Unit Title: OB

Unit No: 12

Student name: Andreea Mihaela Budihoi

ID: 11509

Organizational Behaviour
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Abstract
The report has been prepared based on organizational behaviour and how the organizational
politics, culture, power etc. influence the employees and organization environment. In the 2 nd
part, the report shows how to motivational theory works in any organization and emphasized on
the importance of motivation theory on every person work in an organization. Then the report
states about the effective and ineffective team management and analyse its value in an
organization. Lastly, from the report we can see how a company or organization emphasize on its
reputation and company value. Thus, to keep one’s reputation, the company took many necessary
management system and overall internal and external factors.

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Table of Contents
Abstract............................................................................................................................................2

Introduction......................................................................................................................................4

P1 Analyse how an organization’s culture, politics, and power influence individual and team
behaviour and performance.............................................................................................................5

P2 Evaluate how content and process theories of motivation and motivational techniques enable
effective achievement of goals in an organizational context.........................................................10

P3 Explain what makes an effective team as opposed to an ineffective team in an organization?

.......................................................................................................................................................13

P4 Implication of philosophies in organizational context to achieve business goal in situational

context............................................................................................................................................15

Conclusion:....................................................................................................................................16

Reference.......................................................................................................................................17

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Introduction
Organizational Behaviour is the study of human behaviour in organizational settings, the
interface between human behaviour and the organization, and the organization itself
(Organizational Behaviour Explained: Definition, Importance, Nature, Model, 2020). With this
study, one can improve one’s job performance, increase job satisfaction and encourage the
leadership. This assignment is based on how a retail company Harrods which has around 1200
outlets in the city practices its organizational behaviour. This report shows the influence of
political, power and organizational culture and through a team management theory it determines
the impacts on the organization. It also shows the importance of motivational behaviour and tells
the effective way of using motivational theories in order to achieving business objectives. From
the report, it can be said that, motivation plays a role in getting the organizational benefits as
well as can convert human resources into various actions effectively which increase the
efficiency rate of employees. Besides, cultural approach emphasized on full participation of
employees and staffs in achieving organizational objectives.

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LO1 Analyse the influence of culture, politics, and power on the behaviour of others in an
organizational context.

P1 Analyse how an organization’s culture, politics, and power

influence individual and team behaviour and performance.
Organizational Behaviour is the study of human behaviour in organizational settings, the
interface between human behaviour and the organization, and the organization itself
(Organizational Behaviour Explained: Definition, Importance, Nature, Model, 2020). It also
helps an employee to have a connection with the organizational environment and through this,
they are able to give their best to the organization. Harrods group, a private limited company
which is retail-based industry is established in 1849 in London. As mention, the culture and
politics of organization has an influenced their team based or individual performance. The
mission of the company is to gain profit by reducing their operating expenses and after that their
vision is to increase the rate of market share as well as assets value. The company has around
4000 employees and it offers quality and luxurious products like- clothing, electronics, beauty
items, bags, etc.

Organizational Culture: Organizational culture plays an important role in employees’ overall

satisfaction. It will attract the right employee for doing any certain work in the company. For
example- Harrods company continues these practices through employing different regional and
ethnic people.

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 r e
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Figure 1.1: (Organizational Culture)

Source: (Activecollab Blog, 2020)

Creative Culture: In this culture, employees can use their own creativity and leaders
emphasized the employees to think out of the box. Here, leaders are mostly focus on R&D, the
main objectives of this organization are to beat the competitors through innovation (Activecollab
Blog, 2020). For example- Harrods company managers always give the flow to their employees
to express their ideas. Through screening the best ideas picked by the managers and started
working in R&D to beat the competitors with new innovation and technology.

Collaborative Culture: This culture works exactly opposite of creative culture. In creative
culture, manager encouraged individual creativity and ideas, while in collaborative culture, the
company needs a large workforce in completing any work. Here, the manager gives more
emphasized on team work and collaborative works. For example: the marketing team of Harrods
company has to work together as a team and know consumer preferences, choices, etc. and
collaborates all the works for the company.

Competitor Culture: In this culture, the only things which matter the most is winning mentality
and succeeding over other companies. No team work or creativity works so much, the objective
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is to beat the other company and compete with them to achieve success. Not all the time it
creates a good impression among the employees. They may have lost their interest to work in
this culture and soon the company faces difficulties.

Controlled Culture: Controlled culture needs order and alignment which related to achieve the
organizational goals and objectives. Company leaders top-down reporting structure based on
hierarchy (Activecollab Blog, 2020). Here, the objectives and goals are pre-determined and the
order and works comes from top-down as a chain reaction. The employees have to knowledge
about the organizational structure and its objectives.

Bases and types of Power: Everybody wants power. It’s the most important aspects of human
civilization. Power can be in many forms like- defence, political, physical power, etc. In a
company the manager or leader have the power to make a decision whatever he/she wants.
Leader can use both powers, positive or negative. In an organization, the manager has the ability
to decide the works and give instructions to the employees to perform. Company uses many
powers to run their organization, like- coercive power, reward power, referent power, etc.

Coercive Power: Coercive power is a power where force is applied either psychological or
physical on the employees in an organization. Some manager often uses verbal abuse,
humiliation, or any other employees to complete the works forcefully. For example- the formal
CEO of the Harrods company wanted to increase the overall sales volume and for that he implied
coercive power on the workers. But often coercive power does not give positive outcomes.
Workers have to resign the jobs if they created any bad impressions for the company.

Reward Power: Reward power is a power to give rewards or recognition in the organization
which controlled by manager. A Manager can control the rewards like- salary increase,
promotion, recognition and other benefits based on his/her sub-ordinates and employee
performance. For example- Last year Harrods company decided to give various incentive
rewards like- medical and home allowance, recognition, etc to influence employees towards the
company.

Expert Power: Expert power is the power where power is related to some expertise or
information. A manager knows how to communicate the sub-ordinates and employees based on

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their expertise in different sides. For example- Harrods company had the communication skill to
interact with their employees and know how to use the power in other sectors. He can use his/her
power to influence and motivate the employees to work hard for the company.

Organizational Politics: Organizational politics refers to the activities which are associated with
the personal tactics and to improve personal and organization interests. Many time politics plays
a great role in many organizational decisions. There are 4types of organizational politics.

Decreased job
satisfaction

Increased
Anxiety
Organizational
Politics
Increased
Turnover

Reduced
Performance

Figure: 1.2: (Perceptions of Organizational Politics)

Source: (Organizational Politics, 2020)

Decreased Job Satisfaction: Practices of political in an organization creates many biased and
unethical situation for the employees. Many time employees are not evaluate correctly based on
their works. Politics and illogical activities create the environment unsuitable for honest and
sincere workers. For example- if any of the employee has a close relation with a manager or
makes good impression other than works, then it seems that, this employee remains under the

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observation of manager and get promoted and other rewards easily while a sincere and hard-
working employee do not judge based on its work.

Increased Anxiety: If an organization practices internal politics badly, it will create a bad
impression on the employee. Many times, they will face difficulties in doing their works and
making a decision. Sometimes due to politics, employees are divided many groups and create
various chaos which hamper the organization environment. As a result, the employees faced
mental trauma and increased anxiety about what to do in this type of organization.

Increased Turnover: The use of bad politics creates a bad impression towards the employees.
Often, they resigned from the work. The company does not have much time to solve this kind of
issues. As a result, many sincere and hard-working employees left the organization. For that
reason, the production level went down and the company started to loss its reputation and others.
Thus, with the bad reputation, impression, the company faces a lot of difficulties while facing
outside. Thus, the company increased its turnover due to negative effects.

Reduced Performance: The working environment in an organization is disrupted due to bad

practices of organizational politics. When any employee sees this kind of practices, they feel
confused what should they do. Many employees started to remain with an internal politics and
other unethical works while many sincere and hard-working employees left the company due to
these practices. Thus, the company reduced its performance resulting of bad practices of politics.

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L02 Evaluate how to motivate individuals and teams to achieve recommendations.

P2 Evaluate how content and process theories of motivation and

motivational techniques enable effective achievement of goals in an
organizational context.
Motivation is the set of forces which causes people to act accordingly. Motivation can increase
the work efficiency rate and employee performance in an organization (Employee motivation |
QuestionPro, 2020). Many time motivations work like magic. When any worker or employee has
fallen down or any unwanted situation occurred that time motivation, inspiration will work like
magic. It helps employee to lose their boredom, burden and many anxieties with proper
motivation. There are 2 types of motivation.

Types of
Motivation

Intrinsic Extrinsic

Figure: 2.1: (Types of Motivation)

Source: (Employee motivation | QuestionPro, 2020)

Intrinsic Motivation: Intrinsic motivation works for own purpose, self-improvement. Here,
employees do not look for any rewards or other possibilities rather, they work for themselves,
helps to build up their self-improvement and other internal skill. For example- an employee feel
tried and boredom for their day to day works. To remove this monotony and tiredness sometimes
Harrods company arrange some inter games competition in the organization like- puzzle, table
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tennis, cultural nights, etc. With this kind of refreshment, employees again get the energy to
perform their duty and increased the level of work.

Extrinsic Motivation: Rather than the intrinsic motivation, extrinsic motivation works when any
rewards or recognition attached with it. In an organization, many employees may not show much
interested on intrinsic motivation, but when any rewards and other things add with it, they feel
interested and perform their work accordingly. For example- Harrods company gives bonus
payment who works extra shift. So, if any worker needs extra money or bonuses, they will do
extra shift after their regular schedule.

The types of motivation theory: Motivation is very important for any organization. It
encourages the employees to work hard and through this company get benefits through
motivating the employees. There are many theories which can be followed for motivation,

Maslow’s Hierarchy of Needs: This theory is an approach by Abrahan Maslow where he

showed how one’s needs is changing with the time and change of people’s desire with
motivation.

Figure: 2.2: (Maslow’s Hierarchy of Needs)

Source: (QS Study, 2020)

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Physiological Needs: Things like- food, rest, air etc. which represent basic issues of survival and
biological functions. In organization, these needs satisfied through wages and the work
environment itself (QS Study, 2020). For example- Company can help an employee to fulfilled
their needs if they get their salary at the right time and get the bonuses at different occasions.

Safety Needs: Its give security to physical and emotional environment. Employees want the job
security, pension and free from all types of worry. These needs can be satisfied through working
in the organization. For example- Company started some insurance policy like- health insurance,
education policy, etc. for the betterment of employees.

Belongingness and love Need: This need related to social processes. Everyone needs love and
affection from nearer one. These needs can be satisfied from the outside of the organization.
Family, friends, neighbours, allowing the social interactions and affection towards each other.
For example- the company manager and the HR department continued a good relationship with
their employees. They organized 2-3 program where the company arranged something for the
employees’ family.

Esteem Needs: Esteem needs relate with the self-respect as well as feeling accomplishment
among others in the organization. These needs can be satisfied by working hard with honesty and
sincerely in an organization. Besides, the behaviour plays an important role in satisfying this
kind of needs. For example- the company started to distribute the share to the employees so that
they could think they were a part of this company.

Self-Actualisation Needs: These involves one’s potential for continued growth and individual
development. It’s the most difficult needs to fulfilled. One must have to be potential and develop
one’s according to the work environment (QS Study, 2020). For example- Company gives every
year the best performer recognition with some complementary rewards. This based on the
employee performance and potentiality throughout the year.

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L03 Demonstrate an understanding of how to cooperate effectively with others

P3 Explain what makes an effective team as opposed to an

ineffective team in an organization?

The word ‘team’ refers where two or more people are grouped together, interact, communicate
and influence each other for achieving any common objectives or goals (Concept of Teams,
2020). All the teams required some form of communication and process where the team member
can coordinate and share their thought in achieving the objectives. In an organization team
member need to be interdependence and collaboration to achieve a common goal. There are
different types of team from which the company choose to run their administration and get the
benefits from them. These are-

Administrative Team: The main objectives of an administrative team is to run the

administration of any organization. It has to solve the major problems in an organization and the
members have to focus on internally as well as externally environment. It required low
membership and the complexity level of this team is quite high.

Cross-Departmental Team: The main objectives of this team are to fix the structural
integration and helps in fixing the rules in an organization. It required high membership so that it
faces a low complexity level in its planning process.

Process Team: The focus of the process team is all about strategic. It is to be ensured that
members in an organization are comfortable with their group. The main function of this team is
to attached with all the department in the organization.

Different between effective and ineffective team: An Effective team is the team which has its
own conscious about its operations. An efficient manager of an effective team knows how to
cooperate with his/her team members and achieve the organization’s objectives. On the Other
hand, ineffective team tends to avoid any discussion of its own maintenance (Corporate Team
Building, 2020). In here, the team members are not serious about their responsibility as the team
leader does not have any control or interested to work for the betterment of his/her organization.
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 Table 1.1

Effective Team Ineffective Team

This team can engage employees to work This team will result in lack of planning and
sincerely and constantly. Thus, the rate of execution of a project. As a result, the total
production will be increased. outcome is zero in this company.

An efficient manager knows how to form an A bad leader can never be a role model
effective team and engage them to work. towards his/her team members. Thus, he/she
can not bring out the best from his/her team.

An employees and other workers need to If there is no relationship among other

build a good inter relationship among all the department, then many chaos and mis-
department in an organization. An effective communication situation occurred. Due to this
team and its manager can ensure this organization unable to make profit.
communication in the organization.

Bruce Tuckman’s Team Development Model: This model analyses 4stages. These are
forming, norming, storming, and performing. It also implies that the growth of the company
could not reach its productive and final stage without satisfying this process (Woodside, A.,
2010). According to author, overall team performance depends on content, process, and
feelings.

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L04 Apply the concepts and philosophies of organizational behaviour to a given business
situation.

P4 Implication of philosophies in organizational context to achieve

business goal in situational context.
Social Capital Theory: A French sociologist and public intellectual Pierre Bourdieu came out
with this theory. He was primarily concerned about the dynamics of power in society. He saw
social capital as a property of individual, rather than the collective. This theory deals with social
power on employee and shows how can people are motivated through social satisfaction and can
exercise their power in an organization (Claridge, 2020). It enables a person to use his/her power
on individual or group who has the resources. However, social capital stems from social,
economic, and cultural structures which enable us to differentiate the power and status for
individual or groups (Claridge, 2020).

Implication of Social Capital Theory in Harrods company: With the implication of social
capital theory in Harrods company, the manager influences the employees through giving social
benefits to them. Besides, a company has been focusing to keep the status among the industry.
For example- the CFO of Harrods company increases its market share as well as the company’s
reputation. He announced dividend to the shareholders and address to publish 20% bonus share
in an annual general meeting. Those new changing in the company helped the company to
increased its reputation and value.

Contingency Theory: Fred Edward Fielder proposed this theory in 1964 and later it modified by
3 factors. Those are- member-leader relationship, structural task and the position of power
(Robbins and Judge, 2019). According to this theory, situations can influence the organization
and none can solve the problem without solving the situation. It implies 2 variables, as-
dependent and independent variable.

Implication of Contingency theory in Harrods company: This theory states that the
organization’s goal is related to take the appropriate decisions on right time. Besides, it also

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implies that, an organization can organize its operation through an optimal course of actions
which can be dependent on both internal and external factors.

Conclusion:
Organizational Behaviour is the study of human behaviour in organizational settings, the
interface between human behaviour and the organization, and the organization itself
(Organizational Behavior Explained: Definition, Importance, Nature, Model, 2020). It’s also an
effects on job structure and includes the research on promoting innovation and motivating the
employees. Diversity in culture and regions permit an employee and workers to think differently
from each other. One can come up with one’s idea and innovation thought. The report shows the
analysis of organization power, culture and its behaviour and also states the influence to the
organization. The 2nd part of the report analyses about motivational techniques and how can an
effective team manage all the situation in any organization efficiently. Lastly, the report has
emphasized on building the reputation and company value in the industry.

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Reference
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Model. [online] Available at: <https://www.iedunote.com/organizational-behavior> [Accessed 2
November 2020].

ActiveCollab. 2020. Organizational Culture And Its Impact On Team Performance ·

Activecollab Blog. [online] Available at: <https://activecollab.com/blog/collaboration/team-
culture-and-the-impact-on-team-performance> [Accessed 2 November 2020].

Managementstudyguide.com. 2020. Different Types Of Power. [online] Available at:

<https://www.managementstudyguide.com/types-of-power.htm> [Accessed 2 November 2020].

iEduNote.com. 2020. How Employee Responses To Organizational Politics. [online] Available

at: <https://www.iedunote.com/employee-responses-to-organizational-politics> [Accessed 3
November 2020].

QuestionPro. 2020. Employee Motivation: Definition, Types, Importance, And Ways To Improve

It | Questionpro. [online] Available at: <https://www.questionpro.com/blog/employee-
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%E2%80%9D%20which%20literally%20means%20movement.> [Accessed 3 November 2020].

Qsstudy.com. 2020. Maslow's Hierarchy Needs Theory For Entrepreneurship Development - QS

Study. [online] Available at: <https://www.qsstudy.com/business-studies/maslows-hierarchy-
needs-theory-for-entrepreneurship-development> [Accessed 3 November 2020].

Total Quality Management. 2020. Concept Of Teams, Their Types And Functions. [online]
Available at: <https://totalqualitymanagement.wordpress.com/2009/04/21/concept-of-teams-
their-types-and-functions/> [Accessed 4 November 2020].

Corporate Team Building. 2020. Effective Vs. Ineffective Teams - Corporate Team Building.
[online] Available at:
<https://www.eventus.co.uk/effective-vs-ineffective-teams/#:~:text=Effective%20Teams
%20%E2%80%93%20The%20group%20is,discussion%20of%20its%20own%20maintenance.>
[Accessed 4 November 2020].
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Woodside, A., 2010. Organizational Culture, Business-To-Business Relationships, And Interfirm
Networks. Bingley: Emerald

Claridge, T., 2020. Bourdieu On Social Capital – Theory Of Capital. [online] Social Capital
Research & Training. Available at: <https://www.socialcapitalresearch.com/bourdieu-on-social-
capital-theory-of-capital/> [Accessed 4 November 2020].

Robbins, S. and Judge, T., 2019. Organizational Behaviour. Harlow: Pearson.

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