UNIT:

ORGANISATIONAL
BEHAVIOUR
UNIT A/615/2680
LEVEL 7 - 15 CREDITS

Submitted by:

Task 1 – Written Portfolio You must prepare a portfolio of evidence which includes:

 An analysis of the characteristics of different organizational structures

 An explanation of how the culture of an organization can impact on the effectiveness of the organization

 An assessment of the impact of learning on the effectiveness of employees

 An evaluation of how working in teams can improve employee effectiveness.

Extension activities:
To gain a merit grade you must also include in your portfolio:

 Analysis of how different leadership behavior’s impact on organizations.

To gain a distinction grade you must also include in your portfolio:

 Analyses of the process and outcomes of change on the effectiveness of employees.

LO2 AC 2.1, 2.2 LO3 AC 3.1, 3.2 1M1 3D1

1.1 - An analysis of the characteristics of different organizational structures

Organizational structure is a significant aspect in determining an organization's success. It is a method of

organizing and coordinating an organization's actions in order to attain its goals. In this paper we will
examine the features of various organizational structures and their influence on organizational
performance. The paper investigates the functional, divisional, matrix, network, and hybrid organizational
structures and finds the benefits and drawbacks of each & how these structures may help achieve various
strategic goals, such as cost leadership, differentiation, or innovation.

1. Centralized Vs. Decentralized Structure

When designing the structure it should be taken into consideration if the organization should have
centralized or decentralized structure depending on its strategic goals.

1.1 Centralized Structure (Mechanistic):

In a centralized organizational system, there are very clear responsibilities for each role, bureaucracy
will use tools such as SOP’s or written policies to set expectation for employees. The subordinate
depend on manager guidance to stay aligned with overall organizational goals. Mechanistic organization
tend to have strong degree of specialization with consistency & clear precision E.g. the military is an
organization famous for its highly centralized structure

1.2 Decentralized Structure (Organic):

Whereas decentralized structure tend to have loosely defined roles & responsibility .The structure relies
on employee to self-organize & make decisions while defining for themselves the role they wish to fill.
The employee adapt to quickly changing circumstances without much direction. Organic organization
tend to be innovative allow them remain fast, agile, and adaptable. E.g. Technology startups, Johnson &
Johnson is a company that's known for its decentralized structure.

2. Types of Organizational Structure

In this section we will be discussing the different types of structures and their characteristics & the role
these structure play in strategy implementation.

2.1 Functional Organizational Structure:

This is the most common type of organizational structure, especially in small to medium-sized enterprises
In this structure, the organization are segregated into departments based on functions, such as marketing,
finance, operations, and human resources. Each department is responsible for its specific function, and
employees are organized according area of competence. A functional organization has several advantages,
including specialization, efficiency, and clear lines of authority. However, it can lead to a lack of
cooperation between departments and a focus on departmental goals rather than the overall broader goals
of the organization.

2.2 Divisional Organizational Structure:

This structure is common in large organizations that have multiple product lines or geographic locations.
In this structure, the organization is divided into divisions based on products, services, or geographic
regions. Each division operates as a separate entity, with its own functional departments such as
marketing, finance, and operations. The advantages of a divisional structure include flexibility, focus on
specific products or regions & quick respond to changes in the market. However this can also lead to
people focusing more on their part of organization as they fail to understand broader organization
strategy. In this structure there is lack of coordination & communication between divisions.

2.3 Matrix Organizational Structure:

To overcome the shortcoming of divisional structure, matrix organizational structure is setup it is

common in organizations that operate in complex environments, such as divisions divided based on
products, services, geographic regions or research and development organizations. In this structure,
employees are assigned to both functional departments and geographic project teams. The advantages of a
matrix structure include flexibility, collaboration, and a focus on both functional and geographic project
teams leading to better communication. However, it can also lead to conflicts between functional and
geographic project managers, and a lack of clarity in lines of authority.

2.4 Network Organizational Structure:

Organizations that rely on partnerships and alliances to achieve their goals implement this structure. The
organizations collaborate to achieve a shared purpose under this framework. The advantages of a network
structure include flexibility, the ability to leverage the expertise of partners, and a focus on the overall
goal rather than individual organizations. However, it can lead to a lack of control and coordination, and
the potential for conflicts between partners. E.g. open innovation, where several partners work on a
project to develop a product but has no clarity on the patent percentage & profit sharing.

2.5 Hybrid Organizational Structure

A hybrid organizational structure is one that combines two or more organizational systems. A company,
for example, may utilize a functional structure for its core activities but a matrix structure for its research
and development initiatives. Flexibility, the capacity to utilize the strengths of diverse designs, and the
ability to adapt to changing conditions are all advantages of a hybrid structure. However, it can lead to
complexity and a lack of clarity in power structures.

Organizational
Structure Benefits Drawbacks

Limited communication and coordination across

Specialization and efficiency in
Functional functions; slow decision-making; difficulty
each function
adapting to changes in the market
Divisional Clear accountability for each Duplication of efforts and resources; potential
product or geographic unit; for lack of coordination and standardization
 flexibility and responsiveness to across units; competition for resources among
local needs units
Cross-functional collaboration Complex and potentially confusing reporting
and communication; flexibility relationships; potential for power struggles and
Matrix
to adjust resources and skills as conflicts between functional and product
needed managers; difficult to implement and maintain
Empowerment and engagement Potential for lack of coordination and
of employees; collaboration and standardization across teams; potential for
Team based
creativity; flexibility and confusion and duplication of efforts; unclear
adaptability lines of authority and accountability
Table 1: outlines the benefits and drawbacks of different organizational structures.

1.2 - An explanation of how the culture of an organization can impact on the effectiveness of the
organization.

Corporate culture is a term that describe the character of a company which refers to the values, beliefs,
and behaviors that determine how a company's employees and management interact, perform, and
handle business transactions. Corporate culture is influenced by national cultures and traditions,

economic trends, international trade, company size, and products. The term "corporate culture" was
developed in the early 1980s and became widely known by the 1990s.Often, corporate culture is
implied, not expressly defined, and develops organically over time from the cumulative traits of the
people that the company hires For instance, corporate culture might be reflected in the way a corporation
hires and promotes employees, or in its corporate mission statement.

1. How organizational culture are formed

The culture of an organization is heavily impacted by its founders, who have a vision of what the
organization should be and may push their ideas and views on other members. The founders' actions
might serve as a role model, enabling workers to identify with them and absorb their ideas. This can have
a long-term influence on the organization's performance, as the founders' personalities become ingrained
in the culture. Culture may be developed in three ways: recruiting and retaining workers who believe and
feel the same way, indoctrinating and socializing people to the founders' way of thinking and feeling, and
the founders' conduct serving as a role model.

For example, Microsoft’s culture is largely a reflection of its co-founder, chair, and chief software
architect (and former CEO), Bill Gates. Gates is personally aggressive, competitive, and highly
disciplined. Those are the same characteristics often used to describe the software giant he founded.

Figure 1: Organization Culture Formation

2. Types of Corporate Culture

There are different types of culture in different organization & these cultures have a profound impact on
the effectiveness of the organization. In this section we will discuss various culture type.

2.1 Clan Culture

Clan cultures are about teamwork and collaboration. In such a culture, those in management function as
enthusiastic mentors who provide guidance to subordinates. Good relationships, encouragement, trust,
and participation are key aspects. The contribution potential of every employee is a component of a clan
culture. Also, clan culture can easily adapt to change and implement needed action quickly.

2.2 Adhocracy Culture

Adhocracy culture creates an entrepreneurial workplace in which executives and employees function as
innovators and risk-takers. In this flexible environment, agile thinking is nurtured. Employees are
encouraged to pursue their aspirational ideas and take action to achieve results that can advance company
goals. New and unconventional products and services are the main outcome of the adhocracy culture.

2.3 Market Culture

Market culture is focused on meeting specific targets and bottom line goals. This culture creates a
working environment that's competitive and demanding. Management is most interested in business
results. Employees are encouraged to work hard and "get the job done" to enhance a company's market
presence, profits, and stock price. While employees may feel stressed in such a workplace, they can also
feel enthusiastic and excited about their work.

2.4 Hierarchy Culture

A hierarchy culture is a traditional corporate culture that functions according to a company's executive,
management, and staff organizational structure. That is, it follows the chain of command from top down,
where executives oversee employees and their work efforts to meet specific goals. The hierarchy culture
prizes stability and conventional methods of operation The work environment can be seen as more rigid
than some other cultures but employees can clearly understand their roles and objectives. They may also
feel a sense of security because of the more conservative approach to running a company.

3. Impact of culture on the effectiveness of the organization

Corporate cultures, whether shaped intentionally or grown organically, express the core of a company’s
ideology and practice. They affect every aspect of a business, from each employee and customer to a
company's public image. In table below we will highlights the characteristics that the culture impacts &
how it affects the organization.

Characteristic Impact
Employee Positive culture can improve motivation, productivity, job satisfaction, and reduce
Engagement turnover.
Communication and A strong culture promotes open communication and collaboration among
Collaboration employees, leading to better teamwork and problem-solving.
 Innovation and A culture that values innovation and encourages experimentation can foster new
Creativity ideas and solutions to problems.
The culture of an organization can impact customer satisfaction. When employees
Customer are aligned around a common purpose and committed to providing excellent
Satisfaction customer service, customers are more likely to have positive experiences and
become loyal to the brand.
A positive culture can make an organization more adaptable and resilient to
Adaptability change. When employees are empowered and encouraged to learn and grow, they
are better equipped to handle new challenges and adapt to changing circumstances
Table 2: Culture impact on organization

Corporate culture is significant because it may help to achieve crucial corporate goals. Employees, for
example, may be drawn to firms with cultures with which they identify, which may boost employee
retention and new talent acquisition. Fostering a culture of innovation can be critical to maintaining a
competitive edge with respect to patents or other forms of intellectual property. Similarly, corporate
culture can also play a role in marketing the company to customers and to society at large, thereby
doubling as a form of public relations.

1.3 An assessment of the impact of learning on the effectiveness of employees

Organizations are increasingly concentrating on boosting the performance of their staff in today's
competitive business landscape. Investing in employee learning and development is one of the most
important methods to do this. Employee skills, knowledge, and talents may be increased via learning,
resulting in improved work performance and productivity. Learning may also improve problem-solving
abilities, decision-making abilities, and critical thinking abilities. Moreover, learning can improve
communication, collaboration, and teamwork, leading to increased productivity and better outcomes.
Learning can also lead to increased motivation, job satisfaction, and career development.

1. Improved knowledge and skills:

Employees grow increasingly proficient at fulfilling their work obligations as they gain new information
and abilities. Employees may be more productive as a result of their ability to execute jobs more
efficiently and effectively. Additionally, learning new skills can lead to better problem-solving abilities
and improved decision-making skills. Employees who are better equipped with knowledge and skills can
take on new responsibilities and challenges, leading to a more versatile and dynamic workforce.

2. Enhanced confidence:

Employees gain confidence in their talents as they gain new information and skills. Increased job
satisfaction, motivation, and engagement can result from this. When employees are confident in their
abilities, they are more likely to take initiative, be proactive, and take on new challenges. They are also
more likely to be engaged in their work and feel a sense of fulfillment and purpose.

3. Increased innovation:

Employees might be encouraged to think creatively and explore new ideas via learning. Employees may
be better equipped to discover chances for innovation and improvement if they have the opportunity to
learn about new technology, techniques, and procedures. Employees who are encouraged to think beyond
the box can help their firm remain ahead of the competition and preserve a competitive edge.

4. Better communication:

Learning may also help employees interact more effectively with coworkers, clients, and customers.
Successful communication is essential for the development and maintenance of relationships, and it may
lead to more effective teamwork and collaboration. Employees who are able to communicate clearly and
effectively are better able to work with others to achieve common goals.

5. Career advancement:

Employees can get the skills and information they need to advance in their professions via learning.
Organizations can retain top talent and secure a trained workforce for the future by investing in employee
development. Employees who have access to learning opportunities are more likely to feel appreciated
and supported, which may lead to increased job satisfaction and loyalty to their employer. Organizations
may foster a culture of growth and development by giving possibilities for professional progression,
which can help recruit and retain top personnel.

1.4 An evaluation of how working in teams can improve employee effectiveness.

As organizations have restructured to compete more effectively and efficiently, they have turned to teams
as a way to better use employee talents, evidence suggests that teams typically outperform individuals
when the tasks being done require multiple skills, judgment, and experience. As team have individual
from diverse backgrounds bringing a greater number of ideas, perspectives, knowledge, and skills to the
group.

A properly designed team will be self-managing that develop plans, assign roles, determine and allocate
resources, resolve conflicts, and set norms. Such teams have higher work performance and higher levels
of customer service than individuals.

A highly functional group depend on four contextual factors that appear to be most significantly related
to team performance, They are adequate resources, effective leadership, a climate of trust, and a
performance evaluation and reward system that reflects team contributions.

Members of the team report higher job satisfaction and higher team and organizational commitment than
people working under other systems. They have decreased absenteeism and turnover improved
communication, accountability & cohesiveness.

Creating a team does not lead magically to positive results. As well, merely calling a group a team will
not automatically increase its performance. Teams take time to form & function effectively. In this
section we will evaluate how team can improve employee effectiveness.

1. Increased productivity:

When employees work in teams, they can divide tasks among themselves and work more efficiently. By
sharing responsibilities, employees can complete tasks faster and meet deadlines more effectively.

2. Enhanced creativity and innovation:

When employees work in teams, they can bounce ideas off one another, share different perspectives, and
come up with new and innovative solutions to problems. This can lead to greater creativity and
innovation, as well as more effective problem-solving.

3. Improved communication:

Working in teams requires good communication skills. Employees must be able to communicate their
ideas clearly and effectively, listen to others' input, and collaborate to achieve common goals. This can
lead to improved communication skills and better working relationships.

4. Increased job satisfaction:

When employees work in teams, they may feel more supported and engaged in their work. They may also
feel a greater sense of ownership and pride in their work, leading to increased job satisfaction.
 5. Professional development:

Working in teams can also provide opportunities for employees to learn new skills and gain experience in
different areas. They may also be exposed to different working styles and perspectives, which can
broaden their horizons and enhance their professional development.

In conclusion, working in teams can be an effective way to improve employee effectiveness. By fostering
collaboration, creativity, and communication, teams can achieve better results than individuals working
alone.

1M1- Analysis of how different leadership behavior’s impact on organizations.

A leader is an individual who is the center or nucleus of group activity, an instrument of goal achievement
who has a certain personality, a form of persuasion and power, and the art of inducing compliance,
whereas leadership is an act or behavior where a leader influence a group of people to attain certain
mutual goals by developing a vision for the group, communicating that vision, orchestrating the group’s
energy and activity toward goal attainment.

Leader’s behaviors can have a significant impact on organizations. Different leadership styles can affect
the way employees perceive their work, interact with each other, and approach their goals. Here are some
examples of how different leadership behaviors can impact organizations:

1. Autocratic leadership:

The leader in an authoritarian leadership style takes all decisions without consulting the team. Because
they have little say in how things are done, employees may feel disempowered and disengaged. This style
can also lead to a lack of creativity and innovation since members of the team may be hesitant to share
their thoughts or comments.

2. Transformational leadership:

Transformational leaders inspire and motivate their team to achieve their goals. They focus on
developing their team members' skills and abilities, and encourage them to take on new challenges. This
can result in a highly engaged and motivated team, with high levels of productivity and job satisfaction.

3. Transactional leadership:

Transactional leaders focus on setting clear goals and objectives, and rewarding or punishing employees
based on their performance. This can lead to a highly results-oriented culture, where employees are
motivated by the prospect of rewards or afraid of punishment. However, it may not encourage creativity
or innovation, as employees may feel pressured to meet targets rather than taking risks.

4. Servant leadership:

Servant leaders prioritize the needs of their team members over their own needs. They focus on
supporting and developing their team, and creating a positive work environment. This can result in a
highly collaborative and supportive culture, with high levels of employee satisfaction and retention.

5. Laissez-faire leadership:
 In this leadership style, the leader provides minimal guidance or direction, leaving employees to make
their own decisions. This style can lead to a lack of accountability and direction, resulting in lower
productivity and overall performance.

Leadership Style Features Impact on Organizations

Leader makes all decisions Can lead to low motivation and creativity
Autocratic Little input or feedback from employees May result in disempowered and
High control and direction undervalued employees
Leader involves employees in decision- Can lead to higher employee satisfaction
making Encourages collaboration and teamwork
Democratic May result in disempowered and May be slow and inefficient in decision-
undervalued employees making
Encourages collaboration and teamwork
Inspires and motivates employees to Can lead to higher employee engagement
achieve goals Encourages innovation and creativity
Transformational Values innovation and creativity Can be idealistic or unrealistic
Creates a positive and engaging work
environment
Focuses on the needs and development of Can lead to higher employee satisfaction
employees Creates a supportive and empowering
Empowers employees to take ownership work culture
Servant
of their work May not be suitable for all organizational
Creates a supportive and empowering goals
work culture
Provides flexibility and autonomy to Can encourage creativity and innovation
employees Can lead to a lack of accountability and
Laissez-faire Encourages creativity and innovation direction
Values employee input and feedback Can lead to a lack of accountability and
direction
Table 3: Leadership Style feature & impact

Different leadership behaviors, in general, can have a major influence on company culture, employee
engagement, and productivity. Leaders must recognize their own style and its influence, as well as adjust
their approach to the demands of their team and the business as a whole.

1D1 - Analyses of the process and outcomes of change on the effectiveness of employees.
The movement that organizations take as they move from one state to a future state is called
organizational change. The future state can include a new strategy, changes in the organization’s culture,
introduction of a new technology decision processes, task design, and organizational design, and so on.
These are just a few examples of change.

Changes might be of many dimensions, levels, or perceptions. In this section, we will look at how
changes are perceived, executed, and how they affect employee effectiveness.

1. Perceptional Change

One common motivation for change is the perception, when a leader perceive that an organization may be
in some state of dysfunction that needs significant fixing, or is it in a state of high performance, where
there exists a need for refining and tweaking change will occur.

1.1 Deficit-based change

In this perceptional change the leader assume that the organization is in state of dysfunction that require
transformational change, in which the fundamental assumptions, beliefs, and organizing ideas of the
organization are altered. In this set of perceptions, the leader assume that employees will change if they
know they will otherwise face negative consequences.

1.2 Abundance-based change

A high-performing organization may require incremental change as the organization continues to build on
solid fundamentals to refine and add to its capacity for high performance. In this set of perceptions the
leaders assume that employees will change if they can be inspired to aim for greater degrees of excellence
in their work.

2. Scope of change

It refers to the degree to which the required change will disrupt current patterns and routines.

2.1 Incremental change

It refers to small refinements in current organizational practices or routines that do not challenge, but
rather build on or improve, existing aspects and practices within the organization. Common incremental
change practices are LEAN and Six Sigma, which are used to find relatively small changes that can
generate greater efficiencies in a process.
2.2 Transformational change

It refers to significant shifts in an organizational system that may cause significant disruption to some
underlying aspect of the organization, its processes, or structures Examples of transformational change
include organizational restructuring.

2.3 Strategic change

This change is either incremental or transformational, that helps align an organization’s operations with
its strategic mission and objectives. This kind of change is necessary for an organization to achieve the
focus in larger market or societal environment.

3. The level of change

It refers to the breadth of the systems that need to be changed within an organization.

3.1 Individual-level change

It focuses on how to help employees to improve some active aspect of their performance or the
knowledge they need to continue to contribute to the organization in an effective manner. Individual-level
change programs include leadership development, training, and performance management

3.2 Group-level change

This change centers on the relationships between people and usually focuses on helping people to work
more effectively together. Team development, or teambuilding, is one of the most common forms of a
team change process.

3.3 Organization-level change

It is a change that affects an entire organizational system or several of its units. Strategic planning and
implementation is perhaps the most common type of organization level change. Higher-level change
programs usually require changes at lower levels—an organization-level change may require change at
both team and individual levels as well.

4. Process and outcomes of change on the effectiveness of employees:

Organizational change is a complex process that can have a significant impact on employee effectiveness.
The process of change should be carefully planned and executed, with clear communication and
involvement of employees. The outcomes of change can be positive or negative, and can affect employees
at all levels of the organization. By monitoring and evaluating the outcomes of change, organizations can
identify areas where improvements can be made to ensure that the change is successful and that employee
effectiveness is maintained or improved.

4.1 Process of Change

The process of change can vary depending on the type, scope, and level of change being implemented.
However, there are common steps that organizations can take to ensure that the change is implemented
effectively.

1. Establish a clear vision and communicate it effectively

The organization needs to establish a clear vision for the change, including why the change is necessary
and what outcomes are expected. This vision needs to be communicated effectively to employees at all
levels of the organization. Clear communication ensures that employees understand the need for change
and what is expected of them.

2. Involve employees in the change process

Employees are the ones who will be most affected by the change. It is important to involve them in the
change process from the beginning. This involvement can take the form of input, feedback, and
participation in decision-making. By involving employees, they become invested in the success of the
change and are more likely to support it.

3. Provide training and support

Change can be stressful for employees, especially if they are required to learn new skills or ways of
working. Providing training and support can help employees adapt to the change more easily. This
training and support can take the form of coaching, mentoring, and access to resources such as online
training.

4. Monitor and evaluate the change

Once the change has been implemented, it is important to monitor and evaluate its effectiveness. This
evaluation should include both quantitative and qualitative data, such as productivity, employee
engagement, and customer satisfaction. This data can be used to identify areas where the change has been
successful and where improvements can be made.
4.2 Outcomes of Change

The outcomes of change can be positive or negative, and can affect employees at all levels of the
organization. The following are some of the outcomes of change on employee effectiveness.

1. Improved employee Performance

Change can lead to improved employee performance as employees are required to learn new skills or
ways of working. This can lead to increased productivity, improved quality, and higher levels of customer
satisfaction.

2. Increased employee engagement

When employees are involved in the change process and understand the reasons for the change, they are
more likely to be engaged and committed to the organization. This can lead to increased motivation,
higher levels of job satisfaction, and reduced turnover.

3. Resistance to change

Not all employees will embrace change, and some may resist it. Resistance to change can lead to
decreased productivity, increased absenteeism, and reduced employee morale. Effective communication
and involvement can help to reduce resistance to change.

4. Stress and burnout

Change can be stressful for employees, especially if they feel that they are not adequately prepared or
supported. This can lead to increased levels of stress and burnout, which can affect employee
effectiveness and well-being.

During the transformation process, effective communication is critical. Employees can benefit from clear
and succinct communication by understanding the reasons for the change, the aims of the change, and
what is expected of them. Effective transformation may result in enhanced performance, such as higher
efficiency and production. Employee resistance to change, on the other hand, might have a detrimental
influence on their performance. Resistance can manifest as a refusal to accept new methods or
technology, as well as low morale and motivation.

Conclusion
After the comprehensive analysis of various aspects that impact organization, we conclude that the
analysis of different organizational structures highlights the importance of selecting the right structure
based on the organizational goals and objectives. The culture of an organization is a crucial factor that can
either promote or hinder organizational effectiveness. Therefore, it is necessary to maintain a positive
organizational culture that aligns with the organization's goals and values.

The evaluation of the influence of learning on employee effectiveness highlights the need of continual
learning and development to improve employee skills, knowledge, and productivity. Companies that
engage in employee learning and development are more likely to retain top talent and keep a trained staff.

The assessment of how teamwork may increase employee effectiveness emphasizes the relevance of good
teamwork in accomplishing corporate goals. Team collaboration and excellent communication can lead to
increased productivity and problem-solving ability.

The analysis of different leadership behaviors highlights the importance of effective leadership in
achieving organizational effectiveness. Leaders who adopt the right leadership style based on the
organizational context and employee needs are more likely to promote employee engagement, motivation,
and productivity.

Finally, the consideration of the process and results of change on employee effectiveness emphasizes the
need of properly managing change to reduce negative impacts and maximize good outcomes.
Organizations that effectively manage change are more likely to adapt to changing market conditions and
remain competitive. Overall, the portfolio provides valuable insights into various factors that impact
organizational effectiveness and emphasizes the importance of adopting a holistic approach to managing
organizations.
Task 2 - You know that questions from the panel will ask for your views on certain management theories.
In preparation make detailed notes which:

 Evaluate different leadership behavior theories

 Analyze theories relating to work relationships and interactions.

Extension activities:

To gain a merit grade you must:

 Evaluate the relevance of organizational culture theory in developing organizational effectiveness.

LO1 AC 1.1, 1.2 2M1

1.1- Evaluate different leadership behavior theories

Theories of leadership behavior are critical for effective leadership and organizational success. The
theories suggest many methods to leadership and assist leaders in making decisions. This study will
assess the many leadership behavior theories developed throughout the years. Trait theory, behavioral
theory, contingency theory, transformational leadership theory, and servant leadership theory will be
reviewed.

1. Trait Theory

The trait theory of leadership proposes that effective leaders possess certain innate personality traits that
make them successful. The theory suggests that leaders are born, not made. Early research on trait theory
focused on identifying the specific traits that make a person a good leader. Some of the traits that have
been identified include intelligence, extraversion, confidence, and integrity. However, more recent
research has found that the relationship between traits and leadership effectiveness is weak at best. While
some traits may be helpful for leadership, such as emotional intelligence and conscientiousness, it is not
enough to rely on them alone.

2. Behavioral Theory

The behavioral theory of leadership proposes that effective leadership can be learned and developed
through specific behaviors. The theory suggests that leaders can be taught to exhibit certain behaviors that
are associated with effective leadership. These behaviors can be divided into two categories: task-oriented
behaviors and people-oriented behaviors. Task-oriented behaviors include setting goals, establishing
deadlines, and monitoring performance. People-oriented behaviors include showing concern for the needs
of followers, providing support and encouragement, and building relationships. While the behavioral
theory of leadership has been influential in shaping leadership development programs, research has found
that the most effective leaders are able to adapt their behavior to different situations, rather than relying
on one specific style.

3. Contingency Theory

The contingency theory of leadership proposes that the most effective leadership style depends on the
specific situation. The theory suggests that leaders need to be able to adapt their style to fit the
circumstances. The theory proposes that there are two key factors that determine the most effective
leadership style: the leader's task structure and the leader's relationship with their followers. If the task is
highly structured and the leader has a good relationship with their followers, then a more participative
leadership style may be most effective. However, if the task is unstructured and the leader has a poor
relationship with their followers, then a more directive leadership style may be necessary. While the
contingency theory of leadership has some intuitive appeal, it can be difficult to apply in practice. It
requires a deep understanding of the situation and the ability to quickly adapt.

4. Transformational Leadership Theory

The transformational leadership theory proposes that effective leaders inspire and motivate their followers
through a shared vision and values. The theory suggests that effective leaders are able to bring about
positive change in their organizations by creating a sense of purpose and commitment among their
followers. Transformational leaders are able to articulate a vision for the future and inspire their followers
to work towards it. They are also able to create a culture of trust and open communication, which allows
for the free exchange of ideas and feedback. Research has supported the transformational leadership
theory, and it is often seen as one of the most effective leadership styles.

5. Servant Leadership Theory

The servant leadership theory proposes that effective leaders prioritize the needs of their followers, and
are willing to sacrifice their own interests to serve the greater good. The theory suggests that effective
leaders are servant leaders, who are committed to the well-being and growth of their followers. Servant
leaders are able to create a culture of trust and collaboration, which allows for the free exchange of ideas
and feedback. They are also able to create a sense of purpose and commitment among their followers,
which allows for the achievement of organizational goals. Research has supported the servant leadership
theory, and it is often seen as an effective way to build trust and loyalty among followers.
1.2 - Analyze theories relating to work relationships and interactions.

Work relationships and interactions refer to the ways in which people interact with each other in a work
setting. These relationships and interactions can have a significant impact on the success of an
organization, as they can influence productivity, job satisfaction, and employee turnover. There are
several theories relating to work relationships and interactions that can help us understand and improve
these dynamics in the workplace.

1. Social Exchange Theory:

Social exchange theory suggests that individuals engage in social relationships because they expect to
receive some type of reward or benefit from the interaction. In the workplace, these rewards might
include pay, promotions, recognition, or social support. According to this theory, people are more likely
to engage in positive interactions with others if they believe that their efforts will be rewarded.

2. Equity Theory:
Equity theory suggests that people compare their inputs (such as effort and time) and outcomes (such as
pay and benefits) to those of others in the workplace. If individuals perceive that they are being treated
unfairly in comparison to their colleagues, they may become dissatisfied and may be more likely to
engage in negative interactions with others. On the other hand, if individuals perceive that they are being
treated fairly, they are more likely to engage in positive interactions and work collaboratively with others.

3. Social Identity Theory:

Social identity theory suggests that individuals derive their sense of self-worth from their membership in
social groups. In the workplace, these social groups might include teams, departments, or the organization
as a whole. According to this theory, people are more likely to engage in positive interactions with others
who share their social identity, and may be more likely to engage in negative interactions with those who
do not.

4. Attribution Theory:
Attribution theory suggests that people try to understand the causes of others' behavior in order to make
sense of the world around them. In the workplace, people might attribute others' behavior to their
personality traits, their situational circumstances, or the task at hand. According to this theory, people are
more likely to engage in positive interactions with others if they attribute their behavior to positive causes
(such as competence or effort), and may be more likely to engage in negative interactions if they attribute
their behavior to negative causes (such as laziness or incompetence).
5. Leader-Member Exchange Theory:
Leader-member exchange theory suggests that the quality of the relationship between a leader and their
followers can have a significant impact on employee outcomes. According to this theory, leaders who
engage in high-quality exchanges with their followers (such as providing support and feedback) are more
likely to have employees who are satisfied with their jobs and who engage in positive interactions with
others in the workplace.
2M1 - Evaluate the relevance of organizational culture theory in developing organizational
effectiveness.

Organizational culture theory is extremely important in the development of organizational performance.

Organizations may establish a productive, inventive, and dedicated workplace by fostering a good culture
that supports shared vision and values, determines employee behavior, impacts communication, attracts
and keeps talent, and improves organizational agility.

1. Encourages shared vision and values:

Organizational culture theory emphasizes the importance of a shared vision and values among employees.
This shared vision and values help to create a sense of unity and purpose within the organization. When
employees understand the organization's goals and values, they are more likely to work together to
achieve these goals. This leads to increased organizational effectiveness because employees are focused
on common objectives, and there is less conflict or resistance to change.

2. Shapes employee behavior:

Organizational culture also shapes employee behavior by establishing norms and expectations for
employee conduct. This can be through explicit policies and procedures or through the unwritten rules of
the organization. When employees understand what is expected of them, they are more likely to perform
well and behave in a manner consistent with the organization's values. This can lead to increased
productivity, improved quality of work, and higher levels of employee engagement.

3. Influences communication:
Organizational culture influences how communication occurs within the organization. A positive
organizational culture fosters open and honest communication, which can lead to better decision-making
and improved outcomes. When employees feel comfortable communicating with one another, they are
more likely to share information, collaborate on projects, and work together to solve problems. Effective
communication within the organization can lead to improved organizational effectiveness by ensuring
that everyone is on the same page and working towards the same goals.

4. Attracts and retains talent:

Organizational culture also plays a significant role in attracting and retaining talent. A positive
organizational culture can help organizations attract high-quality employees who share the organization's
values and vision. Employees are more likely to stay with an organization that has a positive culture, as it
fosters a sense of belonging and commitment. This can reduce employee turnover and help organizations
retain the knowledge and skills of experienced employees. Attracting and retaining talented employees
can lead to increased organizational effectiveness by creating a skilled workforce that is committed to the
organization's success.

5. Enhances organizational adaptability:

Finally, organizational culture can enhance organizational adaptability. Organizations with a strong and
flexible culture are better equipped to adapt to changes in the environment, such as technological
advances or changes in consumer behavior. A positive organizational culture encourages innovation and
creativity, which can lead to new products, services, and business models. By embracing change and
encouraging innovation, organizations can maintain their competitiveness over time and improve their
effectiveness.
Conclusion
In conclusion, leadership behavior theories play a crucial role in determining the effectiveness of leaders
in achieving organizational goals. The analysis of different leadership behavior theories highlights the
importance of adopting the right leadership style based on the organizational context and employee needs.
Trait theory emphasizes the importance of identifying specific traits in leaders that promote effective
leadership. Situational leadership theory suggests that effective leadership is contingent upon the
situation, and leaders must adapt their leadership style to fit the situation and employee needs.
Transformational leadership theory emphasizes the importance of inspiring and motivating employees to
achieve organizational goals.

The analysis of theories relating to work relationships and interactions highlights the importance of
effective communication and collaboration in achieving organizational effectiveness. Social exchange
theory suggests that employees' behavior is influenced by the rewards and punishments associated with
their interactions with others. Leader-member exchange theory emphasizes the importance of building
positive relationships between leaders and employees to promote employee engagement and motivation.

The relevance of organizational culture theory in developing organizational effectiveness is significant.

The organizational culture reflects the values, beliefs, and behaviors that shape the organization's
operations and performance. A positive organizational culture that aligns with the organizational goals
and values can promote employee engagement, motivation, and productivity. Therefore, organizations
must adopt a strategic approach to developing and maintaining a positive organizational culture that
aligns with the organizational goals and values.

Overall, the evaluation of different leadership behavior theories and work relationship theories provides
valuable insights into the importance of adopting a holistic approach to managing organizations.
Organizations must adopt the right leadership style, promote effective communication and collaboration,
and develop a positive organizational culture to achieve organizational effectiveness.
References

1. Fundamentals of Organizational Behavior Ed. 2nd

2. Organizational Behavior: Integrating Individuals, Groups, And Organizations - Joseph E.
Champoux Fourth Edition
3. Cultural Competence: Why it matters how do you acquire it . (Yih – Teen Lee)
4. Organizational Behavior : Timothy A. Judge Ed. 15th