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Unit 2 Organisational Behaviour Level 5


Behaviour of an organisation and people who are working in it reflects equal importance. In order to get proper attitude of human resource in a company, its employers need to provide good working environment as well as equality to them. This process will be helpful in achieving business objectives and goals in a limited period of time. In context with organisational behaviour, it reflects the impact of an individual, employees and employers have within the company. Further, this concept shows how persons within an enterprise interact with each other. Positive behaviour of individuals is beneficial for getting better organisational culture which assist superiors to get higher productivity of them as well (Fagbohungbe, Akinbode and Ayodeji, 2012). Along with this, study of behaviour of firm is useful for management of a company in order to manage people by applying appropriate scientific approach. In order to measure behavioural pattern of an organisation, a company like Unilever has taken in this report. It is a retailer firm of UK whose business is based on consumer goods organisation including products like food and beverages, some household goods like cleaning agents, personal care commodities etc. Its HRM uses several approaches in order to get positive attitude of workers. Along with this, it is also discussed in report about how culture of company and its policies are affected by behaviour of human resource.


P1 Ways in which culture, power and politics affect the behaviour and Performance

An organisation is a place which consists many people in a structured way in order to meet a certain goals and objectives. All enterprises whether dealing in retail, manufacturing or constructing business have own management structure which determines the relationship among various activities done by people according to their roles and responsibilities. In context with behavioural patterns, it defines as the way of people interacts with each other which creates great impact on working environment as well as performance of organisation. Therefore, in order to get positive attitude of every individual management of a company like Unilever has to provide proper training to them. It includes induction training program also which is helpful for employees to understand their roles and responsibilities along with values of business objectives in an appropriate manner (West and Lyubovnikova, 2013). Further, some portion of a company like its diverse culture, way of interaction with employees, working environment and structure effect performance of individuals in a large way.

Influence of culture: Culture of an organisation impacts directly on performance and outcomes of a company. Therefore, management needs to focus on introduce best people in workforce as well as interact with them nicely. This process will be helpful for employees to feel comfortable in new working environment which further increases their chances of retention in an enterprise too for a longer period of time. Culture can be classified in the following manner:-

  • Power- Culture plays an effective role in defining the power within an organisation. Diverse culture helps workers to feel equal important. But sometimes people of different background feel uncomfortable in adjusting in such environment. Therefore, Unilever firm has given power to all individuals to work in own manner.
  • Role- Culture of individual also helps in distributing the roles and responsibilities according to their skills in a firm through which they can perform in a required way.
  • Task- For classifying the position management focuses on performance of employees in a particular task.

Values and principles which are shared by employees and employers in a firm also reflects organisational culture (Huhtala and et. al., 2013). Along with this, it also reflects how workers of a company are interacting with each other while accomplishing a task. If people have positive relations with other people then this will help in getting better outcomes on time. While if they have poor relationship with management and other colleagues then this will impact on performance of whole working environment. Furthermore, company's environment, working hours flexibility, accommodation given to employees, customer and client service, satisfaction, dress code of workers and more acts as a 'glue' which is useful in integrating human resource in an enterprise.

In context with Unilever, currently it has 400 brands with a turnover of 50 billion euros in a year. But besides from these brands, its management mainly focuses on only 13 brands as these alone help in getting sales of over 1 billion. Product of this firm are available in more than 190 countries so, to manage all operations in an effective way is really tough for management. Hence, if behaviour of employees is not appropriate then whole working operations will get disturbed. Therefore, managers of this company use many approaches to maintain culture in the workforce and provide various training program to employees in order to make them able to work accordingly. In order to increase productivity of employees, management of this company needs to consider on some major points based on culture are described as below:

  • Abilities: Managers are required to formulate various strategies in order to differentiate workers on the basis of their knowledge, skills and abilities which helps in getting their productivity in a required manner.
  • Leadership: In order to influence workers towards achievements of business objectives a company needs leaders also who have possessed effective leadership skills for the same. They must coordinates managers to set up the guidelines for employees which can help in raising their productivity and profitability. These process will beneficial for increasing high level of performance also. Along with this, leaders and managers together need to identify certain needs and wants of human resources and fulfil these accordingly.
  • Attitude: To make decision in adverse situations, managers should include workers. They need to take opinion of workers in resolving such problems which would help in providing equality in workers too (Jansen and Samuel, 2014). This process impact positively on employees as well as in getting their positive attitude.
  • Working Environment: Company requires to include ethics in business which helps in carrying operations in a smooth manner. They should include safety equipments which provides healthy and safe working environment to workers. This will allow workers to work in a desired manner.

Business of Unilever has expanded in many countries which makes it as the world's largest consumer goods company. Along with this, it has large organisation where many employees are working having different cultures and background. Due to diverse culture, managing people in workplace is much difficult task for management. Therefore, in order to motivate them towards company's objectives and goals, managers has made a campaign i.e. “Winning Together”. Through this campaign managers motivates human resource to bring creativity and innovation in their part of works. Qualitative and high skilled workforce help companies to take opportunities present at marketplace which includes many risk in it. Therefore, in order to influence workers towards new working pattern managers made one more campaign named 'Time Saving Ideas'. It is helpful in getting innovative views of employees for improving production of company as well as in getting better products of high quality. Furthermore, leaders and mangers with the help of each other use various political skills to influence staff members in various ways like if they made any changes in management then will not inform employees in an appropriate way. This will help in reducing their resistivity. But getting lack of knowledge creates negative impact of workers also as well as they will feel that manager misuse their power. This factor shows that politics in a company always impact on behaviour of organisation in a wrong way. Politics in a company arise when superiors manipulated them rather than persuasion. In context with power, if management tries to force employees and unnecessarily harass them to work according to against their willing. This will also impact on behaviour of people as well as on their performance negatively.


P2 Methods to motivate individual and group of employees

In a big organisation, almost all employees are much experienced and highly skilled as well as able to work in an appropriate manner. But if they are not timely motivated by management and appreciated them will arise demotivation in them. Along with this, demotivated workers are not able to perform in an effective way which will impact on whole working organisation. Therefore, management of a firm like Unilever needs to motivate people on regular basis and boost morale in order to raise their productivity (Boje, Burnes and Hassard, 2011). Managers are needed to include workers in major decision making process by discuss them about new working system and achievement of business objectives. This would help staff members to recognise value of them in company so that they can perform in a better manner. Therefore, in order to motivate workers managers can use following two types of motivation:-

Extrinsic:- In this type of motivation technique, managers can use external factors to encourage people as well as brings their morale. It includes extra bonus and incentives, holiday tours, rise in pay scale and more.

Intrinsic:- This motivational technique is belongs to behaviour of an individual in which managers use to motivate employees according to their personal desires. They used to allot work to workers according to their choice like engaging them with their favourite clients or customers. It helps in providing satisfaction to them as well as getting retention for longer purpose.

These methods of motivations are used when a company has diverse culture because every individual has own needs so, they needs different methods of motivating too. Apart from this, in order to provide a healthy environment for workforce management can use some cultural theories also for better growth like Maslow, Herzberg, Alderfer Adams etc. These theories can be classified in two ways that are content and process (Laforet, 2011). Content theories are also termed as Need theories as it focuses more on importance of employees need and motivates them accordingly. While Process theories used to define behaviour of organisation and motivate people according to the same. Some motivational theories used by Unilever's management are:-

Maslow's Need Hierarchy Theory:- This hierarchical theory mainly focuses on psychological needs of people in an organisation. It is useful for managers to fulfil demands of employees in a better way through which they can raise productivity of workers. Maslow has divided needs of people in five level that are Psychological, Safety, Social, Self-Esteem and Self Actualization needs. A brief description of these are given below:-

  • Psychological needs- It includes basic needs of an individual like food, shelter and clothing to get survive.
  • Safety needs- This part consists personal and financial security for safety and standardization of employees.
  • Social needs- Personal needs like love, support, equality in same working organisation, friendly behaviour and more which are required for emotional satisfaction (Elstad, Christophersen and Turmo, 2012).
  • Self Esteem needs- This part consist self-respect of employees while working in an enterprise which they get from colleagues.
  • Self Actualization- It reflects the most desirable need of employees like what they want to achieve.

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Hertzberg Two factor theory:- This theory is effective in allotment of parts of a difficult task into workers according to their capabilities. as per the capacity of an individual so that company can enhance and improve their performance. Along with this, to raise productivity of employees and get their high retention managers should increase pay scale of them too on regular basis. This process will help in boosting morale of employees so that they can contribute their efforts in maximising profitability of company as well. This theory includes two factors to motivate people that are:-

  • Motivators:- This factor creates positive satisfaction in employees including recognition, sense of achievement, growth and promotional opportunities and more which are intrinsic to work. Therefore, it also known as satisfiers (Ates and Bititci, 2011).
  • Hygiene Factors :- This theory includes maintenance factors that motivates employees by including extrinsic factors like pay, company policies, fringe benefits and physical working conditions.

Alderfer's ERG Theory: This theory has elaborated Maslow's hierarchy of needs in a better way by dividing it into three categories that are generating, connection and growing needs. These are explained as below:

  • Growth Needs- In this process, potential of employees are recognized for self-development and growth at personal level.
  • Relatedness needs- In order to maintain interpersonal relationship, this portion includes the aspirational need of employees.
  • Existence Needs- In this process, management used to check physical fitness of workers in order to see if they are able to work according to company's manner.

Lockey's Theory of Motivation:- This theory is also known as Goal Setting Theory which motivates workers to achieve objectives of business in a limited period of time (Wagner and et. al., 2012). But before achievement managers are required to fulfil needs of employees first so that they can contribute their whole participation in achievement of company's success. Therefore, this theory includes five goal setting principles to achieve success that are:-

  • Clarification of goals
  • Employees Contribution
  • Feedback of workers
  • Challenging goals
  • Task Complexity

Performance of a company is based on behaviour of individuals mostly. Therefore, management of every firm including Unilever used to provide healthy working environment to workers. Because efficiency of company is majorly dependent on effectiveness of workers. Along with this, managers used various theories of motivations in order to boost their morale up. In order to motivate people, managers along with leader used to identify needs of employees and fulfil the same accordingly in a proper manner (Glendon, Clarke and McKenna, 2016). This process help in getting retention of people in a firm which is more essential when business of an organisation has expanded in many countries. Because if in a big industries employees are working for long time then this help management to get better outcomes in a short interval of time. This process also beneficial for industries as experienced workers do not need much training programmes to work according to company's requirement. Further, management of Unilever company has used various theories of motivations to motivate and encourage workers towards achievement of business objectives like Maslow's, Herzberg, Alderfer and more. Concept of these theories have own importance like in tracking employee needs and satisfaction as well as fulfil them accordingly.

Culture, politics and power of a company plays an important role in developing the relations among management, employees and employers. In context with Unilever Company, this firm always try to give effective services to customers. For this assistance, its management thinks that power to make decision is in the hands of consumer only. Therefore, they concern on priority of consumers first as well as try to provide full justice to them. For behaviour of employees, organisational culture of this company acts as a base (Demir, 2011). Therefore, in order to maintain positivity in atmosphere managers takes many responsibilities like to identify needs of workers, fulfil the same on time as well as control their activities. This would help in creating positivity among organisational behaviour. In case of politics, management of this enterprise should try to formulate some strategies and implement the same on workforce with the help of leaders. They should try to discuss about changes to workers and convince them to work on new system accordingly. This would help in reducing resistivity as well. Some recommendations for management of Unilever should used are:-

  • Company needs to target new market where it can enhance sales performance.
  • Need to concern on emerging markets too to gain high return on investment.
  • Introduce highly qualified workforce having good knowledge of marketing.
  • Formulate strategies and use effective politics as well as provide necessary information to employees so that they can understand what to achieve.

In Unilever there is very strong relation among all four factors that are Culture, politics, power and motivation in an organisation. Due to diverse culture some workers are feeling uncomfortable in adjusting themselves within workforce in a required manner. For this assistance, managers take following steps:-

  • Provide essential training to employees according to their part of work so that they can develop skills and knowledge accordingly. This process generate feeling of equality and boost their confidence up.
  • Organise various activities to interact with new and existing employees as well as give chance to them to enhance their relations with others.


P3 Demonstration on Effective Team as compared to Ineffective Team

For carrying operations of business in an appropriate manner, a company is required to engage employees in a team and influence them to cooperate each other in accomplishing a task. Working in group help people to share their opinions and knowledge with each other which helps in maintaining relations as well (Colquitt and et. al., 2011). This would help them to complete a difficult task in a proper way within less period of time. Unilever has efficacious team of people whose supports help in getting high return on investment. Efficiency of team shows when they utilise limited resources in a proper way as well as produce goods in a high qualitative manner as per choice of its customers.

Effective Team:- Effectiveness of a group reflects when team members are bounded up towards common goal. For achievement of such goals, they used to communicate with each individual and take their opinion on the same.

Ineffective Teams:- In this type of team, group members usually do not discuss with each other. Leader of such team take decision on own way and force others to follow the same.

To organise the task in an effective manner there are various kinds of organisational teams that are optimised by most of the company so that they can perform the task effectively and these are as follows:

Functional team: These are formulated in order to complete a specific functions in a company. This includes individuals those belong to the same field because of which a mutual understanding can be seen (Carpenter, Berry and Houston, 2014). It consist a hierarchical system as subordinates have to report to managers and them employees and so on. Below four types of teams are mentioned so as to understand it in a better way:

  • Team Leader:- They are considered as an important factor who help an individual or a company in decision making. Other than this, they show appropriate path to employees so that the can accomplish the task in a better manner.
  • Record Keeper:- Person who come under this plays an important part in maintaining the information and data secured. For this they save all the content in their software which they can access in just one click.
  • Progress Chaser:- These are those who encourage the team mates in such a way so that they can complete the work in given specific time frame. To operate this, a person must have time management skills (Bolino and et. al., 2013).

Problem Solving Team:- In this type of team, main purpose of team members is to solve issues in a fast manner. Basically people are belong from different department who are collaborated on temporary basis. This team can be classified as:-

  • Work Group:- Engaging employees in a group is beneficial for utilising the resources in a proper way.
  • Quality Team:- Such team also referred as excellence teams whose members perform task to protect workers from workflow issues.
  • Virtual Team:- In this team, group members used to communicate through online procedure i.e. conferencing or other technologies (Avey, Palanski and Walumbwa, 2011).

In order to increase effectiveness of a team, management of Unilever use Tuckmans' Team Development model. This model helps in developing a team in an effective way. It provides four way model as explained below:-

1. Forming- Through this model, members of a team learns about challenges and opportunities with the guidance and direction of their group leader.

2. Storming- It is second stage in which members used to gain trust of each other and helps in taking decision.

3. Norming- For development of team, this stage divides roles and responsibilities of each people according to their skills.

4. Performing- In this part, all members are performing on individual basis.


P4 Concepts and philosophies of Organisational Behaviour

In order to see the effectiveness and efficiencies of organisational behaviour in a company like Unilever, management should consider the basic elements that are cultures, values, principles and motivations (Ashkanasy and Humphrey, 2011).

  • Integrity:- This can be linked with reputation because by providing better services it can be increased or vice versa.
  • Respect:- To run a business in an effective manner it is important all the person who are working there are treated equally so that a healthy environment is maintained.
  • Responsibility:- They determine all the approaches that is important for operating their business effectively. Thus, it is important that roles and responsibilities are assigned by managers are done in an appropriate manner.

Path goal Theory of Leadership - This theory is mainly describe the leadership styles and it is basically used in order to motivate their employees so that an individual can perform the task enthusiastically (Choi, 2011). Apart from this, following theory describes leadership style in order to influence workers towards business achievement. The steps followed in this theory are:-

  • Identify the characteristics of workers
  • Choosing appropriate leadership styles
  • Concentrating on motivational factors that can assist worker in attaining success.

Employee characteristics:- Through this theory employees will be able to evaluate different leadership behaviour as per the needs.

Environment characteristics:- According to this theory, leaders has to evaluate performance of each individual and analyse their weaknesses (Andersson, Jackson and Russell, 2013). Along with this, they need to resolve issues of employees and reduce weaknesses by giving them essential training program. Leaders are need to provide them correct path so that they can work in a right manner. Leadership styles:- According to this theory, managers and leaders used four types of leadership styles that are Directive, supportive, participative and cognitive.

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While studying behaviour of organisation it is also important important for management to concern on barriers which generates many problem in behaviour. It includes language barrier which creates problems in understanding the working organisation and in interacting with others.


From the above report it can be concluded that human resources and organisation can be interlinked with one another. Therefore, it plays a crucial role in an organisation, in this report culture, policies and powers and their inter connection has been included so that relationship can be evaluated. Along with this, various kinds of motivational theories in order to encourage their employees so that all the goals and objectives are carried out in an effective manner. As a result it helps the organisation in boosting up the morale of workers. Apart form this, philosophy of organisation in context with behaviour is included in this assignment.

Read also:
Organisational Behaviour to Achieve its Pre-Determined Goals
Unit 20 Organisation Behaviour BTEC Level 5 HND in Business


  • Andersson, L., Jackson, S. E. and Russell, S. V., 2013. Greening organizational behavior: An introduction to the special issue. Journal of Organizational Behavior. 34(2). pp.151-155.
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  • 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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  • 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.
  • Elstad, E., Christophersen, K. A. and Turmo, A., 2012. The strength of accountability and teachers' organisational citizenship behaviour. Journal of Educational Administration. 50(5). pp.612-628.
  • Laforet, S., 2011. A framework of organisational innovation and outcomes in SMEs. International Journal of Entrepreneurial Behavior & Research. 17(4). pp.380-408.
  • Boje, D.M., Burnes, B. and Hassard, J. eds., 2011. The Routledge companion to organizational change. Routledge.
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