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ORGANIZATIONAL BEHAVIOR
ACTIVITY 1
A. Evaluation of leadership theories
Leadership is a process that influence group of people towards the realization of goals.
Theories of leadership are as follows:
Autocratic leadership Styles: This style clearly defines the division between leaders and
workers of organizations. Leader keeps strict and close control on employees to ensure that
whether policies and procedures are duly followed or not. Under this leadership style leader and
followers have no communication and interaction as workers just follow the instructions of
leader (Barling, Clegg and Cooper, 2008). The autocratic leadership style allows the managers to
make decisions alone without the interruption of other workers. This leadership style benefits the
employees who require close supervision. However, it has been evaluated that although the given
type of leadership style help manager in making the quick decision about its enterprise but it
causes direct impact upon the motivation level of employees. Due to this, high quality of services
will not be being delivered by the firm.
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Democratic leadership style: Under this, leader is sharing the decision making power
with employees but the final decision is only in the hands of leader. It motivates the employees
because they make contribution to the decision making process (Jackson and Parry, 2011). This
style helps the organization when there is a short time to take the decisions. Democratic styles
help team members to have high job satisfaction and productivity. But, the given style will be
proved as ineffective when manager have to make some quick decision. It is due to the fact in the
circumstance when manager have to make some major decision in faster way at that time it will
become difficult for it with regard to gather the views and opinions of other workers in an
effective way.
Laissez-faire leadership style: This style is considered as the least effective option. Under
this style, all the rights and power to make decisions in the organization are fully given to the
workers. Leaders do not provide any direction to the workers or followers which many times,
lead to reduced production and increasing costs (Huse, 2008). This style can only be used when
there are highly skilled, experienced and educated followers. However, it is evaluated that
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effectiveness of given style will be occur when firm possess the team of skilled and competent
employees upon which the manager of firm can rely.
Physiological needs: These are the basic needs like food, shelter and clothes. These needs
have to be fulfilled first. These needs are thought to be the most important needs for an
employee.
Safety needs: They stand on the second level in Maslows hierarchy of needs which
includes security like personal, money, health, accidents or illness of employees (Huse,
2008). These needs arise when the physiological needs are fulfilled.
Love and belongings: These include deals with family, friends or any other relations.
When the first two needs are fulfilled then love and belongings arises in employees.
Herzberg's motivational theory: This theory says that there are certain factors that causes
job satisfaction as well as causes job dissatisfaction among the employees.
This theory contains two factors which are hygiene and motivation factors. These two
factors affect the employees in a way to make them satisfied or dissatisfied. Job satisfaction
factors may include achievement, recognition, growth etc. Whereas job dissatisfaction factors
The first stage is that in which they get to know about each others family, education and
background.
The last stage is the one where the two individuals decide either to move ahead or else go
back to their ways.
Social exchange theory: This theory states that individuals continuously measure whether
the relationship is giving them more than or at least as much as they are putting into it. Since this
is a relational theory, so costs can be concluded by having poor communication or sacrificing the
interests to please the other individuals (Nelson and Cooper, 2007).
ACTIVITY 2
Analysis of the characteristics of different organizational structures
Every organization has a goal and its structure is one of the key units that affect the goal
of enterprise (Johnson and Steinman, 2009). Organizational structure is designed in such a
manner that serves as an instrument to execute the social goal.
Line organizational structure: It is the oldest and simplest form of structure. Under this,
the line of authority flows vertically from top to bottom. The chief executive holds all the
responsibilities and delegates it to the subordinates (Wilson, 2013). Each subordinate is
answerable to only its superior. A proper hierarchy is maintained. Its main advantage is that it
promotes fast decision making and it is very easy to understand.
Department line organization: All the activities of organization are divided into several
departments. This form is very simple to understand and to implement also. Each and every
person knows about the senior to whom they are responsible. Under this form, the adjustments
and changes can be done easily.
Line and staff organization structure: This system combines advantage of both line as
well as functional organization structure. Under this, the quality of decision is very good as it is
said to be a combination than chances of conflicts between line as well as functional structure
arises.
Controlling: Managers must measure and evaluate the performance to guarantee that it
would meet the requirement of plan (Dick and et.al., 2006). If the goals have not been
achieved then corrective measures have to be taken. When an employee is not performing
well then the managers need to provide him with a proper feedback which improves his
performance in the organization.
Teams help each other to improve the performance and work together to improve their
professional development.
Besides this, there are some disadvantages associated with the team working type of
approach which is being practiced by many firms. Lack of recognition of work which is being
performed by individual employees is being regarded as the major disadvantage of team
working. This leads to reduce the satisfaction level among workers and due to this direct impact
will be seen upon the sales and profits of enterprise. Furthermore, difference in the working
Tesco has the potential to gain competitive advantage over its strong competitors and also
have strength to attract the customers (Yoruk and Raosevis, 2002). Tescos organizational
structure is simple but they have huge labor force. The firm is using advanced technology that
helps company to minimize the human errors. Tesco's organizational culture represents the
values, believes and principles of members. Organizational culture affects the way in which
people and groups interact with each other and with clients and others.
The culture and structure of Tesco helps company to achieve the customer satisfaction
effectively and efficiently. All the employees of organization need to follow the structure and
culture properly. Culture and structure affects the effectiveness of Tesco by helping the
organization to achieve its goals and objectives.
ACTIVITY 4
Approaches to organizational decision making
Three decision making approaches to be considered are as follows:
Rational approach: It is represented as step by step decision making. This approach
defines the success factors, search information and logically looks at the way in which
each alternative meets each success factor (Barling, Clegg and Cooper, 2008). Decision
making is planned. With this approach, outcomes of the final choice are taken into
consideration.
Firstly, firm has to find out the type of uncertainty in the organization. There are mainly
five types of risks i.e. strategic, financial, operational and legal and other risks. Then to
find out which type of risk is creating issues in the organization.
When the risk is identified then managers need to find out the cost which is involved in
the risk (Lok and Crawford, 2004). Mainly financial risks has to be calculated properly so
that there will be less chances of human errors.
Lastly, when the risk is identified and quantified then it needs to be managed properly, so
that it will be easy for the organization to overcome with the risk.
CONCLUSION
From the above report, it can be concluded that the present report focuses on the way in
which organizational behavior helps the organization to get success in the market with
sustainability. Along with that, it has been assessed that by leadership theories, organization can
learn the way in which a leader can react towards its followers. Under this report, importance of
culture is discussed along with the way in which it affects the efficiency of employees. Further,
report has discussed the importance of learning and development as well as importance of
training in increasing the employees efficiency.