Organisational Theory and Practice: Analysing Sainsbury's managerial style, structure, culture, entrepreneurial strategy, power and conflict resolution, and motivation strategies

This report analyses Sainsbury's managerial style, structure, culture, entrepreneurial strategy, power and conflict resolution, and motivation strategies to achieve high performance. It examines the effectiveness of the CEO's leadership style, assesses the current structure and culture of the company, explains the entrepreneurial strategy and corporate governance policy, examines the effects of power, influence and conflict resolution, and explains the various types of motivation strategies used at Sainsbury and their influence on employees' performance.

Organisational Theory and
Practice

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
A) Analysing the effectiveness of the managerial/leadership style of the CEO using models. . .3
B) Assessing the current structure and culture of the company and role of CEO and impact in
creating and enforcing them to achieve high performance..........................................................4
C) Entrepreneurial strategy and corporate governance policy of company................................5
D) Examining the effects of power, influence and conflict resolution at company....................6
E) Explaining the various types of motivation strategies used at Sainsbury and their influence
on employees’ performance.........................................................................................................8
F) Appropriate corporate examples and literature to justify research.........................................9
G) Recommendation....................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisational theory and practise is the study of various operating structures in
company. Theories and practices of company aids in highlighting specific issues and problems
and defining suitable structures which helps in solving those issues. Sainsbury recognised as
second largest supermarkets operating as grocery store in various countries. This report will
specify details by analysing effectiveness of managerial and leadership styles used by CEO of
company. Also assessing current structures and culture of company. Future explaining
entrepreneurial strategy and corporate government policies followed by company for enhancing
effectiveness. Furthermore, examining effects of power, influences and conflicts resolution at
Sainsbury.
A) Analysing the effectiveness of the managerial/leadership style of the CEO using models
Leadership and management plays a vital role in the company in order to achieve success
in the competitive market. management in the firm consists of controlling a group of people to
achieve desired targets. While on the other hand leadership means an individual’s ability to
inspire, encourage and influence other staff to contribute toward success of the firm. Leaders and
managers, both are the important part of effective management (Modha, 2020). The major role of
leaders is to build a positive environment in which every employee improves their skills and
knowledge level. On the other side, managers lay down the structure and delegates responsibility
and authority to staff members. They both give direction to staff by developing and improving
vision of the firm and communicate with them on regular basis by using their professional’s
skills like communication skills, interpersonal skills, leadership styles and management theories.
Understanding how leadership and management style vary can help the Sainsbury CEO
determine which align best to their business requirements (Castillo and Hallinger, 2018). It is
mandatory to select leadership with the good knowledge, right skills and great experience.
Transactional style- leaders who follow this style motivates employee performance by
giving them rewards like incentive, compensation, bonuses. In addition to this, the leaders also
respond to negative results with the help of skills like disciplinary action, communication skills
and many more (Jamieson and Donald, 2020). By using this style, the company’s CEO increase
performance and productivity and also ensure all the staff members meet expectations
consistently. By using this method, the company managers can also help teams hit revenue and
sales goals.

Democratic style- leaders who follow this style use collaboration method in order to build
relationship with employees. They seek input from staffs before making any kind business
decisions and provide effective solutions to their problems. Leaders engage employees by having
open communication with them and involve every staff to business decision by asking their
opinion (Gümüş and et.al., 2020). By doing so, they motivating staffs to achieve goals and
objectives of the firm. This style can create strong bonds between leaders and staffs which is
beneficial for success. CEO of Sainsbury engage employees by remaining open to new
experimentation and ideas. In this way, employees of Sainsbury feel they are important for the
firm and feel participated in important decisions.
Sainsbury is following democratic style and believes that is the most efficient and
effective style because this style involves all the staffs.
B) Assessing the current structure and culture of the company and role of CEO and impact in
creating and enforcing them to achieve high performance.
To function effectively in the world full of competition, every organisation need a good
structure in place. It determines the roles of different people play, their decisions and the impact
those decisions have on the company as a whole. Every structure has its own benefits and
drawback. Organisational structure and culture of the business play an important role to achieve
high performance and accomplish desired targets in the competitive world. Every business has its
own business structure and culture and leaders allocate different roles and responsibilities to
every employee. By having effective organisational structure, company will be able to maintain
coordination between people (Charles handy model of organisation culture, 2022). A good
structure can create healthy and positive environment which positively impact the performance
of employees. Since by using this method, people in the firm can understand of what one’s role
is in the firm. Every person is aware of who to report to and what their work are in the
department. Due to this, there is low conflict between staff members which is good for the
successful business.
Hierarchical organisational structure- It is the company structure that follows a chain of
command from the top level management team to regular workers and staff of the company (Liu
and et.al., 2019). The top management team is having most authority after that senior most have
different roles and responsibilities position above the pyramid and also junior most employees

occupy the bottom level position. Sometimes this structure creates lack of power for few workers
in the firm which cannot control situation.
Flat organisational structure- This model is used by many companies in which there are
relatively few or no levels of middle management between the mangers and other people. The
major purpose of using this method is to have as little hierarchy as possible to make operations
simple. This type of structure is mostly used by small companies and start-ups because they have
less workforce and they don’t need more hierarchical management.
Sainsbury is using Hierarchical organisational structure, here the communication flow is
made known to each and every staff (Importance of organisation culture, 2022). By using this
structure, CEO of the firm encourage creativity and run its business in a smooth way and
efficient manner (Zhao and et.al., 2019). The firm is following hierarchical structure because
there is series of levels of staff and the levels above controls each level. All of them have
different roles and responsibilities to achieve success.
C) Entrepreneurial strategy and corporate governance policy of company
Working in the competitive environment it is very necessary for Sainsbury to undertake
the use of effective on the neural strategy. The reason behind this fact is that the use of
entrepreneur as a strategy assists the company in making strategies for the future growth and
development. Thus Sainsbury undertake the use of entrepreneurial strategy of development. This
is particularly being focused by the company because it assists them in improving their
operational efficiency and to enhance the profitability of the business (Li, Terjesen and Umans,
2020). Along with this Sainsbury also undertake the use of effective corporate governance
policies. The corporate governance policies outline the strategies for the guidance which
employees and all the related persons need to follow within the business. These guidance
policies help the employees to know that what they have to do and in case they do not undertake
the work accordingly then what repercussions they have to face.
Hence as a result of this the operational efficiency of Sainsbury increases and employees
know how to work well in the company. Over all the use of corporate governance and
entrepreneurial strategies result in organisational effectiveness and performance improvement
(corporate-governance, 2022). The reason behind these factors that both the entrepreneur is
strategy and corporate governance help scenes very to motivate the employees to work in better
than a factor and the result of this operation is enhanced and financial performance is also

increased. Further the corporate governance policy involves policy relating to health and safety
of employees along with the protection of the environment (Khan and et.al., 2019). Both these
policies help since worry to improve the working efficiency and as a result of this the overall
property of the business is increased. In addition to this the entrepreneurial strategy of
development always focuses on growth and development of the company.
Thus as a result of this the performance of Sainsbury is always good and on increasing
trend. Hence it can be stated that the use of entrepreneurial strategy and corporate governance
policy is very important persons very to have a continuous growth and development for the
business and increase the profitability as well.
D) Examining the effects of power, influence and conflict resolution at company
Power is the ability to influence people’s behaviour, attitudes and habits to get what the
company want. Power an influence are the basic and important human phenomena which needs
to be taken into consideration while implementing any decisions. nowadays, success, conflict,
competition and defeat give rise to the desire and search for power (Gul and et.al., 2018). With
the help of power, managers can develop and build the personality of people but sometimes few
managers use their power in a wrong way which create conflict between them. This also create
negative environment and influence people in negative way which cannot build good reputation
in the market. If the conflict is more in the firm, then the more the need for power will be felt. In
few big companies, power is used as a management resources which give them success and
growth. When company change anything new and establish new policies, the conflict is seen at
the time is more as compared to normal days (Siren and Gehrs, 2018). By using Lewin’s change
management model CEO of the company will be able to manage change and reduce conflict. It
includes three steps which is unfreeze, change and refreeze when implementing change.
Reward power- it is the power used by managers to motivate their employees by giving
them promotion, money, increment and good position. By using this reward system and schemes
they help to defuse arbitrary practices in the employment of power of reward.
Expert power- it is the power used by management team and leaders in order to influence
over personnel based solely upon the knowledge, skills, expertise and perform well (uses of
power, 2022).They provide opportunity to employees to work with a competent person so that
proper knowledge can be shared.

Legitimate power- it is the formal authority given to a staff in the company because it
basically comes from a job title of that person and position. The company who follows this
power have positional power more.
In order to improve organisational culture, Handy’s model of organisational culture can be
used in which power culture says that power remains in the hands of few managers and only they
can make important decisions. partially needs to be avoided to maintain culture and avoid
conflict (Nasaireh, Abdullah and Obeidat, 2019). Task culture says that managers should form
teams to achieve targets and solve problems and provide them task based upon their interest,
qualification and experience. role culture says that it is important to delegate roles according to
education qualification and knowledge level. Hence, power comes with responsibility in this type
of work culture. one should always be loyal towards their company says person culture.
Conflict means dispute between two people, it is important to solve conflict between
employees to achieve success and build team work between them to complete task on time.
Nowadays, conflict management is plays a critical part in the company. Conflict management is
the systematic process of reducing the negative environment and increase the positive
environment to avoid any kind of conflict (Conflict resolution, 2022). According to The Thomas-
Kilmann conflict mode instrument, the major aim of conflict management is to motivate people,
build team work in the company and enhance learning. This method is used by HR professionals
in the company all around the world to manage people which includes avoiding, accommodating,
competing, collaborating and compromising. By using this method, company will be able to
increase effectiveness and performance of people in an organisational setting. However, the cited
organisation is following these steps to prevent any kind of conflict in the firm but need more
focus on developing organisational environment.
E) Explaining the various types of motivation strategies used at Sainsbury and their influence on
employees’ performance.
Motivation strategies are the techniques which is used by the company to motivate
employees for better working in the company for attaining goals and assigning objectives on
time. Sainsbury supermarket is majorly selling food and non-food items to various consumers
(Mone and London, 2018). Various motivation strategies used by company for motivating
employees as for working effectively and contributing growth for company are :

Recognizing Accomplishments: Recognition of Various accomplishments are given to
employees as of increasing sales of the supermarkets or completing tasks before given allotted
time. Recognising employee helps in building trust and creates sense of belongingness towards
the higher official and this encourages employees and retain talented employees for serving
company.
Incentives and bonus schemes : Various cash and non monetary incentives are given by
company for motivating employees (Panait and Panait, 2018). As this improves productivity of
employees . Various incentives given to employee are cash, non cash, discounted card policies
for purchasing products from stores, holiday allowances.
Healthy working conditions: Maintaining good working conditions as by ensuring safe
and clean atmosphere for working in company aids in motivating employee (De Sousa Sabbagha,
Ledimo and Martins, 2018). By encouraging breaks between working, also offering flexible
Woking schedules as for selling and maintaining clean shelf in stores of supermarkets.
Positive working atmosphere: The positive working atmosphere in company aids on
providing during employees for working better as it encourage the team working and creates
greater sense of accomplishments so that employees feel motivated and happier while working
and serving company.
Awarding employees for longer services: Company is motivating employees for
serving an providing extra services to company as by working for longer hours in company and
serving consumers (9 Strategies for Motivating Employees, 2022). Continuous rewards to
employees are given to long service colleagues as each milestone for the employees are
celebrated and rewarded.
Assistance programs for employees: Assistance program are being organised by
company as the employees well-being and healthy conditions is very important for serving better
for company (Steinbauer and et.al., 2018). For this the company have assistance programme
which is free of charge as for taking counselling for any problems faced or any financial and
legal advices.
Opportunities for career development : Various opportunity for career development is
given by company as on the job coaching is provided by conducting various webinars. Also
provide feedback to employees for increasing contribution of great performance.

Thus, all motivation strategies are used by company and influence employee’s
performance for serving better (Zacharias, Rahawarin and Yusriadi, 2021). As it creates
willingness to success which enhances productivity and loyal employees.
F) Appropriate corporate examples and literature to justify research
According to Zhao and et.al., (2019), leaders and managers create positive environment by
using various leadership and management models. By evaluating the study, it has been justified
that it is important to have effective leaders so that they can easily influence the employee
behaviour and attitude to complete task on time. By using power correctly, they can develop
healthy environment for staff so that conflict resolution can be provided. On the other side,
Nasaireh, Abdullah and Obeidat, (2019) commented that if power is used in a wrong way then it
can demotivate people and create more conflict between them. Sometime managers use their
power in a wrong way and do partiality with people, this should be managed properly to keep
staff happy and happening. Because motivate staff always do their best to achieve company’s
targets. By having relevant strategies and model, Sainsbury can easily manage change (Siren and
Gehrs, 2018). For example- if the leaders in the Sainsbury are not able to manage things properly
and not able to motivate employee then they cannot enhance the organisational effectiveness and
performance of staff.
G) Recommendation
 It is recommended to make proper use of human resources management team because
they play an important role in the company’s effectiveness and increase performance
(Kusainov and et.al., 2020).
 Leadership and management skills are important in the managers and leaders of the
company and require active measure to work with various types of people. A leader must
understand the weaknesses and strengths of people before making any decisions for the
business (Liang and et.al., 2020). Before making a action plan they need to improve the
effectiveness of the company. While making any kind of change it is suggested to use
effective model of change such as Lewin’s change management model as discussed
above.
 Encourage employees to work towards specific goals and give them regular assessment
based on their knowledge (Smętkowska and Mrugalska, 2018). Provide them training
with the help of methods like group discussion and assignments.

 By providing proper training and development sessions, the firm can motivate their staff
members and focus on motivational strategies such as giving them incentives, bonus,
rewarding and awarding them (Siren and Gehrs, 2018). By using communication skills,
leaders can easily communicate effectively and coordinate with them in order to solve
problems. Promoting team work will be beneficial for the firm. It is also advisable to give
employees feedback on the basis of their performance (Tips for improving business,
2022). It is important to set short and long term goals and strategies in order to help
ensure business in effective manner. The company can focus on role and task culture to
build team work and enhance communication systems within the team.
 It has been said that organisation effectiveness only works well when evaluating the
requirement of the clients. If employees do not provide a quality service to customer, then
they will look for alternatives which are not beneficial for the company’s performance.
 It is suggested to Use new technologies and provide quality service to keep customer
happy and satisfy their needs (Foster and et.al., 2018). By using social media pages and
platform, the firm will be able to gain feedback from customers. It is mandatory to listen
to concern raised by customers and employees both so that company can develop the
areas to gain competitive advantages.
 Survey can be helpful to understand the people’ mind and their emotions (13 secrets for
growing your business, 2022). By doing survey and asking questions in the meeting will
be very helpful to know about the required changes in the system of firm.
CONCLUSION
By evaluating the report, it has been concluded that Sainsbury can focus on developing its
strategies and marketing with the help of different distribution channels in order to gain
competitive advantage. However, the firm is concentrating on providing quality support to its
employees and customers but need some improvement which can be done through effective
models such as leadership models, organisational culture model and many more. Communication
system plays a vital role in the firm to exchange important information and cited firm is focusing
on utilizing it.

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