Organisational Behaviour of Environment Analysis

Influence of organisation's culture, politics and power influence individual and team behaviour and performance

Behaviour and performance are different in each personality and it depicts the traits of particular individual. In organisation, they reflect both positive as well as negative impact on workforce and environment (Alvesson and Spicer, 2016) . A strong relationship and trust is build when behaviour as well as performance are managed properly by entities. H&M is diversified entity, so it has a greater impact on its behaviour as well as performance. Firm culture, politics and power affect behaviour and performance at deep level which are stated below-

Organisation culture- Culture is crucial for every human being. Organisation culture refers to beliefs, values and morals which depict how to behave in working environment. Culture are different in traits from another organisation. It comprises of expectations and philosophy which are to be followed within the firm. According to Charles Handy theory different types of culture are adopted by organisation according to their work environment. Types of culture such as power, task, person and role which are discussed below-

Positive effect- Employees works with more effort and positive mind when optimistic work environment is present.

Negative effect- If organisation culture is not positive than it might demotivates the morale of subordinates.

Power culture- Power culture refers to when distribution of power and authority has few owners. This type of culture reflects strictness and discipline in entities. In this, subordinates did not enjoy freedom of expression; cannot express their ideas and decisions or thoughts within the group as well as firm. Power culture is beneficial where there is a need of control amongst the organisation. H&M did not use this power as employees are well organised towards their work.

Positive impact- This culture gives self-confidence to subordinates to work with more responsibility and difficult situation.

Negative impact- Wrong use of power causes disputes and problems between the work environments.

Task Culture- According to Handy theory task culture refers to when firm gives task to complete within the specified time. In this culture, employee get motivated and their morale increases. It is considered as most flexible culture because subordinates enjoy freedom of expression. In relevance with H&M, Subordinates get task on daily and monthly basis depending upon employee capability and skills. This task culture depicts positive workforce.

Person Culture- Person culture refers to in which distribution of power lies in hands of particular individual or subordinates and they have a perception that they are most crucial asset of the company. This has a negative impact on organisation overall growth and development process. This culture includes conflicts and negative thoughts amongst the management and employees. In context to H&M, there are some employees in company who have this power, but they know their line in that power so, this reduces conflicts in firm.

Positive- Individual becomes more responsible towards their work and roles.

Negative- Subordinates start develop negative attitude and try to increase their importance in forcefully.

Role Culture- In this types of culture, power is distributed on basis of position access by subordinates. This culture works in hierarchical form and formal structure. In this, power is derived on basis on position and is managed and controlled by rules as well as regulations within the firm. So, H&M focus on this role culture in positive and flexible way. Thus, in entity no one can misuse this power according to their own needs. A proper observation is carried out when distribution of power in organisation is needed.

Positive- Team and individual are able to analyse their work progress and performance level.

Negative- Employees develop negative thinking about the peers and superiors.

Importance of cultural differences awareness

It is important for the company to make effective strategies, plans and policies for understanding the whole conception of cultural differences (Chen and Lai, 2014) .For instance, people of various country behave in different manner in order to achieve goal of the organisation. There are several cultural theories which is mentioned below:

Power Distance Index: It is the process in which the person who possess less power in organisation expect as well as accept that power is apportioned unequally. In context of H & M, the manager have a power to give order to its superiors without considering different factors of the company.

Uncertainty Avoidance Index: It is essential for company to make better strategies, plans and policies without considering uncertainty exist in organisation. Hereby, the manager of H&M makes effective plans through ignoring uncertainty.

Collectivism vs Individualism:Herein, there are various countries who belief that individual person can execute their work better than the group of persons. Thus, H&M need to perform its work in group in order to attain pre-decided target.

Restraint vs Indulgence: Herein, the business conducts different activities that helps in increasing involvement of employees in order to achieve objective of organisation. In context of H&M , the supervisor emphasised on achieving future success of organisation.

Short Term vs Long term Orientation: There are both long term as well as short term goal in the organisation which helps company in accelerating profitability of company. The manager of H&M focus on achieving goal within stipulated period of time in order to sustain the business. Get Assignment Samples.Talk to our Experts!

Organisational Politics

This term is basically used for unwanted activities done by employees with their colleagues. This can include bulling, making fun, biases etc. It affects the employees engagement as well as performance results in reducing overall performance of the company. In context of H &M, the supervisor emphasised on developing positive culture in organisation thus it assists in expanding production as well as profitability of the company.

Positive- With use of politics, depth detail of every employee is known at depth.

Negative- It is mostly used as negative way by putting down the image of others and it creates negative side effects amongst both team and individual.

Organisational Power

It is the ability of manager to give task to different individual in order to perform the tasks. There are different kinds of power which is adopted by the H&M company that is mentioned below:

Expert Power: This power comes from specialised knowledge and skills to take challenges in the organisation. Hereby, the manager of H&M company user its power to achieve goal and objectives in the organisation.

Positive- It helps both team and individual to enhance their knowledge and skills at larger scale.

Negative- It creates jealousy towards other person who is specialised in skills and knowledge. This can affects the work of team as well as individual.

Reward Power: Herein, the manager gives rewards to employees for enhancing their motivational level. The supervisor of H&M Company offer benefits and rewards to employees in order to accelerate the performance of work.

Positive- It enhances the work efficiency of individual and team in effective way.

Negative- It enhances the expectations of employees or exceeds the limit.

Legitimate Power: In this power, the manger possesses right to issue order to individuals in order to achieve target within a given time period. It helps the manager of H&M company use this power to achieve its goal.

Positive effect- It helps both team and individual to become independent and understandable in regard with their deadlines.

Negative- It develops the wrong attitude amongst the subordinates.

Referent Power: Herein, the supervisor of H&M give order to employees that helps in accelerating skills and knowledge of employees towards work.

Positive- It increases the motivations amongst team members and individuals.

Negative- External force is required which sometimes is good for short period of time.

Recommendations in relation with employee turnover-

• The process is to be carried out with proper considerations and measures.
• Decision making is to be done in effective way with use of 360 degree method.

Organisational culture has an important part to play in various factors such as employee turnover, motivation and team performance. Team leader in H&M uses task culture which helps employee to be clear about work to be completed by them and time period in which they need to do it. Leaders in H&M use information from politics in order to increase productivity of employee. They motivate employees through informal networks. Reward power is foremost strategy used by managers of H&M which helps them in retaining employees. In this way H&M managers reduce employee turnover and motivate their team. Want to get Assignment help? Talk Our Expert Now!

Content & Process theories of motivation for achieving goals and objectives

Motivation

Motivation is physiological factor which ignites actions to accomplish a task. It is necessary for an organisation to keep their employees motivated. Motivated employees prove to be good assets for a business (Cherry, 2017). Various motivational theories and technique have been invented overtime to motivate human resources of an organisation. Many organisations apply these theories in order to enhance the quality of work and improve employee satisfaction. This also helps reducing employee turnover in an organisation. Motivational theories used by respective organisation are:

Content Theory

Content theories of motivation focuses on need and aims of individuals. There a number of content theories like Maslow's hierarchy of needs, learned needs theory, Manifest needs theory etc. H&M uses Maslow's Hierarchy Need Theory in appropriate manner. In the absence of this motivation theory it can have a negative impact on H& M performance as well as it will be difficult for them to achieve their vision and mission. There will be increase in employee turnover which might cause a negative environment at workplace. This theory consists of five elements which describes the hierarchy of needs. These five categories of need are mentioned below:

Physiological Needs- It includes satisfying basic needs for food, water, shelter, cloth, air etc. Such needs have a great influence on human behaviour. Every employee of H&M is provided with such need. It is not possible for an individual to survive without fulfilment of all these basic needs.

Safety and Security needs- This need come second in hierarchy. Once the physiological needs are fulfilled need for safety and security arises (Erbasi, 2017). This includes a secure surrounding in workplace as well as after work, free from any threats from other individuals, good working conditions etc. Satisfaction of this needs helps to reduce fear and anxiety in individuals. H&M provides such secure environment to their employees. Also it takes care of their conveyance so that employees are secure even after working hours.

Social Needs- This need refers to human desire for affection, love and belongingness. It is important for an individual to be recognised in the society as well as in their organisation. Family, friends, relative, work team etc. are all included in it (Osei , Osei-Kwame and Osei Amaniampong, 2017) . H&M needs to make sure that there are groups formed in organisation and people work in those groups. This helps to build good communication among employees and a feeling of belongingness is developed in them.

Esteem Needs- This next need in hierarchy theory consists of self-respect and esteem of an employee. These are indicated towards achievement, knowledge, competence and independence of an employee. It is important for an employee to feel that they are a valuable asset for business. Management at H&M appreciates employees for good work.

Self- Actualization- Self-Actualization need is last in this list of needs. This is a need which is thought of to be never satisfied completely. It involves a need of self- fulfilment, to become something more every day and to be everything that one is capable of becoming. H&M provides challenging environment which helps an individual to understand their potential and worth.

Advantages- Maslow's theory takes into account human nature. The greed in human nature is inborn; this is understood well by Maslow. Also this theory is universally applicable.

Disadvantages- It is difficult to measure human satisfaction, so it becomes difficult to figure out when to move to next hierarchy. Also due to cultural differences this theory might be difficult to apply in some cases.

Process Theory

Process theory includes process of through which motivation is achieved. Major process theories are operant conditioning, equity, goal and expectancy (Nograšek and Vintar 2014) . H&m uses Adam's equity theory which refers to balance between input of employees and output they receive. These ensure that employees are motivated. In the absence of Adam theory, it will difficult to analyse and examine the subordinates performance and work done by them. This will have direct impact on turnover and achievement of selected Enterprise.

Input: Input refers to quantity and quality of work done by an employee. Energy, time, hard work efforts etc., are utilized in it.

Effort: The work which an employee does carry out a task is called effort.

Skills: Skills are qualitative. It differs in different individuals. Experience and training helps in acquisition of skills (Grufman, 2018).

Knowledge: Schools, training and interest in certain topics help in gaining knowledge to an employee.

Experience: Knowledge is of no use without experience. Experience is said to be a valuable characteristic.

Output: The result which is received after completion of a task is output. This includes both monitory and non-monitory rewards.

Financial Reward: These includes wages, salaries, profit sharing etc. An employee gets it in return of his services to business.

Immaterial Rewards: Immaterial rewards include challenges, responsibilities and recognition.

Importance and effect of organisational culture-

• It helps in attracting employees towards the firm
• Increases employee motivation and morale in proper way.

Organisation culture is important because stability of the employees and business depends upon culture that firm possess. Handy culture model is also crucial in organisation and it also has deep impact on H& M subordinates team performance, personnel turnover as well as motivation. Power culture of the firm affect the management at wider level. Because personnel often has negative feeling about the superiors powers and it leads to decrease in motivation as well as conflicts in team decrease the performance level of subordinates. 

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Equity Theory of motivation-

This theory states that individuals compare their inputs and received outputs while working, they compare it with others and then take required measures to eliminate any equality. Inputs can be time, energy, determination, skills etc., whereas outputs include praise, promotion, salary, employee benefits etc. Comparisons are categorised into four types which are self-inside, self-outside, other inside and other outside.

Advantages- It helps employees to know their worth. Employee’s exploitation can be reduced with the help of this theory.

Disadvantages- Employees usually generate a feeling that they are treated unfairly. Employees might misjudge their inputs which might result in dissatisfaction.

Motivation theory

Recommendations-

To improve the employee motivation in H&M, manager of the firm should conduct co- curricular activities and schemes such as to earn bonus or incentives which will motivate them to achieve the objective.

Turnover in the entity can be reduced by hiring the right personnel from the starting of recruiting process.

The above recommendation has been provided because change is important in every firm and to deal with uncertain activities it is important to use these recommendations.

VROOM expectancy

This theory is also adopted by entity and in the absence of this, it will be not possible for managers of company to analyse the personnel perception and what factors can motivate them. It can also cause negative sides of employee turnover.

Limitations-

• It gives wrong expectations to employees and their perception,
• Everything has to be clarified by the manager to subordinates so that they work accordingly.

Recommendations-

• Before motivating employees brainstorming session is to be done for clear understanding.
• Employees need to motivated at every phase of process.

This motivation theory helps in analysing the effort and needs of an individual. It has been explained below-

• Expectancy- Individual or say employee has perception that higher effort leads to improves performance. In context to H& M, entity
• Instrumentally- This states that better performance results in positive outcome.
• Valence- In this, main focus is on importance of outcome that person has different from each other.

H&M manages to create a balance between input and output of its employees. It is necessary to reward the employees according to work done by them. This motivates them to do their work efficiently and effectively.

Effective team vs Ineffective team:

A team is considered as group of people who work together to achieve common desired goals. In this, coordination and cooperation are to be considered as important part of process. Work is achieved in more efficient way when group of people work as a team. It is important for an organisation to engage all of its employees in activities in order to attain effective outcomes (Newman and et. al., 2014) . This helps in achieving goals of the organisation and simultaneously increases employees performance level. Working in team helps an individual to develop values such as loyalty, reliability, self-awareness, positivity, confident, communication skills etc. Concepts of effective and ineffective team are mentioned below:

Effective Team: In such teams effective work is done by team members to achieve a common goal. Sharing of roles in this team is done based on skills and experience of each member.

Ineffective Team: In an ineffective team structure, members in a team do not communicate efficiently which leads to disagreements and chaos in group. In this team members do not actually understand goals of the organisation and put all their efforts to achieve individual goals.

Different type of team:

Functional Team: In a functional team all the roles and responsibilities allotted to members of team are similar. The members are supposed to inform to manager who have divided work amongst them. Functional team are formed on the basis of functions of an organisation like human resource, marketing, operations, finance etc.

Project Team: In a project team work allotted to members or a team differ from each other. Team members are picked from different functions of organisation.

Task Force Team: In task force team small groups are formed to accomplish certain projects or task. It is created for limited period of time (Kasemsap, 2014) . Such team exist for short time span.

In context of H & M management of company uses functional team in retail stores. Task of members in same team are also similar. There are different teams of cashier, salesman and manager.

Comparison of Effective and Ineffective Team:

It becomes important for a business to make effective strategies for communication in its organisational structure. Application of these strategies should be done in such a way that employee engagement increases and maximum productivity can be attained. Effective team helps managers to encourage their employees. Roles and responsibilities are divided without any biases. This helps business to obtain maximum profitability. In context of H & M teams should be made effective in order to reduce staff turnover at stored. If the staff is satisfied with team and team leader the problem of staff turnover will reduce significantly.

Tuck-man leadership theory is a theory in which different aspects of team building are involved such as storming, norming, forming, adjourning and performing.

• Forming- In this members and individuals are nervous about the culture of the organisation. Leader and managers guide them about the work and environment of firm. It makes an ineffective team because it is the phase of process in a team.
• Storming- Further comes the storming in which members start sharing ideas and thoughts with each other. Leaders as well as managers start assigning task to every member in the organisation. This develops the team further & it is is being still considered as ineffective team.
• Norming- This is stage where conflicts are errors takes place. In this team members strive for their motives within a firm. In this, team are being seen as effective as well as ineffective depending upon the situations faced by them.
• Performing- In this, members of the team start taking their own responsibility and leaders does not have to guide them. This is stated as effective team and positive result is obtained.
• Adjourning- Further comes the adjourning in which, team get separated from each other due to organisational rule and policies. It also increases the employee turnover but is being said as effective team who complete their work and get separated.

Reflection-

In my own personal experience, team is essential part of organisation as it help in achieving the goals and objectives properly. So, group of people working together help in develop a mutual coordination. Working in team helps individual to achieve the task within a given period of time. In context to H& M, as a team member of the firm I realised that different people present in the entity and behaviour as well as attitude changes time to time according to the occurring of events in team. So, the above tuck-man theory of leadership assists me to coordinated and cooperate with team members in proper manner. Thus, managers as well as leaders of H& M are supportive and understand each and every employee.

When employees are motivated and satisfied the quality of work automatically increases. This also builds up reputation of company. In future when H&M wants to expand more, attracting new employees will be very easy for it. These are some reasons which make it necessary for companies to use motivation theories.

Concept and philosophies of organisational behaviour applied within given situation

H & M needs to build an effective team structure in order to achieve their objectives in best possible manner (Khaola, 2014) . Along with it, it is also important to share all the necessary information to every member of team without any favouritism. It is also foremost duty of managers to motivate their team members or employees to work towards organisational goal. There are some important factors which should be addressed by employers. Below listed are those factors:

Integrity: Integrity is related to reputation and goodwill of organisation in external environment. It becomes important for an organisation to fulfil all the demands of customers. Providing them with effective services will help them build a strong brand image.

Responsibility: Distribution of roles and responsibilities is an important part to be played by managers (Majumdar, 2018). Manager needs to have complete knowledge of skills and capabilities of the employees in order to allot them their roles. Proper distribution of responsibilities helps in increasing job effectiveness.

Organisation behaviour-Informal group theory- Informal group theory states that these occur as soon as individuals meet or connect with each other. These are not operated by management and they have positive as well as negative impact on behaviour.

Positive- It allows individuals to enjoy freedom of expression and perform their work accordingly.

Negative- It does not create discipline and employees sometimes become aggressive towards their behaviour and work.

Leadership- Every organisation need leaders in their manager because they are the people who manages, handles and motivates personal to achieve the goals. This concept is wider & requires set of skills as well as knowledge,

Path goal leadership theory:

This theory is based upon effective style of leadership. Motivating their employees in order to attain required results is an essential part to be played by managers. This helps in increasing productivity of employees. By using this theory, leaders can influence the employee to achieve the objectives as by providing them support as well as proper guidance to them towards their work and professional career. The required objective can be attained in a set time frame through this. Various steps in this theory includes required characteristics of workers, selection of an effective leadership style and motivational factors to be used in order increase quality of work. Taking inputs from this theory H & M can efficiently increase their profitability.

Advantages-

• Path goal theory helps the leaders and mangers to identify the right path and direction.
• Also, motivation is increased of employees when using path goal theory.

Disadvantages-

• This theory is time consuming and requires skill and knowledge to understand.

Characteristics of Employee: Employees are usually judged based on their experience. It is important for managers of H & M to know about backgrounds of their employees. They need to have knowledge of all their skills and abilities. The work must be divided amongst employees based on it. Also, it is role of manager to decide on the best method of motivating employees.

Characteristics of Task and Environment: Company needs to provide employees with required support to achieve their targets. This factor includes a new kind of task characteristics which is formal authority system, design of task and work group. H & M needs to provide a good working environment and required support which will help reduce staff turnover rate.

Leadership styles: A manager can choose from various leadership style to apply in organisation (Mansouri, Singh and Khan, 2018) . Leadership styles can be categorised into 4 broad categories. These categories are mentioned below:

Directive: It is clear by its name itself. This kind of leadership includes directing employees towards goal. Managers in H & M guide their employees and make sure that none of their efforts are wasted on tasks which are not important. This helps in optimum utilisation of man power.

Supportive: In this manager provides support to employees. In H & M team leader should let employees fulfil their duty, but in critical situations it is job of leader to back up their team members (McShane and et. Al, 2015) . This will help employees to gain confidence and also improve their skills

Participative: In this leader needs to make sure that every worker participates in task. H & M leaders look upon work of every employee. They make sure that all the employees are engaged in task. This helps in creating a good working environment for employees so that they do not feel isolated working for them.

Achievement: A goal or target is pre-decided in this kind of leadership. Leaders at H & M formulate a number of challenges and targets for their team members. Employees are also motivated in this leadership style to accomplish the objective provided to them.

BF skinner theory of leadership states that leadership behaviour is influenced by situations and conditions and accordingly reaction occurs. This includes and specifies the relationship between behaviour, punishment and reward. In today’s modern world, this theory is much more used by entities in the firm. In context to H&M, they uses Skinner theory so that all progress as well as performance level of employees are analysed in appropriate manner.

Combining the organisation culture, power, politics and leadership styles do have both positive & negative impact which are discussed below-

Positive impact-

Consolidating the elements of firm & leadership styles leads to a strong base of the management which results in higher productivity of entity.

Negative Impact-

Involving the leadership styles and other components may affect the working efficiency level of personnel and it may also lead to demotivation because of work load and too much expectations. In relation with H& M, to achieve the task manager and leaders of the company combine these elements and environment at workplace get disrupted.

CONCLUSION

From the above-mentioned culture, power and politics have imposes positive and negative impact on organisation. This helps in enhancing the employee’s performance in an appropriate manner. It is important for building effective plan and procedures for understanding entire concept of company. In addition to this, organisation politics is unwanted behaviour of owner toward its employees. At last, organisation power is the ability of supervisor to give order to employees to perform a particular task.

Read Also :- Principles of Finance

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