also, the culture of organization should depend on the nature of working of organization. For
example- adaption of innovativeness in high tech industry will boost up its performance.
Organization culture is more effective way of controlling and managing human behavior than
rules and regulation of organization (Klotz and Neubaum, 2016.). When new employees join

organization, the way they behave is result of organizational culture. If culture of an organization
involves steps such as involvement of all employees in decision making, give opportunity to
every employee to speak up will lead to a healthy culture of your organization and this will help
employees to gain confidence which is good for efficiency of organization itself.
1.3 The impact of learning on the effectiveness of employees
The employees get highly influenced by the organizational culture. The communication
between and within the departments of organization, behavior of high level authorities with the
employees, role and nature of work, wages provided to the employees, environment of
organization, relation between employees, etc. are all those factors which describes the culture of
an organization (Cortina, 2016). And this culture of organization highly impacts the effectiveness
of employees. Also, by knowing the culture of organization, employees can work according to
the known conditions which will help in attaining comfort level of the employees. And this
comfort will increase the efficiency of work. Further, learning of culture helps in building
confidence of employees which is necessary for the best performance of an individual.
Moreover, culture of an organization also impacts the recruitment process and this will directly
influence the effectiveness of employees. Thus, above were the factors which influence the
effectiveness of employees.
1.4 Evaluation of how working in team can improve effectiveness of employees
Teamwork is always considered to be more effective as compare to the individual work.
In teamwork, the different ideas of members merges and an effective combined outcome is
obtained. The understanding between members is a sign of good team and this understanding
leads to selecting a fair idea which is liked by everyone. Also, team resolves any ego and
grudges issues among employees (Greenberg and Colquitt, 2013). Employees learn various
things in teamwork like how to work collectively, how and when to imply each other’s idea, how
to leave ego and grudges aside and work in unity, etc. Also, time required in teamwork is less as
compared to individual work, thus employees can understand the value of time management and
this time factor is the most important tool of an organization. Further, while working in team
employees will compete with other teams and this will lead to individual’s effectiveness in their
work role.
1.5 How different leadership behaviors impact on organizations
Leaders have the unique potential to serve as an energizing force within organization
today and that is why understanding how a leader’s behavior affects the organization is of
primary interest. Different leadership behaviors directly influence the communication and
productivity of an organization. Leadership behavior used by the organization can also effect the
effectiveness of employee input (Borkowski, 2015). A democratic leader will accept the inputs
from employees and apply them in work progress and on the other hand some autocratic leaders
may completely dismiss the employee input as they don’t like any changes in their leadership
style. Also, leadership style directly influences the morale of an employee. Autocratic leaders
that do not seek input from employees tend to alienate their employees and suppress employee’s

involvement whereas democratic leaders are the one who involve employees and make them feel
that they are also part of company’s success.
1.6 The process and outcomes of change on the effectiveness of employees
The process of change is well explained by the Levin’s three step change model; this
model includes three steps of change and these are- Unfreezing: getting ready for change by
minimizing the resistance offered in changes. Moving: in this phase the changing of individuals,
groups, tasks, structure, etc. takes place. This step states the making of change. Refreezing: this
phase stabilizes the change or the new change to make permanent. Organizations often resists
change in their functioning as it creates ambiguity and also the concern of personal loss is
associated with change (Bolino, Klotz and et al 2013). A belief associated with change is that it
might not be in the organization’s best interest also resists organizations to imply change. Also,
cause of resistance of change is the belief that change is not compatible with the goals of the
organization. Further, fear of losing status, money, authority, friendship and other benefits resists
the change.
TASK 2
2.1 Evaluate different leadership behavior theories
Leadership is one of the most important aspects in organizational behavior. Leadership
behavior theories focus on the study of particular behavior of a leader. Behaviorists try to
determine the types of leadership styles that have produced a higher level of work performance
(Czaplewski, A.J. and Van Scotter II, 2016). There are various leadership behavior theories and
main among them is contingency theory which includes Hersey and Blanchard’s situational
leadership theory, leader participation theory, path-goal theory and leader-member exchange
theory.
 Contingency theory- this theory determines the key factors for effective leadership and
these are- leader, task structure and position power.
Hersey and Blanchard’s theory- this theory focuses on the readiness of leaders. This includes
telling, selling, participating and delegating.
Leader participation theory- this model states that the behavior of leader must reflect the
structure of task.
Path-Goal theory- this theory determines four leadership behavior and they are as follows-
directive leader, supportive leader, participative leader and achievement oriented leader.
Leader-member exchange theory- this theory indicates the leader to develop good relations with
the trusted followers for development of company.
2.2 Theories related to work relationships and interactions
To improve the leadership ability organizations adopt different work relationship and
interaction theories. Some theories are as follows-
 Work-oriented theory: in this theory the leaders are concerned with the accomplishment
of work. These leaders creates specific task for particular employee and also they make
the policies for evaluating the performance of employees.

 Relationship-oriented theory: in this theory the leaders are much concerned with the
interaction to the employees. The timely talks and meeting are schedules by the leaders in
this theory. Also, they try to make the work environment comfortable and enjoyable to
the employees for effective work.
Between above two, relationship theory is more effective as compare to the work theory.
However it is also stated that the combined approach of these theories is very beneficial rather
than applying single theory (DuBrin, 2013).
2.3 evaluate the relevance of organizational culture theory in developing organizational
effectiveness
Organizational effectiveness is the attainment of goals at organizational level.
Organization effectiveness is the most important issue linked with the organizational culture.
Different types of organizational culture like clan, adhocracy, hierarchy and market involves
functions like discussion, teamwork, adaption, communication, stability, planning, goal setting,
information management etc. leads to organizational effectiveness. An increasing body of
evidence supports a linkage between an organization’s culture and its business performance. The
effectiveness of an organization depends on the work environment, flexibility, stability,
readiness, formal and informal relations of an organization and all these factors are associated
with the culture of an organization (Champoux, 2016). In accordance with the above statements,
the organizational culture has a positive influence over the effectiveness of an organization;
therefore the relationship between organizational culture and organizational effectiveness
becomes important.
TASK 3
3.1 Analyze the benefits and issues with involving employees in organizational decision making
The involvement of employees in decision making strategies of an organization is a key
factor in organizational growth. There are many advantages and limitations of involvement of
employees in decision making policy. Advantages of employees involvement in decision making
includes- job satisfaction, broader range of perspectives, employee motivation, job performance,
organizational commitment, etc. also, from managerial point of view involvement of employees
is effective way to leverage human resources (Greenberg, 2013. ). Providing employees with an
opportunity to take part in decision enables employees’ voice in something meaningful. Further,
organizing, scheduling and assigning of work become simpler in group decision making strategy.
The issues associated with the involvement of employees in decision making are increased risk
of unskilled employees in decisions, personal issues of employees, contribution of inexperienced
fresh recruits, employees without relevant knowledge.
3.2 explain different ways to motivate employees
Motivation is a tool which is used to enhance intensity of individual, provide them with
appropriate direction to attain their goals. In present context the combination of elements needs,
job design and satisfaction are necessary to achieve motivation to the employees(Wagner III and
Hollenbeck, 2014.). There are many motivational theories used to motivate employees. They are
as follows-

 Hierarchy of needs theory- According to this employee cannot move to the higher level
until all needs of their current level are satisfied.
 Theory X & Y- In this theory the negative and the positive view of employee is
determined. Theory X presents the negative view of people and Theory Y offers a
positive view.
 Two-factor theory- this theory is also known as motivation-hygiene theory. This theory is
divided into two factors namely extrinsic and intrinsic. The extrinsic factor involves the
job dissatisfaction whereas the intrinsic factors are associated with the job satisfaction
and motivation.
 McClelland’s theory of needs-McClelland proposed that an employee’s needs are
attained over time and are shaped by early life experiences. This theory concentrates on
the three fundamental requirements and these needs are: the need for achievement, the
need for affiliation, the need for power. Employee’s efficiency and effectiveness are
motivated by these three needs.
 Goal setting theory- the actions of an employee directly impacts by goal. A goal is the
main reason behind a single task done by employees, therefore, goal is the objective of an
action
 Reinforcement theory- this theory states the situation of employees when they take some
action. The factors like expectations, goals and needs are ignored in this theory.
According to this theory the behavior is a function of its consequences. Reinforcement
theory states that behavior is externally caused.
 Expectancy theory- according to this theory, the employee tends to perform in a certain
way based on their expectation. In this theory the individual work on their expectations
and that is why the work done depending on this theory will be result-oriented.
 Equity theory- this theory concentrates on the individual’s perception of how nicely they
are treated as compared to other employees. The most common ways which helps in
suppressing the inequity are- change inputs, change outcomes, distort perception, leave
the job.
Also, there are many other techniques which are used to increase the motivation level of
employees such as rewards to employees, activities to increase motivation, motivational
theories based training program, performance based wages, incentives, promotions, etc.
( Miner, 2015. )
3.3 Analyze how motivational theory can inform employee motivation
Every contemporary theory recognizes that employees are not identical and employees
can recognize these differences with the help of the above mentioned theories. Every individual
have different needs, attitudes, personality and other necessary variables. Also, employees can
match people to jobs(Pinder, 2014). There’s a great deal of evidence showing the motivational
benefits of carefully matching people to jobs. High achievers should have jobs that allow them to
participate in setting moderately challenging goals. Also, not everybody is motivated by jobs that
are high in autonomy and responsibility. Managers should use these theories to motivate

employees using different rewards depending on individual’s need. Further, these theory impacts
the positive and negative views of employees which helps in choosing appropriate motivation
way for employees.
3.3 evaluate how a named organization of your choice motivates its employees
Motivation is the set of forces that starts, directs and controls the efforts of employees to
attain the required goals. It is very essential for an organization to keep its employees motivated
to attain effective performance of the firm. Here, the motivation strategy of Starbucks will be
explained. The top reasons why people want to work at Starbucks are- the opportunity to work
with an enthusiastic team and to work in a place where employees feel that they have value.
Starbucks is one of the biggest examples in terms of motivating employees. Starbucks mainly
follows the equity theory of motivation, according to this theory every employee of Starbucks is
treated as partner by the managers. Also, co-work exists in Starbucks which distinguishes it from
other companies. Under this theory, employees feel that they are working in a friendly
environment, which enhances the satisfaction of employees towards company, consequently, the
efficiency of the business increases. Further, the management of Starbucks also plays a crucial
role in motivating its employees, various benefits provided to the workforce depending on their
needs. Moreover, hierarchy theory of motivation is also followed by Starbucks which helps
employees in achieving safety needs, love and belonging needs and for attaining love and
belongings needs Starbucks consider its employees as partners or friends. Starbuck also believe
in this that the respect provided to employees keep them motivated towards their goal. Thus, in
these above described ways Starbucks motivates its employees and boost up their performance in
the organizational growth (Carpenter, Berry and Houston, 2014).
CONCLUSION
Organizational behavior is a crucial tool for the development of an organization.
Organizational behavior involves the studying of performance of employees in an organization.
Organizational behavior study generates a better work environment for employees and for
managers too. This understanding also helps employees to estimate their understanding related to
organization. This study involves various theories associated with organizational behavior such
as leadership behavior theories, motivational theories, etc. also, this study helps in determining
the different organizational structures and cultures and their impact on the effectiveness of
organization. Also, this study indicates the advantages of teamwork in organization’s efficiency.
Further, the process and outcomes of changes is discussed in the above study. Moreover, the
advantages and disadvantages of involvement of employees in decision making are studied.
Thus, it is crystal clear that organizational behavior plays a vital role for an employee to attain
the desired results for the betterment of organization.

REFERENCES
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