Impact of Legal Status on Organisational Governance | Desklib

Unit 501 Principles of
Management and Leadership
in an Organisational Context

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Impact of legal status on the governance of an organisation .....................................................3
Purpose of mission and vision of Marks and Spencer ...............................................................4
Impact of organisational structure on management roles ..........................................................5
Discuss the impact of organisational values and ethics on management decision making ........7
TASK 2 ...........................................................................................................................................7
Relationship between management and leadership ....................................................................7
How management and leadership styles are adapted in different situations ..............................9
TASK 3 ...........................................................................................................................................9
Knowledge and skills required for management and leadership role ........................................9
Factors that impact on selection of communication techniques needed for effective
management .............................................................................................................................11
Behaviours required to be effective in a management and leadership role ..............................11
Develop an approach for building a culture of mutual trust, respect and support with
individuals as well as teams .....................................................................................................12
CONCLUSION..............................................................................................................................13
References......................................................................................................................................14

INTRODUCTION
Leadership and management are both important factors that affects the operations and
activities within a company. A good and effective leadership is needed for managing all the
employees working in the organisation. For operating a successful business it in needed that
managers as well leaders have worked effectively for attaining organisational targets and goals.
The company considered in this company is Marks and Spencer which is a retail sector
company. The headquarters of this company are situated in London, United Kingdom. It was
founded by Michael Marks and Thomas Spencer in year 1884. This company includes impact of
legal status on governance of the company. It includes vision, mission and purpose of the
company. There is explanation about relationship between management and leadership and
impact of value and culture on leadership and management (Birasnav, 2014). There is discussion
on Knowledge and skills required for management and leadership role and factors that affect
communication techniques required for effective management.
TASK 1
Impact of legal status on the governance of an organisation
Organisations have the responsibility for managing and controlling various functions and
operations which are to be performed within given time. There are basically three types of
organisations present within market such as public, private and voluntary (Bolden, 2016). All
these have their own objective and aim. The main thing that is common among all the
organisations is that they want to earn profit and money. The legal structure of all these
organisations is mentioned below -
Private organisation
This type of organisation is one in which main objective of running company is to make
money and earn profits. These can be owned by single person, group of people, partnership,
corporation and agency. The legal structure of private organisation is mentioned below - Sole traders – These are defined as those organisations which have to manage business
operations on their own. While running business, profit or loss whatever the result is, the
consequences are faced by owner. The main owner of company focuses on different
aspects like operations, legal and financial while running business.

 Partnership – This is type of organisation in which less funds are needed for running
business. There are two or more partners who work together for running business in
partnership (Boyatzis, 2014). Example of private organisation is Lewis Partnership. Public limited companies – These organisations can sell their shares freely within the
marketplace. For example: Tesco and Sainsbury's.
 Private limited companies – These organisations are owned by single owner but they
cannot sell the shares within market, e.g. - Airdri.
Public organisation
These organisations are those which deals in products or services which are necessities in
life of people (Bush, and Glover, 2014). This includes gas, oil, steel, coal, thermal energy,
fertilisers, etc. Main objective of these organisations is to provide basic necessities to people.
Lawful structure of the organisation is described below - Central government department – These companies are managed by central government.
 Local authorities – Such organisations are operated by local or state government.
Voluntary organisation
These organisations are started for providing free service to poor people. The legal
structure of voluntary organisation is mentioned below - Trust- In context of this, some specific trustees are there who provide funds and money
for running the voluntary organisation. s
 Others- Community, Royal charter bodies, etc.
Marks and Spencer is a private organisation that is providing products and services in
more than one country. He legal structure followed by this company is a public limited company
which is owned by Michael marks and Thomas Spencer.
Purpose of mission and vision of Marks and Spencer
Private Limited:
The private owned organisations are those who have the aim of increasing profits and
money earned. They also have the objective of performing well within market and develop
goodwill and reputation among market. There is collaboration between top level and middle
level managers for running business effectively. Marks and Spencer is a retail company that is
dealing in clothes, apparels, super market, luxurious home products, etc. These products are
provided in different countries and profit is earned. The global presence of this company helps in