Organizational Theory and Practice

Organizational Theory
and Practice

Contents
INTRODUCTION.....................................................................................................................................3
TASK A......................................................................................................................................................3
Management style, principle and functions used by the CEO of Mothercare..........................................3
TASK B......................................................................................................................................................5
Steps taken with regard to organization structure to achieve high performance and the organization
culture at Mothercare and its impact on the employees...........................................................................5
TASK C......................................................................................................................................................6
Leadership style of the CEO of Mothercare to enhance the organizational effectiveness........................6
TASK D......................................................................................................................................................7
Leadership style of the CEO of Mothercare to enhance the organizational effectiveness........................7
TASK E......................................................................................................................................................8
Various types of motivation used at Mothercare.....................................................................................8
Corporate examples and Literature.........................................................................................................9
Suggestions/Recommendations for the revival of Mothercare.............................................................10
REFERENCES........................................................................................................................................11

INTRODUCTION
Organizational theory can be defined as a set of concepts that are interrelated, different
definitions that explain the behaviors of employees as well as groups working in the company.
The individuals and groups interact with each other in order to perform tasks so as to achieve
organizational goals and objectives (Alexander, 2019). The theory basically studies the effect of
different social relationships among individuals as well as their actions in the organization. Not
only this, it also studies the effect of internal as well as external business environment like legal,
cultural, political etc. It is important to study organizational theory because it helps in solving
problems and at the same time, maximizing efficiency as well as productivity. This further helps
in meeting the expectations of the stakeholders of the company. Organizational theory then uses
various patterns to formulate new strategies. There are various organizational theories like
classical theory, scientific management theory, bureaucratic theory, modern theory etc. If an
organization uses organizational theory in an effective manner, it can have various benefits not
only for the company, but society as well.
Organizational theory can help in identifying adverse forms of corporate practice that can
affect an organization. The organization chosen for this report is Mothercare, which is a British
retailer of products for expectant mothers as well as general merchandise for children up to the
age group of eight years. The company was founded in the year 1961by Selim Zilkha and James
Goldsmith. Mothercare is headquartered in Watford, United Kingdom. When the company
started initially, it focused on selling pushchairs, nursery furniture and maternity clothing but
later on expanded its product portfolio. Today, the company offers a wide range of clothing for
expecting mothers as well as children (Bowen, 2016). The report examines the management style
and state the principle as well as functions of management that are used by the CEO of the
company. The report also analyzes the steps that are taken in context to organization structure so
as to achieve high performance and the organization culture within the respective company.
Lastly, the different types of motivation that are used at Mothercare.

TASK A
Management style, principle and functions used by the CEO of Mothercare
There are various types of management style and principle that will assist CEO of
Mothercare organization to conduct its business activities (Pollack, 2015). Management style
will guide and direct CEO to manage its business function as well as increase capability of
business to attain set goals. CEO of respective company is using participative management style
in order to direct employees. This is very effective management style as this will support and
guide employees to work in right direction in order to meet with business requirements. In this
management style CEO is participating in business activities and this will lead to motive
employees to conduct business task effectively and efficiently.
There are different principles of management that will provide guidelines for conducting
business activities as well as management organization task. CEO of Mothercare organization is
considering different important principle of management while conducting business task. Major
principle that is consider by CEO includes division of work, authority and responsibility and
equality.
 Division of work – As per this principle, CEO divide larger and complex task of
organization into small parts . This work is divided among different employees according
to skills and capability.
 Authority and responsibility – This principle of management refer as the right of person
to take accountability of work done and obligation for performance.
 Equality – CEO of Mothercare organization is considering equality principle in business.
According to this principle each and every employee of organization is treated correctly
and kindly.
Functions of management that is used by CEO of Mothercare organization are –
 Planning – This function of management will help CEO to take better decision that will
assist in attaining set objective (Lindon and Trodd, 2016). In planning function of
management will lead to create a detail action plan for conducting business activities.
 Organizing – This refer to organizing and managing different functions and resources of
organization. It is crucial for CEO to organize all resources and employees of