Leading Business Organisations: Marks & Spencer Employee Report

This report provides a comprehensive analysis of Marks & Spencer (M&S), a major British multinational retailer, focusing on its employee motivation strategies, leadership styles, and organizational structure. The report delves into various motivational theories, including Maslow's Hierarchy of Needs and ERG Theory, offering insights into how M&S can encourage its workforce. It examines the transactional leadership style of Steve Rowe, the CEO, evaluating its effectiveness in driving employee productivity and highlighting its limitations. The report also explores the Situational Leadership model and its application within M&S. Furthermore, it discusses different organizational structures that M&S could adopt to enhance its operations. The report concludes with an overview of the key findings and recommendations for improving employee motivation and organizational effectiveness within M&S.

Leading Business
Organisations

TABLE OF CONTENTS
4. INTRODUCTION.......................................................................................................................1
5. How Marks and Spencer’s motivate employees?........................................................................2
6. Marks and Spencer CEO leadership style....................................................................................4
7. Marks and Spencer’s new management structure........................................................................6
CONCLUSION................................................................................................................................8
8. REFERENCES..........................................................................................................................10

LIST OF FIGURES
Figure 1: Maslow's need hierarchy theory.......................................................................................2
Figure 2: ERG Theory.....................................................................................................................4

4. INTRODUCTION
In this modern world, there are many organizations which provide similar product and
services. In this context, the main aim of any firm is to gain maximum profit and this is possible
when they understand their customers and satisfy them (Ertek, Tokdemir and Tunç, 2015).
Further, companies make use of different set of strategies with the help of which they aim at
developing unique identity so that they will be able to develop positive perception among
customers mind. There are cases in which management adopt different type of strategies in order
to provide customers with better and improved services. However, employees face difficulty to
get adjusted to the changes which take place within the organization. In order to do it effectively,
it is important for the organization to make employees understand regarding the services which
are to be adopted. However, there are cases in which employees get de-motivated and this
negatively affects the growth and profitability of the company (Fuchs, Bender and Glen, 2015).
Further, leaders play vital role in providing proper information related to roles and
responsibilities which has to played so that workers will be able to make use of their full
potential and support the firm in achieving the organizational goals and objectives. Moreover, it
is also important to have proper interaction with employees as it enables to know the issues
which are faced by them. Accordingly, appropriate steps can be taken so that they will be able to
provide their workers with healthy environment in which they will be able to work effectively
and efficiently.
Present report is Mark & Spencer which is a major British multinational retailer and aim
was founded in the year 1884. Cited firm aim art providing their customers with high quality
services. Further, they provide services like home products, food products and clothing. M&S
aims at providing their customer with luxury services and understands the issues which are faced
by them and accordingly, take appropriate steps through which they ail at achieving their goals
and objectives. This report is based on case study in which organization is planning to provide
new services. In this context, it includes different set of motivational theories which can be used
by the firm in order to encourage workers. Further, it covers different leadership styles which can
be use by the organization so that employees can be directed and guided. Lastly, it also includes
various organizational structure which can be used by cited firm that is M&S.
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5. How Marks and Spencer’s motivate employees?
There are many cases in which employees get de-motivated. In this context, it is the
responsibility of management to understand the issues which are faced by workers and
accordingly appropriate steps should be take so that they will be able to encourage and motivate
employees (Hill, Jones and Schilling, 2014). With this respect, there are various type of
motivational theories and models which can be used by Mark & Spencer so that they will be able
to provide their customers with better and improved services. Workers are the face of
organization as they have direct interaction with customers. They present the services which are
provided by the firm so it is important that company have employees with skills and capabilities
to understand services and provide them satisfaction. In order to improve the performance level
and to make use of employees full potential, following are various models which can be used by
cited firm:
Maslow's Hierarchy of need: This is a type of theory in which firm will be able to cover
all the essential areas through which employees can be motivated (Maslow's Hierarchy of need,
2014). There are total five basic needs which when satisfied, then employees can be motivated.
Figure 1: Maslow's need hierarchy theory
(Source: Maslow’s Hierarchy of Needs, 2013)
In this context, it includes needs like:
Physiological need: This need includes their basic needs which when satisfied, then
employees are motivated. With this respect, it includes salary, food, shelter, clothing, etc.
(Kaifeng, Xiaoqing and Jianping, 2015). As per the case, Mark & Spencer can fulfill all basic
requirement and this will be helpful in making their use their full potential and in encouraging
them.
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Security need: In this type of needs, employees at Marks and Spencer can be provided
with proper protection to their life. In accordance with the case, it is important firm make sure
that they provide their workers will all type of tools and equipment so that they feel safe and
perform their roles and responsibilities effectively and efficiently.
Love and Belongingness: Marks and Spencer can ensure that the management has proper
interaction with employees so that they share their issues. Through this, the management can
provide healthy environment within the company (Rabe, Sari and Ruini, 2015). With proper
interaction, it will enable to develop coordination and reduce confusions.
Esteem need: Every employees expects self-respect, status, mastery, etc. Mark & Spencer
should make sure that employees are provided with additional responsibility as per their
performance. This will be helpful to satisfy esteem need and worker will be able to get
encouraged and motivated.
Self-actualization: Every person have their own personal goals and objectives (Swayne,
Duncan and Ginter, 2012). As per the case, Mark & Spencer should be able to identify these
goals and make sure that they achieve them. This way cited firm will be able to satisfy self-
actualization need.
When Mark & Spencer make use of this motivational model, then firm will be able to
make improvement in the services which are provided by worker to customers. However, firm
can also make use of other motivational theory like Theory X and Theory Y.
This is a type of theory in which employees are divided into two different groups. All the
employees who dislike their work, do not take responsibilities, etc. are grouped under theory X
(Bettis, Gambardella and Mitchell, 2014). On the other hand, employees who like their work,
take responsibilities, etc. are grouped under Y. all the employees under X are provided with
proper training so that they will be able to improve their performance level and get motivated.
Different strategies are adopted with the help of which they will be able to make more
improvement in the performance of employees who fall under Y.
ERG motivational theory: This theory was given by Clayton P. Alderfer in the year
1969. It includes three different stages through which employees can be motivated.
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Figure 2: ERG Theory
(Source: ERG Theory. 2016)
Three categories are as follows:
Existence need: This includes the basic needs which employees expect to get that is food,
clothing, salary, shelter, etc. (Evans, Campbell and Stonehouse, 2003) When Mark & Spencer
satisfies this basic needs, then firm will be able to encourage their employees.
Relatedness need: It includes relationship with employees and employer. It is essential
for the M&S to have proper interaction with worker so that they will be able to develop healthy
environment within the company.
Growth need: People have their own aim and objectives which they tent to fulfil.
However, because of certain factors they fail to do so (Lengnick-Hall, Lengnick-Hall and Neely,
2014). In this context, it is important management make sure that their objectives are fulfilled
and they should be also be provided with additional responsibilities as per their work.
6. Marks and Spencer CEO leadership style
Different people have diverse set of characteristic and different way of understanding
situations and handling things. In this context, there are different type of leadership styles which
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are used by the firm (Harrison, Banks and Short, 2014). It enables the organization to control and
guide employees so that they will be able to make employees work with their full potential.
Steve Rowe is a ‘people’ person and pays attention to the issues and concerns of the employees.
However, at the same time, he is tough when required. Transactional leadership style is adopted
by Steve Rowe. He focuses on supervision and group performance. In this leadership style,
compliance is promoted by using both rewards and punishments (Hill, Jones and Schilling,
2014). Attention is paid towards the work of the followers and their faults and deviations are
identified. The leadership style of Steve Rowe is effective at encouraging productivity of
employees at Marks and Spencer. This is because the employees are aware that rewards will be
given to them only if they perform well. However, it can be critically evaluated that this style of
Steve Rowe makes him quite rigid in his expectations. Also, this leadership style considers that
the subordinates should do as they are told (Carmo-Sousa, Moreno and Fereres, 2014).
But, Steve Rowe’s leadership style is helpful in making the structure clear to the
employees. The employees are able to work with a clear and structured system. They are also
clear of the tasks that are expected from them. However, it can be critically evaluated that the
leadership style of Steve Rowe provides a very simplistic view of motivation. This is ineffective
in motivating the employees adequately and fails to take into consideration individual differences
of the employees. With transactional leadership style, Steve Rowe is unable to recognize or
praise those employees who meet the expectations of the organization. This is because this
leadership style considers the job as simply an exchange, for example, work for money
(Appelbaum, Habashy and Shafiq, 2012). But, the leadership style adopted by Steve Rowe
focused on short term goals which improved employee motivation level. This is because short
t5erm goals could be easily achieved by the employees. Marks and Spencer can make use of
another model which is Situational Leadership. This model was developed in the year 1977 by
Ken Blanchard and Paul Hersey. There are two different type of continuum's involved which are
as follows:
Supervision: For any employees, it is important that the leader have proper supervision so
that they identify the issues which they face. Accordingly, training can be provided by Marks
and Spencer provided with the help of which issues faced by workers can be solved. Supervision
can be divided into two types one is over-supervision and under-supervision (Cummings,
Bridgman and Brown, 2016). In under-supervision leads to lack of coordination,
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miscommunication and leaders do not proper care for their employees. On other hand, over-
supervision leaders to breeds resentment and lower moral. Main aim is to provide employees
with correct amount of supervision which will enable to develop skills and knowledge of
workers.
Arousal: It is important that leader at Marks and Spencer provides their employees with
proper support. This enables in developing strong relationship and workers will take all the order
which are provided to them by leaders. When proper support is not provided, then employees get
de-motivated and they fail to perform their roles and responsibilities effectively (Aurambout,
Shet, and Pettit, 2013). They start to dislike their work and they performance get highly affected.
For this, Marks and Spencer can focus on equal level of stimulation so that proper support to
workers can be provided and this enables them to develop their skills and knowledge.
Further, this model was then refined and it consists of four step model. This enables
leader to motivated and in improving their performance level. Following are four steps of
Situational Leadership model:
Directing: Employees at Marks and spencer can be provided with large amount of
direction and less amount of support (Rodrigue, Magnan and Boulianne, 2013).
Coaching: Low direction should be provided and high amount of support should be
provided.
Supporting: Both support and direction should be reduced towards employees.
Delegation: Employees condition should be determined and accordingly they should be
provided with support and direction.
By adopting these models cited firm that is Mark & Spencer will be able to provide guide
and support their employees. With the help of leaders firm will be able to make workers get
adopted towards the changes which they want to implement.
7. Marks and Spencer’s new management structure
Organizational structure can be determined as dividing the activities into different set of
tasks, and having proper supervision, coordination and equally dividing tasks (Khouja, Park and
Zhou, 2013). Organizations make use of diverse structure in order to have systematic flow of
information and work can be divided properly. This is done in order to achieve the organizational
goals and objectives. Further, different companies make use of diverse organizational structure
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and they select the structure as per the type of services and products which are provided by the
firm to its customers. In this context, following are the different type of organizational structure
which can be used by the Marks and Spencer:
Functional structure: This is a type of structure in which all the employees within the
organization are divided into different departments. This enables to perform their roles and
responsibilities effectively and efficiently (Haigh, Brubaker and Whiteside, 2013). Further, all
the departments are controlled by a department head and all the department head are controlled
by top management. This enables the firm to have effective flow of information and all
understand their part of role which has to be performed by them. All the information or the
decision are taken by top management and they convey the information to department head and
they later inform it to other employees within each department. Various type of department
includes marketing, HR, finance, operations, etc. Each of the department head have vast
knowledge related the area in which they work. However, one of the main disadvantage is that
interaction among departments is very less the operations which are conducted in one department
may not be known by other one (Moon and et.al., 2014). Each department head have proper
interaction with their employees and they easily identify the issues which are faced by them and
accordingly they arrange training and development program with the help of which issues faced
by workers if solved and they perform effectively and efficiently. For example, this type of
organizational structure is used by Tesco.
Divisional structure: In this type of organizational structure is mainly used by those
organizations which have their operations at different geographical locations. This type of
structure is helpful in order to make the firm control their operations which are at different
locations. It is important that the firm to have different set of operations which will enable them
to provide their goods and services to customers (Van Buren, Greenwood and Sheehan, 2011). In
this context, organization aims at hiring employees who will be effective enough to support in
achieving their goals and objectives. With the help of divisional structure companies are able to
handle their operation at different geographical location effectively and efficiently. Moreover, it
helps in dividing the all the tasks as per the skills and capabilities of the workers. For example,
McDonald's is an organization which provide their customers with different type of hand-burgers
(Evans, Stonehouse and Campbell, 2012). Their business is operated at different part of the
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world. In this context, they make use of divisional structure as it enables them to perform their
business operations efficiently.
Matrix structure: This is type of structure in which organizations make use of both
functional and divisional structure. These are mainly used by multinational company and enables
the organization to make use of both organizational structure at same time (Eden and
Ackermann, 2013). In order to manage the branches which are at different geographical
locations, it is important that the firm have different departments like marketing, Human
Resource, finance, operations, etc. so that all the departments work together with the help of
which firm will be able to provide their services to customers. This type of structure is followed
by Colgate which has its business operations at different geographical locations. It enables the
firm to make their operations in an effective manner (Ertek, Tokdemir and Tunç, 2015). Cited
firm have their operations with diverse departments and they all work together to achieve their
organizational goals and objectives.
Among all the organizational structure, cited firm can make use of functional operation as
it includes different department with the help of which firm will be able to make their business
operations more effective. Further, all the employees will be able to have proper information
related to work they have to perform (Fuchs, Bender and Glen, 2015). This enables them work in
an effective manner. Moreover, all the information can be passed on to all department in a
systematic. This will enable them to reduce confusions and develop coordination through which
organizational goals and objectives can be achieved. Lastly, it will also enable them to provide
their customers with satisfaction as they will be able to determined the needs and wants of
customers effectively with the help of skilful and knowledgable workers.
CONCLUSION
From this report, it can be articulated that employees are the face of organization as they
have direct interaction with customers. They know the issues and problems which are faced by
them. Accordingly, appropriate steps can be taken through which better services can be provided.
Further, employees should be provided with training and development program so that they
make use of their full potential and work towards make the firm achieve their goals and
objectives. Motivation play vital role in improving performance level. It is essential for
management to make use of motivational theories so that they will be able to improver their
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performance level and better services can be provided. Moreover, all the changes which firm
wants to implement should be communicated with workers as there will be people who may not
get adjust to the changes. All the benefits and importance to workers should be conveyed so that
they implement the change. Leaders play important role in guiding and supporting employees
and they are the one who can combine all the workers and make them improve their performance
level.
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8. REFERENCES
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Online
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