Case Study of Sainsbury- Impact of Leadership Style

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“Evaluate the impact of leadership style on the
organizational effectiveness: Case study of
Sainsbury
ACKNOWLEDGEMENT
I am thankful to my mentors, friends and family who have provided me great support at
the time of carrying out the study. Especially my mentor who supported me in tough situations as
well as provided me right direction to carry out the entire course of study in the best possible
manner.
ABSTRACT
Leadership acts as a base for company which helps in attaining the goals in a manner in
which it is planned. However, due to dynamic business environment and diverse culture, leaders
face issue in managing the subordinates. Therefore, leaders need to incorporate different set of
styles in order to manage the workforce in a desired manner. In context to retail industry which is
considered as one of the most competitive industry in the world requires proper management and
execution of different approaches and resources so that position can be maintained or improved
within the target market.
Among the different theories of leadership and motivation linked with the organizational
effectiveness, the most prominent is transformational and transactional theory of leadership. It is
because, different authors stated that transactional leadership style is the approach through the
help of leader motivates employees or subordinates through a system of rewards and
punishments. However, different leadership styles are being employed by the store managers of
the Sainsbury so as to motivate or encourage their subordinates and influence them to carry out
the work in effective and efficient manner.
Further, it has been identified that most of managers prefers to change their leadership
style which is suitable as per the situation and assist them to lead people in right direction and
guide them to attain desired results and outcomes. Furthermore, operating in such a competitive
environment leadership approach assist the managers to implant dedication and loyalty within
the employees so that they can commence their work in more reliable manner.
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION.........................................................................................................1
1.1 Background of the Study.......................................................................................................1
1.2 Rationale of the Study............................................................................................................1
1.3 Research Aim and Objectives................................................................................................2
1.4 Research Questions................................................................................................................2
1.5 Framework and Analysis.......................................................................................................2
CHAPTER 2 LITERATURE REVIEW...............................................................................................4
2.1 Introduction............................................................................................................................4
2.2 Leadership style and Performance.........................................................................................4
2.3 Organisational effectiveness..................................................................................................8
2.4 Conclusion.............................................................................................................................9
CHAPTER 3: RESEARCH METHODOLOGY................................................................................10
3.1 Introduction..........................................................................................................................10
3.2 Research instruments...........................................................................................................10
Chapter 4: Data Analysis....................................................................................................................15
4.1 Introduction..........................................................................................................................15
4.2 Analysis...............................................................................................................................15
4.3 Conclusion...........................................................................................................................22
Chapter 5: Conclusion and Recommendations...................................................................................24
5.1 Conclusion...........................................................................................................................24
Recommendation.......................................................................................................................25
REFERENCES...................................................................................................................................27
Appendix............................................................................................................................................29
Questionnaire.............................................................................................................................29
CHAPTER 1: INTRODUCTION
1.1 Background of the Study
Leadership is a key concern for the organization as it aids in developing path to lead
towards the shared goals and objectives. It supports in developing vision for business along with
strategy through which it can be attained. With the help of effectual leadership style, company
can able to retain skilled and competent employees who essentially help in boosting the
effectiveness. Also, it aids in attaining business objectives in desired time frame. It is required
that leader must inspire, influence and motivate employees so that coordination with
subordinates can be developed. It is evident from the study of Analoui, Doloriert, Sambrook,
(2013) that now a days, manager faces issue with regards to adopting standard leadership style
due to differences in the culture and beliefs of employees. Further, leader faces issue due to
differences in the personality of employees and this certainly affects the business operations.
Therefore, it is a serious requirement for assessing the impact of leadership style on the
organizational effectiveness and hence, present research is carried out.
With the help of this study, effectiveness of leadership has been assessed and its impact
on organizational effectiveness is evaluated. It has been found that different leadership style has
different role in the organization such as autocratic style helps in maintaining discipline,
democratic aids in developing coordination, laissez faire assists in delegating roles and
participative helps in working with equal participation from different employees. Therefore,
main focus of this study is to assess the effect of different leadership practices on company’s
operations.
To conduct this study, Sainsbury has been taken into account which is a giant retail
company that employs personnel from different culture and region. By conducting this research,
ideas have attained with respect to effectual leadership style in different contexts that company
can employ for boosting the organisational effectiveness. Through this, better strategy can be
developed with respect to leadership.
1.2 Rationale of the Study
Leadership acts as a base for company which helps in attaining the goals in a manner in
which it is planned. However, due to dynamic business environment and diverse culture, leaders
face issue in managing the subordinates. Therefore, leaders need to incorporate different set of
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styles in order to manage the workforce in a desired manner. This present research has helped in
assessing whether applying different set of styles affects the business operation or not. Another
rationale of this study is to assess the link between leadership style and improving productivity
of the organization. In addition to it, present research supports in literature by defining the
unexplored part of leadership which can be used by other companies to boost its efficiency in the
marketplace.
1.3 Research Aim and Objectives
Main aim of this study is to evaluate the impact of leadership style on the organizational
effectiveness. In order to conduct this study, Sainsbury has been selected which is one of the
prominent names within the retail sector.
For attaining above stated aim, following are the objectives developed.
1. To understand the concept and meaning of organizational effectiveness.
2. To identify different types of leadership style used at Sainsbury.
3. To analyse the role of varied leadership style in attaining organizational effectiveness.
1.4 Research Questions
For this research, following questions have been taken into account:
What are the different types of leadership styles used by managers to attain organisational
growth and sustainability?
How leadership styles assist in improving productivity of the business?
What is the significance of appropriate leadership style for organisational effectiveness?
1.5 Framework and Analysis
In order to conduct this study, interpretivism philosophy has been applied as it requires
interpreting the responses that have attained through interview. In this, responses have been
interpreted on the basis of past literature so that actual reasons behind any statement can be
attained. Further, exploratory design is incorporated in this research in order to gain new set of
information with respect to leadership and organizational effectiveness (Bryman,
2015).Moreover, data is collected from primary as well as secondary sources. In this regard,
primary data has been collected from the top level managers of Sainsbury. They have been
targeted because they are the one that can brief about leadership and organizational effectiveness
2
in an appropriate manner. Interview will be based on semi structured approach so that required
information can be attained. On the other hand, secondary data will be collected from sources
like books, magazines, online articles, blogs, journals, newspaper and other related.
Sample size for this research is determined as four managers which is being selected with
the help of convenient sampling. In order to analyse the data, qualitative measures have been
applied. In this regard, thematic method is used in which themes are developed based on the
interview questions. From this, appropriate result is attained by evaluating responses of the
managers of Sainsbury (Zikmund and et.al., 2012).
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CHAPTER 2 LITERATURE REVIEW
2.1 Introduction
Literature review is one of the important section of the entire study which assist in
developing theoretical base for the researcher to make in-depth analysis on the chosen topic.
However, in this chapter varied sources are used to gather wide range of information on different
prospects of the study. Further, perception and thoughts of different authors and researchers are
taken into account which assist in developing suitable platform for the investigator to carry out
their entire course of study in effective and efficient manner. Herein, researcher focuses on
evaluating the organisational effectiveness on various leadership styles in retail sector.
Considering the nature of topic secondary research play a vital role in the analysis section
because it will help in justifying the responses of managers generated through different methods.
Further, to collect secondary data use of different secondary sources such as books, journals,
online articles, blogs etc. will be taken into consideration so that valuable and reliable
information can be generated for conducting the study on selected topic.
2.2 Leadership style and Performance
According to Adair, (2011) leadership refers to the ability of an individual to influence a
group towards the achievement of goals. In the study of Ehrich, and English, (2012), leadership
has been identified as the significant subject in the field of organizational performance. However,
according to the author, the ability of management of organizations to execute collaborated
efforts depends upon the leadership capabilities (Ehrich and English, 2012). Analoui, Doloriert,
Sambrook (2013) explained in their study that, excellent leader not only motivate or encourage
colleagues or subordinates to enhance the efficiency but also focuses on meeting their needs and
wants in the process of achieving organisational effectiveness. Bertocci, (2009) defining
leadership as the individual behaviour that guides group or a team to achieve desired common
target. Thus, managers in different organizations’ use varied types of leadership style to inspire
and enhance potential of employees regarding growth and development (Bertocci, 2009).
According to the Dugan, (2011), there are several reasons that clearly defines that there is a
correlation between leadership style and organisational performance. First of all, the current
intensive and dynamic markets features innovation based competition, price/performance rivalry,
decreasing returns, and destruction of existing competencies. In this context article of Ehrich and
English, (2012) states that, effective leadership approaches can assist the improvement of
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