Management and Leadership Theories: A Case Study of Sainsbury's

This report examines the differences between management and leadership theories, applying them to the case of Sainsbury's, a leading UK supermarket chain. It analyzes the company's management structure, explores key theories like Chaos Theory and Management by Objectives, and assesses their impact on Sainsbury's growth and sustainability. The report also delves into the key operational functions of Sainsbury's, the roles and responsibilities of managers, and the external business environment factors influencing decision-making. Finally, it provides recommendations for future development.

Management and operations
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Executive Summary
On the study of this report, one should have a clear distinction between the management theory
and the leadership theories. To which extent the two concepts differ should be explained in clear
terms. A UK based company needs to be chosen and then an examination of the different
theories on management and organizational structures would be done. This examination would
reveal the key elements of success to the company. The Chaos Theory and The Management By
Objectives Theory should be explained clearly and its application to the chosen company should
be done.
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Table of Contents
Part A...............................................................................................................................................4
Introduction......................................................................................................................................4
Finding and Analysis.......................................................................................................................5
Introduction to the organization and management structure...........................................................5
Defining leaders and managers along with their roles and differentiating the two concepts........6
Theories and concepts defining different roles of management and leadership in different
organizational structures..................................................................................................................6
Application of Chaos Theory and Management by Objectives Theory to the organization and
how it supported growth and sustainable performance...................................................................8
Recommendations for future development......................................................................................9
Conclusion.......................................................................................................................................9
Part B.............................................................................................................................................10
Key operation being introduced of the organization.....................................................................10
Roles and responsibilities of managers in the key operational functions of Sainsbury.................10
Key operational approaches towards operational management.....................................................11
External business environment factors affecting decision making of leaders and managers........11
Improvement of efficiencies to meet business objectives through appropriate management and
leadership approaches....................................................................................................................12
Conclusion and recommendations for future development...........................................................12
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Part A
Introduction
Under this report, the main objective of the report is to analyze the difference between the
management process and the leadership process. Relating it to a company of United Kingdom
would provide a much clear idea of the two concepts. Taking Sainsbury Company would bring
up the analysis more clearly because it is among one of t5he oldest companies in the UK and has
enjoyed a sustainable growth. Applying different theories would reveal the actual position of the
company and the consequences which the theory had on the company would be clearer. By the
end of the report, the effectiveness o0f the theories on the company's growth would be revealed.
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Finding and Analysis
Introduction to the organization and management structure
Sainsbury is considered to be second largest chain dealing in supermarkets specifically in the
United Kingdom. It holds around 16.9% shares of the supermarket sector. It was found in about
1869 by John James Sainsbury. It comes among the most elderly adopter of the self-service retail
in groceries. Tesco and Asda are the two most leading companies in the grocery industry which
have deteriorated Sainsbury to the third place, in 1995.
The management of Sainsbury has always been appreciated and this is among one of the reasons
for its sustainable growth. It follows a top-down approach to management. The chairperson,
along with the members of the board is the ones who set the long-term plans and strategies of the
company (About.sainsburys.co, 2018). The management structure of the Sainsbury looks like the
following structure:
Figure 1: Management Structure of Sainsbury
(Source: About.sainsburys.co, 2018)
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Defining leaders and managers along with their roles and differentiating the
two concepts
A leader can be defined as a person who leads a bunch of people to achieve some goal and
expects that whatever he demands his followers will provide him with the service for it. The
main role of a leader is to provide guidance, direction, instructions, set a crystal clear vision of
the goals to be achieved and provide the way through which the work has to be executed in order
to reach the target. On the other hand, a manager is someone who is responsible for managing a
group of people. The requirements of the group of people being managed are to look after by the
manager, understand his team member's strengths and weaknesses and allot work as per their
qualities. This is the key responsibility of a manager (Grant et al. 2017, p.40). Manager provides
a plan on which his members need to work and execute it well. Managers give instructions to
the people of his group and react to the changes brought by the member in his plan.
There exist a vast difference between the leader and a manager. A leader is the one who inspires
others while a manager is the one who provides a plan for his people on which they need to
work. A manager works for his company and creates a vision for his future company; he works
hard on his members in order to change that vision into reality. Where as a leader is the one who
has created a vision for himself and takes the help of his followers and inspires them to create the
same vision for themselves?
For every organization, there are a group of managers who manage the employees of the
company. Many a time these managers transform into a leader and this results in the fall of the
management returns (Trott et al. 2017, p.620). Considering the Sainsbury management, it has
been seen that management team of the company has worked out with their fellows in a
management way and had never tried to lead them. Leading would have shown a downfall of the
company.
Theories and concepts defining different roles of management and leadership
in different organizational structures
Considering, House Path Goal Theory for leadership under the top-down organizational
structure. The theory was developed by Robert House. The theory conveys that the employees
work and expect from his efforts and performances, depends largely on the leaders’ behaviour.
The leader is the one who clarifies the whole path of his follower and helps him to attain the
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goal. This is done by the leader through providing the needful information, support to the
follower, and other resources needed by his follower to achieve his target (Sullivan et al. 2016,
p.110).
Figure 2: Path-Goal Leadership Theory
(Source: Kew et al. 2017, p.5)
Now, taking up the management theory named as the Human Relations Theory. It has a simple
and straightforward logic; the theory conveys that the people should be allowed to work on the
basis of their strengths and weaknesses. This would help them to act autonomously and
creatively and this would further result in gearing up of the company's management (Christopher
et al. 2016, p.30). The potentiality of the employees will emerge up and this would accelerate the
growth of the company. This works well in the top-down organizational structure.
In case of the Sainsbury, it has been seen that the Human Relation Theory has been applied
throughout its lifespan and is still being followed. This gives a clear idea of the application of the
management theory, mentioned above and how effectively it has worked can be understood by
the success of the company. It has been seen that the theory of leadership leads to success, no
doubt, but it cannot sustain its success and gradually begins to fall. In order to have a sustainable
success, one should always opt for the managerial outlook.
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Application of Chaos Theory and Management by Objectives Theory to the
organization and how it supported growth and sustainable performance
The management by objectives theory is nothing but a personal management technique under
which the employees along with the managers work on the same line in order to set new goals
and plans for the future. Under this theory, the employees are trained in such a way that the
organizational goals and objectives transform into the employee's individual goal to be attained.
This gives the employee a great deal of zest and enthusiasm to work in order to achieve the setup
goal (Alexander et al. 2015, p.620). It works in six stages which are interlinked, as shown in the
figure below.
Figure 3: Stages of Management by Objectives Theory
(Source: Kew et al. 2017, p.3)
The Chaos Theory, on the other hand, conveys that in order to check the actual effectiveness of
the management, for a day or two, then management should be kept away from the employees
working under them. This check on the employees would actually give the result of how well the
manager has been able to make his fellow responsible and motivated towards his work.
Observing the employees from a distance would help in exploiting the chaotic character of the
organization.
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In Sainsbury, the application of both the theories has been seen and it is one of the main reasons
for its sustainable success to date. Making the employees responsible and teaching every single
detail of the work along with the supporting system, and then a setback suddenly on a day, would
not affect the employees much and as being a responsible employee, they would deliver a quality
work by the end of the day (Giannakis et al. 2016, p.450). This shows the chaotic nature of the
Sainsbury. The management has always worked with the employees in the same line, which
created a personal touch among the employees. This made them believe that they are working for
their own company and planning was even executed together by the management and the
employees, this was the key to success.
Recommendations for future development
Sainsbury has no doubt achieved all its goals and has a sustainable success but due to the
increase in the competitiveness of the market, it has set back a bit. The new companies have
used new theories and ideas along with other developing technologies; this has been the main
reason for Sainsbury to fall down. Few recommendations could be made for the growth of
Sainsbury:
1) Should change its management theories with the changing time and use of new
technologies should be made. The changing generation demands change in the structure
of the company.
2) Application of Chaos theory is good but on applying it, an eye should be kept whether the
work is being done or not.
Conclusion
Ongoing through the Sainsbury Company's management and organizational structure, it can be
concluded that choosing these two structures on starting up of a company, can act as a key to
success. There is no second thought that the level Sainsbury has reached is a consequence of its
effective management system which avoids the leadership traits. The applications of the two
theories, namely, The Chaos Theory and the Management by Objectives Theory, were helpful in
determining the management process of the concerned company.
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Part B
Key operation being introduced of the organization
Knowing the customer need: The Company needs to understand properly the needs of the
customers for success in business. This strategies help to get the information about the selling the
products and how the customer needs are changing.
Good product and services: the main purpose of the company is to provide the good quality
food at fare rates. They mainly focus on the quality and sustainability of the products at lower
price in which the customer feel comfortable.
Availability: according to customer wherever and whenever they want the company serve the
products quickly and conveniently through expanding their network and online.
The values in market: The value of the company is the reason to stand in market. The value
increases the power of relationship with customers, suppliers and colleague to make a
commercial sense.
Responsibility of colleagues: the company always seeks such an employee who will be loyal
for the company and work in happily (Ramanathan et al. 2015, p. 41). The colleagues help to
build the customers and can make strong the communication.
Roles and responsibilities of managers in the key operational functions of
Sainsbury
Responsibility to customers: The Company needs to understand properly the needs of the
customers for success in business. Therefore the managers of the company have to focus on the
quality and the services of the products at a fare price. Thus, for taking this responsibility the
managers including all the employees have to be well trained to fulfill the customer satisfaction.
Responsibility to employees: Operations managers need to have a good communication skill
with the employees to support the staff in working together (Giannakis and Papadopoulos, 2017,
p.455). The managers in Sainsbury Company have to create a positive atmosphere where the
employees can work comfortably.
Responsibility to society: For sustaining in the market the company should concern the sense of
responsibility towards society. The society has affected in the economical state and it need be
fulfilled for running the business well.
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Key operational approaches towards operational management
Good skill in communication: Operations managers need to have a good communication skill
with the employees to support the staff in working together. The managers in Sainsbury
Company have to create a positive atmosphere where the employees can work comfortably.
Effective raw material management: The operation managers in the company have to play an
important role for leading to manage both raw materials and personnel for good products as well
as services (Lloyd and Payne, 2014, p.465). Purchasing and supplying the products as well as
invention of new products is the main task which have to be covered by the managers.
Product designing qualities: In the case of selling the product, it is essential to design the
product on the basis of recent market trends for the customer satisfaction. In recent day
customers mainly focus on the quality and quantity of the products so the company have to focus
on the production of product according to customers’ needs.
External business environment factors affecting decision making of leaders
and managers
Political factors: the political environment has affected the business policy. The stability of
political factor in UK shows positive sign to develop the market policies.
Economic factors: this factor affects on the financial statement of the market including interest
rates, fluctuation in rates and government expenditure (Ramanathan et al. 2015, p. 41). In UK the
various economical conditions help the Sainsbury in business development.
Social and cultural factors: in order to develop the business growth the social and cultural
aspects has an impact on this. The social and cultural trends help the company to follow the
recent trend and make differences in the company. The cultural factors effect on the financial
statement of the Sainsbury.
Technological factors: the changes in the technology influence the operation in the
organization. The company should update about the new technologies in the market for using in
the company.
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Improvement of efficiencies to meet business objectives through appropriate
management and leadership approaches
Financial management: Finance has a important role in operation management. It is vital for
the company that the proper utilization of the capital to carry forward the management operation.
In the case of financial management the managers have to maintain the budget and perceived
value of the products (Giannakis and Papadopoulos, 2017, p.455). The supply chain
configuration and other resources help to optimize the cost of the production. The managers
should concern the business forecast, economical statement and sales report of the company to
find the ways of development. The financial management also covers the sustainability in
financial statement.
Resource management and operation: this function in management is categorized with
planning, directing and controlling the operation in company. Moreover, in this function the all
activities of converting the raw materials into effective valuable products are concerned with the
customer’s satisfaction (Lloyd and Payne, 2014, p.465).
Strategy: The strategy in operation management helps to optimize the finance or resources for
competition in highly competitive market. Operations managers as well as leaders through
application of effective strategy can set goals as well as objectives in business. The strategies
like sales forecasting and planning of sales promotions of the products are being applied by the
managers on the procedures. Through this, it becomes effective to develop the company with the
help of other department’s managers.
Conclusion and recommendations for future development
From the above conclusion, it can be stated that managers as well as about the key operation in
organizational management of Sainsbury Company. The operational managers play a crucial role
in any organization and take the whole responsibilities of the company’s all activities. There is
some main responsibilities which have to be followed by the managers in Sainsbury Company in
UK. There are several responsibilities of the managers in the Sainsbury Company to set the
objective to achieve. The various role and responsibilities of the managers have been effectively
highlighted in this study.
For future development of the company, they have to follow some approaches to grow the
business. They have to maintain proper financial management to control the budget and
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perceived value of the products, sales forecasting and planning of sales promotions and good
communication skill with the employees to support the staff in working together. These
strategies will help the company for their development.
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