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Sample Report On
ORGANIZATIONAL BEHAVIOR

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TABLE OF CONTENTS
INTRODUCTION ...........................................................................................................................4
ACTIVITY 1....................................................................................................................................4
A. Evaluation of leadership theories............................................................................................4
B. Impact of managerial styles on organizational effectiveness..................................................5
C. Motivational theory can inform employee motivation............................................................5
D. Theories relating to work relationships and interaction..........................................................7
ACTIVITY 2 ...................................................................................................................................8
Analysis of the characteristics of different organizational structures ..........................................8
Importance of organizational culture theory in developing organizational effectiveness ...........9
Organizations can facilitate innovation and creativity.................................................................9
Importance of learning in organizations ....................................................................................10
Effectiveness of team working...................................................................................................11
Effective management of change in organizations ....................................................................11
ACTIVITY 3..................................................................................................................................12
Culture and structure of the TESCO, including an evaluation of how they impact on its
effectiveness...............................................................................................................................12
ACTIVITY 4..................................................................................................................................13
Approaches to organizational decision making .........................................................................13
Management approaches to risk and uncertainty in decision making .......................................13
Effectiveness of organizational decisions in Tesco....................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES ..............................................................................................................................16

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ILLUSTRATION INDEX
Illustration 1: Maslow's hierarchy of needs .....................................................................................6
Illustration 2: Herzberg's motivational theory .................................................................................7
Illustration 3: Organizational structure ..........................................................................................13

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INTRODUCTION
Organizational behavior plays an important role in which individuals and groups can
interact within entity. This behavior creates a healthy working environment in company that can
be positive or negative (Quick, 2007). An important goal of organizational behavior is to
improve the effectiveness of company and the extent to which it is productive and satisfies the
demand of its customers.
The present report focuses on the brief evaluation of leadership theories. However, the
report also focuses on the impact of managerial styles on organization’s running. Various
organizational culture and structural theories are discussed in the report. The study provides an
evaluation of effectiveness of team working along with discussing the approaches of decision
making and the process which can be used to cope up with the risk and uncertainty.
ACTIVITY 1
A. Evaluation of leadership theories
Leadership is a process that influence group of people towards the realization of goals.
Theories of leadership are as follows:
Autocratic leadership Styles: This style clearly defines the division between leaders and
workers of organizations. Leader keeps strict and close control on employees to ensure that
whether policies and procedures are duly followed or not. Under this leadership style leader and
followers have no communication and interaction as workers just follow the instructions of
leader (Barling, Clegg and Cooper, 2008). The autocratic leadership style allows the managers to
make decisions alone without the interruption of other workers. This leadership style benefits the
employees who require close supervision. However, it has been evaluated that although the given
type of leadership style help manager in making the quick decision about its enterprise but it
causes direct impact upon the motivation level of employees. Due to this, high quality of services
will not be being delivered by the firm.

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Democratic leadership style: Under this, leader is sharing the decision making power
with employees but the final decision is only in the hands of leader. It motivates the employees
because they make contribution to the decision making process (Jackson and Parry, 2011). This
style helps the organization when there is a short time to take the decisions. Democratic styles
help team members to have high job satisfaction and productivity. But, the given style will be
proved as ineffective when manager have to make some quick decision. It is due to the fact in the
circumstance when manager have to make some major decision in faster way at that time it will
become difficult for it with regard to gather the views and opinions of other workers in an
effective way.
Laissez-faire leadership style: This style is considered as the least effective option. Under
this style, all the rights and power to make decisions in the organization are fully given to the
workers. Leaders do not provide any direction to the workers or followers which many times,
lead to reduced production and increasing costs (Huse, 2008). This style can only be used when
there are highly skilled, experienced and educated followers. However, it is evaluated that
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effectiveness of given style will be occur when firm possess the team of skilled and competent
employees upon which the manager of firm can rely.
B. Impact of managerial styles on organizational effectiveness
Various managerial styles which affect the organizational growth are discussed below:
Affiliative Style: Its primary objective is to create compatibility among the employees and
managers. Under this style, they focus on people at first and secondly on task. In other words,
they focus on making good relations among employees and making them happy. This type of
style is effective when there are conflicts in the organization. However, it has been evaluated that
the effectiveness of the organization also depends upon the given aspect that how quickly it can
achieve the goals and objectives of firm. However, by using the given approach the goals and
objectives of firm cannot be met in a faster way.
Pacesetting style: Under this style, the objective is to finish the tasks and to set a high
standard of excellence (Lee, 2001). Completing the task on time is the objective of Pacesetting
style. Managers perform various tasks by themselves and they expect followers to follow their
steps. This style is effective when the employees are highly motivated and only a little direction
is required. By using the given style objective of firm can be met within the limited time frame.
But, the manager that comply with the given type of style do not give feedback to its employees.
Due to this, the effectiveness of the performance as being given by workers cannot be enhanced.
Coaching style: This style focuses on the development of employees so that they will
help in the future. It helps and encourages employees to develop their strengths and the ways in
which they can improve their performance (Johnson and Steinman, 2009). Coaching is given to
the employees who are not performing well or if there is a change in the way of doing things.
But, use of given form of style by leader will lead to invest lots of managers crucial time and
because of it effectiveness of the firm will get hampered.

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C. Motivational theory can inform employee motivation
Motivational theories which can inform employee motivation in an organization are:
Maslow’s Hierarchy of Needs: This motivational theory drives employee motivation to
satisfy these needs. Satisfying the need of customers is the main goal for an employee.
 Physiological needs: These are the basic needs like food, shelter and clothes. These needs
have to be fulfilled first. These needs are thought to be the most important needs for an
employee.
 Safety needs: They stand on the second level in Maslow’s hierarchy of needs which
includes security like personal, money, health, accidents or illness of employees (Huse,
2008). These needs arise when the physiological needs are fulfilled.
 Love and belongings: These include deals with family, friends or any other relations.
When the first two needs are fulfilled then love and belongings arises in employees.
Illustration 1: Maslow's hierarchy of needs
(Source: Maslow’s Hierarchy of Needs – How to Motivate Your Staff,
2010)

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 Esteem: These needs are defined as the need for status, recognition, attention or strength.
Employee often engages in organization so that they may have a unique recognition (Lee,
2001).
 Self-actualization: This is the highest level of Maslow’s hierarchy of needs. Self-
actualizing people are self-aware and concerned with the personal growth. They are less
concerned with the opinions of others and interested in fulfilling their potential (Maslow’s
Hierarchy of Needs – How to Motivate Your Staff, 2010).
Herzberg's motivational theory: This theory says that there are certain factors that causes
job satisfaction as well as causes job dissatisfaction among the employees.
This theory contains two factors which are hygiene and motivation factors. These two
factors affect the employees in a way to make them satisfied or dissatisfied. Job satisfaction
factors may include achievement, recognition, growth etc. Whereas job dissatisfaction factors
Illustration 2: Herzberg's motivational theory
Source (Collins, 2015)

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include supervision, policy, salary, work conditions, rules and regulations etc. (Quick, 2007).
Hygiene factors are all about making an employee feel comfortable, secure and happy.
D. Theories relating to work relationships and interaction
Some theories which relate to work relationships and interaction are discussed below:
Uncertainty Reductions Theory: The uncertainty reductions theory is based on the
approach which says that individuals should try to reduce the uncertainty about others by
collecting information that is linked with them and it can be done by changing their perception as
well. Knowing about someone can help an individual to judge the behavior of him easily
(Jackson and Parry, 2011). This theory says that two strangers go through several stages in order
to form a strong bond. The stages include:
 The first stage is that in which they get to know about each other’s family, education and
background.
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 The second stage involves sharing attitudes and beliefs and both of them feel comfortable
while talking (People at work, 2012).
 The last stage is the one where the two individuals decide either to move ahead or else go
back to their ways.
Social exchange theory: This theory states that individuals continuously measure whether
the relationship is giving them more than or at least as much as they are putting into it. Since this
is a relational theory, so costs can be concluded by having poor communication or sacrificing the
interests to please the other individuals (Nelson and Cooper, 2007).
ACTIVITY 2
Analysis of the characteristics of different organizational structures
Every organization has a goal and its structure is one of the key units that affect the goal
of enterprise (Johnson and Steinman, 2009). Organizational structure is designed in such a
manner that serves as an instrument to execute the social goal.
Characteristics of different types of organization structures are:-
Line organizational structure: It is the oldest and simplest form of structure. Under this,
the line of authority flows vertically from top to bottom. The chief executive holds all the
responsibilities and delegates it to the subordinates (Wilson, 2013). Each subordinate is
answerable to only its superior. A proper hierarchy is maintained. Its main advantage is that it
promotes fast decision making and it is very easy to understand.
Department line organization: All the activities of organization are divided into several
departments. This form is very simple to understand and to implement also. Each and every
person knows about the senior to whom they are responsible. Under this form, the adjustments
and changes can be done easily.

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Functional organizational structure: Under this, all the activities which are performing
the same functions are grouped together such as marketing, finance, production etc. Division of
labor is done properly so that proper production would be done.
Line and staff organization structure: This system combines advantage of both line as
well as functional organization structure. Under this, the quality of decision is very good as it is
said to be a combination than chances of conflicts between line as well as functional structure
arises.
Importance of organizational culture theory in developing organizational effectiveness
Organizational culture refers to the beliefs, principles and values that the individuals of
an organization share. Culture is a determining factor in the success of organization. Ways in
which culture theory helps in developing organizational effectiveness are:
Involvement: Effective organizations empower their people, build teams and develop
human capability at all levels (Huse, 2008). Executives, managers and employees are committed
to their work. People at all levels feel that their work is directly connected to the goals of
enterprise. However, before carrying out the involvement of employees in the decision making
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process of enterprise it is being required by the managers that they must check their skills and
competencies. This is because, if the information with respect to the given factor will not be
gathered at that time effectiveness of the firm will be impacted in a negative way.
Consistency: Organizations also tend to be effective because they have a healthy culture
that is highly consistent, well coordinated and well integrated that helps employees to work with
higher productivity. This type of coordination helps the organization to achieve its goals
effectively and efficiently. However, for the firm it became difficult to maintain consistency
within firm if some changes will occur in the external environment. This is because, in the given
circumstance the corporation will have to change its working pattern as per the factors which are
prevailing in the external environment.
Adaptability: Organizations that are well integrated are often the most difficult ones to
change. Internal integration and external adaptation both are important (Yoruk and Raosevis,
2002). Adaptable organizations are motivated by their customers, take risks and learn from their
mistakes along with having the capability and experience at creating change.
Organizations can facilitate innovation and creativity:
Effective managers facilitate and promote the innovation in an organization. Innovation is
a necessity for a company to achieve success in the ever-growing competitive environment
(Suresh and Venkatammal, 2010). The different roles of a manager can be grouped into five key
management functions which are:
 Planning: It refers to deciding the objectives or goals of organization. Managers need to
build proper and appropriate goals so that employees can be focused in one direction and
would know about their target. Planning plays a very important role in an organization.
 Organizing: It means putting plans into operation and organizing resources of the
organization such as labor force, capital and money so that production can take place

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easily. Proper organizing of resources helps the organization to achieve goals effectively
and efficiently.
 Motivating: It means meeting the social and basic needs of employees so that they would
feel comfortable. The managers use both financial and non-financial types of incentives
which help employees to achieve the objectives of organization (Johnson, and Steinman,
2009). Motivation helps the employees to generate more interest. Monetary incentives
motivate employees more as compared to non-financial incentives.
 Controlling: Managers must measure and evaluate the performance to guarantee that it
would meet the requirement of plan (Dick and et.al., 2006). If the goals have not been
achieved then corrective measures have to be taken. When an employee is not performing
well then the managers need to provide him with a proper feedback which improves his
performance in the organization.
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 Coordinating: Bringing all the groups in organization together is coordinating. This helps
the employees to remember that they are working for the common goals. Coordinating
helps the employees when they are not able to achieve the goals properly. Besides this,
there are some ways identified which can be used by manager of firm with an aim to
facilitate innovation and creativity. In this regard, it is suggested to the manager that it
must organize different type of training and development program for its employees.
Through this way, significant improvement in the innovative skills of workers can be
carried out. In addition to this, creativity in employees can also be facilitated by giving
them an environment which provides them an opportunity with regard to freely present
their views and opinions in front of other workers in an effectual manner.
Importance of learning in organizations
Learning is a necessary process which helps the organization to achieve its objectives and
improves its performance. It helps employees to expand the knowledge base but many employers
find the development opportunities expensive (Collins, 2015). Despite of potential drawbacks,
learning and development provides both the organization and the employees with benefits that
make the cost and time a worthwhile investment.
Learning helps employees to overcome with their weaknesses. It helps to improve the
performance of workforce. Learning can be gained by having proper training and development
sessions. Training can be provided on “on the job” and “off the job” (Lok and Crawford, 2004).
On the job training is considered to be more relevant while off the job training is done by the
professional trainers.
Learning is the most important factor for an organization. As there is a rapid change in
the technology, so learning helps employees to adopt the new technology and deal with it in a
perfect manner. If the organization is keen to improve the productivity, efficiency and
profitability then they would have to look at more diverse learning and development activities

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which will help them to maximize their potential. Learning needs are defined at three levels
which are of organization, groups and individuals.
Effectiveness of team working
Teamwork has an impressive effect on the organizational performance. An effective team
can help the organization to achieve fabulous results and the resources present in company
provide the base in conducting operations which enhances the business efficiency. An effective
team is able to gather the information from each member and such data can be easily used for
conducting crucial operations of the firm. Importance of team work is:
 Teamwork enables you to accomplish the tasks faster and more efficiently than tackling
the projects individually.
 Teamwork is important in an organization because it provides employees with an
opportunity to create bond with each other which will improve their relations among
themselves (Nelson and Cooper, 2007).
 Work groups and teams develop systems that allow them to complete the tasks efficiently
and quickly.
 Working in teams allows the staff members to feel comfortable in giving ideas and
suggestions.
 Teams help each other to improve the performance and work together to improve their
professional development.
Besides this, there are some disadvantages associated with the team working type of
approach which is being practiced by many firms. Lack of recognition of work which is being
performed by individual employees is being regarded as the major disadvantage of team
working. This leads to reduce the satisfaction level among workers and due to this direct impact
will be seen upon the sales and profits of enterprise. Furthermore, difference in the working

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method of different individual is being regarded as another limitation of team working. This is
because, the given thing will lead to develop conflicting situation between team members and
because of this goal of team will be hampered.
Effective management of change in organization
Change management plays an important role in the organization since the task of
managing change in the firm is not an easy one. Managing the change refers to making changes
in a planned and systematic manner. Change management provides a way to evaluate the
challenges and respond to these efficiently. It allows the organization to measure overall impact
of the change on its performance. Change management clarifies the roles and responsibilities of
all those people who are participating in the change effort (Sadri and Lees, 2001). Employees
who have freely adopted the change management without any resistance are allotted with
additional responsibility of guiding and supporting others. This will help the firm to run properly.
A good change management system increases the employee’s morale and there will be reduction
in the recruitment and holding costs.
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ACTIVITY 3
Culture and structure of TESCO including the evaluation of the way in which they affect its
effectiveness
Illustration 3: Organizational structure
(Source: People at work, 2012)
Tesco has the potential to gain competitive advantage over its strong competitors and also
have strength to attract the customers (Yoruk and Raosevis, 2002). Tesco’s organizational
structure is simple but they have huge labor force. The firm is using advanced technology that
helps company to minimize the human errors. Tesco's organizational culture represents the
values, believes and principles of members. Organizational culture affects the way in which
people and groups interact with each other and with clients and others.

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The culture of Tesco is market oriented. This means that throughout the operations of
Tesco, it ensures that whether respect, integrity and responsibility are maintained or not. Tesco
believes that they should treat their customers in the way that they would be happy when treated.
Besides, Tesco believes that customers should be approaches in a right manner since they are the
key to the success of business as it considers customers as the king of market.
The culture and structure of Tesco helps company to achieve the customer satisfaction
effectively and efficiently. All the employees of organization need to follow the structure and
culture properly. Culture and structure affects the effectiveness of Tesco by helping the
organization to achieve its goals and objectives.
ACTIVITY 4
Approaches to organizational decision making
Three decision making approaches to be considered are as follows:
 Rational approach: It is represented as step by step decision making. This approach
defines the success factors, search information and logically looks at the way in which
each alternative meets each success factor (Barling, Clegg and Cooper, 2008). Decision
making is planned. With this approach, outcomes of the final choice are taken into
consideration.
 Intuitive Decision Making Approach: It relies on emotions and feelings which
characterizes this approach. Intuition decision making approach means non-sequential
information-processing mode (Lok and Crawford, 2004). It says that people in a good
mood gravitate towards intuitive styles while people in a bad mood tend to become more
deliberative.

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 Random or Luck Approach: In this approach, a decision is made on impulse without
wasting even a single second on thinking (Dick and et.al., 2006). This approach helps the
organization when they have to take fast decisions in future.
Management approaches to risk and uncertainty in decision making
Uncertainty is a state of having limited knowledge of current conditions or future
outcomes in an organization (Sadri and Lees, 2001). Managers often deal with uncertainty in
their work so as to minimize the risk. They must develop the skills and judgment which are
necessary for reducing the uncertainty that is associated with the business. Managing uncertainty
in decision-making depends on identifying, quantifying and analyzing the factors that causes
uncertainty in the organization.
 Firstly, firm has to find out the type of uncertainty in the organization. There are mainly
five types of risks i.e. strategic, financial, operational and legal and other risks. Then to
find out which type of risk is creating issues in the organization.
 When the risk is identified then managers need to find out the cost which is involved in
the risk (Lok and Crawford, 2004). Mainly financial risks has to be calculated properly so
that there will be less chances of human errors.
 Lastly, when the risk is identified and quantified then it needs to be managed properly, so
that it will be easy for the organization to overcome with the risk.
Effectiveness of organizational decisions in Tesco
Evaluation of approach as follows:
The rational approach to decisions is based on scientifically obtained data that reduces
the chances of errors, damage, assumptions and all major causes for poor judgments. Such an
information and knowledge based approach promotes consistent and high quality decisions and

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reduces the risk and uncertainties that are associated with the decisions. The rational method
helps the decision-making process with discipline, consistency and logic (Collins, 2015).
The rational decision making process requires careful consideration data which takes
time. Now a days, changes are taking place at a very fast-pace and the opportunity of getting
success is low that is the reason because of which efficiency of rational model is declining
(Johnson and Steinman, 2009). This model is mostly in making long-term policy and decisions
rather than short-term operational judgments. This is one of the effective method through which
managers at Tesco are able to take effective decisions by judging different aspects. Here, effects
of decisions are also evaluated that certainly helps in taking most effectual and corrective
actions. Based on it, company is able to attain its objectives in desired manner. On the other
hand, there are certain shortcomings of rational based approach of decision making. One, it is
very time consuming process as decision maker need to take decision by reviewing each and
every aspect of the scenario. Second, it requires taking input from different individuals and group
based decision need to be taken which is not feasible at the time when requires taking quick
decisions.
CONCLUSION
From the above report, it can be concluded that the present report focuses on the way in
which organizational behavior helps the organization to get success in the market with
sustainability. Along with that, it has been assessed that by leadership theories, organization can
learn the way in which a leader can react towards its followers. Under this report, importance of
culture is discussed along with the way in which it affects the efficiency of employees. Further,
report has discussed the importance of learning and development as well as importance of
training in increasing the employee’s efficiency.

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REFERENCES
Books
Barling, J., Clegg, S. R. and Cooper, C. L., 2008. The SAGE Handbook of Organizational
Behavior: Volume Two: Macro Approaches. Sage.
Huse, M., 2008. The value creating board: Corporate governance and organizational behaviour.
Routledge.
Jackson, B. and Parry, K., 2011. A very short fairly interesting and reasonably cheap book about
studying leadership. Sage.
Nelson, D. and Cooper, C. L., 2007. Positive organizational behavior. Sage.
Quick, J. C., 2007. Managing organizational behaviour in Canada. Thomson Nelson.
Wilson, F. M., 2013. Organizational behaviour and work: a critical introduction. Oxford
University Press.
Journals
Johnson, R. E. and Steinman, L., 2009. Use of implicit measures for organizational research: An
empirical example. Canadian Journal of Behavioural Science/Revue canadienne des
sciences du comportement.41(4). pp. 202.
Lee, H. J., 2001. Willingness and capacity: the determinants of prosocial organizational
behaviour among nurses in the UK. International Journal of Human Resource
Management. 12(6). pp. 1029-1048.
Lok, P. and Crawford, J., 2004. The effect of organisational culture and leadership style on job
satisfaction and organisational commitment: A cross-national comparison. Journal of
management development. 23(4). pp. 321-338.
Luthans, F. and et.al., 2008. More evidence on the value of Chinese workers' psychological
capital: A potentially unlimited competitive resource?. The International Journal of
Human Resource Management. 19(5). pp. 818-827.
Murphy, G., Athanasou, J. and King, N., 2002. Job satisfaction and organizational citizenship
behaviour: A study of Australian human-service professionals. Journal of Managerial
Psychology. 17(4). pp. 287-297.
Sadri, G. and Lees, B., 2001. Developing corporate culture as a competitive advantage. Journal
of Management Development. 20(10). pp. 853-859.
Suresh, S. and Venkatammal, P., 2010. Antecedents of organizational citizenship behaviour.
Journal of the Indian academy of applied psychology. 36(2). pp. 276-286.

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Dick, V. and et.al., 2006. Identity and the extra mile: Relationships between organizational
identification and organizational citizenship behaviour. British Journal of Management,
17(4). pp. 283-301.
Online
Collins, K., 2015. Motivating Employees. [Online]. Available through:
<http://catalog.flatworldknowledge.com/bookhub/7?e=collins-ch07_s03>. [Accessed on
17th
August 2015].
Maslow’s Hierarchy of Needs – How to Motivate Your Staff. 2010. [Online]. Available through:
<http://www.callofthewild.co.uk/library/theory/maslows-hierarchy-of-needs-how-to-
motivate-your-staff/>. [Accessed on17th
August 2015].
People at work. 2012. [Online]. Available through:
<http://www.slideshare.net/thejuniorcert/people-at-work-employers-empoyees>.
[Accessed on17th
August 2015].
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