This is a solution of UK college organizational behaviour Assignment compares the organizational cultures of two different organizations – British Airways and ASDA.
Task – 1
P1.1- Compare and contrast the organization structure and culture of ASDA PLC to that of British airlines
Organizational culture of an organization is a reflection of the core values, mission and vision of an organization. For example, ASDA aims to provides its customers with products at the lowest possible cost and therefore behaves accordingly, i.e., highlights the same in its advertisements, trains its staff to emphasize on low cost of the product to sell it, etc. In short, the organization plans all its strategies according to this objective. In case of British Airways, all the actions of the organization are directed towards acquiring more customers by providing top notch service to them. This is so because the vision of the organization is to become world’s leading airline by satisfying its customers to the maximum extent.
Organizational culture is sum total of other features too such as dress code policy of the organization, the official language, its rituals, symbols, beliefs, habits, leadership style, communication systems, organizational structure or systems, the strategy of the organization, the various norms it has in place, etc.
Organizational structure of an organization reflects the way the organization works or functions, i.e., who makes all the decisions, how id the chain of command, etc. Most of the organizations have one of the three organizational structures- Tall or vertical organizational structure, flat/ wide or vertical organizational structure and matrix style organizational structure.
ASDA has a hierarchical organizational structure in place. This means that here the managers have a narrow span of control and therefore are able to keep a close watch on their subordinates or give them more time individually. Here most of the decisions are made by the top management and are percolated down to the bottom management to follow the same.
British Airways has a matrix style organizational structure, i.e., all the tasks in the organization are divided into smaller tasks or projects and therefore the expertise of one employee is used in more than one of the project (as desired and required by the organization). This type of organisational structure is a mix of both tall or vertical and flat of horizontal organizational structures. In other words, this structure incorporates positive features of both types of organizational structures.
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P1.2- Explain how the relationship between ASDA’s structure and culture impacts on its performance.
An organization’s culture forms the basis for the kind of performance its employees show. The employees try to adhere and follow the mission and vision statements of the organization. For example, ASDA’s mission is to provide its customers with products at least cost. The employees understand this and while promoting any product or convincing the customer to buy it, give emphasis to the low cost of the product.
Moreover, the organizational structure of the organization too influences the behaviour or performance of the employees. For example, at ASDA a hierarchical or tall organizational structure is followed which means that all the decisions are made by the top management and the bottom management has to respect theses decision and put them into practise without any questions. This makes the employees employed at ASDA much more disciplined. They learn to be more responsiveness and patient.
Furthermore, since the organization is led by making use of certain features of both transformational leadership style and transactional leadership style, the employees at ASDA try hard to avoid mistakes (else they might be subjected to some sort of punishment). Moreover, in order to earn more rewards and recognition, the employees put in their best efforts. In addition to this, any new suggestions (innovation and creativity) from the employees’ end is always welcomed by the organization.
In addition to this, the flow of communication at ASDA is highly clear, open and transparent. This enables the employees to put forth their views and opinions regarding the various things/ processes. Such things make the employees feel valued by the organization and they try to deliver their 100 percent to the organization.
P1.3- Discuss the factors which influence the behaviour of ASDA’s employees at work giving relevant examples
There are many intrinsic as well as many extrinsic factors that shape the behaviour of employees at workplace. However, the intensity of influence of these factors varies from individual to individual. These factors are –
- Situational factors – Behaviour of employees at workplace is largely influenced by the kind of situations they face in the organization.
- Organizational factors – Theses factors include the various policies or programs that are there in place in the organization. These policies or programs also impact the behaviour of the employees. For example, since ASDA has model of flexibility at workplace, the employees are able to manage both their personal as well as professional lives in a much better way. This makes them feel more closely associated with the organization and therefore they work harder to deliver to the best of their capabilities to the organization (Wailes, N., 2005, pp 270).
- Skill sets – When an employee possesses the right skills (as desired by the organization), he or she feels motivated to work and therefore this results in better productivity. For example, the management at ASDA makes sure that it hires the right candidate (with right skill sets, attitude and personality), so that at latter stage the employee does not feel frustrated.
- Demographic factors – They also influence the behaviour of employees at workplace to a large extent. This is so because the employees are exposed to these factors since childhood. These factors includes variables like religion, family background, maturity level or age of the employee, his or her socio- economic condition, his or her sex, nationality or origin, etc.
- Perception – Each and every organization has a definite image which shapes the perception of the employees. The employees try to follow this image and therefore work according to their perception about the same. For example, salesmen at ASDA give more emphasis to low cost of the product while convincing customers to buy the same since the store is known to provide customers with low cost products.
- Personality – Personality of the employees depend on factors such as heredity, family, society, culture and situation. It too has a profound impact on the behaviour of the employees at workplace.
- Attitude – People develop different attitudes due to factors such as family, society, culture, peers and organizational factors. This attitude of people too influences the kind of behaviour they display in public or at workplace.
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Task – 2
P2.1- Compare the effectiveness of the leadership styles used by the CEO in ASDA to that used by British airways CEO.
Different organizations make use of different leadership styles depending upon their different requirements (which in turn depends on the external environment in which they are operating, their internal capacity, nature of organization, its size, mission, etc.). Moreover, today one single organization makes use of multiple leadership styles so that it could incorporate good or favourable features of different leadership styles (Guthrie, J. P., et al., 2005, pp 212).
ASDA makes use of both transformational as well as transactional leadership style. Transformational leadership style encourages innovation and creativity. This enables the employees to come up with suggestions on how to improve the various business processes or functions at ASDA. Moreover, in this case the top management works along with rest of the employees to achieve or fulfil the objectives/ goals of the organization. Transactional leadership style is based on the phenomena or principle of ‘carrot and stick’ approach. Due to this the employees at ASDA put in their best efforts to deliver to the best of their capabilities to the organization so that they could earn better rewards and gain more recognition.
British airways’ CEO Mr. Keith Williams is a charismatic kind of leader and he makes use of transformational leadership style. Charismatic leadership style of Mr. Williams sets exceptional examples or exemplary character which impresses all his employees. They try to work harder like him. Moreover, transformational leadership style encourages innovation and creativity. This enables the employees to come up with suggestions on how to improve the various business processes or functions at ASDA. Moreover, in this case the top management works along with rest of the employees to achieve or fulfil the objectives/ goals of the organization.
P2.2 – Identify any organizational theory practiced at ASDA and explain how organizational theory underpins the practice of management
Most of the management actions at ASDA are guided and supported by the various organizational theories. For example, the organizational theories have always given emphasis on communicating and making the mission, vision and core values of the organization as the guiding start of the organization that would not only guide the behaviour of employees in the organization but also determine the kid of policies that the organization wants to adopt. ASDA as explained before too practises the same thing. The behaviour of its employees reflects the mission, vision and core values of the organization. Furthermore, the first and the foremost thing that is done during orientation is to communicate the mission, vision and core values of the organization to the newly hired employees and train them in a way that these three things get reflected in their behaviour and attitude.
Another example would be of ‘Maslow Hierarchy of Needs Theory’ proposed by Abraham Maslow that ASDA follows. The American psychologist stated that all human being have five basic needs – physiological need (good compensation packages, appropriate incentives and bonuses so that the employee is able to fulfil his or her need for food, cloth and shelter), safety need (cordial, safe and friendly working environment for the employees), social need (giving the employees the opportunity to interact freely with other fellow employees), need for self-esteem (giving appropriate rewards and recognition for the good work done by the employees) and need for self-actualization (making the employees feel worthy and valuable to the organization); and fulfilment of the same motivates them to deliver their 100 percent to the organization. ASDA makes every possible attempt to motivate its employees by satisfying these five needs of its employees.
In addition to this, the organization also takes support of ‘model of flexibility’ to improve employee involvement or employee engagement in the organization. Model of flexibility also helps the employees to maintain a better balance between their professional as well as their personal lives.
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P2.3– Evaluate the different approaches to management used by ASDA to that used by British Airways
Different organizations follow different approached to management. The kind of approach depends on the external environment in which the organization is operating, its internal capacity, nature of organization, its size, mission, etc.
ASDA functions according to a hierarchical organizational structure, i.e., here the managers have a narrow span of control and are therefore able to provide valuable feedback to each and every employee individually. The managers in this case make decisions or give orders and the subordinates are expected to functions according to the same.
British Airways on the other hand has a matrix style structure in place. This enables all the employees to have a better control over their work and have more say in the decisions made by the upper management or their managers. This was required since due to emergence of low cost airlines, the airline industry is getting very competitive and British Airways faces stiff competition from theses rivals. It was necessary for the organization to make their employees feel valuable and more closely associated with ASDA and this could be done only by giving more degree of freedom or say to the employees in the functioning of the organization.
In addition to this, both the organizations differ in the kind of leadership styles they possess. ASDA makes use of transformational as well as transactional leadership style whereas British Airways makes use of charismatic as well as transformational leadership style.