Organizational Theory and Practice: Management and Leadership Styles of Marks and Spencer

This report analyzes the management and leadership styles of Marks and Spencer, including the steps taken by the CEO to bring change in organizational structure, motivational strategies used by the business, and the impact of power, influence, and conflicts.

ORGANIZATIONAL
THEORY AND
PRACTICE

Table of Contents
INTRODUCTION.........................................................................................................................3
TASK..............................................................................................................................................3
Managerial style of CEO of Marks and Spencer.........................................................................3
Steps taken by CEO to bring change in organizational structure to achieve for achieving high
performance and analysis of organizational culture brought by CEO.........................................5
Leadership style of CEO of Marks and Spencer.........................................................................7
Define effects of power, influence and conflicts at business.......................................................8
Motivation strategies used by business........................................................................................9
Corporate examples...................................................................................................................10
Recommendations to increase organizational performance......................................................10
CONCLUSION............................................................................................................................11
REFERENCES............................................................................................................................13

INTRODUCTION
Management styles are the principles which underlines the methods, abilities and
approaches which are used by managers to handle and control situation and use their leadership
skills within the organization. Management style is the manner in which an organization
manages its employees and their work activities. A successful management style should
effectively build teams and must be able to motivate employees (Management Styles, 2021).
Marks and Spencer is a British international retail company founded in 1884 by Michael Marks
and Thomas Spencer in London, United Kingdom. The company specializes in providing a wide
range of things under their label, including clothes, household goods, and food. The brand not
only provides offline services, but also provides online services in order to reach clients across a
wider geographic area and establish a strong brand image in the market (Marks and Spencer,
2021). This study is based on the identification of numerous elements using theories and models
in order to preserve an organization's competitive position within the industry. This report will
analyze the management styles which has been followed by the organization. The project will
also examine M&S's leadership style, motivational theories, and tactics for maintaining an
effective organizational culture and high-performing workers for company. The study will also
discuss the impact of power, influence, and disputes, as well as provide some business examples
to back up the information presented in this paper. Finally, some recommendations will be given
that the company should implement in order to improve their performance.
TASK
Managerial style of CEO of Marks and Spencer
The managerial style followed by the CEO of Marks and Spencer has been analyzed with
the hep of Managerial Grid Approach. The managerial grid approach in relation to M&S has
been discussed underneath:
Managerial Grid Model
The managerial grid model is a framework which was proposed by Robert R. Blake and
Jane Mouton. This framework outlines the methods which helps in understanding different
leadership styles and how these leadership styles are functioned (Managerial Grid Model, 2021).
This framework is useful to understand the concern of business leaders for their people and for

results which needs to be accomplished. The framework quotes that there are five types of
leadership style, these styles involve- country club management, team management, task
management and impoverished management. It is also known as leadership model or to
dimensional leadership which is based on the concern for people and for production (Blake
Mouton Managerial Grid, 2016). The two dimensions which are focused by the managerial grid
model are discussed below:
 Concern for people- It defines the degree at which leaders understand the need of their
team members, their interest and the area for personal development in order to
accomplish objectives.
 Concern for production- This degree defines the focus of leaders on organizational
efficiency, higher productivity and objectives which needs to be achieved by the
company.
Country Club Management
(High People/Low Tax)
Team Management
(High People/High Task)
Impoverished Management
(Low People/Low Task)
Authority Management
(Low People/High Task)
Source: Created by Self
In case of Marks and Spencer, the business leaders and CEO of the company follows
Managerial Grid Model which helps them in determining their leadership style (By, 2020). This
model helps business leader in understanding different combinations of leadership style which is
helpful in improving the productivity of business and ensuring higher customer satisfaction. This
Middle Of the
Road
Concern for results
Concern for people

framework supports CEO of Marks and Spencer to effectively reduce employee turnover and
absenteeism. Therefore, by incorporating the Managerial Grid Model, the CEO of Marks and
Spencer can understand their strength and weakness and form innovative strategies for driving
required change which will support in improving business performance. The framework also
support leaders in evaluating the loopholes and form innovative strategies to enhance
organizational efficiency and turn weakness into strengths of the business (Howley and Sturges,
2018). The Managerial Grid Model supports CEO of Marks and Spencer in understanding their
leadership and management style which supports them in enhancing their skills and building
excellence.
Steps taken by CEO to bring change in organizational structure to achieve for achieving high
performance and analysis of organizational culture brought by CEO
Kotter’s Model of Change
John Kotter developed the model of change which is known as Kotter’s change model.
This model defines the organizational change management process which is followed by
business by following different steps and stages (Kotter’s 8 Step Model, 2020). The change
management model has been in relation to the organization has been explained below:
Step 1: Need for urgency- In relation to Marks & Spencer, the company evaluated their
rivals in order to identify the requirements for rapid change in order to confront competition and
preserve their competitive position within the sector.
Step 2: Strong coalition- In the case of Marks & Spencer, the company listens to
employee feedback on leadership development and hires strong and powerful leaders who can
quickly effect change in the organisation.
Step 3: Change in objectives- In terms of Marks and Spencer, the brand must describe
their changes in aims to their consumers so that they may lead the way toward achieving
organizational transformation objectives.
Step 4: Communicate vison and mission- In the case of Marks & Spencer, the firm
must convey its goal and vision, which will aid employees in gaining clarity and improving
organizational performance.

Step 5: Minimize obstacles- In the situation of Marks & Spencer, the brand must
concentrate on the whole business process in order to eliminate any obstacles that may obstruct
company operations.
Step 6: Short term wins- In the case of M&S, the firm must evaluate all workers'
performance and efforts, which will aid in maintaining employee motivation and allowing them
to engage effectively and innovatively in all management operations.
Step 7: Bring change continuously- This stage will explain the organizational
requirement for increased productivity in the context of M&S (Polyanskaya, 2018). The brand
must be constantly adapting to change and improving in order to keep its competitive position in
the contemporary cultural and competitive business environment/industry.
Step 8: Relation with organizational culture- When it comes to M&S, the firm must
constantly align its change ideas and strategies with the organizational environment and
corporate culture in order to achieve greatness.
Analysis of organizational culture which creates an impact on employees
In context of Marks and Spencer, the organizational culture which is responsible for
creating impact on employees are listed below:
 Business values- Business values play a crucial role in organizational culture as this can
create an impact on employee interest and their performance. In relation to Marks and
Spencer, the business values of the brand focus on innovation, stability and people which
is helpful for them to safeguard their position in the industry and to earn higher revenues
for the business.
 Compensation and benefits- Compensation and other benefits are also responsible for
creating an impact on employee performance and productivity in the organisation as if
the company offers attractive compensation and benefits to the employees, this will lead
to highly engaged, self-motivated, high performing and knowledgeable staff (Ruben and
Gigliotti, 2017). In context of Marks and Spencer, the company focuses on offering
attractive appraisal policies, health and medical benefits and other plans and policies
which are employee centric. Such plans and programs support the organisation in
increasing employee engagement and ensuring highly motivated staff in the business.

Leadership style of CEO of Marks and Spencer
The term leadership style defines the characteristic and behaviours of leaders which can
be seen in their directing, motivation, guiding and managing style (Leadership Style, 2021). The
leadership style followed by business leaders can motivate political movements and bring social
changes by which they can encourage other people to perform create and innovate.
 Laissez-faire leadership style- Laissez faire leadership or delegative leadership style is
the approach where leaders allow group members to form a decision which for the leads
to many opportunities and risk which can be faced by the business (What Is Laissez Faire
Leadership, 2021). This form of leadership is based on trust, knowledge and encourages
personal growth and innovation. In context of Marks and Spencer, the business leaders of
the brand also follow delegative leadership style where they allow their team to find the
best possible solution for achieving the organizational objectives with the help of using
creative and innovative ideas to perform the assigned job roles and responsibilities.
 Democratic leadership style- Democratic or participating leadership style is the form of
leadership ware all team members are engaged in the decision-making process of the
company (Democratic Leadership Style, 2020). This leadership style offers opportunities
to participate, share ideas freely and open discussion is highly promoted through such
leadership style. In the instance of Marks & Spencer, the democratic leadership style
helps business leaders and management to recognizes the significance of human capital
and human asset, and encourages workers to participate in managerial tasks. This
leadership style offers guidance, collaborates on new tactics, and aids in the creation of a
more cooperative working environment and corporate culture. This leadership style offers
guidance, collaboratively plans new tactics, and aids in the creation of a more cooperative
working environment and corporate cultural synergy.
 Consultative leadership style- Consultative leadership style is the leadership style which
aims in forming team and using the skills of others to create plans, form decisions
(Consultative Leadership, 2021). The consultative leadership involves people in order to
find solution for decision making. In the case of Marks and Spencer, the company's
business leaders and CEO use a consultative leadership style in which they consult with
their colleagues and subordinates and seek additional about their opinions and ideas in
order to gain a better understanding of the situation and make effective decisions that

include the input of all team members by sharing their innovative ideas. The brand's CEO
promotes and guarantees that staff share their opinion, which aids the business in
generating innovative ideas.
Define effects of power, influence and conflicts at business
Impact of power on business
Power or authority is an element which is responsible for creating lasting impact on the
performance and interest of employees. Power is the ability to get things done with knowledge,
influence or authority. There are five sources of power which involves- expert, positional,
referent, coercive and reward power (Wirtz and Zimbres, 2018). Power is responsible for
creating positive as well as negative impact on the performance of employees. If power is used in
the right manner, then this can be helpful for driving positive change in the performance and
productivity of overall organization. Moreover, power can also create negative impact on the
business efficiency and can lead to many consequences such as employee absenteeism and
turnover and low performance standards.
Impact of influence on business
Influence or manipulation is the act which can bring change in organizational culture and
performance. Such factor can bring advantages and disadvantages to business. Influence of
business leaders can bring innovation and creativity to business as my employees can follow the
path of business leaders and use new innovative strategies. Such influence can be helpful for
creating positive impact on the business performance and this will also help in maximizing the
profitability of business.
Impact of conflicts on business
Conflicts are the outcomes of clash of interest which is unavoidable. Due to diverse
objectives and interest, this can lead to gap and increase conflicts in the business. Sometimes
conflicts can create positive impact and such scenarios can be helpful to bring out intrinsic and
authentic ideas and approaches which can support in driving change in the business (Grant and
Wolfram Cox, 2017). Some of the positive impacts of conflict within a business can be observed
through improved communication, effective decision-making, social change and enhanced
creativity within business. Therefore, conflicts are also responsible for creating negative impact

on business which can make business face huge loss and affect their performance. Some other
factors are responsible for creating negative impact, this can be observed in decline in
performance of overall business, incline in employee absenteeism or turnover, low mental health
of employees and increased psychological problems which defines some of the negative impact
of conflicts within the business.
Motivation strategies used by business
Many organisations use motivational theories to better understand and inspire their staff.
This helps the firm improve its overall performance and productivity. Some of the motivation
theories used by Marks and Spencer are addressed further below:
 McClelland theory of needs- According to McClelland's human motivation theory, there
are three incentive factors that inspire people to improve their abilities, solve issues, and
achieve all of their goals. Desire for affiliation, need for power, and need for
accomplishment are the three motivators. Achievement needs are the needs which reflect
people's abilities and encourage them to perform effectively in the business and are one
of the three drivers of this theory (Motivation Theories, 2021). Another need is affiliation,
in which an employee seeks a sense of belonging, affection, and social acceptability
through which an organisation may increase motivation and confidence, resulting in
business innovation. The need for power also serves as a motivator, which may be
satisfied through status and authority, allowing for influence on employees and, as a
result, successful job performance. In the case of Marks & Spencer, management uses
McClelland's theory of motivation to guarantee that all workers' needs or motivators urge
them to successfully perform and engage in the company, allowing them to maintain a
high-performing work culture and optimize business success.
 Maslow’s motivational theory- Abraham Maslow created this theory of motivation,
which states that attaining one degree of motivation motivates employees to perform well
in order to reach the next level. Maslow's hierarchy of needs is a five-tiered model of
human wants that was developed as a motivational philosophy (Maslow’s Need
Hierarchy Theory, 2020). The physiological level, safety needs, love and belongingness
requirements, self-esteem needs, and self-actualization needs are the five tiers that are
based on human needs that are studied using this motivation theory. These human needs

may be divided into three categories: fundamental, psychological, and self-fulfillment.
Marks and Spencer focus on satisfying all levels of human wants, from the most
fundamental to self-fulfillment, by evaluating their performance, rewarding them for their
important contribution, and developing them in ways that will assist them meet all levels
of needs. Such employee appraisals and methods will aid in meeting all human needs,
allowing workers to engage in the company with a high level of self-motivation and
willingness.
Corporate examples
On the basis of theories, approaches, models and styles two corporate examples are listed
below in order to justify the data quoted in the research.
For example, Tesco is a leading example of a retail business that employs the Maslow
hierarchy of needs theory. Within this, the company used to apply this idea to encourage its
employees by meeting their fundamental requirements for safety and security, as well as their
social needs (Bakytgul, Ahmed and Kim, 2019). This company pays a suitable income, provides
work stability, and assists in the organisation of formal and informal gatherings to satisfy all of a
person's basic needs. This organisation also provides possibilities for promotion and assessment,
which aid in meeting the demands for self-esteem. Furthermore, the organisation aims to meet
self-actualization requirements by assisting individuals in reaching their goals and objectives.
In comparison with Marks and Spencer, the brand applies McClelland's theory of needs
to give suitable incentive. The manager at Marks and Spencer utilized to evaluate employee
needs and make suitable judgments by evaluating the theory and applying all phases of the
theory and appropriateness with resource behaviours.
Marks & Spencer's management also implements democratic, laissez faire and
consultative leadership, which are effective techniques for inspiring people and must be used
appropriately to attain market dominance (Garst and et.al, 2019). Along with this, the author said
that the Maslow hierarchy of needs theory and the McClelland theory of need are the two main
proportions for future success and function as a path to organizational success.

Recommendations to increase organizational performance
Organizational performance is critical in organisations since it helps to have a good
influence on employees and bring innovation to the firm. Some ideas for Marks and Spencer that
will assist improve organizational performance are mentioned below:
 Effective use of human capital- Human capital and human resource plays a crucial role
in organizational effectiveness which can create an impact on the overall performance
and productivity of business. In context of Marks and Spencer, the brand must focus on
selecting the most desirable candidate who can bring value to the business and can be a
meaningful asset for the company (Strategies to Improve Organizational Effectiveness,
2016). The management or business leaders of the brand must identify the right
profession for new position within the company that must be fulfilled with the most
suitable candidate who can enhance organizational productivity and efficiency with their
constructive and innovative ideas.
 Focus on quality goods and services- Marks and Spencer much focus on the quality of
goods and services offered by the company by using quality assurance approaches and
techniques. Such strategies will be helpful in enhancing the overall performance and
profitability of the business.
 Business process improvements- Marks and Spencer must use effective business
process by redesigning, reallocating resources and other processes (Guide to Improving
Organizational Performance, 2020). This will support the brand in enhancing the
credibility of their business operations which will be helpful in contributing to improve
organizational performance and efficiency.
CONCLUSION
According to the report, management style is a manager's approach to managing all
company activities with the goal of accomplishing organizational goals and ensuring economic
growth. It has been discovered that effective management performance may be developed and
maintained through a variety of functions, including effective leadership styles, motivating
techniques, and other ways that assist management in maintaining a positive corporate culture.
There are numerous leadership styles used by organizational leaders that differ from other

business leaders, and this assists management in developing a unique and competitive position
within the market and capturing the attention of a larger number of individuals.
It can be stated that motivational theories play an important part in sustaining a positive
organizational culture by encouraging employees to work together and proactively in order to
maintain a positive organizational culture and accomplish all objectives within the time frame
specified. As a result, organisations must use various tactics and focus on maintaining good open
two-way communication in order to share expertise and all relevant information and accomplish
the intended objectives and outcomes on time. As a result, it has been shown that many models
and theories are used by organisations to ensure continuous operations and seamless functioning,
allowing them to confront competition and preserve their competitive position in the business.

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