Analysis of Organizational Behaviour at AM Holdings Limited Report

This report provides a comprehensive analysis of organizational behaviour within AM Holdings Limited, a UK-based confectionary foil and laminated carton board supplier. As an HR Manager, the report examines the influence of culture, politics, and power on individual and team behaviour and perfo...Read More

ORGANIZATIONAL BEHAVIOUR

CONTENTS
INTRODUCTION...................................................................................................................................1
LO – 1......................................................................................................................................................1
P1 Analysing ways culture, politics and power influence individual & team behaviour and
performance.........................................................................................................................................1
LO – 2......................................................................................................................................................3
P2 Analysing Content and process theories of motivation & techniques in achieving the goals of the
organisation effectively........................................................................................................................3
LO – 3......................................................................................................................................................6
P3 Elucidating what makes an effective team in contrast to an ineffective team................................6
LO – 4......................................................................................................................................................8
P4 Application of the concepts & philosophies of organisational behaviour......................................8
CONCLUSION........................................................................................................................................9
REFERENCES......................................................................................................................................10

TABLE OF FIGURES
Figure 1: Maslow’s need hierarchy theory.................................................................................4
Figure 2: Adam’s equity theory of motivation...........................................................................5

INTRODUCTION
In recent years, significance of organizational behaviour as employees as well as
behavioural patterns have been regarded as the prime factors in order to have effective
functioning of the firm. It is a field of study that supports in inspecting the impact of
structure, individual and group have on the culture and behaviour of the organization
(Huczynski and Buchanan, 2013). Further, the culture of the firm and its attributes are subject
of change. Considering this fact, the current research report aims to analyse the varied aspects
of organization culture and scrutinize it in the context of AM Holdings limited of UK. It is
engaged in the supplying of confectionary foils and laminated carton board. As an HR
Manager of the company, the culture of AM Holdings will be analysed and will focus on
varied motivational theories for improving the performance of the firm. The report will also
throw light on ways of developing effective team and will apply concepts and philosophies of
organizational behaviour in a given business situation.
LO – 1
P1 Analysing ways culture, politics and power influence individual & team behaviour and
performance
Influence of culture on individual & team behaviour and performance
According to the word of Mullins, there are mainly four types of culture of the firm
i.e. power, role, task as well as person. These types of culture are generally followed by most
of the firms including AM Holdings limited. Explanation of these cultures is as follows:
 Power culture – Under this culture, limited amount of people enjoys the positional
power within the firm. These people do have controlling powers and they also take
necessary decisions as well. In such type of culture, employees normally does not
have liberty to express their views and opinions (By and Burnes, 2013). Further, these
authorities also have responsibility to delegate accountabilities and job designations to
other workers.
 Role culture – This type of a culture focuses on delegated roles of the workers.
Further, these roles are delegated on the basis of their educational qualification,
specialization and abilities of the employees. In the role culture, workers do gets an
opportunity to take decision in regards with what best can be done. Additionally, as
per their selection of the job roles, they are also willing to accept challenges.
 Task culture – It is being referred as the culture which is based on the performance of
the team. In such type of culture, teams are being established as per the tasks for the
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purpose of achieving the targets or for solving some precarious problems. Moreover,
task culture also enables the workers of the firm to equally contribute towards the
accomplishment of the assigned work activity in an innovative and systematic way.
This type of culture is more prevalent in the current dynamic and competitive
business environment. Furthermore, employees within task culture are generally
motivated to work hard (Christiansen, 2012).
 Person culture – Organizations considering this type of a culture pay attention on the
significance of the workers. Individuals are more concerned towards attaining their
individual profits and are least bothered about the organizational benefits and profits.
Person culture is generally adopted by firms which are non-profit organization and
charities. Teams are not motivated to earn their own benefits and profits.
The model being followed by AM Holdings limited was bureaucratic model which is
similar to power culture. It was not apt for the firm, as the operations were not performed
smoothly and it only aims to achieve the goals by framing strict rules and regulations for the
workers. In the sovereignty of such type of culture, workers of the company were not able to
express their opinions and problems (Coccia, 2014). Each and every people were compelled
to adhere by the same rules irrespective of their competence level and capabilities. After, the
leader has been changed, soon the organization policy was changed and role and task culture
was adopted. Values, beliefs and corporate culture was considered and its helped in
regulating individual as well as team behaviour within AM Holdings limited and performance
level was also increased.
Hofstede’s dimension of cultural theory
Further, the impact of culture on the workers of AM Holdings limited can be
comprehended through using Hofstede’s cultural dimension theory. It is a cross-cultural
communication for evaluating the values and behaviour of the workers. It has four
dimensions and are explained below:
 Masculinity versus femininity – It is concerned with the distribution of roles between
makes and female workers of the firm. Equal distribution of roles is being done in
AM Holdings limited and healthy relations are maintained with the superiors.
 Individualism versus collectivism – This dimension pays attention on the connection
level of employees with the firm. If the individual score is high than there is poor
inter-personal connection between the workers and vice-versa (Hofstede's Cultural
Dimensions, 2018).
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 Power distance index – It relates with the degree of inequality taking place amid
people holding power and without power.
 Uncertainty avoidance index – This dimension states the manner employees behave
as well as manage and deals with the uncertainties and anxiety.
Influence of politics and power
The corporate culture within AM Holdings limited is being impacted by the external
power as well as political condition of United Kingdom. The cultural norms along with the
organizational culture models adopted by the firm is impacted by the political scenario. The
culture within the firm has been customized in order to cope up the situation after Brexit.
Even the management team of AM Holdings have been altered. A new theme in the culture
of the firm was incorporated for inspiring creativity all throughout the firm. Further, policy
for directly connecting with the audience was also introduced (Gagne, Sharma and De
Massis, 2014). Power and politics has also impacted the team and individual behaviour
within the firm. The overall decision making strategy and interaction of the employees with
the customers was also affected. The overall productivity was influenced because of political
pressure and power. Both the factors have positive as well as negative impact on the
organizational behaviour of AM Holdings limited. The utilization of power has allowed the
organization to bring new alteration such as reward system on the basis of the performance of
the workers etc. However, the utilization of power has been vicious for the workers in AM
Holdings because of the misuse of power by various officials.
LO – 2
P2 Analysing Content and process theories of motivation & techniques in achieving the goals
of the organisation effectively
Content and process theories in achieving the goals of the firm
Motivation is being referred as the process of simulating the employees in the
company for achieving the goals and objectives. The study of motivation has classified it into
two major groups i.e. content and process theories. Talking in relation with the content
theories, the primary focus of this theory is on the factors being present within an individual
who has an ability to direct, sustain, energize and stop behaviour. These theories are
concerned with the individual needs of the people and pays attention on the areas that needs
motivation (Francescato and Aber, 2015). Some of the content theories are need hierarchy
theory, McClelland’s theory etc. On the other hand, process theories are pays attention on
offering description and evaluation of the process which can be considered for energizing,
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directing, sustaining and stooping the behaviour. Some of the process theories are Adams’s
Equity theory, gaol setting theory etc.
 Maslow’s need hierarchy theory – Abraham Maslow has developed this theory which
focusses on the needs of the human beings. Under this, these needs are divided into
various levels according to their prime value. As per this theory, needs of human
beings never ends and its keeps on arising once one need is satisfied.
Figure 1: Maslow’s need hierarchy theory
(Marketing theories - Maslow's hierarchy of needs, 2018).
This theory can be applied in AM Holdings limited. The basic salary as well as living
is the physiological needs of the workers. Further, salary as well as health care is
safety needs. Working in teams and groups is social needs. Next, recognition,
promotion and appreciation from the superiors is the self-esteem needs and finally,
self-motivation for carrying out work activities is the self-actualization stage.
 Adam’s equity theory of motivation – This theory states that every employee within an
organization desires to be motivated on fair terms. If there is inequality exists within
an organization and the workers feel that there is disparity in the input and output
ratio, they will be highly demotivated.
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Figure 2: Adam’s equity theory of motivation
(Adams’ Equity Theory, 2018).
Employee’s input and output should be matched closely as possible. In simple words,
what workers brings to the firm should be equal to what workers takes from the firm.
Motivational techniques for effective achievement of the goals
Motivation is the process which encourages individual to perform more and better so
as to achieve the desired goals and objectives. AM Holdings has continuously adopted
content and process theories of motivation to facilitate the process of employee’s loyalty and
to increase the productivity of the workers. Because of this, opportunity to develop trust,
confidence and communication between the employees has been enabled. This has leads to
the achievement of the goals of the firm (Benincasa, 2015). The employees within the firm
can be motivated by monetary rewards as well. For meeting out the motivational needs,
incentives and rewards can often serve as a vital rewards. In addition to this, the employees of
the AM Holdings limited can also be motivated through non-monetary techniques such as
recognition, effective communication, team work visibility, healthy and cordial working
environment, higher work responsibilities and job roles and arrangement of effective training
and developmental events for the employees. All these motivational techniques will lead to
improved level of motivation which is quite necessary for the success of AM Holdings. If the
workers of the firm are fully satisfied and motivated than they can make sure organizational
success as well. Employees which are motivated carries out their work activities effectively
and ensures productive growth of the firm. Thus, it can be attributed that motivation and its
various techniques plays a major role towards satisfaction of the workers and satisfaction is
being regarded as the primary element for achievement of the organizational goal (Armstrong
and Stephens, 2005).
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LO – 3
P3 Elucidating what makes an effective team in contrast to an ineffective team
Team is defined as a group of people which possess different abilities who decides to
work together mutually and carries out a particular project or tasks effectively. As AM
Holdings limited is being into the business of packaging and containers, there are number of
operations which are quite challenging and tedious for the workers to perform. To complete
such work activities they require experience, skills, opinions and methods. Thus, teams are
necessary within the firm that encompasses skilful people with different expertise. Mainly
three types of teams exists in AM Holdings limited and these are:
 Functional team – It is those team employee work within a group having a common
functional expertise. In AM Holdings these workers are working for some common
goals and have objectives which are shared by them (Levi, 2014). Because of such
teams, there is recognizable operational capacity within the firm. Further, in
functional team each and every member work autonomously with affiliation as a great
motivational factor between them.
 Problem-solving team – This are the teams which works for the same goals however
their work is different because of the different tasks being offered to the employees.
All these tasks are dependent on the problems being taking place in AM Holdings.
Consequently, the main emphasis of employees is on resolving the issues which are
currently present within the functions and operations of the firm.
 Project teams – Project teams are those teams in which the members of the group
belongs to different groups and functions and are also managing different projects
being undertaken by AM Holdings. The members of the project team are offered
different tasks and all these tasks are related to the same project. The management
team of the firm again categorized the project team into sub teams according to the
different functions of project (Rollinson, 2008). These teams are formed for particular
period of time and is being dismissed once the project is completed.
All these three teams i.e. functional, project and problem solving teams are quite vital
within AM Holdings limited. It helps the firm in getting better ideas and level of work since
the employees work efficiently even in challenging situations. Furthermore, these team
structures are being adopted by the firm so as to group the team effectively. Moreover, it also
supports the organization in building their business and achieve growth in relation with the
profits as well as other benefits.
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Mechanism for developing effective team-work
As per Hackman, there are 6 conditions which makes the team effective i.e. team
should be real, must have compelling purpose, right people clear understanding of conduct
and norms, organizational support and finally, team focused coaching. All these features
helps the team to function effectively (Effective vs. Ineffective Teams, 2018). On contrary,
ineffective team formulates an agreed viewpoint quickly and protect it against any new or
original idea. In-effective team is often characterized by lack of clear objectives, wrong
selection of people, destructive conflicts, few people’s contribution, avoid discussion and
members do not really listen. Within AM Holdings Limited, effective team can be illustrated
well by seeking help of the different team theories which are available in the business market.
One of the most vital among them is Tuckman’s theory of group development. It is dependent
on different stages and are being illustrated in the subsequent paragraph:
 Forming – In AM Holdings limited the utilization of Tuckman theory is very
prevalent because the group of team members are initially formed and is the first stage
in the development of Tuckman’s theory. At this level, workers carry out their work
activities for finding their place within the firm. They find their place in the firm on
the basis of the size of the group and needs and demands analysis of the team
(Tuckman and Jensen, 2007).
 Storming – At this level, the team members of AM Holdings limited give challenge to
each other so that they can work as a team. They even give competition to the team
leaders in regard with the different topics which are concerned with the working
structure of the team and success of varied stages of working of the team.
 Norming – This is being referred as the stage where team members of the firm collect
data as per the ground rules as well as process which are on development.
 Performing – This is the final stage of the theory in which the members of the team
effectively start working out their allotted tasks and develops a good team
relationship. This helps them in maintaining synchronization and coordination
between the different team members of AM Holdings limited (Levi, 2014).
Prosecute of the Tuckman theory of group development will significantly impact the
overall performance of the workers because there will be an influence in the role of the
leadership in AM Holdings limited. There will be better communication between the teams
and personality of the employees will be developed. All these changes within the workers
will support in improving team performance. Further, the effective utilization of Tuckman
theory will help the firm in developing an effective team and the members of the group will
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evaluate the situation appropriately and the leaders of the team will offer guidance to them as
per the theory process (Archer and Cameron, 2013).
LO – 4
P4 Application of the concepts & philosophies of organisational behaviour
AM Holdings Limited is required to improve the performance of the team and
productivity of the company in order to cope up with the rising level of competition in the
market. This can be achieved by application of concept and philosophies of organizational
behaviour. The firm makes use of path goal theory which clearly indicates that the
performance of the team is very crucial for them (House, 2011). This theory is based on the
behaviour of the staff members and the working environment of AM Holdings limited.
Seeking help from the path goal theory, goals and objectives of the firm can be attained
successfully. In the given business situation, AM Holding’s main aim is to motivate their
employees, augment their level of satisfaction and empower them so that they can become
more productive. Path goal theory can be referred as the theory which comprises style of the
leaders and behaviour which are suitable for the workers and the current working
environment of the firm. The utilization of this theory will be effective and this can also be
connected with the use of the goal setting theory. Further, for the purpose of comprehending
the team performance as well as improvement, utilization of situational leadership will prove
to be quite effective in understanding the complexity of the gaols and development of team
(Spahr, 2015). Situational leadership theory needs to be analysed for better understanding the
value of situational leadership. It is generally dependent on four style i.e. Telling (leader tell
people what to do), Selling (leader offer ideas and analysed by the followers), Participating
(members are allowed to give better ideas) and finally, Delegating (followers takes the
decision).
Adopting of this style of leadership in AM Holdings limited will allow the leaders to
better comprehend the complexity being present in the teams. This is because of the fact that
situational leadership involves various set of leadership styles that can be adopted to evaluate
the working of the teams. Further, this form of leadership will also enable the leaders of AM
Holdings to interact with the team members according to the situation being prevalent within
the team and thus, will support the leader in having a unique idea to achieve competitive edge
in the market (Palestini, 2009).
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CONCLUSION
Consequently, from the above research study it can be attributed that behaviour of
individuals within the firm is unpredictable and must be channelize for maintaining
synchronization and coordination of various functions and operations of the organizations. It
was originated that for incrementing the motivation and satisfaction level of the workers,
application of the techniques and theories of motivation is very essential. Further, effective
team needs to be developed by using applying varied team development theory for attaining
the organizational goals.
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REFERENCES
Books and journals
Archer, D. and Cameron, A., 2013. Collaborative Leadership; Building Relationships,
Handling Conflict and Sharing Control. 2nded. London: Routledge.
Armstrong, M. and Stephens, T., 2005. A Handbook of Management and Leadership: A
Guide to Managing for Results. Kogan Page Publishers.
Benincasa, R., 2015. 6 Leadership styles, and when you should use them. Pearson education.
By, R.T. and Burnes, B., 2013. Organizational Change, Leadership and Ethics: Leading
Organisations towards Sustainability. London: Routledge.
Christiansen, B., 2012. Cultural Variations and Business Performance: Contemporary
Globalism: Contemporary Globalism. IGI Global.
Coccia, M., 2014. Structure and organisational behaviour of public research institutions under
unstable growth of human resources. International Journal of Services Technology and
Management, 20(4/6), pp.251-266.
Francescato, D. and Aber, M., 2015. Learning from organizational theory to build
organizational empowerment. Journal of Community Psychology, 43(6), pp.717-738.
Gagne, M., Sharma, P. and De Massis, A., 2014. The study of organizational behaviour in
family business. European Journal of Work and Organizational Psychology, 23(5),
pp.643-656.
House, R.J., 2011. A Path Goal Theory of Leader Effectiveness. Administrative Science
Quarterly, 16(3), pp.321-339.
Huczynski, A. and Buchanan, D., 2013. Organisational Behaviour. 8thed. Harlow: Pearson.
Levi, D., 2014. Group Dynamics for Teams. 4thed. London: SAGE.
Levi, D., 2014. Group Dynamics for Teams. 4thed. London: SAGE.
Palestini, R., 2009. From Leadership Theory to Practice: A Gameplan for Success as a
Leader. Plymouth, UK: Rowman and Littlefield Education.
Rollinson, D., 2008. Organisational Behaviour and Analysis: An Integrated Approach. 4thed.
London: Pearson.
Spahr, P., 2015. What Is Situational Leadership? How Flexibility Leads to Success. St
Thomas University Online.
Tuckman, B. and Jensen, M., 2007. Stages of Small Group Development. Group and
Organizational Studies, 2, pp.419-427.
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Online references
Adams’ Equity Theory. 2018. [Online]. Available through: <http://www.free-management-
ebooks.com/news/adams-equity-theory/>. [Accessed on 7thMarch 2019].
Effective vs. Ineffective Teams. 2018. [Online]. Available through:
<http://www.eventus.co.uk/effective-vs-ineffective-teams/>. [Accessed on 7thMarch
2019].
Hofstede's Cultural Dimensions. 2018. [Online]. Available through:
<https://www.mindtools.com/pages/article/newLDR_66.htm>. [Accessed on 8thMarch
2019].
Marketing theories - Maslow's hierarchy of needs. 2018. [Online]. Available through:
<https://www.professionalacademy.com/blogs-and-advice/marketing-theories-maslows-
hierarchy-of-needs>. [Accessed on 8thMarch 2019].
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