Impact of Leadership Style on Employee Productivity

The assignment provides a detailed analysis of how different leadership styles can influence employee productivity, engagement, and performance in an organization. It examines the roles of transactional, transformational, and participative leadership in enhancing employee motivation, job satisfaction, and organizational commitment. The study also considers the impact of management practices, strategies, and employee engagement activities on building relationships between employees and improving company growth opportunities.

CONTEXT OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Summary of business ..................................................................................................................1
Vision statement of company, leadership styles, management practices and different strategies
......................................................................................................................................................2
Leadership style, management practices and various strategies implemented by the Marks &
Spencer.........................................................................................................................................4
Recommendations........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business is one of the activity or work that gain profit and generate revenue by selling or
purchasing goods or services in marketplace. Organization run their business by applying many
strategies and adopting some leadership styles that can be beneficial for all of them (Breevaart
and et.al., 2014). The present report is based on Marks and Spencer company, that work in retail
sector. It explains organization vision, management practices and leadership style and various
strategies making use of different theories. Furthermore, it justifies how company can achieved
their goals and implement strategies and also explains recommendation as improvement to
organization.
TASK
Summary of business
Marks and Spencer is well known British international retailer in UK, they are recognized
as higher market share in London. Company is specialists in selling home products, clothing,
luxury food product etc, it builds their positive image in marketplace as compare to others. They
are listed on London Stock Exchange and essential of FTSE 100 Index. Michael Marks and
Thomas Spencer is the founder of M&S and founded in 1884. Organization sells healthy and
branded food products such as Kellogg's Corn Flakes etc. because people needs to eat healthy
things and also need to stay fit in their lives, company give their contribution in it and
manufacture goods according to customers needs and requirement. They operate 979 stores
across UK including 615 stores that only sells food products. Firm become the first British
retailer in 1998 by making pre- tax profit over than £1 billion, although later they went into all of
sudden slump which took firm and their stakeholders by surprise. Organization was founded by
partnership between Polish Jew and Michael Marks and Thomas Spencer. They staring their first
Asian store in Afghanistan and Kabul. M&S expand their business into Canada where they garb
the attention of people and increase profit more than the others, in expansion process firm
opened its 47 stores across Canada as compare when they are starting their business.
In Canada company shops size were too small than British outlets, but still they are
serving good products. Company further efforts made them to modernize and also help to expand
their customer base more than now. They also opened their shops in Paris which is one their best
expansion process into France. Paris shops make M&S more popular than its competitors and
increase their profitability. Firm restructure their food stores and avail all the necessary things or
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products in it which helps people when they are purchasing goods. Organization sold huge range
of charitable women clothes for Breakthrough Breast cancer disease. Their biggest shop is
established in London which has spread around 16,000 square meters of shop floor. After closing
some stores in Paris and Canada, firm again reopened their store in Paris, following launch of
new french internet site. In 2007, they announced that company were introducing new home
furnishings shops which is dedicated to home products. They open first store in Twickenham
where stores are selling the best food and also carry small choice of general merchandise. SSP
group, BP and Moto is the M&S stores that run under franchise contract. Company needs to
retain their customers with them for longer term so for that they provide their products through
using online sources which is beneficial and profitable for their business as success or growth.
Vision statement of company, leadership styles, management practices and different strategies
M&S vision- Company brand is build on single values of value, quality, innovation,
service and trust. Overall, M&S vision is to provide better services and products to customers
which helps to satisfy them and retain with firm for longer. They need to offer range of their
goods to consumer that grab the attention of others which increase its profitability and
productivity.
Transformational and participative leadership style- Transformational leadership
styles is one of the best leaderships style adopted by leaders of company. Within having this
style leader will motivate and inspire their workers to create and innovate somethings in
workplace that helps to maximize profit margin and also enhance market share (McCleskey,
2014). Creation and innovation change the whole company performance and build high position
in marketplace rather than the others. By adopting participative leadership styles company lead
as most popular retailer in industry. Participative leadership style is one of another better
managerial style that invites input from workers on all firm decisions.
Management practices as encourage innovation- encourage innovation is known as the
best management practices in which manager play their important role and provide employees
benefits, equal wages that enhance their perceptions and motivate them to do some innovation in
workplace that is developed their career as well as beneficial for company growth and success.
Workers is the main part of any successful firm in which they play vital role in business growth
and development. Manager work as encouraging staff for innovation by paying equal
development opportunities, give rewards based on their performance and work interest. With the
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help of transformational and participative leadership style company gain better outcomes.
Manager pay incentives to their workers which helps to enhance their working styles more than
now. Empower staff to make good decisions and take better action towards success is one of the
best or effective management practices conducted by managers of organization.
Employee engagement strategy- M&S engage their employees and retain with them for
longer by using participative leadership theory which is one of the best way for engaging staff.
Leaders or managers work as motivator in workplace where they try to enhance or inspire
workers to take part in decision making process (Miao, Newman and Huang, 2014). For
example, leader conduct meeting to get the better outcomes or taking new ideas which they can
use during competitive business environment. Leader motivate employee to take part in this
procedure and give some new ideas or share their thoughts with them which is very beneficial for
company as well as whole staff.
Leadership style, management practices and various strategies implemented by the Marks &
Spencer
Marks and Spencer uses the participative leadership style also referred as the democratic
style of leadership. This leadership style involves the decision making process in which
employees are also taking part so that they don't feel lonely in the business. As participation is
more the employees are more engaged in the work. This style of leadership helps in achieving
the goals of the Marks and Spencer. As the employee of Marks & Spencer participates in the
decision making process of the company. As if employees are more involved in the company it
will lead to growth in the company. After implementing this style of leadership the employees
become more participative in the company. Participate leadership style enhances the growth of
the company. Before implementation of this style in the business the employees are not
cooperative and don't take initiative in doing work in the company. If they are not involved in the
business activities they feel lonely in the business. After implementing this style employees take
initiative in the company to do work effectively and efficiently. This style helps in growth of the
Marks & Spencer. If employees are taking part in the business can achieve its objectives easily.
As if the employees are involved in the decision making different ideas come from the different
minds that helps in achieving that business(Lumbasi, K’Aol and Ouma, 2016). Another style
followed by the company is transformational style in this leaders work with the team to identify
the changes in the company. This style helps in motivating the employees of the company and
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their morale is also increasing through this style. Before implementation of this style the
company is not able to accept the changes that will be carried out in the course of action in the
business. Changes are necessary in the business for the purpose of growth in the market. After
implementing this style of leadership changes are occurred in the business. It serves the
motivation among the employees of the Marks & Spencer. Company is using the performance
management practice of the company. As company is adopting the employee engagement
activity in the company that helps in building the relationship between the employees. Employee
engagement enhances the building the good relations in the company among the employees. As
employee engagement enhances the interaction between the people of the company (Iqbal, ,
Anwarand Haider, 2015).Through employee engagement strengths and weaknesses are also
found of the employees. This will lead to the growth in the business. As transformational leader
are able to inspire the leader that helps in achieving the goals of the business. As this helps in
achieving the success of the company. After implementation of the leadership style and
management practices in the company the chances of growth in the company increases as they
are beneficial for the company's future. Company can use the 360 degree feedback to measure
the performance of the company (Mulki, Caemmerer and Heggde, 2015).
Recommendations
Marks and Spencer should follow the autocratic leadership style as in this the
subordinates and leaders are play different role in the company. As presently the company is
following the participative leadership style I recommended that it also enhances the productivity
of the company. Company can follow other leadership style for growth in the business. Company
should change the leadership style from time to time that can enhance the growth of the business.
Changes helps in the improvement of the business operations as well as efficiency also increases.
It enhances the growth of the company by applying the different management practices in the
company. As applying the performance management practice company can evaluate the
performance of the employees. Evaluating the performance of the employees enhances the
working of the employees and they work effectively and efficiently (Vance, 2016).
As leadership styles different strategies should also be applied in the company that will
enhance the growth. As growth are more there are more opportunities for the company. It should
also use the marketing strategy to promote its product in the market. As different styles of
leadership enhances the growth that can be adaptable by the business. As company is using
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different styles for adopting in the company. Marks & Spencer should uses the different
strategies to benefit the company. Company have to change its policies and procedures from time
to time so that it can help in achieving the business goals and objectives. Changes are resist in
the business as changes leads to the opportunity for the business. Company should also use the
different principles in the company so that it enhances the growth and opportunity for the
business (Mesu, Sanders and Riemsdijk, 2015).
Leaders have to be strong to adapt the changes in the company so that employees also
have to bring the changes. Transformation in the business activities enhances the opportunity and
the company also improves its customers service. Through this styles the company can improve
the productivity and operations are also increasing that lead to change in the company. Practices
in the business also enhance the growth of the employees they are more involved with the
business operations. The company's leader also enhances the growth of the company. As in
adopting different leadership style the company can become more competitive in the market. The
brand image of the company is also increasing.
CONCLUSION
From the above study it can be concluded that by adopting different leadership style it
can achieve success in the company. Leadership style also helps in enhancing the productivity of
the company. Company have to adopt the different leadership style so that employees are able to
resist the changes in the company. Management practices also lead in improving the productivity
and performance of the employees. It can be observed from the above study that leadership style,
management practices, strategies plays a vital role in the company. Employee engagement
activity is important for the company to build the relationship between employees. Good
relations enhances the growth and more opportunities for the company.
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REFERENCES
Books and Journals
Breevaart, K. and et.al., 2014. Daily transactional and transformational leadership and daily
employee engagement. Journal of occupational and organizational psychology. 87(1). pp.138-
157.
Donate, M.J. and de Pablo, J.D.S., 2015. The role of knowledge-oriented leadership in
knowledge management practices and innovation. Journal of Business Research. 68(2).
pp.360-370.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review.5(5).pp.1-6.
Lumbasi, G.W., K’Aol, G.O. and Ouma, C.A., 2016. The effect of participative leadership style
on the performance of coya senior managers in kenya.
McCleskey, J.A., 2014. Situational, transformational, and transactional leadership and leadership
development. Journal of Business Studies Quarterly. 5(4). p.117.
Mesu, J., Sanders, K. and Riemsdijk, M.V., 2015. Transformational leadership and
organisational commitment in manufacturing and service small to medium-sized enterprises: The
moderating effects of directive and participative leadership. Personnel Review.44(6). pp.970-
990.
Miao, Q., Newman, A. and Huang, X., 2014. The impact of participative leadership on job
performance and organizational citizenship behavior: Distinguishing between the
mediating effects of affective and cognitive trust. The International Journal of Human
Resource Management. 25(20). pp.2796-2810.
Mulki, J.P., Caemmerer, B. and Heggde, G.S., 2015. Leadership style, salesperson's work effort
and job performance: the influence of power distance. Journal of Personal Selling &
Sales Management.35(1). pp.3-22.
Vance, D.L., 2016. The relationship between participative leadership style and employee
satisfaction with possible moderators of emotional stability (neuroticism) and years of
experience. Trevecca Nazarene University.
Online
7 common leadership styles.2018[Online].Available through<https://blog.proofhub.com/7-
common-leadership-styles-which-type-of-a-leader-are-you-ef23c93bc706>
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