Organisational Performance at Deliveroo: A Case Study Analysis

This case study examines the organizational performance of Deliveroo, focusing on the impact of conflict. It explores the management style of CEO Will Shu, identifying participative and collaborative approaches. The study outlines management principles and functions, organizational structure changes using Lewin's model, and leadership styles, including democratic and autocratic approaches. It further analyzes the effects of power, influence, and conflict, referencing French and Raven's Bases of Power. The study also investigates motivation theories, particularly Maslow's Hierarchy of Needs, and provides recommendations for enhancing organizational performance. The analysis covers various aspects, from bringing change within an organizational structure to understanding the types of motivation employed by Deliveroo to improve employee performance and reduce conflict within the workplace.

Individual case study
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Contents
INTRODUCTION...........................................................................................................................3
TASKS.............................................................................................................................................3
Management style and state the principles and functions of management used by CEO of
Deliveroo.....................................................................................................................................3
Steps for bringing change within an organisational structure for achieving high performance
and examine the organisational culture.......................................................................................5
Leadership styles of the CEO of Deliveroo in enhancing organisational effectiveness..............6
Effect of power, influence and conflict at Deliveroo..................................................................7
Types of motivation used by Deliveroo.......................................................................................8
Corporate examples and literature to justify stand....................................................................11
Recommendations for increasing organisational performance..................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Main topic of this study is to identify the impact of conflict on organisational performance
of an organisation (Alise, 2021). Conflict is a main issue within a workplace of Deliveroo.
Deliveroo is a chosen case study for this report. It is an online food delivery company that was
founded in 2013 by William Shu. Company is headquartered in London, England, UK.
Deliveroo is specialising in delivering of food through online. Along with this, conflict is a major
issue faced by Deliveroo at workplace. In order to deal with such issue, this report will be
conducted in systematic manner. There are different tasks that will be required for completing
this project. These are management styles, motivational theories, organisational structure etc.
TASKS
Management style and state the principles and functions of management used by CEO of
Deliveroo
Management style includes the way that a manger of company can plans, organise, make
decisions, delegates and manage their employees. The name of co-founder and CEO of
Deliveroo is Will Shu. There are two effective type of management styles used CEO of
Deliveroo. These will be described as below:
Participative management style: This is a type of management style used by CEO of
Deliveroo. In this style, CEO of company involve their all employees in decision making process
(Daft, 2021). As this increase satisfaction and motivation among workers that result in reduction
of conflict at workplace.
Collaborative management style: This style of management is followed by Will Shu for
increasing collaborative within workers to work collaboratively. In this style, business
management develops an open forum for plan to be deliberated extensively before making any
decisions that is based on rule. This will help in increasing of innovation, creativity and
engagement within workforce.
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Principles and functions of management
Principles of management:
Figure 1: 14 Principles of management
(Source: Principles of management, 2021)
There are 14 principles of management that created by Henri Fayol. These are division of
work, authority and responsibility, discipline, unity of command, unity of direction,
subordination of individual interest, remuneration, centralisation, scalar chain, order, equity,
stability, initative and esprit de corps. These are major principles that should be follow by the
CEO of Deliveroo because it helps them in increasing of motivation among workers that output
in reduction of conflict at workplace (Kainthola, 2021).
Functions of management:
There are basically 4 functions of management that should be follow by the CEO of
Deliveroo. These functions are explained as below:
Planning: This is a first function of management and in this business manager can develop a
plan to meet goals and objectives of an organisation.
Organising: This is another function and in this, CEO of Deliveroo can organise business
activities and involve their all employees as it will facilitate in improvement of business
operations (Shortell, Rundall and Blodgett, 2021).
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Leading: In this function, CEO of Deliveroo lead their employees to work towards attainment of
company goals and objectives. As this support in overcoming of conflict at workplace.
Controlling: This is a last function that helps in controlling of all activities in systematic and
successful manner.
Therefore, all these are main functions of management that will facilitate Deliveroo in
reduction of conflict and achievement of long term goals and objectives (Ibrahim, 2021).
Steps for bringing change within an organisational structure for achieving high performance and
examine the organisational culture
Organisational structure: An organisational structure introduces to a system that outlines
how some activities or actions are directed for attaining goals and objectives of company. These
activities are rules, responsibilities and roles (Ugheoke, 2021).
Organisational culture: This is defined as the underlying assumptions, beliefs, ways and
values of interacting that contribute the unique psychological and social environment of an
organisation. Culture includes values, norms, vision, symbols, systems, language, habit etc.
Lewin’s change management model is used for bringing change within an organisational
structure. This model includes three steps that will be shown as below:
Figure 2: Lewin’s change management model
(Source: Lewin’s change management model, 2021)
Unfreeze: This is a first step of Lewin’s change management model where employers
should get prepared for any type of change. It is an important step because there is an open
communication to communicate all information about the change freely. In case of Deliveroo,
company must use open communication and provide information regarding the change that is
using of divisional structure (AL-MADADHA, AL-ADWAN and ZAKZOUK, 2021). In this
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structure, all departments are work with each other that result in improvement of business
performance as well as culture.
Change: In this stage, change in organisational structure gets implemented and developed.
In this stage, effective employee communication and good leadership are important because it
facilitate Deliveroo in implementation of change effectively and systematically. Therefore, it is
important for Deliveroo to change their organisational structure effectively (Etse, McMurray and
Muenjohn, 2021).
Refreeze: In this stage, change in accepted and workers go back to their routine work and
activities. There is a role of business leader and manger to make sure that change is accepted and
business objectives are achieved.
Therefore, change management is important and essential for Deliveroo in reduction of
conflict and improvement of business growth and success.
Leadership styles of the CEO of Deliveroo in enhancing organisational effectiveness
Leadership Style of Deliveroo
A Leadership Style generally means characteristics of leaders when they direct, motivate,
manage and guide their followers. A good leader creates a path for their team to achieve vision
and they can also inspire social change. They motivate staff members to perform at their best
level and encourage them to innovate something new.
Democratic Leadership-
Democratic Leadership is also known by name Participative Leadership, this leadership
style is applied to an organisation, schools, government and private businesses. In Democratic
Leadership style employees are given an opportunity to exchange their opinions and ideas. The
leader encourages all staff members to take part in discussions. The democratic process main
focus on free exchange of ideas and group equality (Alheet and et. al., 2021). The Leader provide
guidance to their employees so that they can perform better in an Organisation. Democratic
leadership style promotes creativity, innovation, empowerment and participation in the
Company. This leadership style creates job satisfaction among staff members.
Autocratic Leadership Style-
In Autocratic Leadership Style there is a control of individuals over all the decisions. The
leader in autocratic leadership rarely take care of the advice of their employees, they make their
own choice in any judgement and decisions. This type of leadership style includes absolute
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control over employees. The person who use this approach look as bossy and dictator. The one of
the benefit in autocratic leadership style is that they can take decision quickly in less time
especially when there is stressful situation (Rabiul and Yean, 2021).
Laissez-Faire Leadership-
Laissez-Faire Leadership style allows employees to make their decisions and give
freedom to them for working accordingly. This leadership style adds creativity in an organisation
as they have a freedom to represent their thoughts and opinions in decision making process. The
Laissez-Faire Leadership style promotes independence and trust in a Company. Leader take low
participation in the works of employees that helps in balancing things.
The Deliveroo CEO William Shu adopts participative leadership style in which all the
staff members point of views is listened and considered in decision making process. When all
staff member’s opinions are considered, the leader have many options to bring more input in
decision making process. By adopting participative leadership style the Deliveroo have many
solutions of problems as all employees suggest their thoughts regarding the issues. The workers
in this leadership style feel more valued as their idea is heard, discussed and implemented in
taking any action (Ichsan and et. al., 2021).
Effect of power, influence and conflict at Deliveroo
The power plays an important role in an organisation with the help of power an individual
can bring more Control in their life (Lagerwerf and Govaert, 2021). If the leader has power, they
can take strict actions and make employees to follow the rules. There are positive or negative
impacts of power, the leader can also misuse their power sometime they create a false blame on
employees. The Deliveroo use one of the model of Power that is French and Raven's Bases of
Power. In this model they have identified that there are six types of power that influenced other
they are Legitimate, Coercive, Informational, Reward, Expert and Referent. The detailed
explanation is below-
Coercive Power-
Coercive power is used by leader by forcing employees to do something wrong against their
will. This power is used when a senior want to give punishment to their employees for
noncompliance. Coercive power generally creates problem in an organisation and it is also
considered as abusive. This power leads to unhealthy behaviour during work.
Reward power-
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Reward power is positive power which gives reward to employees who perform best in the
Organisation. The reward power is used to increase efficiency of the employees while
working in a Company.
Legitimate Power-
This power is creating a formal relationship between employees. The leader influences the
people and they work what leader have instructed. If any leader loses their positions they
lose their powers.
Expert Powers-
The leaders who have expert powers is highly intelligent and they play their roles and
responsibilities effectively in the Organisation. In expert power leaders get good results and
doesn't gain that result personally (Picciau, 2021).
Referent Power-
Referent power means when an individual want to be liked and respected by others. The
influencers on Social media have referent power.
Informational Power-
Informational power is the last power of raven model, in this the leader have an ability to
handle the flow of information that is required to fulfilling the things done perfectly.
Conflict is a major issue within an organisation that has direct and negative impact over the
growth and success of Deliveroo. Conflict is a serious disagreement between the employees that
effect on company’s performance and productivity.
Types of motivation used by Deliveroo
Motivation is a way to encourage individuals to perform at their best level and achieve the
goals and objective of company in effective manner. Each and every employee needs motivation
to perform their task efficiently and effectively. The person who is highly motivated contribute
their best in company and an unmotivated person distracts other staff members and doesn't give
their best in achieving target. In an Organisation Motivation Theory is used to understand what
makes a worker to give their best outcomes. The one of the motivation theory which is being
used by Deliveroo is Maslow's Hierarchy of Needs (Kuipers, Kloek and de Vries, 2021).
Maslow's Hierarchy of Needs
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Maslow's Hierarchy of Needs is a displayed in a pyramid. The upper level of pyramid
consists complex needs whereas lowest level of pyramid has basic needs. The Maslow's
Hierarchy needs shows the needs and requirements of employees in their life.
These needs are classified from lower to higher hierarchy consist five needs they are as follows-
Physiological Needs-
Physiological needs are basic need of any employee, the basic requirements of people are
air, drink, food, shelter, clothes, etc. For a proper functioning of human body, it is important
to fulfil these needs. Physiological need is one of the important need of human beings.
Safety needs-
When an individual Physiological need is satisfied, the need of safety and security
become important. The safety and security needs include Financial security, health and
wellbeing, love and belongings, personal security, safety against accidents, social stability, etc.
The Safety needs can be fulfilled by society and Family (Dörnyei, Zoltán, and Ema Ushioda.
2020).
Belongingness need-
After fulfilling the Physiological needs and Safety needs, the third level of Maslow need is
Social needs. The individual ability to perform can be impacted due to negligence, shunning,
etc. To fulfil the Belongingness, need an individual must maintain emotionally relationship
with friendship, family and Intimacy. The employees need a sense of belongingness when
they are in large social groups.
Esteem Needs-
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Esteem needs requires to be valued and acceptance by others in Organisation. The
employees need appreciation and respect in Workplace. When the above needs are satisfying
individual wants to esteem needs to play important role. The employees want that everyone
in an organisation recognise by their work and efforts.
Self-actualisation needs-
Self-actualisation needs are the last need in pyramid, the employees focus on this need
specifically. In this need an individual uses their talent, potentials and capabilities to do their
best.
Deliveroo uses this motivation theory to make their employees feel valued by fulfilling their all
needs. By applying this theory in Deliveroo they increase the performance of employees and
help in making strong bond between employees so that their social and esteem needs get fulfilled
(Yates and Patall, 2021). The company also fulfil safety and security need of employees so that
they can work more efficiently and effectively.
Types of Motivation
There are two types of motivation which organisation use to increase the performance of
employees. They are Monetary Motivation and Non-Monetary Motivation.
Monetary Motivation-
Monetary Motivation means to motivate employees by giving rewards so that the
performance of employees gets increased. With the help of monetary motivation individual can
meet their target efficiently and effectively. The examples of monetary motivation are Piece
rates, pay raise, bonuses, sharing profits and contests. The morale of the employees gets
increased and they perform their best to achieve target. It is straightforward method for
rewarding talented and deserving employees (Xie and et. al., 2021).
Non-Monetary Motivation-
Non-monetary motivation includes benefits other than money. The employees need
recognition, respect, status in the organisation. The non-monetary motivation includes
appreciation, delegation, working conditions, job security, job enrichment and work life
balances. Employees must be appreciated when they perform well in accomplishing their target,
they get motivated with status and designation (Taylor and Kaufman, 2021).
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Deliveroo use these motivation techniques to increase the confidence and morale of
employees. They provide both the motivation factors to encourage workers for giving their
best outcomes.
Corporate examples and literature to justify stand
There are some corporate examples that also faced the issue of conflict within a workplace.
these examples are explained as below:
Coca-Cola: According to the Albers and Suwala (2021), This is an example that faced the
issue of conflict within a workplace. for overcoming such issue, they applied motivational
theory, leadership approach etc. These are effective ways that helped companies in reduction of
conflict within a workplace. CEO of Coca-Cola used different types of leadership styles such as
participative, autocratic, democratic and many more. These leadership styles are essential and
valuable for business because with the help of this, they can easily resolve the issue of conflict.
Coca-Cola applied 14 principles of management that also helps them in increasing of confidence
among employees. As it is important and essential for the growth and development of company
within less time period.
ASOS Plc: As per the view presented by Hockenhull and Cohn (2021), Company is also
faced by the issue of conflict that have negative and direct impact on business performance and
success of ASOS plc. For reducing the problem of conflict, ASOS applied Maslow – hierarchy
of needs. This theory supported them by increasing motivation among employees that output in
improvement of business performance. There are various functions of management such as
planning, organising, leading and controlling business resources. Ravens model used by
company for providing power to their employees to work effectively and efficiently that output
in increment of business sales as well as improvement of organisational growth.
Recommendations for increasing organisational performance
From the above mentioned information, it has been concluded that there are different ways
that are essential for Deliveroo in improvement or increment of an organisational performance.
These ways are described as below:
 Apply participative leadership and management style: This is a recommendation to
Deliveroo to apply participative management and leadership styles because it will help
them in involving of all employees in decision making process. This turn to impact in
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improvement of business performance by retaining employees at workplace for longer
time period.
 Applying different types of motivational theories: There are different types of
motivational theories such as Maslow’s hierarchy of needs, Hertzberg’s two factor
theory, McClelland’s theory etc. These are main theories of motivation that would be use
by Deliveroo for increasing motivation among employees. As it will help them in
attainment of long term goals and objectives within minimum time period.
 Adoption of the principles of management: This is another recommendation to the
business organisation to adopt all principles of management such as division of work and
many others. These are important and valuable for growth and success of Deliveroo.
 Development of proper communication: This is important for Deliveroo to develop flat
communication at workplace because it would help them in communicating of accurate
and all information to the employees in systematic manner. As it turns to impact in
improvement of organisational growth as well as success within less time period. This
will further assist them in achievement of competitive advantages successfully.
 Conduct proper selection: This is another and effective way for Deliveroo to conduct
proper selection because this will facilitate in selecting of talented employees at
workplace. This is essential for company in enhancement of their business growth.
CONCLUSION
From the above mentioned report, it has been concluded that their proper management at
workplace is important for company because it helps them in reduction of any type of conflict
easily. There were different principles of management discussed that facilitate company in
retaining of employees at workplace for longer time period. There were various types of
leadership theories that helped in increasing of participation among workers. This is essential for
business in improvement of business growth and success. There are two types of motivation such
as monitory and non-monitory. These are important for business in increasing of motivation
among workers that output in accomplishment of better outcomes.
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