Organisational Behaviour

Analysis of Organizational Behavior and it’s Importance

Introduction to Organisational behaviour

Organisational behaviour is a concept in which people interact to each other in a company to enhance business productivity to achieve common goal and objective in an effective manner. It helps to build positive relationship among the human resource of firm. Employees’ actions are crucial for each organisation to meet their vision in an appropriate way. The present report is based on study of the NHS which provides health and care service to people in United Kingdom. Report consist the theories of leadership, managerial style along with impact on the organisation, types of structures, importance of organisational culture in effectiveness of company, the role of team in modern corporate world. The overall purpose of the study is to highlight the importance of it in new management of trade entity.

Activity 1

(a) Evaluation of leadership theories

Leadership theory defines the theories in which all the terms which are beneficial for a leader are addressed. In these theories all qualities of a leader are examined in which the internal qualities of a leader are introduced. Further more also, its behaviour with others are mentioned in these theories. This description helps to understand all the terms, nature, behaviour of a leader more properly. The evaluation of this leadership theory is described as under.

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Trait theory

This theory is related with internal quality of human being. Inner quality of leader can be identified through trait model . It is argued that the commanders are born not made. There are certain characteristics of person which influence the behaviour of subordinate. It aids to create different between non-leader and leaders regarding their quality.
Behaviour theory: This relate with human behaviour with their followers. There are different approaches of it which is described as per under.


The concept of leadership in that the commanders no allow to take participant in decision making process for business activity. Major drawback of it subordinates feel inferior which is harmful for company. Autocratic approach is helpful for that company that have inexperience employees.


In this the leader encourage to followers to share their thoughts to development of the business. High motivated and skilled team use participative approach of behavioural leadership. By applying democratic leadership style, leaders can motivate their subordinates to attain the goal of better productivity.

Contingency leadership

It reflects that nobody is superior in directing to employees but situational leadership is best. It is evaluated that, organisation is totally depend upon on the situations: internal or external. A contingent leader apply his own style at the right time in difficult situation. So, that their firm can perform better task.

The above mentioned theories help to motivate or guide the subordinates towards their role and responsibilities in an organisation to achieve their mission in effective manner. These theories also helps leaders to guide subordinates and encourages them to do task in effective manner. So, it is summarised from all the information is that a leader can be used one of the above theory in the achieving better result for their organisation.

Trait theory is used as the one of the main example for motivating an employee. Subordinate have to examine all the nature of a leader and have to apply all those things on themselves. It helps them to increase their efficiency.

(b) Impact of managerial styles on organisational effectiveness

Management style is refer as the way to managing to whole function of organisation to meet company target (Nelson and Cooper, 2007). Different firm use own unique way to control their operation and it has direct impact on the work-culture of the firm. There is several method of administration which is described as per under.

Autocratic management style

As the name suggest, the method of managing of company activities fully centralized to the higher authority of organisation. There is no existence of bottom department involvement in necessary planning and policy of the corporation. The Impact of autocratic style on the organizational effectiveness is quick decision of the business, due lack of involvement of lower level personal it provides accelerate to take appropriate decision for company function (Osland and Turner, 2011). All the suggestions and order issue by the top management so there less possibility of arising confusion for the job of workers.

Paternalistic style

In this approach director consider the employees recreational and social needs during process of decision. Two ways communication system involves in vertical form employer provide essential information to employees and take their feedback to develop business planning or strategies. It helps to enhance their motivation which is crucial for the both. The impact of paternalistic style on NHS organizational effectiveness is developing positive relation between top and lower management, effective work-culture and high morale of employees.

Democratic style

In this way of management employer allow to his subordinate to give their opinion and suggestions to make business decision to enhance company market-share. Two way communication systems exist in this style. It is useful for small size organisation to meet their goals. The impacts of democratic management approach on NHS organizational effectiveness are positive relationship, team work and enhance workers skills such as the communication, decision-making, problem solving etc. The above mentioned management style helps to increase the productivity of company, O2 mobile use autocratic and paternalistic approaches for their managing work.

(c) How motivational theory can inform employee motivation

Motivation theory implies an desire to do the task. It helps an organisation to get better result. Employees’ motivation is important element for business growth of a company.

Theory is a way to encourages worker to put their effort to achieve organisational goals and objective in effective manner. For example Maslow theory helps to motivate employee to take responsibilities to enhance the effectiveness of organisation.

There different need of an individual which is importance to deliver to encourage them. Security requirement is relate with protection of their job. If the company ensure their role in firm than the will put best effort to give qualitative service to patient of NHS.

Social need help to motivate employee toward duties in organisation. In this context it is relate with team formation positive relations among the teammates help to encourages employee to achieve company task.

High moral of NHS workers assists to give better care to patient who getting treatment at there. Promotion of employee assists to enhance their motivation toward their task, when an individual get high responsibilities so he or she give better effort to achieve company goals and objective.

Employee have some basic need to survive in this world like food, water. So, for this they have to top do in an organization from which survival of life became easy. This need is treated as physiological needs.

Ability to do work, proper environment for performing task and motivation make the performance of an individual effective. It helps an individual to increase efficiency of an organisation. A good leader always encourages and motivates their subordinates for better result.

Motivational theory motivates an employee to perform task correctly. It encourages them to do all work systematically. This systematic working appraised them by their leader and leader can encourage them by motivate them in front of others.

( d ) Theories relating to work relationships and interaction

Theory is related with work relation as well as interaction between employees and employer to achieve company mission. Effective implementation of motivation theories help to build positive relationship between these two. Regular interaction assist to create better bonding which is crucial for organisation.

1.Motivation theory helps to create coordination among group member as well as owner and workers. It aids to develop better communication between these that contribute allocation of task to each employee within an organisation. In the present scenario of NHS which dealing in health and care sector it is crucial to each individual know what is their duties regarding hospital service so they can perform their role and better communication with top management assist to take necessary guideline from them that help to give better service to patient during their treatment at NHS.

2. Motivational theories also aid to enhancement various skills in workers which is crucial for both employer and employees. It helps to attain some needs of an individual and for that they should have to perform well in an organisation. It also helps them to improve their skills and in their development also.

3.Behavioural theory implies the leader behaviour with its subordinates. It helps them to achieve all the tasks correctly. In this theory there are certain more elaboration like there is no one way to do all the projects correctly. So, a leader should have to change itself from according to the demand of time.

4.Power theory describes the ability to influence or outright control the behaviour of people. In an organisation power means the authority level or leaders of an organisation. They help them maintain the strategies and work of firm.

5.Social constructivism means sociology theory of knowledge according to which the human behaviour and development is social situated and knowledge can be increased in them while interacting with some other people. In organisational sense, employee can maintain their development and increase their knowledge from other workers. So, it helps them to improve their work quality.

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By using all these theories an organisation can be achieve its targets with the help of their employees. Workers can be do effective work if their leaders behaviour towards them is correct and right. They have to motivate their subordinates by using their power. And employees have to learn many things from their leaders, so, that they can perform better task and helps in the growth of a firm.

Activity 2

( a ) Analysis of how organisations can facilitate innovation and creativity

In last 2 decades technology is rapidly change and its affect the business function of the company. In health care sector innovation play vital role to give better treatment facilities to patients. In late 20th century there were number of difficulties arise and patient loss their lives in emergency cases. Now hospital adopt new tools and equipment to diagnose the disease along with provide require care to them. Skilled employees of hospital are well aware about the use of advance machinery to recognised causes of illness as well as develop a plan to give medical treatment to get quick recovery. Creativity of employee can be used by the organisation to develop caring plan for their patient. Supporting approach of organisation assists to facilitate the changes which are essential in efficiency of company. In the above mentioned scenario, NHS has autocratic and paternalist management styles which aid to make coordinate with this in positive way. Support of higher authority motivate to employee to perform their role in productive way to accomplish target. Skilled worker of hospital help in communicating to patients expectation. In health and care sector sick people expect that they will get good support at there by the nurses, doctors also technician staff. Creativity thinking assist to use equipment to identified the issue of illness on right time to deliver best treatment facility to them.

(b) Assessment of the importance of learning in organisations

Learning is process which help to individual as well as organisation to enhance their potential to meet their determined goal in effective way. It also assists to increase the moral of worker which is beneficial for the company. Technical knowledge is good and necessary for a leader because with the help of this they can manage everything in an organisation which is related to management and experiment based knowledge is more necessary then technical knowledge because it helps to a leader from recover to any situation in firm.

In health and care sector the continuous learning aid to enhance the potential that helps meet personal target. In employee context there are number of kinds benefit which can gain by them through learning first increase their skills, better ability of communication assist to develop the relationship with top management along with it take participate in decision-making process through provide their suggestion, motivation of employee direct influence by the learning that motivate them toward their role within organisation. Improve confidence level of workers by gaining knowledge to pursue specific task in effective. At the same learning is also beneficial for the organisation where there are number advantages of it which described as per under.


Through this approach company can get greater flexibility in performing it operational task. In health and care sector, it assists to develop strategies to allocation of work to get resilience which is importance to adapt the various changes that take place at workplace.

To motivate employee

It is essential for each business organisation to encourage it employees toward their duties in organisation. In above mentioned scenario of NHS, motivation of workers is crucial to deliver good treatment to sick person. Health care dedication for their role helps to organisation to enhance it brand value with sustainable growth.

To monitoring the talent of worker

Through the continuous learning company can develop better method to measure the performance of its employee which aid to plan their career growth to motivate them.

( c ) Evaluation of effectiveness of team working

Team working plays a crucial role in an organisation to achieve efficiency to meet their goals and objective. It is collaborative efforts by the number of people who perform their duties to achieve a common mission. Group productivity is important aspect for the company. By team working, this assists to NHS to enhance the quality of care services and meet the customer satisfaction level. Evaluation of effectiveness of team working for the cited organization is as follows.

Setting goals

It helps to set the goals for entire health care team of NHS. This provides necessary information about the work that needed to be performed by the group. By this, team members can understand the mission of the NHS. It assists to allocation of work according to the skills of health care professionals.


Teamwork effectiveness has helped in planned the work that can be easily completed. It provides the framework of performing the tasks to health care workers of the NHS to achieve common goals and objective.


By team working approach, decision making of health care workers of NHS has enhanced. In different types of situations, they have able to take decisions by using the past experience and co-workers helps to deal with the problem.


The Team dysfunctions of an outlines that is a root of causes of politics and dysfunction on the teams where you work, and the keys to overcoming them. These are absence of trust, fear of conflict, lack of commitment, avoidance of accountability and inattention to results.

Team cohesiveness

In simple term it can be define as the bonding of teammates to pull their task to increase their efficiency. Three elements are included in the cohesiveness such as the pride, commitment and interpersonal attraction for the works.

( d ) Analysis of the effective management of change in organisations

The management of change is process in which change take place in company smoothly and thoroughly. It is essential for the top authority to assess the causes of change and develop the necessary model to communicate with it. In the above stated scenario hospital rotate the shifting and increase the duties time with 2 hours that affect the behaviour of worker as well as they recruiting new employee to communicate with demand and supply. An organization like NHS have to get prepared about all the changes in advance. They have to prepare such strategies which are helpful at the time of change. Just for survival and growth change is compulsory. So, every organization have to adopt these changes as early as possible.

Merger and acquisition represents the situation when two companies merge themselves and made a new name. It is very hard to maintain all the situation correctly because in this process two different thinking and based organization merge themselves and start business. This changes in thinking rises conflicts in an organization which are not acceptable.. The following impact arise though the change.

Increase the cost

Due to enhancement of work-hours the major impact of it the cost of function is high. Hospitals pay more incentive to worker for extra time. Higher cost reduces the profit of the organization.

Low interest of employee

It is not necessary every individual accept the change which takes place at organisation. In present scenario of NHS increment in duties hours affect the mindset of some workers in negative way which is lead their low productivity.

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To deal with the above mentioned changes, it has required an effective management of change in NHS. Planning helps to create coordinate to allocation of task and resource among each employees of corporation. It assists to provide guidelines to top as well as lower department how to deal with diversity of work. Rotation in shifts of care workers help to manage the work together with equality among all employees. Major purpose of the change is maintaining the balance between demand and supply of health care service at organisation. Health care organization appoint new employees by communicate with requirement of patient regarding their treatment its essentials to develop the cooperation between new and existing worker to deliver goods care to improve their health.

Activity 3

(a) Culture and structure of the NHS and its impact on it effectiveness

Organisational culture and structure is crucial to improve the effectiveness an organisation. Better work-culture helps build positive relationship among team members as well as top and lower management. NHS have club culture which help to hospital to appoint an employee for their expertise knowledge to contribute in accomplishment of objective in effective way. It assist to increase the moral of workers which is crucial to give better health care services to patients who taking treatment at there. The hospital has skilled and trained nurses as well as doctors to deliver the best care. Positive culture of NHS helps to development smooth relationship which is beneficial for the company meet their mission. Along with organisation can allocate work as well as resources among the worker in appropriate manner which is important to reduce the cost of operation. Culture of hospital is employee friendly that assist to enhance their productivity. NHS opt the division and matrix work structures which help to divide all functions of health and care among the capable persons to perform in appropriate manner to enhance the productivity on the matrix system of work assist to achieve specific target. For example in IT department of hospital and human resource aids to develop the IT skills to coordinate with demand of new employees. Matrix structures help to overcome adverse situations within the organisation of health and care. Hospital adopted division structure in regular operation but in emergency situation the matrix system can be used by them.

An organisational culture refers to the system of shared assumptions, values that show people what is right and what is wrong for an organisation. An effective organisation helps a firm to do the things right and accurately. Culture defines that they have to follow ethical values and not harm the organisational values.

Activity 4

(a) Management approaches to Organisational decision-making

It is important to take an appropriate decision to enhance the growth of business as well as increase the potential of employees. It helps to communicate with future changes that could be affecting by the organisational operational in both way positive and negative. There are different approaches which can be adopted by the company.

Rational approach

The concept of this decision making model the manager of corporation. It is scientific method in which leader follow the necessary steps to develop a suitable arrangement to overcome adverse situation which can affect the company function. There various element that which should be consider during decision process:

  • Determined the goals.
  • Define the problem in organisation.
  • Identify the type of decision.
  • Collection of alternatives.
  • Evaluation of collected alternatives.
  • Select best one.
  • Implementation of plan.
  • Control.

Behavioural approaches

The concept of this decision making approaches focus on the behaviour of human. It not considers about the information all the decisions are made on the actions of persons. In this method manager or leaders have bounded to make the decision he or she cannot use all the necessary information to make suitable arrangement to resolve the problem in the organisation. It is not effective to communicate with problems and result will be unfavourable.

Practical approach

In this method manager and leader can go beyond the boundaries to formulate the decision for business in this he or she can use all the information without any difficulties. This approach is widely useable in organisations to deal with specific situations.

Personal approach

In this manager or leader use their personal experience and knowledge to take decision for business to avoid unfavourable situations along with enhance the efficiency of business.

The above different approaches are described to communicate with change in organisation to reduce the negative impact on the business and enhance the productivity of firms. NHS is use rational and practical approaches to make necessary arrangement for their health care service.

( b ) Assessment of management approaches to risk and uncertainty in decision making

Risk and uncertainty is harmful for each organisation to achieve their objectives in effective manner. There are number of elements to assess the risk of business. There are different ways to understand the potential uncertainty which affect the commercial functions of company.

Management skills

It is most crucial to identify the danger aspect which can affect the productivity of firm. It is essentials to top management to predict the future change that could be harmful for the organisation. Higher skills of decision-making and problem solving manage it after the occurrence of it. In the present scenario of NHS have experienced administration that can make adjustment in planning and policy to minimise the adverse impact though use their skills to develop strategies and implement it.

Employee’s feedback

The role of employees is crucial to meet organisational goal and objective with greater efficiency. It provides effective suggestions which help to management to take decision for the business to avoid the risk that affect the growth of company. In present scenario of NHS have trained and skilled employee who can forecast the requirement of change in business settlement. They have adequate knowledge of technical equipment that helps to easily adapt the technological change in machinery which is necessary to use in diagnosing the cause of sickness of patients.

Identification of market

It is crucial to assess the risk. The change in market helps to understand the future risk which can affect the business activities of the firm. It is importance to top management to predict the uncertainty of outside it is providing essentials information such as the competitors as well customer demand.

Situational analysis

It gives necessary data to forecast the current and future risk of the business which can impact on the organisation in negative. It is provides all data that can be use in making decision for organisation.

Role of stakeholders

stakeholders are those which helps an organisation to grow like shareholders, employees, workers and many more. So they help a firm to grow and survive for long run. Some risks which are associated with this concept is that if their attitude is positive then they help in success but their negative attitude harms the business. Shareholders can buyback their shares at any time or they can fluctuate the voting rights of an organisation by selling of their shares.

( c ) Effectiveness of organisational decisions

Rational Approach

The approach where organisation appeals their mangers due to comfort with every individual's behaviour and it is generally to avoid their complexity which forms in an organisation. This analysis is for among entire of an organisation which influences and motivate their employees and staff members of an organisation. It performs on the trends which an organisation works with freedom. They continue work on this approach so they feel easy to build block and forms flexibility and uncertainty. This is one reason which achieves their success and balances their position in market.

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Practical Approaches

Every individual in relationship which perform together in form of mixture and they work in the behalf of society. It is base and contemporary which is related to system approach. This is specified with innovative product and good ideas and the effective performance plans in an organisation. In this business may require success with effective facilities and real life situation and to develop the activities which were planned. They adopt this approach by applying various theory and they does practise on it as discussion, readings, assignments and to develop their behaviour relation and socially.


It refers to the analysis of the many terms like business competition, gathering the market data and consumers preferences to determine all their needs etc. So, it helps an organisation to use the corrective strategies in all these situation. Proper analysis made an organisation each and every task perfect and effective.

Game theory

It reflects the study of mathematical models of conflicts and cooperation between the rational intelligent decision makers. It helps an organisation decision maker to work effective and efficient with cooperation. Sometimes some conflicts may also arises because they all think that they are superior.


The above analysis had been concluded that organisation behaviour is important for the each and every business organisation. In this different types of leadership theory along with its impact on the organisation, furthermore is described the various management styles such as the autocratic and democratic both have direct impact on the business function. After then it has been evaluated that different organisational structures and cultures together its impact on the effectiveness of teamwork and company. In this various approaches of decision-making had been highlighted and factors of assessment of risk and uncertainty.


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  • Arthaud-Day and, 2012. Direct and contextual effects of individual values on organizational citizenship behavior in teams. Journal of Applied Psychology.
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  • Blader, S.L. and Tyler, T.R., 2009. Testing and extending the group engagement model: linkages between social identity, procedural justice, economic outcomes, and extrarole behavior. Journal of Applied Psychology.
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