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.
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 effectively.
Among these styles, British Gas can adopt achiever leadership style as these leaders provide a positive atmosphere by supporting their employees. In addition to this, they implement feedback and suggestions from employees if they are really beneficial for the organization. On the other hand, EDF Energy can adopt diplomat leadership style as they focus mainly on completing the tasks. They try to solve all the issues or problems faced by their employees. Leaders provide their employees with certain tasks and punishments a well as rewards are given according to their performance.
2.2 Organizational theories which underpin the practices of management
Organizational theories are the types of guidelines which bring managers and employees together for achieving the organizational goals and objectives. It is adopting strategist which would bring out or enhance the individual skills for fulfilling their tasks effectively . It also means delivery of goods to the customers in such a way that the firm would get maximum profit out of it. There are many theories which help the organization in adopting changes, taking decision, promotion, dividing power, etc. Few organizational theories are contingency, classical, neoclassical and organizational and systems theory.
According to the given case, British Gas follows neoclassical theory. This theory focuses on maintaining good relationship between managers and employees. Human relation theory is another name of neoclassical theory. Organization focuses on fulfilling the wants and requirements of employees. Main aim of firm through this theory is to motivate the employees and developing a strong relationship with the employees and managers. With this, organization gets higher productivity as the employees work with high level of efficiency. This theory is also helpful in underpinning the management practices as it improves the communication and interactions between employees and the manager. It also develops a relation of honesty, openness and trust among the team members. Feedback and suggestions given by the employees are taken into consideration and as a result, they develop confidence in sharing any ideas freely to their seniors. In addition to this, it also encourages employees to come up with innovation.
Organizational theory helps in underpinning the management functions as it improves the planning among employees as there is an effective communication between taff members. As a result, new ideas and innovation are created. Organizational theory also helps British Gas in effective controlling as the employees are involved in decision making. They are well aware of the changes which are going to take place in the organization. It helps in creating a systematic plan in achieving the objectives of firm. This has effective control over other functions of the organization. It also involves monitoring the performance of employees meeting the set standards. Moreover, the management authorities and management roles are also defined through organizational theory. The theory and leadership adopted by the firm are very effective as it allows employees to take decisions regarding the issues or problems faced by the firm which creates a feeling of importance among employees. On the other hand, neoclassical theory helps in developing a strong relation with the managers and employees that makes the employees confident enough and create trust for the manager in their minds as a result of which workers would share their thoughts and ideas freely to their superiors.
2.3 Different approaches to management used by British Gas
Management is a process which helps in getting things done by employees. Managers of the firm should be capable enough to understand the human behaviour. Main aim through these approaches is to increase the productivity by developing good relation and motivating employees. Leadership, communication, participative management and motivation are the core of these approaches. In addition to this, it helps in realizing the employees about the importance of understanding roles and responsibilities so that they can work accordingly and achieve the organizational goals. Mainly these approaches help in understanding the behaviour of employees and adopting different strategies which will help employees in working with their full efficiency. There are many approaches which a firm can adopt. Following are the few approaches which can be followed by British Gas and EDF Energy. Some of them are like:
This theory emphasizes on the scientific study of work methods to improve the productivity of individual workers. This management recommends the methods which analyses the work and determines the method to complete the task. In other words, it is the art of knowing the actual action which has to be taken and the way it has to be done. In this approach, firms are very careful in selecting any candidate. Organization applies scientific techniques for selection, training and recruitment. This technique works according to two principles which are:
- While performing a particular task, the best method should be discovered.
- The best method selected in fulfilling a task is a kind of process which helps in increasing the employee’s efforts.
According to this approach, employees have only physical and economical needs. Other needs like job satisfaction and social needs are not at all important. It mainly aims at increasing the efficiency of organization and employees based on management practices. According to this approach, Fayol has developed 14 principles which are very helpful in managing the firm effectively. Following are the 14 principles of management:
- Division of work
- Unity of command
- Unity of direction
- Scalar chain
- Stability of tenure of personnel
- Espirit de corps
This approach emphasizes on the requirement of organizations to operate rationally. According to Max weber, there are five principles:
Proper division of labour
All the employees should be given with balanced responsibilities and power.
Chain of command
All the firms should have proper hierarchy so that the information can be passed effectively.
Separation of personal and official property
Assets of organization and owners are different and cannot be treated same.
Application of complete and consistent rules
For running the firm, there should be proper rules and regulations.
Promotion and selection based on qualification
Selection and promotion of employees should be based on experience, knowledge, skills and age. Personal relations should be influenced.
This approach focuses on the conflicts which takes place among employees or superiors. The managers are free to take decision and can adopt any type of strategies according to the situations.
According to this approach, all the components in the organization are interrelated with each other. Any change in one component will affect the other components . It mainly focuses on the overall effectiveness of system rather than sub-system effectiveness.
Among these approaches, British Gas should adopt scientific approach as it selects the candidates very carefully during the recruitment process. EDF Energy should adopt Bureaucratic approach as it has a systematic way of distributing power and responsibilities and it also focuses on having a proper way of interacting in an organization.
From this report, it can be articulated that among all the leadership styles, achiever leadership is the best as it allows suggestions and feedback for the employees that motivate them in improving their efficiency towards the job that they perform. EDF Energy should adopt this leadership style as it will be helpful in developing confidence among the employees to share ideas and innovations. Further, scientific approach is the best approach which a firm can follow as organizations which follow this approach is very careful in selecting the candidates during recruitment and it recommends the methods which analyses the work and determines the method to complete the task effectively.
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