Organisational Theory and Practice: Analysis of Sainsbury's Leadership Style, Structure, Culture, Entrepreneurial Strategy, Corporate Governance Policies, and Motivation Strategies

This report analyses the effectiveness of Sainsbury's leadership style, current structure and culture, entrepreneurial strategy, corporate governance policies, and motivation strategies. It also examines the effects of power, influence, and conflict resolution at Sainsbury by the CEO and provides recommendations to increase organizational performance.

Organisational Theory and
Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
A. Analysing the effectiveness of leadership style using models................................................3
B. Assessing the current structure and culture of Sainsbury with role and impact of CEO over
it...................................................................................................................................................4
C. Explaining entrepreneurial strategy and corporate governance policies followed by CEO. . .5
D. Examining the effects of power, influence and conflict resolution at Sainsbury by the CEO6
E. Explaining the various types of motivation strategies ............................................................7
F. Using appropriate corporate examples....................................................................................8
G. Recommendations to Sainsbury’s to increase organizational performance............................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Organizational theory used to involve the set of concept that are related to each other and
also explain the behaviour of the social units in the organization. This theory have concern with
the group of individuals as the behaviour of the people may vary. The current report is based on
the Sainsbury’s Plc. Which is the second largest supermarket chain in the markets of UK. The
organization was founded in 1869 by John James Sainsbury by having the shop in Drury Lane,
London. The current report will outline the effectiveness of the leadership style of the CEO y
using the models. This report will also outline the current structure and culture of the
organization and the role of CEO to enhance the organization to achieve the high performance.
Further this report will outline the entrepreneurial strategy and corporate governance policies that
is followed by the CEO to enhance the organizational performance. The report will also outline
the effect of power, influence and conflict resolution. At last the report will outline the corporate
examples and literature in order to justify the research. Further it will outline the
recommendations that will help the organization to increase the organizational performance.
MAIN BODY
A. Analysing the effectiveness of leadership style using models
Great Man Theory: In this theory of leadership, the leadership is seen as the heroic act
on the part of the individual. There is something different about the person's combination of
qualities, personality traits and the abilities to set the person as the great leader. This is the
simple theory for the business as businesses have long been turning to the individuals and helps
them to achieve the common objectives of the company.
This theory will help the CEO to have the different qualities of the employees which will
help them to increase the organizational performance. This will help the company to achieve the
objectives and goals by having the effective leadership in the organization.
Lewin Theory of Behavioural Leadership: In this model of leadership, Lewin used to
argue that there are basically three types of leaders which are Autocratic, Democratic and
Laiseez- faire types of leadership styles (Mansaray, 2019). The autocratic style of the leadership
used to make their own decisions without discussing any matters with the team members. The
democratic leadership style is the type of leadership in which the leaders used to have input of
their team before making the decisions. This is the best style of leadership that makes the

employees to participate in the decision- making process. In the Laiseez- faire leadership style
helps the employees used to do as they want and the leaders don't interfere what there employees
are doing.
Sainsbury’s CEO can use the democratic leadership style which is one of the best
leadership style. This leadership style helps the company to make the decisions and the leaders
used to have input of their team before making the decisions (Devi and Subiyantoro, 2021). This
is the effective way of making the decisions as it helps the CEO to make the best decisions for its
organization. This style is effective as it makes the employees to take part in the decision-
making and helps them to retain I the organization. As this style used to focus on the group
equality and make the employees to have the free flow of the ideas and helps the leaders to have
the good decision-making (Yunarsih and et.al., 2020). This leadership style is very effective for
the CEO as it encourages brainstorms and make them to have the wide range of ideas in the
organization. This makes the company to have the innovation, helps in problem-solving and have
the creative ideas. By this, it makes the company to encourages the empowerment for the
members of team.
B. Assessing the current structure and culture of Sainsbury with role and impact of CEO over it
The rules, regulations, norms and policies formed to achieve objectives of the company
are referred to as the structure of the organization. Culture of the organization comprises values,
behaviours and attitudes of the workers within the company.
Organizational structure followed at Sainsbury is hierarchical structure. It is a pyramid
shaped organizational structure in which all the departments have their own teams and heads of
all the departments report to the main authority. This type of structure suits to large organization
like Sainsbury. Lines of authority are clearly established along with clear understanding
regarding employee roles and responsibilities. In case of any unfavourable event been occurred
due to wrong actions accountable unit is identified easily. Employees have opportunities to
develop and excel or expertise in their field. Employees can be closely supervised as the
managerial control span is narrow.
The organizational culture followed at Sainsbury is Role Culture according to Charles
Handy Model of organization culture (Charles Handy Model of Organization Culture, 2022). In
role culture roles and responsibilities is delegated based on the basis of area of specialization,
educational qualifications and interest of the employee with a view to get the best of employee

efforts. In this type of culture applicant is selected based on their calibre that fits with the roles of
the job and this lead them to accept challenges at their own will. Individual is accountable for
their course of actions. The ownership or accountability of assigned work is with the employee.
Responsibility gives rise to power within this type of culture.
Simon Roberts the CEO of Sainsbury plays a huge role and have great impact over the
organizational structure and culture of Sainsbury. All the rules, regulations, policies and norms
formulated to direct the organizational structure of the company are led down by the top
management. The heads of various departments or divisions are accountable to Simon. The
organization culture of Sainsbury have huge impact from the values that Roberts entails within
the organization. The values of Simon mould the culture of the Sainsbury. Simon Roberts is an
optimistic, confident and inspirational person. These personality traits and values of the CEO of
Sainsbury is seen in the organizational culture of the company. The employees of the company
are more committed towards the goals of the company and are satisfied with their work lives and
possess good mental and physical health. These points reflect the values of Simon within the
culture of the organization.
C. Explaining entrepreneurial strategy and corporate governance policies followed by CEO
Entrepreneurial strategy refers to the means through which the firm used to establish and
re- establish its set of relationship with the environment. This strategy is characterized by the
widespread and the changes are by organization on simultaneous basis. This strategy is very
important for the cited organization as it helps to define the business, provide the set of values
and also prove the purpose of working. The main concept of using this strategy is to distinguish
its products and services in order to survive long-term in the market (Anwar, Khan and Khan,
2018). The entrepreneurial strategy used by the company is to have the innovation in the market
which helps them to grow in the markets of UK. The organization can use the social media
websites that helps them to have the innovation which helps them to increases the productivity.
The organization is committed with the high standards of the corporate governance and
used to apply the main and supportive principles of the UK corporate governance code (Dyduch,
2019). This code of Sainsbury used to have emphasis on the need for the well- balanced,
overseeing of the risk management, effective board and the proper alignment of the remuneration
policies and the good shareholder relations. By using the theory of corporate governance that is
agent theory will help them to have the good management in the organization. This theory is

related to the relationship between the owners of the company and its directors. In this theory the
shareholder are expecting from the directors of the company to make the decision in their favour.
The company must follow the corporate governance policies that helps the organization to
enhance the organizational effectiveness and performance (Swain, 2020). As the directors cannot
give the decisions in the favour of shareholders which makes the company to have
mismanagement in the work. By this it used to create the conflicts between the directors and
shareholders of the company. The agent theory of the corporate governance helps the company
to have the harmonization of the interest of the managers with the shareholders in order to
maximize the company value. By having this the value of the company will not be affected by
the competing interests of the managers in the different decision-making process.
D. Examining the effects of power, influence and conflict resolution at Sainsbury by the CEO
Simon Roberts is the highest ranked executive in Sainsbury. The French and Raven
model is applied in the organization. There are five bases of power in accordance with French
and Raven model namely, legitimate, reward, expert, referent, coercive and informational. Simon
Robert posses the expert base of power. All the major corporate decisions are taken by the CEO.
The overall operations of the organization are managed by chief executive officer (Baker and
et.al., 2019). CEO manages all the resources of the company and act as linking point between the
board of directors and operations of the corporate. Simon Roberts is the public face of the
company. CEO of the company has the power to communicate with the shareholder of the
company, government entities and public on the behalf of the company. CEO leads the
development of short and long term strategies of the company. Vision and mission of the
Sainsbury are created and implemented by the Simon Roberts. CEO has the power to evaluate
other executive leaders that includes directors, president and vice presidents on basis of their
work. They maintain the awareness regarding the opportunities for expansion, development in
the industry, etc. All the decisions made by the CEO influence the organization directly.
Conflicts at Sainsbury are resolved through transactional analysis. In transactional
analysis conflicts are resolved by first understanding the transaction carefully. Transaction means
the issue or topic that is the root cause behind the conflict. After the main reason of conflict is
identified both the parties involved in the argument are asked to put their point or opinion on the
matter of cause (Wang and et.al., 2018). The basic idea of this theory is that conflicts majorly
arises because of misunderstanding or misjudgement relating the facts between two parties. So

when both the individuals or groups in the conflict represents their part of story facts are
represented to them. There are commonly three types of behaviours that people posses these are
the parent, adult or child behaviour. Person with parental behaviour is more dominative and more
likely to raise voice when felt unheard or misunderstood (Erie, 2019). Adult behaviour gives
emotionless statements that are more goal focussed. And the person with child behaviour is
emotional and tends to present excuses instead of focussing on the actions that will really help in
resolving the issue. The conflicts are resolved on the basis of behaviour that an individual poses.
E. Explaining the various types of motivation strategies
Maslow's Hierarchy of needs is one of the best theory of the motivation that used to states
that the actions of person are motivated by certain physiological needs. This motivational theory
includes the five- tier model for the human needs by using the pyramid. In order to motivate the
employees in the organization they can use this model to motivate and enhance organizational
performance (Maslow's Hierarchy of Needs, 2022). Sainsbury can use this motivational theory
that helps them to influence the employees by satisfying their needs and wants. This theory
includes the five needs that is self- actualization needs, esteem needs, love and belongingness
needs, safety and physiological needs. These needs helps the employees to fulfil their needs and
wants in the organization.
The cited organization must used to have focus on the all needs of the Maslow's hierarchy
of needs. This theory used to suggest that the individuals must satisfy the needs and wants which
helps them to meet the higher level of satisfaction in the market. By providing them the
physiological needs such as food, water, homeostasis helps them to feel satisfy and improves the
standard of living. By providing the financial and health related security makes the employees to
perform better in the organization. The company by providing good and fair wages to their
employees influence them to do better for the organization (Murnieks, Klotz and Shepherd,
2020). By having the job which used to provide the financial and health related security helps the
employees to perform better in the organization. The organizational leaders and managers must
have the good and positive relationship with their employees as social needs are the most
important needs that the CEO must give in order to influence the employee's performance. By
having the good and positive culture in the organization improves the employees performance
and efficiency. The fourth need is the esteem needs that includes the need for appreciation and
respect for the employees in the organization. The employees who are satisfied by having the

esteem needs by having the good self- esteem makes them achieve the objectives of the
company. By having the self- esteem it helps to develop the feeling of inferiority and makes the
employees to increase their performance.
F. Using appropriate corporate examples
First corporate example is of British airways. The transactional from of leadership style is
followed at British airways. In the views of Purwanto, Asbari and budi Santoso (2019) this type
of leadership style the top management of the organization believes that by offering rewards and
punishments to desired optimum outcome can be extracted from the job roles of their
subordinates or other employee. By adapting to this kind of style for leadership the leader of the
company is able to reach the short term goals quickly. Clarity regarding the expectations of
employer from the employees is there in this style.
Second corporate example is of Adobe. People value based organizational culture is
followed at Adobe. Value based organizational culture is the best type of organizational culture.
All the employees share the core values that creates a living and breathing culture. The value
based culture inspires and motivates the employees in relation to every decision taken by the
management of the organization. The employee engagement is highest in this kind of culture.
Social entrepreneurial strategy is practised at Caledonia Cremation. In social
entrepreneurship the entrepreneurs follows the process for developing and funding the projects
that directly address the issues prevailing in the society. In accordance to Ko and et.al. (2019) the
entrepreneurs adapting to this kind of entrepreneurial strategy explores the opportunities by
which their enterprise can exert positive impact over the community or society.
G. Recommendations to Sainsbury’s to increase organizational performance
As the organization is the second largest store in the market of UK it must follow the
current trends of the retail industry that helps them to grow and increase its organizational
performance. There are some suggestion and recommendations that will help the company to
grow is described below:
1. It is recommended to the company that they must use the participative leadership
style in the organization. This style will help the organization to make the
employees to take part in the decision- making of the company. By making the
employees to take part in the decision- making helps them the company to retain
them in the organization.

2. It is also recommended to the company that by applying the task culture it will
help them to delegate the roles and responsibilities. The roles and responsibilities
must be divided on the basis of specialization and interest of the employees
(Westerhold and et.al., 2018). This used to create the good culture in the company
as the employees will be working with the interest. The power in this used to
come with the responsibilities in this type of work culture.
3. Further its is suggested to the company that they must motivate their employees
that will help them to enhance the organizational performance. They must provide
the financial and non- financial rewards to the employees that used to motivate
them in their work. They must take the feedback from the employees related to
the work and culture of the organization that helps them to feel valued and
motivated.
4. It is also suggested to the company that they must provide the best products and
services to their customers. This will help them to have increase in the
organizational performance. They should have some diet free products that helps
the customers to buy that products as people are more health conscious. It is
further recommended for the firm to use compromising or reconciling strategy for
resolving the conflicts. In compromising strategy for conflict resolution the
parties that are involved in the argument critically think and find out a path which
is acceptable by both the parties (Veldhuis and Wargute, 2019). The type of
technique helps in resolving the conflict immediately.
CONCLUSION
From the above report it is concluded about the effectiveness of the leadership style of
the CEO by using the models. The CEO of the organization can use the democratic leadership
style that helps them to have the good decision-making. This report has also concluded about the
current structure and culture of the organization and the role of CEO to enhance the organization
to achieve the high performance. Further this report has concluded about the entrepreneurial
strategy and corporate governance policies that is followed by the CEO to enhance the
organizational performance. By having the good corporate policies it will help the organization
to have the good productivity and profitability in the market. The report has concluded that the
CEO of the organization have great power and influence over the overall functioning of the

business. The positive impact of effective motivation strategy over the employees working
within the organization have been analysed. Report has also outlined the appropriate corporate
examples of British Airways following transactional style of leadership, People value based
culture existing in Adobe and how social entrepreneurial strategy is adapted by Caledonia
Cremation. Lastly, recommendations have also been made for improving the organizational
strategy at Sainsbury.

REFERENCES
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Maslow's Hierarchy of Needs. 2022. [Online]. Available
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