Assignment Prime Sample - An Introduction to Organization Behavior

ORGANIZATION BEHAVIOR
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Table of Contents
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
Comparison between organizational structure and culture..........................................................5
Relationship between an organization structure and culture and their impact on businesses......7
Factors influencing the behavior of an individual at work..........................................................8
TASK 2............................................................................................................................................9
The effectiveness of different leadership styles in different organizations .................................9
How organizational theory supports the practice of management ............................................10
Evaluation of different approaches to management .................................................................10
TASK 3...........................................................................................................................................11
1. Impact of leadership styles on employee motivation ............................................................11
2. Importance of motivation to managers..................................................................................12
3. Outline and definition of Maslow’s 5 Hierarchy of Needs ......................................13
4. Chronic frustration of a person’s needs ................................................................................15
5. Definition and outline of McGregor’s theory X and Y..........................................................15
6. Herzberg’s Hygiene theory .....................................................................................17
7. Herzberg’s 6 motivations ......................................................................................................17
8. Outline and definition of Vroom’s expectancy theory ..........................................................18
TASK 4..........................................................................................................................................19
4.1 Nature of groups and group behavior in Organization........................................................19
4.2 The factors affecting development of effective teamwork in a organization.......................20
4.3 Evaluation of technological impact on team functioning within Virgin Group...................21
CONCLUSION .............................................................................................................................22

REFERENCES .............................................................................................................................23

INTRODUCTION
Organization behavior can be referred to as the study of the way people communicates
within the group. There are various different models and philosophies related to organization
behavior (Bishop, 2012). The areas of investigation are comprised of improving the performance
of job, enhancing job satisfaction, encouragement of leadership and promoting innovation.
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The present study discusses organization behavior with respect to Virgin Group Ltd. The
report entails to understand the different organization structures and cultures. Further it includes
factors which affect the individual behavior at work. In addition to this the report covers impact
of different leadership styles may have on motivation in organizations in periods of change.
The study also includes application of different motivational theories in the workplace.
Along with this it evaluates the usefulness of motivation theory for managers. The report entails
to understand the nature of groups and group behavior within organization. It also discusses
factors that inhibit the development of effective teamwork in the business.
TASK 1
Comparison between organizational structure and culture
Organization structure sets the hierarchy of work and communication within the employees of
the firm. It is the process of delegation the authorities and responsibilities in a criteria such that
there is a clear division of superior subordinate relationship (Zheng, Yang and McLean, 2010).
Organization culture on the hand is the beliefs that the organizations share internally and
externally. It is the behavior, code of conduct, values and feelings of human within the company.

The organizational structure and culture are compared in the tables below:
Table 1: Difference between organizational structures
Basis Tall Flat Hierarchical
Definition This structure is the
one having many levels
of hierarchy.
It indicates to few or
no level of
management.
It follows the layout or
pyramid within the
organization.
Layers of
management
Many level of
management
Few or nil Multiple level as per the
division of work
Flexibility Low high Moderate
Effect on the
organization
Communication system
suffers with delay
information delivery at
both ends thus
organizational
productivity suffers
Lack of superior
subordinate
relationships causes
the confusion in
functional and work
specification.
Well defined level of
relationship lays the
definite authority
responsibility criteria
which facilitate work
system and functional
division.
Table 2: Difference between Organizational cultures
Basis Power culture Role culture Person culture Task culture
Definition This strict
controlled culture
involves a small
group of people
in making key
decisions of the
organizations.
This is role
specific culture
where
organizations
ensure that all
tasks are
assigned to
employees
without
duplication
These types of
organizations rely
on the skills and
knowledge of the
employees. It
focuses on
professional
development.
This culture is
adopted in the
organization to
carry the specific
tasks in the
organization where
the small team is
formed in order to
solve a specific
issue or problem.
Distribution
of power
Limited group of
people
Individual
specific powers
Every person is
important to
organization here.
Team power is built
to solve the issue
Focus It focuses on
controlled work
environment
Delegation of
roles and tasks
to avoid
duplication of
work
Skilled work and
professional
environment
Professional work
environment in
order to complete
the project
Success
constraints
Decision making
strength of the
controlling
Productivity of
employees and
efficient role
Skills, education
and knowledge of
the workforce
Problem solving
attitude. Project
based

authority handling
Relationship between an organization structure and culture and their impact on businesses
The Organizational structure and culture are the two key dependent factors of business. The two
are interlinked concepts and share a relationship of correlative success. Top management forms
the basic structure of the organization which ensures the superior subordinate relationship. This
helps the management in specifying the code of conduct and behavioral aspects required by
within the company (Morton and Hu, 2008). Most of the organizations use pyramid structures
which has the definite distribution of work responsibilities. The top management in those
structures defines the company objective and employees need to work accordingly. Distribution
of responsibility later develops the work culture and thus finally produces results in form of
employee productivity and quality (Roberts and et.al, 2007). The correlation of the two factors is
described in the below three conditions:
 Strictly Centralized structure: if the organizations follow the controlled and centralized
structure of work in an organization then the employees have no freedom to take their
own decisions. This inflexibility in the organizations results in the demotivated and
unproductive workforce (Mount, Ilies. and Johnson, 2006). Organizational culture is also
affected by the managements such action. The specific and authorized work culture lead
to boredom in the job routine and thus quality and productivity is bitterly affected. Such
organizations usually suffer the high turnover rate.
 Decentralized structure: The decentralized power structure provides the organization with
flexibility in work. The authority responsibility relationship is often managed by the
workforce itself. This leads to the self motivated workforce. More responsibilities lead to
higher self management (Zimmerman, 2008). This contributes in shaping a very
favorable work environment within the company. The motivated and self managed
workforce focuses on high productivity and better results and thus gives quality services.
These types of organizations are the first choice of work for the people. The work culture
always attracts the efficient and skilled workforce for the company (Armstrong and
Taylor, 2014).

From the above two discussions it is very clear that organization structure and culture go hand in
hand. The effective selection of one leads to better results of the other. Thus these two
independent concepts are mutually connected.
Factors influencing the behavior of an individual at work
The organizational effectiveness depends on the quality and productivity of the employees. This
is a group behavior but group is made of individual people and thus the effect of individual’s
ability lead to a group behavior (Jones, 2010). For the efficient working of a business the
management always keeps a check on the individual behavior. The personality of an individual is
the broad factor that affects the individual behavior. There are basically five types of personality
traits:
 Open to experience: people with these traits are very imaginative and curious. They are
full of idea due to multiple experiences in different fields of work. They help the
organization with active and new suggestions of improvements. Their ideas in the field
contribute to a multitasking over the specific monotonous routine.
 Extrovert: these are the outgoing people who are very open to adventures and are have a
high degree of individual curiosity. The key contributors to their personalities are energy,
positive thoughts and social interactions (Colquitt and Zapata-Phelan, 2007). These
people can be very helpful to the organizations as they contribute in the energetic and
adventurous work environment. Moreover their personalities support the new idea
generation and risk taking attitude for the firm.
 Agreeable: this is the cooperative and compassionate personality traits. These types of
people prove to be the good team workers and usually prove to be the loyal employees.
Their cooperative nature helps them to win the trust of others and thus help in creating a
positive and cooperative work environment.
 Neuroticism: people with this personality have the tendency of losing the balance over
their emotions. They are prone to the negative emotions like anger, anxiety, sadness etc.

they lack emotional stability and thus their reactions at times may prove to be harmful for
the organizations (Stacey, 2007).
 Conscientiousness: they are not the people with let go attitude. They the efficient and
organized people they fight the traits of carelessness and easygoing attitude. They are
very efficient workers and have no problem with a regular monotonous routine of work.
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TASK 2
The effectiveness of different leadership styles in different organizations
Leaders are the people who lead the team. They are the people who have the courage and
confidence to bring about the change in the organization and peoples working style. They are
said to be the people who can get the work done by efficiently using the tools like empathy,
motivation and appreciation (Sapru, 2013). Every person has unique quality and so does the
organization. Every organization adopts different type of leadership style. The major types of
leadership styles are:
 Authoritative: These leaders are firm. They are the ones who set the primary goals for the
teams and expect their team to achieve those objectives. These leaders are not
participative and motivating. They are result oriented leaders. These types of leaders do
not consider the view of team members and thus ignores the creativity and scope of
innovation within the team.

 Democratic: these are the participative and flexible leaders. They keep the team free from
authorities and directions. They are the motivating and cooperative leaders. They have
the empathetic approach towards the team and thus give their equal contribution in
making a good team. This leadership style may lead to deterioration of professional work
culture in the organizations as the leader's guidance and contribution is minimum.
Moreover this may lead to declining the morale of weak members of the team.
 Transactional: This type of leadership is based on the basis of fear and reward. These
leaders believe that incentive and punishments are the key factors for making people do
the tasks. The reward and punishment scheme however may led to the perception of
biasness in the employees mind. Moreover the reward do not influence the human
behavior for long time and thus may lead to negligible effect in the company.
 Laissez-Faire: This is a free style of leadership. These leaders do not involve in any task
of guidance or supervision. They leave their teams free to take all their decisions. They
do not participate in any of the team activity. The employer's trust on the self regulated
team may not always apply to the complete team member's' morale. Some of the
members may here feel left out and thus the concentration of power may be shifted in
hands of some strong members. These may be ineffective for team objective.
Every organization in the industry adopts different type of leadership style. These styles reflect
the visions and missions of the company. Virgin group for example has the unique style of doing
work. The company made up over 200 businesses and employed over 50000 people worldwide.
Sir Richard Branson, chairman of the organization says that employees are the key factors
contributing to the success (Virgin, 2015). He believes in the participative style of leadership as
according to him business is no fun if the leader does not participate with the employees and
built a good rapport in the market.
How organizational theory supports the practice of management
Organization theory is the study of organization’s structure. Design, internal and external
environment, leadership style behaviors of managers etc in order to keep a close check on
changing business environment and suggest the ways to change to cope up with the same.

Different authors have given different organizational theories few among them are Classic
organization, theory Contingency theory, System theory etc. the global economy has turned the
face of organizations and competitions and thus it is presumed that the classical theories of
management are not being practiced in the organizations (Jones, 2010). But few organizations
inspite of employing modern measure of doing work have still rooted to the classical means.
Virgin group has unique management structure which does not follow any particular model of
management but it still employ different concepts of classical theory of management. Richard
Branson, the chairman of the business still follows the aspects of scientific management created
by F.W. Taylor. Virgin, despite its reputation for having a relaxed working environment, some
aspects of scientific management is used (Hawthorne, 2015). Such as the selection and training
and payment by results, with certain employees being offered rewards for showing ambition to
set up their own businesses and showing signs of creative thinking. However the competitor of
the organization, Easy Jet has somehow taken the modern approach of management (Morton and
Hu, 2008). Carolyn McCall, CEO of Easy jet employs the contingent approach of management.
According to her business practices needs continuous updating to cope up with the cut throat
competition in the market (Easy Jet, 2015).
Evaluation of different approaches to management
The concept of management has evolved through various studies and practices. Different
era demanded different theories and thus evaluation of management is backed up by variety of
theories:
 Scientific management approach: Fredric Taylor gave this theory in 1917. The basic
principles of this theory were observation, experiment, standardization, selection and
training, payment by results and co-operation. Virgin group is the live example who still
practices this approach of management. This approach focused on the scientific means
doing the work. Taylor laid emphasis on effective means of doing work by following the
practice and postures in a regulated and scientific measure. This approach contributed in
four principles. However the idea of doing the work in one right way was not widely
accepted by the workforce. The employees started losing their morale and motivation for
working and thus the practice was overruled by modern work approaches.

 Bureaucratic approach: Weber's theory of bureaucratic management has two essential
elements. First, it entails structuring an organization into a hierarchy. Secondly, the
organization and its members are governed by clearly defined rational-legal decision-
making rules. Each element helps an organization to achieve its goals (Stacey, 2007).
This management practice is majorly followed by all government organizations. The
practice however is not accepted by the modern organization because this lacks the
flexibility of work and also leads to the process of delay in working practice.
 Contingency approach: This theory was given by Chandler in 1962 which emphasized on
effectiveness and adaptability to the changes by the organization. This theory still is
prevalent in the modern businesses. Easy Jet at the initial stage suffered losses due to lack
of compatibility with the changing environment. The contingency approach is the best
practice used by all the modern businesses. The critical situation and uncertainty of
businesses is uninvited thus this leads the leaders and team member to be prepared for all
unexpected situations. This however expands the array of decision making process for the
leaders and managers. No right way to do the work makes it difficult to follow the certain
policy and structures in the companies. Thus at time management focuses on merging
various approacjhes with this to get the best benefit out of it.
TASK 3
1. Impact of leadership styles on employee motivation
The various leadership styles and its impact on motivation of employees can be enumerated as
such:
 Autocratic leadership: This kind of leadership styles is used by Virgin group for the
purpose of making quick decisions. In such type the inputs of employees are rarely taken
so as to make effective decisions (Fairholm, 2004). Autocratic leaders motivate the
employees by developing confidence in the ability of the managers to take accurate and
appropriate decisions.
 Democratic leadership: Such kind of leaders gets employees involved in decision making
process and takes the consensus of the staff while taking major decisions (Root, 2014).

The employees are considered as the part of the decision making process that assist in
running the department in smooth manner.
 Quiet leadership: This leadership style allows staff to take decisions that affects day to
day operations. Quiet leaders provide motivation to their employees by providing them
necessary information when required (Huczynski and Buchanan, 2003). Moreover they
allow their employees to contribute to the success of the firm like Virgin. In case when
the production level of employees drops down then such type of leaders provides
developmental programs to employees so that their performance can be put to track.
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 Transformational leadership: He is referred to as charismatic manager. In such king of
style the leader provides motivation to employees by allowing them to provide their ideas
(Robbins, 2009). Further they also make use of their ideas for brighter vision of future. In
addition to this transformational leader provides incentives to employees in order to
encourage them to become more productive.
2. Importance of motivation to managers
It is important for the managers of Virgin Group to know about motivation. Managers
have the responsibility of planning and controlling the employees. At the same time, they are
also responsible for motivating the employees. Managers should know about motivation because
of the following reasons:
 Motivation is important for achievement of goals of organization. Motivated employees
work better. This is because motivation improves the level of efficiency of employees

(Hosie and Smith, 2009). It is critical for the managers to make the employees work
efficiently towards the achievement of goals of Virgin group. Motivation helps in
fulfilling the gap between ability and willingness. In this way, it helps the managers to
improve the performance of the subordinates.
 Managers should know about motivation as it helps in building friendly relationships. It
is an important factor which helps in improving employee satisfaction. For carrying out
the work in an uninterrupted manner, a cordial and friendly atmosphere is necessary
(Ahmad, 2009). This could be developed if the employees are motivated. Moreover, by
improving the satisfaction level of the employees, motivation helps in developing
friendly environment at the workplace.
 Motivation is important for managers as it leads to stability of workforce (Bessell and
et.al., 2013). For better reputation and goodwill of Virgin Group, stability of workforce is
important. Feeling of participation in the management can make the employees loyal
towards the firm. it is therefore important for the managers to motivate the employees at
Virgin Group so that they remain loyal to the company and are retained for a longer time.
This makes the workforce stable.
 Managers at Virgin Group should know about motivation as it helps in changing negative
and indifferent attitude of employees. Some employees have negative attitude which
hampers the overall work of the team and organization as a whole (Beck, 2003). It may
stem up from different reasons such as workplace issues, financial dissatisfaction etc.
motivation acts as a technique with the help of which managers can effectively change
negative attitude of employees into positive one. Thus, by providing motivation,
managers can encourage employees to channelize their efforts and energy in positive
direction (Humbert and Drew, 2010).
 Motivation helps in reducing resistance to change (Pujari, 2015). It is for this reason that
it is important for managers at Virgin Group to learn about motivation. Virgin Group is
an organization that is continuously expanding. While going on expansion, the
organization has to undergo certain changes. For carrying out the operations efficiently, it

is important that employees accept the change. This can be done by motivating the
employees towards accepting the change. In this way, with the help of motivation,
managers can reduce resistance towards the change.
3. Outline and definition of Maslow’s 5 Hierarchy of Needs
Abraham Maslow presented a theory of motivation which is known as Maslow’s
Hierarchy of Needs. This is five staged model in which various needs of people have been
presented in the form of a hierarchy. According to Maslow, people have the motivation to fulfill
certain types of needs. On fulfillment of one need, the person moves towards achievement of
another need (Oyedele, 2010). There were five motivational needs identified by Maslow. These
are depicted as various hierarchy levels in the form of a pyramid. The five needs categorized
under two levels, basic needs and growth needs. Basic needs include physiological requirements,
love, esteem, safety. Growth needs comprise of self actualization.
Figure 1: Maslow's hierarchy of needs
(Source: Maslow's hierarchy of needs, 2014)

As per the hierarchy, the five motivational needs provided by Maslow have been described as
under:
 Physiological needs- These comprise of the basic needs of an individual which are vital
for his survival. Need for air, water, food and sleep are included in this (Savolainen,
2012). According to Maslow, these are the most basic and instinctive needs. This is
because all the needs become secondary till a person achieves physiological needs.
 Security needs- Needs for safety as well as security are included in this. At Virgin Group,
employees have a desire for steady employment. They need security of their job. It can be
analyzed that security needs are also important for survival but they are not as much
demanding as physiological needs.
 Social needs- These are defined as the need of a person for love, belonging and affection.
These needs are considered as less basic to physiological and security needs (Canós‐
Darós, 2013). In order to get motivated, employees need healthy relationships at
workplace which make them feel affection.
 Esteem needs- When a person has achieved the above three needs, it becomes
increasingly important for him to achieve esteem need. For an employee, these include
the things that are required for self esteem, social recognition and personal worth.
 Self actualization needs- This assumes the highest level among various needs identified
by Maslow (Gignac and Palmer, 2011). At this stage, the behavior of an employee is
motivated by his desire for personal growth. He is driven by the need to realize personal
potential.
4. Chronic frustration of a person’s needs
Chronic frustration of a person’s need can lead to reduced level of motivation. As per the
theory given by Maslow, people are motivated to achieve certain needs. These are physiological,
safety, social, esteem and self actualization needs (Ankli and Palliam, 2012). When one need is
fulfilled, a person is motivated to fulfill the next need in the hierarchy. As per this theory, a

person is motivated to achieve the physiological needs at first. After doing so, he gradually
moves up in the hierarchy to achieve other needs.
Chronic frustration of the needs of a person will influence his behavior. When basic needs
are not achieved, the person will not be motivated to achieve self actualization need. Also, he
would not be able to achieve the next level of need (McGee, 2006). Lack of fulfillment of basic
needs will lead to unpleasant feelings in a person. If these needs are frustrated, then the
employees of Virgin Group will not be motivated to move on to higher levels. It will also make
the employees fluctuate between levels of hierarchy given by Maslow.
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5. Definition and outline of McGregor’s theory X and Y
Douglas McGregor created theories of human motivation known as Theory X and theory
Y. both these theories are based on two different sets of assumptions. Theory X presents a
pessimistic view of employee motivation and behavior. Type X individuals are considered to be
lazy and less fond of their work (Buech, Michel and Sonntag, 2010). Little ambition is
demonstrated by the employees and they always avoid responsibility. Theory X assumes that
employees dislike change and are self centered. At virgin group, managers holding these
assumptions believe that employees can be motivated by providing them with job security,
money and promotions. As such, these managers may make use of command and control
approach to handle their employees. In this way, cooperation of employees is gained if their
needs for income and security are met.

Figure 2: Gregor's Theory X and Theory Y
(Source: Douglas McGregor's Motivation & Management Theories, 2015)
Theory Y presents an optimistic view of employee behavior and
motivation. As per this theory, employees enjoy that work which is meaningful. They are always
willing to take on responsibility. This theory assumes that workers are motivated to work towards
those organizational goals in which they believe. Also, this view of McGregor’s theory assumes
that employees are capable if ingenuity, self direction and creativity (Hoffmann, 2007). It can be
outlined that managers at Virgin Group who hold these assumptions believe that not for
motivating employees, higher level needs are required to be fulfilled such as self esteem and
sense of fulfillment. The managers understand that employees cannot be motivated by satisfying
material needs. As such, this theory suggests that managers should aim at addressing continuous
needs of employees for motivating them (Miner, 2008). In order to motivate employees, scope of
their jobs need to be broadened. Also, they must be allowed to participate in decisions making.
Giving more authority to the employees would motivate them.
6. Herzberg’s Hygiene theory
Herzberg’s Theory is known as two factor theory. It states that job satisfaction is caused
by certain factors in the workplace. These are known as motivators and include challenging
work, recognition and responsibility (Dweck, 2013). These factors are responsible for giving
positive satisfaction to the employees. It arises from intrinsic conditions of the job such as

recognition, personal growth or achievement. These factors are the satisfiers and cause job
satisfaction. These also lead to motivation of employees. As per this theory, there are certain
other factors that cause dissatisfaction. These are known as hygiene factors (Hosie and Smith,
2009). Although these may not lead to higher motivation but, their absence causes dissatisfaction
among employees. The term hygiene defines them as maintenance factors. Being extrinsic to
work, hygiene factors are inclusive of salary, policies of company, work practices etc.
As per this theory, it is important to eliminate hygiene factors in order to remove
dissatisfaction in a work environment. For this, there is a need for Virgin Group to pay
reasonable salaries to the employees, ensure their job security and create positive workplace
culture. Poor and obstructive policies of the company need to be fixed (Jones and Scott, 2011).
According to Herzberg, for increasing motivation at a work place, there are two tasks. The first is
to eliminate dissatisfaction and the second task is to increase satisfaction in the workplace. For
this, motivation factors need to be improved. There should be sufficient challenge in the job so as
to fully utilize the ability of the employees. Also, their contributions should be recognized. Virgin
group, while applying Herzberg’s theory, need to provide opportunities to the employees for
advancing in the company trough internal promotions. Appropriate training and development
opportunities should also be offered to the employees (Leon and Garcia, 2011). These will help
in improving the satisfaction level of employees. In this way, by eliminating dissatisfaction and
improving satisfaction, motivation can be increased in an organization like Virgin Group.
7. Herzberg’s 6 motivations
Herzberg’s 6 motivations are listed as follows:
 Creating rewarding work – Employees are motivated when they get an opportunity to do
work which provides them with rewards. In this regard, it is important to note that as per
Herzberg’s theory, motivation can result if the employees are given work that matches
their skills and abilities (Humbert and Drew, 2010).
 Recognizing contribution of the employees- According to Herzberg, motivation can be
obtained in the workplace if employees are recognized for their contribution.

 Providing opportunities for advancing in the organization- By getting opportunities to
grow and advance in the organization, the employees are motivated to work for their
desire to reach higher levels.
 Efficient company policies- According to Herzberg, employee motivation results if the
policies of the company are fair and efficient. At virgin group, this would act as a
hygiene factor, in the absence of which, dissatisfaction may be caused. But, presence of
good company policies would result in motivation (Gignac and Palmer, 2011).
 Competitive salaries- If reasonable salaries are given to the employees, it leads to
motivation.
 Job security- Presence of job security makes the employment steady. This results in an
increase in the level of motivation.
8. Outline and definition of Vroom’s expectancy theory
Victor Vroom gave expectancy theory which deals with management and motivation. As
per this theory, the reason behind a particular behavior of a person is that he is motivated to
select that behavior over others. This is because of the expected results that they would get by
adopting a particular behavior. Thus, this theory assumes that behavior is a result of conscious
choices that are made with the purpose of maximizing pleasure and minimizing pain (Hosie and
Smith, 2009). Vroom’s theory is based upon three beliefs such as valance, expectancy and
instrumentality. Valence is the importance that is placed by an employee upon the expected
outcome. It is affected by aspects such as availability of resources, skills and necessary support.
Instrumentality is the belief that one will get a valued outcome if he performs well. This is
affected by things such as clear understanding of relationships, trust in people, transparency of
processes etc. Expectancy is the belief that if the effort is increased the performance will also
increase.
As per Vroom, a motivational force is created by the interaction of the beliefs that
employees have about expectancy, instrumentality and valence. On the basis of this interaction,
employees behave in a way that brings them pleasure and helps in avoiding pain (Leon and
Garcia, 2011). On applying this theory in Virgin group, it can be analyzed that employees will be

motivated if they believe that by putting in more effort, they will demonstrate better job
performance which will lead to better rewards. If these predicted rewards are valued by the
employees, they will be motivated to do work.
TASK 4
4.1 Nature of groups and group behavior in Organization
A group is set of two or more people who are contributing for a common objective. The
behavior of a unit reflects its culture, environment and functioning in an organization. It
represents thinking and nature of people. The employees share knowledge, experience,
suggestions for helping each other. The role assigned to an individual is performed more
efficiently and effectively with the innovations and creativity of team members. The
troubleshooting is easier for a faction with team coordination (Dahlkemper, 2013).
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In Virgin Company, a group can be understood as a bunch of different functional people
working towards the vision of founder. About 50,000 people of different cultures are working
with organization and serving 50 countries around the world. The organization business
operations are categorized on the basis of centralized and decentralized structure (Grant, 2008).
All the group companies are irrelevant in business stream but there objectives are common to
strive for vision of Sir Richard Branson, founder of the organization. The groups of employees
are guided by managers and a structured management group is followed by CEO’s of the
company (Bass and Bass, 2009).
A group of employees represents a team of different functional departments. The
organizational behavior in Virgin is meeting the level of employee’s expectations. The group is

highly motivated by its manager and leader. Each and every employee in the group is assigned a
role with decision making controls and responsibilities. Thinking of each individual is reflected
in group act and by joining a group; employees are obtaining security, identification, self values
and power with goal attainment (Root III, 2015).
The group behavior shows the ability of members, unity of group, functional efficiency,
thought process of group and decisions making for objective accomplishment. It consists of
group thinking and structure of individuals (Pivo, 2008). On whole nature, of a group represents
the characteristics of people coordination and trade approach of functional units of the company.
4.2 The factors affecting development of effective teamwork in a organization
An effective team is formulated by studying the factor affecting Virgin organization. The
productivity of team will be effective if the environment is efficient to produce positive
outcomes (Dahlkemper, 2013). To develop an effective teamwork in company, supporting or
restricting factors are as follows. First the discussion is made on promoting factors.
 Variety: An individual involved in a team with the diversification of aptitude, intelligence
and decision making capabilities can affect the overall performance of teamwork. The
innovative and creative thought of team members helps to create a competitive
environment that uniquely represent the team among all groups of firm (Grant, 2008).
 Communication: An effective communication medium can challenge multiple problems
faced by a team. All members should have equal share in communicating ideas and
taking decisions for effective functionality (Cummings and Worley, 2014). A united and
plain communication system leads to hassle free conflicts and provides solution for squad
coordination.
 Leadership: Leadership is centre of origin for initializing work culture of a group.
Leaders motivate and discipline the unit to instigate in right direction. The organization is
highly affected by the leader’s strategy to manage members of the side.
 Team construction practices: A unit is constructed of communication system, practical
experiences and behavior of squad members, technical knowledge and functional
activities. A well mannered lineup has constraints like coordination, motivation,
leadership and effective communications (Northcraft and et.al, 2011).

On whole these are main promotional factors in development of effective teamwork and
other supportive factors are thought process, technology, management perspective to team,
focusing the objectives of the organization etc. Now the understanding made of factors prohibit
the development of an effective teamwork. The discussion is done on following factors affect the
teamwork.
 The down track objective selection or missing the objective in band development restricts
the effective unit work and the efforts made are useless to organization.
 The improper compensation can put a negative impact on the work strength of the team
members. The productivity also reflects from compensation scheme and leaders strategy
towards returns for efforts (Thenmozhi, 2015).
 The approach to deal with conflicts is a crucial factor which can put negative impact on
the teamwork.
 Inappropriate communication, leadership, attitude of the people in the group, technical
and professional kills are such factors that have an impact on effective team work (Root
III, N. G., 2015).
4.3 Evaluation of technological impact on team functioning within Virgin Group
Technology is a key constraint to the overall success of the organization. Virgin group is
an organization with rapid growth in different businesses. The advancement of information
technology can help the organization to find an efficient functioning of a team (Pivo, 2008). The
facilities like mobiles, computers, internet, networking, software, ERP systems etc energize the
efficiency of work in mentioned firm (Dahlkemper, 2013).
Virgin group is highly equipped with IT support system. The organization has firms like
Virgin mobiles which is dealing in cell phones manufacturing and network solutions. The firm is
technically advanced in tools, methodology and IT solutions in operation management of all
departments (Grant, 2008).
Team functioning is supported by ERP (Enterprises Requirement Planning) systems
which has application as SAP software. It emerge the access of multiple information system,
databases and research work (Cummings and Worley, 2014). The organization websites are

interlinked to each other so functional teams can contact each other and ease of operations
management achieved through support from technical unit in management.
The different operational groups are contributing to a common objective and to facilitate
their working technology has reach the bar with online support, MIS (Management Information
System), emails, file sharing systems, web addresses etc. (Bass and Bass, 2009).
The analysis of the organization is done for procedural advancement supporting the team
functioning and it is found that mentioned organization has maintained the world class technical
efficiency (Root III, 2015). The functional groups are utilizing maximum of it for effective
productivity and rapid action towards the objective of the team.
CONCLUSION
From the report it can be concluded that different leadership styles can be used in
different organizations like Easy Jet and Virgin Group. There are various approaches to
management which can be used by different organizations. Each approach has its own strengths
and limitations. Motivation at a workplace is affected by leadership styles. It is important for
managers to know about motivation. There are different theories of motivation such as Maslow’s
hierarchy of needs theory, Vroom’s expectancy theory and Herzberg’s theory which can used by
Virgin group for raising the level of employee motivation. Unclear roles, lack of communication
and ineffective leadership are the factors that hinder teamwork in organizations like Virgin
Group.

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