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Introduction

“Organizational behaviour is a learning that examines the collision that individuals, groups and structure have on behaviour within business for the purpose of applying such knowledge toward improving an organization’s effectiveness.” (Robbins)

An understanding of organizational behaviour is valuable for improving human behaviour in positive direction, on the one hand and the total organization climate, on the other hand. It tries to promote our understanding of the process of human behaviour and the changes that takes place in the goals, roles, values and interests of the organization members during the course of their association with organizations.

Task 1: Understanding Organisational Structure and Culture

Structure in one way is the planning of duties used for the job to be done whereas culture is the intricate as a whole which includes information, belief, art, ethics, customs and any other potentials and habits obtained by members of a society.

Organisational structures and cultures

Organizations are established in distinct ways to accomplish particular goals, and the structure of a business can help or hold back its progress toward achievement of these goals. Following are some of the different types of organisational structures and cultures.

Functional Structure and Culture

Functional structure is established so that every part of the organization is grouped in accordance with its principle. In this type of business, there may be a marketing division, a sales division and a production division. One of the disadvantages to a functional structure is that the synchronization and communication between divisions can be restricted by the organizational limits of having the various divisions working independently. (Writing)

Divisional Structure and Culture

Divisional structure is normally used in big companies that function in a wide geographic region or that have distinct smaller organizations within the umbrella group to cover up different varieties of products or market regions. The advantage of this structure is that the requirements can be met more quickly and more distinctively; however, communication is reserved because employees in different departments are not working mutually. (Writing)

Matrix Structure and Culture

Matrix structure is a mixture of divisional and functional structure. Usually used in big multinational organisations, the matrix structure permits for the benefits of functional and divisional structures to be present in one organization. This can generate power struggles because most parts of the concern will have a dual management. (Writing)

Relationship between Organisational Structure and Culture

If we suppose that organizational structure is calculated by four dimensions (specialization, standardization, formalization, and centralization) and culture is also measured by four dimensions (individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity), associations between these dimensions will explain the relation between organizational structure and culture. (J.D, 1966)

Effect on Tesco’s activities

Structure

Tesco is a hierarchical structure because it has a large number of levels and also a lot of people are accountable to more than one person prior to that information dig up to the boss. A hierarchical structure has various levels. Each level is governed by one person. A hierarchical organisational structure means that the sequences of command looks like a pyramid, with a large foundation of workers, who are in straight line supervision by the smaller level on top of them, who are sequentially supervised by the level over them, continuing on to the apex ranking officer such as CEO Terry Leahy in Tesco’s Circumstance. This sort of structure allows the workers in Tesco to know precisely what they have to do so they don’t hang around until they are told. There is clear authority and responsibility within the organisation that makes sure that everybody knows what they are undertaking and know that there will be cost if the tasks are not finished on time. [1]

Culture

Tesco has a very welcoming and supporting approach in the regular ways that staff at Tesco performs towards each other, and towards those external the company that can construct the ways people do things. The control arrangements and measurements are continuously under the management check to monitor the competence of the staff and managers’ conclusions. Meetings and communication at each stage of the company’s hierarchy symbolize a strong internal atmosphere so all the activities of Tesco Ireland are always streamlined and properly controlled. [2]

Factors Affecting Individual Behaviour at Tesco

According to John Ivancevich and Michael Mattson, the main aspects that persuade individual differences in behavioural prototypes are demographic factors, aptitude and skills, insight, attitudes and character. They are as follows:

Demographic Factors

These are socio economic conditions, education, ethnic group, race, age, gender, etc. Tesco choose persons that belong to good socio-economic environment, well educated, youthful etc as they are believed to be performing superior than the others. People functioning in Irish Tesco belong to different backgrounds, so demographic factors will affect their individual behaviour. [3]

Abilities and Skills:

The physical ability of an individual to do something can be expressed as ability. Skill can be described as the ability to act in a manner that allows a person to execute well. The individual behaviour and performance is very much prejudiced by ability and skills. As Tesco is a multi-skilled organisation, so individual behaviours are affected by skills the individuals possess. [3]

Perception

The cognitive procedure meant for understanding the environmental stimuli in a meaningful manner is referred to as perception. Every person on the basis of his/her situation can organize and read environmental stimuli. There are many factors that persuade the perception of an individual. [3]

Attitude

According to psychologists, attitude can be termed as a tendency to react favourably or unfavourably to particular objects, individuals or situations. The aspects such as family, society, traditions, peers and organisational factors manipulate the configuration of attitude. The employees can complete their tasks better in the organisation if they structure a positive attitude. [3]

Task 2: Approaches to management and leadership

Different leadership styles

Following are three different leadership styles that General Electric, Microsoft and Nissan have.

The pacesetting leader expects and models excellence and self-direction. If this style were summed up in one phrase, it would be “Do as I do, now.” The pacesetting style works best when the team is already motivated and skilled, and the leader needs quick results. Used extensively, however, this style can overwhelm team members and squelch innovation. Jack Welch began his career at General Electric in 1960, and by 1981 he was named the company’s eighth Chief Executive Officer. While Jack Welch was also known for his informal approach that allowed him to interact with employees at all levels in his organization, he was also a persistent and demanding executive. He sets the example of a pacesetting leadership style. [5]

Autocratic leadership style works well if the leader is competent and knowledgeable enough to decide about each and everything. Authoritative is considered one of the most effective leadership styles in case there is some emergency and quick decisions need to be taken. If there is no time left for discussion or weighing various options, then this type of leadership gives the best results. Authoritarian leadership style examples can be found in the real world in people like Bill Gates and John F Kennedy. Bill Gates followed the authoritarian style and steered Microsoft towards unbelievable success. [4]

The democratic leader builds consensus through participation. If this style were summed up in one phrase, it would be “What do you think?” The democratic style is most effective when the leader needs the team to buy into or have ownership of a decision, plan, or goal, or if he or she is uncertain and needs fresh ideas from qualified teammates. Carlos Ghosn is a successful business leader who employed democratic leadership principles and is credited for the remarkable turnaround of Nissan in 2000. [6]

Organisational Theory

Organization theory represents a young and complex field of study related to the behaviour of organizations and companies. Through particular methods like analysis, generalization and observation, organization theory specialists try to determine how companies and organizations will behave in certain situations. Organisational theory supports the management of Practice in Irish Tesco by stating that the people in Tesco belong to different backgrounds and areas, so their individual behaviours can be different, so there is a requirement of proper planning for team work and to adapting proper style of leadership here which I would suggest should be a democratic style.

Different Approaches to management

Following are four different approaches to management in different organisations

The empirical or case approach: In this approach, one tries to understand management principles with the help of cases. It also identifies the situations, wherein organizations have either succeeded or failed by following this approach. Its limitation is that situations are all different and this approach does not attempt to identify principles. There is also a limited value for developing management theory.

The interpersonal behaviour approach: This approach is based on individual psychology and focuses on interpersonal relationships. It ignores planning, organizing, and controlling. Critics also say that psychological training is not enough to become an effective manager.

The group behaviour approach: This approach is based on sociology and social psychology. It stresses on the behaviour of people in groups. This approach is often not integrated with management concepts, principles, theory and techniques and there will be a need for closer integration with organisation structure design, staffing, planning and controlling.

The cooperative social systems approach: It advocates a system of cooperation using both interpersonal and group behavioural aspects. One limitation of this approach is that it is too broad a field for the study of management and at the same time it overlooks many managerial concepts, principles, and techniques.

Task 3

Leadership styles and employee motivation

Transactional leaders achieve compliance from subordinates through an exchange of rewards for services. For example, transactional leaders will offer raises or promotions for higher work productivity. The weakness of this leadership style is that employees are not invested in their work and once rewards become unavailable, it is difficult to continue to motivate them. (Johnson, 2006)

Transformational leadership is the leader’s ability to motivate followers to rise above their own personal goals for the greater good of the organization. “Transformational leaders go beyond transactional leadership and are characterized as visionary, articulate, assured and able to engender confidence in others so as to motivate them to surpass their usual performance goals” (Schwarzwald, Koslowsky, & Agassi, 2001). The transformational leaders attempt to stimulate the undeveloped or dormant needs of their subordinates and hence their motivation level is enhanced and their performance is bettered.

As a manager I will use the transformational leadership style and thus will be able to apply different changing environments and at the same time keeping the level of motivation of employees at Tesco at a high level in order to keep the quality of work done.

Different motivational theories and their application