Organizational behaviour is the study of group and individual performance and activities. This study is helpful in knowing the human behaviour at workplace and it also studies their impact on communication, motivation, organizational structure, job performance, etc. In other words, it is the study of different ways through which people interact in a group. This study is normally done in order to create business organization more effective. This report is about the study on British Gas and EDF Energy as per the given case study in which the leadership styles that they should adopt in order to encourage their employees to effectively are assessed. Further, it covers the organizational theories which underpin the practices of management. Lastly, it also includes the different approaches used by British and EDF Energy.

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1.1 Effectiveness of different leadership styles which can be used by British Gas and EDF Energy

Leadership style is adopted by a leader to provide direction, guidance, support and motivation to employees in order to implement the decided plans to get the targets attained. There are many leadership styles which a firm can adopt. Each style has its own disadvantages and advantages. A firm should select a leadership style according to the goals and culture determined. Organizations can also adopt more than one leadership style depending upon the requirements of tasks and needs of department. Following are the different leadership styles which British Gas and EDF Energy can adopt:

Opportunistic leadership style

In this, the leader is taken as a person who is egoistic, mistrusted or manipulative. Main aim of this leader is that he mainly focuses on achieving the personal objectives and goals. This type of leader comes under Autocratic leadership style where all the decisions are taken by the head himself. In this leadership style, employees are not involved in decision making. Leaders provide their employees with duties, tasks and orders as well as give them proper guidance so that they can work effectively. This leadership style is less effective as in this generation; everyone wants freedom where no one should control them.


Diplomats are those leaders who sense the opportunity which prevails in the environment. This type of leader avoids conflicts and they have high experience through which they try to learn from their mistakes. They are much better than the leaders who adopt Opportunistic leadership style as they are not manipulative, egoistic or mistrusted. Diplomats are goal oriented and are effective problem solvers. This type of leader comes under the transformational leadership style. Leaders provide their employees with certain tasks and rewards or punishments are given according to their performance. They set goals and objectives for employees and they have to follow them according to the direction provided by their leaders.


These leaders challenge and support their employees to develop a positive atmosphere for working. They have the capability to lead a team and to implement new strategies within three years. They implement suggestions and feedback from employees if they are really beneficial for the organization. They encourage new ideas from the employees and inhibit thinking out of the box. These types of leaders come under the democratic leadership style where all employees are allowed in taking major decisions. Changes adopted by the organization are accepted by the employees as these changes take part with the active participation of employees. This is the best style which a firm can adopt. This style motivates the employees and they contribute with their highest level of efficiency. Employees are involved in decision making but the final decision is taken by the head leader. This style helps in boosting up the moral of employees.


These leaders mainly focus on the organizational constraints and perceptions. They believe in adopting different actions and in developing clear vision which will help in encouraging the personal and organizational transformations. They are very comfortable in handling the people effectively and in dealing with the conflicts. Strategist tries to come up with the new ideas for solving problems and they are the risk takers. Mostly leaders who take risks can solve the problems effectively.

Magician leadership style

These leaders are very thoughtful and reflective. They can solve any problem as they are very knowledgeable and experienced in their respective areas. They are visionary, powerful and successful as well as inspire others with a lot many skills. These leaders are enthusiastic and full of energy. They mainly aim for fulfilling the tasks efficiently and ef


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