Organizational Theory and Practice Module Title: Organizational Theory and Practice

Module Title: Organizational Theory and Practice
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Word Count: 3000

Contents
Introduction..............................................................................................................................................3
The management style and principle and functions of the management of Mothercare Plc...................4
The steps are taken with regard to organizational structure to achieve high performance and the
organization culture at Mothercare and its impact on the employees.....................................................4
The leadership style of the CEO of Mothercare to enhance the organizational effectiveness................5
The effects of power, influence and conflict at Mothercare....................................................................6
The various types of motivation used at Mothercare...............................................................................7
Corporate Examples and Literature.........................................................................................................8
Recommendations....................................................................................................................................9
References..............................................................................................................................................10
2

Introduction
Mothercare Plc is a British retail chain operating across the United Kingdom and 60 other countries. It
was founded in 1961 to sell products to the mothers, expectant mothers and children up to age eight. It
is a public limited company listed in the London Stock Exchange. The retail industry is one of the
fastest-growing industries around the world since its beginning. Without retailing business, it will be
difficult for us to collect the required products that are essential for our daily lives. The retail
operation makes it easier for ourselves to have all the requirements under one roof. Mothercare is one
of them which is specialized in a separate sector.
This report shows the analysis of the management of Mothercare and some recommendations are
given at the end of the report. A good number of theories is applied across the report to analyze the
organization effectively. A retail business organization must have an expert management team to run
smoothly. Mothercare’s director's board has made great changes in its organization structure like the
old CEO is replaced by the previous CFO. It has a strong workforce to serve their customers properly.
They are trained well and can give unbiased recommendations to the customers. Its management team
follows all the principles described by Henri Fayol. Effective leadership is the reason behind its
success story.
Mothercare maintains a management style where all the employees have a comfortable working
environment. They are appreciated and respected for the core service. The organizational restructure
puts a great impact on the employees and it has reduced its cost tremendously. Leaders of Mothercare
are experienced in this field and they try to be surrounded by talented subordinates and make a
harmony in their contribution. As the shape of this industry is changing, Mothercare should take
immediate steps to adapt to changing trends. It should focus on expanding its market around the world
through large retails store with huge product assortments. A job at Mothercare is like gold for the
candidate and it is one of the best employers across the UK.
3

The management style and principle and functions of the management
of Mothercare Plc
The board of directors has appointed the former CFO Glyn Hughes as interim CEO recently. The new
CEO is determined to achieve the goal of its further expansion in international markets through
franchise arrangements (Abdulla, 2020). There are two types of management styles according to the
theory of Douglas McGregor: Theory X and Theory Y. Theory X refers to the authoritarian style,
whereas Theory Y defines the participative style (Williams, 2013). The CEO practices both of the
styles in the daily activities of management. The board of Mothercare is well designed under the
Public Limited Company Law of the UK. The critical and major decisions are made through the
executive meeting by analyzing all the suggestions and other minors and immediate decisions are
made by managers in charge (Corporate governance, 2020). Employees are given chances to put their
thoughts during the decision making process.
There are 4 core principles in management according to the Scientific Management Theory of F.W.
Taylor (Dyck and Neubert, 2009). The CEO of Mothercare uses all the principles in managing the
workforce. Works are divided into almost all departments. The Human Resource department hires the
right employees and put them where they are skilled and feel comfortable to do their job. Managers
monitor the performance of employees and give them instructions (Corporate governance, 2020). The
CEO ensures the teamwork in each department with equal rights to do their job which results in
maximum efficiency.
Management is a set of principles that includes functions of planning, organizing, staffing, directing,
and controlling which is an integral part of a business to attain the desired objectives (Campling,
2008). Mothercare’s CEO Glyn incorporates all the functions that lie in the definition. The CEO has
the responsibility to design the planning on how they will accomplish their tasks. The entire plan to
obtain the ultimate goals is developed by the CEO by analyzing all the possible ways with top-level
managers (Functions of Management | Management Study HQ, 2020). Then middle and lower-level
managers apply all the plans and take necessary steps in emergency cases.
The CEO organizes all the resources and makes harmony among all departments to push the
organization towards efficient management (Final Results, 2020). The HR department under the direct
supervision of the CEO hires the required workforce and makes effective arrangements to pull out
their best efforts. The CEO directs all the heads of all departments and controls if there occurs any
discrepancy between the original and expected result (LEADERSHIP MANAGEMENT, 2017).
The steps are taken with regard to organizational structure to achieve
high performance and the organization culture at Mothercare and its
impact on the employees
Major restructure steps have been taken at Mothercare recently which lead to the effective and
efficient management of its business. A significant change has been made in its management like
decreasing employees, voluntary reduction in pension benefits by key executives etc (Folly, Folly and
profile, 2020). Moreover, key changes in its board to make it more appropriate according to its size
and thus it reduces board cost. Almost 79 retail stores across the UK have been closed and there was a
change in capital raise to refinance for the group (Final Results, 2020). An accelerated restructure of
the organization cuts its cost £25 million per year. Through the restructuring program, the Mothercare
board has created three divisions: Mothercare Global Brand, Mothercare UK
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