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The Importance of Understanding Organizational Behavior in Modern Businesses

Feb 25, 2023 | 0 comments

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Feb 25, 2023 | Essays | 0 comments

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An organization is recognized as a team set up that pursues its own collective objectives and controls its own performance through rational synchronization and responsibility (Jing & Aver, 2008, p.13). The objective of an organization is to survive, and also to make profits. Efficient control is necessary to make sure that organization sources are utilized to realize profitability.

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LO 1 Understand the relationship between organisational structure and culture

Organizational framework represents the chain of command in a hierarchical line and responsibility, communication circulation and obligations within an organization. The organization framework works a significant aspect in identifying how responsibility goes within the organization, delegation of obligations, the chain of control and choices of communication are organized.

1.1 Define and explain any three organizational structure and cultures

There exist several types of organization elements that determine the performance of organization functions and culture.

Tall structure: This represents an organization framework that is classified by many stages of control. This is typical in large, multifaceted companies where there are many managers; each with a small span of control. The high framework usually outcomes in creating an aspect culture in the office. This represents an atmosphere where each employee’s obligations and duties are completely assigned.

Flat structure: This organization framework is classified by few stages of control, each controlling a broad number of employees. This outcome in a framework has very few middle stage supervisors and a short chain of control. This framework specializes in on empowering employees and allowing them enough independence in performance of their duties. The smooth framework normally outcomes in a task focused organization culture. This is a culture that specializes in development of categories and collaborative units for performance of responsibilities and solving problems (Jing & Aver, 2008, p.25).

Centralized and Decentralized: This is an organization framework that is classified on the basis of stages of option. A central framework reserves all option responsibility with top stage supervisors. There is little delegation of responsibility especially in critical areas such as planning, analysis and procurement. This organization framework results into a culture of power; which specializes in the aspect of the person with power. The decentralized framework operates by allowing flexibility in making of decisions through delegation of powers. The top organization management sets overall objectives and targets for each department and leaves the means to the department.

1.2.1 Explain how an organization structure and culture can impact on the performance of a business.

There is a highly effective link between organization framework and culture as well as performance of an organization. The culture of organization is best described as a set of shared values, beliefs and actions among people who work together. The responsibility, control and communication structure in an organization works a big aspect in shaping the culture. Organization framework and societies have different impacts on the employee inspiration as well as performance.

Organizations that have unity, culture that is employee oriented experience outstanding stages of performance (Jing & Aver, 2008, p.75). Studies have revealed that employees want to feel as aspect of an organization. They want their opinions to be recognized and appreciated by top management and co-workers. However, the organization culture may depend on the kind of organization. Companies may allow different department to kind their own culture if it leads to improved performance.

1.2 Using an organization or example of your choice to illustrate your point

Apple Inc. is one of the best exemplify that indeed display the near association between organization framework, performance and culture. The Apple is American global company that deals in production and sale of technological electronics for consumers such as mobile phones, tablets, desktops and laptops.

Apple Inc. is a well recognized example of a organization that holds the culture of creativity in development, ideation, and product creation. The organization produces sleek design top quality products that appeal to outstanding and middle income consumers. The organization arranged into divisions for various purposes. The surroundings at the Apple Organization is very relaxed since the organization motivates creativeness in performance. The tagline of the company for employees is ‘Think Different’. This tag variety captures and reinforces the organization culture and allows independence of function. All employees are greatly regarded and empowered to make choices in their position of responsibility.

The imaginative culture at the Apple Inc. has led it to become one of the very best Fortune 100 America companies. From 2008 to 2012, the apple Inc. held the label of most admired organization on the globe. It is the most traded organization of the public with a market capitalization of about seven hundred billion dollars.

1.3 List and briefly discuss the factors which influence the behaviour of an individual at work

The activities of employees are influenced by inner and exterior aspects. External aspects are influences occurring from the exterior of the organization but have effect on the office directly. Illustrations include; responsibility design, co-workers, the outcomes of performance, technological innovation and deal. Internal aspects affect the employee from within e.g. inspiration. Employers need to see the relationship between these aspects as well as of employees.

LO 2 Understand different approaches to management and leadership

2.1 Compare the effectiveness of different leadership styles in different organizations.

Leadership is best described as the procedure through which a manager inspires employees to perform their obligations willingly, competently and with enthusiasm. There are 3 main categories of designs of leadership.

  1. Autocratic Style: In this style, all responsibility and responsibility of making decisions is vested with the leader. The program makes choices and exercises control through benefits and expenses. The style needs conformity and subordination without questioning the choices of the leader. While this style ensures quick option as well as in function, employees may be dissatisfied due to their passive aspect in the organization.
  2. Democratic or participative style: This style is designed to accomplish effective collaboration and involvement of employees in attaining organization objectives. Employees perform a highly effective aspect in elements of recommendations and option. This design does not relieve the leader off his option aspect, but recognizes that employees can participate positively in option. As such, it creates outstanding feelings and inspiration among employees, but may result to slow and ineffective option.
  3. Laissez Faire Style (Free Reign): This style does not depend on control to offer inspiration or guidance. Successfully, the leader represents the position of a team member. The overall objectives are set and employees are left to accomplish them using their own indicates. This increases employee independence but the lack of highly effective responsibility may result in chaos.

2.1.1 Compares the effectiveness of two different leadership styles using specific organizations of your choice.

Autocratic responsibility is best exemplified by CEO of Martha Stewart Living on media, Martha Stewart. Martha is a popular television personality and organization magnate who has projects in many choices of organization including; television, electronic commerce, publishing and merchandising. She is known for her extremely demanding and meticulous design of responsibility. Her organization has restricted choices of vertical communication and responsibility. The leader is keen with details and needs outstanding stages of professionalism from all employees. Martha Stewart embodies the idea of benefits and expenses to self-discipline deviant employees.

Democratic responsibility design is embraced at Bunny Inc. This is a UK-based digital engagement agency that designs and runs team public social networking campaigns for other companies. Bunny Inc. has a transparency charter that explicitly outlines how organization stakeholders treat each other. The organization practices openness in all matters and motivates contributions of all stakeholders. This has in effect quick tracked the popularity as well as of this organization. The organization was launched four years ago but has risen quickly across the ranks to become one of the very best projects in the team public social networking industry.

2.2 Explain how organizational theory underpins the practice of management

Understanding organization idea is essential to the exercise of effective control. Management revolves around planning, planning, leading and directing sources within a organization to accomplish set objectives. Organization concepts offer support to managing activities. These concepts have been tested and tried by supervisors from all over the globe and proven to function. Since control is a skills that can be learnt through imitation and observation, replication of organization concepts may cause to improved performance in a organization.

2.3 Evaluate the different approaches to management used by different organizations

Using the following methods to management;

I. Scientific control approach: This is a control style that centered on identifying how best jobs could be organized to maximize employee performance. This program, designed by Fredrick Taylor, specializes in on one best style of doing a job to increase performance. Taylor introduced the differential pay rate program that remunerates the most productive employees at greater costs. The main tenets of this idea include; allocating projects to the best suited employees, medical education and development of employees, and cordial communication between supervisors and employees.

II. Classical control approach: This idea was designed by Henry Fayol who believed that effective control was not a individual trait, but rather a skills that could be learned through official training. According to Fayol, effective control methods must embrace self-discipline, good deal based on performance, oneness of path, chain of control, centralization, department of based on individual competencies, stability of tenure and a scalar chain.

III. Bureaucratic approach: This is an organization program that has restricted rules to control the performance of obligations. Under this program, there is a asked for framework based on official responsibility. Division of is exercised and supervisors have obvious stores of control.

IV. Human communication approach: This control style specializes in the communication between supervisors and employees to make a feasible office. This style is centered on creating a good office that boosts staff feelings as well as.

V. Systems approach: This idea represents that company’s function as aspect of a bigger sub-system. The notion of a program is most useful to supervisors who view their companies as a program. The inputs, raw materials, control and other elements of the program integrate to receive opinions from the exterior atmosphere which is created up of clients, government and other stakeholders.

VI. Contingency approach: This style stipulates that control activities differ depending on the situation present at the time. What this means is that there is not a universally acceptable control design since activities depend on present conditions.

2.4 List and explain two functions of management.

(a) Planning: This is recognized as the procedure of identifying the organization’s objectives and deciding how to attain them. This involves effective allowance of sources to departments and monitoring functions to make sure that they are in variety with the set objectives. The plan is a blueprint that reveals how the organization is designed to accomplish its objectives.

(b) Organizing: This represents the procedure of grouping activities and sources in a logical manner. This is best achieved by drawing an organization chart which reveals the chain of control, allowance of obligations; perform circulation, and communication stores.

2.5 Use an organization of your choice to illustrate the nature of managerial approaches used in an organization.

The military is an example of organization that uses a restricted, bureaucratic managing style. The Commander in Chief is usually the leader of functions and gives out purchases to officers below the chain. Orders are followed completely and without question by employees. There is a restricted variety of control and communication goes vertically along a framework. Strict bureaucracy maintains order, allows synchronization and promotes performance of an organization.

LO 3 Understand ways of using motivational theories in organisations

3.1 Discuss the impact that different leadership styles may have on motivation in organisations in periods of change.

Autocratic leadership: This responsibility design vests all the option responsibility in the go. This style allows quick choices which may improve organization performance. However, employees may resort to resistance where the choices created do not consider their interests (McClelland, 2005, p.67).

Democratic leadership: This is a responsibility design that allows collaboration of both control and employees in elements of recommendations and option. The employees perform a proactive participatory aspect in the organization. This may cause to top quality of choices, greater variety of alternatives, creativeness and acceptance of changes among employees (McClelland, 2005, p.68).

3.2 Discuss the application of Maslow’s motivational theory within the workplace.

Abraham Maslow (1970, p.34) designed a idea that classifies employee needs into five unique categories. These are; Physiological needs, Safety needs, Social needs, Esteem and Self-actualization. According to Marslow, these needs are arranged in a framework. For an employee to be satisfied at the work place, they must have their most basic needs (food, shelter and clothing) fulfilled. After attainment of one set of needs, an individual climbs the rung to the next set of needs. As an individual goes up the framework of needs, the motivators shift from exterior to inner aspects.

Marslow (1970, p.35) asserts that this idea is essential to supervisors who must learn to recognize the motivating aspects for different classes of employees. For instance, senior stage employees are not inspired to perform to pay bills and buy food; instead, they look for identification and appreciation from their co-workers. While the classes may sometimes overlap, supervisors who can correctly recognize the sources of inspiration are better placed to encourage employees.

3.3 Evaluate the usefulness of motivation theories to Managers.

Motivation is one of the key facets of responsibility. Managers are required to perform a key aspect in inspiration of employees to perform toward achievements of objectives. Highly inspired employees are likely to have low costs of turnover, absenteeism and can thus manage greater performance (McClelland, 2005, p.69).

3.4 Apply suitable motivational theories in a workplace using two of the motivational theories

McGregor’s Theory X and Y

Theory X is depending on the assumption that humans are lazy, they avoid obligations, are not amazing, prefer security and will therefore not look for responsibility. This idea hypothesizes that the single way to encourage employees is through expenses and enforcing restricted, authoritarian idea in the office. What this means is that employees have to be directed with little leeway to think creatively.

Theory Y represents the other of idea X. It represents that employees look for perform; they are committed, self-motivated and amazing. Under the right conditions, people will proactively look for responsibility positions. Management under the Concept Y idea favors the democratic design of responsibility. Personnel are given independence to find their own methods to get the objectives of the organization.

Herzberg’s Motivation – Hygiene theory

This is an exterior inspiration idea that posits that the administrator is in control of aspects that cause employee fulfillment or disappointment. Herzberg found out that aspects that cause fulfillment and disappointment are not on reverse ends of the continuum. The factors that dissatisfies include; supervision, job security organization policy, salary, status, control, operating conditions, and interpersonal communication. Satisfiers include; achievements, development, identification, responsibility and development.

According to Herzberg, the first step in employee inspiration is to eliminate factors that dissatisfies then improve satisfiers. This idea however fails to recognize the different categories of employees and their different needs.

LO 4 Understand mechanisms for developing effective teamwork in organisations

4.1 Explain the nature of groups and group behaviour within organisations

Groups and categories are a significant aspect of organization elements. Activities within an organization require synchronization through categories. For a administrator to effectively encourage and control people in an organization, they must have knowledge of team dynamics.

Work categories are divided into; official and casual categories. Formal categories are established by control for the achievements of particular objectives. These categories are official in the sense that they are provided with responsibility and sources to conduct their obligations. Informal categories are employee centered and have no appointed leader. These categories mainly exist for transmission of details through the grapevine, for amusement and inter-social communication.

Groups, both official and casual, have a significant aspect to perform in enhancing the performance of an organization. Managers have to be aware of how to style the interactions in categories. It is essential look at the intrinsic inspiration for development of categories and aspects that make connections among associates (Jing, & Avery, 2008, p.134).

4.2 Discuss factors that may promote or inhibit the development of effective teamwork in organisations

Organizations are created up of categories that perform together to accomplish typical objectives. Achieving a extremely highly effective team is an indicator of outstanding responsibility. Managers perform to put together sources and people kind diverse backgrounds to perform together. However, effective team communication is restricted by several aspects.

(a) Lack of focus on objectives: For a team to perform efficiently, they must have oneness of path. Group associates must have a typical vision and obvious knowing of what they will continue to perform toward.

(b) Inter-group conflict: Disagreement among associates is a typical feature of categories. Issue may arise due to multiple value sources, competition and interdependence.

(c) Communication: Efficient synchronization as well as in a team may be restricted by lack of an obvious communication channel. Flow of details within the team may be restricted due to actions or lack of an obvious framework. Open communication allows quick decision-making and reduces replication of perform.

(d) Compensation: Perform done as a team poses challenges in terms of contract. Different associates offer different stages of opinions to the team, thus creating it hard to estimate each member’s output. A obvious contract scheme should be drawn up before commencement of perform.

4.2.1 Give examples by reference to a work group to which you currently or have previously belonged.

Effective collaboration in perform categories is a challenge that faces many categories. For example, in school study discussions and team assignments, performance may be affected by distractions and lack of unique responsibility. Furthermore, since such categories are really casual, and based on trust and friendship, performance may be affected by individual interests. Egos and individual traits also perform a significant aspect in identifying the performance and connections of a team.

4.3 Evaluate the impact of technology on team functioning within a given organization

Technology represents applications that ease the performance of obligations. The rapid development of technologies in the position of details and communication has had outstanding effect on team communication. The internet has provided tools such as email, instant messaging and chat that allow quick, reliable communication over long distances. Telephones and mobile phones allow voice communication with associates out of the office, on trips and out in the position. Tech companies have gone ahead to make groupware that allows categories to collaborate on projects, plan meetings and communicate in a virtual atmosphere from anywhere on the globe. This has drastically increased the performance as well as of categories.


For an organization to function, the supervisors must accomplish a correct combination of inspiration and leadership. The administrator must recognize that workers are the most essential organizational. Control over a team may be challenging, but outcomes in greater performance and fulfillment of employees.


Cole G.A. 2008. Organizational Behaviour. New York: Irwin McGraw Hill

Dubrin, A., J. 2007. Leadership research findings, practice, and skills. 5th edition, Houghton Mifflin Company.

Jing, F.F. & Avery, G.C. 2008. Missing Links in Understanding the Relationship Between

Leadership and Organizational Performance. International Business & Economics Research Journal. Vol.7, No. 5.

Maslow, A. H. 1970.Motivation and Personality. New York: Harper & RowMcClelland, D. C. 2005. Human Motivation. Glenview, IL: Scott Foresman Pub.

Northouse, P., G. (2001). Leadership Theory and Practice. (2nd edition). Thousand Oaks, CA: Sage Publications, Inc.

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