Organisational Theory and Practice

ORGANISATIONAL
THEORY AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
A) Management style and functions used by CEO of Nike........................................................3
B) Steps taken by CEO to achieve high performance through organization structure and
culture and its impact on employees...........................................................................................4
C) Leadership Style of CEO to enhance effectiveness...............................................................5
D- Effect of power, influence & conflict at Nike........................................................................6
E- Different forms of motivation used at Nike...........................................................................7
F- Relevant examples..................................................................................................................9
G- Applicable recommendations in regard to increase performance of Nike...........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Organizational theory and practice consists of several approaches and methods conduct in
context of companies. It could be considered as study of nature and behaviour of companies as
well as their atmosphere. It concerned with connection of personal aims with firms’ relations
between group and individual. The current assignment will be based on Nike company, which
falls under category of leading footwear manufacturing organizations in the UK. This study will
explain management style and functions & principles of administration utilized by chief
executive officer of chosen firm that has been operated in retail industry. Furthermore, it will
define the steps taken by CEO in context of company structure to achieve excellent performance
and change in its organizational culture brought about by CEO of that organization and its effect
on workers. This report will justify leadership style of chief executive officer in order to enhance
business effectiveness and will also explain effects of power, conflict and influence at retail
enterprise.
Moreover, this study will describe the different forms of motivation utilize at organization
and will also define suitable corporate examples to justify data relate to overall study. In
additional, this assignment will simplify appropriate suggestions based on all over discussion in
context of selected company.
MAIN BODY
A) Management style and functions used by CEO of Nike
Nike is the biggest brand. CEO of Nike uses participatory leadership style. Participatory
leadership style describes a management style that allow employees of the company to contribute
their views and ideas for formation of strategies. In this style manager need to delegate part of
his power so that workers can take decisions (Posadzińska, Słupska and Karaszewski, 2020). So
that group of employees can decide what solution would be better. CEO of Nike allow its
employees to take initiative for better development of organization as well as personnel.
It has also observed that Nike's CEO uses different leadership depending upon
circumstances. The CEO has stated many times that sticking on one leadership can create
unhealthy atmosphere in company. But it mainly focuses on democratic style of management. He
makes sure that ideas should come from each level of organization but direction and
management of this innovation must be from the top-level of hierarchy. Ideas can come from

anywhere so CEO support each employee to share their contribution. In respect to participatory
style of management is the best way of managing a large organization. In retails sector company
give emphasis on taking thoughts of everyone but at the end leader only make the final decision.
Being an international company Nike follows management principles that fulfil their
objectives. Customer is most important person in fashion industry whose taste and preference
can frequently change. Another principle is providing detail of each product is very essential.
The way of promoting your product on best location with affordable price is perfect strategy for
success of firm. Reaching each location of interested customer is high priority principle of Nike.
Clarification of objectives and goals to improve employee efficiency and following proper
control on each department's roles and responsibilities are main management principle of retail
industry.
There are many functions of management. Each industry uses those function which
makes their way of Woking efficient. Planning, organizing, staffing, directing and controlling are
some common functions. Nike uses these functions to make sure that the process it is using is
effective and give it positive outcome (Anastasiou, and Garametsi, 2021). Assembling of goods
from different warehouses, making coordinating among all departments so that final commodity
can reach to potential customers, using the best leadership style to make the best strategical
planning, financing of inventory and enlargement of customers credit period are used by the
company. To maintain quality of products to be top n industry is main function of Nike.
B) Steps taken by CEO to achieve high performance through organization structure and culture
and its impact on employees
Nike adopts that Organization structure which can enable it to accept changing
circumstances. Organizational structure defines the plan in which the company is going to
achieve its goals and objectives. It also defines hierarchy for flow of information. These
activities include role, responsibilities and rules of organization (Nguyen and et.al., 2017).
Ability and limits of company can be characterized through structure of organization. This
interconnects employees, groups and various departments. Nike use geographical divisional
organisational structure. The structure follows global leadership which involves the managers of
corporate, who take all decision regarding management of Nike. It focuses on uniqueness of
regional market. It divides its structure in three parts global division to define leadership style for
each area., semi autonomous structure for making divisions of geographical areas.