Workplace Culture and its Impact on Organisational Efficiency

This document discusses the importance of workplace culture in driving organisational efficiency and success. It explores the different types of culture and their impact on employee retention and performance. The document also examines the influence of external factors such as political, economic, social, technological, environmental, and legal factors on organisational culture and performance. Case study of Marks and Spencer is used to illustrate the concepts.

WORKPLACE CULTURE AND ITS IMPACT ON
ORGANISATIONAL EFFICIENCY

EXECUTIVE SUMMARY
Organisational culture plays significant role in success of company. It has great
impact over operational efficiency of firm. Task culture of M&S supports the firm in
retaining staff and also helps in gaining success in market. Ethical practices are essential for
sustainable development of business unit. Treating employees well and maintaining strong
supplier relationship help the business in sustaining in market for longer duration. Political,
social factors have great impact over business performance but great leadership can help in
managing these aspects well.

Contents
EXECUTIVE SUMMARY........................................................................................................2
INTRODUCTION......................................................................................................................3
TASK.........................................................................................................................................3
Workplace culture of company..............................................................................................3
Environmental scanning and its impact on culture and performance....................................6
Personal culture, ethical standards and its impact over corporate objectives........................6
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INTRODUCTION
Workplace culture is the personality of organisation that creates its image in market.
Values, believes behaviour of company reflect its way of working. Positive culture drives
engagement and also creates happiness at workplace (Alvesson and Sveningsson, 2015).
Leaders always work to creates healthy culture where talent can work better and can prove
their capabilities. This culture aids in enhancing operational efficiency and support business
in gaining success in market. Present study is based on Marks and Spencer that is the biggest
retail firm globally. It provides amazing quality cloths, fashionable trendy cloths that satisfy
needs pf consumers. Its main focus on satisfying its buyers by offering them value for money.
It takes care of its valuable consumers and provides amazing discounts to them. Present study
will critically evaluate workplace culture of M&S. It will apply handy’s culture model and
will describe the extent to which culture have impact on organisational success. Furthermore,
study will conduct Pestle analyses of business to show how these factors impact on culture
and its performance as well. In addition, report will describe the extent to which ethical
standards and culture help in fulfilling corporate responsibility of firm and support in its
sustainable development.
TASK
Workplace culture of company
Organisational culture can be described as system or values of firms that indicates
behaviour with employees in the organisation. These values and assumptions of business unit
guide behaviour of workers in the company (Alvesson, 2013). This is very essential for
organisation that to have great culture where all the staff members can feel better and can
perform their duties well. Organisational culture works as base that shape behaviour of
employees in firm. Strong culture aids in retaining staff members and raising their
performance as well.
Marks and Spencer is the leading firm that has developed strong reputation in the
market. It is popular for its best quality cloths and services (Ariga, Purba and Nasution,
2020). Company is operating well in retail sector and has branches across the world.
Enterprise has branches in 1463 locations and in the year 2019 its revenues was 10377.3
million. Operating income of M&S was 601.0 million in the same year. Company has

employed more than 80000 employees globally and these workers are putting hard efforts to
serve consumers well. It offers all kinds of retail items to wide range of consumers. Its cloths
are very famous and people like to buy its cloths as these are trendy and fashionable.
Enterprise spend amount in marketing so that it can make people aware about its services and
features. These marketing efforts of business unit help organisation in gaining success in
market. M&S spend huge amount in high profile media campaigns that supports organisation
in generating huge revenues and gaining competitive advantage as well.
Organisational culture plays significant role in success of business unit, each entity
plans to develop or improve its culture so that it can gain trust of its employees (Cremer and
Cremer, 2020). This aids in retaining talent in company for longer duration. Handy has given
theoretical approach to reflect the culture and its importance to business. This model explains
four different kinds of culture: task, role, power, person.
Handy’s power culture explains that power is in the hand of few people only and
these powerful personalities are responsible to take each decision in company. Rules and
regulations are most important part of power culture. Employee’s performance is measured
on what they have achieved in business unit. Top management who has power takes quick
decisions without involving employees in decision making process (Erichsen and Reynolds,
2020). This is considered as powerful culture as it helps in making strong control over
workers and also aids in minimising their casual attitude in firm. Performance of each person
is closely monitored that aids in raising workplace efficiency of employees. It aids also
beneficial in taking quick decision. But this kind of culture makes the person feel over burden
and individual feel demotivated. This kind of culture enhances negativity and this becomes
the reason of staff turnover in organisation (Mehra, 2020).
Role culture is another kind of culture which is completely based on rules. Each
person is well aware with their role in organisation hence they perform it accordingly. Clarity
in roles makes them relax and people finish their work on time. Person who is on the high
position gets power to control over workers and take necessary decision. Role of individual
decides the power in company. There is long chain of command. Higher authorities involve
employees in decision making process, take their suggestions that is the reason that decision
making process is quite slow in this kind of culture. This is bureaucratic culture where higher
position person holds more power (Pathak, 2020).

Task culture is another kind of culture that is mainly followed by M&S. Here
management forms a team of people those who have same abilities. All these people work in
a single team and complete the given task,. Specific problems such as quality, production,
customer services are resolved by this group of people. Task is considered as most essential
aspect of this kind of culture. Managers of M&S give specific task to the person and these
employees complete the allotted work within specified deadline (Ross, Exposito and
Kennedy, 2020). This develops confidence of people because they get right to take decision
to finish task according to them. Great leadership and strong supervision help people in
getting positive outcome in the business unit. It encourages creativity because team members
share their innovative ideas through which task can be completed on time.
Person culture is the fourth kind of culture in handy culture model. In this culture
persons work individually for them only. They think that they are unique and important to the
business unit. They do not care about company’s goal. Company gives them training and allot
this work (Taheri, Asarian and Shahhosseini, 2020). They work individually and do not care
about rest team members. This is not that much effective culture because it increases
miscommunication and enterprise many time fail to take right decision on time.
Task culture of Marks and Spencer is very effective as it aids the firm in achieving its
goal successfully and solving critical business problems timely. Individual’s works with
common interest to fulfil organisational goal and them all have expertise in doing their work
with quality (Wei and et.al., 2020). Team has strong bonding and commitment towards the
firm. They all work together so that mistakes can be minimised and enterprise can perform its
job well. That is the reason that team members produce quality cloths for consumers and
serve them, well. There is strong customer service team who continuously work to resolve
quarries of people soon. By this way satisfaction level of consumers get increased and entity
become able to make its consumers loyal towards the brand (Management: perspective and
practice, 2020).
Marks and Spencer is facing the issue of high staff turnover now a days. Great
leadership plays significant role in resolving this problem. As company needs to improve its
leadership style so that it can develop bonding with its employees and can make them loyal
towards the brand (Xu and Chopik, 2020). If there is communication gap between leaders and
workers then it may create problem in implementing task effectively. Good leaders involve
employees in decision making process and also they take care of their needs. Leader of M&S

should adopt democratic leadership style where individual involve all level of staff members
in decision making process. Leader must ask ideas of these people so that innovative ideas
can be found that may help in improving culture. By this way company can be able to gain
trust of its employees that will help in enhancing performance of workers and will support in
retaining them in business for longer duration (Erichsen and Reynolds, 2020). Apart from
this, providing rewards to works on the bases of performance of each members is another
great way to reduce high staff turnover issue. Managers of Marks and Spencer should
measure performance of each person and have to give them rewards and recognition in front
of all employees. This can develop confidence of person and can make them loyal towards
the brand. This is the kind of way through which entity can resolve its staff turnover issue.
Employees need monetary support form Company or want to get promotion or recognition in
business unit. If this need is fulfilled by M&S then it will be able to retain its talent tin
company for longer duration. In the absence of rewards employee feel demotivated and think
to leave their job. But if they are getting timely appraisal for their hard work then it can make
them positive towards management and individual will provide support to company in every
critical situation (Mehra, 2020).
In order to improve culture of M&S , managers should enhance communication at
workplace. This may help in creating friendly workplace environment where there is no stress
of work. Apart from this, training must be given to each members so that individual can
understand their job and can perform it well. By this way person can be able to finish their
work on time and with efficiency. By this way individual will feel happy and satisfied that
would create great culture. When all employees are happy in business unit then company will
be able to perform well (Management: perspective and practice, 2020).
Environmental scanning and its impact on culture and performance
There are various external environmental elements that will majorly affect the culture
and performances of Marks and Spencer organization. These external factors directly
influence the company’s market share, new product launch, number of customers,
profitability, employee turnover etc. The external factors include political factors, economic,
social, technological, environmental and legal factors.
Political factors
The political factor of the PESTEL analysis involves the many government policies,
actions and regulations that may directly affects the business of company. This factor deeply

influences the whole functions and performances of Marks & Spencer. The government plays
an important role in the retail industries and they also implemented many policies and rules
for the food products, clothing’s and home Products Company. Many political elements such
as trade regulations, policies and taxes directly or indirectly influence the business
performances (Santalova and et.al., 2017). The several government taxes can impact the
profitability of Marks & Spencer. The government policies and rules regarding the launching
of new products or services can also build various barriers in front of organizations. In the
present scenario, the operational activities of business are deeply regulated. The high
regulations develop many troubles for these brands. Many policies that are related to the
product safety may influence the number of customers and sales of the company. A new trade
agreement in the country favourably affects the performance of Marks & Spencer. NAFTA is
the best trade agreement that plays a major role to increase the performances of this type of
company. The operational activities and functions of the retail industries are immensely
affected the related political Factors.
Economic factors
The many economic factors can affect the company’s operations because all the
companies in the world are directly or indirectly connected with the economic environment.
When the organization runs their business in the international environment then economical
factors plays a crucial role. Marks & Spencer is also affected by the various economical
factors. The performances of the Marks & Spencer not only influence from the local
economic conditions but also from the world economy (Pepe, de Sousa and Gonçalves.,
2017). The great economic condition of the British is very advantageous for the Marks &
Spencer and it also helps to develop a effective culture in the organization. The economic
force of the country also diversely affects the financial performances of company.
Social factors
This factor is the most vital factor of the PESTEL analysis. Social factors has various
eliminates that largely affects the performances of any organization. It also influences the
culture of the company. It is very essential for the Marks & Spencer to consider all the social
factors to analysis their operations and performances. Social factors include changes in
customer’s choices, changing lifestyle, social trends, people consciousness regarding self-
care etc. All these factors directly vary the profitability and benefits of the company
(Eisenberg., 2019). According to the present situations, the customer’s choices and trends are

changing very quickly and this can affect the company’s turnover and whole sales. It also
increases or decreases the market share of the company.
Technological factors
Technology advancement plays an integral role in the business development.
Technology can affect the whole activities of the organization. Marks & Spencer also
affected by the various technologies in the market. The technology uses increasing in the
companies day by day. Effective technology helps the Marks & Spencer to enlarge and
improve their brand image. The advance technology enhances the business performance and
productivity. It also plays a major role in the effective advertising and marketing strategies.
Technology is a main part for Marks & Spencer because it assists them to conduct their
process in a very fast way. it also helps the Marks & Spencer to improve their customer’s
services and satisfy them with a great amenities. Company can also increase their delivery
services and facilities with the uses of effective technology. Technology also inspires the
employees to work together with the company who has high technology system (Santalova
and et.al., 2017). With the assistance of technology, Marks & Spencer can launch their new
products and services in a very efficient manner.
Environmental factor
The economic outlook is very uncertain and this is more likely affects in your
organizations. This company provide a lower mark-up price thereby allowing marks and
Spencer to retain premium status. Different markets have different environmental standards
which can impact the profitability of organizations in that market. Company entering new
market or starting new business in existing market the firm should carefully evaluate the
environmental standards that are required to operate in this market. Government takes
necessary action for the environmental protection (Steers and Sánchez‐Runde., 2017). Marks
& Spencer have to change the way thaey market themselves so that they can try and stay
ahead of the recession. Some of the environmental factor include such as law regulations
environment pollution and attitude towards and support for renewable energy. Environmental
friendly products are quite popular with the company and environmental sustainability is
important.
Legal factor

Laws and regulations have a high impact on the company. Marks and Spencer has been
involved in multiple legal disputes. Legislations are always changing and many issue
regarding for this company. This company objectives that need to be changed and new
training and also ongoing development. The legal framework is not robust enough to protect
the intellectual property rights of organizations (Kaplan and Koepp., 2018). Some of the legal
factor include anti-trust law in retail company and overall in the country, data protection,
copyrights, patents law etc. the company legal environment is favourable than operate
profitability and safely.
Personal culture, ethical standards and its impact over corporate objectives
Organisational personal culture can be described as values and beliefs of company.
Each company manage its employees according to its set believes and assumptions. On the
bases of these assumptions company’s success are measured (The Importance of Ethics in
Organizations, 2020). Each firm treats its employees as assets so that these valuable assets
retain in company for longer duration. Great culture always encourage sustainable
development of company and also supports in gaining competitive advantage as well. Marks
and Spencer aims to raise its profit and want to become most popular global brand in retail
sector. For that it is targeting its consumers and providing them customer centric products
and services so that satisfaction level of consumers can be raised. In order to enhance
satisfaction level of consumers it is essential for business that to have talented people and
great culture where all employees can perform their duties well (Wei and et.al., 2020).
Culture matters a lot in the success and sustainable development of company. If there is great
culture then enterprise can retain talent and can raise workplace productivity as well. Great
culture enhances satisfaction level of staff members and also support in generating best
output.
Ethics are most essential thing that must be followed by business unit. If enterprise is
unable to meet ethical standards then it can be considered as corporate misconduct. And
companies those which are involved in misconduct are unable to sustain in market for longer
duration. Marks and Spencer is the leading popular retail firm that is not involved into
unethical practices (Alvesson, 2013). It always keeps right attitude towards its employees and
consumers both. It uses correct language and behaviour with all its stakeholders. It takes care
of their their needs and accordingly conduct its business practices. Management of M&S
always focus on building strong relationships hence always maintain transparency among all
stakeholders. This ethical; practice help in raising trust of employees and others and they like

to work with company for longer duration. If talented people are here then enterprise can do
well and can meet its organisational goal successfully. If the person is not following ethics
and if individual is engaged in any kind of unethical practice then management takes strict
against the employees (Ariga, Purba and Nasution, 2020).
Organisational ethics are the practices of company and response of firm in every
external and internal stimulus. There is strong relationship between culture and ethics. Great
ethical values support M&S in retaining talented employees in firm for longer duration.
M&S always take care of its suppliers, customers, employees and make interaction with them
by considering ethical; standards. It always ensures to have strong bonding with suppliers. It
maintain transparency and make payment timely. This aids business in getting quality
material on time (Cremer and Cremer, 2020). Marks and Spencer always develop integrity
so that employees are associated with firm morally and they fulfil their moral responsibilities
as well. This integrity aids M&S in enhancing its level of performance and fulfilling its
organisational goal as well.
Enterprise buy material from the good suppliers, they offers them good raw material
and by using these material entity produce great quality cloths and other retail items for
consumers. It ensures that consumers always get value for money hence it take care of
charging right amount as per the quality of goods and services (Alvesson, 2013). That is the
reason that number of customers of Marks and Spencer are very high and they are loyal
towards the organisation. Company is fulfilling its responsibility towards society,
environment and economy. Every year M&S pay tax to government that is the biggest
contribution to economy development of nation. It hires lots of employees every year and
provides them development opportunity as well. This employment helps economy in
improving per capita income of people. Hence entity always takes care of talent and provides
them satisfactory rewards so that each person can meet its personal needs easily. Apart from
this, M&S is engaged in recycling process, it uses its resources in most effective manner so
that wastage can be minimised (Alvesson and Sveningsson, 2015). It also reuses the waste
material so that firm can contribute well to environment. This ethical practice of business
supports the firm in minimising its operational cost as well and also aids in enhancing its
production capability. By fulfilling its duty firm is raising its brand name and this attracts
more consumers towards the firm. By this way sales and profit of company also get increased
which help in meeting organisational objective successfully.

M&S has build strong corporate culture where it takes care of its employees and also
work to retain them in business unit for longer duration. If there is poor culture then it can
decrease confidence of worker and they may leave their job soon but if culture is good then it
encourages staff members and they work so hard to meet organisational goal (The
Importance of Ethics in Organizations, 2020). Enterprise give equal opportunity to all its
workers ad also there is no discrimination on the bases of race, age or gender. Each person’s
performance is monitored and measured by their working efficiency only. No matters
whether person is girl or male if person has capability then get promotional opportunities in
Marks and Spencer (Erichsen and Reynolds, 2020). That is why employees are the
organisation is high satisfied and they work according to company’s value and believes. Firm
always give respect to its staff members and take care of their cultural values. As firm has
hired people from different culture but it always ensures that each members get equal respect
and opportunity in entity. To manage cross culture people M&S organises training sessions
and also arrange formal informal meetings with them (The Importance of Ethics in
Organizations, 2020). This aids in developing bonding among all culture employees. By this
way they communication with each other easily and also give respect to culture of other
people. This is the way that makes employees positive towards the brand and they work with
ethical policies. This approach of organisation supports in improving productivity of firm and
in this manner it fulfils its corporate responsibility in effective manner. If it encourages
discrimination then it will not be able to gain trust of workers. This may enhances conflicts at
workplace and people will not work well in business unit. Hence giving values to person
culture and encouraging their believes support organisation in making its employees satisfied.
M&S has separate marketing department who is responsible for promoting the brand.
It always gives honest advertisement without hiding any thing from consumers. These ethical
marketing practices raise confidence among consumers and boost sales as well. Company has
great customer service policies and give training to employees so that each consumer get
immediate solution for their problem (Ross, Exposito and Kennedy, 2020). Firm directs its
staff members about dealing with consumers and workers also treats its consumers
accordingly. This aids the firm in generating more revenues and meeting its organisational
goal successfully.
M&S show its annual report publically every year just to show its potential. It never
hides anything from its stakeholders. In this manner it gets public opinion as well. It follows
laws carefully. Each employee is treated according to employment norms of country and

trading is also done according to trade law of nation. Hence it supports organisation in
reducing frivolous lawsuits that may affect its sustainability (Taheri, Asarian and
Shahhosseini, 2020). Fair practices and lawful act always encourage the business unit in
gaining competitive advantage and sustain in market for longer duration.
CONCLUSION
From the above study it can be concluded that culture of company helps in treating its
employees well and raising confidence among them. If people are happy in business then
they work hard to make its company successful. Enterprise needs to improve its leadership so
that it can manage its staff members well . Ethical practices and great culture is helpful; tools
in gaining competitive advantage and sustaining in market for longer duration.

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