Organization Behavior

General Description of the Organization Behavior

Introduction to Organization Behavior

Organization behaviour defines the way of people according to which they perform in group as well as in teams. It clearly describes the interaction of people within the group. This report is based on the hospitality industry under which Thomas Cook is taken into consideration. It is one of the largest tours and travel operators of UK. They owns number of tour operators as well as airline services. Furthermore, the present report is based on the study of human behaviour within the organizational setting. It also examines the current theories and their application in managing behaviour in the workplace in relations to leadership theories. Whole study presents the effective leadership behaviour theory within the workplace and practice through which effectiveness of organization can be maintained.

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Evaluation of the leadership theories

In any organization it is quite essential to carry out the whole business activities as well as operations in an effective manner. For this, appropriate leadership need to be followed by company. It is a process in which a person gives guidance to all his subordinates so that they can take appropriate action (Pasquier and Villeneuve, 2007). For this, different organizations follow different leadership theories such as:

Great Man Theories

This theory determines that leaders are born, not bad. They already have all those leadership qualities which an organization is looking for. It defines that great leaders already have all those characteristics that will not found in the rest of population.

Trait Theories

According to this theory, people need proper guidance and training to support their capabilities and skills. In addition to this, it is essential to have several qualities in a person to become a good leader. It states that a person must have courage and self confidence to lead a team.

Participative Theories

These type or leaders and people take suggestions as well as advice of other people (Arvinen-Muondo and Perkins, 2013). They involved their team members into the decision making process so that they will feel committed towards their organization.

Thomas Cook is British Global Luxury Travel Company of UK. The organization is also listed in London stock exchange. One of the main targets of company is to provide high quality services to all their customers. They believe in following participative leadership theory by which they involve all their employees in decision making process. It helps in creating faith as well as trust for the leader in the mindset of all the customers. By following this theory, leader treat everyone with proper respect through which workers feels motivated and try hard to achieve their company’s objectives.

Impact of managerial styles on the organizational effectiveness

Different organization follows different management styles through which they can affect the overall performance of employees as well as company. These styles are having different impact on the effectiveness of organization such as:

Autocratic style

In this style all the managerial activities are lead by leader only. This type of leaders do not involve employees into the decision making process as they follows all the rules and regulations very strictly. In this type of leadership, motivation level is very low due to which they are not able to perform effectively. Further, it might leads to develop negative effect on the quality of products. In this way, it can be stated that autocratic leadership has a huge impact on the effectiveness of organization.

Democratic leadership

This management style and approach is considered as a most effective style. In this, all the employees are involved in the decision making process of company through which they feel motivated and perform all their tasks in an effective manner. Thomas Cook follows democratic management styles and as a result they provide high quality services to their customers (Buchanan and Huczynski, 2013). In this way, it can be stated that this management styles might leads to increasing market share as well as sales of organization. It affects the organizational effectiveness in a positive manner.

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Laissez Faire Style

It is the last style of management in which managers wants their workers to learn and grow. It is the best effective management style under which people learn by taking several responsibilities and becomes efficient leader in future.

Role of motivational theories in increasing employee motivation

In any organization it is becoming crucial tasks for company to encourage their employee’s performance. There are various motivational theories followed by company through which they can enhance the level of their employee motivation. Different motivational theories are as follows:

McClelland’s Theory of Motivation

This theory lies under the most important and effective category. There are mainly three things i.e. achievement, power and affiliation which is provided to employees. Further, this theory also helps in developing positive relationship with management. With the help of this theory manager of Thomas Cook is able to take proper decision in terms of delegation of responsibilities to the subordinates. This theory highly motivates the satisfaction level of employees due to the flexibility.

Vroom Expectancy Theory

This is another type of motivational theory in which whole performance of workers are judge by different factors such as personality, skills, knowledge, experiences and the abilities. Thomas Cook uses this motivation theory through which they can analyze their workers as well as their performance. This type of theory is having various subcategories i.e. as expectancy, instrumental and the valence. With the help of this factor performance of staff members can be improved and they can prove them in a best possible way.

Theories relating to work relationships and interaction

One of the most important tasks of any organization is to create better relationship among workers as well as management team of company. Interaction is the most important concern as well as essential part of any organization. With the help of developing positive relation better working environment can be developed. In order to maintain relationship among management and employees there are various theories which might takes place such as:

Human relationship theory

According to this theory top level management workers as well as employees works together to achieve any single goal and objective of company (Perkins and Arvinen-Muondo, 2013). Several efforts might takes place in this type of theory through which overall interaction can be enhanced by resolving various issues related to the management.

Fayol Classic Administration theory

As per this theory different responsibilities have been assigned to all delegate authorities as per their specification. Various tasks have been assigned to different workers in the different departments as well. Further, this theory increases the cross cultural environment in the company.

Social constructivism theory

According to this theory, company is tried to maintain good relations between management as well as employees. Under this theory, employees feel motivated and easily learn various things. It is the best way through which healthy working environment can be maintained.

Analysis of the culture and structure in Thomas Cook

There are various ways through which organisation can improve employee effectiveness to respond to business opportunities. Different companies follow different structures as well and culture. Here, in this study Thomas Cook is taken into consideration which is one of the fastest growing industries. They are the leading travellers of UK and provide high class services to their customers. It is essential for them to set appropriate structure for their company (Perkins and Arvinen-Muondo, 2013). There are different departments in company and all of them are responsible for different work. Due to this, Thomas Cook follows divisional structure under which all the workers work with full dedication as per their department’s responsibility. As per this structure, all the departments work individually without interrupting in between each other. In addition to this, management team can make quick decisions regarding the changes as per the market condition. This type of structure highly impact the overall effectiveness of company as employees try to perform best within their division and provide high quality services to their customers.

On the other hand, organization culture is also considered as a most effective part through which company can develop the sense of positivity among all their workers. There are different types of culture in an organization in which Thomas Cook follows normative culture in which all the employees need as well as management people strictly adhere to all the policies of company. It develops a sense of humanity without any type of discrimination in an organization. It is the best effective way through which company can maintain friendly work culture and all the employees’ works in an ideal way.

Moreover, it can be stated that both culture and structure directly impact the productivity and effectiveness of business operations of company. With the help of following appropriate structure and culture companies can easily enhance their sales by developing individual capabilities and integration between employees and management.

Analysis of different approaches to organisational decision making

Decision making is considered as a most effective and important approach through which company can leads towards the success. It is the major responsibility of management team of Thomas Cook to take several effective decisions in order to attain higher competitive advantage. For this they need to adopt best approach of decision. Further, there are different approaches of organizational decision making such as:

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Rational approach

Under this approach, numerical and mathematical analysis tool is being applied in order to identify several problems. At the time of implementation of any plan the whole problem and need is identified and alternatives are selected for best plan. This is the best decision making approach which can be used by Thomas Cook. With the help of this approach whole quantitative data is obtained and appropriate resources can be used.

Descriptive approach

According to this approach behavior of people is taken into consideration. In this, hypothesis is being framed and on the basis of this hypothesis company can fulfill various needs and demands of their customers.

Behavioral approach

With the help of using this approach company can easily provide all the relevant information to their employees about their company’s objectives (Kondalkar, 2007). In addition to this, all the staff members can work together and easily achieve the target of company within the best interest of organization.

Assessments of management approaches to risk and uncertainty in decision making

There are different management approaches such as human behavior approach as well as various other approaches through which company can easily maintain risk and uncertainty in between all their decision making process. Among all the approaches, rational comprehensive approach is considered as a most effective one. It defines that there are there are very much possible ways to have a solution of every unforeseen event. Further, company need to prepare the best possible solution at the time of taking any type of risk and uncertainty.

In addition to this, one of the most common approaches of management is to identify the different types of risks in decision making is statistical decision theory. With the help of this theory company can easily identify and raise the issues that might occur in an organization. In this type 1 error includes probabilities of right outcomes and type 2 is based on the rational decisions. With the help of this model all the stakeholders are able to attain higher success and easily perform all their tasks more effectively. Further, it can be stated that with the help of such type of management approaches company can easily minimize the chances of risks as well. In this way, company can address various needs of the stakeholder and also handle several types of risks easily.

Evaluation of the effectiveness of organisational decisions in Thomas Cook

Thomas Cook takes into consideration range of techniques for the purpose of deciding appropriate course of action. The organization takes into consideration all the alternative decision and conducts an in-depth analysis. The proper analysis in turn helps in identifying the most suitable and viable course of action for future. The decision making process emphasizes on evaluating threats, access and vulnerability. Moreover, risk factor is also prioritized for the purpose of selection of suitable course of action. It is through prioritization of risk that the decision taken is justified by the organization (Martin, 2005). The organization emphasizes on capturing all the opportunities existing in market place. Moreover, the emphasis is laid on reducing cost of operations. The rational decision making approach is adopted so as to formulate effective strategies. Thomas cook has correctively identified all risks. Moreover, the effective strategies are formulated by taking into consideration all the relevant information.


With the help of the above study it can be articulated that it is essential for Thomas Cook to adopt some of the best leadership styles. With the help of these styles company can easily achieve their target. Thomas Cook follows autocratic leadership style as well as vroom’s expectation of motivation theory. These are the best theories through which employees can work with full potential. It is very essential for them to take effective decisions through which overall performance can be enhanced.


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