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INTRODUCTION to Organization behaviour

Organization behaviour is that field or subject area that which is into analysis of behaviour and actions of all individuals who are working within an enterprise. With this process, an understanding is developed of factors like organization and its culture and structure and their impact on personnel as well as the teams working within it. Additional factors include effectiveness of leadership styles and other practices like that of motivating the employees and retaining them are also included within organization behaviour.

An effective leader not only influences the subordinates but also motivate them to work in order to fulfil the objectives of an organization (Nelson & Quick, 2007). In addition to this, this aspect is also the application of such knowledge into an organization that helps in enhancing its effectiveness. Organization behaviour also includes the study of various processes that companies implement in order to develop and enhance the effectiveness of its employees. This also includes the manner in which decisions are taken at various levels within a firm (Adeyemi-Bello, 2001).


Leadership refers to the ability of a superior or leader to influence behaviour of followers and also inspire and persuade them so that they follow a desired and particular course of action. Leadership in not only influencing the subordinates but also taking them all together and help them in leading their own way (Adeyemi-Bello, 2001). This also motivates them in order to achieve the goals and objectives of a team or an organization. In this respect, there are a number of leadership theories that are proposed. Early leadership theories laid focus on qualities that distinguish between leaders and followers while on the other side the theories that were proposed later emphasised on variables like levels of skills and situational factors (Leadership and Organizational Behavior, 2013). However, when all theories were out into practice they all prove to be effective in one or the other.

The foremost leadership theory was known as Great Man theories according to which leadership qualities are inherent within an individual and so great leaders are made but they are only born. For example, leaders like Mahatma Gandhi, Napoleon and Lincoln were those who had got inborn leadership traits and also exhibited them into practice in the best possible manner. The leaders posses the extra capability to lead and make the followers follow them. Similar to this is the Trait theory which puts forward a list of certain specific traits like personality, social and intellectual skills which it considers are present in effective leaders. The theory when put into practice was effective in predicting the behaviour and skills of a leader but there are no universal traits with which prediction of leadership in all situations can be done (Guzman, 2013).




Organizational structure refers to the hierarchical arrangement of lines of authority, flow of duties and responsibilities within an organization. In other words, it is the actual framework within an enterprise. This is used for defining how activities such as coordination and supervision along with allocation of tasks which are directed towards accomplishment of aims and objectives of an entity. In other words, it is the structure of the organization that determines the way in which it operates and performs it activities (Organizational Structures, 2014). This is the foundation on which standard procedures of operation rests and also determine the
individuals who participate in the decision making process. There are different types of organizational structure which has an impact on its effectiveness and are described as follows –

Flat structure – This structure has less number of levels of management with each level has a broad scope of control or commands a larger group of subordinates. This structure focuses on empowering the employees rather than developing a chain of command (Waltz, 2009). For example, the famous company Apple implements a flat structure within its place where it believes in empowerment of its employees by encouraging them to be self directed and autonomous. The flat structure is helpful in enhancing the effectiveness of organization is given by the fact that this attempt to tap the creative talents of its employees by not controlling and supervising them closely (Stare, 2011). In addition to this, flat structure is also effective in solving problems within Apple by collective collaboration of all. The structure is helpful towards effectiveness of organization like Apple as it offer more opportunities for employees as they are more flexible to work within and adapt more easily to changes.


There are many ways by which efficiency of employees can be increased to the level where they can utilise their potential to highest point. To achieve the set objective of an organization on time, it is needed that employees always work in an effective way (Cochran,2003). If people of the firm will not work with their complete potential, company may have to bear losses for this. To avoid these issues, some ways are like:

Designing economic incentives – In most of the enterprises, main focus of designing incentives is on senior or high level only. Very less consideration is given on middle level or lower level employees. As without working of them, goals can never be met of a company. In order to increase the efficiency of people of an organization, it can be an approach to provide economic incentives to middle as well as lower level people (Yeh, 2003). For example, Tesco makes its employees satisfy and happy which ultimately leads to higher output as they work by their own willingness towards meeting of objectives.

Providing meaningful feedback – To provide meaningful feedback to employees on a regular basis is also a way to make them encouraged. People who are encouraged regularly by their managers or supervisors are having more confidence and willingness to work as compared to those who are not being motivated. When people get proper feedback from their superiors, they feel considered as well as satisfied (Gadenne, 2009). It leads to higher efficiency in their work and attainment of the specified goal within the stipulated period of time. It is not needed that the feedback must be positive always. It can be negative but should be given in such a way that people understand the places where they are lacking and try to correct those areas. For example, Mc. Donald’s regularly used to give feedback to its employees according to what they have performed (Teng, 2014).

Respect to the employees – Employees should be given proper respect in order to get it back from them. If they are not being treated with respect, they would feel inferior and unsatisfied. Their dissatisfaction can lead a firm to suffer from various negative issues like, lower productivity, less confidence, no willingness to work and lack of integration and coordination (Yeh, 2003). People who are being considered in firm, assumes that company as their home and members as family. It creates an emotional attachment in between employees and the whole staff. They take company’s target as a common goal and work in order to achieve that with complete coordination. Sainsbury’s give equal chances of participation of its staff as well as respect to their opinions (Cochran, 2003).

Providing adequate training – Staff of any organization should be well trained, that is, a proper training and development program should be designed for them. It will increase their efficiency in performing tasks and would also leads to their enhancement in skills and knowledge. Training sharpens the ability of employees to work as well as to learn new things (Waltz, 2009).

Recognition of employees – It has been found in a study that recognition works more than that of money. In order to provide satisfaction, organization has to understand the importance of emotional feelings of people. Money makes them happy for a very short period of time but recognition makes them satisfied which remains for a long period. Employees and their work should be acknowledged time to time (Barton, 2011). It will be helpful to increase their efficiency as well as effectiveness to perform more to attain the set goal.

Effective leadership – If leadership in a company is effective, it will be successful to influence and encourage people towards accomplishing goals. Main task of a leader is to motivate employees in such a way that they would give their best efforts to achieve the goal. A leader is a person who has the trait to make people do what he wants them to do (Gadenne, 2009). Employees of the organization admire leader more than a manager as they are in direct contact to them and maintain strong relationships. It helps to make people realise their highest level of potential and made them work accordingly. For example, Morrison’s is the company which gives due care to their leadership effectiveness in order to get maximum output from their employees (Teng, 2014).


Decision making within an organization is one of the most important aspects as this help in framing accurate policies and procedures for it. Business decision making are guidance to all levels within the company so as to work towards fulfilment of goals and objectives. Organizational decision making takes place at different levels within large or complex ones so that effective functioning can be ensured (Herstein, 2008). The different levels at which decision are taken are described as follows –

Strategic level –This is the highest level of decision making and at this level decision is taken by the top most executives within an organization. For example, at the strategic level of Hindustan Unilever (HUL), strategic level decisions are taken by Chairman, President or Boards of Directors and Chief Executive Officers. The decisions as taken by this level are such that it provides direction to the entire company and for its units or brands. This involves performing of situational analysis and evaluating the position of HUL by analysing its internal and external environment (Tosi & Pilati, 2011).

Tactical level -Tactical level is next to that of strategic one and involve taking of the decisions in their own areas. The people who are involved in decision making at this level at HUL are the personnel and marketing manager, chief financial officer or advertising manager. The decisions that are taken are the medium term that includes a time period of three to twelve months. The individuals at this level implement the decisions that are taken at the strategic one according to the future vision of the company. At this level, alignment of available resources is done so as to put them to effective use (Aggarwal & Bhargava, 2009). In other words, organization decision making at tactic level of HUL is intended to set specific objectives for each area of specialisation and then formulate the plan accordingly. In other words, the level frames the practical steps that are required in order to implement the strategies formed at the strategic level. The decisions at HUL at this level may include analysing on adjustments of fiscal year budget, re allocation of marketing resources and evaluation of human resources available and required in future. 

Operational level The decisions taken at this level are semi structured and shirt term that are generally taken on daily or weekly basis or to two three months (Appelbaum, 2012). This involves tasks required for implementation of tactical decisions. The level at HUL mainly serves to control mostly day to day output relative to costs, schedules and specifications. The individuals involved in taking decisions at operational level include the store manager or foreman. Operational managers at HUL directly deal and manage the staff as well as the customers. They make such decisions that are vital to production as well as making effective sales and providing of services. As an example, decisions at this level in HUL may include are about available raw materials, cost of production, goods in process or the goods in demand (Waltz, 2009). Thus, the operational level considers important aspects so as to make the products and services available to the customers effectively.


From the report, it can be concluded that organization behaviour and its understanding is one of the most important concepts within an enterprise. Within a firm, the most important process is that of presence of leadership as this help in motivating the employees in the best possible manner. Along with this, there are different structures and cultures within an organization that has an impact on its working and activities. It can be also concluded that companies take decisions at various levels and take effective measures to develop its employees (Herstein, 2008).




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  • Organizational Structures. (2014). [Online]. Available through: < http://www.tutorialspoint.com/management_concepts/organizational_structures.htm > [Accessed on 22nd April 2014].
  • Performance and Motivation in mcdonalds. (2013). [Online]. Available through: <http://www.streetdirectory.com/travel_guide/184092/human_resources/performance_and_motivation_in_mcdonalds.html > [Accessed on 22nd April 2014].
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