Management, People, Organization: Aldi and Gore Case Study Analysis

This case study provides an in-depth analysis of Aldi and Gore, examining their management styles, organizational structures, people management strategies, and leadership approaches. For Aldi, the analysis highlights issues related to its flat organizational structure, power-centric culture, charismatic leadership, and recruitment challenges, further exploring training deficiencies, reward systems, and employee relations from a Marxist perspective. In contrast, the Gore analysis focuses on its lattice structure, role-based culture, fellowship-oriented leadership, and unique people management practices, including recruitment, training emphasizing social learning, performance rewards, and employee relations aimed at fostering positive engagement. The study identifies both the merits and limitations of the concepts and theories applied in each organization, offering a comparative view of their effectiveness. Desklib provides a platform for students to access similar solved assignments and past papers for further study.

Management People and Organization

Q1
Area: Aldi Academic
Concepts/Theories
Issues in the case studies Merits / Limits of Concept Autonomy/Control
Org Structure The organization has a
flat structure and it has
been analysed through the
concept that it has only
few layer of management
and managers have a
wide span of control
As per the case study, it
has been analysed that
all employees have to
report to manager due to
flat structure and this in
turn causes confusion
within their roles. That
is why, it is considered
as an issue for a
company.
The biggest advantage of using this structure is
such that it elevates the employee’s level of
responsibility. Along with this, it removes excess
layer of management and improve coordination
(DiMaggio, 2019). On the other side, with this
structure, employees become confused in their
team roles and this affect the overall performance
of a company
This is employee
autonomy because
they have to perform
the work as per
instructed.
Org Culture The culture followed by
Aldi is related to power
under Handy culture
theory where power is in
one hand (Mouzelis,
2017). Also, subordinate
do not have any option
rather than follow the
same,
The issue identified
within a case study
pertaining to culture is
such that company’s
employees are not
satisfied with the
offering by company
and this in turn lead to
cause negative impact
The advantage of using a Handy Culture theory is
such that it helps to determine how employee are
retained. Also, it elevated to the productivity of a
company and this in turn help to meet the define
objectives. On the other side, the disadvantage of
using power culture within a workplace is such that
it is unhealthy focus on profit and this in turn cause
negative impact over the business performance.
This is employee
autonomy because
employees must
comply with the
offering environment
and they have to
communicate the
same to their
respective

over their performance. supervisors.
Org Leadership The leader of Aldi uses
Charisma as a leadership
style in which they
involve employees so that
they communicate with
the employees in order to
motivate them so that
they generate better
outcomes. This in turn
causes positive impact
over the business
The leader of a company
do not solve the issues
faced by employees and
even does not provide
sick leaves and other
benefits that affect
workers performance.
Also, it can be stated
that they provide low
average salary and does
not resolve the query.
The merit of using the leadership theory is such
that leaders motivate and inspire the workforce so
that they start performing in a team work that
create a positive sense of change. On the other
side, it has been critically evaluated that it is
dependent upon the energy level of leaders and
prevent new learning opportunities that might
affect the results in negative manner (Bolman and
Deal, 2017).
This is fall under
employee control
because employees
are not controlled by
managers or leaders
and this in turn
increase higher
attrition rate.
People Management
(4 areas)
1. Recruitment
& Selection
The hiring strategy of
Aldi is not effective
enough because it does
not provide high wages to
their customers and that
is why, it affected the
overall performance of a
company (Svitkina,
2020). the interview
process is used for
Company faces issue
regarding hiring the
employees because it
offers low salary and
that is why, no one
wants to perform job in
this area. This in turn
affected the performance
of employees as well as
business.
The merit of using this concept of recruitment is to
examine whether the candidate is best fit for job or
not. On the other side, limitation of using this
method is such that all the necessary questions are
not asked in this process that help to identify
whether an individual is best fit or not.
Recruiting a person
is under employee
control in which
each activity is
monitored by the
company’s manager
to track about the
performance.

selecting the employees
2. Training &
Developmen
t
By using training of
reinforcement theory, it
has been analysed that the
learning behaviour of the
people should be
appropriate and it does
not repeat after the
mistakes identified
(Meyer, 2017). For that,
training is provided
The issue identified
within a case study is
such that Aldi do not
provide effective
training session to the
employees and that is
why, there is a need to
provide effective
training that helps to
understand about key
areas.
The merit of using this theory is such that it boosts
the morale of employees and reduce turnover. It
also helps to improve productivity and generate
better outcome. On the critically note, it has been
identified that it provide different ways to improve
the performance and diminish the result
Employee autonomy
is related to training
and development
because through this,
employee develop an
ability to control the
work situation.
3. Performance
& Reward
With the help of social
cognitive theory, the
performance of an
employee can be
enhanced and by offering
different rewards,
company can improve the
performance
The employee does not
get any reward and they
are over burden without
getting any additional
compensation
The merit of using this concept is such that it helps
to motivate the employee and their behaviour.
Also, on critically side, it has been analysed that
changes in the environment lead to cause negative
impact over person because they do not accept the
change (Kondalkar, 2020).
Employee autonomy
because company
involve the
employee in order to
make the changes
over a project.
4. Employee
Relations
Marxist perspective help
to determine the
The issue pertaining to
this area is such that
The advantage of using the theory is such that it
helps to provide effective system to the company
Employee autonomy
because employee

employee relation
because each of them
provide different
interpretation towards a
workplace conflict
(Bratton, 2020). This in
turn cause negative
impact over the
performance
employees are not happy
with the working
environment because
leaders do not hear their
issue and this in turn
cause adverse impact
over their performance.
which can be complied to improve the working
environment and remain employee satisfied. On
the other side, it does not include other key areas
and this in turn causes negative impact over the
performance.
relation are
maintained by two
sided and that is
why, there is a need
to improve the
relation to generate
better outcome.
Area: Gore Academic
Concepts/Theories
Issues in the case studies Merits / Limits of Concept Autonomy/Control

Org Structure Company follows Lattice
organization structure in
which organisation
provide ways for workers
to contribute ideas and
suggestion in every area
of a company.
The issue identified
within this organization
structure is such that
legitimacy from the
clients and its partners.
Also, some employees
are exercise some sort of
power on an informal
basis.
It allows corporation to be more flexible and also
adapt the changes frequently (Howard-Grenville,
2020). Also, through this structure, company
provide an opportunity to change their work
pattern to balance their work from home. On the
other side, lack of progression opportunities affect
the overall performance of a company in adverse
manner.
The employee
control is under
organization
structure because it
according to
structure, employees
performed within
Gore.
Org Culture The organization culture
adopt by the company is
related to role in which
all employees are work
according to delegated
roles and responsibilities
(Vargas-Hernández and
Ali, 2021). Under handy
culture theory, employees
are able to perform the
duty and meet the defined
aim
As per the organization
culture, the roles and
responsibilities are
delegated to each
employee and that is
why, a lack of
communication might
affect the culture
because it derives
opposite results as
expected.
The chosen organization structure helps to boost
the overall performance of a company and
motivate employees so that effective results can
generated. On the other side, this might lead to
increase poor communication channel and this in
turn causes negative impact over the business
performance. That is why, there is a need to focus
upon the organizations structure so that it create a
better a better outcomes and derive better outcome.
With the help of
employee control,
Gore should apply
the chosen
organization
structure over the
business and that is
why, it changes the
overall performance.
Org Leadership The leadership style The leadership issue The merit of using this leadership style is such that Employee autonomy

opted by the company is
fellowship in which
company’s leader opt the
style which involve all
the employees in the
decision making process
so that effective results
can be generated.
faced by the
organization involves
discussion with all
employees while making
effective action. This in
turn causes negative
impact for the company
and affect business
performance.
employees understand that they are an important
key pillar of a company and this help to boost the
morale of employees (Bayar, 2021). On the other
side, it has been critically analysed that the chosen
leadership style sometime do not provide effective
results. That is why, there is a need opt the
leadership style as per the situation.
because the level of
communication is
increases and this
causes positive
impact.
People Management
(4 areas)
1. Recruitment
& Selection
The strategy for
recruiting and selection
are not very usual
because Gore is believed
in control the employees
that is very less interview
are conducted. Also, there
are some people who are
like to recruit from there
family and friends. That
is why organisation has
less option for recruiting
and selection the
In this case study this is
analysed that there is
less amount paid to the
employees as well as it
controls the employees
by not give them extra
salary for overtime.
The merit of this section is to hire those already
known for company as well as employees are not
hire as per the education basis. Beside this, the
knowledge get by the candidate is comparatively
low and that is why they offer less salary.
Organisation more
believed on the
control the
employees in order
to not provide them
leaves.

employees (Wæraas and
Dahle, 2020).
2. Training &
Developmen
t
The theory adopted by
organisation social
learning theory in order
to provide proper
training to employees.
Also, it helps to develop
the knowledge of
employees.
There are different types
of training provide by
the company in order to
implement new strategy
for considering different
types of products.
The advantage of training is to learn new things
and it is very important to adopt technology
advancement for providing better resources to the
employees.
Gore focused on the
autonomy of
employees because it
helps to improve the
productivity.
3. Performance
& Reward
The performance and
reward theory adopted by
the organisation in order
to using the extrinsic
reward theory that believe
in positive corelation with
the performance and
efforts. The outcome for
the favourable
performance is related to
desirable rewards.
In context of
organisation there are
different types of reward
given on the basis of
performance as well as
in the form of appraisal
and also get extra leaves
for vacation period.
The merit of the reward system is related to
motivate the employee in order to get better
services as well as increase the performance
productivity. On other hand, reward system
demotivated other employees who were not get the
same rewards because their performance level is
comparatively low (Blštáková and Stacho, 2020).
Organisation should
focus on the
controlling so that
employees will not
shift to other job.
4. Employee
Relations
The employee relation is From the report this The merit of this point is to improve the Gore has focused to

related to the efforts that
are create for maintaining
the positive relationship
with employees. It helps
employees to more
engaged with the work.
issue is seen when
employees are getting
more engaged with the
organisation but not
with the subordinate. So
that their different task
given by the manager in
order to create more
engagement.
communication and the cultural of the organisation
that will enhance the performance of the
employees. On other hand it creates conflicts
between employees.
control the employee
engagement
according the work
they neededs.

REFERENCES
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