Workplace Culture Report

This report analyzes the workplace culture of Marks & Spencer, a British multinational retailer, examining its values, traditions, leadership, and behaviors. It explores the external environment's impact on the company's culture, including PEST and SWOT analysis. The report also discusses the application of management theories like Fayol's 14 principles and Taylor's scientific management to address cultural issues and enhance organizational performance.

Workplace Culture and its
Impact on Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
Introduction of organisation........................................................................................................3
Critical assessment of workplace culture of organisation..........................................................4
Critical evaluation of organisation and its environment.............................................................6
Critical evaluation of cultural and ethical behaviour exist in organisation.................................9
Application of relevant management theories and models.......................................................11
CONCLUSION .............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Workplace Culture is the concept that encompasses many distinct characteristics of
business. It is a combination of organisation's values, traditions, leadership, behaviours, attitudes,
interactions and beliefs that contributes to relational and emotional environment of workplace.
Culture of an organisation plays crucial role in extracting best out to their workforce and retain
them for longer period of time (Baker and Hesmondhalgh, 2013). It highly contributes in
increasing performance of its employees and leads it towards growth and success. In the present
assignment, chosen organisation is Marks & Spencer which is a renowned British multinational
retailer headquartered in London, United Kingdom. The report covers critical assessment of
workplace culture and environment in which firm operates. Apart from this, it also defines about
ethical and cultural behaviour exist within organisation as well as application of different
management or academic theories are discussed in this project.
TASK
Introduction of organisation
Marks & Spencer is a British multinational retailer which was established in year 1884,
i.e., around 134 years ago. Its headquarters is located in City of Westminster, London, United
Kingdom. It is a public limited company that listed on London Stock Exchange. The firm
specialises in home and luxury food products and clothing (Belbin, 2012). In year 2008,
company also starts to sell branded goods such as Kellogg's Corn Flakes. Currently, Marks &
Spencer has approximately 979 stores all across the United Kingdom including 615 outlets that
sell only food products. Around 85,000 employees are working in the company which helps in
offering its goods and services worldwide. The firm generates total revenue of £10.620 billion
and its operating income is £690.6 million in year 2017.
Critical assessment of workplace culture of organisation
Culture refers as the knowledge and characteristics of particular group of individuals
encompassing religion, language, social habits etc. Organisational culture depicts the underlying
assumptions, ways of interaction, values and beliefs that contributes in unique psychological and
social environment of a firm. As per the view point of Needle, (2014), culture of an organisation
includes philosophy, values, expectations and experiences that guides behaviour of employees
and is expressed in self image, interaction with outside world, inner workings and future

exceptions of staff member. Culture of firm is based on shared customs, beliefs, unwritten and
written rules and attitudes that have been evolved over time and considered valid. It also includes
systems, assumptions, language, symbols, values, norms, habits, beliefs and vision of an
organisation.
According to the view point of Collier and Esteban, (2014), each company has their own
culture which involves its beliefs and values that is shared by its workforce. It determines about
how administrators respond to opportunities and issues. But, culture of an organisation can
become excessively bureaucratic and static over time. Culture of an organisation should be
powerful because it shapes the way members see the world. Like many successful companies,
Marks & Spencer is victim of its success. In early days, the culture of firm was based on honesty,
less turnover, no frills attached and hard work. These values evolved in culture of company
which become paternalistic. Marks & Spencer is one of the largest organisation that offers
clothing and luxury and food products. Progress of firm is linked to its culture and kind of
policies and activities that leaders have executed over time. Human resource, leadership and
organisational culture of company are interrelated with each other. Marks & Spencer is a
globally integrated firm and any change takes place in one area leads to development or change
in other. Characteristics of these elements also influence each other as well as rest of the firm.
(Source: Core Values of Healthy Workplace, 2016)
Illustration 1: Core Values of Healthy Workplace

As per the view point of Cooper and Cartwright, (2011), the reason behind success of
Marks & Spencer is overall effectiveness of leaders who supports improvements in culture of
company. Corporate culture of firm contributes in making improvements in other areas like
human resource and production. Its culture supports high performance of manpower whose
impact is reflected on stable performance of company in retail sector.
Organisational culture of Marks & Spencer and its characteristics:
The company has a culture of performance that focuses on importance of employee
output. According to the view point of Fagenson, (2013), this culture of organisation emphasize
on significance of measures or criteria utilizes to determine needed results as well as its
adequacy. Performance culture of Marks & Spencer has some characteristics which are defined
below: Focus on performance: Organisational as well as individual performance. Efficiency: By using technology and other tools, efficient work is done.
 Focus on quality: Firm highly emphasize on quality of product in all areas.
Marks & Spencer's culture is highly emphasized on quality and performance and it is
evident in long history of firm. The business of enterprise has grown from small to global
powerhouse. This success of company is significantly based on its ability of culture to enhance
performance and high quality in work ethics of employees in order to maximize output of
business. For instance: Due to high quality, the products of Marks & Spencer are remain
competitive in market in spite of fierce competition (Furnham, 2012). This emphasize on quality
is a reflection of product effectiveness in mission statement of company. The firm also has
mastered efficiency by innovation and technology in its intrinsic business processes that involves
human resource development.
Leadership role in Marks & Spencer's organisational culture:
As per the view point of Guillén, (2014), success of company is partially based on its
leader's ability to support quality and performance culture. For instance: result based and market
based approaches are used by leader in order to manage business activities and drive high
performance. In market based management, market data is utilized for making changes in tactics.
Whereas, result based management emphasize on accomplishment of desired results. These
strategies support organisational performance and human resource productivity in consumer

goods business. Thus, managerial approaches and leadership of Marks & Spencer are the
components that maintains organisational culture of company.
Leadership, culture and human resource practices and structure:
As per the view point of Hargreaves, (2016), development of culture of Marks &
Spencer is reinforced by its leadership. It influence human resource practices and structures. By
constant monitoring and evaluation of leaders as well as their support and commitment, firm
reinforce its culture of quality and performance. For instance: Evaluation results are utilized for
directing human resource practices that reinforce Marks & Spencer's organisational culture of
quality and performance. Needs of employees are determined and integrated in enhancements of
HR programme. By this cultural reinforcement, firm instil quality as defining element of
productivity and performance.
Evaluation:
Organisational culture of Marks & Spencer is culture of performance (Kristof, 2013).
Different elements of business are emphasize on enhancing quality of products and financial
performance. By effective leadership, performance of individual is supported. Through
collective efforts of leaders from distinct departments, company ensures performance culture of
organisation. Therefore, this culture is manifested at organisational as well as individual levels in
Marks & Spencer business.
Recommendation:
For further improvements in culture of Marks & Spencer, it is recommended to enhance
policies to accommodate diversity. In global business, high diversity is inevitable and firm
should take benefit of it. Apart from this, company can also execute enhancement in information
technology. For instance: IT can support manpower in all areas by advanced tools for customer
relations, internal communication and market research (Lewis, 2010). These improvements can
assist firm Marks & Spencer in strengthen its performance culture.
Critical evaluation of organisation and its environment
Marks & Spencer is the leading retailer of United Kingdom which deals in clothing,
luxury home and food products. External environment scanning is related with those factors that
impacts on performance of business. Proper analysis of these factors helps company in
determining change in environment and planning regarding how to cope up with these changes.

SWOT and PEST analysis are the tools that helps manager of Marks & Spencer in identifying
those factors which impacts on performance and culture of business.
SWOT Analysis of Marks & Spencer:
Strengths:
Clear brand image: As per the view point of Lewis, (2016), firm positions itself as high
value product that target premium section. For synchronizing with their brand image, goods sold
by firm in clothing line are sophisticated, modern and stylish. It results in clear branding and
people are sure about what to expect from firm's store.
Innovations: Across many years of their operations, firm primarily has been in the race
because of spirit of innovation. This strength in company is also similar with communication and
creativity. Across all levels, people are encourage to think out of box and provide valuable ideas
(Lincoln and Kalleberg, 2012). This innovation spirit is the biggest strength of Marks &
Spencer.
Weaknesses:
Customer Satisfaction: Customers of company often exhibit decreased satisfaction level
and a lot of issues have been there regarding in store experience as well as return policy. This
results in increased brand switching and poor loyalty of customers.
Inability to penetrate foreign market: Presence of Marks & Spencer is primarily in
United States, Europe and United Kingdom. Though firm has opened stores in Middle East and
Asia, they have not been successful in winning customers initially due to their Western design
instead of traditional (Lord and Maher, 2010).
Opportunities:
New segments: In current scenario, fashion is identified as an evolving business that
provides an opportunity to Marks & Spencer. New segments are come up on regular basis in this
sector. In Asia, there is high demand of traditional and ethnic were. So, firm requires to
capitalize on it as it is the area which helps in gaining customer loyalty.
Threat:
Competition: High competition in both retail and clothing market is the biggest threat for
company as it may result in declining profits. Main competitors of Marks & Spencer includes
Tommy Hilfiger, United Colours of Benetton, Zara, Tesco etc.
Pest Analysis of Marks & Spencer:

PEST is an analytical tool which help Mark & Spencer in determining the external factors
that may affect the functioning and business operations of an organisation. These affects may be
negative or positive which can be better understood by following point:
Political:- These factors includes policies, trade agreements etc. Marks & Spencer have
been favoured by free trade agreement of EC and have lead to decline sourcing cost. Company is
well known for its plan related with Corporate social responsibility initiative but due to lack of
clarity of United Kingdom government regarding energy efficiency scheme, initiatives of Marks
& Spencer is negatively impact by it (Noe, and et. al., 2011).
Economical:- The economical factors includes inflation rate, taxation policies, for-
exchange rate, trade policies and various laws related to business, avoidance of which may have
a direct impact over the survival of company. Brexit have an huge impact over the economy and
financial health of the individuals which lead them to approach small retailers for fulfilling their
needs. This in turn forces the company to reduce price which affected the growth and sale of
Mark & Spencer.
Social :- This includes factors such as taste, preferences, social values, norms of the
society in which the company operates which has a great influence over the buying habit and
choices of customers. As Mark & Spence offer their high quality product at premium price,
hence its customer base is limited to the people with high income level which affects the sales
and profitability of company. So, company must provide product at affordable price in order to
capture larger market share and to generate maximum profit (Posner, Kouzes and Schmidt,
2011).
Technological:- This includes factors related to technological advancement, innovation
in products & services, technology used by competitors and the obsolete technology. Mark &
Spencer perform its operations manually and is also not uses online platform to offer their
product and services which have an negative impact over the sales and profitability of company.
M&S facing huge competition from other retailer that provide online or home delivery services
to their customers.
Above mentioned are all the factors of external environment that impacts performance as
well as culture of Marks & Spencer in negative and positive manner. Impact of technology on
business is very high as it assists in improving processes and operations of firm. It can help firm

in improving internal communication as well as also assists in providing proper information to
customers regarding their purchases.
Recommendations:
From the analysis of above mentioned external factors, it is recommended that Marks &
Spencer can frame new policy regarding CSR. Increased engagement of firm in activities related
to corporate social responsibility can help in improving image in society. Apart from this,
implementation of high end technology in business activities and processes can also help firm in
offering high quality of goods and services and gaining more loyalty of customers.
Critical evaluation of cultural and ethical behaviour exist in organisation
Culture means behaviour which has to be followed by person (Rouiller, and Goldstein,
2013). So in context of corporate world, there is some social behaviour which has to followed by
managers of Marks and Spencer to make good environment within organisation. Marks and
Spencer deals in various parts of country so they have to make policies according to culture of
country. Marks and Spencer has good image in market, so it is essential to select approaches
which are effective and significant for maintaining good image in industry. It is essential to
select approaches which are effective and significant for creating good environment and it is
essential to make policies which are effective for making changes in working style and activities
are performed according to market trends.
As there is government control on business operations, so it is essential to select approach
which reduces chances of political party interference. In case there is requirement of some
expertise person, then it must be considered. To create good environment, it is essential to
motivate workers and policies has to framed in ethical and effective manner (Sassen, 2016).
Marks and Spencer has top frame policies which favours integrity, respect, responsibility, etc.
and hence governance policies are effective for working in ethical manner. Policies which favour
cultural and ethical behaviour are as under-
Integrity- There are many departments in Marks and Spencer working in accordance to
achieve goals and target. To achieve good profits there is requirement of synchronization in their
activities. Integrity means addition of all business activities concern by various departments in
Marks and Spencer. This helps to perform business operations with more effectiveness.
Managers of Marks and Spencer gives emphasise on working with integrity and actions can be

performed in accordance to market trends. Long term targets can be achieved with the help of
integrity and quality of products gets improved because of it.
Standards of behaviour- In Marks and Spencer there are some standards within which
manager has to work, such as no use of abusive language, punctuality, etc. It is essential to select
approach which are effective and signifiant for making employees respectful at work place. As
there are various workers in Marks and Spencer so they must be trained related to working style
(Scandura and Lankau, 2011). There are some benchmarks which has to be followed by
managers so quality of product can be improved. As Marks and Spencer is big organisation, so
there must be some standards such as up to date product quality, CSR activities, etc. has to be
followed by employees too. This helps Marks and Spencer to follow ethical code and conduct.
Team working- Team means group of two or more people working to achieve same task.
This is the concept which is favoured by Marks and Spencer and actions can be done according
to market trends. When employees are working in team, then there are less possibilities of
unethical behaviour and quality of product and services gets improved. As managers of Marks
and Spencer are emphasising on team working so there is fear in mind of workers related to cross
check and they will not perform any wrong deed.
Apart from policies there are some procedures also which helps to work in ethical
manner. Marks and Spencer has to select approach which are effective for making policies in
accordance to market trends. It is responsibility of manager to select approach with which they
can make changes in operations and activities can be performed operations in effectively.
Procedures for ethical and cultural behaviour are-
Setting out aspirations- To make employees motivated it is essential to set benchmark.
There are some rewards to good performers, this is best motivator for employees (Whoqol
Group, 2012). As Marks and Spencer operates in different parts so it is essential to analyse
performance and accordingly actions has to be made. This helps to make good culture and
environment in organisation.
Compliance, Monitoring and Reporting- There are some ethics which have to be framed
after considering all aspects. Not only merely monitoring is effective, there must be some aspects
which are effective for analysing market and actions has to be analysed by top level managers.
There must be appropriate reporting system so there is proper working and activities are effective

for growth of Marks and Spencer. This technique is effective because there is fear in mind of
employees and hence they perform business operations in ethical manner.
Continuous improvement- Continuous improvement helps association to make changes
in working style. There are many competitors of Marks and Spencer, so there is requirement of
training. With learning program it is easy to make employees learn about new techniques, hence
they are able to work as per market trends. Marks and Spencer focus on quality of their product
and services, so this is effective for making activities ethical.
There are some legal laws which has to be considered by managers of Marks and Spencer
in order to get positive impact on business operations (Whyte and Nocera, 2014). Some of the
laws which are followed by managers of Marks and Spencer are as under-
Consumer Protection- As per this law Marks and Spencer is working in order to give
policies which are effective and significant for providing up to the mark quality product. This act
emphasise managers of Marks and Spencer to improve quality of product. There must not be any
harmful substance or dangerous for health has to be avoided. This act helps to perform business
operations in ethical manner.
Health and Safety at Work Act 1974- As there are many workers in Marks and Spencer,
so it is essential to select approach which are safe for workers at work place. In case of any
injury to workers, then Marks and Spencer is liable under this act. E.g. there must be proper
resting area, ventilation, proper basic facilities, etc. have to be considered.
As per my view I truly believe in performing operations in ethical manner. As there are
some aspects such as performance appraisal, motivation and leadership by managers which are
effective for growth of organisation. I perform operations in ethical manner and emphasise that
other peer members also perform activities in efficient way. At my work place, I favour in
working in team work, this helps me to improve skills (Baker and Hesmondhalgh, 2013). As
there are different rules and regulations within which I have to perform operations. I work
according to my roles and responsibilities. I am on time in meeting and other official gatherings.
I perform my assignment within time. Being supervisor in organisation I respect each and every
subordinates and peer members. This helps to create good and ethical environment in
association. I do not use abusive language. When some new joinees enters in organisation, then I
provide appropriate and proper knowledge related to organisational culture. I legally alter
operations because of change in rules and regulations by governmental parties.

Conclusion:
Firm perform operations under proper ethical and cultural manner. This helps to make
policies according to external environment. As Marks and Spencer has good image in
environment, so it is essential to make policies which are effective and significant for growth of
association. When business activities are performed in order to satisfy customers, this can be
achieved with the help of ethical code of conduct. Legal acts are essential to be followed as it
helps to make organisational activities in effective and appropriate way. Top level managers of
Marks and Spencer emphasise on continuous improvement, so business operations are performed
under ethical manner.
As in my organisation there was strictness related to time and there is proper dress code
which has to be followed by staff. This is sometimes bound some and affects working style. But
now managers are lenient related to time of working. Now main aim is to perform operations
effectively irrespective of dress code and time. According to my view current policy is effective
as there is positive results at work place. Now managers can also give emphasise on core
activities for growth of organisation.
Application of relevant management theories and models
Management theory defines the way to mange business to accomplish organisational
objective in a most efficient manner and also help manager in motivating employees to improve
their standard of performance (Belbin, 2012). Classical management theory put emphasis on
organisational structure and determine what is good for company in order to improve their
efficiency and finally converting planning into action. By application of some models and
theories, cultural issues within Marks & Spencer can be resolved and performance of firm can be
improved. Following are the management theories given by early writers of management:
Heneri Fayol:- Management theory given by Heneri Fayol explains how management
should interact and manage their personnel. This theory includes 14 principles of management
that a business most follows in order to perform well in market place (Management Theories,
2017). Apart from this Fayol also explains five basic ways in which Mark & Spencer can interact
with their employees in order to control and plan production, which are as follows:- Planning:- According to fayol, management must formulate plan related to the activities
to be performed within the organisation in order to bring efficiency in operations. By

planning M&S can eliminate the chance of delay and confusion among employees by
delegating duties to them (Collier and Esteban, 2007). Organizing:- Under this Fayol explains that a manager must ensure that all the resources
required for performing operations must be available at the time of production process. Commanding:- According to Fayol, a manager must encourage the employees to perform
their task effectively and direct their actions in order to improve their efficiency and to
eliminate the chance of error .(Cooper and Cartwright, 2011). Coordinating:- For the proper functioning of business it is very essential that
management must encourage their employees to work together in cooperative manner
which in turn will minimizes the wastage of time and operational cost.
 Controlling:- This is the final management activity which suggest manager to ensure that
the personnels must follow the orders given by management and perform operations
toward accomplishment of organisational goal.
Management theory of Heneri Fayol help Mark & Spencer in guiding and managing their
workforce effectively which in turn will help in improving the organisational performance.

(Source: Five Functions of Management by Fayol, 2017)
FW Taylor:- Frederick Taylor proposed a theory of scientific management which is also
known as classical management theory. In this theory Taylor suggested that instead of scolding
and criticising employees over their minor mistake, manager must reward their workers for
improving their performance (Fagenson, 2013). This theory explains that the principles objective
of management must be to achieve maximum prosperity for the company as well as its
employees. Frederick Taylor suggest four principle in his management theory which are as
follows: Break down of assignment into subtasks:- Taylor suggest that instead of assigning the
whole assignment to one individual manger must divide it into subtasks. This will help in
performing the process in more organized and efficient manner.
Illustration 2: Five Functions of Management by Fayol

 Delegate responsibilities and train workers:- Manager must evaluate the efficiency of
their personnel and then assign them subtasks. They must also provide training to their
employees in order to enhance their performance. Monitor performance:- Manager must monitor the performance of their employees to
ensure that their subordinates must perform operations as per the pre-specified standards
and also provide guidelines whenever needed (Furnham, 2012) .
 Allocate work between manager and employees:- This principle suggest that personnels
at each level within an organisation must be assigned responsibilities according to their
role.
Scientific theory of Frederick Taylor help Mark & Spencer in motivating their
employees to perform better as it put more emphases over reward the employees on their better
performance (Guillén, 2014). This also help M&S in maximizing their revenue and sale by
improving the efficiency of their workforces using reward as their motivation factor to influence
employees to perform effectively.
CONCLUSION
As per the above mentioned report, it has been concluded that culture of an organisation
is very essential aspect on which growth and success of firm rely. Strong culture of an
organisation helps its manpower in performing well and increasing productivity and performance
of company. Ethical practices must be adopted by firm in its culture as it assist in creating its
good image in market. There are various factors which exist in external environment of firm that
impacts culture and performance of organisation. Application of various management theories
helps company in improving efficiency of manpower and maximizing firm's revenue.

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