Business Models and Organizational Behaviour

This assignment requires students to analyze the relationship between business models and organizational behavior. It involves critically examining scholarly articles provided on topics such as cloud computing, enterprise risk management, business model innovation, and organizational psychology theories of motivation. Students need to synthesize information from these sources to understand how different business models influence organizational structure, culture, and employee behavior.

LEADING BUSINESS
ORGANISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Task 1...............................................................................................................................................4
1.1 Ways through which Marks and Spencer can motivate its employees.................................4
1.2 Evaluation of leadership style- Critically evaluate Steve Rowe’s (new CEO) leadership
style.............................................................................................................................................6
1.3 Analysis the contribution of management structure in the success of an organisation.........8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

ILLUSTRATION INDEX

INTRODUCTION
Business Organisation is group of person that come together to achieve specific
commercial goals and objective. It is a collaboration of person to attain some organisation goal.
This report is based on the case study of Marks and Spencer, which is the major British
multinational retailer of clothing, home products and luxury food products. It has been noticed
that the business firms need to consider strategic formation in appropriate manner so that goals
and objectives can be accomplished. It is also significant to make sure about change management
activities so that work culture can be enhanced for sustainable development. Motivation and
leadership styles are also factors that helps in effective management of work activities along with
maintaining better morale among members. This report discusses about the scenario where
Marks and Spencer is taking steps to revive its fashions after a bigger than expected fall in sales
of clothes over Christmas due to unseasonal weather and lack of availability (Osterwalder and
Pigneur, 2010). To survive in the competitive market, where German rivals Lidl and Aldi are a
growing force top level management needs to design new strategies and analyse the ways to
implement this strategy. This report critically explains models and theories that can motivate the
employees in time of revolutionary change. This report throws light on importance of leadership
style in bringing change in the organisation. This report analyses the contribution of management
structure in attaining goals and objective of organisation.
Task 1
1.1 Ways through which Marks and Spencer can motivate its employees
Motivation theory is considered as theoretical construct which is mostly used to provide
explanation of behavioural aspect. It represents the reason for people actions, desires and needs.
Motivation can also be defined as combination of activities that directs the behaviour of person
to meet goals and objectives.
Marks and Spencer, renowned multinational retailer is facing hard times due to drastic
fall of sales due to unseasonal weather (Carroll and Shabana, 2010). CEO needs to design
strategies to compensate this loss, this will directly affect the working style of employees.
Employees are the one who directly deals with the customer so they can understand the demands
and expectation of customers (Mark Panay, 2016). So it is very necessary to make employees
happy and motivated to work hard for Marks and Spencer. In addition to this, it has been noticed

that the M&S is focused towards intrinsic theory. In this company is focused towards key needs
of employees in order to meet their satisfaction level and enhance their morale. For example,
management of M&S is offering better services to its employees so that they can feel better
while working in organisation. High quality of safety measures and better canteen services are
key priority of organisation in order to enhance motivation among members. In order to have
better opportunities, the management of M&S need to have continuous development in its
intrinsic theory. For example, the health and safety measures policy need to be modified as per
needs of employee's. Along with this, offering a insurance service is also beneficial for the
organisation that helps in meeting key needs and objectives.
However, the needs of workforce is now changing and they are also focused towards
monetary benefits because it helps them in meeting key objectives. In this respect, management
of M&S can also focus on extrinsic theory because it mainly focuses on monetary rewards.
Organisation can provide monetary benefits to employees that are focused towards ethical and
extra ordinary performance. It will enhance employees of morale and motivate others to meet
perform in appropriate manner.
Maslow's hierarchy of needs: M&S manager motivate its employees by identifying the
driving factors of employees that would motivate them to perform well. Company focuses on
physiological, safety, social, esteem and self-actualization. Management of Marks and Spencer
interact with its employees to understand their needs so that improvement in food, shelter can be
taken into account (Smith, Binns and Tushman, 2010). Monetary rewards are also being offered
to meet esteem. In this, incentives and bonus plan plays key role in meeting social and esteem
needs. Regular health check up is being organized by organization to meet safety needs. On the
other side, Primark is offering personal security, health insurance to employees for better
accomplishment of safety needs. Accommodation and school service for children is also
provided by Primark in order to meet to physiological needs. In order to meet self realisation the
organisation is focused towards training session so that their performance can be improved. As
same the M&S is focused towards offering challenging task so that self learning can be taken
into account for meeting standards of self realisation. Both organisations are focused towards
organising office and social parties and events so that employees social needs can be
accomplished effectively.

Herzberg's motivator-hygiene theory: M&S provide challenges to use the full capability
of employee and workforce because it also allows to advancement in level of responsibility
(Smith, Binns and Tushman, 2010). Marks and Spencer is having determination of factors that
helps in satisfying employee's and improve work environment. M&S is having consideration of
hygiene factors to motivate the employee. Key safety measures are being considered by M&S to
have better motivation among members. Primark is focused towards creating dissatisfaction into
satisfaction by having continuous changes in measures. Company is also offering competitive
salary to make employees feel good to work with organisation (Marston and et.al, 2011).
Cultural values are also being considered by both organizations to meet hygiene factor. To have
better motivation among members the M&S is offering non-monetary benefits. However,
Primark is focused towards both monetary and non-monetary aspects. It enhances the morale as
well as self recognition that helps in meeting key goal and objective of an organisation.
1.2 Evaluation of Steve Rowe’s (new CEO) leadership style.
Leaders plays vital role in bringing change in the organisation and make their team
members comfortable in the dynamic environment. Marks and Spencer needs to carefully
evaluate the leadership style as it is essential for successful change management. Leaders need to
communicate the need for such change and ways to bring change in an organisation so that
resistance percentage among employees lessen (Sosna, Trevinyo-Rodríguez and Velamuri,
2010). Steve Rowe is currently focused towards situational leadership style in order to meet
goals and objectives. In this, Steve take decisions as per market needs, it means the company is
focused towards market research so that needs identification can be accomplished effectively. As
per current situation the use of internet and electronic tools are being used effectively by
businesses. As per analysis of these circumstances the Steve is also focused towards use and
promotion of e-commerce in order to meet goals and objectives. It indicates that the situational
leadership style is being adopted by leader of M&S. In present conditions the immediate
execution of decision is not possible because it demands proper analysis of situation before
implementation which reduces the time of discussion with employees. Sometimes, it demotivate
the employee as leaders does not have proper involvement in decision. However, the CEO is
facing few issues in operational activities so he can focus on leadership change activities in order
to improve performance.

By having consideration of transformational leadership, the CEO can have discussion
with employees so that change needs can be identified in appropriate manner. It will assist in
effective identification of needs and creation of vision as per change guidelines. In this, Steve
can also consider situational aspects while having discussion with members because it will
provide strength to the leadership style. It will assist in meeting key goals and objectives in
appropriate manner and lead business to impressive level of success. Decisions in regard to
authorisation of activities can be taken into account as per transformational aspects. It will assist
in dealing with diverse situations so that goals and objectives can be accomplished effectively.
In addition to this, it can be said that the leadership style consideration is significant
because it helps management to design activities in such manner that the work can be managed
effectively. Along with this, it also allows to enhance the morale of employees so that goals and
objectives can be accomplished in appropriate manner. Leadership is significant because it
provides better identification of needs and expectations of employees which is beneficial to have
effective designing of activities. It allows to make sure that the satisfaction is given top priority
to regain competitive position in the market. It enhances morale of employees and allow them
take interest in the work that they are expected to be performed as they know the reason for such
change.
Transformational leadership will also provide better communication opportunities among
members which is beneficial to have better improvement in job satisfaction along with resolving
problems. In order to manage the change, management need to focus on key aspects such as
identification of opportunities and threats that may affect the overall outcome. Communicating
the vision to a wider audience and responding to feedback as required to win commitment to the
change. It is also beneficial to make sure that activities are being considered in appropriate
manner. Proper support of employee's is also significant because it helps in meeting key goals
and objectives. If change activities does not have support of leader then it might be possible that
the activities may affect business in negative manner. Moreover, it is also significant for leader
to make sure that the obstacles are being removed so that overall performance can be improved.
It is necessary to have improved focus on proper allocation of activities so that satisfaction level
among members can also be improved in appropriate manner.
Marks and Spencer can use combination of situational and transformational leadership
style. Based on different situations, leader can adopt different leadership style. If the company

wants to take confidential decision and requires immediate implementation on that strategy, can
adopt transformational leadership style. It is because it allows to have members consultant in less
time period. (Olson and Dash Wu, 2010). But if the firm wants to design strategy for sales
promotion or marketing, leader can organize open sessions or meeting with the sub-ordinates to
take their views and feedback regarding customer's demand and needs. It can be considered as
situational analysis so that decisions in regard to promotion and marketing can be taken into
account in appropriate manner. In this, management need to have effective collection of
information in regard to the problems which are faced by customer's. It means leader of Marks
and Spencer need to ensure that the leadership style is being selected in successful manner to
mage change effectively (Sosna, Trevinyo-Rodríguez and Velamuri, 2010).
1.3 Analysis the contribution of management structure in the success of an organisation
Management structure is the structure of authority that defines communication channels
and accountability channels in an organisation and with its external environment (Diksha
Kashyap, 2015.). It is very essential for marks and Spencer that all the functions are properly
coordinated to get expected outcome, it is only possible when company have an organisation
structure. Management structure helps to build a system of “checks and balances” it will help
management of marks and spencer to evaluate the progress towards attainment of objectives so
that company can take corrective measures as soon as possible (Brammer, Jackson and Matten,
2012). It has been noticed that the business firm is currently not focused towards expansion
activities because leader is facing critical issues. It means the leadership style need to be changed
so that organisational structure can be improved in order to meet goals and objectives. In recent
years the M&S is focused towards improvement in e-commerce activities because use of
technology and electronic tools has been increased in recent years. However, the implementation
was not much up to the mark because of improper consideration of structure. It means it is
significant for business firm to ensure about structure. M&S has invested more on online and e-
retailing in order to have sustainable development.
In addition to this, it can be said that the M&S is currently focused towards Mintz Berg
Structure. In this, the structure is mainly divided in technostructure and support staff. It indicates
that the centralised activities are not being considered effectively by the management. It means it
is significant for organisation to have changes in organisation structure so that centralisation can
be boosted. It will provide effective and responsible combination of activities to boost

effectiveness of workplace. In order to have better opportunities in the market along with
improving structural aspects the roles and responsibilities must be defined in appropriate manner
so that issues can be resolved. Collective working and centralised structure need to be developed
so that control over activities can also be improved.
It means the improved focus on centralised structure may amend the overall performance
and lead business to impressive level of success. With an assistance of centralised structure the
business firm can have focused vision so that activities can be performed in appropriate manner.
Centralised structure allows leaders and members to have effective establishment of
communication so that information can be shared in appropriate manner. It is also necessary for
business firm to have proper communication about designed vision so that goals and objectives
can be attained in effective manner. It provides better prevention to potential so that issues can
be overcome. By having improved focus on centralised structure, the business firm can have
better opportunities in the future. It means the entity can have sustainable development by
ensuring that the communication is appropriate among members.
It has been noticed that the power culture has great impact on the stakeholder that need to
be understand effectively from the management of Marks and Spencer. If management is focused
towards positive power then it will enhance the involvement of stakeholders so that overall
productivity of organisation can be improved in diverse manner. It also provides power to
employees so that decisions can be made in appropriate manner. Rewarding employees for
strong performance and appointing employee's as per their needs is significant for better
opportunities in the market. If management is creating negative power within organisation then it
may affect the employees morale which might affect overall development in negative manner.
Management must have responsibility for organising the functions of business into departments
that will help them to accomplish business operations effectively and efficiently (Zott, Amit and
Massa, 2011). Leader must reflect the positive power because the negative kind of business may
affect the employee's morale. It may threaten the overall working and lead business to critical
issue.
Along with this, feedback from customers can also be considered as significant aspect in
order to make sure that the goals and objectives can be accomplished effectively. By having
effective gathering of information in respect to organisation structure the management can have
effective allocation of task and responsibility of each employees. It will also lead business to

better success and improve overall performance in diverse manner. By performing the same
functions daily, will help the employees to gain specialisation in that particular field. It also
helps to bring about knowledge and skill development among the workforce, and this can help
Marks and Spencer to achieve its functional goals.
Other than this, company can also focus on following aspects to have improvement in
organisation structure: Focus on strategy: effective organisation structure allows a company to specifically
focus on single goals and objective rather than each individual working towards its own
goals and aim (Schaltegger, Lüdeke-Freund and Hansen, 2012). This can be an ideal
structure for Marks and Spencer as each department needs to focus on its own work and
function that will maximize performance by encouraging peer cooperation among
different departments through supervision and coordination. Economies of scale: every individual has been assigned fixed job and work so the
employees can focus on their own work that will avoid duplication of work (Chesbrough,
2010). This result in economies of scale as efficiency increases as operational scope
increases. Productivity: People with same knowledge and skills are grouped together, they share
knowledge and information with each other that helps employees to become specialist in
that field. This results in operational efficiencies and improves productivity level
(Chesbrough, 2010). It reduces the work related mistakes that will contribute in the
success of Marks and Spencer.
 Training is facilitated: Marks and Spencer can provide training session very easily for its
employees as the focus is only on a limited range of skills (Cavusgil and et.al, 2014).
Within the functional unit, The clear way of career path motivates the employees to
advance their careers as they move up within the hierarchy. It will encourage the
employee to improve their performance and work hard for the company.
All these benefits contributes to the success of Marks and Spencer. Management can plan
out their strategies in a better way as the role and responsibilities are clearly defined (Pava.,
2015). Marks and Spencer can train their employees on the basis of their functions so that they
can deal with the customers and resolve their grievances. By dividing the work on the basis of

functions, helps them to achieve economies of scale. With the clear flow of responsibility and
accountability, will reduce discrepancies and confusions in the organisation (Neubauer and Lank,
2016). This will not only help in the growth and development of organisation but also helps to
improve the performance of employee. It will help them to gain expertise in their field that
would contribute in building their career.
CONCLUSION
It can be concluded that business organisation plays integral part in the success of the
company. Marks and Spencer can cover its downfall of sales by working on its leadership style
and motivational theory. Management of Marks and Spencer can identify the needs of employees
and give them reward accordingly. It will encourage the employee to co-op up with the
management in this situation. Management can take the help of Maslow theory to understand the
expectation of employees in a better way (Galaskiewicz, 2016). To deal with this tedious
situation, leaders can adopt the combination of autocratic and democratic leadership style. This
will ease the work of leader to bring change in the working environment. Employees regularly
deal with the customer so they know the taste and preference of the customer in a better way
(Haeckel, 2013.).
Top level management can take the viewpoints of their employees for designing various
strategy for Marks and Spencer. Defined Structure of the organisation helps the management to
attain the goals and objectives effectively. Marks and Spencer is having functional organisation
structure where departments are designed on the basis of different functions (Osterwalder and
Pigneur, 2010). Here, employees are assigned defined roles and responsibilities and by
performing that task regularly will make them specialise in that particular field. This will
contribute in the productivity and success of Marks and Spencer.

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