Organisational Behaviour In Sainsbury Plc Of UK

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Question :

Unit 7.1    Organisational Behaviour  



You have seen a recruitment advertisement for the position of ‘Organisational Development Officer’ at a large organisation in the City.  Following your application, you have been shortlisted for interview and have been asked to complete a number of tasks to demonstrate 

  • your knowledge and understanding of effective leadership behaviour, 
  • the impact of organisational structures and cultures on effectiveness 
  • how organisations can improve the effectiveness of employees in responding to business opportunities. 

Activity 1

As part of the selection process, you have been asked to prepare a report to submit at your interview. In this report you must demonstrate your understanding of effective leadership behaviour theory and leadership practice. 

Your report must cover the following topics:

  1. an evaluation of leadership theories
  2. an evaluation of the impact of managerial styles on organisational effectiveness
  3. an analysis of how motivational theory can inform employee motivation 
  4. an analysis of theories relating to work relationships and interaction  

Activity 2

You have been asked to give a presentation for the interview panel to demonstrate your understanding of the impact of organisational structures and cultures on the effectiveness of the organisation. 

Your presentation must cover the following topics:

  • an analysis of the characteristics of different organisational structures
  • evaluate the importance of organisational culture theory in developing organisational effectiveness

You will need to produce your notes for the presentation and have appropriate hand-outs for the panel detailing the topics covered.

To support your presentation, the panel have requested an information booklet, which must cover the following topics:

  • an analysis of how organisations can facilitate innovation and creativity 
  • an assessment of the importance of learning in organisations
  • an evaluation of effectiveness of team working 
  • an analysis of the effective management of change in organisations 

Activity 3

Following your interview, the panel have found it difficult to select one applicant and have asked you to complete a final selection task applied to a specific organisation of your choice.  You must create an information pack which demonstrates your understanding of how the organisation can improve employee effectiveness to respond to business opportunities. 

Your information pack must include:

  • an analysis of the culture and structure of the chosen organisation, including an evaluation of how they impact on its effectiveness

Activity 4

Congratulations - you have been selected as the new Organisational Development Officer.  One of your first tasks is to evaluate the effectiveness of organisational decision making.   Your line manager has asked you for a report.    

Your report must include:

  • an analysis of different approaches to organisational decision making
  • an assessment of management approaches to risk and uncertainty in decision making

Following your preparatory work, your manager would like you to apply your understanding by including in your report: 

  • an evaluation of the effectiveness of organisational decisions in an organisation of your choice.

Your report should be informative and well presented.   

Guidelines for assessors 

The assignments submitted by students must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit.  The suggested evidence listed below is how students can demonstrate that they have met the required standards.  

Activity numberACsSuggested evidence
1.1/1.2/1.3/1.4 The report must demonstrate learners’ understanding of a broad range of leadership theories.  When considering management styles, learners must evaluate the impact of at least three different styles on organisational effectiveness. 
The report should include a detailed analysis of how a range of motivational theories can inform employee motivation, along with theories relating to relationships and interaction. 
The report should be in an appropriate format suitable for the audience given in the assignment. 
22.1/2.2/3.1/3.2/3.3/3.4The presentation should cover all the main topics stated in the task, demonstrating analysis and evaluation.
The presentation format is flexible but must be supported by detailed notes, which demonstrate how organisational structures and culture impact on the effectiveness of the organisation. The handouts prepared by the learner must be detailed with appropriate style and content for the identified audience.
The information booklet should be appropriately detailed, covering all the main topics stated in the task, demonstrating analysis, assessment and evaluation.  The booklet should be well presented, clearly demonstrating an understanding of how the organisation can improve employee effectiveness to respond to business opportunities.  A range of examples should  be used to illustrate innovation, creativity and effective team working. 
32.3The information pack must provide accurate and detailed information on the culture and structure of the stated organisation that has been selected.  There must be a clear evaluation of how both impact on its effectiveness.  The pack may include a diagram of the organisation structure. 
44.1/4.2/4.3An informative and well presented report should demonstrate learners’ understanding of organisational decision making.  A range of decision making approaches should be considered.
Evidence should demonstrate an understanding of different approaches to risk management, including appropriate planning. 
Learners’ should then apply their understanding of decision making when evaluating the effectiveness of organisational decisions on their stated, chosen organisation. The evaluation should include clear judgements on the level of effectiveness and the reasons why. 

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Answer :

Organisational Behavior


Organisational behaviour is defined as the manners, approach of a different group of individuals and teams that work together in order to deliver a good performance. In fact, organisational behaviour is the reflection of employee behaviour in the workplace and its influence on others in the business organisation. The current paper discusses effective organisational behaviour in Sainsbury Plc of UK. From the beginning, Sainsbury remained to be the second largest chain of supermarket in the United Kingdom, and it consists of three definite segments of the business, Sainsbury's supermarket, and numerous retail stores and banking and financial services in the local and international market. On the other hand, it also analyses different leadership styles and behaviour that influence the organisational behaviour of Sainsbury and its structure and culture that has deeply improved the organisational effectiveness.  

Activity 1 

a) An evaluation of leadership theories

In the old ancient concept, leadership dealt with dominance and control with the punishment of the workers. As stated by Wellin (2016), leadership is the approach of directing and managing people at an organisational level for effective performance. In other words, a good leadership style of an organisation motivates employees' performance and change organisational behaviour. 

Great Man Theory:

The great man theory has been introduced with believe that, leaders are by born and they have the seeds of leadership in heritage (Northouse 2012). As per the great man theory successor of the leader can be the next leader. The positive factor of this concept is person have seeds of leadership from his or her past can understand the concept of leadership easily. On the other hand, the negative factor is all the human beings are not same that means every successor might be good leader, as they have seeds but might be not have that much quality or calibre to be a great leader. 

Trait Theory:

The trait theory defines that a person can be a leader by gaining knowledge from its surrounding area as well as from books. The positive factor if this type leadership is fresh idea, dynamic nature, innovative mind and dynamic personality. On the other hand, the negative factor is the seed that has been mentioned in great man theory. The reason is everyone is reading lots of books of leadership but everyone not have the quality to lead a team due to seeds of leadership in the blood (Northouse 2012). Hence, person who has all the possible qualities of leadership in it can be a good leaders at all.

Behavioural Theory: 

As stated by Hirst et al. (2016), behavioural theory mainly focuses on the different style of behaviour of leaders towards their subordinate members. The benefit of this leadership is the team leader will understand the feelings of its team members and can go with corrective decisions at the workplace. On the other hand the negative factor is the leader might falls in trouble while emotions of others because every human beings are belongs to different background.

Role Theory:

The concept of Role Theory is different based on situations. As stated by Walker and Shore (2015), every individual is assigned with a definite role at various levels in organisations. The major benefit of role theory is the organisation can get best available person at workplace in the absence of team leader who can influenced the team as well. On the other hand, the negative factor is this might create a kind of biasness among the employees, as they might think of about discrimination or biasness at the workplace. Along with this, in the emergency situation, it is difficult for the management to test every individuals to choose immediate leader. 

Lewin’s leadership styles or participative leadership style:

According to Lewin's concept, an organisation will be better operated following the appropriate leadership framework. Some authors Jordán Palacios-Marqués and Devece (2018) stated that as per demand of a situation of an organisation, leaders will apply whether being authoritative, participative or delegate approach. The positive factor of this style is that organisations get several options to get right leader to lead a time but the negative factor is it is a time consuming process. The management has to invest time in the search of good leader.

Situational Leadership or Hersey and Blanchard style of the framework:

The concept of this leadership style as stated by an author Meier (2016) that depending on variable circumstances a leader takes variable decision better for a team. In other words, Hersey and Blanchard's style are based on such framework that is implemented as per critical phase of an organisation. The benefit of this leadership style is at the time emergency, management get better leader but the challenging part it how far the team members are satisfied by the decision of new leader. 

Contingency Theory of leadership: 

The concept of contingency is different from others. As per Fiedler (2015), it also depends on situational management of crisis in a different way. The positive factor is, it mainly tries to emphasise that based on the situation of an organisation, leaders are most likely to work and fit into a definite style of the framework. The argument is it is based over an assumption that the leader can handle the situation if he or she fails to do than the result might be negative for the entire organisation.

Transactional Leadership Vs Transformational Leadership:

Both the concepts are different in approach working under the same organisation or different. Stated by authors Deichmann and Stam (2015) that the approach of transactional and transformational are significant for leveraging a generation of organisation that has focussed on ideas and long-term commitment on business. If a transactional approach is for development of the existing organisational culture, then the other is for changing the culture for better growth. In other words, if transactional puts emphasis on the relationship of followers then transformational will give importance to the values, morals and needs of followers for the future as well. However, the transformational approach is more effective for sustainable development of the organisation.

b) An evaluation of the impact of managerial styles on organisational effectiveness

There are different managerial styles are available in the field of management that derives that management can handle the entire organisation as per the requirement of the employees as well as the organisation. Autocratic style, laissez free style, democratic style and consultative styles are the different managerial styles.

Autocratic Style: According to this style the management behaves like centralised with their employees, under which the employees have no right to give their any suggestions to their management. Along with this they are even not allowed to take any small or minor decisions (Alvesson 2012).

Consultative Style: This styles defines that management is decentralised and they are including their employees in the decision making process. Rather the management has not given them power to take any decisions but they have right to speak up their points in front of their leaders or management and the management if founds possible than considered those facts (Alvesson 2012).

Democratic Style: As per this style, the management gives equal rights to all the employees to present their points. This style is quite different from the consultative because in the consultative the management is consulting their views with their employees before taking the decisions (Alvesson 2012). As per this style, management allows employees or departmental heads to mould the decision as per the situation or comfort level of the employees.

Laissez Free Style: As per this style, the employees or individuals got full freedom to attempt their tasks as in their own style. In addition, they get freedom to take minor decisions as per the situation for completing their tasks (Alvesson 2012).

c) An analysis of how motivational theory can inform employee motivation 

Different motivational theory influences employee performance at an organisational level. As stated by authors Chadwick and Raver (2015), that an employee is enthused by encouragement and self-actualisation at an organisational level. In accordance with this concept of Maslow’s theory of psychological needs, Sainsbury Plc has implemented a number of motivational techniques during the last few years, as it seems in the performance report. The joint association of Sainsbury and ASDA had strengthened the business more rapidly and proved to be beneficial for about 330,000 employees in total market share. The Company has introduced Grocer Gold Awards for Service for the fifth consecutive year ( 2019). Therefore, it has encouraged most of the retail staff to retain an inspired the psychological needs individually. On the other hand, as per Herzberg’s needs theory, the employees of Sainsbury eventually learned to accept change in the working environment and take challenges for the benefit in future and are more satisfied in the job role. For instance, Sainsbury has involved more employees with hard work in sustainable packaging increase by 35% as per the latest report by providing a learning environment ( 2019). However, the wages were increased, and incentive structure included. 

Alderfer’s ERG theory, and Taylorism: These scholars has mentioned few basic factors for motivating the employees those are psychological needs, money, pay and support of leaders respectively. The management of Sainsbury Plc is need to keep focus on these factors. Therefore, the employees of Sainsbury Plc enjoy the safety and security by establishing a strong relationship with colleagues at the workplace for effective performance and feel honoured to work in the company. In about 96,000 colleagues participated in the event of ‘We're Listening' survey, and 72 per cent felt that Sainsbury’s is a great place to work.

Mayo and McGregor- Moreover analysed further in theory of Mayo and McGregor that justifies that, the employees of Sainsbury not only work for money benefit but also love to involve in interaction for social needs. Other than this, as per McGregor, the company treats employees based on the Y factor here for nourishing healthy work environment and prove to be the largest supermarket chain market business in the world.

Equity theory, Skinner’s operant conditioning and Vroom’s Expectancy theory: These theories has been focused on the efforts of the employees or workers at the workplace. According to these theories, the management of Sainsbury Plc is needed to rate the efforts of each individual at workplace and should pay them reward as per their efforts so that they get motivation to perform better in the future.

d) An analysis of theories relating to work relationships and interaction

Social exchange theory: The social exchange theory is related to the concept of behaviour leadership theory. As opined by author Schein (2010) that the culture of an organisation is depend on a standard leadership approach that change the culture of a workplace behaviour and proceed accordingly. According to this theory, it has been analysed that the organisation Sainsbury Plc should focus on their leadership styles so that they can maintain the relationship between leaders and employees in possible way. The Sainsbury has defined hierarchy according to which every employees has right to talk to their higher level in case of any emergency.

Uncertainty reduction theory: As per Uncertainty reduction theory, it is the initial stage of interaction between two individuals. The theory helps to reduce the grievance that took places in the organisation or at workplace due to some internal issues. The organisation might implement this theory to reduce the uncertainties among the employees. This theory will even help the management of Sainsbury to handle their employees positively in the organisation.

Social Penetration or Relational Dialectics Theory

Social Penetration or Relational Dialectic Theory is indirectly linked with social exchange and reducing the extreme levels of uncertainty among individuals. As stated by Alvesson (2012), social exchanging of ideas and thoughts creates an effective bond between two diverse cultural backgrounds. It has been observed that in the organisation Sainsbury, the management followed the principle of scalar chain for better communication. The defined theory even analysed that in an organisation if the communication channel or system is well defined than it could not affect the overall productivity. 

Activity 2 [ppt)

Organisational Structure Introduction

An analysis of the characteristics of different organisational structures

An analysis of the characteristics of different organisational structures

Functional structure- A functional structure of the organisation is effective, as it mainly emphasises the specific area of specialisation of employees (Maduenyi et al. 2015). In other words, it identifies the skills and knowledge of individuals and makes a group or team with a set of goals and objectives. For example, the Small enterprises generally maintain a functional structure, and as per circumstances employees are assigned with static responsibilities. Software Companies of UK is one such example, where Ensoft Ltd is a small software based company consists of seventy thousand employees operating one particular business of producing software for larger organisations.  

Multidimensional structure:

According to authors Waddell et al. (2016), a multidimensional structure is able to handle multiple business touch points and covers multiple segments of the business. This following structure not only takes care of the local branch but also operates the international market as well. For example, the organisation having a multidimensional structure operates all the product development process, supply chain process and pricing process of an organisation as well. Unilever Ltd is one such company located in the UK with such a structure. 

Multidimensional structure:

Matrix structure:

This type of structure is implemented in the organisations of diverse product lines and services. In other words, most aerospace organisations apply this structure for sharing common resources in the multi-project environment in order to produce high-quality products by the cost-cutting edge (Roberts, 2018). This is effective in a situation when a company faces challenges to produce an excessive amount of production. For example- Starbucks Corporation is such company that manages business operations streamlined with a matrix structure.


Bureaucratic organisational structure maintains a rational structure at the workplace. In other words, it follows a pyramidal command structure that is standard and methodical procedures. This type of structures is used in the organisation in any circumstances irrespective of employee needs and expectations (Buchanan and Huczynski, 2010). For example, organisations of Defense and Federal Trade Commission or the Department of Police or Universities of England are bureaucratic in nature.

Bureaucratic organisational structure

Virtual organisations:

The virtual organisational structure works with distant clients with the help of strong networking channels via email or groupware as one single organisational unit for business goals and objectives (King and Lawley, 2013). For example, the Amazon and eBay work virtually by promoting its products online with the help of digital technology. 

Formal and Informal organisations:

Based on the above analysis of different structures of organisations, it has thrown an insight upon one significant point that a formal organisational structure has specified goals and objectives rather; an informal organisation may act in parallel or indirectly with a formal organisation. In other words, the Church such as Westminster Abbey, Hospitals, such as London Bridge Hospital and Schools such as Harvard Business Schools are acclaimed as formal organisations that provide employees and other stakeholders’ definite goals for sustainable growth (Robins and Judge, 2012). On the other hand, informal organisations such as Oxfam, an involuntary organisation based in London can be beneficial for any formal organisation with a common interest or may not. 

Characteristics of Organizational Structure

Centralised and decentralised Structures:

As stated by Maduenyi et al. (2015), centralised organisational structure is operated under one single individual in the decision-making process and decentralised focus on the variety of individuals responsible for a business decision-making process. In relation to this concept, several companies are leading in the UK and handle circumstances as per situation demands (Wilson, 2010). McDonalds’ is one example of following centralised administration, whereas Sainsbury function under decentralised configuration in the supermarket chain business over the world.

Evaluate the importance of organisational culture theory in developing organisational effectiveness 

Organisational culture is significant for growth and development of business performance. As stated by authors Waddell et al. (2016), that an appropriate model of cultural dimension produces awareness of the cultural gap between existing and preferred cultures in an organisation. 

importance of organisational culture theory in developing organisational effectiveness

Development of work culture (Harrison’s Model of Culture):

The Harrison’s Model of Culture defines that the management of the organisation has to keep focus on the rules and regulations based on which they can guide their employees as well. As an employee, they are always in the search of better working environment and these rules and regulations will help Sainsbury Plc to maintain the effectiveness.

Increases Motivational Level:

The Likert system of cultural Theory is a new dimension that helped to grow soft areas of the organisation. In other words, Sainsbury mission is to focus mainly on all the essential aspects of organisational effectiveness of being benevolent, consultative, participative and authoritative. Therefore, it will motivate employees, involving in teamwork and improving the communication process in the organisation.  

organizational cultural Theory

Improving the Learning Process

As per Chang and Lin (2016), the learning process helps in developing the accountability of an individual. In Mint berg’s culture theory, it defines work progress by applying various innovative learning sessions for employees. The organisation Sainsbury might implement this theory for improving the accountability of the employees at the workplace that will help the organisation to maintain the effectiveness at the workplace.

Legislation and ethics in organisational culture

According to the concept of the pedlar, an organisation needs to abide by the rules and regulation prescribed by the higher authority (Wellin 2016). In other words, it controls the laws and norms based on which a company establishes and functions. This theory will help the organisation Sainsbury for managing rules and regulations at the workplace so that the employees could get better support as well as working environment.

Conclusion on Organisational structure

Booklet for supporting the presentation: 

An analysis of how organisations can facilitate innovation and creativity

An assessment of the importance of learning in organisations:-

An evaluation of effectiveness of team working

An analysis of the effective management of change in organisations

Innovation and creativity is a significant part of the development of an organisation (Waddell et al. 2016). Managers play an important function behind such development. Sainsbury' culture can be improved through the help of innovative and creative techniques applied by the management. For example, Sainsbury has more than 20 years experienced leaders at the workplace that is helping out the organisation to go with innovative ideas in the search of success.
Learning culture is defined as a systematic way of acquiring knowledge and increasing competency (Chang and Lin 2016). This, in other words, is a process of gaining experience from the organisation through the help of a training and development program. Sainsbury has introduced some planning and program for retaining its staff in the stores such as Colleague Bonus scheme, Reward systems for the staffs and some apprenticeship program ( 2019).
Teamwork is built on trust, commitment, conflict, accountability and the ability to solve any kind of problems and face any challenges at an organisational level (Xenikou and Furnham 2012). For example the management of Sainsbury can use 360 Degree Performance Appraisal technique for measuring employees’ accountability. 
Effective management of change in the organisation is considerable in order to increase the ability to face tough competition level in the outside market (Michailidis and Banks 2016). For example, the organisation Sainsbury might go for regular or frequent change in the organisation to compete with external market, as how the organisation has implemented Digital Marketing concept. 

Innovation and Creativity
Learning in Organization
Effectiveness of team working
change management process
By incorporating team interaction and teamwork culture through social interaction, it can facilitate the organisation with creative results. In addition, the employees need to show reaction towards risks factors and share in front of the management for solving the issues. Moreover, the reward management system needs to be modified and operated with strategic initiatives.
Most of the colleagues have reported with various issues with diverse thoughts and ideas at the workplace. However, it is not enough as learning organizations, therefore, diversity management is an essential element required for Sainsbury Plc organisation for developing for engaging more number of employees.

In other words, due to the lack of any traits of being incapable of reflecting these in action fails to form a strong team. Therefore, whether it is a small or a large business firm, teamwork is the collective way of working and achieving the goals and objectives of an organisation. It motivates a group for working as a single unit.

Change due to Merging: If a company is unified or gets collaborated with some other larger organisation, there will be the strategic change in management as per volume of share and investment made by the partner firm. 
Change due to downsizing:
If a company goes down in sales and productivity, the issues need to be identified within the employees, as the employee involvement gets reduced due to employee turnover issue in the market. 

Activity 3 

An analysis of the culture and structure of the chosen organisation, including an evaluation of how they impact on its effectiveness 

 analysis of the culture and structure

Analysis of the information pack

Analysis of the information pack: 

This part aims to explain the organisational structure and culture of UK Company which has been forced to alter its strategy several times over decades to stay afloat in the marketplace. Sainsbury is the parent organisation of Sainsbury Supermarket, Jackson's Stores and Bells Stores etc., and its organisational culture has made it function effectively within a competitive market ( 2019). The organisation concentrate on local businesses, build upon current investment to reclaim its market position in the supermarket sectors.

There exists mainly four kinds of organisational culture. As per the Power culture effective to medium to the small sized organisation, in Sainsbury decision within organisational context present power culture being centralised around one important person ( 2019). It means the company is normally run by the sole trader that allows it take full control of every decision. In the above-mentioned organisation, department managers observed to follow power culture to take control of all production and staffs working within the department.

However, role culture benefit from specialisation, staffs within the organisation are focused on the specific role that assigns them to a job description and ultimately increases efficiency for the organisation. While Sainsbury recruits applicants or individual, it makes sure that staffs know exactly what is expected and is specific to their job role whether it is the team leader or sales assistance.

A Task culture mainly founded in teams, the respective culture has been significant to improve organisational effectiveness as it allows staffs to be much flexible and facilitate more freedom to them ( 2019). The employee would generate motivation while working as a team and pull each other through a hard time. Sainsbury respective to task culture always tries to confirm that its employee feel valued and every month it has visits from mystery customer to measure the company's Making Customer Matter.

Person culture related to specific jobs where they are their own boss and take every decision on their own. Hence overall organisational culture depends on the organisation and functional areas of its departments. For Sainsbury, it is a large part of its daily operation due to its big hierarchical structure.

Sainsbury Organizational structure

Figure: Sainsbury Organizational structure

(Source: 2019)

Looking at the organisational structure of the Sainsbury it would be said that it functions under the hierarchical structure. Every staff are different within hierarchy however organisation confirms that everyone is treated equally. As per the above figure being provided it would be said that chairman of the company lies at the top hierarchical structure that has the responsibility to control and support working on lower hierarchical departments of Chief Executive and Chief Financial officers ( 2019). Operating under the hierarchical structure, functional interface ladder mounts from the top management level.

Within pyramid, several departments ranging from senior independent director to IT director are assigned with clear goals, responsibility and roles to achieve organisational objective and mission in an effective manner better. The financial officer that has the responsibility to efficiently track expenditure on new projects and allocate resources for growth and development organization also is the head of lower hierarchical departments like the independent director, trading director, logistics, and service, HR and convenience directors. In Sainsbury, they are assigned with significant managers as well for the purpose of administration and quality controls ( 2019). Utilising such a form of organisational structure, the supermarket retail company provides specific pathway for success and promotional strategy under trading, retail and logistics departments.

In reference to the influence on organisational effectiveness and its performance in a competitive market like UK, culture and structure of the Sainsbury has found to have its own significant role. A company like a supermarket retail organisation might increase its effectiveness by utilising several benefits provided by the hierarchical framework of working. While staffs are aware of clear hierarchy, they know which step to choosing to seek task support or promotion and appraisal. Such form of structural approach improves its working or functional effectiveness within a competitive market as it implements clear authority for departments and works. Managers display authority as per management level thus eliminates confusion and increases effectiveness. Such functional framework influences every individual to understand the chain of command. There is clear communication direction, and subordinates in Sainsbury know whom to report and where to get directive or information in case of any needs.

However, the measure of effectiveness also often lies in organisational culture followed by a company. Sainsbury power and task-based culture which is most evident in the organisation depicts the competing value system. The culture of the company provides its effectiveness attribute to be adaptable and flexible as the ability of the organisation to strike a balance in case of tension or in-disciplinary situation (Chang and Lin 2015). Culture in Sainsbury including independence of personal preference, self believes, and cultural properties help the company to create collaborated work in performing a job effectively and enable members to understand each other in the workplace. It is being a pattern of shared believes and values, improve organisational effectiveness by helping members of the company understand its functioning and ultimately teach employees behavioural norms in the workplace. Working environment surrounded by the culture within Sainsbury shapes the process and job relationship in the company. Company's culture is also undertaken into deliberation in the decision making the procedure of long duration plan that helps it to depict market-oriented behaviours and manifest competitive advantages and nourish the firm health ( 2019). Thus in terms of the company's structure and culture it would be explained that both impact its effectiveness in distinctive ways. The culture which manifest care, the symbol of communication, control and integration, the structure of the organisation helps it build better coordination, strategic direction, incentive system, information transmission, involvement and collaboration.

Activity 4 

4.1 An analysis of different approaches to organisational decision making 

Making effective decision is always highlights the key role of leaders within the organisational context where any wrong move might hamper the firm's reputation and brand image within the market. Depending on several approaches in decision making, they mainly exist of four kinds.

Different decision making approach/style

Figure: Different decision making approach/style

(Source: Michailidis and Banks 2016)

As the per above figure being provided it would be observed that depending on ambiguity tolerance and values orientation, decision-making approaches vary significantly. In the Directive form of decision-making managers of supermarket retail organisation like Sainsbury might prefer clear and clear solution. The advantage of this approach is being relied on existing rules, the respective approach would allow making a decision rapidlyThe problem related to this approach is the management have to be centralized in such cases to take primitive decisions. In the analytical approach of decision making, complex problems would be preferred and carefully evaluate an alternative to deliver an effective decision that improve quality of company's products or services within the competitive market (Haz─▒r 2015). The positive factor of this approach is that in such form of analytical approach, an individual willing to use innovative methods and enjoy solving issues. On the other hand, the cons of this approach is it might tough for the management to handle each of the employees if they start individual decisions.  The behavioural approach assumes that decision makers operate with bounded rationality than being with perfect rationality assumed. This is procedure neither completely rational nor exhaustive often used to decrease uncertainty in decision-making initially. For instance usage of training models in Sainsbury has observed to enhance employee performance (Alexander 2015). The benefit is this approach would allow at leadership or managerial role to deliver decisions based on concern for the organisation and interested in helping others. The cons of this approach is might be conflicts rises among the employees, as all the employees are not belongs to same background. Conceptual decision-making approach let decision maker being socially oriented and solve issues or problems creatively. For the situation where large decisions are to be made, and there is no hurry, causing conceptual decision would lead ideas reached with cross-functional teams (Michailidis and Banks 2016). The advantage of this approach is it is artistic and humanistic approach rather being generating every alternative; the decision makers in the prior mentioned organisation should try to go beyond thumb rule and satisfy limitation and generate several alternatives as possible within provided time, practice and money in the situation. The disadvantage of this approach is in this way the organisational decision making results to be effective in its nature which is taken significantly to improve productivity and performance of the company within a frequently changing market region like the UK that is always based upon the assumptions. Being aware of several alternatives and decision-making approaches would help to adapt the best decision made for every situation.

It has been analysed that individual within organisational context often tends to adopt specific decision-making methods as a result of factors like own personality, nature of relation they have with other people, time pressure and organisational culture. Short-listing of viable alternative would be helpful. Apart from above mentioned major decision making approaches, some other decision methods that might be considered depending on situation is ‘Withdrawing' as holding off decision making, ‘Smoothing' concentrating on region of agreement and avoiding differences, ‘compromising' organization try to come with decision which offers a certain degree of satisfaction to every party. ‘Forcing' as another situation-based decision making would lead Sainsbury to executive a specific decision knows agreement failed to be reached and ‘Confronting or problem-solving' helps to work through issues to produce a significant decision in favour of organisational effectiveness (Alexander 2015). 

4.2 An assessment of management approaches to risk and uncertainty in decision making 

Risk being one of the uncertain factors might arise at any time or moment within the business enterprise. As per the Conceptual Decision-Making Approach business venture might take effective decision making at the time of risks and uncertainty arose to eliminate their negative influence to a large extent. Apart from such, by the help of Directive Decision-Making approach, higher executives of Sainsbury might concentrate on conducting risk management planned as it would help to take effective and quick decisions without influencing profits. Whereas, planned risk management would help cited organisation to decrease risk existed in the retail organisation as well as being capable of reducing operational costs that ultimately help them generating the potential amount of revenue in coming time duration. Several stakeholders have own importance within corporate venture, Sainsbury should fulfil their demands and requirement at timely manner (Hafenbrack et al. 2014). In case firm failed to do so, losing the potential number of stakeholders might lead to risk and would hamper organisational growth and performance. When manager lacks significant information, the risk arises in accordance to which it is suggested that while making decisions under the state of risks Sainsbury managers should determine the probability associated with every alternative depending on available information and their experience according to the Analytical Approach of Decision-Making. As decision making under uncertainty, it observed to have existed when the future circumstances are unpredictable and in the state of flux. In the environment of uncertainty as per the The Behavioral approach, the cited firm’s managers should make certain assumptions to produce a reasonable framework for decision-making. In the modern approach of decision making, risks should be analyzed, and probabilities should be included within several courses of actions and Utility theory based on the notion of individual behaviour decision might be based on assumption depending on varying people, events and positions.

4.3 An evaluation of the effectiveness of organisational decisions in an organisation of your choice 

Organisational or company's decision play a vital role in Sainsbury being a successful retail venture in UK nation and take effective decisions that initiate its stability and growth. Staffs play the crucial role in the contribution of actions as per decision being taken, and hence the and hence the management of Sainsbury has shown their involvement at the workplace for increasing the capability and efficiency of their employees by introducing the reward system for them ( 2019). Different decisions are taken considering stakeholders that are major sole of business ventures. It is evaluated that effectiveness of organisational decisions being made as per knowledge of improvement opportunities, managers or responsible leaders within Sainsbury often diagnoses areas of growth that would allow the focus of resources and leverage results as a consequence. To define the future of retail business, firmly establishes an organised decision, confirming efficient interaction between division teams or committee and confirm communication procedure so that decision taken in timely ways. In the justification of this above statement it has been observed that the principle of Scalar Chain adopted by the organization Sainsbury has helped the management to set formal and systematic way of communication channel at the workplace ( 2019). Big decisions are taken in reference to keeping employees being satisfied to have been real assets to the firms to keep them happy and retained for the longer duration. However, the decision to improve customer's services and product deliverance quality also led company being effective in gaining loyalty and trust of customers. Therefore, Sainsbury in order to provide stiff competition to its major rivals within market it should ensure that its decision respect to policies and significant modification in functioning should be focused to grow and develop firm at a potential or stable rate.


In the affirmation to the above study being conducted it would be concluded that organisational behaviour is the key to its sustainability within the competitive market. The studies second largest supermarket retail company Sainsbury is noted global business venture that has effective operations across the UK. The unit discusses several organisational structure and cultures along with their role in improving organisational effectiveness. From the information provided within the unit, it is evident that several decision-making approaches might be taken by leaders or managers within the cited company to be significant their decision that aims to develop and grow overall performance and workplace productivity of supermarket retail business.