Introduction to Organizational Behavior
Organizational behaviour can be defined as a study of individual and group performance within business enterprise. Further, it analyzes the human behaviour within particular work environment and shows its major impact on performance, job structure, motivation, etc. (Robbins and et.al., 2013). In relation to the above scenario, organization undertaken for the present study is Sainsbury which is the second largest chain of supermarkets in UK.
Further, the operations undertaken by mentioned retail venture is in three divisions i.e. Sainsbury supermarket, convenience stores and banks. This present study will focus on understanding the leadership theories and also the impact of different managerial styles on organization performance. Moreover, this document will evaluate the characteristics of different organization structure and also the importance of organizational culture theory in developing organization effectiveness.
1.1 Evaluation of leadership theories
Leadership theories plays a crucial role as it helps in motivating employees so that they can work with best of the efficiency to achieve individual and organizational goals and objectives. Trait theories can be taken into consideration as it is an approach which studies the human personality. Further, these theories majorly emphasize on measuring the traits which can be considered as habitual pattern for thought, emotion and behaviour.
Great man theory is the 19th century theory as with the help of it, history can be explained with an impact of great men or heroes who influence individuals due to their personal charisma, intelligence, wisdom as well as power. These great men are usually the influencer who motivates individuals to achieve their individual as well as organizational goals and objectives. These theories generally have certain assumptions in the form that leaders are generally born and not made and they also possess certain traits.
Contingency theory is the theory which asserts that there is no best way for leading a company or to make strong decisions. Further, in this theory, their course of action is also dependent on the different internal and external situations exists for business venture (Suppiah and Singh Sandhu, 2011). Further, the role theory is considered as a psychology which comprises of the daily activities which need to be acted out of socially defined categories. Further, each of the social roles comprise of set of rights, duties as well as responsibilities which a person has to face and fulfil.
Transactional leadership can also be taken into consideration within the cited retail venture as this theory emphasize on role of supervision, organization and group performance. Further, it is a leadership style where the leader within the venture focuses on giving feedback to employee's either through rewards or punishments. On the other hand, transformational leadership style is something different where leaders focus on changing the organization culture by implementing brand new ideas. These theories play a significant role for the success of business venture manager within Sainsbury should simply the best in order to improve their organization performance and productivity.
1.2 Impact of managerial styles on organizational effectiveness
Organization’s effectiveness can be described as a concept that how effective an organization is in order to achieve their goals and objectives. Organization’s effective groups are those which directly concern themselves with different key areas. Effectiveness can be in the form of talent management, leadership, development, organization design as well as the structure. Cited firm has to use skilled employees so that they can perform their operations well and achieve their goals and objectives respectively. Leadership plays a crucial role within the business venture and it is more than management as it focuses on motivating employees. Further, different types of leadership styles have been discussed down under:
This style comes into play when close supervision is needed by some employee's who want to improve their efficiency and performance. Moreover, this style is more suitable for new employees who have been recruited by mentioned retail firm (Inesi and et.al., 2011). However, this style has some major negative aspects as well and most of the business venture avoids using this style.
In this style, top management of Sainsbury will play a crucial role as they will focus on changing the policies and structure of the business venture. Further, this is one of the most effective styles eventually which help employees to accept the changes in the best possible manner because the decision which is taken by venture includes the involvement of workers. By this, employees will be motivated and they will be quite dedicated towards the job responsibilities which have given to them.
In this style, top managers give the entire power to their workforce and the intervention of managers is next to zero. Moreover, the employees perform their task and duties with their own talent, skills and knowledge. However, the head of particular department keeps in contact with employee's in order to check their performance and give their relative response when employee is stuck into some situation.
1.3 Motivational theory informing employee motivation
Motivation can be defined as will power to do something and each and every person who is working in organization requires some motivational factor in order to boost their morale (Schnurr and Chan, 2011). Further, Sainsbury can implement different motivational theory at their workplace and some of them are:
Maslow's need hierarchy theory
This theory of Maslow is emphasizing on identifying different needs of employees who are giving their productive service within the retail venture. Further, this theory is divided on different elements and these are:
- Physiological needs are basic requirement for survival and Sainsbury has to satisfy this immensely because they have large number of employees who are giving their services throughout the globe.
- At the second level, employees should be given safety towards the job so that they can give their best output for organization growth. HR manager of different outlets of particular area have to consider the same.
- Social needs are also of great importance as employee is in need of friends or belonging from the office colleagues. Further, friendly environment will motivate them to perform better.
- Esteem needs involves self respect, achievement, recognition and reputation. These needs have higher priorities and top executives should praise the work of employees so that they get higher opportunity in coming time period (How to Evaluate Theories, 2015).
- Self-actualization need are of truth, justice meaning and wisdom within Sainsbury as it can lead into advancement, growth and creativity in the staff of venture
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Herzberg theory of motivation
As per Herzberg theory, there are two motivational factors and these are hygiene factors and motivator factors.
- Hygiene factors are those which give dissatisfaction among employees and it constitutes elements like job security, salary, fringe benefits, etc. Moreover, employees will be demotivated if any of the factors is absent and cited firm provide these elements in order to retain their potential employee's (Butler and Rose, 2011).
- Motivator gives positive satisfaction to employees within Sainsbury like challenging work, recognition, opportunity, etc. Employees who belong to this category do not much focus on financial incentives as they get more satisfied when their position or designation gets extended.
Alderfer developed Maslow's theory by categorizing hierarchy into ERG theory. ERG stands for Existence, Relatedness and growth. Existence focuses on providing the basic material and it comprises of physiological and safety needs. The second group in this hierarchy consists of relatedness and it includes desire which people have in order to maintain interpersonal relationship with employees within organization. At last, the growth element focuses on intrinsic desire for personal development.
1.4 Theories relating to work relationships and interaction
Theories relating to the work relationship and interactions need to deal with the organizational culture on value chain and different strategies which the Sainsbury has opted. Further, the organizational structure of cited retail venture will show the behaviour of organization towards their workforce and also the relationship which exists between the superior and subordinates.
Moreover, equity theory emphasizes on the fact that the distribution of resources is quite fair to both the relational parties. This theory is measured by comparing the ratio of contributors as well as benefits given to each person. This theory suggests that the fairness has to be maintained within enterprise as well as with the employees who are working in it. Apart from that, Vroom’s Expectancy theory focuses on the relationship between internal needs and the efforts which are usually implemented to fulfil the same. Further, Expectancy theory is the belief which eventually increases the efforts which leads to improve the performance.
Further, in this, behavioural theory has also come into play as this theory focuses on understanding the behaviour of individuals who are giving their productive services within the venture. Organization need to fulfil the needs and demands of their potentially skilled and multi-talented employee's as it will boost their morale and with that they will be able to work with best of their efficiency to achieve the organizational goals and objectives (Nair, 2010). Working relationship will also make effective bond between superior and subordinates and with this cited retail firm will also be able to increase their profitability and revenue.
2.1 Impact of organizational structure and culture on company's effectiveness
The above mentioned concept is very essential for an organization to operate smoothly in the market. It helps to create positive environment for employees to execute different business operations effectively. Their impact can be better understood by following parameters:
When an organization has set standards to plan certain strategies in its favor it creates effective decision making process. Sainsbury adopts formal organizational structure along with role culture that act as strength of organization (Walsham, 2012). Decision making process become faster and quicker as every individual is aware about his/ her own roles and responsibilities.
Another impact of mentioned culture and structure in Sainsbury is it builds team spirit among different professional working for collective goals. It develops sense of trust and confidence among individuals to communicate with their respective colleague or subordinate at the time of emergency. Interactive communication results in better and smoother achievement of goals.
2.2 Approaches to organization decision making
There exist different approaches which Sainsbury can consider in order to have stable functioning. Some of them are:
Contingency theory approach
This theory comprises part of management theory and it emphasizes on motivating employees. With the implementation of this theory, employees will feel motivated and they will work with best of their efficiency to achieve their objectives (Du Plessis and Barkhuizen, 2012). Further, this approach was proposed by Christopher Bailey and Sainsbury can implement this because organization has large strength of employees who are giving their productive services across different nations.
Decision making approach
Sainsbury can undertake this approach as it will help them to make effective policies and decisions for business venture. Further, employees are their valuable assets and venture need to take effective decisions in order to increase their brand image and turnover. Moreover, this decision making approach is also appropriate for solving disputes which exist in different departments.
System approach is an approach where each and every department is inter-related and inter- dependent. Sainsbury can emphasize on this approach as they have different departments and their functioning can be left independent on department head (Dobrow, 2013).
The qualitative approach to research is generally focused on understanding the phenomenon to have closer perspective. Moreover, this approach tends to approximate phenomena by taking survey from large number of individuals with questionnaire as well as survey method.
By considering all the approaches, decision making has the best advantage as employees will be considered as a part of the family and they will contribute their valuable suggestions in the growth and development of business enterprise. Further, with the help of this, their morale will be boosted up and they will be working with the highest level of efficiency to achieve their goals and objectives.
2.3 Management approaches to risk and uncertainty in decision making
Risk is one of the uncertain factors which can arise at any moment and anytime within the business enterprise. Cited business venture has to take effective decisions at the time of risk arise as this will not influence their performance up to that extent. Apart from it, top executives of Sainsbury should focus on conducting risk management planning as this will help them to take quick and effective decisions and won't impact their profits as well. Moreover, cited firm can also implement risk management planning in order to reduce the risk which exists in the mentioned retail organization. Further, they will also be able to reduce the cost of their operations which will help them in generating good amount of revenue in the coming time period. Different stakeholders have their own importance within business venture and cited firm has to fulfil the needs and demands of all their stakeholders (Hafenbrack, Kinias and Barsade, 2014). If not so, loosing potential stakeholders will arise as a risk and will pamper organization performance and growth.
2.4 Effectiveness of organizational decisions
Organizational decisions plays a crucial role as cited retail venture has to take effective decision for organization growth and stability. Employee’s contribution plays a crucial role and management should have employees participation in the decision making as it will boost their morale and with that they will be able to work with best of their efficiency and capabilities. Further, different decisions need to be taken for stakeholders as well as they are the major soul for the business venture (Adeniji, 2011). Further, Sainsbury being a retail venture has varied stakeholders and their satisfaction is the major role which top managers have to consider.
Moreover, their decision plays a crucial role in the success of enterprise and it will also give them competitive edge over the rival competitors who are working within same industry. Major decision has to be taken in order to satisfy their employees because they are their real assets. Satisfaction of customers is also necessary as with this, they will be able to make large base of their loyal customers.Further, cited firms also need to compare their decisions with the past results as with that they will be able to identify that whether they have performed well or not. Apart from it, in order to give stiff competition to their major competitors, Sainsbury can see their plans and policies and modify them for better results and growth.
From the above report, it is depicted that Sainsbury is a global retail business venture who has effective operations throughout the globe. This document contains motivational theories of Maslow's and Herzberg which organization can implement in order to improve their employees performance. This document is also evident of different approaches which Sainsbury can undertake for making better effective decisions for the organization’s growth.
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