Organization behavior

Factors responsible in organization behavior

Introduction To Organization Behavior

Importance of organizational behavior is increasing day by day in this global competitive environment because it has become very crucial for firms to perform well and in most appropriate manner. Behavior of organizations can be defined as methodological study of human behavior that consists of different groups, teams, management and leaders. It is also called as very broad concept because directly or indirectly it has its impact on whole organization. In this report, behavior of employees has been discussed in terms of methods to increase their performance, leadership styles that should be adopted, decision making theories, etc.

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Task 1

1.1 Evaluation of the leadership theories

Importance of leadership is very critical in organization because a good leader leads the organization in a positive direction by fulfilling all its goals and objectives. Some leadership theories are-

Trait Theories- There is great number of people who believes in this particular theory and according to it, leaders are born but still they can be developed by giving proper training and guidance as it will increase their competence. Li (2012) said that a person should have self confidence, courage, risk taking abilities to lead an organization.

Participative Theory- As per this theory that can take the help, advice and input of other people in account while leading is called as an ideal one. According to Forshaw (2006) it is very critical for all leaders to encourage their employees in a positive order which can make them committed towards organization.

Great Man Theories- Mcshane (2011) identified that leaders are born and no one can make a person leader by giving training or guidance. According to author, leaders are portrayed as people who have heroic abilities and they are born to become a leader. One of the main weaknesses of this theory is that, it does not believe in training or guiding and rely on existing talent of people.

FedEx is one of the most popular logistics and Courier Company in the world which operates in more than 50 countries. It can be said that company follows participative leadership theory in which all employees are given proper training and guidance so that they can be developed into future leaders.

1.2 Impact of managerial styles on the organizational effectiveness

There are different numbers of management styles and each of them has different effect on the performance of both employees and organization. Some managerial styles that are used in organizations are-

Autocratic Style- According to Carmeli (2005) this style is also known to be as very robust because all the power rest in hands of leader in company. Employees are not at all included in any kind of decision making process and they are just given directions. There are very strict rules and regulations in company and it is very critical for everyone to follow them. Motivation of employees is very low in this style and because of it they are not able to perform well too.

Democratic Style- It is called as one of the best styles of management in which all employees are given fair chance and opportunity to prove themselves. As per Ruiz (2004) they are included in all decision making processes of organization and various programs are also organized to keep their morale boosted up. This style is followed in FedEx under its leader FW Smith and it has helped the organization to increase the performance of employees in a very positive way.

Laissez Faire Style- As per this style, Organization believes in developing employees as a future leader so that they can lead the organization in better manner. Employees are allowed to take decisions and responsibilities and a manager is assigned which notice each and every action of employees so that if any mistake is made than it could be corrected. According to Parikh (2010) it increases the motivation level of employees to a very high point and helps them to perform better.

After understanding all these theories, it can be said that all these managerial styles have great impact on the effectiveness in organization as if the style that has been followed is good then it will motivate employees and will force to work hard in most appropriate manner. It can also be said that if manager will possess good managerial style, he will be able to understand and guide the employees in effective manner and also all the employees will trust him and try to follow his guidelines and vision in respect of the organization. On the other hand, if the managerial style is not proper that it directly has negative effect on the working of organization in or the other ways. Motivation of the employees will be very low and they will not be able to follow the guidelines of manager in the best possible ways. Mission and vision of the company will also not be followed and all the aims and objective that have been set will not fulfill.

1.3 Role of motivational theories in increasing employee motivation

Some motivation theories that help in increasing motivation of employees are-

ERG Theory of Motivation- It is one of the best kinds of motivation theory which is also called as extension of Maslow’s Hierarchy of Needs Theory. As per this theory, there are three kinds of needs that employees’ ants to fulfill and those are existence, relatedness and growth needs (Taber, 2010). Existence needs say that employees would like organization to fulfill its basic needs which includes job security, respect, recognition, etc. Relatedness needs includes aspiration that employees have in order to maintain significant interpersonal relationships. At last Growth needs states that organization should help employees to develop themselves in terms of personal and career growth. FedEx like to follow this kind of theory because it covers all aspects of employees and force them to perform better (Smith, 2006).

Vroom Expectancy Theory- As per this theory, performance of employees is directly related to different factors like personality, skills, knowledge, experiences and abilities. Company analyzes all its employees and then creates strategies so that proper benefits can be given to them. This theory is also divided in three categories which are called as expectancy, instrumental and valence. All these help organization to improve efficiency, efforts and performance of employees in different manner (Shapira, 2002).

These two are some of the most important motivational theories and both of them has a great effect on increasing the motivation of employees in different ways. As discussed above, if these theories are followed, managers as well as management is able to understand the needs and demands of the employees in much better manner which allows them to act in such manner that helps employees to fulfill all their desires. As per Li (2012) it is a fact that each and every employee has different needs and fulfilling them is very difficult for company so all these theories helps organization to create an environment in which the needs of each and every employee is taken care of and they are encouraged to work in much better manner. It also allows company to train all their employees and make them efficient which in turn increases motivation.

1.4 Theories relating to work relationships and interaction

It has become very crucial to create positive relationships at workforce because competition among employees is increasing day by day in order to gain leadership positions in organizations. These theories allow organization to increase effectiveness of employees as well as company. One of the best theories that company can adopt is human relationship theory in which focus of company is to maintain relationship between top level management of organization with employees. It allows them to work together by proper understanding and fulfill all goals and objectives in proper manner (French, 2011). Various efforts are also made to increase interaction between both parties so that all issues can be solved that are related to management.
Another theory that is used in organizations are called as Fayol Classic Administration theory in which management divides organization in to different departments and all employees are given work as per their specifications. After this, all employees from different department are club together and divided into teams and then task is given to them. It increases diversity and cross cultural environment in organization (Parikh, 2010).

Theory that FedEx follows is called as Social Constructivism in which efforts are made to improve relationship between management and employees. It allows employees to interact with them so that they can share all their feeling and decisions related to work. It also promotes learning environment in organization.

After, analyzing all these theories it can be said that all these theories are very much apt and they all have one function and that is to improve the relation between the top management, employees by increasing their interactions and forcing them to work in much better manner. These theories allow top management of company to understand different needs and demands of the employees, trade unions and help both the parties to come to point of negotiation where both of these parties can enjoy a win-win situation. Further, these theories also help employees to create strong relations with each other which is unacademically written. Very much important for a healthy working environment. Different types of feeling and relations are shared among the employees which is very much necessary for the growth of company as well the employees too.

Task 2

2.1 Characteristics of different organizational structure

It can be defined as typical arrangement of line of authority, rights, duties and proper communication of an organization. There are different types of organizational structure which are-
Hierarchal Structure- It is a type of structure in which there are different levels one above other in an organization. Most important characteristic of this particular structure is that it allows the employees to develop themselves by providing them different opportunity to prove themselves (Pettinger, 2013). It also makes them specialist in one or other field. One negative characteristic of this structure is that communication is not effective in different departments. If this particular structure is followed in proper manner, it allows company to streamline all their work in much better which is very important in an organization.

Divisional Organizational Structure- This particular structure provides larger businesses enterprises ability to segregate large sections of company’s business into semi autonomous groups. Organizations are divided into different sections which allow them to focus on a single product or service with a perfect leadership structure that support all objectives of company. One of the main negative characteristic associated with this particular structure is that it allows office politics instead of sound strategic thinking than can help organizations. This particular structure is good for some organizations as because of its main characteristic which is that it allows focusing on a particular task is good but on the other hand because of this characteristic some tasks in the organization remain neglected.

Flat Hierarchical Structure- In this type of Structure Company has very less or in fact no levels of management (Cooper, 2007). Staff is encouraged to fulfill all their duties in order to create proper learning environment in organization. Also, because of less management levels, communication between employees is very effective. As per its characteristic, company does not take efforts to supervise staff. This structure is present mostly in small organization because of its characteristics that are presented above.

2.2 Importance of organizational cultural theory in developing its effectiveness

Organization culture is very important as it leads the organization into right direction and improves relationship and working of employees in most effective manner. There are different types of organizational structure like power culture in which all powers rest in hands of leaders and he gives direction to employees, task culture in which work in company is divided in to task and all employees try to complete their part in the best manner, person culture in which main aim of organization is to help people so that they can be developed in appropriate manner (Brewis, 2007).
Other than the culture there are some cultural theories also which guides organization in right direction-

Benevolent Authoritative theory- It allows company to create good and healthy culture which encourages all employees to work hard. Also, proper rewards are given to them so their efficiency levels can be increased.

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Henry Mintzberg Cultural Theory- FedEx follows this type of cultural theory because it allows organization to bring innovativeness and professionalism in employees as well as in managers which allow them to fulfill all goals and objectives in proper manner. Role of every employee is clear to them and they all work together to provide efficient and desired results (McGinnis, n.d).

Consultative Theory- It allows top management to listen to all problems and ideas of employees very carefully which allows them to develop a learning and innovative culture. It also motivates employees so that they can remain stick to their job.

From all the above theories it can be evaluated that organizational culture theories are very important in developing the effectiveness in organization because it allows management to create an environment in the company where all the needs and demands of the employees are taken care of and they are properly encouraged to work in much better manner. It also helps employees to train themselves in much better manner which increases their skills and then they are able to work in much effective manner for the organization. Because of this good guttural theories, role of every employee is clear to them which allow them to focus on their work in effective manner and due to it all the goals and objectives of company are fulfilled as per the desires of top management.

2.3 Organization culture and structure of FedEx

FedEx is one of the most reputed and fastest growing companies in the world that deals in courier industry. Main aim of company is to provide timely and proper delivery of all goods and services. Because of the competitiveness in market, it is very important for company to have good and effective organizational structure so that they can fulfill all their goals and objectives. As per its work, company follows divisional structure in which whole organization is divided into different parts and employees work as per their specializations (Ruiz, 2004). This particular structure has made company very flexible which allows them to change their strategies as per market conditions. All departments are well aware of their responsibilities and they try to work without any hesitation. It has helped organization to focus more on people which has developed their good relationship with company.

Other than structure, importance of culture cannot be neglected and FedEx follows task culture. It has helped organization to do all tasks in proper manner because each person is given work as per his or her specializations which makes it easy for them to do it in proper manner. This culture is very innovative which allows company to fulfill all needs and demands of people and in proper manner.


3.1 Supporting innovation and creativity in an organization

The innovation and creativity is considered to be an important element in the success of organization. The significance that innovation and creativity plays in organizations' success and its achievement of goal cannot be ignored. It is through innovative and creative ideas that the business unit is able to distinguish itself from its competitors. The ways through which organization is able to involve innovation and creativity is listed below in details:

Employees' participation: The organization can improve participation of employees so as to have different set of ideas for expansion and development (Krakel, 2007). The employees are an integral part of organization that possesses an in-depth idea of its operations. Therefore, they are considered to provide suggestions that support expansion of business activities.

Working from creative edge: The employees should be encouraged towards creative thinking by providing them different platforms. The management approach towards operations should be flexible in nature.Fedex can involve its employees and provide them complete space for encouraging its innovative thinking.

Hiring individuals with creativity and leadership qualities: The business unit can adopt practice to hire individuals with high creativity (Marchington and Wilkinson, 2008). This in turn ensures that challenges at organization can be resolved with ease through employees' involvement in decision making process.

Research and development: The business unit is able to innovate and bring certain new techniques and features through continuous research and development activities. It can be said that the research and development will help the business unit to expand its operations.

Market research: The continuous market research will help the organization to enter into new product development. The business unit will get an idea of direction in which innovation is to be carried. Henceforth, market research plays an important role in supporting strategies for innovation within the organization.
Industry analysis: The continuous evaluation and analysis of industry will help the organization to identify industry trends. It can be said that the evaluation of competitors’ strategies and industry trends help in bringing up the required innovation.

Brainstorming: The organization is able to bring up innovations by organizing brain storming sessions. It can be said that the continuous brain storming will help in understanding capabilities of the organization and bring up the innovation.

Collaboration with competitors: The collaboration with competitors helps business unit to take advantage of strengths possessed by competitors. It is through collaboration with competitors that the organization is able to bring up innovations on timely basis.

It is seen that innovation is highly important in present world and the organization can promote innovation through various ways as discussed above. It can be said that the business unit is able to achieve success and bring up innovations through support of one of the above strategies.

3.2 Significance of learning in an organization

Individuals are considered to be in the process of learning at every phase of life. Organization is said to conduct its operations with support of its employees who needs to acquire new skills and talent from time-to-time. In modern era, the concept of creative learning has emerged in business world. It emphasizes on development of new ideas and plans to be implemented for the success of organization. The businesses in present world tend to provide a complete sense of flexibility for giving sufficient room to their creativity (Ordiz and et,al., 2003). The employees learning are considered to contribute significantly towards the success of organization. It is seen that it is through continuous learning that employees are able to develop their personal skills and talent. Moreover, they are able to create value for the organization in an efficient manner. The learning is a process that not only helps in improving technical skills but also develops overall personality of an individual. It is said that an individual contributes towards operations in organization till they are under process of learning. It can be therefore said that learning helps in providing support to organization's activities and achievement of its goals. The learning is considered to be highly beneficial for the business unit due to following reasons:

Development of employees: It is through continuous training and development programs that overall personality of employees develops. It can be said that the continuous learning helps not only in increasing knowledge of employees but also develops overall personality.

Greater level of motivation: The motivation level among employees increases with training and development programs. The continuous learning will help in developing a sense of achievement. Henceforth, motivates employees for future endeavors of individual or the organization at whole.

Highly creative workforce: The creativity among workforce increases with continuous learning programs among individuals.

Increases flexibility: The learning and development program helps in increasing degree of flexibility among employees. It can be said that learning imparts way to complete all assigned tasks effectively in specified duration. Henceforth, flexibility among employees increases with continuous training and development programs.

3.3 Evaluation of effectiveness of team working

Team building and team work is process that has gained huge significance in present world. The organization is able to achieve its goals through combined efforts of group of people. It is through directed efforts of group that the business unit is able to achieve co-ordination between team activities (Mcshane, 2011). Moreover, employees are able to contribute efficiently only when work within a team is co-ordinate in an efficient manner. The organization is said to be managed by large number of people. It is through creation of small teams that the business unit is able to achieve efficiency and work in a co-ordinate manner. Fedex has recognized the importance of team work and therefore manage its operations by creation of small teams. It is through development of teams and proper co-ordination among them that origination is able to achieve excellence and beat competition prevailing in the environment.

In order to evaluate effectiveness of teamwork the management needs to adopt various strategies and programs. The organization can adopt strategy to continuously monitor all the activities. It is through continuous monitoring that the business unit is able to identify loopholes. Moreover, the organization can judge the performance of group of people working as a team. In order to evaluate effectiveness of team working the business unit can compare performance of individuals’ performance with that of team. It is essential for the organization to understand importance of team working so as to support business growth for long run.

3.4 Change management in organization

The change management is an important element for the organization so as to support its activities in different parts of world. The business unit can achieve change management by recognizing the culture at different places. Moreover, the employees are motivated to support activities in different countries. The business unit should properly communicate its objectives and plans to all its employees (Tremaine, 2002).

The change management although is a complicated process can be implemented in an efficient manner through proper planning and formulation of strategies. It is also the responsibility of management to make employees aware of all new policies and changes to be implemented in future. This in turn helps in getting their support for the purpose of growth and development of business unit.

Once the change management is introduced in the organization it is essential to evaluate its effectiveness. The business unit should judge employees’ performance; level of motivation after the change is brought up. Moreover, the organization can assess overall performance so as to ascertain the effectiveness of change. The business unit should evaluate whether the change brought up has affected the operations at large. Moreover, the organization can judge whether the change brought up has affected operations in a positive manner or not. It can be said that the business unit should conduct an in-depth evaluation so as to understand effectiveness of change management.


4.1 Approaches for decision making process in organization

The organization can adopt different approaches for the purpose of supporting its decision making process as listed below.

Descriptive approach: As per the descriptive approach; different set of hypothesis are tested and created for the purpose of deciding best course of action for future (Tremaine, 2002). The approach helps business unit to be consumer centric and develop offerings as per their requirement.

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Rational approach: The approach is considered to be based on logical grounds that emphasizes on collection of data and its evaluation through statistical techniques.
Normative approach: It is the approach that emphasizes on selection of suitable course of action from the range of alternatives available (Neff, 2006). The approach helps an origination to plan strategy that is beneficial in long run.

4.2 Approaches for handling risk and uncertainty in decision making

The organization can adopt different approaches fort managing risk and uncertainty that arises as a part of decision making process. One of approach that the business unit can adopt is rational comprehensive approach (Gabrielson, Darling and Seristo, 2009). The concept suggests that organization can adopt different ways to provide solution for uncertain events in future. Moreover, in-depth cost benefit analysis should be adopted so as to adopt implement rational comprehensive approach. Another important approach that can be adopted by organization is Statistical decision that emphasizes on identifying errors that result in risk. The errors should be eliminated for the purpose of taking minimizing the chances of risk. In order to minimize the effects of risk and uncertainty in decision making the business unit should consider following approaches:

Risk evaluation: The evaluation of risk prevailing within market at various stages of business development should be evaluated deeply. The continuous evaluation of risk will help in adopting measures so as to achieve growth in future.

Forecasting: The forecasting technique will help in estimating the revenue that can be generated on part of business unit. It can be said that the forecasting will help in planning business activities in an efficient manner.

Planning: The continuous planning on part of management will help in formulating successful strategies for future. Moreover, the organization is able to plan strategies for mitigating the risk that forms the part of future uncertainty.

4.3 Efficiency of organization decision making process

The Fedex as one of leading organizations within industry is considered to be efficient in decision making process. The organization has identified various suitable approaches that can be implemented for the purpose of achieving efficiency in long run. It can be said that FedEx is able to imbibe efficiency by allowing employees to participate in decision making process. Moreover, the organization adopts practice to identify loopholes into the system and error in its operations (Eisele and et.all., 2013). This in turn results in implementing strategies that helps organization to minimize errors and variances into the system.

This in turn helps in imbibing excellence at work place by devising successful strategies. The business unit is expected to occupy prominent position by involving into decision making process is highly effective in nature. The organization understands importance of the same and plans its future course of action in a proficient manner.

The management decision for allowing participative leadership has proved to be highly effective for Fedex. The business unit is able to conduct operations in an effective manner and achieve growth by way of allowing its employees in decision making process. The management decision to manage work in a co-ordinate manner proves to be highly effective in nature. It can be said that the organization had adopted appropriate strategy for the purpose of expanding or growing business operations.


The report presented herewith emphasizes on evaluating case for Fedex on the basis of various theories of organizational behavior. The report brings forth fact that FedEx is efficient in conducting its operations and adopts approaches that lead to achievement of its goals. It suggests that the business unit adopts wider view in deciding its strategies so as to satisfy need of its stakeholders.


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