Organizational Behaviour: Impact of Structure, Culture, and Leadership

This report delves into the critical relationship between organizational behaviour and overall performance. It examines the impact of non-financial factors, such as organizational structure, culture, and leadership style, on a company's success. The report highlights the importance of employee satisfa...Read More

Running head: ORGANIZATIONAL BEHAVIOUR
Organizational Behaviour
Name of the Student:
Name of the University:
Author’s Note

1
ORGANIZATIONAL BEHAVIOUR
Introduction
In an organizational, there are several factors which can impact the overall
performance of an organization and such factors needs to be considered by the senior officials
of the company in the decision making process of the business. The organizations which are
operating in current business environment are immersed in competitive pressures and
constantly changing environment. In such a circumstance the senior officials of the business
needs to focus on gaining competitive advantage for the business and thereby enhance the
overall corporate performance of the entity. The discussion would be portraying the impact of
non-financial factors such as structure, culture and leadership style on the overall
performance of the organization (Yıldırım and Birinci 2013). The analysis would also show
whether there is any relationship between organizational structure, culture and the leadership
style which is followed by an organization. Therefore, the impact of such non-financial
factors on the operations of an undertaking would be shown appropriately in the analysis.
Discussion
The employees are considered to be the life blood of an organization and their
performance is expected to benefit the organization as they contribute to the goals and
objectives of the organization. It is for this reason that the efficiency of the workforce is an
important constraint which can have an impact on the performance of the business. The
management needs to ensure that the employees of the business are satisfied with the work
process and motivated to perform. It is in such a respect that the structure of the organization
becomes important (Pdfs.semanticscholar.org. 2020).. The structure of the organization
which includes the hierarchy of management plays an important role in optimizing the
performance of a business. The structure of a business is a framework of roles,
responsibilities and authority of the management that are deliberately designed to accomplish

2
ORGANIZATIONAL BEHAVIOUR
the process of the business and also achieve the goals which are set by the organization (Tsai
2011). The concept states that the senior management should have a clear sense of direction
so that the employees can be directed towards the goals and objectives which are set out. This
shows that the leadership style of the senior management plays an important role in the
performance of the organization (Cris.maastrichtuniversity.nl. 2020). The structure of the
organization shows whether the management appropriate policies are being formulated for
enhancing the performance of the business or not. In an organization different teams operates
and a proper structure needs to be followed so that the responsibilities of each of the
departments can be carried out in an effective manner. The structure of an organization
comprises of leadership style which is followed in the business and also include the overall
work culture of the business.
Organizational Culture also has a significant impact on the overall working
environment of the business. The term organizational culture reflects the beliefs and values
which are present in the workplace and the beliefs which bind the employees of the business
to work in a collaborative manner (Iosrjournals.org. 2020). Organizational culture influences
not only individuals in an organization but also groups in the manner they execute their duties
and also how they engage in communication process. The formal and informal form of
communication is affected by the organizational culture which is established in the business.
The organizational culture if positive can motivate the employees and have an influence on
the job satisfaction of the employee (Acar and Acar 2014). It is to be noted that if an
employee is satisfied with the job, it would bring out the best out of him and thereby
contribute effectively towards the performance of the business. The culture which is present
in the organization impacts the behaviour of the employees and helps them relate with the
goals and policies which are set by the senior officials of the company. It is therefore

3
ORGANIZATIONAL BEHAVIOUR
important for an organization to maintain a proper organizational culture as the same creates
a happy working environment for the employees where they are motivated to perform.
The leadership style which is followed by the organization also impacts the
performance of the employees significantly. If the leadership style is participative in nature,
trends shows that employees are more satisfied and can contributes towards the decisions
making process of the business (Choudhary, Akhtar and Zaheer 2013). In this manner, the
senior officials can give importance to the employees and also motivate them to perform in a
systematic manner so that the goals can be achieved. The leadership style which is followed
by the senior executives of the business needs to follow as per the nature of organization so
that it is appropriate from the view point of the business (Hurduzeu 2015). A leader is a
person who can motivate the employees and also direct the employees towards the goals
which are already established for the business.
The concept of organizational culture and leadership has been studied by many
researchers and most of them agree that both have an impact on the performance of the
business. Most of the studies which have been conducted in such topics shows that there is a
strong correlation between leadership and culture. It is to be noted that leaders and managers
plays a vital role in transforming the organization and bring about change in the work process
which ultimately impacts the performance of the entity (Jacobs et al. 2013). The leaders are
responsible to create an appropriate culture where the employees can thrive and work in a
collaborative manner. In this way, leaders can also bring about change in the work process of
the business and thereby promote efficiency in the operations of the business. The leaders try
to improve the work environment and thereby improve the efficiency level of the business. In
a manner, it can be said that appropriate leadership can facilitate changes in the organization
and thereby directly impact the financial performance of the business (Awadh and Alyahya
2013). The most successful form of leadership styles which can be identified is

4
ORGANIZATIONAL BEHAVIOUR
transformational leadership which depends on innovation and change in the operational
structure of the business. The leaders of a business are expected to initiate change in the
operations of the business and this would have a direct impact on the financial performance
of the business.
In a business, the work culture helps the management to retain skilled employees
which is quite important in order to maintain the current level of performance for the business
(Uddin, Luva and Hossian 2013). As per research, the business organization which put
emphasis on maintaining a healthy working culture is often awarded with higher performance
in the market. There are companies of IBM, McDonalds and HP who have been able to
enhance their current level of performance and also have an appropriate market valuation.
The analysis of the policies of such businesses shows that the focus of the management of
such companies is on work culture and proper leadership practices so that efficiency can be
promoted in the organization. It is to note that culture can be related to appropriate
performance standard if the business is changing the work processes in order to adapt to the
changing environment. The business of HP and IBM have appropriate changed their business
processes in order to bring about changes in the operations of the business (Schneider,
Ehrhart and Macey 2013). Therefore, it can be said that change in a business organization is
important and the organizational culture and leadership style of the business should support
the same.
The leadership style which is followed by the business is also an important factor and
most of the businesses prefer participative leadership style for managing the employees of the
business. This style of leadership allows the management to take inputs from the employees
and implement the same in the organization. This style of leadership is considered to be
effective as the same involves the employees in the decision making process. The leadership
style of a business is interlinked with the organizational culture and it is on the basis of the

5
ORGANIZATIONAL BEHAVIOUR
same strategies are to be formulated for the business. The goals and objectives which are set
by the business needs to be followed by establishing appropriate work culture helps in this
aspect. The performance standard for a business includes both financial performance and
non-financial performance. More and more studies show that appropriate culture in
combination with proper leadership style improves the financial performance and also
enhances the efficiency of the business. In addition to this, the same also helps in meeting the
social obligations of the business (Cao et al. 2015). The employees are satisfied with the
work environment and therefore can contribute more to the goals and objectives of the
business and this strategy also helps the management to retain and recruit skilled employees.
In addition to this, the business would also be able to demonstrate to the public the level of
efficiency and ethical standards which is maintained in the organization.
An ideal work culture in a business should think from the perspective of the
employees and frames all the strategies which can lead to personal development of the
employees of the business. The managers of a company need to demonstrate support and care
towards the employees so that they can able to take risks as well as perform appropriately
within the framework of the goals set. The work culture of a business should encourage the
employees and also motivate the same so that goals of the business can be attained (Yang,
Huang and Hsu 2014). In combination to this, appropriate form of leadership helps in
building the confidence of the employees and also motivates them. All these factors promote
job satisfaction for the employees and this itself is one of the achievements of the business.
The job satisfaction level of employees determines the overall performance of the business as
this promotes efficiency in the organization.
Conclusion

6
ORGANIZATIONAL BEHAVIOUR
The above discussion appropriately shows the relationship between organizational
culture leadership style and overall performance of an organization. The organizational
culture and leadership style which is followed by the business forms part of the
organizational structure of the business. The discussion shows that an appropriate
organizational structure should be able to promote sense of direction and promote the goals
and objectives of the business. The organizational culture of the business is an important
consideration as a positive culture would motivate the employees of the business and help in
enhancing the level of performance of the business. The organizational culture of a business
needs to be such that it helps the employees in attaining higher skill level and also motivate
the same.
The discussion which is shown above also reflects that appropriate style of leadership
is quite important for enhancing the efficiency in the operations of the business. The
discussion also shows the importance of change in the operational structure of the business so
that competitive advantage can be gained in the market. The analysis further reveals that in
order to facilitate change in the operational process appropriate leadership style is required so
that the employees of the business can be directed to achieve the goals and objectives of the
business. Therefore, it can be said that culture and appropriate leadership style in a business
has impact on the financial performance of a business and the same also affects the social
aspects of the business. The business would be able to maintain efficiency as well as retain
skilled employees in the business process if proper culture and leadership style is followed.

7
ORGANIZATIONAL BEHAVIOUR
Reference
Acar, A.Z. and Acar, P., 2014. Organizational culture types and their effects on
organizational performance in Turkish hospitals. EMAJ: Emerging Markets Journal, 3(3),
pp.18-31.
Awadh, A.M. and Alyahya, M.S., 2013. Impact of organizational culture on employee
performance. International review of management and business research, 2(1), p.168.
Cao, Z., Huo, B., Li, Y. and Zhao, X., 2015. The impact of organizational culture on supply
chain integration: a contingency and configuration approach. Supply Chain Management: An
International Journal.
Choudhary, A.I., Akhtar, S.A. and Zaheer, A., 2013. Impact of transformational and servant
leadership on organizational performance: A comparative analysis. Journal of business
ethics, 116(2), pp.433-440.
Cris.maastrichtuniversity.nl. (2020). [online] Available at:
https://cris.maastrichtuniversity.nl/ws/files/1520009/guid-218d0a0e-da11-4a15-9000-
aa0a6a3b326d-ASSET1.0 [Accessed 15 Mar. 2020].
Hurduzeu, R.E., 2015. The impact of leadership on organizational performance. SEA–
Practical Application of Science, 3(07), pp.289-293.
Iosrjournals.org. (2020). [online] Available at: http://iosrjournals.org/iosr-jbm/papers/Vol6-
issue6/G0665663.pdf [Accessed 15 Mar. 2020].
Jacobs, R., Mannion, R., Davies, H.T., Harrison, S., Konteh, F. and Walshe, K., 2013. The
relationship between organizational culture and performance in acute hospitals. Social
science & medicine, 76, pp.115-125.

8
ORGANIZATIONAL BEHAVIOUR
Pdfs.semanticscholar.org. (2020). [online] Available at:
https://pdfs.semanticscholar.org/5048/0af4e4f6ba05f587112078be43edacf83abb.pdf
[Accessed 15 Mar. 2020].
Schneider, B., Ehrhart, M.G. and Macey, W.H., 2013. Organizational climate and
culture. Annual review of psychology, 64, pp.361-388.
Tsai, Y. (2011). Relationship between Organizational Culture, Leadership Behavior and Job
Satisfaction. BMC Health Services Research, 11(1).
Uddin, M.J., Luva, R.H. and Hossian, S.M.M., 2013. Impact of organizational culture on
employee performance and productivity: A case study of telecommunication sector in
Bangladesh. International Journal of Business and Management, 8(2), p.63.
Yang, L.R., Huang, C.F. and Hsu, T.J., 2014. Knowledge leadership to improve project and
organizational performance. International Journal of Project Management, 32(1), pp.40-53.
Yıldırım, N. and Birinci, S. (2013). Impacts of Organizational Culture and Leadership on
Business Performance: A Case Study on Acquisitions. Procedia - Social and Behavioral
Sciences, 75, pp.71-82.