Organisational Theory and Practice at Burberry: Management Styles, Organisational Structure, Leadership, and Motivation

This document discusses the organisational theory and practice at Burberry, a British fashion retailer. It covers topics such as management styles, functions, and principles used by the CEO, steps taken for organisational structure and culture changes, leadership style, the effect of influence, conflict, and power, and different types of motivation used at Burberry. The aim is to understand how these factors contribute to organisational effectiveness and performance.

Organisational theory
and practice

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
A. Describe management styles and also state functions & management which is used by
CEO of Burberry.........................................................................................................................1
B. Examine steps which is taken by CEO in terms of organisation structure for achievement
of high performance and also state changes in organisational culture and its impact on team
member. ......................................................................................................................................3
C. Discuss leadership style of CEO of Burberry which increase organisational effectiveness. 4
D. Examine effect of influence, conflict and power at Burberry. ..............................................5
E. Describe different type of motivation which is used at Burberry...........................................6
F. Use appropriate business example for justification. ..............................................................7
G. Recommendations/ suggestions for increase performance of organisation...........................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organisational theory is define as combination of concept which are interrelated with
behaviour of organisation and groups of individual who are interacting with each other for
performing their duties and roles which are directed with aim of accomplishment of common
goals (Gunasekaran and et. al., 2018). Organisational theories and practices are defining as
practices and studies of social relationship of team member for their company. It also helps in
determining and analysing internal and external environment factors like political, economic,
social, culture and legal.
The report is based on organisational theories and practices of Burberry, which is a
British fashion retailer headquartered in London, UK. Burberry is having their market presence
in 59 countries along with 421 stores around the world. The CEO of Burberry is Marco Gobbetti.
The report involves management principle, functions and style which is used by CEO of
retail company, there is also examine of steps which is taken by CEO, as changes which is taken
in structure which helps in achievement of high productivity and performance & changes in
structure of company and also impact on employees. In addition, there are various leadership
style which is choose by CEO for increase effectiveness of organisation. There is also analysis as
effect of conflict, power and influence of Burberry. In addition, there is also explanation of
various types of motivation and some other corporate examples are included. At last there are
suggestions and recommendations which helps company for increase their performance.
MAIN BODY
A. Describe management styles and also state functions & management which is used by CEO of
Burberry.
Management of company involves planning, organising effort of work which helps in
attainment of objectives and goals of company. Management style is defined as specific way by
which management of company attains goals and objectives in efficient and effective manner.
Basically management styles involve a system for making decisions and how planning and
organising of tasks are done (Hayes, 2018). This also define as in what manner management is
doing their exercise their authority and duties in company. There are various management styles
which are used by company at every level of management and from employee to employee.
There are many style of management which is considered by company are discussed below:
1

 Autocratic style: In this management style, system of management follows approach of
top down in company. It is define as controlling management style in firm. Authoritative style: In this type of management style, manager & leader of company
which direct exactly as requirement of company for attainment if goals and objectives to
their staff members.
 Persuasive management style: In this type of management style manager have
responsibility for maintaining control on process of decision making. So they use their
impressive skills for convince their team members for decision which is taken have to be
appropriate and good for company (Howitt, 2019).
There are some principles of management which are used by company for having
effectiveness and efficiency at their working place. There are some principles which are
discussed below: The principle of unity of direction is define as all tasks and work are considered in
company have to focus for attainment of specific objectives and goals of company. The principle of authority and responsibility is define as management have to make sure
as tasks and activities which are performed are complete in terms of effectively and
efficiently by optimum utilisation of available resources. The principle of unity of command is define as there is only one boss for one employee
of organisation. The principle of discipline is refer as management have to work that are done on time in
terms of sensibility.
 The principle of division of work is define as work are divided in team members in
company which is according as specialisation & skills at work place.
In context of Burberry, there are many functions of management which is consider by
CEO of company, Planning is define as basic function of management which is deals with future
course of deciding and action in advance which is considered as course of action for attainment
of pre-determined objectives & goals. Organising is define as implementation of plan by using
appropriate resources which are been allocated for implemented the changes (Hughes, 2018).
Leading, manager of company has responsibility for inform the changes which have been plan
for attainment of goals and motivate stakeholder of company by sharing vision of future.
2

Controlling, manager have to analyse success indicators for change and also ensures as these
indicators have to evaluated on regular basis.
B. Examine steps which is taken by CEO in terms of organisation structure for achievement of
high performance and also state changes in organisational culture and its impact on team
member.
Organisation structure is define as system which outlines as how activities are directed in
order for achievement of goals and objectives of company. In terms of Burberry, organisational
structure of clothing retail company is basically based on size and type of organisation. There are
various changes which is adopted by CEO of company for examine new organisational structure
are discussed below:
 There must be some layers of roles and duties in department of organisation, so by this
structure of organisation have efficiency in them. So by this there duties and roles are
performed in effective manner (Falola and et. al., 2018).
 There is also focus on customer experience as all tasks are performed in such manner as
there is attainment of objectives and goals of company which have been gain by serving
end users by quality products.
 By considering a tie up in compensation for customer experience by job duties and roles
in company.
 By development of culture such as one organisation as one team, the silos are eliminated
among operations and sales in company (Holbeche, 2018).
Each and every company in market segment have desire for attainment of their targets.
By appropriate organisational structure, firm are working in terms of objectives and goals of
company. There is responsibility of staff member for work together and delegation of duties or
task by having various distinct functions between them. In terms of Burberry, organisational
structure generates impact on workers and employees as due to poor organisational structure this
leads to low productivity in company. As when organisational structure is not properly designed
there is less delegation of work among staff members and there is no incentives are paid to them
so this results in effect of working culture of organisation. But, when organisation structure is
designed in proper way, so this leads to increase in performance and productivity in company.
There is no confusion is there among team members as they have clearly defined roles and duties
3

which have to be performed by them, this results as attainment of goals and objectives of
company in suitable manner (Burke, Genn-Bash and Haines, 2018).
C. Discuss leadership style of CEO of Burberry which increase organisational effectiveness.
Leadership is define as practical skill and research area which encompasses ability or
capability of individual, organisation or group for guide or influence other teams, individual or
whole organisation. It is define as process of social influence in which an individual is listed as
support and aid of each other for attainment of common task (McGee and Pettit, J. eds., 2019).
Every manager of company use leadership styles for motivate their employees for attainment of
planned goals and objectives. There are various leadership styles which are discussed below: Democratic leadership: This is type of leadership is also known as shared or
participative leadership which allows equal participation of each and everyone in process
of decision making. Autocratic leadership: In this type of style, leader and manager of company makes and
directs decision in company. This is effective leadership style as in this, managers and
leaders are only individual who influences and directs behaviours of workers and
employees in firm (Waddell and et. al., 2019). Laissez faire leadership: In this type of leadership, this is defined as employee
empowerment in company. In this employees of company have to take initiatives for
making decision of company for considering better performance of firm.
 Bureaucratic leadership: This style is based on implementing and taking decisions
which are according to company’s books. In this, the manager and leader have to
consider inputs and also opinions from employees of company.
In context of Burberry, working environment of organisation is stressful, as all products
have to be properly arranged on time to time basis. Products have to be arranged in proper
manner which have to be scanned by cashier. Workers and employees of Burberry is having
proper knowledge as what they have done and they are taking all initiative in intensive training at
all moments so manager of company use supportive leadership style. There are also exemptions
as store manager is use directive leadership style as when they have to hired and trained which is
depends on ability for adopting and learning (Potii, 2020).
4

D. Examine effect of influence, conflict and power at Burberry.
There is effect of conflict, power and conflict in every organisation. Power is define as
authority of person for complete task. By power conflict is arise in company. Power is also of
various types; legitimate power, informational power, expert power and so on. The effect of
influence, power and conflict in the case of Burberry is explained as below: -
Influence Power Conflict
There is effect of culture on
team members, corroborate
culture and so on which
influences the organisation.
There is effect of influence in
terms of Burberry. There are
various strategies and
principles are used by founders
which have effect of influence
in terms of organisational
culture.
Influence also affect economic
efficiency of Burberry.
There is low power of
suppliers because Burberry
established their brand image
very appropriately. There is
effective relation with brand
which is always maintained by
managers of company.
In case of buyer’s power,
every customer has different
type of requirements and they
chose the market according to
their preference. Customers
think about both price as well
as quality. So, it was very easy
for buyers to select any other
supermarket.
If there are conflicts in the
organization, then it can even
break the company which
would be a major loss for the
company.
In terms of Burberry various
conflicts are arising in the
organisation which are
considered as threat for
company as quality of products
are not effective. (Liubertė,
2018).
Power of customers is low in
case of Burberry because
company was giving
continuous offers, discounts as
well as applied good
promotional strategy to attract
them due to which customers
were also very happy and they
Conflict also raised due to
existence of various
competitors and in this manner
Burberry is required to change
their business strategy.
5

were not switching to another
brand of clothing or
accessories. (Karatepe, Ozturk
and Kim, 2019).
E. Describe different type of motivation which is used at Burberry.
In the organization motivation is very much required as employees would work
effectively if they are being motivated effectively. There are different types of motivation like
achievement motivation, power motivation, incentive motivation, attitude motivation,
competence motivation. The types of motivation in case of Burberry is explained as below: - Achievement motivation: - It means how needs of people gets changed in context with
their experience. The achievement which employees earns in terms of their excellence
should always be recognised. In context of Burberry, manager have responsibility to
motivate their workers by provide them incentive, rewards which increase morale of
employees for their effective performance (Link and Scott, 2019). Power motivation: - This type of motivation means to influence people in terms of
performing in the organization, achieve their goals. Power can be in any form like
inspiration, authority, leadership and so on. In case of Burberry, they used the power of
inspiration as they inspired employees by giving feedbacks on their work and then
inspiring them that they should work according to that. Incentive motivation: - This motivation means that after looking the performance of
employees they are given certain incentives whether in the form of rewards or gifts or
even extra money. In case of Burberry, they give incentives to employees in the form of
financial incentives. Affiliation motivation: In this type of motivation which is basically based on social basis
of individual. In this type, individual who are associated are perform their task in better
as when there is situation of issues must be their favourable attitudes and cooperation. In
context of Burberry, this type of motivation is very important as in this there is no use of
money which motivate employees as there are minimum wages employees and
contingent professionals.
6

 Competence motivation: In this technique of motivation, it is defines as which is good at
something which allows person for performing high quality of work. In this, individual is
motivated as they are seeking as job mastery and they are engaged for develop and solve
the issues which is considered as obstacles for company. In order to get market advantage
the manager is having responsibility that they put high efforts for making high business
sales. (Bourne, Melnyk and Bititci, 2018).
F. Use appropriate business example for justification.
There are various distinct examples which is used for justification of various different
organisational practices and theories which are considered in enterprise. There are two examples
which are discussed below:
TESLA is a British auto mobile company which is basically operates in solar panels and
electric cars. The company is focus on innovation for their products and services with help of
examining various different theories and practices in organisation. TESLA use transformational
leadership style with motive of offer training to their staff members according to their skills and
experience. TESLA is considering various distinct management practices and theories which
leads to efficiency and effectiveness in company. This is a responsibility of manager and leader
that they have to focus on motivate their team members and workers which leads as effective
performance & productivity of company (Male and Palaiologou, 2019).
Marks & Spencer is a company which is British multinational retailing firm which
basically operates in home products, clothing and groceries. The company is considering various
distinct organisational theories and practices which leads to effective performance and
productivity in company. In addition, firm is uses various distinct principles of management
which leads as improvement of performance of company in market segment. Company is
considering democratic leadership style which allows their workers and staff member for taking
active participation in process of decision making which helps company as effective performance
by considering their employees as motivated by giving them various distinct recognitions and
rewards in firm.
G. Recommendations/ suggestions for increase performance of organisation.
From overall discussion there are distinct organisational theories and practice are used.
So there are various recommendations that are given which helps in increase performance of
Burberry which are follows:
7

1. The team of finance of company have to be highly skilled and trained which leads as
effective performance at working segment.
2. Money which is paid to supplier have to be paid at regular basis in appropriate times by
follow all terms and conditions.
3. There must be offering of better quality of goods which helps in maintaining brand image
in market segment.
4. There must be use of unilateral decision making process which leads as better
performance and productivity at work segment.
5. Manager of Burberry have to focus on their productivity which leads as effective and
better performance of company in market segment.
6. There is responsibility of manager and leader of company for choose right and effective
organisational structure which is lead as better performance of company.
7. There must be proper solution which is related to data errors which have to be examined
by experts as they have proper knowledge about subjects which is related to different
practices and level.
8. The manager and leader of company have to focus on tools and techniques which helps
increase in morale of employees and workers for work in efficient and effective manner
which results in increase performance and productivity of organisation.
9. The company have to offer clear idea and transparency which are dealing by their
suppliers of company.
CONCLUSION
From above report it is being summarised as organisational practices and theories are
very important for analyse the behaviour of organisation of employees for their working
efficiency. In report there is also addition of various different principles, management styles and
functions which are consider by CEO. The structure of organisation is made in such manner for
attainment of high performance and productivity of company and also there is changes which
have to take which is due various distinct factors. There is various different leadership style
which is considered by company in addition with motivational factors which are considered by
CEO of firm. Furthermore, there is effect of influence, power and conflicts which are explained.
8

There are also recommendations which are given to company which are offer for increase
performance of company.
REFERENCES
Books and Journals
Bourne, M., Melnyk, S. and Bititci, U.S., 2018. Performance measurement and management:
theory and practice. International Journal of Operations & Production Management.
Burke, T., Genn-Bash, A. and Haines, B., 2018. Competition in theory and practice (Vol. 3).
Routledge.
9

Falola, H.O. and et. al., 2018. Employees’ intrapreneurial engagement initiatives and its
influence on organisational survival. Business: Theory and Practice. 19. pp.9-16.
Gunasekaran, A. and et. al., 2018. Bridging humanitarian operations management and
organisational theory.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Holbeche, L.S., 2018. Organisational effectiveness and agility. Journal of Organizational
Effectiveness: People and Performance.
Howitt, D., 2019. Introduction to qualitative research methods in psychology: Putting theory
into practice. Pearson UK.
Hughes, M., 2018. Organisational ambidexterity and firm performance: burning research
questions for marketing scholars. Journal of Marketing Management. 34(1-2). pp.178-
229.
Karatepe, O.M., Ozturk, A. and Kim, T.T., 2019. Servant leadership, organisational trust, and
bank employee outcomes. The Service Industries Journal. 39(2). pp.86-108.
Link, A.N. and Scott, J.T., 2019. The theory and practice of public-sector R & D economic
impact analysis. In The Social Value of New Technology. Edward Elgar Publishing.
Liubertė, I., 2018. Theorising practice and developing practically relevant insights in
organisational research. Management of Organizations: Systematic Research. 79(1).
pp.55-70.'
Male, T. and Palaiologou, I., 2019. Leadership: theory and practice. In Sustaining the
Comprehensive Ideal (pp. 53-70). Palgrave Pivot, Cham.
McGee, R. and Pettit, J. eds., 2019. Power, empowerment and social change. Routledge.
Potii, O., 2020. POLITICAL, ORGANISATIONAL AND INFRASTRUCTURAL
CONDITIONS OF INTEGRATING OF UKRAINE TO EU DIGITAL SINGLE
MARKET. Theory and Practice of Public Administration. 2(69). pp.266-274.
Waddell, D. and et. al., 2019. Organisational change: Development and transformation.
Cengage AU.
10