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    Organizational Behaviour


    Organisational behaviour refers to the study conducted in order to gain an insight into the behavioural characteristics of individuals and groups that are a part of the organisation. This process assists the human resource department of a company to formulate a positive and healthy environment across organisational premises so as to motivate employees to deliver performance to the best of their potential (Avey, Palanski and Walumbwa, 2011). The following report is based on  A M (Holdings) Limited which is an entity that is engaged in supply of laminated carton board as well as confectionery foil within United Kingdom. This assignment will gain an insight into the influence of culture, politics and power upon employees' performance and productivity. Also, content and process motivational theories will describe the way in which motivation helps to boost the performance of employees and team. Lastly, concepts and philosophies of organisational behaviour are discussed on the basis of different situations which occur at workplace.

    LO 1

    P1. Impact of organisation's culture, politics and power on individual, team behaviour and performance

    Organisational behaviour determines the manner in which individuals and team interact within an enterprise. The prime responsibility of HR department in an organisation is to allot the roles and duties to staff as per their educational and professional background as well as their skills to deliver performance. In this regard, HR manager of A M (Holdings) Limited ensures that a positive working atmosphere is created which enables individuals and teams to deliver performance without any possibility of conflicts. It is ascertained that the behaviour and performance of individuals and teams are affected by organisational power, culture and politics in a significant manner (Boje, Burnes and Hassard, 2011) . This is discussed in context of A M (Holdings) Limited as follows:-


    This can be defined as the composition of values, beliefs, traditions, customs and practices prevailing within an organisation . With regards to A M (Holdings) Limited, the HR manager of this entity is undertaking steps to build a positive and optimistic work culture.  When the organisational culture is positive, it tends to affect the behavioural characteristics of an individuals strongly and persuade them to deliver optimum performance which assists in achievement of organisational objectives within a timely manner. Further, once staff is motivated to perform well, it tends to enhance the overall team performance and ensures maximum output out of group efforts. There are four types of culture that can be found within an enterprise and these are defined below along with their impact upon individuals and teams:-

    Role culture: 

    This culture can be said to be a resemblance of functional structure where manager of the company allots roles and responsibilities to subordinates as per their skills, knowledge and competence (Laforet, 2011). In this regard, when manager of AM (Holdings) implements this culture, this tends to motivate the employees as they are assigned tasks as per their expertise. Thus they perform by fully utilising their skills and experience and contribute towards the achievement of organisational goals. Also, role culture facilitates coordination and cooperation amidst the teams as the duties and accountability of each individual is clearly specified.

    Task culture:

     Within this culture, a number of teams are created which assist in resolving conflicts within the organisational premises. With regards to AM (Holdings) Limited, manager of this entity focus upon formulation of teams as approvalper the issues determined in the company. When enterprise is willing to undertake steps that assists in resolution of personal or professional conflicts among employees, this tends to rise their motivational level and they deliver a better performance so as  to contribute towards achievement of organisational goals.

    Person culture:

    In this organisational culture, manages mainly focus upon enhancing the skills and competence of employees of company. With regards to AM (Holdings) Limited, this entity can carry out a number of training sessions for the staff so as to equip them with required knowledge. This facilitates motivation among employees and encourage them to deliver adequate and appropriate performance as per the requirements of company. This also foster effective team output owing to collaborative efforts from all .

    Power culture:

    This culture emphasize upon limiting the access to decision making power in the hands of few individuals. This facilitates quick and effective decision making across the organisation. This culture when implemented with AM Holdings Ltd. tends to have an adverse effect as this hampers the creativity, potential, skills and experience of employees that may assist in taking good decisions. This culture at times have a negative impact upon the behaviour and performance of individuals as well as teams.

    It has been observed that management of AM Holdings make use of role culture in order to facilitate coordination and cooperation among employees which benefits them in achieving the desired organisational goals by keeping the employees motivated.


    It refers to the interaction and processes that take place within an organisation with the use of power and authority (Colquitt and et. al., 2011). This may affect individuals or teams in a positive or negative manner. In context of AM Holdings, positive politics in the form of healthy working environment, leaves, flexible working timings and provision of authority to individual to participate in decision making motivate employees to deliver effective performance towards achievement of team and organisational objectives. Negative politics in the form of demotion, discrimination, inequality etc. have an adverse effect upon employees and negatively affects the performance of staff and team.

    Within AM Holdings, it is observed that management is involved in positive politics so as to foster motivation among employees leading to accomplishment of team and company goals.


    This refers to the authority that an individual possesses within an organisation to be able to persuade other individuals who are functioning within the entity (Choi, 2011). With reference to AM Holdings, top management possesses the authority as well as power to take decisions on the behalf of company. There are two types of powers that can be used by leaders in an organisation, these are described below:-

    Reward power:

    Here, a company strives to enhance the performance of individuals and align their behaviour towards organisational objectives by way of using rewards and recognitions. Within AM Holdings, use of this power will motivate personnel to improve their efficiency and deliver desirable performance as per the set objectives. This is a positive power and may include tools such as incentives, recognition, awards, bonus etc.

    Coercive power:

    This form of power reflects that the top management devise and develop the policies and procedures within an organisation which are essential for everyone to comply with (Bolino and et. al., 2013). In this regard, by making use of this power, managers of AM Holdings tend to set targets for the packaging team and ensure that these are achieved within the stipulated time. This is a negative power as it makes use of punishments and penalties for making employees do their work effectively.

    It has been analysed that AM Holdings make use of reward power for encouraging and motivating employees to give their best performance by utilising their full potential and competence.

    LO 2

    P2. Various theories of motivation

    In today's dynamic and competitive world, every enterprise aims at enhancing the productivity of employees so as to ensure achievement of organisation goals within the stipulated time. It is essential for the HR department to analyse and evaluate the needs and requirements of individuals which influence their behaviour as well as organisational performance so as to motivate them for delivering an effective performance. In this regard, HR manager of AM Holdings make use of motivational theories to encourage employees within the company to perform well as per the formulated targets and objectives. These assist in enhancing the existing level of efficiency of employees (Evaluation and Explanation of Theories on Motivation, 2018). Some of these motivational theories used by AM Holdings are described below:-

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    Content theory

    This theory is largely based upon human conduct and their behavioural characteristics and aim at fulfilling their individual needs so as to motivate them. In this regard, the content theory used by AM Holdings is given below:-

    Herzberg's Two Factor Theory

    This theory proposed that every enterprise consists of some factors which tend to motivate the individuals to perform to the full of their potential and competence. These factors are referred to as motivational factors. Besides this, there are also some aspects or factors which may cause dissatisfaction to the needs and requirements of employees and negatively affect their performances across organisational premises. Such factors are referred to as hygiene factors. Both these factors are briefly discussed below with regards to AM Holdings:-

    (Source: Herzberg's two factor theory of motivation, 2018)

    Hygiene factors:

    These are those factors which consists of physiological needs of personnel that are essential to be met by the enterprise so as to motivate them for carrying out the work effectively. With reference to A.M (Holdings) Limited, the HR manager of company motivates the workers by meeting these needs so as to undertake steps for improving their organisational performance to facilitate the growth of business. Such physiological needs of individuals are described below:-


    It is imperative that the HR department of A.M (Holdings) Limited give individuals access to appropriate and adequate salary and other compensation to employees so as to easily meet their sociological needs. In addition to this, the pay scale of each employee on same level or in same department or should be equivalent (Huhtala and et. al., 2013). This tends to motivate the employees to perform their roles and responsibilities in an efficient manner.

    Working environment: 

    The HR manager of  AM (Holdings) Limited emphasizes upon provision of a healthy and positive working environment for the employees. This may include safety, cleanliness, hygiene and other essential basic facilities. Apart from this, HR team of company also tend to focus upon making use of latest tools and techniques so as to ease the work burden of employees. This enhances the individual satisfaction level of staff of company.

    Interpersonal relation:

     The employees working within an organisation should work in collaborative manner by exercising coordination and cooperation at all the times. Within A.M (Holdings) Limited, the HR manager of enterprise conducts a number of activities and processes which assists in developing team building and collaborative working capabilities. This helps in fostering effective interpersonal relations among employees and creates a sense of cohesion among the members to enable efficient organisational performance.

    Motivational factors:

    These are the factors that assist in encouraging the employees to deliver an effective perform while remaining aligned with the organisational goals and objectives. This facilitates effective team performance with desirable as well as valuable outcomes. In context of A.M (Holdings) Limited, the HR department make use of such factors to encourage the staff. These factors are briefly described as follows:-


    The Human Resource manager of  A.M (Holdings) Limited delegate such roles and responsibilities of work among the staff which they find to be of secondary importance. Employees tend to perform their work with much more proficiency when they are assigned the  responsibility of work to be as their own (Glendon, Clarke and McKenna, 2016).  This tends to  motivate the individuals as well as teams within the organisation to carry out their tasks in an effective manner.

    Rewards and recognition:

    Here, the HR manager of A.M (Holdings) Limited monitor as well as evaluate the performance of staff on a frequent basis so as to provide rewards to those employees who deliver performance to the full of their potential and capacity. Company has the option of monetary and/or non-monetary rewards. Monetary rewards include bonus, incentives etc. while non-monetary initiatives comprise of tools such as certification, awards, recognition etc. This tends to motivate the employees in an optimum manner.

    Process  theory

    This theory emphasizes upon gaining an insight into the manner in which an organisation evolves and develops.

    Vroom's Expectancy Theory

    This theory focuses upon process as well as content of motivation by facilitating integration of needs reinforcement and also equity (Fagbohungbe, Akinbode and Ayodeji, 2012). This theory provides assistance to leaders and managers to motivate the workforce by ascertaining the three major factors associated with appraisals, namely, Expectancy, Instrumentality and Valence. The HR manager of A.M (Holdings) Limited determine the performance of employees on the basis of these 3 factors and reward them by providing them with different appraisals.


    (Source: Vroom's expectancy theory of motivation, 2017)


    • Expectancy- This element indicates that in order to obtain desired results, an individual has to work hard and make use of their skills and potential in business context. By way of this technique, manager of A M Holdings Limited motivate personnel to deliver effective by luring them by way of rewards and recognitions.
    • Instrumentality-This process assists general opinion of people that they think to perform well, will aid in getting better reward at business. Under this process, top management of A M (Holdings) must ensure that promises of rewards can be fulfilled as well as create an awareness among employees too.
    • Valence-This aspect determines the extent to which workforce within the organisation  can be rewarded and recognised to attain high business success (Elstad, Christophersen and Turmo, 2012). It is essential for A M (Holdings) Ltd. to award employees with appraisals and promotions on the basis of their value.

    This theory assist managers of A M  (Holdings) Limited in motivating the workers to work well.

    LO 3

    P3 An effective team as opposed to an ineffective team

    In an organization, team play a significant role in attaining predetermined goals and objectives. Mainly, team is a group of people who comes together with the purpose of attaining common target. With the help of team, company easily increase the chances of attaining their goals and enhance overall productivity level. For attaining the same, company is responsible for building an effective team so that they can easily execute allotted task and achieve positive outcomes. In addition of this, team includes person who have appropriate knowledge about the business and its job activities. In this leader also play a significant role in leading as well as encouraging them to improve their productivity level at workplace so that they can easily handle all the complex situation within the company (Wagner and et. al., 2012). In context of A M (Holdings) Limited, leader of company build teams with the aim of performing business activities with the purpose of attaining all the predetermined and common goals. As effective team help in attaining business goals because all the team members have proper skills about the target. For better understanding about the effective team, there is difference between ineffective and effective team which can be understood by following points:


    Effective team

    Ineffective team

    Decision making

    In this type of team, all the team members get equal opportunities to give their views and opinion in order to take effective decision. With the assistance of this, organization easily enhance their growth level.

    Under this, team members at not involved in decision making process as all the actions are taken prematurely within involving members. It create issues among team members and also negatively impact on their performance.

    Underlying goals

    In this task of group members is well understood and also accepted by the team members. With the assistance of this, team can easily attain their task and objectives as well (Demir, 2011).

    In this, it is difficult to understanding about the task and objectives. This is the main reason is that team members fail in attaining their targets in effective manner.

    Furthermore, company use various methods and theory to develop an effective team through which they can easily accomplish their set target and improve their overall performance level. For attaining the same, A M (Holdings) Limited use Belbin's theory which help in determining propensity of team members and their behaviour towards the job activities. Along with this, it also affect in the relation among all the team members within the organization. As it includes some important points through which management of company can easily build as well as develop an effective team are as follows:

    • Plant: It is one of the important role in which management of the company is responsible to implement the effective tools and techniques that undertake at the time of operating activities in effective manner. In this company need to maintain better relation with their customers to serve quality services as per their requirements. This will improve the the chances of attaining set targets.
    • Resource allocator: In this, management requires proper fund, workers and important resources that help them in performing allotted task and activities. For attaining the same, manager provide resources to workers with the aim of effectively executing business activities. This may lead in improving the chances of attaining set targets.
    • Co-ordinator:It is one of the important role in which management of the company provide information to workers to make them aware about its objectives. Along with this, manager also provide guidance to the team members in which they can easily attain their goals and objectives (Carpenter, Berry and Houston, 2014).
    • Shaper:This role includes duties which give to the team members with the aim of performing activities in effective manner. With the help of this, manager of the team can easily analysis workers performance in a team.
    • Monitor evaluator:In this role, management of the company monitor workers performance in order to enhancing their efficiency level.
    • Teamwork:Under this role, all the workers are perform their task in a team in order to attain common goals by optimum utilization of resources. This increase the productivity level of the team members.
    • Implementer:In this, business organisation use different models and theories with the aim of making entire system more effective.
    • Complete:Under this role, team members implement as well as perform their activities in appropriate manner and also provide quality services to its customers at right time.

    All these roles are appropriate for  A M (Holdings) Limited fr improving their overall performance by reducing the chances of arising any kind of issues among team members.

    LO 4

    P4 Concepts and philosophy of organisational behaviour

    In every organisation motivation has its own importance as it encourages the employees to  perform their work in effective manner. In relation to this, human resource manager of every organisations is using several types of theories to motivate its employees on the basis different situations (Boje, Burnes and Hassard, 2011). These theories are beneficial for the organisation as it improves the performance level of the employees that leads to the growth of the organisation. In context to A M (Holdings) Limited, its HR manager is monitoring behaviour and performance of the employees that helps superior to understand the behaviour of employees. It also creates  perception of employees work and performance on the senior authority. In order to create positive environment at workplace HR manager of A M (Holdings) Limited uses leadership theory to improve the performance of the employees. Leadership theory is evaluated as below:

    Path goal theory:

    Path goal theory is a leadership theory given by Robert house. This theory states that behaviour of the leader is contingent towards motivation, satisfaction and performance of the follower or  subordinate. This theory is based on Vrooms's expectancy theory in which an individual's motivation is depends upon its expectations. Every employee can be motivated with the attractive outcome of its performance (Avey, Palanski and Walumbwa, 2011). This theory is beneficial for  A M (Holdings) Limited  as it guides the HR manager to select the behaviour that is suitable with maximum number of employee's needs and the working environment at workplace. Further human resource manager guides the employees to perform their regular base work in effective manner. Path goal theory is finds the achievement on four different styles which are elaborated as below:


    In this leadership style, leaders guides the employee about his roles and responsibilities. Employees are directed by the leader in terms of ways through which task must be executed. This style positively impacts upon the employee and motivates them to perform their work in effective manner.   


    This leadership style focuses on involving employees in decision making procedure and take suggestion from them to improve the growth structure of the organisation. This develops the interest of employees in their work and impacts in positive manner (Ates and Bititci, 2011).


    : In this, leader shows concern for employees which builds positive relation between them. It reduces the stress of the employees make him feel comfortable with the leader to share their issues and obstacles with the leader.  


    This leadership style more emphasize on showing trust on employees and expect that they will perform at their higher level.

    Different situations:  

    There are several different situations in the organisation which may affect the performance as well as growth of the employee. These situations are elaborated as below:


    Multitasking is considered as the capability of the individual to perform more than one task in single time. In context to the A M (Holdings) Limited, employees often tries to perform several number of work at single time as it directly decreases the quality of their work (Ashkanasy and Humphrey, 2011). In relation to the production team of multitasking is considered as the biggest obstacle for the organisation as the manufactured products are not satisfactory for the customers and affects the name of the company.

    Unclear goal:

    It is the responsibility of top management to clear goal and objectives with employees. This will help the employee to understand the growth structure and realise them that they are important in the organisation. It is the major concern of top management as if the goals are not clear with the employees they will not be able to perform in the right direction. It may affect the performance of employees in negative manner.

    Poor communication:

    Communication is the way of transferring views and ideas with one another. In context to A M (Holdings) Limited, its HR manager focuses on developing proper communication at work place in order to avoid conflicts among the employees.


    From the above mentioned report, it has been concluded that organisational behaviour is essential part of every enterprise as it provides better working environment to the employees and motivate them to perform their job responsibility in effective manner. Apart from this, every business organisation has its own culture which is created by the employees as well as HR manager. It has been evaluated that motivation is essential for the growth of every organisation. In addition to this, importance of different types motivational theories have been elaborated on the basis of its importance in the organisation.


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    • Ates, A. and Bititci, U., 2011. Change process: a key enabler for building resilient SMEs. International Journal of Production Research. 49(18). pp.5601-5618.
    • Avey, J. B., Palanski, M. E. and Walumbwa, F. O., 2011. When leadership goes unnoticed: The moderating role of follower self-esteem on the relationship between ethical leadership and follower behavior. Journal of Business Ethics. 98(4). pp.573-582.
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