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    Unit 3: Organisations and Behaviour


    Organisation behaviour  is the study of the way people interact within groups. The central idea of the study of organizational behaviour is that a scientific approach can be applied to the management of workers. Organizational behaviour theories are used for human resource purposes to maximize the output from individual group members.

    The present report is about two companies that are City College and Enterprise Rent-A-Car, City College is part of City group plc. And this is no longer a small unit and head to the big organisation with dedicated working departments. Enterprise Rent-A-Car provides high levels of customer services with a belief " Take care of customers and employees first, and profits will follow".

    Task 1

    Covered in PPT

    1.1 leadership and the styles of leadership-

    A leader influences the employees and motivates them to achieve the objectives. A leader must be able to encourage and motivate other employees and solve the managerial problems. An Effective leader is those who influence people regarding their works. A leader must be required to have a positive attitude towards the organisation. Leaders are the people who are followed by number of other employee in an organisation. The work of the leader is to create focus for the task. (O’Rawe,  2001).

    some of the leadership style which will create effectiveness  in organisation, these are-

    Democratic leader style-

    the leader takes all decisions but they give  opportunity  to other to take part in the decision making or appreciate the innovative ideas by the subordinates.

    Bureaucratic Leadership-

    in this type of leadership, leader works with the constitution of the company. Bureaucratic leaders mainly focus on the observation of work and how well the employees executed with rules and regulation of the company make sure every employee follows the rules (Drory, Zaidman, 2007).

    Autocratic leadership-

    in this style of leadership, power become centralised. Subordinates do not have any power or authority to oppose the decisions which are taken by the leader. This leadership allows the leader to take the decision without any interferences. In many cases, when autocratic leadership is practised then the leader can impose their will on subordinates and possess total authority. This can create insecurity in  employees.

    Transformational leadership style-

    a leader establish high level of communication and connectivity with otrhers This leadership involves management and leader can distribute the task between the employees in achievements of the goals and profitability.

    In the present scenario the two organisations, City College and Enterprise Rent-A-Car possees organisational structure and culture along with the leaders(Parikh., 2010). The democratic style is suitable for the educational institutions and it is more helpful delegation of task which helps in increasing the efficiency in the organisation and saving time and resources. While the other organisational structure adopts the transformational leadership style tends to the coordination between the employees, the Enterprise Rent-A-Car can opt this leadership style because their services are based on the client satisfaction, and direct interaction with the customers is needed in this company(Zhang, Zheng, Li, 2012).

    You may also read: Unit 3 Principles of Human Resource Management Pearson EDEXCEL HND Business Management Level 5

    1.2 link of Organisational theories with the style of management-

    Organisational theories are the study of organisations to detect the faults and improve  productivity to attain the desired goals. As Jeffrey Pfeffer  gives different direction for Organization Theory, "Organizational theory studies provide "an interdisciplinary focus on a) the effect of social organizations on the behaviour and attitudes of individuals within them, b) the effects of individual characteristics and action on organization,'¦ c) the performance, success, and survival of organizations, d) the mutual effects of environments, including resource and task, political, and cultural environments on organizations and vice versa, and e) concerns with both the epistemology and methodology that under gird research on each of these topics."

    There are different organisational theories are as follows-

    Contingency theory-

    this theory of organisation depends on the size and part of the company. It evaluates environmental situations which minimise the opposite position of the workers. If the environmental situation in not in favour than it become for the employees to carry out the work in the particular procedure

    Classical theory:

    this is the most basic approach for an organisation. Every work shall be carried out in a systematic way that is proper procedure is to followed by the employee of the company to carry out the work.(Laforet, 2016).

    These theories make the manager more able to take decisions for the organisation. Organisational theories give a way to move towards the achievement. In the time of crises organisational theories help to overcome the situation.

    1.3 Different approaches to management and leadership-

    There are many management approaches that are used in the organisations to the improvement of performances in the organisation(Falkenburg, Schyns, 2007). Some of these are-

    Bureaucratic approach-

    like bureaucratic leadership this approach includes the authority structures and description of the organisation, initially based on developing principles. Emphasis on economic efficiency and formal structure that is a proper structure is to be formed in a company which will include likes article of association or memorandum. The principle will include the basic rights and duties of an employee, board of directors.

    Administrative approach-

    these approach is given by the father of administrative management theory, he explained the five important functions of management which will include  proper discipline is to be followed, there shall be unity while giving directions top the employees, proper equality should be maintained by the administration against their employee. Initiatives should also be taken enhance the efficiency of that department

    This approach of management provides effectiveness in the departments which are headed by the organisations(Karam, 2011).

    Task 2

    2.1 Impact of leadership styles in the behaviour of the organisation -

    Different leadership style motivates employees in different ways because of that employees can increase efficiency in the work. Leadership makes revolutionary changes in the working style. . For an example these two organisations that are City College and Enterprise Rent-A-Car have different working style and due to this,  different leadership style suits them

    Democratic leadership style this type of leadership is required in the big size organisations. the leader takes the decision, but they give opportunities to other to take part in the decision making or appreciate the innovative ideas by the subordinates (Teh, Sun, 2012). Employees feel connected with the organisation like City college and Enterprise Rent-A-Car, helped in framing and the strategies making by taking part in decisions related to the work.

    Bureaucratic leadership style helps the organisation where the decisions authority is only in the hands of the leader. Employees do not take part in the decision making. They just follow the things, the rules without asking any questions. This creates insecurity in the employees and affects the organisation (Chong 2014).

     2.2 The application of the different motivational theories-

    Motivation is a key in  increasing performance of the organisations. This can work as psychologically process which willm influence performance of the individuals. There are many motivational theories to motivate the employees, this are as follows-

    Herzberg's motivational theory-  he developed a two-factor model for motivation. He gives the two factors are for maintenance factor includes work, responsibilities, promotion and growth, and motivation factor that includes environment, payments, strategies which are adopted by City College.

    Maslow's hierarchy theory- this hierarchy of needs is the good option for the bigger organisation like Enterprise rent-a-car in which employee's motivation and management training and personal development are taken, That include five stages that divided in deficiency needs and growth needs(Suppiah, Sandhu, 2011).

    More Resources:

    2.3 Management helps in motivation theory-

    Maslow's hierarchy of needs is the best motivational theory for motivating needs of employees This is useful for the managers in the  on these points:-

    Encourages staff improvement; by the using of this motivation theory, the managers can encourage the staff to speed up in their work (Farmer, Smith, Yellowley, 2012).

    Lower levels of employee turnover: managers can get the reason for employee retention in the lower level, and they can reduce these reasons for the better results.

    The level of staff efficiency- Managers can increase the work efficiency of a particular staff.  They can know the needs of the employees, and they can use it in to increase the work efficiency.

    Achieve organisational goals- Managers can get the goals and targeted productions.

    Possible utilisation of resources- The fully motivated employees makes better results and give a possible utilisation of resources(Wen, Li, Hou, 2016).

    Task 3

    3.1 The nature of groups and group behaviour-

    A group in an organisation can be explained as the number of the person which will form a group or the community which will consider particular demands of the organisation. The main purpose of these organisation if to fulfil the demand and the need for an organisation. There are various kinds of groups which have been formed within the company or the organisation to ensure that the need of the company shall be fulfilled. There are various kinds of groups which are formed within the organisation. For an example discussing about the city college group which is one of the famous and big college in the town, there are lot of activity carried out within the organisation and to carry out such activity or the fulfil the need of these activity certain groups are formed between the college(Nasser, Behery, 2015). The same groups are being carried out in Enterprise also. Some of the groups are:-

    Formal Group: - this group is governed by the organisational structure of the organisation. When the activities are being planned within the company, then it has to be put under particular formal structures that the goals and strategies shall be achieved.  The member of the formal group interacts with each other to achieve the common goal.  In this kind of group an individual has to perform within the frame work of the company that is particular structure has been designed for an example the work of the HR is to provide resources in the company. So according to formal group every individual has to work in structured form.

    Informal group:- in this group various kinds of activities are to be carried out by an individual that is people shall get socialise with other people. An individual in informal group shall get a chance to interact with other people that is socialising. Various kinds of meetings are to be managed in informal group in which the work of an individual to propose several ideas regarding any discussion

    3.2 Factors that could make the team effective-

    There are various factors which can promote effective teamwork within the organisation.. Group size of the company is about 200 employees who provide effective communication and coordination between the staff members. The employees can easily interact with each other and from the different department of the firm. Leadership is another factor which can help to enhance the motivation of the employees. Another reason for teamwork is that they can work with each other it can increase the team building exercises. It can lead to peaceful environment. (Fox, 2007). in Enterprise, these factors which can promote teamwork. Leadership can play a prominent role in team work.

    The firm having a good leadership who can encourage and motivate their employees. It can lead to increase the confidence level and performance of the employees. According to the case scenario, the firm is using the open door policy. It can increase the employee's participation in decision-making. Which may increase the team building efforts of their employees? Apart from that a sound communication system can increase the interaction and coordinate between the various department of the company(Laforet, 2016). It can help to attain the long term goals and objective effectively. Factors may be equal dividation of work, suggestion taken from different team work, involvement of every team member in task given

    3.3 The role of technology in the success of the business-

    Technology plays a significant role in the success of each and every business unit. By using advanced technology, the team function can be improved in both City College and Enterprise. Technology like internet, email, and computer can enhance the communication between the various functions of the organisations.


    it can allow the staff member to communicate with each other through email. In this, team member is not required to meet the employees as this reduces the time and improve efficiency at the workplace (Raes, Boon, Kyndt, Dochy, 2015).


    Internet has positive impact on the business activities of the business unit. It can change the working style within the organisation. The manager can easily use this technology to increase the services quality and-and work efficiency. It can also help to make a strong management system which can be used to manage and control the business activities more effectively. It is an interlinked network, which is accessible to team members within the company..


    Computer is another technology which can allow a staff member to carry out different job at the same time (Huczynski, 2016). Laptop computers can provide flexibility; the employees can perform their job at home also.

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    From the above project it can be concluded that organisational  behaviour is a key element to the establishment of the company. It has been further described in the project that there are many leadership styles which is adopted by organisation. Then project has created a better example of two organisation which took the help of different styles and theories to establish organisational behaviour.  The project has proposed different styles of promoting and establishing organisational behaviour in company. structure is described with the help of examples like Enterprise rent-a-car and City College.


    • Bissell, G.,  Dolan, P., 2012. Organisational Behaviour for Social Work. Illustrated. Policy Press.
    • Chong M.P.M., 2014. "Influence behaviors and organizational commitment: a comparative study".  Vol. 35 Iss: 1. pp.54 – 78.
    • Drory, A., Zaidman, N., 2007. "Impression management behavior: effects of the organizational system". Vol. 22 Iss: 3. pp.290 – 308.
    • Falkenburg, K., Schyns, B., 2007. "Work satisfaction, organizational commitment and withdrawal behaviours". Vol. 30 Iss: 10. pp.708 – 723.
    • Farmer, M.,  Smith, P., Yellowley, W., 2012. Organizational Behaviour. Illustrated. Routledge
    • Fox, W., 2007. Managing Organisational Behaviour. Illustrated. Juta and Company Ltd
    • Huczynski, A., 2016. Organizational Behaviour. 9, illustrated. Pearson Education, Limited

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