How Business Operates

This report examines the operations of Morrisons supermarket, a leading UK retailer. It analyzes key business functions, including accounting, human resource management, team development, and leadership styles. The report also analyzes the impact of customer service on business success and provides a detailed analysis of Morrisons' financial performance.

How Business
Operates

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Explain the importance of accounting for business success ............................................3
2.2 Describe the different functions of HR department in Morrison.....................................4
2.3 Key features of employment legislations ........................................................................5
TASK 3............................................................................................................................................6
Profit and Loss Account.........................................................................................................6
TASK 4............................................................................................................................................7
4.1: Stages of team development............................................................................................7
4.2: Team roles.......................................................................................................................9
4.3: Motivation theories........................................................................................................11
4.4: Different types of leadership styles...............................................................................14
TASK 5..........................................................................................................................................15
Covered in PPT.....................................................................................................................15
CONCLUSION..............................................................................................................................15

INTRODUCTION
Business can be defined as the functions or activities which is performed by a group of
individuals or persons in exchange of money or gainfulness. Main reason behind forming these
firms is to gain sustainability or growth in the marketplace. In addition to this, when an
individual incorporates a business they have to follow all legislations, business plans so that
manufactured products by them can be sold to the customers in easy manner. Whereas, Business
operations includes all the activities which are performed by the business for generating profits.
In order to operating the business functions in proper manner, business owners have to consider
all the factors that can be internal or external and can influence the brand image or profitability in
positive or negative manner. Chosen organisation for this assignment is Morrisons which is a
fourth largest chain of supermarket along with headquarters in Bradford, West Yorkshire,
England. The company was founded in 1899 by William Morrison and now company has 498
stores which all are situated in England, Wales and Scotland. Present report will discuss about
the types of organisation in public and private sector in UK along with organisational structure
and PESTLE analysis. Importance of accounting for business success, HR functions, features of
employment legislations, Team development stages along with roles of team members will also
covered in this report. In the end, assignment will discuss about the leadership styles,
motivational theories along with impact of customer service on business success.
TASK 1
Covered in PPT
TASK 2
2.1 Explain the importance of accounting for business success
Accounting is a process which includes recording, summarising analysing or
management of financial transactions of a firm so that economic condition would be known by
the owners or stakeholders. It is very important for the financial department to make proper
accounts so that short term or long term decisions can be taken by the management which would
be beneficial for the firm in gaining growth and sustainability in the marketplace. Three major
statements are formed under the accounting system such as income statement, balance sheet and
cash flow statements which helps the stakeholders of firm in knowing actual financial condition

so that further plans can be formed accordingly. Some importance of accounting for business
success are given as under:
Monitoring costs– Statements like income statement and cash flow provides better
supports to the owners and management as they can monitored the cost of product and take
relative actions for eliminating the cost. With the help of accounting system, they can easily
measure
Budgeting- Accounting process also provide supports the management in formulating
budget because with the help of statements like cash flow and income and expenditure
management of Morrisons can easily identify their actual conditions which will guide them in
formation of budget for a specific time period.
Business planning– It is very important for each organisation to form effective plans and
policies so that all functions will be performed by them as per the regulations of government. For
e.g. through making cash flow statements and Balance sheet managers of organisation can easily
managers of firm can easily decide their further investments. In case of planning for business
these accounting systems provides a huge support in the form of optimal utilisation of resources
so that any difficulty wouldn't be faced by them in future period.
From the above discussion, it can be said that accounting systems and financial
statements are very important and provides huge support to the business organisations in gaining
success and growth in the marketplace.
2.2 Describe the different functions of HR department in Morrison
HR department is accountable for controlling and managing the employees who are
working or providing their services in the organisation so that preset goals or objectives would be
achieved in pre-determined time period. Main function of this department is to recruit
knowledgeable and experienced employees so that their support can be gained in future and other
one is providing training and development to the new joiners so that their skills and efficiency
will be improved.
Functions of HR department
Recruitment and selection - Main function of HR managers in Morrison is to recruit or
select a suitable candidate from a large number of candidates who can fulfil the expectations of
firm and having specific skills and knowledge which can be profitable for future development of
the organisation. Main objective behind this function is to attract a large pool of applicants so

that vacant positions of organisation would be fulfilled as per the expectations. Before recruiting
or selecting a particular employee, HR manager should take all the necessary informations from
the department so that actual wants or needs of the department for the vacant position would be
known by them. They have also responsibility to make proper plans and policies for recruiting
the desired candidates so that efficient or knowledgeable employees will be hired at the
workplace.
Training and development - It is also a major function of HR manager in which they
have to conduct various training programmes in the workplace so that right skills would be
implemented in the workforce of organisation. Main objective behind conducting these training
and development programmes at the workplace is to improve the current performance of
employees so that future development of firm would be possible in easy manner. This is the main
function of HR department through which they improve the ability and efficiency of the
employees of organisation so that future profitability and productivity of organisation would be
enhanced in the marketplace. Before conducting training or development programmes at
workplace, it is a major responsibility of the HR manager to analyse and evaluate current
performance level of employees so that programmes should be conducted in future accordingly.
It can be said that from the above discussion that HR department of Morrison provides a
huge support to the management in hiring or training of employees through which they can build
strong position in the marketplace (Gibson, 2015).
2.3 Key features of employment legislations
Legislations are defined as the norms and legislations which are formed by governmental
authorities of UK for governing the employment within the organisations. Main objective behind
forming of these rules and legislations is to provide right or authority to the employees at
workplace and eliminating illegal and harmful practices from the firms. There are some effective
kinds of legislations which has implemented by the management of Morrisons in order to
protecting their employees. These acts are given as below:
Health and safety Act 1974 – In it, management of each firm have to implement
effective equipments like fire extinguisher, emergency exit, first aid boxes at the workplace so
that staff members can perform their duties without taking any stress about their health and
safety. Through implementing such act, motivation level of employees would be enhanced which
would be beneficial for the management in gaining better contribution from them. Key features

of this act is that it maintains high motivation of employees which is a positive sign for their
growth. Besides this, it enhances profitability of the company due to favourable environment at
the workplace. At last, it makes the environment free from any accidents.
National minimum wage act, 1998 – This act was passed for providing minimum wage
across the UK which was modified in April, 2018 such as £7.83 per hour for the workers who are
aged over 25, £7.38 per hour for those who are aged between 21-24 and £5.90 who are aged
between 18-20. Therefore, it is very essential for the management to pay attention towards this
act because when employees gets proper compensation of their work they would provide more
contribution towards growth and success of firm which would be beneficial for both employees
and organisation (Doppelt, 2017). Main feature of this act is to maintain the standard of living of
employees so that they can perform their activities accordingly. It would be mandatory for
companies to comply with the rules and if they did not then legal issues could be faced by them
in the future.
Equality and discrimination act, 2010 – As per this law, any employer of organisation
can't make partiality in the workplace whether it is based on gender, age or culture. They are
responsible for equally treating their employees. With the help of this act, employees will feel
more safe at workplace which is beneficial for the organisation in achieving their goals on time.
Main features of this act is to maintain the equality in the environment on the basis of caste,
religion, race etc so that conflict between the employees would be avoided. Thus getting higher
productivity in the future. .
TASK 3
Profit and Loss Account
Particulate Amount
Sales 70000
Less: - Cost of Goods Sold (COGS)
Opening Stock 10000
Purchase 30000
Closing Stock (6000) 34000
Gross Profit 36000

Less: - Expenses 22000 (B/f)
Net profit 14000
Gross profit ratio = Gross profit X 100 = 36000 X 100 = 51.43%
Sales Revenue 70000
Net profit ratio = Net profit X 100 = 14000 X 100 = 20%
Sales Revenue 70000
ROCE = Net profit X 100 = 14000 X 100 = 8.75%
Capital Employed 160000
Current ratio = Current assets X 100 = 12000 = 2.4
Current Liability 5000
Acid Test ratio = Quick Assets X 100 = 6000 = 1.2
Current Liability 5000
Debt collection period = Debtor X 365 Days = 8000 X 365 = 41.71 days
Revenue 70000
Creditor collection period = Creditor X 365 = 6000 X 365 = 32.21 days
Cost of sale 5000
Stock Turnover = Quick Assets X 100 = 6000 = 1.2
Current Liability 5000
From the above calculations, it is evident that Gross profit ratio of company is 51.43%,
Net profit ratio is 20%, Return on capital employed is 8.75%, Current ratio is 2.4, Acid Test ratio
is 1.2. These all ratios are useful for firms for determining the financial stability and position in
the market.
TASK 4
4.1: Stages of team development
The stage of team development can be understood by Tuckman team development model.
This model can be used by Morrison for developing effective teams which can bring favourable
results to organisation.

Illustration 1: TUCKMAN AND JENSEN MODEL
Source: TUCKMAN AND JENSEN MODEL, 2019
Forming: In this stage, member of a project team meets with each other for first time.
The first discussion is start among them with their background, interest and strategy which they
have made for upcoming project. Like in Morrisons, employee are from different background so
company can do a small orientation and then can use the forming so that the employees can
become familiar all other employees.
Storming: this stage begins when team start to work together with each other. It is the
duty of a team leader to manage the team effectively. In case of Morrisons, they give the duty to
their senior employees and team leader to solve the conflicts that are raising in teams.
Norming: in this stage teams start to work much more effectively for the completion of
project. team members leave their separate goals and create a new method to working together.
For example in Morrisons can tell their employees that they have to respect the opinion of all
teams members. As if they work together as a team.
Performing: in this stage teams start to perform their work at an advanced level. They
build the trust factor in each other and start to rely the work between team members. The major
focus of each team is to achieve the goal. In Morrisons, company can motivate their work force

so they can become more motivated towards the work because it is not necessary that every team
reach at the performing level in team development (De Jong, 2015).
Adjourning: last stage of team development is adjourning. In this the project is about to
end and team members start to move into different direction. So the Morrisons can organise a
small party for the success of their project by this a team member will say good bye and wish
good luck to company and other members of the team.
4.2: Team roles
Team roles refers to the assigning of roles and responsibilities to the employees by the
management in order to perform the organisational functions. The team roles are given by
Meredith Belbin in his theory Belbin team roles. Belbin has given 9 roles which are performed
by the individuals while performing in the teams. Morrisons are using these team roles for
assigning the responsibilities to various people in team. These roles are divided into 3 types
which are discussed below:
Action-oriented Role: These involves the action of the individuals when they are working
in the team.
 Shaper: This role is assigned to people who wants to accept challenges and are of
dynamic nature. These maintains positive attitude towards the challenges for facing them
in proper manner. These have good communication skills for influencing the workers to
perform hard (Day, 2017). Shaper provides the motivation to the team members for
carrying out their work effectively by overcoming the issues.
 Implementer: People having such roles get the things done while working in the team.
Such people are practical, efficient and well-organized. These converts the team ideas
into reality. These have conservative nature due to which they are slower in accepting the
change in a team.
 Completer/ Finisher: These determines the problems and errors after finishing the
assigned work of team. These are also called as perfectionists because they're very
experts in determining the errors for ensuring the quality work is done in the team.
People-oriented Role: People having these roles supports the team members in
performing their work.
 Coordinator: These are mature and confident by nature having good listening skill. These
provides the guidance to the team members for ensuring that the work will be executed at

the given time. These are good in assigning roles to team members but due to directive
nature, these can be manipulative.
 Team Worker: People having these roles ensures that the team stays active in their
working and work together. These generally resolves the conflicts and issues of team
members which can impact the team’s dynamics. These are very supportive for team
members.
 Resource Investigator: These people are inquisitive and enthusiastic by nature having
good negotiation skills. These are generally extroverts due to which other can relate to
them easily. These have their personal contacts for getting the required information from
other people. Role of the resource investigator is to gather the required resources which
are necessary for team members by using his/her personal contacts.
Thought-oriented Role: These people provides the ideas and suggestions to team
members for resolving their issues in working. Monitor-Evaluator: These are the critical thinkers in a team. These are serious minded
and cautious by nature due to which they didn't rush while making the judgements. These
analyse the decisions before implementing them. These lacks the energy for motivating
the team due to which their decisions take more time. Specialist: These are experts of their area who provides the contribution in team using
their experience and knowledge. These are present in team for maintaining their
professional standards. These shows little interest in other areas.
 Plants: These are innovative and problem solvers due to which they provide innovative
ideas to team members for resolving the issues and problems of team members for
overcoming challenges. These are introverts having poor communication skills due to
which they prefer to work alone (Bradford, 2015).
I was assigned with the role of Plant in the company for resolving the issues of team
members which are impacting the team performance and working. Through this role, I resolved
the issues by using my problem solving skills so that the workers can perform their work
accordingly. I need to report to the leader of team regarding the issues and provides them the
solution for resolving the issues.

Illustration 2: Organisational chart
Source: Organisational chart, 2018
4.3: Motivation theories
There are various motivational theories which can be used by the Morrisons for
motivating their team workers in order to support the future training events. These theories are
necessary for Morrisons to motivate their workers which are discussed below:
Maslow's Hierarchy of needs: This theory was given Abraham maslow which states that
there are several needs of employees which must be fulfilled by the organisation for motivating
them. It is suitable for the Morrisons for motivating their employees so that better results can be
obtained from them while performing the work. There are five types of needs which are
discussed below: Physiological needs: These are the basic needs of human which are required for the
survival such as food, drink, shelter, clothing, warmth and sleep. The Morrisons needs to
determine such needs of employees in order to fulfil them. Through this, management of
Morrisons can satisfy the needs of employees for enhancing their motivation. Safety needs: This needs includes law, security, protection from elements, stability etc.
Managers of the Morrisons needs to fulfil these needs for ensuring that the employee can
work hard with the motivation for achieving their goals.

 Love and belongingness needs: These includes intimacy, friendship, affection and love.
Management of Morrisons needs to provide family holidays, vacations etc. to employees
for motivating them. It will help employees in satisfying their love and friendship needs
as they are spending proper time with family and friends. Esteem needs: These involves dignity, achievement, independence and desire for respect
etc. The management of Morrisons should ensure that employees are getting the respect
from each other so that their motivation level keeps increasing for performing their work
effectively (London, 2017).
 Self actualization needs: These includes self fulfilment, realizing personal potential etc.
Management of Morrisons needs to ensure that these needs of employees are fulfilled so
that they can feel satisfied in their working. Through this the employees will stay
motivated due to their own interest in the work.
Illustration 3: Maslow hierarchy of needs
Source: Maslow hierarchy of needs, 2018
Advantages Disadvantages

This theory is simple to understand due to
which it can be easily applied by the
management of organisation.
The individuals have their own needs in each
level due to which management needs to
determine the level of needs accordingly.
This theory takes account of human nature due
to which this theory addresses the needs of
each level in proper manner.
It is difficult for management to determine the
satisfaction level of each employee in order to
fulfil their needs.
Theory X and Y Theory x: This theory states that several people in an organisation does not wants to
perform their work due to which their efficiency and performance gets depleted. The
manager of the Morrisons can provide the rewards and punishment to such employees so
that they will try to improve their performance for avoiding the punishment and for
getting the rewards. This theory is suitable for the firm in motivating the employees who
lacks interest in their work and does not wants to perform the work with required
efficiency. Theory y: This theory states that the few employees in an organisation wants to get
appreciation and are self motivated for performing their work effectively. Managers of
the Morrisons can provide rewards to such employees for further improving their
performance. Due to this, they will work more hard for executing their work before the
deadlines. This theory is also suitable for the Morrisons in providing promotion and
performance appraisals to such people so that they can develop their skills and suggest
improvements to management for further improving the operations and functions of the
organisation (Palattella, 2016).
Advantages Disadvantages
These both theory are useful in
motivating the employees.
These theories leads to punitive atmosphere with a
strong blame culture due to which company can
suffers from diseconomies of scale.
The efficiency and performance of the
employees can be improved by using
these both theories.
Mindset of the people differs from each other due to
which management needs to determine the needs
and requirements of each employees for motivating

them.
Vroom's expectancy theory: This theory states that the behaviour is the outcome of the
choices for enhancing the pleasure and satisfaction as well as to eliminate the pain. Victor Vroom
stated that the performance of employees depends upon several factors such as skills, knowledge,
experience etc. In this the contribution and motivation are interdependent of each other. The
Morrisons can use the variable such as expectancy, instrumentality and valence. By using this
theory, management of Morrisons needs to determine the goals and needs of their employees so
that these can be motivated for accomplishing the personal and organisational goals.
Advantages Disadvantages
This is based on self interest of people
who desires to achieve maximum
satisfaction
Accuracy of this theory is not high as effort,
performance and value of rewards are hard to
quantify.
It is focused on rewards and other forms
of getting recognition.
Rewards are not always related with performance.
4.4: Different types of leadership styles
There are various leadership styles which are used by the firms such as Morrisons. These
are necessary for leading the employees towards the organisational goals effectively. Different
leadership styles must be followed by the firms so that they can provide their guidance and
support to the employees as well as to take quick decisions in emergency situations. These
leadership style must be used according to the situation so that better outcomes can be generated
from the employees. Some of these are discussed below:
Autocratic: In this style, leaders and managers direct their employees to work according
to their given guidelines. The managers do not consider the idea of employees in any
organisational activities due to which the employees can feel dissatisfied in their working.
However, this style is suitable for the situations in which decisions must be taken quickly. This
style must be used by leaders in rare conditions as it can lead to dissatisfaction of employees in
performing their work.

Democratic: This leadership style states that the managers and leaders in an organisation
needs to include the employees while taking any decisions. Through this, the management can
considers their ideas for taking the decisions so that they did not get negatively impacted from
the taken decisions. This style is suitable for the Morrisons in taking quick decisions for the
employees so that they stay motivated in their working due to sense of belongingness in the
organisation (Zander, 2015).
Gratifier: This leadership style follows the old carrot-and-stick approach. In this style,
Leaders determine the goals in initial time and provides these to employees for achieving them.
Such leaders also provide rewards to employees based on their performance for motivating them.
Also punishment is given to employees having low performance. This style is suitable to choose
by the leaders of Morrisons for increasing the competition at workplace so that employees can
improve their performance. This style leads to motivation among the employees as rewards are
provided to them. This style is useful when employees are performing low and their performance
is not satisfactory.
These leadership and motivational style are useful for the firms such as Morrisons in
handling the various situations happens at work place. For example: when management needs to
take quick decisions for the company then autocratic can be used as it does not include idea from
employees which is a time consuming process. Whereas when management is facing problem of
employees turnover then democratic style is useful as through this style, employees feels
motivated due to including their ideas in decision-making process.
TASK 5
Covered in PPT.
CONCLUSION
It has been concluded from above report that the public and private organisation has their
own purpose and follows different organisational structure. Business accounting is very useful
for firm in getting the success. Also firms need to follow the legislation of government for
smoothly running the operations. Leadership styles and motivation theories are useful for firms
in motivating their workers. Firms needs to provide effective customer service to customers for
reducing the impact on staff and organisation. Also the profiling is useful for firms in targeting
the customers for providing services effectively.

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