LSC UoS BA Business: Organisational Theory and Asda Case Study Report

This report provides a comprehensive analysis of Asda's organizational theory and practice, covering various aspects of its management and operations. It begins with an introduction to organizational theories and their relevance to business, followed by an examination of the management styles, pr...Read More

Organisational Theory
and Practice

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Management style, principle and functions of management used by CEO of Asda .................1
Steps taken by CEO in regard to organisation structure in order to achieve high performance
and change in culture brought by CEO and its impact on employees........................................3
Leadership style of CEO of Asda to enhance company's effectiveness......................................4
Effects of power, influence and conflict at Asda........................................................................4
Theories of motivation used at Asda...........................................................................................6
Literature and justification with examples..................................................................................7
Recommendations to increase company's performance..............................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organisation theories is referred as a set of interrelated idea of company's behaviour of
businesses. It is generally defined as behaviours of particular employee or group of employees
that work in company so that they can interact with each other to have their job and roles which
are directed to them in order to achieve common goals(Hayes, 2018). Organisational theory and
practice is defined as study and practices of social relationships of employees towards their
company. As it also identifies various external and internal business environment factors like
political, economical, social, technological, legal and environmental. As organisation structure of
any business company plays an important role in achieving success of companies. The report
below is based on organisational theory and practice of Asda, which is a British supermarket
chain across globe(Larson and Foropon, 2018). This report includes management style,
principles and functions of management used by CEO of Asda, steps taken by CEO in regard to
organisation structure to achieve high performance and change in culture brought by CEO and its
impact on employees, leadership style of CEO of Asda to enhance company's effectiveness,
effects of power, influence and conflicts at Asda, theories of motivation, literature and
justification, recommendations to increase company's performance along with its conclusion.
MAIN BODY
Management style, principle and functions of management used by CEO of Asda
Management of every company includes planning, organising, directing and controlling
various works efforts to accomplish company's goals and objectives with ease. Whereas
management styles is defined as a particular way by which company's management achieve its
objectives and goals effectively (Papadopoulos, Baltas and Balta, 2020). Management styles
consists way of making decisions, way of planning and organising of work and effectiveness of
management performs its duties, roles and authority in company. Various management styles
varies according to management of company, level of management, and individual to individual.
It is duty of manager to apply effective management style according to required situations. Some
of management style which is used by companies in their operations are as follows: Authoritative style: In this management style, managers of company organises exactly
what company requires to accomplish its goals to their subordinates.
1

 Autocratic style: In this management style, management system focus on following top
down approach in their company(Johnston and Sheehan, 2020). It is most referred as
controlling management style. Autocratic styles follows top down in performing
company's operations.
 Persuasive style: In this management style, managers of company uses and apply their
persuasive skills to convince employees that decision that are made are proved to be good
and and effective for company.
There are certain management principles that could be applied and used by companies in order
to have efficiency and effectiveness in their management. Some of management principles that
are used by companies in their management are as follows:
 Principle of authority and responsibility used by company's management in which
company ensures that work and duties are performed effectively and efficiently by
optimum utilisation of present resources.
 Principle of division of work in management states that all work and duties to
subordinates are to be divided according to their skills and specialisation(Enya, Pillay
and Dempsey, 2018) .
 Principle of discipline in management states that all work and assigned duties are to be
performed with sincerity and systematically in order to carry company's operations
smoothly.
 Principle of unity of command in management states that all works and duties that are
assigned to employees are to given by only one superior boss.
 Principle of initiative in management states that employees in company should take
active participation in company's operations and should provide their opinions about any
concerns.
In terms of Asda, is using various management functions used by CEO of company in
planning goals and objectives, organising that relates and deals and staffing employees at right
profiles in directing subordinates, assigns roles and duties to employees and controlling that
relates in comparing actual performance of company with planned performance and according to
improvement required actions will be taken. Company is applying various management
principles in their operations to increase effectiveness and efficiency of company.
2

Steps taken by CEO in regard to organisation structure in order to achieve high
performance and change in culture brought by CEO and its impact on employees.
Organisational structure of company is defined as a structure of company that states how
goals and duties are performed and carried in company in order to achieve desired objectives
and goals of company(Hughes, 2018). In terms of Asda, company's organisational structure is
based on its type and size of business company. For having change in organisational structure
CEO of Asda can determine new organisational structure by:
 By keeping some layers of responsibilities and duties department in company,
organisation structure of Asda will have the efficiency. As with more layers structure can
make situations and operations complicated that perform roles and duties in company.
 By having a tie in compensation to customer experience with roles and job duties in
company.
 By developing a culture of one company and one team and silos could reduced between
sales and operations in company.
 By keeping a focus on customer experience as all work and duties are performed in order
to achieve goals and objectives of company that could be gain through serving customers.
As each and every company in market has a desire to achieve its targets. Organisational structure
helps every company to works towards its goals and objectives of retail company. As
organisational structure lets the members of company to work together and demarcates different
functions between them. In terms of Asda, company's organisational structure puts an impact on
employees as a poor organisational structure creates low productivity in company. There will be
less delegation of work among staff members of company(Prøitz and Wittek,2019). As when
company 's organisational structure is poorly designed there will be no incentives provided, no
centralised decisions could be taken which leads to affect working culture of company. Whereas
when organisational of company is properly designed then it leads to productivity in company as
employees do not get confused for their job profiles and roles that are to be performed by them.
As when they job roles and duties are clearly identified employees will be able to perform with
their higher efficiency so that goals and objectives of company could be easily met. A rightly
designed organisational structure helps in attaining efficiency and gaining higher revenues.
3

Leadership style of CEO of Asda to enhance company's effectiveness.
Leadership is defined as company's management capability to plan and achieve various
planned and challenging objectives of company, taking rights decisions and actions when
required, handle competition and influencing employees of company perform their duties with
high performance so that their objectives and goals can be achieved timely and easily (Dwivedi
and et. al. 2020). It is necessary for every business company to use leadership in their company
which provides them direction for accomplishing objectives and goals. There are various
leadership styles that could be used by leader of company to influence its staff members and
carry its business practices systematically. Some of leadership styles are as follows: Autocratic leadership: In this style of leadership leaders of company, guides, directs and
makes decisions in company. It is considered as an effective style of leadership. In
autocratic leadership style basically leader believes that leader is only person who directs
and make decisions in company. Laissez faire leadership: In this style of leadership, leaders of company basically aims at
focusing on employee empowerment in company. In this style of leadership company's
employees themselves makes initiatives in taking decisions in company for having better
efficiency and effectiveness at their workplace.
 Democratic leadership: In this style of leadership leaders as well as staff members
participates actively in operating and decision making in company(Foray, 2018). This
style of leadership is also known as participative leadership style.
In terms of Asda, company is implementing autocratic leadership style in making
decisions and influencing staff members of company. As CEO of company, it majorly ensures
that decision making and managing operations are done by its senior manager in order to achieve
goals and objectives of company. By using Autocratic leadership in company's business practices
employees are directed to follow manager's and executive 's directions and job duties that are
assigned by them. Company's leader ensures that decisions and actions are accurately taken by
their senior executives and managers which can lead to enhance company's performance and
accomplishing its goals and objectives easily on time.
Effects of power, influence and conflict at Asda.
Power and influence are considered to be a fundamental human phenomena that includes
conscious personality and psyche of employees in company. As power and influence are
4

traditional and old concepts that are used by companies(Wang, 2018) . Basically power and
influence is defined as a potential and capability that protect or cause in companies. It generally
refers to capability to direct, guide or influence behaviours of employees that are working in
companies. They consists of identification of behaviours of employees in companies. In terms of
Asda, power and influence is essential element that should be used in company. As it helps
managers to take to monitor employees and directs them to perform their duties and roles that are
to be performed in order to achieve company's challenging goals and objectives with an ease. As
power and influence plays a vital role in having effective performance(Donnelly and Johns,2020)
. As decisions in company are taken to direct employees and its staff members in order to
achieve company's goals. Power and influence could create positive as well as negative impact
on company as when power and influence in company are rightly used it lead to have higher
efficiency and higher profitability to company and if power and influence are not rightly used at
workplace it leads to have problems and challenging situation in company.
Conflicts in company is defined as a state of situations of disagreement and
misunderstanding in company. Conflicts can results in creating a deviation of planned
performance and actual performance. It could result in affecting performance and efficiency in
company. In order to high performance and effectiveness in companies it is essential for
companies to resolve conflicts on time. Workplace conflicts could be arise out of a difference of
opinion. As sometimes conflicts can also be results as beneficial as such as where employees
provide constructive criticism to each other and prof other employees to generate a better quality
of work. But at some times when conflicts are not handled properly it can affect and damage to
personal and professional relationships among employees. Timely resolution of conflicts could
help in avoiding damages and disputes among company's staff members. Conflicts management
is necessary in company to manage its operations and activities. In terms of Asda, conflicts could
be arise in terms of having job confusion, efficiency that could affect performance of company.
It is important for Asda to resolve conflicts on time in order to maintain long run of company. As
when conflicts are not managed timely it hampers company's productivity and performance. So
for maintaining long survival and profits of company conflicts should be timely resolved by
superiors of company so that there will be no occurrence of confusions and dissatisfaction among
employees and staff members and brand image of company can be maintained in corporate
markets.
5

Theories of motivation used at Asda.
Motivation refers to willingness to perform the roles and duties in order to fulfil their
needs and desires. In general it simply refers to methods which initiates, directs and maintains
the behaviours of the employees of company. It includes emotional, social and biological forces
which initiates employee's behaviour(Wagire, and et. al. 2020). There are various theories and
practices of motivation which could be used by company' s CEO to motivates its employees so
that they will able to perform their job roles with higher efficiency. In terms of Asda, company is
applying various motivation theories and practices in order to motivate its employees and
maintain effectiveness and efficiency at their workplace. It is essential for retail company like
Asda to keep motivate its employees in order to maintain higher performance and job satisfaction
among its employees. Motivation could be performed in company in order to develop
personalities of employees as well as achievement of company's company goals and objectives.
In terms of Asda, various motivation theories and practices that are used by company are as
follows:
 CEO of Asda, aims at developing personality of employees in order to maintain higher
efficiency in their performed duties.
 Company has determined that it is necessary and important to keep faith, trust and respect
on employees for having better performance. Asda always keeps and values its
employees in working so that employees could feel appreciated and valued in company
and as result they will focus on giving higher performance in company.
 Asda is providing flexible working hours at their workplace, providing timely salaries,
health benefits and gym memberships to keep their employees motivated towards their
job and duties.
 Company is focusing on health and hygiene aspects at their workplace so that its staff
members can feel relaxed and comfortable towards their workplace.
 Asda and its CEO takes care of its employees and staff members 's needs and wants and
in order to fulfil that they pay regular salaries and fair wages according to their skills and
effectiveness without keeping a delay in their payment so that their staff members could
fulfil their needs and desires.
 Company regularly reward their employees for performing their best job roles in
company. There are various incentives that could be provided to employees for their
6

performing well like providing them discount cards, holiday vouchers, pay slip vouchers,
private healthcare and many other benefits that keep their staff member motivated.
Literature and justification with examples
There are various corporate examples which can used for having justification of various
organisational theories and practices in company(Falola and et. al. , 2018). Various retail
business companies can taken as an example for having justification of organisational theories
and practices that they are using in order to maintain efficiency and effectiveness at their
workplace.
Marks and Spencer which is a British multinational retailing company that deals and
operates in groceries, home products and clothing. Company is applying and using various
organisational theories and practices in their workplace in order to maintain effective
performance of their company. Marks and Spencer is applying various management principles in
order to improve working performance in their operations. Company is applying democratic
style of leadership style that allows its employees to take active part in company 's decision
making process. Company is using motivation theories on time in order to maintain motivation
level of employees.
TESCO is a British supermarket chain that operates in providing retailing products and
services to customers. Company is applying various organisational theories and practices in their
operations in order to maintain its survival in markets for long run. TESCO is applying various
management principles in their in order increase effectiveness of company. Company is using
democratic leadership style in their operations and ensures that its employees takes active
participation in company's decision making so that its goals and objectives could be easily met.
TESCO constantly keeps its focus on motivating employees by rewarding them and providing
them various incentives on their effective performance to keep a flow operations and motivates
employees.
Recommendations to increase company's performance.
From above discussion of various organisational theories and practices there are various
recommendations and suggestions that could be provided to Asda in order to maintain efficiency
and increase company performance. Some of recommendations and suggestions that could be
provided are as follows:
7

 For having better company performance, company should not take unilateral decisions at
their workplace.
 Asda 's finance team and its buyers should be highly skilled and trained for having
efficiency at their workplace.
 Money that is owed to suppliers should be paid timely on time with payment terms.
 Data and input errors of company which are determined by suppliers of company should
be resolved soon by their experts by using various business practices (Camilleri, 2018)
(Holgate, Simms, and Tapia, 2018).
 Asda can make right and effective organisation structure for their company to have better
performance.
 Company can use various management principles in their company to have a systematic
management system in company in order to achieve desired goals and objectives.
 Asda can focus on its productivity so that company can be able to have better and
effective performance in corporate markets.
 Company can aims at focusing on motivating employees of company so that employees
can work with their higher performance.
 Company can focus on building customer satisfaction as better customers experience
helps Asda to increase its effectiveness in their operations.
 Asda should provide transparency and have clear idea about its dealings with suppliers of
company.
CONCLUSION
From above report it has been concluded that organisational theory and practices are
considered as an important and vital element to analyse and study organisational behaviour of
employees towards their company. This reports briefly explains about management styles,
principles and functions performed by CEO of company. Organisational structure is explained
according to company's operations and activities. Various leadership styles and motivational
factors used by CEO of company to enhance company's performance are briefly explained. There
are various effects of power, influence and conflicts are explained to determine behaviours of
employees along with justification of statement and recommendations to have high performance
in company.
8

REFERENCES
Books and Journals
Camilleri, M.A., 2018. Travel marketing, tourism economics and the airline product: An
introduction to theory and practice. Springer International Publishing.
Donnelly, R. and Johns, J., 2020. Recontextualising remote working and its HRM in the digital
economy: An integrated framework for theory and practice. The International Journal
of Human Resource Management, pp.1-22.
Dwivedi, Y.K. and et. al. 2020. Editorial introduction: Advances in theory and practice of digital
marketing.
Enya, A., Pillay, M. and Dempsey, S., 2018. A systematic review on high reliability
organisational theory as a safety management strategy in construction. Safety .4 (1).
p.6.
Falola, H.O., and et. al. 2018. Employees’ intrapreneurial engagement initiatives and its
influence on organisational survival. Business: Theory and Practice .19. pp.9-16.
Foray, D., 2018. Smart specialisation strategies and industrial modernisation in European regions
—theory and practice. Cambridge Journal of Economics .42 (6). pp.1505-1520.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Holgate, J., Simms, M. and Tapia, M., 2018. The limitations of the theory and practice of
mobilization in trade union organizing. Economic and Industrial Democracy .39( 4).
pp.599-616.
Hughes, M., 2018. Organisational ambidexterity and firm performance: burning research
questions for marketing scholars. Journal of Marketing Management .34 (1-2). pp.178-
229.
Johnston, J. and Sheehan, M. eds., 2020. Public relations: Theory and practice. Routledge.
Larson, P.D. and Foropon, C., 2018. Process improvement in humanitarian operations: an
organisational theory perspective. International Journal of Production Research .56
(21). pp.6828-6841.
Papadopoulos, T., Baltas, K.N. and Balta, M.E., 2020. The use of digital technologies by small
and medium enterprises during COVID-19: Implications for theory and
practice. International Journal of Information Management .55. p.102192.
Prøitz, T.S. and Wittek, L., 2019. New directions in doctoral programmes: bridging tensions
between theory and practice?. Teaching in Higher Education.
Wagire, A.A. And et. al. 2020. Development of maturity model for assessing the
implementation of Industry 4.0: learning from theory and practice. Production Planning
& Control, pp.1-20.
Wang, F., 2018. Social justice leadership—Theory and practice: A case of Ontario. Educational
Administration Quarterly .54 (3). pp.470-498.
9