Organizational Behavior Report: Structure, Culture, and Leadership

This report delves into the complexities of organizational behavior, exploring the interplay between organizational structure, culture, and leadership styles. It begins by comparing different organizational structures and cultures, analyzing their impact on business performance, and identifying factors that influence individual behavior in the workplace. The report then examines the effectiveness of various leadership styles within different organizations, specifically John Lewis and Homebase, and evaluates the organizational theories that underpin management practices. It further assesses the management approaches used by these two companies, highlighting the impact of leadership styles during periods of change and comparing the application of different motivational theories. The report incorporates a PowerPoint presentation on group behavior and team building factors. Overall, the report provides a comprehensive overview of key concepts in organizational behavior, offering insights into effective management practices and employee motivation.

Organizational Behavior

TABLE OF CONTENTS
Introduction .....................................................................................................................................4
Section 1...........................................................................................................................................4
1.1 Comparing different organizational structures and culture..................................................4
1.2 Relationship between an organization's structure and culture can impact on the
performance of the business........................................................................................................5
1.3 Factors which influence individual behavior at work............................................................6
2.1 Comparing effectiveness of different leadership styles in different organizations...............7
2.2 Organizational Theories that underpins the practice of management....................................8
2.3 Evaluate the different approaches to management used by John Lewis and Homebase.......9
3.1 Impact that different leadership styles have in periods of change.........................................9
3.2 Compare the application of different motivational theories within the workplace............10
3.3 Usefulness of a motivation theory for managers.................................................................11
SECTION 2 : PPT..........................................................................................................................11
Conclusion.....................................................................................................................................11
REFERENCE.................................................................................................................................13
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Illustration Index
Illustration Index
Illustration 1: Maslow's Hirerarchy of Needs................................................................................12
Illustration 2: Herzberg's Two Factor Theory................................................................................13
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Index of Tables
Table 1: Different organizational cultures.......................................................................................6
Table 2: Motivational Theories and their usefulness.....................................................................12
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INTRODUCTION
Organizational Behavior refers to the study of the different aspects of behavior of
individuals within an organization. The study is useful in improving the interactions among
individuals at workplaces and enhancing the business efficiency of the firms through various
employee motivation and team building methods (Bryman and Bell, 2015). The present report
features different organizational structures and cultures and their impact on the business
performance. It also talks about the factors that influence the individual behavior at work. In
addition to this it also discusses defectiveness of different leadership styles in chosen
organizations. The organization selected are John Lewis which is a chain of departmental stores
operated in Great Britain and Homebase which is a popular home improvement retailer in UK.
The second part of the report features the power point presentation about nature and behavior of
groups in organizations and the factors determining team building.
SECTION 1
1.1 Comparing different organizational structures and culture
Organization Structure is defined as a concept which is used in organizations to define
hierarchy, job roles and their functions within the organizational setting. Different organizations
follow different organizational structures. These are impacted by various factors such as size,
motive and complexity of actions a firm performs and its external business environment and
culture. These are discussed in the following points:
 Functional Structure: In this type of structure the organization is grouped into various
departments according to their functions. For example Marketing department is formed to
perform marketing activities (Langton, Robbins and Judge, 2015). Finance department
perform accounts and finance related functions. Similarly Human Resource department
take care of functions such as recruitment, training and management of employees.
Example: John Lewis
 Divisional Structure: This structure is useful for organizations that operate in different
geographic areas. These are also followed by companies that have firms under the
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umbrella brand and have different product lines and markets. Example : Homebase which
is a home improvement retail division of Home Group in UK.
 Matrix Structure: This structure is hybrid of functional and divisional organizational
structures (Empson, Muzio and Broschak, 2015). It is used in many multinational
companies and enjoy both the benefits of functional and divisional structures.
Example : Apple
Types of Organizational Culture:
Organizational culture refers to values and beliefs that regulates the behaviors of
individuals that contribute to particular psychological environment of an organization. There are
different types of organizational cultures that are discussed below:
Table 1: Different organizational cultures
Clan Culture (Role) Market Culture (Task) Hierarchy Culture (Power)
Work environment is friendly
(Tipster, 2013).
The work environment is
competitive and goal oriented
The work environment is
formal and well structured.
Leaders play important role as
mentors and team builders
Leaders are competitive and
focused towards goal
achievement
Leaders act as monitors,
coordinators and organizers.
Organizations promote team
working, open communication.
Organizations are driven by
market factors and competition
Organizations operates
according to formal rules and
policies (Swanepoel, Botha
and Rose-Innes, 2015).
1.2 Relationship between an organization's structure and culture can impact on the performance
of the business
Organization's structure and culture are interdependent concepts that significantly impact
the businesses performance of the firm. Organizational structure outlines the hierarchy, jobs and
functions within its settings and the culture determines psychological environment of the firm
(Salleh and Memon, 2015). The components of the psychological environment are formulated
according to beliefs, values, principles and behavior of organization's workforce. Organizational
culture directly impacts the operational efficiency of the company. There relationship is further
elaborated in the following points:
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John Lewis is a retail company that follows functional organizational structure. The
company has different departments based on purposes. The marketing team of the company
formulates marketing plan and its staff performs actions to implement the plan. The workers
work in team in order to achieve organizational goals (Glasø and et. al., 2015). The culture of the
company is Task oriented where leaders are competitive and focused to generate high profits and
market share. Market related factors are considered to craft competitive strategies to fight against
rival firms.
On the contrary the Homebase is a home improvement retailer of UK that follows
divisional organizational structure. The company has wide range of home improvement goods
and service customers in different markets in Britain. The work culture of the company is formal.
The employees of the company have to perform as per the predefined policies and formal norms.
The leaders of the company monitor and coordinate with staff to carry out business goals
(Gyekye and Haybatollahi, 2015).
1.3 Factors which influence individual behavior at work
There are various factors that determine the behavior of individuals at the workplace.
Therefore it is very important for managers to comprehend these factors in order to improve
employee efficiency. The factors are discussed in the following points:
 Leadership: Leaders of the organizations can greatly impact the behavior and
performance of employees at the company. They are responsible for setting a goal and
direction for teams. Employees feel motivated to work efficiently under the leadership of
cooperative and optimistic managers. Therefore mangers need to comprehend the fact
that employees productivity can be improved by meeting their expectations and work
related needs (Newman and et.al., 2015).
 Work Culture: Work culture of the organization is another factor that affects the behavior
of employees within the organizational setup. Employees feel happy and energetic while
working in a positive and friendly work environment. Therefore mangers need to
emphasize on making the work culture cordial and cooperative to inspire team members
to work in the most efficient manner.
 Job Responsibilities: Employees prefer to work in an organization which delegate jobs as
per their preferences and skills. The managers can increase the productivity of employees
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by allocating them tasks as per their capabilities and interests. It is also important for
managers that they improve the skills of employees through training sessions.
 Effective Communication: Communicating effectively with team members is very
important to improve employees efficiency at work. Regular interactions ensure
employees that their views and opinions are valued and they feel more connected to their
job (Empson, Muzio and Broschak, 2015).
 Family and Personal Life: Stressful personal life diminishes the performance of the
employees at the workplace. It has been observed that employees with troubled family do
not perform in the expected manner. Therefore managers need to understand that
productivity of stressed employees should be increased by providing them options to
manage work life balance.
2.1 Comparing effectiveness of different leadership styles in different organizations
Leadership is referred to an act of leading people and groups for a purpose.
Organizational leaders follow different leadership styles to achieve desired outcomes. In order to
compare effectiveness of leadership styles of John Lewis and Homebase managers, the points
can be discussed:
Democratic Leadership Style
Managers of John Lewis follow democratic leadership style to lead team members. It is
an open approach that involve employees views and opinions in major decision making
processes in the retail company. It is also known as Participative style of leading individuals in
organizational setting(Debusscher, Hofmans and De Fruyt, 2015). The style encourages free flow
of ideas and facilitates open discussions among teams in the company.
Effectiveness: It has been found in the research that democratic style is the most effective style
of leading people across organizations. John Lewis managers follow this style to increase the
productivity of team members. In addition to this the mangers employ this style to boost
employee morale and their engagement in major decision making processes of the company in
order to create shared vision and goals.
Autocratic Leadership Style
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Managers of Homebase follow autocratic leadership style. In this style the managers have
the total authority and control over decision making processes of the company. They monitor the
performance of the team members. This style is beneficial in maintaining the discipline in the
organization (Cherry, 2015).
Effectiveness : The style is beneficial for managers of Homebase at the times when there is huge
work load and the tasks are to be finished within the stipulated time. The managers monitor the
work of the employees and team members. This is a effective style for the company to maintain
the discipline in the firm (Swanepoel, Botha and Rose-Innes, 2015).
2.2 Organizational Theories that underpins the practice of management
There are many organizational theories that are important for organizations for
supporting management practices. These are briefly discussed in the following points:
Neoclassical Theory: The neoclassical theory incorporate behavioral sciences into
management practices improving employee behavior and attitude at workplaces. John Lewis
management practices are based on Neoclassical approach. The approach is mainly
associated with engaging employees to perform efficiently to achieve organizational goals.
According to this approach the company motivates and support team members to increase
their efficiency (van Knippenberg and et.al., 2015).
Scientific Management Theory: The theory was developed by Frederick Taylor. The theory
is important for Homebase in carrying out various activities such as planning, developing,
increasing quality and cost accounting (Grimsley, 2015). The theory gives scientific
management approach to managers improve the operational productivity in the company.
There are four principles of Scientific Management Theory which are as follows:
 Using scientific way to study work and developing effective methods to perform
special tasks.
 Delegating work to team members as per their capabilities and motivation. It also
involves proper training of employees to increase their productivity.
 Monitoring performance of team members and guiding them to use effective methods
of performing tasks.
Proper allocation of work among managers and employees in order to improve their roles
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(Grimsley, 2015).
Classical Theory: The classical theory of management underpin the organizational practices
that laid emphasis on structural factors and activities to achieve organizational goals. It is a
primitive theory which came into picture after industrial revolution in the late 19th century.
Many small organizations still use this approach to resolve issues related to industrial
management such as specializations, efficiency, quality and cost minimization (Cameron.
and Green, 2015).
2.3 Evaluate the different approaches to management used by John Lewis and Homebase
In order to evaluate the management approaches of John Lewis and Homebase, the
following points can be discussed:
Management Approach in John Lewis
John Lewis follows Neoclassical management approach. The company take behavioral
sciences into consideration to improve productivity of employees (Adeyemo, Terry and Lambert,
2015). The managers of the company understand that motivational levels of employees can be
increased by better communication. Effective communication play important role in
understanding issues faced by employees at workplace. Thereby resolving these issues in the
effective manner. In addition to this, the approach is beneficial in increasing the productivity of
team members by identifying various factors such cooperation among group members instead of
authoritative commands. Thus the managers of John Lewis try to give amiable work environment
to employees.
Management Approach in Homebase
Management approach in Homebase is in accordance with Scientific Management
Theory. The managers of the company ensure that they follow scientific methods to study work
and find out most effective method to finish special tasks. They enable that the delegation of
work is based on employee capabilities. Besides this, they also focus on training needs of staff in
order to increase work outputs by improved efficiency. Apart from this. They regularly monitor
team members performance and guide them in the correct manner. The scientific management
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approach further advocate the allocation of work between managers and employees in order to
improve managerial and operational efficiency (Chebet and Rotich, 2015).
3.1 Impact that different leadership styles have in periods of change
Leadership styles significantly impact the motivation in organizations in periods of change.
These are discussed in the following points:
Autocratic Leadership Style and its impact
Autocratic style is useful for Homebase during different scenarios. The scenario may be
when immediate decision is to be taken for the sake of business. Thus in that case leaders have
the authority to make decisions without the inputs of team members. Another scenario can be
described as diminished operational productivity which leads to loss of market share for the
company. Then in that case the autocratic leaders have the total control to direct teams in
increasing operational performance and gaining back the market position (Bryman and Bell,
2015).
Democratic Leadership Style and its impact
At the time of change participative leaders in John Lewis play important role in involving
team members in the major decision making processes of the company. These period of change
may include launch of new business plan or designing strategies for improved productivity. The
free flow of fresh ideas is very beneficial for the managers to form innovative strategies. This is
also helpful in motivating employees and boosting their moral. In addition to this it also enables
employees to build strong commitment with the company (Arumugam, Idris and Munusamy,
2015). Apart from this, the democratic leadership style is also beneficial to change management
across organizations. At the time of change management the leaders of the company adopts this
style to direct employees and teams to integrate the changed approach in an effective manner.
3.2 Compare the application of different motivational theories within the workplace
Motivational Theories play very important role in organizations. These theories are
studied to increase motivation among employees at workplace. The two most widely used
motivational theories in businesses are as follows:
Maslow's Need Hierarchy Theory
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John Lewis uses this theory to craft strategies for employee motivation. The theory
explains that motivation is the outcome of an individuals efforts to meet five needs that are basic,
safety, social, self esteem and self actualization needs. The theory states that all these needs
create pressure on individuals and affect their behavior (Mcleoad, 2014). It has been observed
that organizations by meeting all these needs can effectively motivate employees. For instance:
providing safe and comfortable working environment, feasible working hours can meet basic
needs of employees. Similarly social needs of staff can be fulfilled by providing amiable and
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Illustration 1: Maslow's Hirerarchy of Needs
(Source: Mcleoad, 2014 )