Analysis of Deliveroo: Organisational Theory and Practice Case Study

This case study examines Deliveroo, a UK-based food delivery service, through the lens of organisational theory and practice. It analyzes the management style of CEO Will Shu, focusing on his application of various management principles, including division of work, unity of command, and the principle of remuneration. The study explores the functions of management within Deliveroo, such as planning, organising, staffing, and directing, and how these contribute to the company's success. It further investigates the organisational structure, highlighting the shift from a line to a matrix structure to facilitate expansion and its impact on employee motivation. The leadership style of Will Shu, particularly his democratic approach, is discussed in relation to its positive influence on organisational effectiveness. Additionally, the effects of power, influence, and conflict within Deliveroo are assessed, along with the types of motivation employed to enhance employee performance. The study concludes with recommendations to improve organisational performance.

ORGANISATIONAL
THEORY AND
PRACTICE
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Table of Contents
INTRODUCTION .........................................................................................................................2
TASK ..............................................................................................................................................3
Q 1. Understanding key concepts and principles of management, including their basic roles,
skills, and functions of management...........................................................................................3
Q 2. Analyse if any step was taken by the CEO to bring about a change in organisation
structure in order to achieve high performance and examine the organisation culture brought
about by the CEO of that firm and its influence on the employees............................................5
Q 3. Describe the leadership style of the CEO of that firm to enhance the organisational
effectiveness................................................................................................................................6
Q 4. Analyse the effects of power, influence and conflict at the chosen firm............................6
Q 5. Discuss the various types of motivation used at chosen firm.............................................8
Q 6. Using appropriate corporate examples and literature in justifying the stand......................9
RECOMMENDATION AND SUGGESTION:..............................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12
INTRODUCTION
Organizational theory refers to a study of business organisation and its various aspects
such as its environment, interrelationship, behaviour, bureaucracies, management style, structure,
performance, function, etc. It studies the impact on organisational structure or behaviour on
company's employees or human resource. Management style refers to a way which a leader
applies in his work in tackling and organising companies resources and workforce (Bourne
2016). In the present report the concept is being studied for Deliveroo which is an UK based
food delivery services. The management style, principles, functions, are being studied for
company which is being applied by its CEO along with a change bought by him in organisational
structure and culture. Further in report, the effects of power, influence and conflicts present in
company is being mentioned with the application of some motivation theory such as Maslow
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Need Hierarchy theory. At last few recommendations are being made for Deliveroo to increase
its organisational performance.
TASK
Q 1. Understanding key concepts and principles of management, including their basic roles,
skills, and functions of management.
Management Style:
Management style refers to a way which a leader applies in his work in tackling and
organising companies resources and workforce (Brudan 2010). Will Shu the CEO of Deliveroo is
focused on applying different management style in his organisation to work best based upon
prevailing situation and brings efficiency in workings. This is done with a motive to formulae
new plans and strategies in a way which directs to resolve various conflicts with possible
solutions in company.
Principles of Management:
Principles of management is a broad framework which presents a guidelines for managers
in order to manage their internal affairs and their resources in a way that can bring clarity and
efficiency in work and outcomes (Coffey 2010). There are fourteen principles developed by Prof.
Henry Fayol which are proved best suitable in companies. The principles of management applied
by CEO of Deliveroo in his organisation are mentioned below:
 Division of Work: This principle says that in an organisation there should be proper
division of each work according to the specialization of company's employees which will
bring efficiency in tasks allotted to them.
This principle is very well applied in Deliveroo as the company divides its operations into
tasks and are successfully allotted to employees according to their specialization which took
business at multinational level.
 Unity of Command: This principal says to have one single order from one boss within
an organisation which gives a clear object to achieve without having any
misunderstanding or miscommunication in specifying goals and objectives ( Hoang and
et. al 2010 ).
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Deliveroo CEO has provided guidelines in his organisation to flow command by one boss
so that employees would be very clear about their tasks and activities.
 Principle of Remuneration: This principle of Fayol says that employees of organisation
should be provided with suitable remuneration according to their job role and on time.
This will motivate them and allow to work with greater efficiency ultimately leads to
business success.
CEO of Deliveroo takes care of their employees in very well manner and provides their
salary on time matching to their job role in organisation from which their employees are
satisfied.
 Esprit de Corps: The principle of management defines that each employee should work
in a team in organisation so that results can be achieved in better way with number of
inputs from each personal.
In Deliveroo each employee is committed towards team work and provides their best in
offering quality service to their clients. This practice by them helps company to achieve success.
The above principles of management are well applied in Deliveroo by its CEO which
brings efficiencies in their offerings and helps company to become a leading organisation in
market.
Functions of management:
Functions of management refers to a practice applied in organisation which has a clear
understanding of company's activities and various functions performed by them. It includes
Planning, Organising, Staffing, Directing, and Controlling. The functions of management in
relation to Deliveroo are discussed under:
 Planning: This refers to planning of companies activities or targets based upon its goals
and objectives so that they can be achieved properly (ones 1986). CEO at Deliveroo plans
its activities in such a way that targets can be achieved in time with less wastage of
company's resources and are attainable in real.
 Organising: This comprises of organisation of companies resources at proper place on
proper time so that there is no wastage of time in getting resources. Deliveroo CEO takes
care of companies resources which are placed at right place in order to reduces waste of
time in providing best quality services to their customers.
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 Staffing: This includes employment of required personal according to job profile. The
function says that company should have enough potential employees who can give their
best to company and use their knowledge, skills very effectively. Deliveroo CEO
employees experienced employees for higher post and also recruits fresh talents for those
job roles which requires new applications.
 Directing and Controlling: This function says that management should direct its
employees in right path to achieve goals on time and should have control over targets
whether attained as per set or is having any ups and down. If there is any loss or down
then it should be controlled in order to bring effectiveness in results (Koh et .al 2004).
Deliveroo CEO directs his employees as per the requirements of targets and also keeps a
record on results so that can be controlled on time if any fluctuation occurs.
Q 2. Analyse if any step was taken by the CEO to bring about a change in organisation structure
in order to achieve high performance and examine the organisation culture brought about
by the CEO of that firm and its influence on the employees.
Organisational structure refers to a system within which a company works and its
management is placed. The CEO of Deliveroo that is Will Shu has planned to expand his
operations in more countries compared to present operations. The CEO has changed company's
organisational structure from line organisational structure to Matrix one in order to bring
expansion in business.
Line Organisational Structure: The structure follows a vertical and direct relation at
various levels of departments in organisation. Under this one can easily identify his roles,
responsibilities and their accountability which helps management to have quick and better
decisions (Laughlin, R.C. 1987).
Matrix Organisational Structure: This organisational structure follows horizontal
relation between employees and management in organisation. The matrix helps management in
achieving business objectives from different areas which are specific designed (Lynn et .al
2013). CEO has adopted this structure because this brings flexibility in enhancing company's
resources and also assits employees in taking necessary decisions as this provides
decentralization of decision taking power. This is very helpful for Deliveroo as the structure is
mostly applied in organizations who are planning to grow or expand their business. This
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structure is best suitable in companies which applies or accepts frequent external environment
change.
The impact or influence of this change on organisation's employees is positive as Matrix
organisational structure allows flexibility in using resources and support with a combination of
decentralised decision making powers. This facility motivates employees to take necessary
decisions and motivates them to work with more effectively along with greater level of
efficiency.
Q 3. Describe the leadership style of the CEO of that firm to enhance the organisational
effectiveness.
The leadership style of Will Shu which he uses in his organisation to enhance its
effectiveness is Democratic style of leadership.
Democratic style refers to a style in which leader allows participation of its employees or
team to have suggestions, views for effective decision making in organisation. In this style
employees feel motivated as their views or ideas are being listened by their leader and they are
invited in decision making (Manzoni and et. al 2009). Leaders listens all suggestions from his
team and takes the one into consideration which is best suitable and is beneficial for organisation
success and growth.
Application of Democratic style of leadership by CEO of Deliveroo is beneficial for
organisation in growing its business and enjoying higher profits. This is so because suggestions
and ideas are being taken from those who works on real grounds in company to make its dream
true so employees knows much in reality for the situations. The style motivates and encourages
company's employees in respect of their innovative ideas and suggestion for their organisation.
This helps Will Shu in enhancing the organizationals effectiveness as this inspires employee to
work more effectively and with greater efficiency in company.
Q 4. Analyse the effects of power, influence and conflict at the chosen firm.
Power is refereed as a mirror image of company's responsibility and authority which is
provided to an employee deserving such status. These are used by those managers who inspires
the team to perform their task more effectively and efficiently in organisation. Power comprises
of taking certain necessary decisions, or passing some guidelines which are required to be
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followed by employees or other staff in company (Michael, and Popov, 2016). This could be
any decision like taking any development step or providing any kind of reward to deserving
candidate in organisation or any other. Managers in organisation uses several theories to
encourage and influence employees which are discusses below:
 Legitimate Power: The power comprises of experience and position in organisation of
an employee. Will Shu authorises departments heads to analyse workers experience and
position to bring more efficiency in work.
 Reward Power: This kind of power is provided to them who are offered some training
and development, appraisals, promotions, etc. Application of such power in Deliveroo
motivates and encourages to attain appraisals or appreciation.
 Expert Power: This power is allotted to them who has an experience in field of past few
years and carries adequate knowledge in his area. Deliveroo provides this power to their
most experienced employees of organisation.
 Referent Power:This is provided to those who seeks motivation and influences
employees attitude in organisation. Will Shu provides such power to deserved ones who
are capable to influence and motivate further team in company.
Deleviroo CEO attains few powers in his hands so that things can be well managed by
one person in organisation which can see the progress of work performance regularly.
Effect of influence on Deleviroo:
The employees gets motivated when they are influenced by their leaders in organisation.
Employees efficiencies raises whey they feel encouraged from their top management or from
CEO. This increases their productivity and bring greater results in success of company.
Effect of Conflict at Deleviroo:
When there is an emergence or rise in some conflict within organisation it creates an
negative impact on employees performance as this disturbs their healthy mind and takes them
into the environment of stress which reduces their efficiencies. Such issues decreases employees
productivity and leads organisation to face failure or less growth.
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Q 5. Discuss the various types of motivation used at chosen firm.
Motivation refers to a procedure of encouraging and influencing company's employees so that
they can work with more potential and skills present in them. Maslow need of hierarchy theory is
applied in Deleviroo very effectively.
Abraham Maslow concentrated on some needs which are found to be very common an
necessary in human life. The theory comprises of different five levels in a hierarchy of human
needs that is required to be fulfilled in organisation. Fulfilment of one level results in entry into
next level need which encourages an individual to do their job with more efforts. The Five levels
of Maslow need hierarchy can be better understood by the following in respect of Deleviroo:
 Physiological needs: This is the first level which involve needs for survival in a human
life such as food, cloth, shelter, sleep, air, drink and warmth, etc. Fulfilment of these
needs is very essential for a human to perform optimally. Maslow considered these needs
as the most important needs for a human existence (Reyes, and Kleiner, , 1990).
Deleviroo fulfils this need of its employees working in the organisation, as it is essential
for company to ensure their life by offering adequate compensation to all employees so they can
satisfy their basic needs including meals, house, clothing.
 Safety needs: The second stage in hierarchy is safety needs. This level of Maslow need
involve security, stability and freedom bearing any kind of fear. Further, all elements
should be exist at workplace which employees needs to feel safe form any kind of harm.
CEO of Deleviroo is required to provide proper training to their employees so that they
can handle risky tools at work office and can maintain safe environment there.
 Belongingness needs: This is the third level of human need placed in hierarchy which
involves feeling and belongingness. Need of interpersonal relationships affects the
behaviour of an individual at their job place (Smith, 2005).
To satisfy this need of company workers, the CEO of Deleviroo si required to encourage
development and working of teams at job place. By this way company can retain employees for
longer period.
 Esteem needs: Maslow divided this need into two categories called as esteem for oneself
which comprises achievement and independence. Other one is respect from others which
involves prestige and status.
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In order to fulfil this need of organisation's employees, Will Shu is responsible to provide proper
growth opportunity to all employees at their workplace so that they can stay motivated.
 Self-actualisation need: This is the last level in Maslow need hierarchy theory of
motivation which involves self-fulfilment, by analysing personal growth and realising
ones own potential. This mainly covers a desire of being capable to achieve everything in
life which are wished to have.
With this theory of motivation, the CEO of Deleviroo Will Shu can encourage and
motivate its employees to work better. This increases productivity of workers which can be
improved at workplace which helps company to sustain in market for long run and also improve
its profitability.
Q 6. Using appropriate corporate examples and literature in justifying the stand.
Corporate examples:
 DeepMind: DeepMind is a UK based artificial intelligence company which is a
subsidiary of Alphabet Inc. The CEO of company follows democratic style of leadership
in his organisation.
 TESCO: The CEO of TESCO applies Maslow Need hierarchy theory in his organisation
to motivate their employees who brings success to the company.
Literature in Justifying the stand:
According to (Tidd,. ed., 2012), organisational theory refers to a practice which every
company employees in their business to achieve targets in set time and in well planned manner.
The theory also defines the activities, functions and management board of an organisation who
formulates company's policies and rules to be followed by organisation employees to fulfil
business objective.
According to (Zuber-Skerritt, 1996). , Maslow need hierarchy theory is a concept of
motivation which companies employees in practice of motivating and encouraging their
employees who then performs their task in more productive manner.
RECOMMENDATION AND SUGGESTION:
From the present report it is to be recommended to Deleviroo that it should keep
following its management style continuously which helps firm to grow and expand in
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international market. The company should motivate its employees regularly so that they can offer
quality service to their clients in market. It is also being recommended to Deleviroo's CEO Will
Shu to adopt different leadership style time to time so that efficiencies can be brought by various
ways and employees feel motivated by profitable change in organisation. In order to raise its
organisational performance the company should expand its business in more countries and
increase its level of services by delivering more foods to their clients who places order via
mobile app or website, this will help company to increase its revenue and enjoy higher profits.
Deleviroo can raise its sales by applying various applications such as social media marketing or
by offering discount offers to potential clients or providing gift hampers on festive season such
as Christmas or New Year which will going to attract customers to place order for more quantity
of food. The company Deleviroo can encourage its delivery partners or agents by offering them
rewards or appraisals in against of delivery service provided by them on behalf of company.
Will Shu can expand his business by established branches in countries where the company is not
currently operating and can deliver food in new market. The CEO can influence his team and
organisation by developing a healthy and friendly environment within office premises which will
allow workforce to feel belonging, this provides mental peace and happiness to employees which
they can utilise in increasing their productivity.
CONCLUSION
From the present report it can be concluded that organisational theories are very
important to apply in organisation as this provides a framework for activities and management to
achieve goals on time. Will Shu the CEO of Deleviroo is a very great leader of an organisation
who always brings success for the company. It can also be said that company has a great
influence from organisational structure and culture which impacts on productivity of employees.
Various principles and functions of management creates an healthy and positive behaviour in
company which allows employees to work with greater efficiency and takes firm to grow and
achieve success. From the repost it can be said that motivation is very necessary to apply in
company in order to encourage employees performance and enhance their existing skills. Firms
can apply various theories such as Maslow need hierarchy theory in their organisation to
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motivate employees. The powers of a CEO creates an impact on influence of workforce
competencies in an organisation so CEO should influence his team in positive and regular way.
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