Organisational Behaviour: Leadership, Motivation, and Change Report

This report delves into the realm of organisational behaviour, examining key concepts such as leadership, motivation, and change management within the context of a real-world company, H&M. The report begins by defining these core areas, providing theoretical definitions of leadership, motivation to work, and managing change. It then contrasts and compares different leadership theories, including trait and situational theories, and explores motivation theories like Herzberg's Two-Factor Theory and McClelland's Need theory. The report also discusses change management theories, such as Lewin's Three-Stage Model and the ADKAR model. Finally, it applies these theories to H&M, analyzing how the company utilizes situational leadership and McClelland's motivation theory to manage its workforce effectively. The report highlights H&M's approach to leadership, employee motivation, and its ability to adapt to changes. This report aims to provide a comprehensive understanding of these topics, offering insights into how these theories are applied in practice within a multinational retail company.

UGB007 Organisational Behaviour
and the Management of People
assessment 2019

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Theoretical Definitions................................................................................................................1
Theories outlining the differences...............................................................................................2
Application of theories on H&M ...............................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Organisational behaviour can be defined as process of studying of individual and group
performance as well as various activities in the organisation. This is the area which results in the
examination of human behaviour within the workplace that have an impact on the
communication, work performance, job structure, leadership, motivation and change in the
organisation. Assessing the behaviour of the people in the organisation results in the proper
management of people in the company. In this report three topic such as leadership, motivation
to work and managing change are selected to discuss their definitions and theories related to
them which can be implements in the organisation which is H&M. It is a Swedish multinational
retail company for clothing for both men and women, teenagers and children as well.
MAIN BODY
Theoretical Definitions
As per the views of Kaufman, Alegbeleye and Cletzer, (2018) leadership can be defined
as an activity of a superior in order to influence the behaviour of its subordinate or a group of
employees in the organisation and motivate them to follow a particular course of action in the
organisation. It has been elucidated by Silva, (2016) leadership can be referred as an art of
influencing as well as directing the people in such a way that a leader is able to win their respect,
confidence, obedience as well as loyal cooperation for achieving a common objective of the
company.
As illustrated by Dagenais-Desmarais, Leclerc and Londei-Shortall, (2018) motivation to
work can be defined as a process when the employees are incentivised during the work in such as
way that they are able to reach the level of success and are able to provide a company a greater
values through their performance. As per the views of Kanfer, Frese and Johnson, (2017)
motivation to work can be defined as the willingness of an employee to exert higher efforts
towards the goals of the organisation in such a way the employee's need are achieved as well in
the organisation.
As per the views of Doppelt, (2017) managing change is a systematic approach which
helps in dealing with transformation as well as transition of company's goals, technologies or
processes. The main purpose of managing change is to implement the various strategies which
have an effect on change management process of the organisation. As illustrated by Hayes,
1

(2018) managing change can be referred as tools, processes as well as techniques for managing
employees side of transition which is required to achieve the positive business outcome. t in the
successful personal transformation in the company that results in realisation and adoption of
change within the workplace.
Theories outlining the differences
There are various theories of leadership but the two major leadership theories are Trait
Theories of leadership and Situational Theories of leadership. According to the trait theories, it
assumes that people inherit the leadership qualities as well as traits which make them better
suited for leading a group of people or an organisation. Trait theories helps to identify the
personality of a particular person as well as its behaviour which is shared by the leader. It can be
explained with an example, if a leader is courages, a leader will be willing to take risks within
the organisation. Traits of a person represents the key features of leadership which can explain
the qualities of leadership possessed by a leader of the organisation. Different people which
posses different personality traits which are associated with leadership but still does not want to
seek the position of leadership (Trivisonno and Barling, 2016). So, this means that it very
difficult to identify the traits of an individual and even some people lack traits which are
associated with leadership but still lead a group effectively.
On the hand situational theory of leadership suggests that leaders of the organisation can
choose the best leadership style based on the situational variables. This style also suggests that, it
is more appropriate to use different types of leadership style for making different types of
decisions. It can be explained with the example, if within an organisation there arises a situation
where leader is experienced and very knowledgeable so in this case authoritarian leadership style
will be more preferable. Situational theory of leadership enable a leader to become more flexible
as it allows to get adapted to the existing work environment as well as needs of the workplace.
Unlike trait theory of leadership, situational theory suggests that leadership is not based on
specific skills or traits of leader, but instead modifies the style of leadership as per need of the
organisation.
There are also various theories of motivation related to work, one of the best suitable
theory of motivation is Two-Factor Theory which was given by Hertzberg . According to this
theory, which states that it is the two factors which are essential for the employees in the
2

organisation that can result in the employee motivation to work as well as job satisfaction. These
two factors are as follows:
Hygiene factor: This is considered as one of the important factor for any kind of workplace and
its absence can lead to employees dissatisfaction which make work harder for them. This include
company policy, salary, employee relationship, etc.
Motivator factors: These are the factors which can lead to high level of satisfaction and
motivate employees for work much harder. It includes feeling recognised, enjoying work, career
progression etc.
On the other hand McClelland's Need theory suggests that needs are acquired or learned
through various kinds of events which employees experience within the work culture or
environment. This theory suggests that every person within the organisation could have one
among the three drivers of motivation to work (Workplace Motivation: Theories, Types and
Examples, 2019). These need are need for power, need for affiliation and high need achievers.
Need for power is mostly concerned with making an impact on others or desire for influencing
others. This can result in the ultimate satisfaction to employee and can motivate to work harder
as employee want to control other employees and events. Similarly, need for affiliation can
motivate employees to work as its results in the establishment as well as maintaining friendly
relations with other people in the organisation. Need for achievement this is also a major driver
for motivation to work, as this emphasis on the behaviour among the employees which results in
competition with high standards of excellence.
Change is vital for the organisation and there are various theories associated with it. One
of the best theory of managing change was given Kurt Lewin's freeze phases (Cummings,
Bridgman and Brown 2016). This theory suggests that process of change can move from one
fixed state to another fixed state through a series of activities. These different stages of process
of managing the changes includes:
1. Unfreezing: This stage involves the unfreezing of employees in order to make transition in to
new stage.
2. Changing: This is the stage which is recognised by transition or moving from one state to
another state and is marked by the implement ion of change.
3. Re-freezing: This involves reinforcing or stabilising the new state of change in the
organisation.
3

During the second stage i.e. activity state change manager has to prove their worth as it is
the stage where staff will react or will adjust or accept the change.
On the other another theory of managing change in the organisation is ADKAR model, it
is the model which is based on the incremental change. As compared to Lewin's freeze phases it
is much useful when organisational change is very difficult or frustrating for the leaders of
company and want to implement the changes successfully. There are five steps involved in this
framework which can help leaders in dealing with the change it includes:
Awareness: Awareness means making people aware about need for change.
It is important for an organisation to realize the importance of change and to make
employees learn the importance of change in an organisation.
Desire: Creating a desire for change.
An organisation need to create a desire in people working under the organisation to bring
change in it (Uzonwanne, 2015).
Knowledge: Giving information and skills to employees in order to achieve change.
Knowledge is the most important step while implementing any new change in
organisation whether it is man, machine or any new policies it is required that employees have
proper knowledge regarding it.
Ability: Applying knowledge in order to bring change.
An organisation must train its people and should try to know about the abilities. Training
is an effective method to enhance individual ability to do work.
Reinforcement: Making sure that employees use new method.
Organisation should make sure that its employees are making best use of new resources
or change which has been implemented in organisation.
Application of theories on H&M
Situational Leadership theory:
The founder of H&M uses the situational leadership theory in order to guide their
employees. The reason behind using this theory of leadership is that the H&M mangers and
leaders holds the view that there is no particular way to treat people as different people holds
different views therefore it is required that the leadership style must be changed depending upon
the type of group they want to lead (Holten and Brenner, 2015). H&M CEO who is Karl Johan
Pearson believes in using situational leadership style as it helps its employees to develop and
4

create their won ideas. Karl Johan Pearson tries to create a good work environment in which all
its employees feel free to communicate with other employees and their seniors. H&M workplace
it built such that which provide employees chance to openly express their views to others. The
H&M managers and leaders of the organisation tries to first analyse the present condition such as
working on new project, conducting meeting etc., and accordingly sets the leadership style which
best suits the situation as per their goal and circumstances. The managers and leaders of
organisation accepts the style as per requirement of an organisation.
In H&M all the people in an organisation treat everyone with respect and dignity. The
leaders are the role models in H&M. They try to take feedback from the employees so that
employees can present their own ideas.
As per the document which has been published by H&M leadership within the company
is about feedback, motivation, delegation and inspiration. Looking at the core values of H&M
which is first they believe in people and second H&M share entrepreneurial spirit. This emphasis
that H&M applies the delegation style of leadership which gives it people opportunity to present
their own ideas. As per this delegation leadership style, leaders in H&M are of low supportive
and directive behaviour of employees which means that followers are highly responsible for their
task. Therefore the new employees gain knowledge by their work experience and not by any
special training. As the situation in company does not remain same every time while doing day
to day operation and completing different projects the leader of H&M requires to make change in
leadership style in order to lead people and to encourage them.
McClelland's Human motivation theory:
H&M understands the importance of motivation for an employee. Therefore H&M
organisation make use of this theory in order to motivate their employees. As per this theory
there are three drivers of motivation which are needs for achievement, power and affiliation.
H&M not only provides various benefits to its permanent employees but part time
employees in order to motivate them. In order to analyse the individual need H&M tries to use
thematic appreciation test. As per this theory individual tries to get success instead of reward.
The H&M organisation identifies needs of an employees and accordingly set up their policies
and procedures which helps company to first identify individuals driver of motivation and
accordingly plan benefits for them. People who are high in achievement need tries to excel in
their work and therefore avoid both high as well as low risk situations. As high achievers are the
5

person who want to do work which has a moderate risk. They need regular feedback in order to
monitor their progress (Loganathan, 2019). Therefore H&M management tries to provide regular
feedback to their employees regarding their work. Also the organisation tries to provide such
people a challenging projects.
Secondly there are some people who are high in need for power. There are two type of
power which an individual need one is personal while other is institutional. The persons who
want power tries to direct others. While an individual who want institutional power tends to
organise the efforts of other in such a manner so that organisation goal can be achieved.
Therefore H&M tries to provide power seekers an opportunity to manage others in an
organisation.
While the people who are high in need of affiliation needs a good relationship with other
people and they want to be adapted by other people. Such type of people require the work which
is provide personal interaction. As the employees who are high in affiliation need are given an
opportunity to perform in team as they perform best in high cooperative environment.
Therefore H&M ensures that they set such policies and procedures for its employees
which helps in employee motivation. Such as organisation conducts a training programme for its
employees in order to enhance their skills and knowledge. The organisation tries to give
employees opportunity to get promotion by allowing them to present their skills and knowledge
in decision making process. Each and every employee is given equal opportunity of participation
in a decision making process so that every employee should feel valued to the organisation. As
some people in an organisation has an desire to get power which conversely results in better
performance (Kanfer, Frese and Johnson, 2017). Therefore in order to make employees
motivated for their job H&M provides wider opportunity to its employees. The organisation runs
the incentive programme for its employees. Once the employee has completed successful five
year than the employee starts to enjoy increase in profit. Which includes dividends and
contribution from company. And after employee turns to 62 they can get their share. H&M also
take help of various training programme in order to modify the needs of employees.
CONCLUSION
Knowledge and skills are two most important things which an individual require in order
to get success in any field. Knowledges ensures that individual does not make any mistake while
skills ensures that individual to find new ways of doing things. In order to work in an
6

organisation it is highly required that individual have proper knowledge and skill. The various
theories of motivation, leadership and change management helps organisation to create a good
working environment for its employees which helps employees in enhancing their skill and
knowledge. The report also helps in understanding that why it is important for company to make
use of various theories. The various theories helps organisation to maintain their employees and
provide them various benefits in order to enhance the performance of individual as well as
organisation.
7

REFERENCES
Books and Journals
Cummings, S., Bridgman, T. and Brown, K. G., 2016. Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. Human relations. 69(1).
pp.33-60.
Dagenais-Desmarais, V., Leclerc, J. S. and Londei-Shortall, J., 2018. The relationship between
employee motivation and psychological health at work: A chicken-and-egg
situation?. Work & Stress. 32(2). pp.147-167.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Holten, A.L. and Brenner, S.O., 2015. Leadership style and the process of organizational
change. Leadership & Organization Development Journal. 36(1). pp.2-16.
Kanfer, R., Frese, M. and Johnson, R. E., 2017. Motivation related to work: A century of
progress. Journal of Applied Psychology. 102(3). p.338.
Kanfer, R., Frese, M. and Johnson, R.E., 2017. Motivation related to work: A century of
progress. Journal of Applied Psychology. 102(3). p.338.
Kaufman, E., Alegbeleye, I. and Cletzer, D. A., 2018, July. Leadership Discourses: Exploring
Students’ Definitions of Leadership. In Association of Leadership Educators 28th
Annual Conference. Association of Leadership Educators.
Loganathan, N.E.O., 2019. Effective Change Management for Organisational Survival in the
Twenty-first Century: A Comparative View of the Kotter and ADKAR Change
Management Models. Interdisciplinary Journal of Economics and Business Law. p.198.
Silva, A., 2016. What is leadership?. Journal of Business Studies Quarterly. 8(1). p.1.
Trivisonno, M. and Barling, J., 2016. Organizational leadership and employee commitment. In
Handbook of employee commitment. Edward Elgar Publishing.
Uzonwanne, F., 2015. Leadership styles and decision‐making models among corporate leaders
in non‐profit organizations in North America. Journal of public affairs. 15(3). pp.287-
299.
Online
What is situational leadership?. 2019. [Online] Available through:
<https://online.stu.edu/articles/education/what-is-situational-leadership.aspx>
Workplace Motivation: Theories, Types and Examples. 2019. [Online]. Available Through:
<https://study.com/academy/lesson/workplace-motivation-theories-types-
examples.html>.
8

9