Leadership and Organizational Behavior Report: Performance and Rewards

This report provides a comprehensive analysis of leadership and organizational behavior, exploring essential aspects such as leadership skills, various leadership styles (autocratic, democratic, and laissez-faire), and the significance of effective communication and decision-making. The report delves into motivation theories, comparing reward systems in Tesco PLC and Ritz-Carlton, and examines employee engagement strategies. It further investigates the benefits of teamwork, including increased productivity, innovation, and improved morale, while also addressing the challenges of team dynamics. The report concludes with an examination of performance appraisal procedures within Tesco PLC, evaluating their usefulness and success, and proposing factors for planning a performance management system. The report highlights the importance of employee motivation, engagement, and effective performance management for organizational success.

Leadership and Organization Behavior

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A Examining the skills and attributes needed for a leader..........................................................1
B Different type of leadership styles...........................................................................................1
TASK 2............................................................................................................................................2
A Reward system in Tesco PLC and Ritz-Carlton, comparing the motivational theories..........2
B Measuring engagement and motivation of Tesco PLC and Ritz-Carlson................................3
C Ways to motivate staff.............................................................................................................3
TASK 3............................................................................................................................................4
A Benefits of team work..............................................................................................................4
B Working in a team for me and others.......................................................................................4
C Effectiveness of a team............................................................................................................5
TASK 4............................................................................................................................................5
A Performance Appraisal procedure in Tesco PLC....................................................................5
B Evaluating the usefulness and success of performance appraisal process in Tesco PLC........6
C Factors involved in planning a performance management system, Proposing a new appraisal
process.........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Leadership and organization behavior tends to make a better understanding of human
behavior in an organization, and as how to develop the leadership abilities of an individual by
engaging them into certain areas, to expand and lead the organizational change in a positive
approach.
TASK 1
A Examining the skills and attributes needed for a leader
To develop a strong management style in an organization, good leadership has always
proven to be successful. To become a good leader, one need to possess certain skills, traits and
knowledge. These qualities and characteristics include being passionate towards the work,
having an effective communication power to interact with the employees, commitment to the
staff by building a strong team and being decisive, which defines the ability of making quick,
logical and correct decisions. For example, Bill Gates, who founded the world's largest business
Microsoft. He is among one of the most successful business leaders. He effectively played his
leadership role by being very passionate towards his work and make tough decision, at times.
There's a slight difference among leaders and managers, where leaders are more likely to take
risk which defines their risk taking ability (DiPaola and Tschannen-Moran, 2014). Contradictory
to that, managers are more focused to avoid the risk and works for minimizing it. Another great
example is Mark Zuckerberg, who is the co- founder and CEO of the social networking website
Facebook. He majorly played the role of a manager, carrying the leadership qualities of being a
great speaker and communicator to his team. He subsequently made commitments towards his
work and successively fulfilled the same (Bolino and et.al., 2013).
B Different type of leadership styles
Leadership style is a way towards the success of the organization. It is a style of directing
people, implementing useful plans and motivating the employees of the organization. There are
mainly three type of leadership styles being used in an organization, namely:-
1. Autocratic- Such type of leaders believe in direct supervision to maintain a healthy
environment. They have more focus on efficiency. For example, in real life of Mark
Zuckerberg always command his colleagues to complete a particular task. As a result of
1

which, today Facebook is successfully becoming worldwide. Thus, Authoritarians
believes in productivity.
2. Democratic- Also known as participative leadership, helps in boosting the morale of the
employees by involving them in the decision making process. Mark Zuckerberg often
takes feedback from his colleagues for making a better layout for Facebook. Due to
which, he put better features which helps people easily connected to the world (Shin,
2012).
3. Laissez- faire- It is that style of leadership, in which all the decision making rights are
given to the workers of the organization. It gives full freedom to the employees, which
lacks direct supervision and sometimes also leads to low production, deficit control and
an increasing costs to the company. In the real life scenario, Mark Zuckerberg sometimes
let his colleagues to make changes in the Facebook layout (Hoch and Kozlowski, 2014).
He even do not disturb or correct them, when they are fully wired in it.
TASK 2
A Reward system in Tesco PLC and Ritz-Carlton, comparing the motivational theories
Motivation is an abstract concept used to explain behavior. Motivation involves certain
theories to identify its need in a better way. In context to it, most of the companies have
introduced reward management. It is one of the crucial strategies of HRM. The two companies
namely, Tesco PLC and Ritz-Carlton has been opted here to determine their reward system.
Tesco PLC is one of the biggest multinational retailer, headquartered in UK. It is a team of over
480, 000 people, serving in 11 markets. It too believes in rewarding their employees as a part of
employment relationship. It has been used as a tool to raise the commitment and performance of
the employees. Tesco follows Vrooms expectancy theory which defines that employees seeks
reward as a return in exchange of their performance, being appreciated by the employer.
Contradictory to that, Ritz- Carlson, believes in the McClelland theory of motivation (Avolio,
and Yammarino, 2013). It is also called as Need theory or three needs theory, which defines that
how the needs for achievement, power and affiliation affects the actions of people. The Ritz-
Carlson is one of the luxurious chains of hotel, founded in 1983 and presently consists of around
35000 employees. It provides outstanding benefits, compensative pay and benefits with equal
recognition and growth opportunities (Colbert, Barrick and Bradley, 2014).
2

B Measuring engagement and motivation of Tesco PLC and Ritz-Carlson
Employee engagement is another key tool for the employers to motivate and retain their
employees. It defines the relationship between an organization and its employees. It is basically a
contribution of three things, namely involvement, commitment and productivity. As, it has been
believed that an organization with more employee engagement always outperform compared to
an organization with low employee engagement. Similarly, the objective of Tesco PLC and Ritz-
Carlson is also to make it a better place to work, by a more engaged workforce. They gained a
better understanding of what really mattered in all the areas of their business and concluded
employee retention, motivation and reward system as an essential part for getting success at all
levels, considering that, Happy workers tends to be more productive (Chhokar, Brodbeck and
House, 2013). Tesco PLC too provides both tangible and intangible type of benefit to its
employees. Being rewarded for doing a good job, keeps the employees motivated and helps them
in performing to their full potential. Thus, Tesco provides ruthless, easy and continuous rewards
to its staff in order to build trust and loyalty among the employees. It also provides a vast range
of competitive benefits, reflecting what employee's value the most, including medical benefits to
the employees and their family and tuition subsidies for employee's children. Similarly, the other
company Ritz-Carlson also provides day one benefits to its employee's which involves low cost
food for the employees in the employee's dining room, discount in hotel rooms and resort, retail
discounts and dining discounts, etc. (Miner, 2015). The employee's also gets a recognition here
and various growth opportunities. Hence, the reward system of both the companies are
effectively proven, as a result to which, they attain a successful position today.
C Ways to motivate staff
Beside using numerous motivational theories, there are many other ways to motivate the
staff of an organization. Some steps are- Acknowledging professional achievement by communicating better- One must
communicate frequently to the staff by actually speaking to them face to face which gives
a sense of value to the employee's and is one of the best way to show an appreciation
towards their hard work. Offering opportunities for advancement- Employee gets best motivated, when they
know that they are working towards something. Offering training to them is another best
3

way to provide them the skills they will need to climb up their ladder of career (Verba,
2015). Supporting new ideas- One should always listen to the employee approaching with new
ideas for the betterment of the company. Supporting is definitely motivating, whether it
works at the end or not. Not letting them to become bored- Celebrating festivals, and anniversaries together
provides a refreshing environment, which makes the employees feel better and they
perform well.
TASK 3
Below are some information, based on my experience of working in Tesco PLC for the
past two years at the position of HR.
A Benefits of team work
Team work is a dynamic process. It is basically a group of two or more people united to
achieve a common business goal. As per my own experience, I identified few benefits of
working together in a group.
1. It has increased my productivity and performance- By working together, one can always
achieve more than working individually. Also, a wider range of knowledge helps in
completing the activity on time by sharing and discussing ideas with each other, resulting
in a better performance.
2. Increased innovation- Working together creates an environment which excels at creativity
and learning.
3. Improved Morale- Teamwork allow the employees to perform with greater responsibility
for making decisions (Carter and et.al., 2013).
4. It offers a support system- Working with others meant that I am not alone and whenever I
am facing some issue, I can easily ask someone else to help me out.
B Working in a team for me and others
My experience of group work was a boon. Especially, when it taught me the conflict
resolution skills, which has undoubtedly helped me to become an effective manager. Conflicts
4

can certainly take place anywhere. Employees coming from various backgrounds tends to have
different work style and habits, which could sometime lead to a dispute. Being in the position of
an HR, I am the only responsible person to seek it out. However, in contrary to that, few other
employees working with me did not found it so helpful. According to them, it was a longer
process causing delay and limiting their creativity (Gardner, 2012). They were also dealing with
an unequal participation, facing difficulty in presenting themselves as team players.
C Effectiveness of a team
Team effectiveness is also known as group effectiveness defines the capacity of a team to
accomplish the assigned tasks and goals. An effective team consists of members who have the
necessary skills to complete the assigned task. In an effective team, the task is divided among all
the members. Effective team members are those who are engaged in open communication,
carrying an active listening and responding power (Solomon, 2014). In an effective team,
workers trusts and supports each other. The four common stages are used to develop an effective
team:- Forming- It is the initial stage in which the team has started forming and establishing its
ground rules. The members started knowing each other, finding ways to relate. Storming- In this step, the members will set a formulated plan, once they get the goals
and objectives needs to be achieved. Norming- The members get united in this step by determining the roles, each individual
will play in the group. Some roles include leader, researcher, recorder, etc.
 Performing- Here the members work together to accomplish the goals and objectives.
TASK 4
A Performance Appraisal procedure in Tesco PLC
Process of performance Appraisal, also called as performance review is one of the most
interesting part of HRM. In this procedure, the employees are being judged on the basis of their
work performances and become eligible for the further incentives and other benefits provided by
the company. It plays a very crucial role in motivating the employees to perform and give their
5

best. Based on my own experience of working in Tesco as an HR, below is the process I used to
plan and prepare for the assessment of performance appraisal-
1. Establishing performance standards- It is the first step in which certain set of standards
are built to use as a ground for comparing the performance of the employees. It's a
criterion to judge the actual performance of the employees with the desired performance
and see whether they are successful or not.
2. Communicating the standards- This is the step in which being a management, I need to
communicate the established performance standards and expectations to its employees.
Thus, they can perform accordingly (Zhang and et.al., 2013).
3. Measuring the actual performance- It is one of the most difficult part of this process
where I needed to measure the performances done by the employees during the given
period. It is a never ending process which need a continuous monitoring of the
performances throughout the year. It requires a cautious selection of an appropriate skill
for measuring the performances.
4. Comparing with standards- This involves comparison of actual performances of the
employees with the desired performance. It shows difference in the performances of the
employees from the standard set.
5. Discussing results- It includes providing feedback to the employees, where the appraisal
is being shared with them on one to one basis. The focus of this discussion is on
communication and listening, where the problems and its solutions are being discussed to
reach the desired result (Dijke and et.al., 2012).
6. Decision Making- The whole purpose of employee appraisal is to make decisions by HR
about rewarding the employee, promotion, demotion, transfers, and sometimes even
suspension, all depending upon the performance of the employee as per the standards.
B Evaluating the usefulness and success of performance appraisal process in Tesco PLC
Performance appraisal is a formal and unbiased process of reviewing and judging the
performance of the employees. It is a multifunctional tool that can be used for concerning the
effectiveness and productivity of an individual or a team. Some benefits are as mentioned below- Performance improvement- Feedback allows the employee's to improve their
performance.
6

 Training and development needs- Deficiency in performance show an inadequate skill or
knowledge, which further shows a requirement of training and development to improve
their current job performance (Management and Leadership Development Program,
2014). Career Development- It enables the manager to counsel their employees in developing
their career. Promotions and transfers- It is a way of finding out an appropriate employee to assign a
promotion or transfer (López-Domínguez and et.al., 2013).
 Compensation decisions- This process is useful to compensate the employees by
increasing their pay and other incentives.
C Factors involved in planning a performance management system, Proposing a new appraisal
process
A strong performance management is based upon the processes one uses to measure the
reward and abilities of meeting the desired goals and achievement. Some traditional methods
include Rating Scales method and Ranking method, etc.
1. Rating scale methods- Under this method the appraisal traits are based upon attitude,
performance, regularity and sincerity, etc. which are further rated on by points on a scale
of 1-10. The employees are being assessed by the superiors or even their subordinates
and colleagues.
2. Ranking method- In this method manager makes a comparison among two or more
employees, instead of using a standard measurement (Sharif and Scandura, 2014). In such
cases, the top management employees usually get the rewards as bonus and promotions,
whereas those at the bottom sometimes either gets any punishment or their reward gets
suppressed.
Therefore, to actually build a strong performance management, one should use a modern method
of appraisal process, such as 360 degree performance appraisals. It provides each employee the
opportunity to receive feedback on the basis of their performance. It is a multi source feedback
used majorly for the employees at middle or senior level. It has four integral components that
involves self appraisal, superior's appraisal, subordinate's appraisal and Peer appraisal. Further,
offering a more extensive view towards the employee's performance (Robbin and et.al., 2013).
7

CONCLUSION
This report states the importance of leadership in an organization. It defines the required
skills and abilities of a leader to motivate employees in the best and effective way.
Understanding the theories of organizational behavior helps in growing and developing required
skills of leadership, fruitful for the future of a company.
8

REFERENCES
Books and Journal
Avolio, B. J. and Yammarino, F. J., 2013. Transformational and charismatic leadership: The
road ahead. Emerald Group Publishing.
Bolino, M. C. and et.al., 2013. Exploring the dark side of organizational citizenship
behavior. Journal of Organizational Behavior. 34(4). pp.542-559.
Carter, M. Z. and et.al., 2013. Transformational leadership, relationship quality, and employee
performance during continuous incremental organizational change. Journal of
Organizational Behavior. 34(7). pp.942-958.
Chhokar, J. S., Brodbeck, F. C. and House, R. J., 2013. Culture and leadership across the world:
The GLOBE book of in-depth studies of 25 societies. Routledge.
Colbert, A. E., Barrick, M. R. and Bradley, B. H., 2014. Personality and leadership composition
in top management teams: Implications for organizational effectiveness. Personnel
Psychology. 67(2). pp.351-387.
DiPaola, M. and Tschannen-Moran, M., 2014. Organizational citizenship behavior in schools
and its relationship to school climate. Journal of School Leadership. 11(5). p.424.
Hoch, J. E. and Kozlowski, S. W., 2014. Leading virtual teams: Hierarchical leadership,
structural supports, and shared team leadership. Journal of applied psychology. 99(3).
p.390.
López-Domínguez, M. and et.al., 2013. Transformational leadership as an antecedent of change-
oriented organizational citizenship behavior. Journal of Business Research. 66(10).
pp.2147-2152.
Miner, J. B., 2015. Organizational behavior 1: Essential theories of motivation and leadership.
Routledge.
Robbins, S. and et.al., 2013. Organisational behaviour. Pearson Higher Education AU.
Sharif, M. M. and Scandura, T. A., 2014. Do perceptions of ethical conduct matter during
organizational change? Ethical leadership and employee involvement. Journal of
Business Ethics. 124(2). pp.185-196.
Shin, Y., 2012. CEO ethical leadership, ethical climate, climate strength, and collective
organizational citizenship behavior. Journal of Business Ethics. 108(3). pp.299-312.
Solomon, M. R., 2014. Consumer behavior: buying, having, and being. Engelwood Cliffs, NJ:
Prentice Hall.
9

Dijke, M. and et.al., 2012. When does procedural fairness promote organizational citizenship
behavior? Integrating empowering leadership types in relational justice
models.Organizational Behavior and Human Decision Processes. 117(2). pp.235-248.
Verba, S., 2015. Small groups and political behavior: A study of leadership. Princeton
University Press.
Zhang, X. and et.al., 2013. RETRACTED: Ethical leadership, employee citizenship and work
withdrawal behaviors: Examining mediating and moderating processes. The Leadership
Quarterly. 24(1). pp.284-297.
Online
Gardner, K. P., 2012. The art of leadership. [Online]. Available
through:<http://gradworks.umi.com/35/19/3519990.html>. [Accessed on 10th March
2015].
Management and Leadership Development Program, 2014. [Online]. Available
through:<http://www.norcazacademy.co.za/training-workshops/advanced-management-
development/management-and-leadership-development-programme/>. [Accessed on 10th
March 2015].
10