Organization Behaviour

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Introduction to Organization behaviour

Organization behaviour is the study of way in which employees interact in a firm. It is applied to make the business effective by applying scientific approach through staff members. It helps the human resources of firm to increase the output of company for gaining high profit. The present report focuses on impact of managerial style in ASDA. It represents the relation between working relationship and interaction of employees in the firm (Zehe and, 2013). It further gives stress on organizational culture and structure of the firm, Google. Along with that, it defines the contribution of creativity and innovation in the organization. Apart from that, it analyzes the team working within ASDA. In addition to this, report also focuses on the management approaches of risks and uncertainty in the enterprise.

1.1 Evaluating leadership theories

There are many leadership theories which help the employee in developing leadership skills. According to Contingency theory, there are no rules and principles for the leadership. This process is based on some certain conditions that describes some employees perform at highest level at certain place but sometimes, they give their minimal performance (Knippenberg, Prooijen and Sleebos, 2015). According to  Banal (2011), This theory provide effective opportunities to managers to make effective groups through changing many variables in the organization. It also help the leaders to work adverse condition in the firm. However, this theory is very typical to understand for the employees. It creates complexities for leaders to implement in the organisation (Bansal, 2011)
Generally, behaviour leadership explains human nature like social, mental and physical behaviour of the leader in the company. It focuses on new perspective. It finds leadership factors through psychology test of the person. On the other side, these factor do not help person or firm every time to  identify leadership skills  of individual in the organisation. There are several aspect to determine the leadership skills like effective communication and problem solving skills of employees in the firm (Ruzaman and Sakka, 2015).

1.2 Describing the effect of managerial styles on corporation’s effectiveness

There are many managerial styles which help the organization in increasing effectiveness. It is described as follows:

In the autocratic style, organization managers take self-decision in the corporation.  They do not involve any employees in the decision making process. This managerial style can be effective  for the organization if the mangers of the firm are experienced; then they can take right decision on the basis of their knowledge (Belot and Schröder, 2013). As per the Miller and Rice, (2013), it create negative impact on the employees in the firm. This style also can demotivate the staff members regarding working in the enterprise (Miller and Rice, 2013).
In democratic style, manager involves all members in the decision making process of the company. Then after, all employees discuss on various factors in the meeting. According to majority, all individuals take decisions regarding the company. Generally, this approach is creates positive impact on the employees of firm by including in the meeting. It also inspire the staff members regarding their work. On the other side, It is time consuming process. This leadership style can delay organisational efficiency in the market which can create negative impact.

In the laissez-faire leadership employee have capacity to take any type of decision to provide effective customer service in the market. Generally, this style also develop positive attitude and effective confidence for employees to take decision for company. According to Shi and (2013), if employees can make wrong strategies then it create negative impact for image of organisation in the country. Further,  It can create loss for company (Shi and, 2013).

1.3 Explaining the way in which motivational theory can improve employee motivation

There are many theories like cognitive, reinforcement and equity which can be used by company to enhance motivation of the employee. For example, Organization can use cognitive motivation theory for the its workforce. Mainly, this approach is divided in external and internal category. In the external level, staff members are inspired through extra salary, incentives, medical facilities as well as other services in the enterprise. These theory motivate the company members to give more efforts in the corporation. In internal level, generally organization realises importance of the employees through rendering their various roles and responsibilities in the enterprise (Nargesi and, 2013). This way, management of the firm also motivates the individuals in working efficiently. This way, organization can increase its efficiency and productivity in the market. In the cognitive theory, this process describes impact the results of the employee in the organization in term of increasing efficiency. In addition, this theory increases the motivation of staff members by providing good remarks, bonus and promotion in the company. Otherwise, constant working procedure of the employees reduces the zeal of working in the firm. (Autier, Azéma and Boustingorry, 2014).  For example, organization can also apply equity theory for its staff members in the enterprise. With help of this approach, company can get huge help to manage equity by providing equal salary and other benefits to the employees as per their work.

1.4 Define the theories relating to work relationships and interaction

There are many theories which are related to work relationship and interaction. It is defined below in the paragraph.

Scientific Approach- Generally, It can be applied in the company for better output in the market. scientific theory is defined as how work can be done efficiently with speed. The first step of this concept is to identify objective of the organization. Then after, management of the organization designs performance standards to remove the traditional method. Employee does their job according to expertise and knowledge which help to relate their work relationship and interaction in the organization. Scientific approach determines the efficiency of company through time and motion studies (Ruzaman and Sakka, 2015). In addition, firm designs optimistic working method for employees as per their need at the workplace. Further, the organization trains its staff members according to new process. This process increases work relationship and interaction between employees.

Decision making approach- It can be implementation in the company for selecting one appropriate decision from many alternatives in the given options within the corporation. This process also relates work relationships and interaction of employees. Generally due to some restrictions, decision makers formulate plan after discussing in the meeting. Sometimes, they take their decisions in attaining minimum criteria rather than getting optimal solution due to lack of alternatives (Blomme and Bornebroek-Te Lintelo, 2012). This type of decision making approach also connect work relationship and interaction of staff members in the organisation.

Describing the culture and structure of chosen organization and considering the way in which it has impact on firm’s effectiveness

Google uses hierarchical structure and basketball culture in the organization. In the basketball culture, corporation gives freedom to its employees. Staff of the company directly shares their ideas with the management. Management of organization involves maximum individual in the decision making process (Coghlan and Brannick, 2014). Culture of Google organization provides authority to do what they want in the organization. In the firm, there are many effectiveness of basketball culture.   This effective culture helps the company to hire best technical person which are good in every field like analytical and creativity, thinking process and core field.This culture improves the practices of the human resource in the Google firm. Further, this department uses various types of scientific approaches to identify employee behaviour. For example, they use retention algorithm to find out how many employees are leaving the company in year on basis of their software report. Basketball culture provides casual and dramatic values in the organization (Piaget, 2013). Enterprise uses many techniques to entertain through sports, gaming and management activities. This process explains the mission and vision values of Google organization. It also states why organization does, what is purpose of firm behind this step (Ropo and, 2015). Basket ball culture increases the effectiveness of Google enterprise. It helps in maintaining transparency in the working environment. Google firm inspires their employee in managing community events in the outside world. This process greatly assists the organization to hold best corporation culture.

Google uses hierarchical structures in the organization. Management of firm is divided in administrative, operational and executive level. High level department conducts managerial work like rules and policy development in the organization. Middle level management handles specific department of Google like IT and technology division (Weick, 2012). Operational unit of Google Company handles pre specified area according to employee expertise like network, software engineer.  This structure provides many benefits to the organization through reliable work (Hierarchy structure, 2013). On the basis of this, Google Corporation improves its performance in the world. It enhances research and development through middle and executive support. It changes working style in the work by following innovative technologies like Enterprises Resources planning and latest equipments. It enhances Google services through efficient employees in the world (Rice, 2013).


From the report, it can be concluded that, leadership affect in enhancing the organization performance through contingency, behavioural and transformation theories. It also represents motivation of the employees through reinforcement, cognitive and equity theory in the ASDA organization. Further, it states different type of characteristics of various kinds of the organization structures through hierarchical, matrix and flat method which provides reliability in several work of corporation. In an addition, it represents optimal effect of the basketball culture and hierarchical process on the Google. So it can be said that, selected methods increases operational efficiency of the firm. Further, report analyses the approaches of decision making process through rational, behavioural and practical decision making in reducing complexities of the ASDA organization regarding formulating perfect plan.


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