Unit7.1SR1 CourseOutline-7.1OrganisationalBehaviour 4OrganisationalBehaviour OBSampleAssignment1.zipOBSampleAssignment2.zip
 

• Type of paperResearch Paper
• SubjectBusiness
• Number of pages17
• Format of citationHarvard
• Number of cited resources15
• Type of serviceWriting

You have seen a recruitment advertisement for the position of ‘Organisational Development Officer’ at a large organisation in the City. Following your application, you have been shortlisted for interview and have been asked to complete a number of tasks to demonstrate  your knowledge and understanding of effective leadership behaviour,  the impact of organisational structures and cultures on effectiveness  how organisations can improve the effectiveness of employees in responding to business opportunities.

Unit Resources
Alvesson, M., (2012) Understanding Organisational Culture 2nd Edition, Sage
Publications Ltd.

Brooks, I., (2008) Organisational Behaviour: Individuals, Groups and
Organisation 4th Edition, Financial Times/ Prentice Hall

Buchanan, D and Huczynski, A., (2010) Organizational behaviour 7th Edition,
Financial Times/ Prentice Hall

Handy, C., (2009) Gods of Management: The Changing Work of
Organisations, Souvenir Press Ltd.

Hopkin, P., (2012) Fundamentals of Risk Management: Understanding,
Evaluating and Implementing Effective Risk Management 2nd Edition, Kogan
Page

King, D. and Lawley, S., (2013) Organizational Behaviour, OUP Oxford

Mullins, L. and Christy, G., (2013) Management and Organisational Behaviour
10th Edition, FT Publishing International

Nelson, D. L. and Quick, J. C., (2012) ORGB-3 3rd Edition. South-Western
College Publishing

Nelson, D. L. and Quick, J. C., (2012) Principles of Organizational Behavior:
Realities & Challenges 8th Edition, South-Western College Publishing

Northouse, P. G., (2012) Leadership: Theory and Practice 6th Edition, Sage
Publications Inc.

Robins, S. and Judge, T., (2012) Essentials of Organizational Behaviour 11th
Edition, Pearson

Schein, E., (2010) Organizational Culture and Leadership 4th Edition, Jossey
Bass

Senior, B. and Swailes, S., (2010) Organizational Change 4th Edition,
Financial Times/ Prentice Hall

Wilson, F., (2010) Organizational Behaviour and Work: a critical introduction
3rd Edition, OUP Oxford

Xenikou, A. and Furnham, A., (2012) Group Dynamics and Organizational
Culture: Effective Work Groups and Organizations, Palgrave Macmillan

7.1 Organisational Behaviour

Aims To explore the importance of different forms of organisational
behaviours in organisational effectiveness and efficiency. To
understand the importance of organisational structure, culture,
motivation, creativity and leadership.

Unit Level 7

Unit Code J/503/5092

GLH 60

Credit Value 15

Unit Grading Structure Pass

Assessment Guidance To achieve this unit, learners must achieve the learning outcomes
and meet the standards specified by the assessment criteria for the
unit. Additional assessment guidance is provided on the ATHE
sample assignment brief. The learner will need to demonstrate their
understanding of complex theories and concepts to meet the
standards required for this unit. Learners should use actual
examples from their own experience and research to support their
work. The learner must also apply their understanding to specific
organisations in order to achieve LO2 and LO4.

Learning Outcomes.

The learner will:

Assessment Criteria.

The learner can:

1. Understand effective leadership

behaviour theory and practice

1.1 Evaluate leadership theories
1.2 Evaluate the impact of managerial styles on

organisational effectiveness
1.3 Analyse how motivational theory can inform

employee motivation
1.4 Analyse theories relating to work

relationships and interaction

2. Understand how organisational

structures and culture impact on the

effectiveness

of the organisation

2.1 Analyse the characteristics of different
organisational structures

2.2 Evaluate the importance of organisational
culture theory in developing organisational
effectiveness

2.3 Analyse the culture and structure of one
organisation and evaluate how they impact
on its effectiveness

3. Understand how the organisation can

improve employee effectiveness to

respond to business opportunities

3.1 Analyse how organisation can facilitate
innovation and creativity

3.2 Assess the importance of learning in
organisations

3.3 Evaluate the effectiveness of team working
3.4 Analyse the effective management of change

in organisations

4. Understand organisational decision

making

4.1 Analyse approaches to organisational
decision making

4.2 Assess approaches to risk and uncertainty in
decision making

Level 7 Management Specification May 2014 1

4.3 Evaluate the effectiveness of organisational
decisions in a specific organisation

Level 7 Management Specification May 2014 2

Indicative Content

1. Understand effective leadership behaviour theory and practice

Leadership versus management
Leadership theory

 Personal leadership traits, trait theories (e.g. Allport. Eysenck Cattell); ‘great man’
theory of leadership; contingency theories (e.g. Fiedler, cognitive resource theory);
situational theories (e.g. Hersey and Blanchard, Vroom and Yetton); behavioural
theories (e.g. role theory, managerial grid/leadership grid); participative theories (e.g.
Lewin/Likert, transformational v transactional leadership, emotional intelligence

Managerial styles

 Autocratic, democratic, paternalistic, laissez-fair

Motivational theory

 Including Taylorism, Mayo, Maslow, Herzberg, McGregor, Broad theories (eg.
temporal motivation theory), cognitive theory

Working relationships and interaction

 Power, behavioural theories, social constructivism

2. Understand how organisational structures and culture impact on the effectiveness

of the organisation

Organisational structure

 Bureaucracies, stakeholders, re-engineered corporation, modular, networked and
atomised organisations, virtual organisations, line, staff & functional structures,
formal and informal organisations, designing organisation structure, centralisation
and decentralisation

Organisational culture

 Harrison – power, role, person, task cultures; Likert – autocratic, benevolent
autocratic, consultative participative; Mintzberg – simple, machine bureaucracy,
divisional, adhocracy; Pedlar et al – the learning organisation

How structure and culture impact on effectiveness

Leader as a change agent

3. Understand how the organisation can improve employee effectiveness to respond
to business opportunities

Innovation and creativity

 Organisational culture, integration / interaction of disciplines and teams, attitude to
risk, rewards

Organisational learning

 The learning, learning culture, knowledge capture and management, technical
knowledge versus experiential knowledge, technology

Level 7 Management Specification May 2014 3

Measuring performance

 Metrics, KPI, business scorecard, working in teams, group dynamics, teams versus
groups, communications, collaboration and team decision making, motivation of
groups

Managing change

 Changes (reorganisation, restructuring, merger and acquisition, downsizing),
communicating and managing change

4. Understand organisational decision making

Decision making approaches

 Normative, prescriptive and descriptive approaches, economic or rational choice
model, Simon’s bounded rationality model, incremental bargaining method, well
managed model (Peters and Waterman), quantitative approaches

Risk and uncertainty

 Role of stakeholders, attitudes to risk, risk identification and analysis, risk
management planning, enterprise risk management

Effectiveness of decision making

 Analysis and comparison of management decisions, evaluating decisions

Level 7 Management Specification May 2014 4

Important Notes:

1. You must familiarise yourself with the Academic Dishonesty and Plagiarism
Policy of LQA and ensure that you acknowledge all the sources which you use in
your work.

2. You must complete the ‘Statement and Confirmation of Own Work’.
3. Please make a note of the recommended word count. You could lose marks if

you write 10% more or less than this.
4. You must submit a paper copy and digital copy (on disk or similarly

acceptable medium). Media containing viruses, or media which cannot be run
directly, will result in a fail grade being awarded for this module.

5. All electronic media will be checked for plagiarism.

Marker’s comments:

Moderator’s comments:

Mark: Moderated Final

Mark: Mark:

January 2015

Assignment

Unit:
Organisational Behaviour

Unit 7.1 Organisational Behaviour

Level 7 15 Credits
Scenario

You have seen a recruitment advertisement for the position of ‘Organisational Development Officer’ at
a large organisation in the City. Following your application, you have been shortlisted for interview
and have been asked to complete a number of tasks to demonstrate

 your knowledge and understanding of effective leadership behaviour,
 the impact of organisational structures and cultures on

effectiveness

 how organisations can improve the effectiveness of employees in responding to business

opportunities.

Activity 1

As part of the selection process, you have been asked to prepare a report to submit at your interview.
In this report you must demonstrate your understanding of effective leadership behaviour theory and
leadership practice.

Your report must cover the following topics:
a) an evaluation of leadership theories
b) an evaluation of the impact of managerial styles on organisational effectiveness
c) an analysis of how motivational theory can inform employee motivation
d) an analysis of theories relating to work relationships and interaction

Assessment Criteria 1.1/1.2/1.3/1.4

Activity 2

You have been asked to give a presentation for the interview panel to demonstrate your
understanding of the impact of organisational structures and cultures on the effectiveness of the
organisation.

Your presentation must cover the following topics:
 an analysis of the characteristics of different organisational structures
 evaluate the importance of organisational culture theory in developing organisational

effectiveness

You will need to produce your notes for the presentation and have appropriate hand-outs for the panel
detailing the topics covered.

To support your presentation, the panel have requested an information booklet, which must cover the
following topics:

 an analysis of how organisations can facilitate innovation and creativity
 an assessment of the importance of learning in organisations
 an evaluation of effectiveness of team working
 an analysis of the effective management of change in organisations

Assessment Criteria 2.1/2.2/3.1/3.2/3.3/3.4

Activity 3

Following your interview, the panel have found it difficult to select one applicant and have asked you
to complete a final selection task applied to a specific organisation of your choice. You must create
an information pack which demonstrates your understanding of how the organisation can improve
employee effectiveness to respond to business opportunities.

Your information pack must include:

 an analysis of the culture and structure of the chosen organisation, including an evaluation of
how they impact on its effectiveness

Assessment Criteria 2.3

Activity 4

Congratulations – you have been selected as the new Organisational Development Officer. One of
your first tasks is to evaluate the effectiveness of organisational decision making. Your line manager
has asked you for a report.

Your report must include:

 an analysis of different approaches to organisational decision making
 an assessment of management approaches to risk and uncertainty in decision making

Following your preparatory work, your manager would like you to apply your understanding by
including in your report:

 an evaluation of the effectiveness of organisational decisions in an organisation of your
choice.

Your report should be informative and well presented.

Assessment Criteria 4.1/4.2/4.3

Guidelines for assessors

The assignments submitted by students must achieve the learning outcomes and meet the standards
specified by the assessment criteria for the unit. The suggested evidence listed below is how
students can demonstrate that they have met the required standards.

Activity
number

ACs Suggested evidence

1 1.1/1.2/1.3/1.4 The report must demonstrate learners’ understanding of a broad
range of leadership theories. When considering management
styles, learners must evaluate the impact of at least three
different styles on organisational effectiveness.

The report should include a detailed analysis of how a range of
motivational theories can inform employee motivation, along
with theories relating to relationships and interaction.

The report should be in an appropriate format suitable for the
audience given in the assignment.

2 2.1/2.2/3.1/3.2/3.3/3.4 The presentation should cover all the main topics stated in the

task, demonstrating analysis and evaluation.

The presentation format is flexible but must be supported by
detailed notes, which demonstrate how organisational
structures and culture impact on the effectiveness of the
organisation. The handouts prepared by the learner must be
detailed with appropriate style and content for the identified
audience.

The information booklet should be appropriately detailed,
covering all the main topics stated in the task, demonstrating
analysis, assessment and evaluation. The booklet should be
well presented, clearly demonstrating an understanding of how
the organisation can improve employee effectiveness to
respond to business opportunities. A range of examples should
be used to illustrate innovation, creativity and effective team
working.

3 2.3 The information pack must provide accurate and detailed
information on the culture and structure of the stated
organisation that has been selected. There must be a clear
evaluation of how both impact on its effectiveness. The pack
may include a diagram of the organisation structure.

4 4.1/4.2/4.3 An informative and well presented report should demonstrate
learners’ understanding of organisational decision making. A
range of decision making approaches should be considered.

Evidence should demonstrate an understanding of different
approaches to risk management, including appropriate
planning.

Learners’ should then apply their understanding of decision
making when evaluating the effectiveness of organisational
decisions on their stated, chosen organisation. The evaluation
should include clear judgements on the level of effectiveness
and the reasons why.

• Coversheet (p.1)
• 4 Organisational Behaviour (p.2-4)

Name-ID-OB-Sample Assignment1 A4

Unit 7.1

Organisational Behaviour

Activity 4 – Report

Approaches, Risk &Uncertainty In

Decision Making

Student Name: xxx

Student No: 12345

Date: xxx

`

– 1 –

Activity 4

4.1 DIIFFERENT APPROACHES TO ORGANISATIONAL DECISION MAKING.

Making a decision may be defined as the process of making a choice from many available choices or alternatives

(Bell and Reedy, 1999). From the available alternatives we need to identify best choice that fits our desire, goals,

objectives and values (Harris, 2012). In normal practice it is assumed that decision making is done only by the

senior management which is untrue. Making sound decisions is vital at every level of the organization (Drucker and

Collins, 2008). Decision are made in different environments and in different styles.

Decisions Making Environments

Source: Rowe et al., 1985

Certainty
• All information is available to the decision maker.

Risk

• Multiple events could take place and adequate information is available but
future outcomes associated with each alternative are subjected to change.

Uncertainty

• The objectives that are to be achieved are known but information about
alternatives and future events are incomplete.

Ambiguity

• The objectives to be achieved is unclear alternatives are undefinable and
information about the outcomes are unavailable.

– 2 –

Decision Making Styles

Source: Rowe et al., 1985

Several factors influence the decision making in organizations. As there is an uncertainty in decision

outcomes in order to arrive to the most appropriate decision it is suitable to look into decision making

approaches (Burton et al., 1986). There are different types of decision making process and they are,

(i) The Garbage Can Model, (Cohen et al., 1972)

It is where an organizations historical decisions and solutions are dumped in to an imaginary can. These

solutions and decisions would have been proposed even though problems did not exist. When a problem

arises the organization can reach into the can and find a solution (Cohen et al,. 1972).

(ii) The Carnegie Model

It is a very suitable model in the initial of identifying a problem. When decisions are made the

assumptions are more realistic. Limited information is available when identifying alternative solutions

with limited information processing capacity. Choosing a solution is a result of bargaining, compromising

and accommodation between coalitions (Cyert and Simon, 1983).

(iii) The Management Science Approach

An excellent model when variables are measurable and identifiable. No human elements are involved as

statistics are used to identify the variables. Useful for complicated situations. A successful model for

military problems (Taylor, 1974).

Directive Style – Low tolerance for ambiguity and thinks rationally. It is
logical and efficient while decisions can be made fast.

Analytic Style – High tolerance for ambiguity thinks rationally while decisions
are made carefully and adaptable for situation changes.

Conceptual Style – Develop many alternatives and abroad look out while
focusing on the long run and is able to find creative solutions.

Behavioral Style – Open to suggestions from colleagues while takes decisions
on consensus and work well with others.

– 3 –

(iv) Incremental Decision Making Approach.

This approach differentiates current state and proposed outcome. It focuses on structured sequence

activities discovery to finding solutions. Great decisions will be a collection of small choices although it has

limitations being too narrow and specified. But it is considered as the model to have the least chances of

making mistakes (Lindblom, 1968).

Normative, Prescriptive and Descriptive Approaches

Normative approach to decision emerges from rationale of selecting a decision among other alternatives

based on judgments (Susan et al. 2010). This approach emerges with scientific reasoning and caters all

the uncertainties and risks associated. Step by step and a logical process usually result in decision of

higher quality. However it might only be favorable for long term planning since a lot of time is required to

gather and deliberate the information. It assumes the accuracy of available data on which the decision is

based. Also it ignores humanity factor

Prescriptive approach defines how decisions should be made while Descriptive explains how they have

been made in real life situation. Prescriptive approach is based on normative hypothesis and descriptive

observation (Kickert, 1978). However, Prescriptive is a means to prescribe in more practical manner.

Descriptive involves human behavior and psychological flair (Dillon, 2015)

NBAD decision for restructuring also seemed to have adopted a more normative approach. This is evident

from the measure they took to fire hundreds of employees while revising their strategy. It was being

highlighted in the media creating an adverse image of the organisation to focus on their financial growth

only. It impacted NBAD’s effectiveness towards its internal stakeholder in sabotaging their image as

employer.

Simon’s Bounded Rationality Model

Above discussion of NBAD’s case could be an impact of bounded rationality. According to this theory

decisions made by managers cannot be totally rational. This is because of the factors that:

– 4 –

 It is almost impossible to cater all the possibilities since not all available information and

knowledge cannot precisely be available at the time of making decision

 It is usually difficult to estimate all the reactions and future consequences of a decision

 While making decision managers should be aware of all available alternatives for complete

rationality. However, in practical only few alternatives are known which limits the full rational

decision making capability (Businessmate, 2011).

The five year strategic plan announced by NBAD aimed at the growth of commercial, retail wealth and

wholesale business along with a novel mission of ‘core to our chosen customers’(UAE Interact, 2014).

Highlighting growth and care of external stakeholders (customers) NBAD did not put forward a word for

their employees (internal stakeholders) to be reflected in their planning while making strategic decision

(Khaleej Times, 2014). The planners might have overlooked the reactions and alternatives according to

Simon’s approach of bounded rationality

4.2 MANAGEMENT APPROACHES TO RISK & UNCERTAINTY IN DECISION MAKING.

Risk can be defined as the lack of knowledge where the probabilities of a possible consequence are

known while uncertainty can be defined when these probabilities are not known (Hardaker and Hardaker,

2004). In other words we could state risk has uncertain consequences and uncertainty has imperfect

knowledge. Trust plays vital role in organizational decision making as it eliminates risk to some degree.

Decision Making Conditions

– 5 –

4.3 EFFECTIVENESS OF ORGANIZATIONAL DECISION IN NBAD.

Decision making is the base of every business activity and management. Enhanced management decision

making which enables problem solving is an indication of an organizations sustainability and achievement

of goals.

The 6 C’s in decision making

Construct –
Clear path and
precise goals.

Compile –
Requirements
that has to be

met.

Collect –
Information on
alternative that

meet the
requirements.

Compare –
Alternatives that

are more
effective.

Consider –
Possibilities if

something goes
wrong.

Commit –
When decisions
are made not to

revert.

– 6 –

The decisions taken by National Bank of Abu Dhabi (NBAD) have been very effective when considering its

growth. The key decision on achieving its goals are mentioned as follows,

Source: NBAD (2013)
Customers – NBAD modified the Terms and Conditions consumer banking and converted the contents

into simple language to help the customers to understand the mutual responsibilities towards one

another. The Bank conducts various training programs for staff such as Anti Money Laundering, Cross

border training in order to develop staff awareness regarding new monitory regulations.

Competitors – In order in encourage business opportunities for women in UAE NBAD organized the

“Fusati Event” which offers women entrepreneurs the awareness into wealth management across asset

classes and using offshore trust to preserve wealth.

NBAD introduced “Ratibi” a salary payroll solution for employees in other companies to receive their

salaries without having a Bank Account.

People – Two Hundred Fifty Three NBAD staff competed the “Al Manara Program” which is sponsored and

conducted at the NBAD Academy which strengths the staff development.

As part of Banks Corporate Social Responsibility (CSR) an Employees Wellness Day was conducted offering

all staff with medical, health screening and counseling to ensure a comfortable and healthy working

atmosphere.

Our Vision

• To be
recognized as
the World’s
best Arab
Bank.

Our Customers

• Providing
outstanding
product
services and
capabilities to
our
customers.

Our
Competitors

• Better and
more
distinctive
than our
national &
international
competitors.

Our People

• The ability to
attract, retain
& develop the
very best
people.

Our
competence

• Define the type
& level of
competency
needed by
people in the
short, medium
& long term.

– 7 –

Competence – In year 2012, the Bank introduced “Wealth Builder Plan” a pension scheme for expatriates

in order to help them increase their services. Over 200 students from top UAE universities benefit from

the NBAD’s sponsorships and internship programs (NBAD, 2013)

Name-ID-OB-Sample Assignment1 A1

Unit 7.1

Organisational Behaviour

Activity 1 – Report

Effective Leadership Behavior &

Leadership Practice

Student Name: Xxx

Student No: 12345

Date: Xx

`

i

Course Title: Organisational Behaviour

Assignment No. 1

ATHE Level 7 Diploma in Strategic Management

Student Name: Xxx Xxx

ii

TABLE OF CONTENTS

Activity 1

Effective Leadership Behavior & Leadership Practice ….…………. 01

1.1 Introduction ……………………………………………………………………………… 01

1.1 Evaluation Of Leadership Theories ………………………………………………… 01

1.2 Evaluation Of The Impact Of Managerial Styles
On Organizational Effectiveness …………. 03

1.3 Analyzing How Motivational Theory Can Inform
Employee Motivation ……………………………………….. 06

1.4 Analyzing How Theories Relating Towork Relationships
And Interaction ………….. 08

Activity 2

Organizational Structures and Culture impact on the effectiveness
of the Organization ………………………………………………………………………………. 11

(Presentation Attached Separately)

Activity 3

An Analysis Of The Culture, Structure Of A Chosen
Organization And Its Effectiveness ……………………………………………………………….. 12

3.1 Introduction …………………………………………………………………………………. 12

3.2 Structure Of NBAD ……………………………………………………………………….. 12

3.3 Culture Of NBAD …………………………………………………………………………………. 13

3.4 An Analysis Of The Culture & Structures Impact On NBAD ……………. 14

iii

Activity 4

Approaches, Risk & Uncertainty In Decision Making ………………….. 15

4.1 Diifferent Approaches To Organisational Decision Making ……..……………. 15

4.2 Management Approaches To Risk & Uncertainty In
Decision Making ……………..………………… 17

4.3 Effectiveness Of Organizational Decision In NBAD ……………………………….. 18

References ………………………………………………………………..………………….………. 19

List Of Exhibits ……………………………………….………………………………………… iv

iv

List Of Exhibits ( Tables / Figures )

Exhibits No Page No

(i) The Relationship Among Leadership Variables 02

(ii) Different Management Styles 04

(iii)The features and the impacts of Management Style 04

(iv) Hieararchy Of Needs 06

(v)Motivation Theories 07

(vi) Powers in Organizations 08

(v) Power and Dependences 09

(vi) NBAD Organizational Structure 13

(vii) Decisions Making Environments 15

(viii)Decision Making Styles 16

(ix)Decision Making Conditions 17

– 1 –

Activity 1

EFFECTIVE LEADERSHIP BEHAVIOUR & LEADERSHIP PRACTICE.

1 INTRODUCTION

Moral leaders are made not born. To be an effective leader you should have the desire and determination.

It is a process of never ending education, training, self-study and experience that leaders are mold of(Jago,

1982).

An organizations performance depends on its leadership. Therefore the leadership of any organization is

very critical. When a good leadership is in place in a Company, it could be felt throughout the entire

organization (Anderson, 2013).A solid leadership will be the key for a Company to be a market leader

(Schein, 1985).

Leadership is where a leader influences the employees to achieve the aims, goals and the objectives of the

organization. These are achieved by leaders by applying leadership attributes such as ethics, character,

skills, knowledge, values and beliefs (Bennis, 1989).

To understand leadership there are countless research studies carried out by various researchers the

outcome of these studies shows some research are exceptionally useful, some have contradictory results

and some are unclear (Bass and Bass, 2008).

It is not the CEO, it’s the Leadership Strategy that matter. Long term business performance comes from

leadership culture and continuous development of leadership at all levels which will ultimately thrive

business (Bersin, 2012).

1.1 EVALUATION OF LEADERSHIP THEORIES

Leadership theories have been the result of numerous studies. It is an assumption about distinguishing

characteristics of a specific kind of leader. Most of the theories falls in to one or more of the following tree

– 2 –

perspectives, (i) Leadership as a relationship or process (ii) Leadership as a combination of personal

characteristics or traits (iii) Leadership skills or certain behaviors (Wolinski, 2010).

Exhibit (i) The relationship among Leadership Variables

Source: Author (2015)

The following Leadership Theories will enable to define a leaders characteristics.

Leader Traits

and Skills

Leader

Behaviors

Follower

Attitudes and

Behaviors

Performance

Outcomes
Influence

Processes

Situational

Factors

– 3 –

Trait Theory – What type of a Person Makes a Good Leader?

Trait leadership theory suggest that peoples are either born or are made with certain
qualities which will make them success leaders. Such qualities as intelligence, creativity,
sociability, self-confidence and courage are considered to be linked to great leaders
(Matthews et al., 2003).

Advantages

 Trait Theory totally depends on hard data or a statistical analysis.

 Provides an understanding and a complete knowledge of the leader and
elements of leadership.

 The theory provides a yardstick for identifying leaders.

Disadvantages

 Some behaviors should not always be inherited but could acquire through
training.

 Environmental factors are not taken into consideration as it could differ from
situation to situation.

 The qualities needed to achieve leadership will differ from the requirements
needed to sustain leadership.

Advantages

* Trait Theory totally depends on hard data or on statistical analysis.

* Provides an understanding and a complete knowledge of the leader and elements of
leadership.

* The theory provides a yardstick for identifying leaders.

Disadvantages

* Some behaviors should not always be inherited but could acquire through training.

* Environmental factors are not taken into consideration as it could differ from situation
to situation.

* The qualities needed to achieve leadership will differ from the requirements to sustain

– 4 –

Behavioral Theory – What does a good leader do?

This theory is based upon the belief that great leaders are made not born. It focuses on
the actions of the leader which will define the leadership ability.

The famous behavioral theory was originated by the University of Michigan and the Ohio
State University. It identified two key behavioral categories of “orientation towards task
and towards people (Jaimovich and Rebelo, 2006).

Advantages

 Behavioral Theory allows managers to find the right mix between different styles

of leadership further enabling them to act depending on the productivity and

concerns of people.

 Gives simulation to the value of leadership styles with a prominence on teamwork and

importance for people.

 This theory enable Managers to ascertain the effects of their behavioral style on

achievement of organizational goals and relationship with colleagues.

Disadvantages

 Although Behavioral theory recommends leadership styles a precise leadership style will

not be the most suitable in all circumstances.

 The difficulty of segregating which leadership style was more effective in enabling one

team to work well than the other team.

 The initial leadership theory that was to be implemented could be far more ineffective

rather than to the styles that leaders develop according to the environment and

according to the people they work with.

– 5 –

Contingency Theory – How does the situation Influence Good leadership?

The theory states a leader’s effectiveness depends how well the leader’s style matches a
precise situation or setting. A method used for handling a situation will not be applicable
in a different situation. In other words a leader who is successful in one situation might
fail when the situation changes. Further a leader could perform at the maximum level in a
certain situation but minimal performance when taken out of their element (Yukl and
Waxley, 1985).

Advantages

 Enables leaders to know the exact task they are responsible for without any

misperception.

 In Contingency theory leaders are not categorized or discriminated according to their

social or ethnic backgrounds, work experience or gender.

 The theory does not confine that all leaders should be effective in all situations further it

enables to develop close relationship between workers and leaders.

Disadvantages

 Unable to rectify and generate a solution if a mismatch occurs between workplace

situation and the leader.

 Not able to clarify why certain leadership styles are more appropriate in some situations

and inappropriate in other instances.

 Doubts are raised regarding the Least Preferred co-worker (LPC) scale as it do not relate

well with other standard leadership procedures.

– 6 –

Great Man Theory – Is great leaders made or born?

The assumption in the Great Man Theory is that great leaders are born and not made.
This theory emphasizes leaders who are destined by birth to become a leader and is born
with necessary characteristics such as confidence, intelligence, social skill and charisma.
They are destined to rise to leadership when needed (Carlyle et al., 1993).

Advantages

 The leadership qualities that a leader is born with is necessary and sufficient to

exercise influence over people and become successful.

 Anyone cannot desire to become a leader and conquer greatness.

 One individual could inspire and effect a change single handed.

Disadvantages

 Mythical belief of leaders becoming successful and great leaders independent of

their environmental situations.

 No scientific evidence.

 Leadership is limited to certain community.

– 7 –

Management Theory – How rewarding a Leader could be?

This theory is known as Transactional Theory as well. It is characterized as a transaction
made between the leader and the follower. The theory assumes that employees are
motivated strictly by Reward or Reprimands. It strictly focuses on task, provides clear
direction and administers productivity in detail. When employees perform they are
rewarded and when failed they are penalized (Bass et al., 1990).

Advantages

 Powerful Motivator as tangible incentives and rewards such as cash is a proven

motivator.

 Easy to follow and clear structure – This approach leaves minimum confusion or

doubt among managers and subordinates as it is clear and straightforward if a

task is completed you are entitled for bonus, overtime or health benefits.

 Fast results and short term goals – An effective method for solving business issue

in short term where by offering extra remuneration if targets are achieved.

Disadvantages

 Negative on creativity and thinking skills since goals and objectives goals cannot

be defined only with set of procedures.

 This is not perfect since rewards and punishments will motivate only people on

the base level and will not motivate the higher level people.

 Flexibility roles – When required sometimes according to the demand leaders

have to change from one role to another therefore transactional leaders will be

limited in their effectiveness.

– 8 –

Relationship Theory – How influencial is a Leader?

Relationship theory is known as Transformational Theory as well. This process is where
a leader interact with subordinates and creates a solid relationship which will result a
high level of personal integrity leading to an increase in motivation and morality. The
leader focuses on group performance but will insist each employee to perform to the
maximum potential. This style of leaders have high moral and ethical standards (Bass
and Bass, 2008).

Advantages

 Transformational leaders are frequently involved in the development of
employees and the growth of the company. As the organization expands the
leaders are more involved and keep a close contact with the employees.

 The leaders reach out to employees and bring out the best in them and further
helps them in developing career growth which enables to create a strong bond
between the leader and the employees thus creating a high employee retention
mechanism.

 Transformational leaders crafts an enthusiastic work atmosphere and inspire

staff to be more productive and work towards accomplishing organizational

goals.

Disadvantages

 Depends on an individual’s ability and charisma to inspire the workforce and if

the leader acts unethically or dishonestly the entire operation and the

organization will suffer.

 Transformational leadership is mainly established on Qualitative data.

 According to Transformational theory a leaders inspiration is the key for success

however if unreasonable deadlines, unacceptable working conditions or long

working hours might cause employees not to inspire to work.

– 9 –

1.2 EVALUATION OF THE IMPACT OF MANAGERIAL STYLES ON ORGANISATIONAL
EFFECTIVENESS.

Managerial styles are one of the important features that have an impact on organizational effectiveness.
The effectiveness is significantly determined by the way employees work and by the way work is organized.
Further how employees cooperate with each other, with the community, with the leadership and the level
of commitment to the organization mostly depends on the style of the management (Davidmann, 1981).
Management styles influence the way the Company make decisions on strategy, formulating, branding,
marketing and dealing with stake holders (Khandwalla, 2008).

Exhibit (ii) Different management styles

Source: Author (2015)

Exhibit (iii) Thefeatures and the impacts of Management Style

Management
Styles

Autocratic

Democratic

Laissez-
fairev

Paternalistic

– 10 –

Management
Style

Features Impact

Autocratic

Or

Authoritarian

* Centralizes power and decision
making to himself.

* Gives orders, assigns tasks, and
duties without communicating
with employees.

* Do not invest any trust in the
employees.

* Leader takes full authority and
assumes full responsibility.

* This method suits to Companies where quick
decisions have to be made and controlling large
number of employees.

* Employees will depend upon leaders and there
will be lack of creativity therefore supervision will
be needed.

* Staff motivation will decrease and staff turnover
will increase.

* Misuse of authority will lead to strikes and
disputes.

Democratic

Or

Participative

* Everyone is involved in decision
making process therefore
everything is agreed on majority.

* Encourages participation in
decision making and shares
information.

* Leads the employees mainly
through persuasion and example
rather than force and fear.

* Improves job satisfaction and productivity.

* Increases cooperation with the management.

* High employee turnover.

* This process slows down decision making as the
opinion of employees are considered. Therefore
managers will not be able to implement the best
decision.

Laissez-faire

or

Free-rein

* Avoids power and Authority and
delegates much authority to
employees.

* The leader acts as an umpire and
the employees manage their own
area of business.

* No direction or authority is
exercised over the employees.

* This brings out the best in highly professional
and creative groups of employees.

* Leads to lack of staff focus and sense of
direction which in turn leads to dissatisfaction and
poor Company image.

* Less productive.

Paternalistic

* Paternalism means “Papa knows
best” which leads to a fatherly or
paternal leadership.

* When making decisions focuses
on social and recreational needs of
employees.

* This leadership style was successful in Japan and
best suited for family (small) business.

* Effective in keeping the employee moral high.

* Employees will work harder out of gratitude.

– 11 –

* Information flows from top to
bottom.

* The leader protects and guides
his employees as members of the
family.

Source:Beehr (1987)& Brookfield (2000)

1.3 ANALYZING HOW MOTIVATIONAL THEORY CAN INFORM EMPLOYEE MOTIVATION.

“Motivation” is and continues to be a topic that draws interest on employers and researchers. Many
philosophers base their knowledge on motivation to a mental satisfaction. The cause for employees to be
motivated or demotivated have been researched comprehensively over many decades thus resulting a
wealth of motivation theories.

Motivation is described as the will to achieve its goals (Bedeian, 1993), further it is defined as the
psychological process that gives behavior purpose and direction (Kreitner, 1980). It is also defined as the
inner force that drives individuals to accomplish organizational and personal goals and to satisfy an
unsatisfied need (Higgins, 1991).

The most focused Motivation theory is Maslow’s ‘Hierarchy Of Needs’.

Exhibit (iv) Hieararchy Of Needs

– 12 –

Source: Maslows (1943)

Exhibit (v) Motivation Theories

Content Theory

Focus on Human needs and how people with
different needs react to different work situations
(Job Satisfaction and behavior).

Process Theory

Emphasis on individual’s reactions and making
choices based on rewards, preferences and
accomplishments.

Hierarchy Needs Theory (Abraham Maslow, 1943) –
Maslow suggested that motivation is a result of a
person trying to fulfill five basic needs. There needs
are has a pyramid hierarchy that will satisfy from
bottom to top. When lower needs are fulfilled a
higher need is seek out. Once the lower needs are
fulfilled it will no longer serve as a source of
motivation.Further Maslow stated that people are
motivated both Intrinsically and Extrinsically. The
five main needs are,

Equity Theory (J Stacy Adam, 1963) –The theory
suggests that if an individual perceives that a reward
received is equitable when compared to the others
received in similar position then the individual is
satisfied. On the other hand when treated unfairly in
comparison to others they try to eliminate the
unjust and try to restore a perceived sense of equity
to the situation. Further it is stated that employees
pursue to maintain equity between what they bring
in to the job and the benefits they receive from it
against the perceived inputs and outcomes of other

– 13 –

[i]. Physiological (Air, water)

[ii] Safety (Security, Health)

[iii] Social / Belonging (Family, Friends)

[iv] Esteem (Achievement, Respect)

[v] Self-actualization (Potential, Morality)

colleagues.

Two Factor Model Theory(Frederick Herzberg,
1959)-Theory implies that there are certain factors
in workplace that cause Job Satisfaction and certain
elements that cause dissatisfaction. The two are,

(i) Hygiene Factor – Sources of job Dissatisfaction
(Company polices, Supervision).

(ii) Motivator Factor – Sources of Job satisfaction
and motivation (Achievement, Recognition).

Expectancy Theory (Victor H. Vroom, 1964)–The
theory states that the motivation to behave in a
specific way is determined by an employee’s
expectation that behavior will lead to a certain
outcome multiplied by the valence or preference
that the employee has for that outcome. If
Motivation (M), Expectancy (E), Instrumentality (I)
and Valence (V) are presented in an equation,

M = E x I x V

If either variable E,I or V is low the motivation will be
low.

ERG Theory (Clayton Alderfer, 1969) – It is a
simplification of Maslow’s theory by categorizing
hierarchy of needs into three categories.

[i] Existence Needs – It is a merger of Physiological
and Safety Needs.

[ii] Relatedness Needs – It is as Social or Belonging
needs.

[iii] Growth Needs – It is a merger of Esteem and
self-actualization.

Goal Setting Theory(Edwin Locke, 1968)–The theory
asserts that motivation and performance will be high
if employees are set specific goals and managed
well.
The key principles of Goal setting are,

[i]Setting specific goals.

[ii] Clarifying goal priorities.

[iii] Setting challenging goals

[iv] Building goal commitment and acceptance.

[v] Rewarding goal accomplishments.

[vi] Providing feedback on goal accomplishments.

1.4 ANALYZING HOW THEORIES RELATE TO WORK RELATIONSHIPS AND INTERACTION.

Organizations consist of groups of people who work together for the achievement of common goals.
Therefore building relationships in work place is vital in order to successfully perform your job. Power could
be increased through Social Capital, Referent Power, Visibility and Centrality Contingencies (Lucas, n.d.).

– 14 –

Exhibit (vi) Powers in Organizations

Source: Author, 2015
Power plays a major role in relationships therefore power is the capacity of a person, organization or a
team to influence others (Demers, 2015).

Exhibit (vii) Power and Dependences

Source: Author, 2015

We are destined as humans to live together in society and to depend one another as it is impossible to
survive (Black, 2004).

There are many strategies that could be adapted to develop characteristics at work place. Mentioned
below are few characteristics,

– 15 –

Consistency – The fastest way to ruin a reputation is inconsistency. If work is delivered
on time consistently, eventually a leader will be considered reliable (Birman and Glade,
1995).

Respect –When people respect each others’ opinion it helps in problem solving.
Respectful interaction is considered honest and tactful (Birman and Glade, 1995)..

Rather than Argument Emphasis on Action –Performing well and getting good results
consistently verifies the ability to walk the walk. To get to the next step the ideas should
be shown through your actions without arguing the structure will work in theory. A best
leader will always talk through actions (Goodman, 2013).

Good conversation – Influence is a two way street. The more you believe and
communicate with your colleagues it will be possible to incorporate their ideas to your
vision. Respect and acknowledge everyone’s opinions and let your colleagues know they
are valued (Gerson and Gerson,2007).

Building trust with Co-workers & loyalty – The way to success is trusting your
colleagues where relationships seek input from one another and allow individuals to do
their jobs without unnecessary supervision. Trust includes fundamentals such as
accountability, honesty and support. The ability to be loyal at workplace is highly prized
(Goodman, 2013).

Name-ID-OB-Sample Assignment1 A2

Unit 7.1

Organisational Behaviour

Activity 2
Section ii

Information Booklet

Student Name: Xxx

Student No: 12345

Date: xx

`

– 1 –

Activity 2

2.3 INFORMATION BOOKLET

2.3.1 Supporting Innovation & Creativity

With recession affecting global markets Creativity and Innovation could serve as the key for growth and for

some organizations it is a precondition for survival. Hence, for an organization to perform successfully

creativity and innovation are vital elements.

Innovation is the trigger that changes performing companies to multinational companies. It is where

companies open up for new ideas and is willing to take risks.

Creativity is the dynamism behind innovation and invention. Creativity is turning imaginative new ideas into

reality; going beyond the lines such as knowledge, practices, beliefs and technology in order to find new

paths for better performance. (Dauw and Fredian, 1970)

Types of Innovations

Source: R. Dey (2012)

• Services Innovation- Submission of new services and delivery of those to
customers.

•

 Communication & Brand Innovation- Quality methods of Organizational

representation.

 Product Innovation- Providing latest and Quality products to customers.

 Process Innovation- Time & cost reduction ways and means.

 Organizational Innovation- Improved methods of handling employees.

 Business Innovation- Enhancing the methods the organization delivers,

extracts and create value from customers.

– 2 –

Types of Creativity

Source: R. Dey (2012)

To facilitate innovation and creativity a number of initiatives can be taken up by a company depending upon

its Cultural and Structure type. For instance (Martin, 2015):

 Diversity – is the most commonly used tool to boost innovation since it brings different minds under

a roof that helps stimulating different ideas. This tool might not work with Clan culture. It can work

with adhocracy.

 Taking estimated risks – People can be encouraged to take estimated risks however with network

structure it might be difficult to control. It can suit to divisional structure. Similarly adhocracy culture

can support risky initiatives but hierarchical culture might not favor and limit such initiative to

authorized people only.

 Flat Structure – with few hierarchies it is easier to stimulate out-of-box thinking. This technique might

be suitable for Clan culture or Market culture and for Network structure (given the managerial style is

compatible).

Motivation- It is a person’s aspiration to do something that is driven out of passion,
commitment and interest which be the initiative for creativeness. Employees could be
motivated when created the right environment that encourages to perform at their creative
best.

Expertise – This includes the knowledge which is acquired through practical experience,
interaction with professionals or through education and is performed in the broad domain of
work.

Creative thinking skills – The ability to put existing ideas to action and to find solutions to
problems. This could be acquired through conscious training and practice further it depends on the
personality as well as the thinking and working methods.

– 3 –

With the above discussion it is clear that any tool or technique can be used to encourage innovation or

creativity within an organisation, but it is important to be justified with suitable culture and structure type.

2.3.2 Importance of Learning in Organizations

Organizational learning allows groups to know exactly what is relevant to their specific tasks. Further this

broadens the organizations to keep themselves updated and to maintain flexibility and adaptability in an

eternally changing world.

Continuous learning at organizational level have been gaining an emphasis since last decade. Senge’s (2006)

learning organization is the origin of the concept that an individual learning is insufficient unless it is

embedded and shared across all levels of organization. This includes development of a shared learning

culture as a commitment or vision from management. The organizational learning can feature following

benefits:

Source: Garvin and Edmondson (2008)

People
Development

•Flexible workforce * High motivation

•Creativity increases * Social Interaction

•ImprovesFlexible workforce * High motivation

•Creativity increases

•Social Interaction improves

Increase in
performance

•High independency

• Sharing knowledge

Beneficial for
Organizations

•Creativity & innovation

•Improvement in customer relationships

•Improvement in communication

– 4 –

Knowledge Management

Knowledge management also plays key role in organizational learning. Two types of knowledge include:

 Explicit knowledge – which is conveniently available, can be recorded or written down

 Tacit Knowledge – i.e. difficult to capture and record

Organizations are finding new ways using technology and information management to acquire tacit

knowledge (Thomson & Andrew, 2015), though it is only possible to an extent.

Managing knowledge effectively can only be possible within compatible culture. For instance: Clan culture

does not allow risk taking discretions. This inhibits innovation which is essential for learning. Adhocracy

supports innovation and is susceptible to problems. However, it is only possible to learn lesson from that

problem when the culture is open enough to manage and capture the knowledge acquired from experience.

This knowledge if recorded well can serve as experiential knowledge / tacit knowledge for all future decisions

across the organisation

2.3.3 Effective Team Work

Teamwork within the organization enhance productivity of employees while attributes to the growth of the

organization. ‘Synergy’ is the most common buzzword to define effectiveness of teamwork in short which

means that the output by a team is larger than the output of the individual team members. Teamwork helps

organizations to increase their efficiency followed by a series of factors including customer satisfaction,

employee motivation, learning, development, innovation and growth.

A well directed / led team caters following features

 Diversity

 Innovative ideas

 Greater sense of achievement

 Group dynamics are better in a team than a group itself

 Improved communication

– 5 –

 Higher levels of productivity

 Increased learning

However, there are certain dark sides that might impact effectives of team:

 Levels of participation might vary

 Not all effective employees are good team players

 Inhibits individual creativity in certain situations

 Conflicts have higher possibility to occur as counterpart of diversity

 Individual credits are less likely to be recognized than efforts of the team on the whole

Features of effective team work

Source: West (2012)

2.3.4 Effectiveness of Management Change

According to Sharma (2007) change in an organisation could be a result from various factors such as:

 External Environment factors like political, legal, social, economical, technology and ecological

 Change in strategic approach such as vision or mission

 Internal needs and task requirements

 Restructuring or reorganization as a result of acquisition, merger, global expansion or downsizing

Change is unavoidable and companies are compelled to adapt in order to survive. However, change

management is not easy and is not always welcomed by the stakeholder. Also risk is associated with the

changing approach. This is because of the certain extent of uncertainty that whether the change would take

 To have a clear understanding of the objective & aims.

 Trust in leadership.

 To have a clear understanding of each individuals role.

 Review of performance with KPIs and Scorecards.

 Active participation by all members.

 Effective communication.

 Learning opportunities for everyone.

 Improved employee relations.

– 6 –

place effectively and smoothly or might lead to losses for the company. Also changes are made for benefit of

the company however the results could be capricious.

Therefore, it should be a very structured approach altering an organization’s culture, technology,

environment or people from a current state to a desired future state. Attributes of an effective change

management might include:

Source: Kondalkar (2009)

Overcoming
resistance

•Strongly communicating about the change in advance.

• Explaining the need of change and justifying.

• Supporting the changing working atmosphere with training.

Engagement of
employees

•Clarification of roles and responsibilities.

• Understanding each employees motivational factors.

• Focusing on team approach.

Implementation
of change

• Defining the management strategy.

• Execution of new management policies.

• Obtaining a feedback from employees.

Communication

• Must be a two way path in order for a successful change in the organization.

Name-ID-OB-Sample Assignment1 A3

Unit 7.1

Organisational Behaviour

Activity 3– Information Pack

An Analysis Of The Culture,

Structure Of

National Bank Of Abu Dhabi.

Student Name: Xxx

Student No: 12345

Date: Xx

`

– 1 –

Activity 3

3.1 INTRODUCTION

National Bank Of Abu Dhabi (NBAD) was incorporated in 1968 to serve as a

Banker to the United Arab Emirates (UAE). NBAD is the 2
nd

largest Bank in

UAE terms of Assets with a network over 125 branches and cash officers

across the country.

Its growing global network consists of 60 branches and officers in 18

countries covering from Oman and Bahrain in GCC, Cairo (Egypt) and

Khartoum (Sudan) in Africa, London (UK) and Paris (France) in Europe to

Washington D C in USA and making the largest global network bank among

the UAE Banks.

– 2 –

3.2 STRUCTURE OF NBAD

NBAD follows a Corporate Organizational and a Functional Structure. As Licensed Bank in UAE NBAD is

committed and complying with good corporate governance practices. With this functional structure the

Bank is able to use specialized teams in different divisions in order to achieve the Banks goals and

objectives. The Board monitors delegation and devolution of power through management reporting

frame work, audit, compliance, legal department, independent reviews and through external advisors.

Further engages in frequent review of its strategic and operational environment in order to maintain a

high scope of cooperate governance (NBAD, 2014).

NBAD Organizational Structure

Board of
Directors

5
Committees

Chairman

3-5
Members

Executive Management for
Operational

Committee

Chairman
Deputy

Chairman

9 Board
Members

– 3 –

Source: NBAD, 2013

Retail &

Commercial

Board of Directors

CEO

Legal Audit

CFO

HR
Risk

Mgmt.
Corp &

Investment.

Gulf &

Intl

COO
Deputy

CEO

Compliances

Global

Banking
Global

Wealth

Global

Markets
Domestic

Banking

– 4 –

3.3 CULTURE OF NBAD

The Bank has a mixed culture with a strong leadership. The culture of NBAD is mainly driven by the
following,

 Complying with regulatory obligations.

 Appropriately allocating and monitoring power and accountability to management.

 Selection of management risk and strategies

 The Boards responsibility to direct Banks aims and objectives.

 Satisfying interest of stake holders.

 Maintaining an extensive internal control structure suitable for a financial institution.

 Disclosure of regulatory requirements through Annual Reports, Sustainability Reports (NBAD,

2013)

3.4 AN ANALYSIS OF THE CULTURE & STRUCTURES IMPACT ON NBAD

The cultural components discussed above show that NBAD culture is more of hierarchical type with

certain focus on competing. With such culture, NBAD might exhibit less emphasis on creativity to

encourage adhocracy culture. However, innovation in terms of technology cannot be anyway ignored by

NBAD to ensure their market survival. The current structure is more of Divisional Geographic type as

reflected from the announced strategy based on geographic pillars along with the expansion to open bank

franchises internationally across five rapidly growing economies (UAE Interact, 2013).

The prestigious Global Finance Magazine has named NBAD as one of the

World’s 50 safest Banks since 2009 (NBAD, 2013).

A Khaleej Times article (Haider, 2013) couple of years back highlighted the

layoff of a hundred of employees from the safest bank; as a result of revised

strategy and reorganisation to expand in China, Southeast Asia and Mena.

Communicating the need for change by a NBAD spokesperson was a good

– 5 –

measure; else the media would have posed the layoff against the NBAD. Since a functional structure is

usually decentralized, the duplication of resources is possible. NBAD pronounced the straight elimination

of duplicated roles without justifying the root cause and possible outcomes; this shows the lack of clan

culture with no space for disagreement from other stakeholders.

With continues implementation of high standard corporate governance practices coupled with effective

regulations and supervision will increase disclosure and transparency which will lead to building investor

confidence which is a positive impact for the Bank. Introduction of Target Operating Model (TOM) NBAD

wishes to thrive sustainable profit growth by being efficient, customer driven and profit focused. The

commitment of NBAD on Corporate Governance practices was evident when the Bank won the

“Hawkamah Bank Corporate Governance” award in year 2013. The launch of the NBAD academy which

delivers a range programmes aligned to business with internationally recognized education academies

(NBAD, 2013).

Name-ID-OB-Sample Assignment2 A4

Organisational Behaviour Page 1 of 13

Name Reg. ID:12345

ACTIVITY 4

Organizational Decision Making

Organisational Behaviour Page 2 of 13

Name Reg. ID:12345

Table of Contents

SUMMARY 4

INTRODUCTION 5

4.1 APPROACHES TO DECISION MAKING 5

Normative Descriptive and Prescriptive Approaches 5

Bounded Rationality for Decision Making 5

Incremental Bargaining Method 6

ORGANISATIONAL STYLES OF DECISION MAKING 6

Autocratic decision making 6

Participatory decision making 6

Consensus based decision making 6

Democratic Decision making 6

HOW DECISIONS ARE MADE ERROR! BOOKMARK NOT DEFINED.

Rational or Analytical approach Error! Bookmark not defined.

Intuitive Decision Making Approach Error! Bookmark not defined.

Random, Chance, or Luck Approach Error! Bookmark not defined.

4.2 RISK AND UNCERTAINTY 6

Identification of Risk 7

Attitude towards Risk 7

Risk Management 8

Organisational Behaviour Page 3 of 13

Name Reg. ID:12345

Planning for risk management 8

4.3 EFFECTIVENESS OF ORGANIZATIONAL DECISIONS 9

PROCTOR AND GAMBLE 11

CONCLUSION 12

RECOMMENDATION 12

REFERENCES 13

Organisational Behaviour Page 4 of 13

Name Reg. ID:12345

Summary

This report analysis the various approaches used in an organization for making decisions. It also assesses

the various management approaches to risk and uncertainty in decision making. It also highlights the

effectiveness of organizational decisions.

Organisational Behaviour Page 5 of 13

Name Reg. ID:12345

Introduction

This report analyses various approaches used in an organization for making decisions. It also assesses the

various management approaches to risk and uncertainty in decision making. Based on these risks the

manager can consider the effects on decision making. It also highlights the effectiveness of organizational

decisions.

4.1 Approaches to Decision Making

Decision making is an important element in any organization. Great decisions help the company to

succeed and further grow while poor decisions blight the future of the organization. Different decision

making approaches generally deployed include:

Normative Descriptive and Prescriptive Approaches

According to Darwish (1998) Normative approach is more rational and logic based setting up process and

principles to take a decision. It usually emerges from analytical approach of mathematics, statistics or

economics. On Contrary Descriptive approach explains real time situations that how a particular decision

is processed by people. This approach has its roots in human psychology. Another transitivity dimension

includes Prescriptive approach which has empirical side of Descriptive and normative rational outcomes

both accommodated.

These approaches do not cover the constraints of data availability, future consequences predictability and

time factors which are discussed by other couple of models below.

Bounded Rationality for Decision Making

Herbert Simon was an economist who introduced this model which emphasizes that the decisions made

by people are aimed at maximizing the benefits and largely in their interest. These decisions are impacted

due to constraints of time and information available to an individual (Kromkowski, 2002).

Organisational Behaviour Page 6 of 13

Name Reg. ID:12345

Incremental Bargaining Method

This method as defined by Vaidya (2012) allows people to keep limited options for their attention

because of information and time availability constraints. Hence it does not require all information to be

known and all possible alternatives to be identified as compared to Bounded rationality discussed above.

Organisational Styles of Decision Making

Autocratic decision making

All the decisions are made by the top management. This style has its own benefits and drawbacks. In this

case the decision has to be followed and abide by the middle management and should be enforced

throughout the organization.

Participatory decision making

In these decisions, the whole management including the top, middle and bottom are all invited to share

their opinions. The more everyone is involve the more they get the opportunity to share their views with

each other.

Consensus based decision making

This decision is made in cross functional team. Employees from different departments are invited to share

their inputs. However this is a time consuming method and requires a lot of time. Different people from

different backgrounds are brought together for the final decision.

Democratic Decision making

The decisions are made as a result of the majority of the vote. When more employees cast their vote for

one thing over the other, the decision is taken in its favor. In this case, people come together, some may

oppose while some other favor some decisions.

4.2 Risk and Uncertainty

Cleden (2009) defined risk with certain attributes like quantifiable nature, vulnerability and conceivability.

Also if a risk exists so does its mitigation plan regardless of it being opted on not.

Organisational Behaviour Page 7 of 13

Name Reg. ID:12345

Uncertainty is different from the risk in the sense that it can neither be gauged nor its nature can be

identified until it occurs. If it could identified it would transform to risk. Hence it can be decalred that

ambiguity left over after all risks are identified is uncertainty. Risk is of tangible nature and likely to come

up due to lacking awareness or information; while uncertainty is intangible i.e. out of anything unknown.

Identification of Risk

Following figure shows requirement to identify a risk (Cleden, 2009):

Attitude towards Risk

According to HBR article, there are four types of attitudes when classifying on risk management which

might change over the period with the element of surprise from the actual world(Ingram and Thompson,

2012):

Prilimary
information

about the issue

Threat
associated with

the problem

Possible
consequences
of the threat

Levels of
danger and
vulnerability

Ways to
manage

Is the risk one
off or linked to

a risk series

Maximizers

Managers

Conservators

Pragmatists

•Who believe in lower levels of risk
existence and are oriented to self-
corrections

•Who believe that a moderate level of risk
does exist; however it can be managed
with appropriate guidance

•Who believe in high risk existance

•Who think that risk is as high as
uncertainity and environment is always
unpredictable

Organisational Behaviour Page 8 of 13

Name Reg. ID:12345

Risk Management

Managing risks in decision-making depends on identifying, quantifying, and analyzing the factors that can

affect outcomes. This allows managers to classify likely risks and their potential effect.

Risk management and its planning are important since it helps securing assets, reputation, human capital,

environment etc. Risk preventive measures are not same as risk management measures. Simple steps to

risk management might include (Reserved, 2015):

Risk Management Types

There exist a number of perspectives for classifying risks. However, their application and intensity and

threat differ from one organisation to another. For instance, Financial risk management is common to

almost all organizations while Credit risk is only to those who are dealing with credit in the market.

Similarly Project risk is not applicable for all companies while IT or Technology risk is high for those

depending more on technological developments and their integration (World Finance, 2015). Other risk

management types include legal, time, financial, strategic, operational, physical, market and liquidity.

Planning for Risk management

A proper plan needs to be laid out before managing the risk.

Identification of project risk

A number of steps need to be followed in identifying the risks such as gathering the information. This

requires different techniques are used to gather the information.

Some of these techniques are:

Organisational Behaviour Page 9 of 13

Name Reg. ID:12345

 Conduct SWOT Analysis

 Observing and assuming followed by supervision

 Brainstorm ideas to identify potential threats

 Having checklists prepared and monitored

 Conducting interviews to explore

Project Risk assessment

Steps discussed above to under ‘Risk Management’ can be followed here. Two analytical approaches can

be devised to facilitate:

Qualitative Analysis – This is a way of evaluating a risk as High, Medium or Low. The severity of the risk

may be associated with cost, availability or resources required.

Quantitative analysis – It associates a numerical value against each risk. The higher the risk, the higher

the value it gets.

ID Risks and consequences Probability Impact Priority Mitigation response

1
Weather getting colder, cars will

be covered in snow
50% 4 100

Get the parking covered to

ensure cars are not parked in

open

2 Plants will shed leaves 20% 3 20
Keep the plant pots in warmer

place

4.3 Effectiveness of organizational decisions

Successful organizations make good and fast decisions. These organizations acquire more contracts,

penetrate easily in the market easily surpass their competitors. High performing organizations make high

quality decisions. They translate their decisions more quickly and put them into action. Highly effective

organizations possess the following elements (Steers, Porter and Bigley, 1996):

Organisational Behaviour Page 10 of 13

Name Reg. ID:12345

 Leadership

 Decision making and structure

 People

 Work processes and systems

 Culture

Organizational decisions are also influenced by the type of organizational structure that is implemented in

the organization. These structures can be:

Product organization structure – This is suitable in situations or places where people work in

departments and hold specialized product knowledge. They can easily understand the customer

requirement and can provide their valuable feedback.

Functional Organization Structure – This is suitable for organizations that are divided by functional areas

such as marketing, HR, engineering departments. Here people of specific talent are grouped together and

can take a decision in a more professional and technical way.

For effective decision making, organizations should also consider the following:

 Every employee must understand his / her responsibilities and should be able to understand the

situation and be able to tackle it.

 Decision making power should be in the hands of more than one person.

 The higher the transparency and clarity be in the organization, the easier and more effective

decisions can be made.

 Make a note of expectations and needs of the employees this will help to access the ones that can

be accepted.

 Identify gaps in the organization and provide opportunities to all employees to participate and

share their input.

 Organizations should always conform to legal standards and ethics.

 Clearly document the job roles and responsibilities of the staff members, and the board members.

Organisational Behaviour Page 11 of 13

Name Reg. ID:12345

Proctor and Gamble

Proctor and Gamble is a multinational organization with a number of stores all across the globe. The

company has a large number of products under its portfolio. This organization follows an autocratic

structure for running its operations. As a result of this, all important decisions are carried out by the top

management. It has a board of governors which discuss all important topics during the meetings which

are usually planned once every two weeks.

The management considers the various risks

associated with each topic or project under

discussion. Based on the risk analysis done by

professionals, the board then decided

whether to escalate the project or decline the

project.

The organization uses technology as a tool to

escalate communication between the

management and concerned departments.

They use a number of applications to visually

interpret the data.

The goal of the organization is to compress

the time required for decision making.

Decisions are made using easy to use video,

real time data and other technological

resources. They identify what the problem is,

why it has happened and how the issue can

be resolved. The executives use data like heat maps to decide.

However, with such approach preciseness of data is essential. Further the decision is totally dependent on

technological aid. The decisions made are largely with estimated risk which requires relevant members to

be updated with developing technical tools i.e. a cost of training development and hiring innovative

Organisational Behaviour Page 12 of 13

Name Reg. ID:12345

minds is kind of fundamental understood investment. This is evident from the statement of Bob Hunt or

P&G who claimed to have thousands of employees trained for @RISK which is another decision making

tools P&G has been relying on. Precision Tree is also being rolled out after significant investment of

identifying, customizing and testing it. Another considerable thought here is that P&G and other such

groups are less likely to rely on one tool like P&G prefers framing decisions using ‘The Decision tool Suite’,

‘Precision Tree’ and ‘@Risk’ together which can result to contradictions if properly utilized (Palisade.com,

2015).

Conclusion

The report has demonstrated an understanding or organizational decision making. Different approaches

to decision making have been discussed. Various approaches to risk management have also been

discussed. The effectiveness of decisions on any organization has also been presented.

Recommendation

Organizations should consider all the perspectives of decisions. They should consider the risks involved in

any project and properly plan the solution.

Organisational Behaviour Page 13 of 13

Name Reg. ID:12345

References

 Adams, J. Stacy. Toward an Understanding of Equity. Journal of Abnormal and Social Psychology.

November 1963, 422–436.

 Cleden, D. (2009). Managing project uncertainty. Farnham, England: Gower.

 Darwish, A. (1998). Optimality in translation. Patterson Lakes, Vic.: Writescope.

 Gordon, Judith R. (2001). Organizational Behavior: A Diagnostic Approach. 7th ed. NJ: Prentice Hall,

2001.

 Herzberg, Frederick, B. Mausner, and B. Snyderman. (1959).The Motivation to Work. New York:

McGraw-Hill

 Ingram, D. and Thompson, M. (2012). hbr.org. [online] Harvard Business Review. Available at:

http://What’s Your Risk Attitude? (And How Does It Affect Your Company?) David Ingram and

Michael Thompson [Accessed 21 Dec. 2015].

 Jones, G., George, J. and Hill, C. (2000). Contemporary management. Boston: Irwin/McGraw-Hill.

 Kromkowski, C. (2002). Recreating the American republic. Cheltenham, UK: Cambridge University

Press.

 Palisade.com, (2015). Case Study: Procter & Gamble Uses @RISK – Palisade. [online] Available at:

http://www.palisade.com/cases/procterandgamble.asp [Accessed 22 Dec. 2015].

 Reserved., C. (2015). What Is Risk Management? | ClearRisk™. *online+ Clearrisk.com. Available at:

http://www.clearrisk.com/what-is-risk-management [Accessed 22 Dec. 2015].

 Steers, R., Porter, L. and Bigley, G. (1996). Motivation and leadership at work. New York: McGraw-Hill.

 Vaidya, K. (2012). Inter-organizational information systems and business management. Hershey, PA:

Business Science Reference.

 World Finance, (2015). Types of Risk Management. [online] Available at:

http://finance.mapsofworld.com/risk-management/types/ [Accessed 22 Dec. 2015].

Name-ID-OB-Sample Assignment2 A1

Organisational Behaviour Page 1 of 21

Name Reg. ID:12345

Statement and Confirmation of Own Work

Student Declaration

I have read and understood ATHE Assignment Submission guidelines and Academic Dishonesty and Plagiarism

Policies. I can confirm the following details:

Student ID 13523

Student Name Xxx

Programme Title ATHE Level 7 – Diploma in Strategic Management

Module Organisational Behaviour

Subject Tutor Dr. Asha Peter

Assignment Number 1

Enrolment Date Jan-16

Due Date

Word Count (Excluding TOC, References and Appendices)

I declare that the work submitted is my own work and that I have not plagiarized any part of it. I have also

noted the assessment criteria and pass mark for assignments.

Student Signature:

Organisational Behaviour Page 2 of 21

Name Reg. ID:12345

Course Title: Organisational Behaviour

Assignment No: 1

ATHE Level 7 – Diploma in Strategic Management

Student Name: Xxx Xxx

Due Date: XX

Organisational Behaviour Page 3 of 21

Name Reg. ID:12345

Organizational Behavior

ACTIVITY 1

Effective Leadership Behavior

Organisational Behaviour Page 4 of 21

Name Reg. ID:12345

Table of Contents

A.) LEADERSHIP THEORIES 7

Great Man Theory 7

Trait Theory 8

Behavioral Theory 8

Participative Leadership Theory 9

Situational Leadership Theory 10

Contingency Theory 11

Transactional Leadership Theory 11

Transformational Leadership Theory 12

B.) IMPACT OF MANAGERIAL STYLES ON ORGANIZATIONAL EFFECTIVENESS 13

i.) Autocratic Management Style 13

ii.) Participative Leadership Style 13

iii.) Delegative Leadership Style 13

C.) MOTIVATIONAL THEORIES 14

Organisational Behaviour Page 5 of 21

Name Reg. ID:12345

MAJOR CONTENT THEORIES: 14

Maslow’s Hierarchy of Needs 14

Alderfer’s ERG Theory 14

Herzberg’s Motivator-Hygiene Theory 15

Mcclelland’s Learned Needs Theory 16

Major Process Theories: 17

Expectancy Theory 17

Equity Theory 17

Goal-Setting Theory 17

Reinforcement Theory 18

D.) WORK RELATIONSHIPS AND INTERACTION 18

Developing Trust – 18

Respect to one another – 18

Diversity Management – 19

Communication – 19

Diligence – 19

Power and Politics – 19

Organisational Behaviour Page 6 of 21

Name Reg. ID:12345

Summary

This report will demonstrate the understanding of effective leadership behavior theories and the various

leadership styles in practice. The report will provide an evaluation of managerial styles in the effectiveness

of organizations.

Organisational Behaviour Page 7 of 21

Name Reg. ID:12345

Introduction

This report aims at providing a clear understanding of the various leadership theories and the leadership

styles that are in practice in the organization. The report will also evaluate the impact managerial styles on

the organization. This will also provide an insight on how motivation theories will have an impact on the

employees. It will consider the effects of employee motivation. Finally an analysis has been given to

consider the relationships and the interaction of employees.

A.) Leadership Theories

Leadership is a noteworthy path in which individuals change the thinking of others and propel associations

to perform recognized objectives. Researchers, philosophers have studied the leadership concept for many

years. The literature has wide scope of discussion and development to explain and criticize concepts of

leadership.

Great Man Theory

This theory was proposed by Thomas Carlyle who was a writer and a teacher. This theory dates back to the

19th century. The focus of this concept stems from situational leadership i.e. the inborn leadership skills of

an individual shines as the situational need arises. According to this theory the traits of the leadership are

inborn. This means that a person is born with or without the necessary traits of leadership. It refers to

great leaders as they are destined by birth to become

great leaders. So no matter where or in which group the

leader is, he will always be valued for what he is. Their

dominant characteristics include socializing, intellect, self-

confidence, and magnetism. These leaders also have a

commanding personality, charm, courage and intelligence.

Researchers believed that leaders possess these qualities

from their birth and since then they practice them. This

Organisational Behaviour Page 8 of 21

Name Reg. ID:12345

theory reflects gender orientation. At the time when this theory was presented most leaders were men so

gender was not an issue. Even the researchers were mostly men so the concept of biasness against the

women was not considered (Denslow, 2015).

Trait Theory

Accoridng to Parera (2013) the right combination of certain skill sets to be a leader is the essence of this

theory. Great leaders need to possess traits such as self confidence, courage, sense of responsibility,

creativity and extraversion. These qualities help them to excel. The theory identifies the different

personality traits that are associated to the successful leaders. Different traits lead to different behavioral

patterns. The traits do not guarantee that the person who possesses them will always be successful leader

or not but these are considered as a prerequisite that help the people to enhance their potential. The

advantages of this theory can be considered as (Leadership-Central,

2015):

The theory is widely acceptable as extensive research has been

done for its validation.

It is considered as a tool to assess the capabilities of an individual.

It provides in depth knowledge of the individuals potential by

analyzing the traits that one possesses.

By knowing the various traits, it’s easy to identify prospective

leaders. By possessing certain traits individuals are permitted to

qualify for certain positions.

Behavioral Theory

Behavioural Leader concept says that leaders emerge and are shaped through learnt beheviours

(Technofunc.com, 2015). It actually opposes Great Man theory’s concept of born leaders. This theory

focuses on the behaviors of the leaders as opposed to their mental capabilities in the traits theory. Two sub

notions of this theory are people orientation and task orientation. This theory believes that a person can

Organisational Behaviour Page 9 of 21

Name Reg. ID:12345

become leader through teaching and observation. An example for this theory can be considered by the

actions of a manager who punishes his employees if they are late to work while appreciate when they

arrive at the right time (Changing minds, 2015).

The theory promotes leaders who show their skills by their act

in a certain situation. Individuals can become good leaders by

watching, researching, analyzing, coaching and training

(Technofunc, 2015). Behavior does not refer to the attitudes or

feelings but the actions that are taken in the environment. This

theory considers that it is more important to consider a person

the way he acts or performs tasks rather than accessing his traits that he possesses as his personality. His

actions are more effective, helpful and valuable.

Participative Leadership Theory

As the title illustrates under this concept the prime quality of a leader is his capacity to involve people in

decision making process i.e. through acquiring feedback and input of his followers to shape a decision.

As per this theory, leaders take decisions on the basis of collaboration and tend to make decision taking

into account the opinion of all other members. Such leaders are not autocratic that is self centered but

involve other people such as peers, subordinates, other stakeholders in taking decisions.

This style is very much in use today in the organizations as more and more organizations prefer working in

teams and group where different individuals are required to participate and share their input. This way

decisions can be made by the ones who are going to be affected by them. The theory assumes that when

individuals are asked to share their opinions, the

level of understanding gets better. The people

tend to be more responsible for their actions

when they are the ones who have put forward

those decisions. This helps them to be less

Organisational Behaviour Page 10 of 21

Name Reg. ID:12345

competitive rather they tend to become more collaborative as they all share the same aim. The level of

commitment increases when people work together towards the same aim. The decisions can be more

effective and better when they are made by a group of individuals rather than its one persons decision

(Parera, 2013).

Situational Leadership Theory

According to Paul Hersey’s theory, there is a need for different leaders on the basis of different situations

(Great Thinker, 2008). It assumes that the best action of a leader depends on situational factors i.e.

adaptability of a leader to a certain scenario is the vital concept. Situational leaders should be well aware of

the happenings in their surroundings, they should conduct effective conversation. They also understand

the ups and downs in the organization and that when they should be consistent rather than being flexible.

They have the characteristic of recognizing high performing individual and engaging them in appropriate

tasks. A good situational leader understands the requirements and the needs of the tasks, the employees

and the stakeholders and accordingly restructures his strategy.

This strategy has a number of benefits:

 The theory is simple and therefore can

easily be applied in situations.

 This theory is very easy for any good leader

to adapt and use.

 This theory consider the elements of

maturity and competence as these qualities

help a successful leader to be a situational leader.

However there are certain elements that do not consider this theory as beneficial:

Organisational Behaviour Page 11 of 21

Name Reg. ID:12345

 The theory is not applicable to managers who have limited authority and power. They may not be

able to enforce their decisions and judgments.

 The theory does not prove to be a success in situations where time is a constraint the tasks are

complex.

Contingency Theory

This theory was devised by Fred Fiedler. According to this theory, no one style is suitable for a leader in all

situation. It assumes that the leader’s capacity to lead is dependent upon different situational elements,

including the leader’s favored style, the capacities and practices of supporters. This theory considers two

elements:

Leadership style:

Fiedler believed that leadership style can be measured on a scale such as Least Preferred coworker LPC.

People who score low are more effective in completing tasks. People who score high, are better in making

personal connections and are good at avoiding fights and conflicts.

Situational favorableness:

This can be determined by three factors Leader member relations, task structure and leaders position

power.

Transactional Leadership Theory

This leadership style was described by Max Weber and later explored

by Bernard M. Bass. This theory believes that punishment and reward

are the motivational factors for the people to perform; hence a leader

knows how to use them (Parera, 2013).

The exchange involves four dimensions:

Contingent rewards – The leaders provide the necessary resources

and accordingly reward when successful performance is done.

Organisational Behaviour Page 12 of 21

Name Reg. ID:12345

Active management by exception – The transactional leaders continuously monitor their employees to

ensure that rules are followed as outlined and no one deviates or breaks them. This helps in prevention of

errors and flaws.

Passive management by exception – This style is followed by leaders who only interact when tasks are not

handled correctly. They may punish the employees if the tasks are done in an unacceptable manner.

Laissez-faire – The leader in this case provides all necessary resources and creates and environment with

numerous opportunities. However the leader himself may no make decision and this creates

misunderstandings as the directions may not clearly given.

Transformational Leadership Theory

This concept was introduced by James McGregor Burns. It is considered as a process where both the leader

and the follower will support and raise each other to a higher level of morality and motivation. It assumes

that people will follow a person who motivates them. This leadership trait is not confined to a particular

hierarchical level. A transformational leader possesses the following characteristics:

 Sets goals clearly.

 Motivates and encourages others.

 Understands the emotions of the people.

 Inspires people to look ahead and make the

impossible as possible.

 Visionary and risk taker.

Organisational Behaviour Page 13 of 21

Name Reg. ID:12345

B.) Impact of Managerial Styles on Organizational Effectiveness

i.) Autocratic Management Style

Also known as Authoritarian leadership, this style clearly separates leaders and workers. Autocratic leaders

do not encourage input from the staff rather decision making process

is centralized to them.

Impact on Organization: Though this style is less people oriented

yet quick to implement and usually lead by specialized experts or key

management people. It is usually suitable for tall hierarchies with top

down approach.

ii.) Participative Leadership Style

Also known as Democratic leadership, this style is usually the top

choice for most organizations. This style stresses that management

guides its teams & departments while getting information from

individual staff.

Impact on Organization: The ultimate authority belongs to Leaders

to make a decision yet the welcoming suggestions and input from team

members increases motivation and satisfaction level. This style might

work well with flat organizations; if applied to tall structures might

result in delays and complexity of decision making (Small Business –

Chron.com, 2015)

iii.) Delegative Leadership Style

This style is not really encouraged because of its susceptibility of

effectiveness. The leaders tend to take their hands off from decision making leaving it to the group which is

why is known as Laissez-Faire leadership. It might only work for those individuals who have high analytical

and decision making skills. Most people are likely to be unconvinced with this kind of delegation and might

think that the leader is hardly engaged (Action-Wheel.com, 2015).

Organisational Behaviour Page 14 of 21

Name Reg. ID:12345

Impact on Organization: Since job roles are hardly defined this type of leadership results in lack of

motivation and positive thinking that often creates confusion for team members. On other hand it is a good

way to portrait confidence among subordinates by giving them authority.

C.) Motivational Theories

The term motivation originated from Latin word movere, meaning ‘to move’. It refers to the factor that

influence behaviour of people or enthuse them to act behave and move in a particular dimension i.e. the

value that reinforces the result as defined by Kalat (2013).

Major Content Theories:

Maslow’s Hierarchy of Needs

Maslow wanted to explain the reasons why people get motivated via hierarchical pyramid with different

levels of motivation. He said that it’s a human psychology that when one need is fulfilled a person looks for

the next need and so on. This hierarchy comprises of five

motivational needs depicted in a pyramid. This model consists

of five levels:

 Physiological needs: These needs include the basic

necessities of survival such as air, food, drink, shelter.

 Security needs: These needs are considered as security,

law, stability, freedom of fear.

 Love and belongingness needs: This includes love and affection from family, friends, work group.

 Esteem needs: These are the feelings of self respect, achievement, status.

 Self-actualization needs: This includes personal growth, self fulfillment, and personal experiences.

Alderfer’s ERG Theory

Extended from Maslow’s theory the ERG theory was developed by a psychologist Clayton Alderfer. He

compressed the level from five to three to classify the motivational needs:

Organisational Behaviour Page 15 of 21

Name Reg. ID:12345

 Existence: This is the most basic level and comprises of the basic needs of the people. This

comprises of the two low levels from the Maslow’s hierarchy and Includes all material and

physiological desires. These needs are very concrete

and can be easily identified.

 Relatedness: This refers to social and external esteem

needs. Here relationships with family members, family,

friends, co workers and employers are considered.

These needs are less concrete than Existence needs.

 Growth: This relates to the personal growth and

development of individuals and is meant to be of high

quality, and meaning. These needs are the least concrete.

Herzberg’s Motivator-Hygiene

Theory

This theory was developed by Frederick Herzberg

as the motivator-hygiene theory.

As defined by Fiore (2004) the two factors are

distinguished as hygiene factors that are minimum

essentials to keep dissatisfaction levels down but

they do not contribute to enthuse people.

Motivators are the high level needs which if

satisfied can impact motivational levels of the employees.

The two factors either enhance employee satisfaction or hinder it.

 Hygiene factor – This refers to the dissatisfaction caused to the employees in the work place.

Interpersonal relationship issues, inefficient leadership, unsatisfactory workplace conditions,

company politics, job insecurity or wage related issues can result in dissatisfaction.

Organisational Behaviour Page 16 of 21

Name Reg. ID:12345

 Motivator factor – These are intrinsic factors i.e. these are dependent conditions in the work

place. It includes factors such as responsibilities, job satisfaction, opportunities for growth.

Mcclelland’s Learned Needs Theory

This theory was proposed by McClelland (1987) which exhibits that the sense of need emerges from culture

(Integralleadershipmanifesto.com, 2015)

Affiliation Need (n Aff): This suggests that people who have a high need for achievement avoid low

risk and high risk situations. They avoid low risk if they have achieved success but it was not a genuine

success. In high risk they see the outcome rather than owns effort. These achievers need regular feedback

to keep a check on their achievements and progress.

Power Need (n Pow): The interest in power can be of two types i.e. personal and institutional.

Personal power is meant for those individuals who want to direct others. While institutional powers

enforce people to promote the organizational goals.

Achievement Need (n Ach): These people need harmonious

relations with other people. They want themselves to be accepted by

others. They follow the norms and rules of the workplace. They feel

satisfied in tasks that give them a chance for personal attention. They are

well suited for jobs where they interact with customers or clients.

Organisational Behaviour Page 17 of 21

Name Reg. ID:12345

Major Process Theories:

Expectancy Theory

Defined by Victor H. Vroom Expectancy theory believes that people are usually convinced of a behavior,

therefore can only agree to an extent to choose another. This theory recommends that a person will agree

to act in a certain way because they are inspired to select a

particular behavior over other behaviors (DuBrin, 2009). This

theory comprises of three elements:

Expectancy: It is the belief that one’s effort (E) will result in

attainment of desired performance (P) goals.

Instrumentality: This relates to the belief that if the performance

expectation is met the a person will receive a reward

Valence: It is the value that an individual places on the reward.

Equity Theory

This theory was developed by psychologist Adams (1963) about

employee satisfaction. Adam indicated that employees keep a

balance between what they give to the organization and what they

get in return. When people are treated fairly they are more likely

to be motivated. But when they are treated unfairly, they are

become highly demotivated and dissatisfied. This theory indicates

that a person will involve in social similarity by comparing their energies and returns with those of

significant others. Thus this theory explains why elements such as pay and conditions do not determine the

motivation of employees.

Goal-Setting Theory

This theory was proposed by Edwin Locke (Eysenck,

2004) which says that peope motivation and

Organisational Behaviour Page 18 of 21

Name Reg. ID:12345

behavior is actually affected by their goals. The advantage of this theory is that it helps an employee to gain

incentives as he completes his work quickly and effectively. This concept increases the level of motivation

which results in better performance. Goals set by individuals should be specific, realistic and challenging.

Reinforcement Theory

As reinforced by McClincy (2010), Skinner – the innovative

behaviorist defined it as a learning and motivation concept. As

signified from the name, the reinforced behaviours are likely to

reoccur. Leaders and managers can use this concept via

Positive reinforcement, Negative reinforcement, Punishment

or Extinction.

D.) Work Relationships and Interaction

Since organizations are comprised of people linked and grouped for designated functions, the social scope

cannot be overlooked. With this perspective the interaction, communication and relationships also come in

view. A range of elements can be included as the bases of workplace relationships and interaction. For

healthy relationships a few of the factors include (Mindtool, 2015):

Developing Trust – it is considered as the base of every relation including business relationships.

Developing, retaining and exhibiting trust is always expected in a professional environment. It gives people

a sense of belongingness and ownership. Also facilitate for open communication and transparent dealings.

However, it might contradict with the perceived phenomenon of supervision and control where people feel

‘being watched’ instead of realizing the its need for performance reviews.

Respect to one another – This can be portrayed in number of ways such as listening to others,

valuing inputs and feedback, avoiding presumptions, etc.

Organisational Behaviour Page 19 of 21

Name Reg. ID:12345

Diversity Management – Diversity is one of the core focus organizations are focusing these

days. It means acceptance and appreciation of people along with their inputs irrespective of their

backgrounds. Though, managers require developed skills for welcoming and reinforcing importance of

diversity in the workplace.

Communication – Communication is the most important factor in developing and maintaining

relationships. It involves face-to-face, written and media communication. With the technological

development, role of communication is getting stronger and significant. However, the challenge for

managing communication in ethical and reliable way is also a big challenge.

Diligence – It refers to being mindful about own words, actions and responsibilities

Power and Politics – According to Sias (2009) Power and Politics are two other fundamentals that

tend to develop in any workplace. Power usually emerges from hierarchical levels with authorities.

However accountability and responsibility is equally associated with power. This factor can serve both

positive and negative influences. Politics is likely to have its roots with power, communication and social

networking i.e. when people try to take additional advantage for personal or professional cause they

advocate.

To cope up with complex relationships, work, situational and communication issues, a lot of emphasis has

been placed on developing soft skills related to time management, business communication, emotional

intelligence, listening, problem solving, decision making and social networking.

Organisational Behaviour Page 20 of 21

Name Reg. ID:12345

References

 Action-Wheel.com, (2015). Delegative Leadership Style. [online] Available at:

http://www.action-wheel.com/delegative-leadership-style.html [Accessed 22 Dec. 2015].

 Behavioral Theories Of Leadership. 2015. Technofunc.com [Online] Available from:

http://www.technofunc.com/index.php/leadership-skills-2/leadership-

theories/item/behavioral-theories-of-leadership (Accessed on 30-Jun-15)

 Behavioral Theory. 2015. Changingminds.org. [Online] Available from:

http://changingminds.org/disciplines/leadership/theories/behavioral_theory.htm (Accessed

on 30-Jun-15)

 Building Good Work Relationships Making Work Enjoyable and Productive. mindtools.com.

[Online] Available from: https://www.mindtools.com/pages/article/good-relationships.htm

(Accessed on 14-Dec-15)

 Denslow, T. (2015). ⚡Presentation “Leadership and governance Different types of leaders and

traits of leadership.”. [online] Slideplayer.com. Available at:

http://slideplayer.com/slide/4037064/ [Accessed 22 Dec. 2015].

 DuBrin A. 2009. Essentials of Management. Edn 8th. Canada: South-Western Cengage Learning

 Eysenck. M. W., 2004. Psychology: An International Perspective. New York: Psychology Press

 Fiore D. J. 2004. Introduction to Educational Administration: Standards, Theories, and Practice.

USA: Eye on Education Inc.

 Integralleadershipmanifesto.com, (2015). Solving the Motivation Puzzle | Integral Leadership

Manifesto. [online] Available at: http://integralleadershipmanifesto.com/manifesto/solving-

the-motivation-puzzle/ [Accessed 22 Dec. 2015].

 Kalat, J. (2013). Introduction to psychology. USA: Wadsworth Cengage Learning.

 McClelland D. C. 1987. Human Motivation. Sydney: Cambridge University Press



 McClincy W. 2010. Instructional Methods for Public Safety. Canada: Jones and Bartlett Learning

http://www.technofunc.com/index.php/leadership-skills-2/leadership-theories/item/behavioral-theories-of-leadership

http://www.technofunc.com/index.php/leadership-skills-2/leadership-theories/item/behavioral-theories-of-leadership

http://changingminds.org/disciplines/leadership/theories/behavioral_theory.htm

https://www.mindtools.com/pages/article/good-relationships.htm

Organisational Behaviour Page 21 of 21

Name Reg. ID:12345

 Parera, S. (2013). Function of management leadership. [online] Slideshare.net. Available at:

http://www.slideshare.net/SthefanieParera/function-of-management-leadership [Accessed 22

Dec. 2015].

 Profile, V. (2008). GREAT THINKER. [online] Ochuuw.blogspot.no. Available at:

http://ochuuw.blogspot.no/ [Accessed 22 Dec. 2015].

 Sias P. M. 2009. Organizing Relationships: Traditional and Emerging Perspectives on Workplace.

USA: Sage Publication

 Small Business – Chron.com, (2015). The Effects of Leadership Styles on the Organization.

[online] Available at: http://smallbusiness.chron.com/effects-leadership-styles-organization-

10387.html [Accessed 22 Dec. 2015].

 Technofunc.com, (2015). Behavioral Theories of Leadership. [online] Available at:

http://www.technofunc.com/index.php/leadership-skills/leadership-

theories/item/behavioral-theories-of-leadership [Accessed 22 Dec. 2015].

 Trait Theory. 2015. Leadership-Central.com,. [Online] Available from: http://www.leadership-

central.com/trait-theory.html#axzz3uUGAwpPp (Accessed on 30-Jun-15)

http://www.leadership-central.com/trait-theory.html#axzz3uUGAwpPp

http://www.leadership-central.com/trait-theory.html#axzz3uUGAwpPp

Name-ID-OB-Sample Assignment2 A2 PPT

Activity 2
Presented by : Fouad Ahmed

Contents

Activity 2

 Organization Structure and Culture

 Types of organizational Structures

 Types of Organizational Cultures

 Relationship between culture and organizational Performance

 Characteristics of high performing organizations

 Facilitation of innovation and creativity

 Importance of learning in organization

 Effectiveness of team working

Organization Structure and Culture

Organization Structure

It can be defined as the hierarchy of reporting lines in an organization. A

structure describes how members are accepted, how leadership is chosen, and

how decisions are made.

Organization Culture

It can be defined as the values and behavior of employees that affects the

organizations long term vision. It represents the collective values, beliefs and

principles of organization’s members.

Types of organizational Structures

Organisational structure is one of the vital component to be included when

deciding about company’s strategic mission and visionary goals. Also it is

supported by cultural values a company aims to reinforce.

Three most common types of organisational structures are:

 Functional

 Divisional

 Matrix Functional

Matrix

Divisional

Functional structure

It is like departmental structure where individuals are grouped according to the functions

and activities they perform. Majority of organizations are like to have functional

structure with departments like HR, Finance, Marketing, Sales, Asset Management and IT.

This structure support skill and knowledge sharing providing employees opportunities to

learn and grow in their respective field. Might serve as an obstruction when

interdepartmental competition arises; provide space to hoard knowledge.

Divisional Structure

Appropriate for big multinational or global companies that have offices spread in

various geographical locations. Also for different strategic subunits or companies

operating under one parent brand. The divisions are therefore developed

according to market wise or based on product development. Though this system

is responsive to changing needs of a particular industry but expensive to maintain

because of scope and size.

Matrix Structure

The blend of functional and divisional structure is Matrix. With the hybrid, it allows to

have features of both types of structure. Yet it is complex and expensive because of

overlapped job roles

Types of Organizational Cultures

 Adhocracy: Supports creativity where staff is encouraged to take risks and

initiatives, provide novel ideas and experiment them.

 Clan: Well suited for family business where care and personal relationships

are important than competitiveness

 Market: Goal and target focused culture type. Place emphasis on

competition and market needs.

 Hierarchy: Planned and organized job levels; well suited for large

coporations

Culture and organizational Performance

Fairfield-Sonn 2001 strongly advocates that the culture does impact organisational and individual

performance. Since it culture has its roots in the ways operations are carried out and decisions are

shaped everyday in an organisation

Organizational culture has the potential to improve and organizational performance.

 By understanding the organizational culture the employees are aware of organizations history

and methods of operations.

 It can foster commitment between the employees and the organization. This way organizations

can achieve effectiveness.

 This can help make the employee understand the acceptable and the non acceptable.

 It can help understanding employees’ safety nets and their psychological contracts with the

organisation

 Understanding culture can help in achieving higher productivity.

Organisational Culture and Structure

Choice of culture is also linked with the organizational types and structure.

No culture can be ideal for all organisation. It should be developed based on

organisational strategy and type of business. For instance:

 Hierarchical culture is more control oriented with set roles and

levels hence more suitable for large bureaucratic organisations

like McDonald’s and Ford whereas adhocracy culture gives freedom

to think and raise opinions like Google.

 Market culture focus on competition which drives results like

General Electric but clan culture is more focussed on care and

concern like most of Japanese firms.

Characteristics of high performing

organizations

Some of the characteristics of high performing organizations are as follows:

Clear Management: Organizations that implement transparency in their

commitments with the stakeholders are successful.

Collaboration: The higher the collaboration among the employees and the

management, the higher the organization will perform.

Financial Efficiency : A high-performing organization manages financial

resources efficiently.

Measurement and Feedback: Organizations can use feedback to change their

performance to meet their goals.

Name-ID-OB-Sample Assignment2 A2

Organisational Behaviour Page 1 of 5

Name Reg. ID:12345

How organizations can improve
employee effectiveness to respond to
business opportunities.

Contents

Facilitation of innovation and creativity ……………………… 2

Importance of learning in organization ……………………….. 2

Effectiveness of team working …………………………………… 3

Factors contributing to team’s ineffectiveness ………….. 3

Frail Leadership – ………………………………………………. 3

Authority deference – ………………………………………… 3

Disruptions and blockage – ………………………………….. 3

Group Thinking –……………………………………………….. 3

Apprehensive Evaluation – ………………………………….. 3

Why organizations need to change …………………………….. 4

Managing Change Effectively …………………………………….. 4

References ……………………………………………………………… 5

Organisational Behaviour Page 2 of 5

Name Reg. ID:12345

Continuous Organisational learning, encouraging

creativity and effective team work are essentials to

improve employees’ efficiency which ultimately helps in

responding to new business opportunities

Facilitation of innovation and creativity

Following methods can be adopted to facilitate innovation

and creativity in the organization:

* Foster an open, creative work environment

* Motivate the team members.

* Encourage diversity.

* Provide proper tools, resources and equipment.

* Create innovative teams.

* Don’t penalize, criticize or argue

* Encourage experimentation, lower the fear of failure

Importance of learning in organization

Learning is an important element in organization.

* It develops morale and motivation.

* It helps in identifying problems and their optimal

solutions.

* It aids in staff retention.

* It provides deeper understanding of issues from

different perspectives.

* It increases productive capacity.

Organisational Behaviour Page 3 of 5

Name Reg. ID:12345

Effectiveness of team working

Effectiveness of a team is based on following factors:

* Knowing the team member

* Understanding and communicating roles and
responsibilities

* Improved group dynamics

* Open communication across all team levels

* Problems should be handled and resolved at earliest to
break down obstructions

* Developing commitment among team players to the
same goal

Factors contributing to team’s

ineffectiveness

Frail Leadership – A more dominant member should
take an initiative if the leadership is weaker

Authority deference – this can hold people from raising
their opinion since the implicit expectations are to agree
with the leader

Disruptions and blockage – when a few of the team
member tend to act as joker, negator, aggressor,
recognition seeker or free rider

Group Thinking – It can also be a negative element of
teamwork since the member tries to agree to an approach
rather than focusing on correct decision making

Apprehensive Evaluation – If team members think that
they are being critically evaluated they are likely to hold
their opinions instead of presenting them to the team

Organisational Behaviour Page 4 of 5

Name Reg. ID:12345

Why organizations need to change

Many things cause organizational change. These include:

* Challenges of growth, especially global markets

* Economic downturns and tougher trading conditions

* Changes in strategy

* Technological changes

* Competitive pressures, including mergers and
acquisitions

* Customer pressure, particularly shifting markets

* Learning new organizational behaviors and skills

* Government legislation/initiatives.

Managing Change Effectively

Changes are inevitable. However to cope up and manage

the changes is the challenge for all leaders. Kotter’s Model

describes 8 steps involved in managing change in the

diagram below (Sengupta, 2012)

Organisational Behaviour Page 5 of 5

Name Reg. ID:12345

References

Gordon, Judith R. Organizational Behavior: A Diagnostic

Approach. 7th ed. Upper Saddle River, NJ: Prentice Hall,

2001.

Motivation and Leadership at Work (Steers, Porter, and

Bigley, 1996)

Adams, J. Stacy. “Toward an Understanding of Equity.”

Journal of Abnormal and Social Psychology, November

1963, 422–436.

Herzberg, Frederick, B. Mausner, and B. Snyderman. The

Motivation to Work. New York: McGraw-Hill, 1959.

Jones, Gareth R., Jennifer M. George, and Charles W.L.

Hill. Contemporary Management. 2nd ed. Boston:

Irwin/McGraw-Hill, 2000.

Improving Group Dynamics – Helping Your Team Work

More Effectively. Mintools.com. [Online] Available from:

https://www.mindtools.com/pages/article/improving-

group-dynamics.htm [Accessed on 17-Dec-15]

Building Teams That Work!. Personnelinsights.com.

[Online] Available from:

http://www.personnelinsights.com/team_analysis.htm

[Accessed on 17-Dec-15]

Sengupta N, Bhattacharya M S., Sengupta R. N. 2012.

Managing Change In Organizations. New Dehli: PHI

Learning Private Limited

https://www.mindtools.com/pages/article/improving-group-dynamics.htm

https://www.mindtools.com/pages/article/improving-group-dynamics.htm

http://www.personnelinsights.com/team_analysis.htm

Name-ID-OB-Sample Assignment2 A3

Organisational Behaviour Page 1 of 6

Name Reg. ID: 12345

Organizational Behavior

ACTIVITY 3
Organisational Effectiveness

Information Pack

Organisational Behaviour Page 2 of 6

Name Reg. ID: 12345

Table of Contents

INTRODUCTION TO ETISALAT 3

ETISALAT – STRUCTURE 4

IMPROVING EMPLOYEE EFFECTIVENESS 5

REFERENCES: 6

Organisational Behaviour Page 3 of 6

Name Reg. ID: 12345

Introduction to Etisalat

Etisalat, the leader in telecommunication across UAE and Middle East was

founded in 1976 and has since expanded its operations in more than 19 countries. It has its

headquarters in Abu Dhabi. In March 2014, it reported its net revenue of US$10.6 billion (AED

38.85 billion) and net profits of USD US$1.93bn (AED 7.08 billion) (Etisalat.ae, 2015).

Etisalat provides a number of services to its customers. Some of the Internet services for home

users that Etisalat offers include: 3G Mobile Internet access, 4G Mobile Internet access,

Broadband, d Internet services (Al Shamil and eLife), Prepaid and Postpaid mobile packages.

Etisalat has been a pioneer in the field of telecom in the region. It has also been successful in

meeting the needs of its employees by providing them standard salaries as per the industry,

providing them with sufficient facilities to grow them personally and professionally.

Etisalat – Culture

Etisalat follows a hierarchical culture. The corporate levels and structures are clearly defined.

With top down approach the orders from management descends down to employees through

middle management for day to day operations with explicit communication channels. Relevant

employees report to their respective managers (Small Business – Chron.com, 2015).

As the instructions are clearly defined, this avoids confusions and misunderstanding. This helps

in perfect results as per the expectations of the management. An environment of open

communication is in effect where employees share their knowledge and upgrade their skills.

Employees are encouraged to continuously grow themselves by travelling, going through

trainings and various other courses.

Organisational Behaviour Page 4 of 6

Name Reg. ID: 12345

Employees communicate through the intranet and all the requests are made through the same.

The management hierarchy has access to the same service. Requests are forwarded to various

managers in the hierarchy.

However, it does not allow open innovative ideas to be introduced at every level all the time

nor does it encourage risky initiatives i.e. adhocracy culture is not encouraged which is pre-

requisite for any learning organisation.

Etisalat – Structure

A Functional structure is followed in Etisalat. An expert individual manages his staff who is

qualified enough to supervise the tasks and people. The Staff is managed by a manager who has

experience in the same specialty and can adequately understand and review their work. This

way he can assist the performance of the employees and ensure that that the tasks are carried

out in the right way. He can also ensure that the subordinates are following the procedures as

they are mentioned and required by the management. The career ladder enables employees to

accelerate in their filed and benefit the company as well with their developed experience in

long-term. This helps them to retain the employees for longer periods of time and thus

reducing the turnover rate. The management does not have to spend time and effort in hiring

new candidates each time and then making arrangements for training them according to their

respective designations; though new hiring is also essential for fresh ideas and concepts.

The structure supports learning culture in a way to offer job movement and rotation for

acquisition of new skills; despite that this may hinder knowledge sharing if people are insecure

of their designations. Team work helps the employees to enhance their knowledge and upgrade

their skills. The structure of Etisalat looks like the following:

Organisational Behaviour Page 5 of 6

Name Reg. ID: 12345

Improving employee effectiveness

According to Kouhy et al. (2010) employee effectiveness supports organisational effectiveness.

Whereas employees can be only be effective when they are motivated. The management of

Etisalat gives a lot emphasis on the employee effectiveness. They give high value to the

employees as it believes them an asset for the organization. They have a number of schemes to

enhance the motivation of the employees.

Financial Incentives
Financial incentives are given to the employees who perform well. The performance is
measured on the basis of certain criteria like punctuality, quality of work, peer assessment etc.
they are provided by the following

Individual bonuses – An increment in the salary is given as a way of recognition of the
employees’ hard work to the organization.

Sales commission – Sales managers are given targets to meet. If they achieve their targets they
are given commission for their efforts. This helps the sales team to put extra effort and increase
the sales.

Stock options – The UAE nationals are allowed to get stocks in the organization. The more the
organization will succeed the higher the returns will be gained by the stockholders.

Organisational Behaviour Page 6 of 6

Name Reg. ID: 12345

Moral Incentives – Various moral incentives are given to the employees to recognize their
efforts for Etisalat.

Awards – Certificates are given to the employees to appreciate their accomplishments.

Recognition – An Employee of the month is chosen every month who has performed his duty in
an excellent manner.

Promotion- employees are upgraded and promoted to senior positions if the management
considers that the person has put effort in his job.

References:

Kouhy R. et al. (2010). Management Accounting, Human Resource Policies and
Organisational Performance In Canada, Japan and the UK. UK: CIMA Publishing

Samenacouncil.org,. ‘Etisalat Recognizes Highest Achieving Employees In Northern Emirates
Region – SAMENA Telecommunications Council’. N.p., 2015. Web. 11 Jun. 2015.

This is Dubib.com,. ‘Etisalat Recognises Its Top Talent To Inspire And Motivate Employees At
Work’. N.p., 2015. Web. 12 Jun. 2015.

Etisalat.ae, (2015). etisalat. [online] Available at: http://www.etisalat.ae/en/aboutus/about.jsp

[Accessed 22 Dec. 2015].

Small Business – Chron.com, (2015). Pros & Cons of a Hierarchical Organizational Structure.

[online] Available at: http://smallbusiness.chron.com/pros-cons-hierarchical-organizational-

structure-24276.html [Accessed 22 Dec. 2015].