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Organization Behavior 1
Running Head: Organizational Behavior
Organization Behavior
Organization Behavior 2
Introduction......................................................................................................................................3
Activity1..........................................................................................................................................3
Task 1.1............................................................................................................................................3
Leadership Theories.....................................................................................................................3
Task 1.2............................................................................................................................................5
Evaluation of Impact of Managerial Styles.................................................................................5
Task 1.3............................................................................................................................................6
Analysis of Motivational Theory and Employee Motivation......................................................6
Task 1.4............................................................................................................................................8
Analysis of Theories related to Work Relationships and Interaction..........................................8
Activity 2.........................................................................................................................................9
Task 2.1............................................................................................................................................9
Characteristics of Different Organizational Structures................................................................9
Task 2.2..........................................................................................................................................11
Importance of Organizational Culture Theory..........................................................................11
Organizational Behavior Information Booklet..............................................................................12
Task 3.1..........................................................................................................................................12
Innovation and Creativity..........................................................................................................12
Task 3.2..........................................................................................................................................13
Importance of Learning.............................................................................................................13
Task 3.3..........................................................................................................................................14
Evaluation of Effectiveness of Team Working.........................................................................14
Task 3.4..........................................................................................................................................14
Effectiveness of Change Management......................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
Organization Behavior 3
Introduction
In today’s growing competitive businesses, it is essential for the organizations to follow
the fundamentals and principles of organization behavior for ensuring long term sustainability of
businesses. Organization behavior provides a framework for the organizations for attainment of
business goals and objectives. Application of motivation theories, management styles, leadership
theories, work relationships theories and strong organizational structure and culture is necessary
to gain competitive advantage (French, 2011). In this paper, the various aspects related to
‘organizational behavior’ will be discussed. In activity 1, the discussion will be held on
evaluation of leadership theories, motivation theories, management styles and work relationships
theories. In activity 2, the points related to characteristics of different organizational structures
and cultural theories will be discussed. In activity 3, discussion will be on different points of
organizational behavior information booklet, such as innovation and creativity, management of
changes, importance of learning organization and effectiveness of team working
Activity1
Task 1.1
Leadership Theories
Leadership theories play an important role in determining the success of an organization
because these theories are effective to lead, motivate and encourage employees toward achieving
goals and objectives of the organization. Different leadership theories are used by leaders of the
organizations to lead the workforce effectively.
Participative theory- According to this theory, great leaders encourage the employee
participation in the company meetings and decision making process. Leaders consider the views
and opinions of all employees for making the final decisions (Schein, 2010).
Organization Behavior 4
Relationship theory- This theory is also known as transformation theory. This theory
concentrates on strong relationships among leaders and followers (Yukl, 2007). Leaders
appreciate the employees for their remarkable performance or valuable contribution. Leader
encourages the environment of team work, coordination and support among employees.
Trait theory- According to trait theory, leadership depends on traits or qualities of the
leaders (Talha, 2013). Traits can be defined as personality or behavioral characteristics shared by
leaders. The leaders can have several traits, such as self confidence, self determination,
Coordinate, extraversion and courage that determine suitability of leadership theory.
Contingency theory- According to this theory, leadership depends on contingent
situations or environmental variables that determine the suitability of leadership theory. There is
no particular theory for all environmental conditions. Each leadership theory doesn’t suit all the
situations.
Behavioral theory- According to this theory, great leaders are not born, made.
Supportive and learning environment, coaching, training and skill development programs assist
in developing the skills, knowledge, values and qualities of leaders (Chance, 2013). According to
this theory, leadership depends on action and behavior of leaders, not on mental abilities or
internal affairs.
Great man theory- According to this theory, great leaders are born, not made. The
leaders have lots of qualities and abilities since childhood. Leaders are born with inherent
characteristics or qualities, such as charisma, intelligence, confidence, social skills and great
attitude that make them great leaders.
Situational theory- According to situational theory, leadership depends upon situational
variables. For example, to lead skilled, talented, Knowledgeable and experienced workforce, the
Organization Behavior 5
authoritarian leadership style can be used. To lead expert and technical employees, democratic
leadership style can be used.
Management theory- This theory is also known as transactional theory. This theory
gives special consideration to role of supervision and management policy in treating performance
of the people. For ex- performing employees are being awarded for satisfactory performance.
For poor performance and misbehavior, employees are being punished (Pillaiyan, 2013).
Task 1.2
Evaluation of Impact of Managerial Styles
Managerial styles are significant for the organizations to manage the workforce
effectively by reinforcing their behaviors, attitudes and values. Managerial styles are effective to
coordinate the efforts of people toward achievement of organizational goals and objectives.
Different managerial styles are used by the organizations to manage the workforce:-
Democratic style- In this style of management, each staff member participates in the
decision making process. Organizations follow two-way communication process for making
accurate decisions that improves the morale, job satisfaction, productivity and confidence of the
employees. This style is followed by Sainsbury Company that helps in consequently ensuring the
long term sustainability of the businesses (Sampane, Rieger and Roodt, 2002). This style of
leadership helps in achieving the primary objective of building harmony relations among
employees and managers.
Authoritative style- This style of management focuses on providing guidelines and
directions for achieving long term objectives and vision of the company. In this style, leaders and
managers direct and motivate the employees by persuasion and feedback on their performance.
Organization Behavior 6
Participative management style- This approach focuses on participation, teamwork,
coordination, credibility and flexible and supportive working environment. In this style,
participation of the employees is considered for decision making process.
Autocratic style: In this style of management, leaders and managers take effective
decisions without participation of employees. In this style, leaders and managers have full
authority and their own control for making decisions (Peck and Dickinson, 2008).
Bureaucratic style: This style is more effective to reduce risk factors. It focuses on use
of technology, machinery and equipments to complete the strategic decision. Leaders take
decisions to achieve organizational goals and objectives effectively.
Charismatic style: In this style, leaders change their perception and decisions according
to available risk factors and create long term communication for strategic decision (Cheryl,
2010).
Task 1.3
Analysis of Motivational Theory and Employee Motivation
Motivational theories are necessary for the organizations for increasing the morale, job
satisfaction and productivity of the employees. Different motivational theories are applied by the
companies to motivate employees toward attainment of organizational goals, objectives and
targets.
Maslow’s Hierarchy needs theory- According to this theory, there are five basic needs-
psychological, safety, belongingness, self actualization and self esteem needs that are arranged in
a pyramid. The most common or basic needs, such as psychological needs are at the bottom of
pyramid and are well defined and easily met (Petri and Govern, 2012). The higher needs, such as
self actualization needs are not met and infinite and company tries to achieve them.
Organization Behavior 7
Hertzberg’s hygiene theory - According to this theory, there are two factors- hygiene
factor and motivational factor. Hygiene factors include flexible working environment, workplace
diversity, attractive pay, adequate facilities, good working relations and directive supervision.
Motivation factors include opportunities for recognition, advancement and professional growth.
Hygiene is required to meet the basic expectations and motivation factor leads to increasing
performance and confidence level (Schermerhorn, Osborn, Uhl-Bien and Hunt, 2011).
Vroom’s expectancy theory – This theory believes that motivational level reaches at
peak when employees thinks that best of their efforts lead to high performance toward achieving
organizational goals and objectives (Clarke, 2011).
Mc Cleland’s theory- According to this theory, there are three basic needs- affiliation,
power and achievement. All of three needs are necessary to motivate employees toward
achievement of organizational goals and objectives. Affiliation- This shows building positive and
Organization Behavior 8
good working relations. Achievement- it shows strong will to perform. Power- it shows control
on the performance of others.
Employee Motivation
Motivation is the internal state or condition of mind that serves the organizations to
reinforce or energize the behaviors of humans and gives recommendations and directions for the
employees toward attainment of organizational goals and objectives. Motivation is intended to
provide concrete ideas to enhance employee morale, performance and job satisfaction.
Motivation assists in enhancing the employee’s intrinsic sense of accomplishment, contribution,
involvement and satisfaction (Forgas and Harmon-Jones, 2014). Motivation is termed as
psychological feature that arouses employees to action toward desired goals and objectives and
sustains certain goal directed behaviors.
Task 1.4
Analysis of Theories related to Work Relationships and Interaction
Work relationships and interaction theories are necessary for the organizations to
establish positive and harmony business relations among employer and employees. These
theories play an important role in increasing the performance, confidence and motivational level
of employees in order to achieve goals and objectives of the organization (Shultheiss and
Brunstein, 2010). Flexible work environment, safe and healthy workplace, seniors’ support,
adequate facilities of training and coaching, feeling of coordination and team work are important
for improving working relations among employer and employees.
Mayo’s human relational approach - According to Elton Mayo, team working is more
important for the organizations to create friendly work environment in order to increase
productivity and profits of company. Team working assists in enhancing the feeling of
Organization Behavior 9
coordination, team work, credibility and confidence level of the employees which is important to
increase the performance level and productivity of the workforce (Knights and Willmott, 2007).
Greater communication, organization of training, coaching and skills development programs,
succession planning and carrying out the meeting and employees reviews are fundamentals to
ensure long term performance and to develop skills, knowledge and self-reliance.
Maslow’s relationship theory- This theory leads to employee motivation and
performance (Louthans and Youssef, 2007). The performance of employees depends on
motivation, awards and relationships. If employees are motivated, they can contribute to
organization by their remarkable performance and brilliant efforts. Determining roles, duties and
responsibilities, establishing rules and regulations for the employees, setting performance
measures and use of technologies, scientific methods, training and coaching facilities are
necessary to improve work relationships and interaction.
Activity 2
Task 2.1
Characteristics of Different Organizational Structures
The organizations have three types of organization structures - Functional, Divisional and
Matrix.
Functional structure- This type of structure is found in all types of organizations
whether profitable or non-profitable. This type of structure well suits to small organizations.
Functional structure is so set that each portion of organization is grouped according to purpose.
The functions are separated according to expertise (Nelson and Quick, 2012). According to this
structure, there are several departments in an organization according to functions, such as
Organization Behavior 10
marketing, sales, customer support, finance, operation, accounting and HR department. Each
department is focused on skills, knowledge, capabilities and talents of labors.
Divisional structure- This structure is found in large organizations that operate their
businesses in large geographic areas. It groups the organization according to divisions. Division
separates the employees on the basis of product, market and geographic locations. This structure
is used to group employees on the basis of specific market. Divisional structure is effective in
meeting the needs more rapidly and specifically (Ahmad, Gilkar and Darzi, 2008). For ex-
Tecumseh Products Company operates businesses divisionally including a small engine division,
a parts division, a compressor division and a division for each geographic area.
Matrix structure- This structure is a hybrid of functional and divisional that is used by
large multinational companies. This structure allows functional and divisional structure to exist
in an organization. This is the most complex structure that uses combined form to present an
effective structure. This structure creates an effective coordination among different divisions and
functions. Divisions may be on the basis of product, brand, market and geographical area and
functions may be sales, accounting, human resource, marketing, operation and customer support.
For ex- Tesco Plc. Follows such type of structure for operating its business effectively (Pfister,
2009).
Organization Behavior 11
(Source: Tesco annual report)
Task 2.2
Importance of Organizational Culture Theory
Organizational culture is communicatively constructive and historical based system of
assumptions, values and interpretive frameworks that directs the organizational members to
perform their roles and duties and to face future challenges. Organizational culture theory helps
in understanding the organizations through a culture by focusing on values, beliefs, habits and
principles of the members that are reflected in their actions within the organization.
Organizational culture theory explains the behaviors within organizations (Contreras, 2007).
Organizational culture has a considerable effect on the interaction of people and groups within
their stakeholders in the firms.
Schein’s cultural model is based on five assumptions- nature of human nature, human
relationships, human activity, reality and truth and humanity’s relationship to nature. According
Organization Behavior 12
to this model, culture is important to connect artifacts to values. Critical cultural theory was
proposed by Carl Marx. This theory shows how social and technological structures within the
organization serve to oppress workers. It states that organizations are the sites of members that
shows struggle between owner and workers that result into domination and oppression of
powerless by powerful. It shows power, control and Hegemony (Schein, 2010).
Organizational Behavior Information Booklet
Task 3.1
Innovation and Creativity
Innovation and creativity are important for the organizations for making some changes
required for increasing motivational level, performance and productivity of the employees.
Innovation and creativity gives the organizations competitive advantage. According to Huang
and Yu (2011), an organization can facilitate innovation and creativity by fostering internal
research, development efforts and by forming external collaborating alliance. The purpose of
innovation and creativity is to invest in research and development by utilizing latest technologies
(Anderson, 2011).
According to Legros and Galia (2012), firms can use different sources for gaining the
knowledge of competitors’ product development, pricing, distribution and innovation strategies.
Firms need to not only invest in market research and product development but also analyze
competitors’ product and patents to being an innovative firm (Ryan, 2012). For ex- Sainsbury
Company uses latest technology and science for bringing innovation and changes such as,
Internet, extranets, online trading and trading through multiple channels. Justin king, the founder
of Sainsbury is known for innovative thinking and creative ideas. Due to his broad understanding
Organization Behavior 13
and innovative ideas of agric food chains, Sainsbury Company is able to expand its business in
more countries.
Task 3.2
Importance of Learning
Learning is an active and participative process that gives emphasis on teaching the
workforce rather than supporting and facilitating the growth of people. Learning is the most
important part of the organization that helps to improve performance, morale and productivity of
the employees. Learning culture creates an environment of coordination, team work, support and
credibility. Learning assists the organization by improving skills, knowledge, values and talents
of the workforce (Penger and Tekavcic, 2008). Learning is important in problem solving,
decision making, developing the full potential of the employees, encouraging an innovative and
responsive environment, sharing ideas to stimulate and develop best practices and monitoring
and developing talent.
Training, coaching and development programs follow learning events to continually
improve the performance. Learning encourages understanding and appreciation of perspectives
by challenging rigid behaviors and opinions. Learning assists in rapid growth and continual
improvement of performance. It helps in bringing innovation and creativity by developing
concrete ideas (Perkins and Arvinen-Muondo, 2013). Learning is important for long term
survival and gaining competitive advantage. Learning is important to acquire new information,
knowledge and understanding. It helps in resolving conflicts, issues and personal problems.
Organization Behavior 14
Task 3.3
Evaluation of Effectiveness of Team Working
Team is collection of individuals who collectively share their duties and responsibilities
for accomplishing tasks, goals and objectives. Team work is significantly effective in enhancing
the performance, productivity and confidence of the employees by coordinating the efforts of
employees toward achieving goals and objectives of the organization. Team work has significant
impact on organizational performance. It is important in achieving incredible results. Employees
not working in the teams can result in unnecessary disruption, failed delivery and strategic
failure.
An organization can maximize the effectiveness of team work by sharing knowledge,
experiences and values and by giving necessary directions and suggestions for the employees.
Team work is important for personal and career development to know team working strength and
weakness (Griffin and Moorhead, 2013). The team effectiveness can be defined by achieving the
criteria, like- output, social processes and learning. For ex- in Sainsbury Company, leadership
qualities, group interaction, interdependence and coordination help in solving problems and
inter-conflicts and in accomplishing their tasks.
Task 3.4
Effectiveness of Change Management
Change management is the complex process that varies according to individual’s needs.
Management of changes is effective to ensure long term sustainability of businesses. It is
effective to determine future vision, mission and long term objectives of the organizations by
making changes in business planning, strategies, policies and procedures according to market
Organization Behavior 15
situations (Jackson, 2006). Change management is a process to plan, initiate, realize, control and
finally stabilize to change policies and processes on corporate and personal level.
Firms can increase the organizational effectiveness by making changes, such as mergers
or acquisitions, restructuring or shifts in strategies. Effectiveness can be brought by making
changes in product development and market development strategies by providing value to
customers. Organizational effectiveness can be achieved by aligning business strategy with
workable talent management strategy (Hellriegel and Slocum, 2012). Change management is
designed to support changes at all levels for organizational effectiveness. Change management
helps the executives to drive organizational changes, empower leaders and managers to lead
through changes and enable employees to navigate and respond to change accordingly.
Conclusion
From the above study, it can be concluded that the principles, theories and fundamentals
of organizational behavior are important in determining the success of the organization.
Motivational theories, leadership theories and theories related to management styles and work
relationships play a significant role in achieving organizational mission and vision by motivating
employees toward achievement of organizational goals and objectives. Strong organizational
structure, supportive culture and change management are also effective in increasing
performance, productivity, morale and satisfaction of the employees.
Organization Behavior 16
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Organization Behavior 17
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