Organizational Structure of Marks and Spencer Assignemnt

Report-context of business

Table of Contents
INTRODUCTION...........................................................................................................................2
1. Summary of the organization...................................................................................................3
2. Organizational Structure of the company................................................................................3
3. Impact of Organizational culture on its business functions.....................................................5
4. Recommendations for improvements in leadership styles and management practices of the
organization..................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Leadership is an important element of management that involves organizing the group- of
people working towards a common goal and lead them by initiating different activities that helps
them to accomplish that goal. Management refers to organizing activities and people in an
organization to lead the towards specific objectives of the company. This report is based on the
study of Marks & Spencer company and will highlight the leadership style, management practice
and organizational culture of then company. The report will also represent the impact of
organizational culture and management practice on the business functions and strategies of the
company. The report will also include certain recommendations in improvement of the
leadership style, management practice and strategies for the growth of the business organization.
1. Summary of the organization.
Marks & Spencer Plc is a British Multinational retailer company in London, England.
The company serves at 1463 locations all over the world and has the overall revenue of £10,377
million. The company has net income of £37.3 million and consists of 80,787 employees
working under it. Marks & Spencer was founded in 1884 by Michael marks and Thomas Spencer
and currently the company is listed in London stock exchange and deals in selling high quality
clothing, home products and food products across the world. The company has 959 stores in UK
that includes 615 stores selling food products.
2. Organizational Structure of the company
Vision- Marks & Spencer aims to provide the business with cost effective, innovative solutions
and implement the best quality services to the customers.
Leadership Style- Marks & Spencer follows flat leadership style in their organization to
accomplish their goals and objectives. Flat leadership refers to a leadership style that has no
hierarchies or management in the organization. In simple words it can be described as the least
level of management between the managers and the employees(Arnold and et.al., 2015). The
employees of Marks & Spencer are given the authority to make decisions as well as perform the
activities as per their means. The employees are given more opportunity and responsibilities to
perform their work which enables them to make quick decisions in different situations for the
company. The employees have to justify their every decision to the manager later(Pardey, 2016).
Marks & Spencer head office in London includes 3000 employees that perform specialist roles

within the organization. These people are the buyers of the stock, stock management within the
stores, working staffs in marketing and accounts. More than 60,000 employees in Marks &
Spencer have been working under the flatter organizational structure of the company and
motivates each other in performing the tasks as well as accomplishing the goals and objectives of
the company(Galanti, 2018). This style has benefited the company in various ways such as it
helps to build self leadership among the employees, the employees are Team-Driven and provide
them skills of good team work and efforts, The employees are been able to make decision
themselves instead of their dependency on managers. Also The style has built up Trust element
among the employees as well as better communication and coordination among them in order to
perform and accomplish the tasks effectively.
Management Practices- Management Practices in Marks & Spencer is based on the
administrative theory of management by Henry Fayol. It includes different activities such as
Division of activities of the organization to different people. All the activities of the organization
are been divided as per the employee skills and each employee is allotted the tasks as per his
skills and performance. This in turn makes the uniformity in performance of the tasks by
employees and make the more productive as they get to perform these tasks as per their
capability and skills(Amanchukwu and et.al., 2015).
Another component is the scalar chain principle of management which involves
communication and direct contact with the superiors and subordinates of the organization.
Employees of Marks & Spencer can approach their manager without any complications and can
place their views as well as queries with ease. This makes the principle of Scalar Chain being
applicable to the company.
Employees Of Marks & Spencer takes initiatives and participate in decision-making
process for the company as due to its flat leadership style. This practice by the company makes
the employees to perform more and contribute as well as generate new ideas that will benefit the
growth of the company and accomplish its goals faster.
The Employees of Marks & Spencer are been provided efficient and attractive
remuneration and packages for their work and are also rewarded with various financial and non
financial incentives to increase their morale as well as appreciate their efforts to contribute
towards company's better performance. This management practice of Marks & Spencer makes

the company top adopt the principle of remuneration out of administrative theory(DuBrin,
2015).
Organizational culture- As per the Handy's culture typology, Marks & Spencer has adopted
Person Culture in functioning all the activities of the organization. The employees are been given
authority and responsibility to perform according to themselves as well as initiate decision-
making on the behalf of the company. This has benefited the company as the employees generate
new ideas of marketing and other activities. This has also led to the employee's well-being and
established the team work skills among them(Bird and Mendenhall, 2016). The culture of Marks
& Spencer has led to the effective communication of the employees with their colleagues and
team-mates. This has reduced the burden from the managers to instruct and guide every
employee for his tasks and also increased the morale of all the employees as they are considered
as a part of the company. Employees maker decision on behalf of the company and as per their
probability. However, they are being questioned regarding their choices in decision-making, and
they are responsible to state all the reasons before the managers. Hence, it can be observed that
Marks & Spencer follows employee friendly culture in their company to manage the employees
and make them productive for the company(Hayes, 2018).
3. Impact of Organizational culture on its business functions
The following are the impact of Marks & Spencer culture to its business functions-
 Culture of Marks & Spencer has defined the identity of the company. The organization is
popularly known for its employee's friendly and people culture which makes the
organization a better place to work.
 The culture of Marks & Spencer has made its employees more competitive and efficient
and have given rise to the healthy competition at work place. This in turn have resulted in
more and more contribution and efforts from the company employees towards their
performance of tasks.
 The friendly culture of Marks & Spencer has maintained unity among the employees as
all of them are treated equally as per their efforts and are given responsibilities to perform
their tasks and make decisions for the company wherever required. The culture has make
the proper adjustment of the employees in the organization and created one common
platform to perform and contribute towards the company's goals and objectives.

 The adoption of this People Culture by Marks & Spencer has resulted in the employees
being aware for their responsibilities and tasks, they are completely aware as per the
guidelines of their managers. But in turn this has created chaos in the organization as the
employees having different mindset are not satisfied with the decisions of their team
members which results in wrong decision or dissatisfaction among them(Bussu and
Tullia).
 The culture of Marks & Spencer has established healthy relationships between the
employees as well as developed the team spirit among them. This in turn have made them
to contribute in combined team efforts and facing the complications and challenges with
ease,
 The negative impact lies within the irresponsible behavior from the employees of Marks
& Spencer as well as taking all the things for granted by them.
 The recent slowdown and loss of revenue for the company has been resulted due to the
lack of management and authority over the employees. The power of authority is reduced
from the manager's perspective that has resulted in the low contribution from the efforts
of the employees(Carnall, 2018).
 The recent close down of 14 shops of Marks & Spencer has been result of poor culture
and management by the company over its employees.
 The tolerable culture of Marks & Spencer has given license to other employees behave in
the same manner which in turn has affected the business of the company.
 Lack of higher authority has led the company to make wrong decisions in various
situation that has led to the close down of several stores of Marks & Spencer across the
world. This in turn has decline the profitability rate of the company resulting into higher
employee turnover in the organization.
 More flexibility has led the lack of response from the employees and no control over
them by the management which has disturbed the business activities of Marks & Spencer.
 The culture is responsible for the overall loss of revenue of Marks & Spencer in the
recent times(Lewis, 2019).

4. Recommendations for improvements in leadership styles and management practices of the
organization.
The current recommendations is based on the downfall of Marks & Spencer business and
close-down of its stores in the market due to its poor management practice and leadership. The
following points are recommended to improve the current condition of Marks & Spencer-
 To change the leadership style from participative which involves the employees rights in
decision-making and taking opart in the important decisions for the company to
democratic leadership. This will provide authority in the hands of managers to initiate the
decisions for the company and avoid the mistakes made by the employees. However, the
reviews and suggestions will be collected from the employees and the decisions will be
made on their behalf(Andy-Wali. and Wali 2018).
 The application of principle of unity of command which refers to the command made by
the managers and supervisors, in the management practice of Marks & Spencer which
will create a sense of responsibility and pressure for the employees to perform the tasks
on time. This will also act in the form of guidelines that the employees will be able to
clear their doubts and work efficiently as per the instruction and command of the
manager or supervisor.
 In case the company has adopted the flat structure, the first thing that can be done is to
establish effective communication and coordination among the employees. This can be
done through the removal of communication barriers among the organization son that the
employees can communicate and perform uniformly in their activities.
 There must be improvement in the hierarchical structure of the Marks & Spencer due to
inadequate flow of information from top to lower level. This will not only improve the
flow of information but also initiate the proper guidelines and instructions been suggested
by the higher level authority. Thus there must be improvement in the Hierarchy structure
of Marks & Spencer(Ah-kee and Khan, 2015).
 Setting of short term goals for the group of employees in relation to the organizational
objectives. This inn turn will integrate the combined efforts of the employees to
accomplish the targets allotted to them and bring out the company a clear path to move
towards its primary goals and objectives.

CONCLUSION
From the above report it is summarized the detailed study of organizational leadership
style, the use of different practices of management and the culture adopted by the organization to
perform its business activities. It can be studied about how the positive aspects as well as
negative aspects of the styles and practices been adopted by the organization to run their
business. Further the report studies the impact of organization culture on the business functions
and activities of the organization and states how the culture affects the stakeholders, position as
well as the growth of the organization. The report concludes by suggesting recommendations to
improve its current leadership style, management system as well as culture that can enhance its
growth and success in the long run period.

REFERENCES
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