Organization behaviour is the study related to individual, group performance and activities within an organization and the way in which people behave in a firm. In this report, it tells about different organizational structures and cultures and the relationship between both of them and along with this the relationship between both the terms will be mentioned in the report. The study will discuss Henry Fayol's principles and the impact of leadership styles on managers. Also, it will discuss motivation theories, organisation theories and management approach.
- Functional structure- Functional structure is a common type of organisational structure in which the firm is divided into small groups based on areas like marketing, human resource and operations. For example, McDonald follows a functional structure as it has separate departments for marketing, finance and HR as well as customer service. Generally, all functional heads report directly to McDonald's CEO or president (French, 2011).
- Product Structure- Product structure is the type of organisational structure where employees have to report directly to the head of the company. This structure is mainly used by retail companies that are having stores in different cities like McDonald, Dominoes, and Starbucks.
- Geographical structure- In this structure different offices and business units are situated in different locations and organization has to manage all the business units simultaneously. For example, Walmart delegates human resources for different projects from different divisions and this reflects geographical diversion in business. (Aquinas, 2006).
Different organisational culture
- Power culture- In this culture, one person has control over everything in the organisation. For example, Sir Alan Sugar's company where the owner is the only one who is having control over everything like an owner decides employee’s salaries, wages, working days, holidays, etc.
- Role culture- In this culture, a role is assigned to an individual. For example, in supermarkets such as Waitrose where each member has a different job role and this role is provided by the higher authority.
- Task culture- This culture is all about teamwork. When people work together in a team they use different skills so as to work together and this helps them to complete the task. Example, the London Olympics has adapted task culture like so many people work together to complete the project.
EasyJet plc has a strong hierarchy in which employees are very specific with their jobs, roles and responsibilities. The organisational structure of EasyJet plc is mainly based on the leadership and this is managed by the head or board of directors and they are also entitled to monitor the airline in every aspect. They make decisions and distribute the information to every department within EasyJet for implementation of different projects. Further, the culture of EasyJet is to work with all the employees from different background and to treat them equally without any discrimination; hence it motivates employees and as a result, they deliver better services to customers. Hence, it will increase the productivity of an organization that results in an increase in employee satisfaction (Breese, 2013).
From the above section, it has been identified that there is a positive relationship between both the organization structure as well as culture. The above section has clearly explained that there is a huge impact on both of these on the performance of the company. By having a better and friendly work culture employees feel motivated and perform all their tasks effectively. It affects the whole working of staff members and they are able to produce more quality services for their customers. In this regards, it can be stated that by having friendly work culture and hierarchal organization structure Easy Jet Plc can easily maintain their work on a given deadline.
At the time of attempting the whole questions above it has been concluded that setting organization structure and culture according to the behaviour of an organization is considered as a most important part. There are different types of structure and culture which help the company in taking several decisions regarding the given work. Further, they are able to easily distribute the information to every department within EasyJet for implementation of different projects.
- Leadership- Leaders influence individuals in a positive way as leaders motivate their employees to work. Leader act as a mentor and also helps in resolving the issues of employees. The type of leadership plays a vital role in the organisation as a lot of influence is done by the leader.
- Work Culture- Work culture influence the behaviour of an individual by seeing whether the work environment is bad or good in an organization. Job security is important to factor that influences the behaviour of individuals at the workplace and it maintains the company's loyalty as well. It is one of the basic requirements for an individual to have a good work culture in the organisation. A positive and favourable culture will ultimately boost the employee and its efficiency would rise to a newer level.
- Communication- Communication is the main factor which influences the behaviour of individuals in the workplace. Managers have proper interaction with the team members by treating employees well in an organisation so that no communication gap will be there. Further, fear in the employees has a bad impact on the organisation because of this productivity get decreased of organisation. The communication should be simplified and the employee should not back himself while communicating. If it is not proper there would be a lot of confusion in the organisation. Thus communication is important and it plays a vital role in the organisation.
- Family & personal life- This factor influences the individual behaviour in the organisation when conflict arises in a working environment and it leads to stress that affects the quality of life and in the performance of an individual. Therefore, it is necessary to keep their personal life separate from professional life (French, 2011). There should be a proper balance between both as it can affect the decision making power of the employee which is harmful not only for himself but for the whole organisation.
Managers should understand individual behaviour such as task performance, loyalty and punctuality because organisation hire a person with some expectation that they come with certain knowledge, skills, abilities and personalities so that they work in an effective way. An individual should come up with task-oriented behaviour and maintains its punctuality at the workplace that he should come daily in time, do not take much leave in an organisation. Otherwise, it will be a bad impact on the loyalty of a person (Reychav and Sharkie, 2010).
Organisation theory includes classical theory which represents the merger of scientific management, bureaucratic theory and administrative theory.
Neoclassical theory: It emphasis mainly on the human factor to increase the productivity and satisfaction of customers and see how people relate and interact with the management. For increasing productivity of the organisation, management can improve the working condition, lower the working hours.
Classical theory: Classicaltheory emphasis on structures and it supports the practice of management by making high-quality products, reduces its cost, a good relationship with workers and management to increase its efficiency.
Modern theory: It helps management to make decisions and helps the airline to achieve its goals effectively and efficiently and produce effectively.
From the above discussion on organisation, the theory includes classical, scientific management, bureaucratic theory and administrative theory. It has been represented that these theories are highly associated with the management of organizations. It also helps them in underpin the management approaches with the help of laid on proper emphasis on structure. Through these theories, firms can easily make high-quality products, reduce their cost and maintain a better relationship with workers.
2.3 The contribution to management is as follows-
- Scientific Management Theory: In this theory, Taylor observed that employees are not performing the tasks as per their capacity so they contributed by increasing efficiency and maximised the production by achieving objectives. Under scientific management theory, management develops and train the employees by providing efficient knowledge and skills. However, it provides extra wages to the workers to get more production with less cost and maximum efficiency and do less wastage of products in airways (French, 2011).
- Henry Fayol's 14 Principles: Henry Fayol's contribution towards EasyJet plc management as it divides the work and job of employees into the smaller task. Unity of command is followed by the management that means one boss is giving orders to their subordinates. Common interest is followed by the employees of EasyJet rather than the individual. Equity in the organisation is followed by the management that creates loyalty among the employees as well. (Yang and Grunig, 2005).
Leadership means the ability to make decisions and inspire people in an organisation. Leadership styles followed by the Easy Jet and British airways are democratic and transformational style. British airways follow democratic style wherein the leaders make decisions and also take suggestions from the employees. This style of leadership is also called a participative style of leadership. However, on the other hand, EasyJet follows a transformational style of leadership in which leaders enhance the employees’ efficiency by motivating and inspire them. Hence, both British Airways and EasyJet have an effective style of leadership but British airways have more effective leadership as it takes suggestions from employees and makes decisions by keeping in mind the suggestions of employees.
The two different approaches in organisational behaviour are Human Resource Approach and System Approach. British airways use human resource approach in which it focuses on the growth and development of employees. It helps employees in performing better work so that their abilities can get enhanced and this, in turn, can result in a good performance. EasyJet use system approach in which the top authority has the power to manage the whole system of the organization. It has a system with parts such as employees, resources, products which form a combined system. Top managers take all the decisions and this helps in building managers in an effective manner which also increases organisational productivity. Hence, the overall effort maximises the profit (Warmerdam and et. al., 2015).
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The effect of leadership styles on the motivation of managers and staffs performance in British airways and EasyJet plc are as follows during the change:
Participative leadership style: This type of leadership style helps in boosting the morale of employees during the change as they accept the change. When Easy Jet follows a participative leadership style, employees are given an opportunity to take part in the decision making while the final decision making rests with the leader. The employees feel more involved as they make a contribution to the decision-making process.
Transformational leadership style: In this type of leadership the leader gets the goal and delegates smaller tasks to the team. The employees have a certain goal and they are also involved in the task. So they become more acceptable to the change.
Content theory and process theory are linked with motivation. Process theory mainly focuses on the theory of reinforcement, expectancy, equity theory, goal-setting theory. Reinforcement includes positive reinforcement that can add something positive and negative reinforcement means taking back something. Content theory mainly focuses on a person’s needs to explain job satisfaction and rewards system. It identifies the reasons to motivate the people of EasyJet. Such theories are Maslow's need hierarchy in which if an individual the basic need of a hierarchy then it gets motivate towards the achievement of next need an then the process continues (Reychav and Sharkie, 2010).
However, if any level of need does not get satisfied than an employee may get frustrated which may hamper its performance. Further, Theory X and Theory Y is also the best way to motivate the employees and managers so that they feel a part of the airline and not as an individual. This theory also involves employees in decision making.
Motivational theories are highly helpful to the managers in motivating their workforce so that efficient performance can be sustained. By using the theory of Maslow's need hierarchy employee's needs can be identified and by providing drivers with those needs can be satisfied. This will helps the manager of BA to carry out the effective performance through their employees which will ultimately enhance the productivity of a company. Manager can thus enhance the overall personality of an employee so that the skills and abilities of employees can be sustained (Warmerdam and et. al., 2015).
From the above report, it can be concluded that organisational behaviour is the study which is related to individual, group performance and activities within an organization in which management uses different organizational theories, factors and leadership styles to shape the behaviour of employees. The employee behaviour determines and shapes the organizational behaviour. In this report, it has been found that different motivational theories have played a major role in carrying out business activities in an efficient manner.
In this report, it tells about different organizational structures and cultures and the relationship between both of them and along with this the relationship between both the terms will be mentioned in the report.
Report it can be concluded that Organization behaviour is the study which is related to individual, group performance and activities within an organization in which management uses different organizational theories to shape the behaviour of employees.
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