Impact of Leadership and Management on Asda's Performance

This report provides a comprehensive analysis of Asda Stores Ltd., examining its leadership styles, management practices, and their impact on organizational performance. The report begins with a brief overview of Asda, highlighting its market position, product offerings, and the rationale for selecting the company for analysis. It then delves into the leadership styles employed by Asda, focusing on democratic and transactional approaches, and explores the application of various management theories, including bureaucracy and behavioral management. The core of the report investigates the influence of organizational culture and management decisions on Asda's performance, considering both positive and negative impacts. Finally, the report suggests several strategies to enhance Asda's performance, including the implementation of transformational and laissez-faire leadership styles, as well as the adoption of scientific and behavioral management practices, aiming to improve employee engagement, customer satisfaction, and overall business outcomes. The report concludes by summarizing the key findings and recommendations for Asda's future development.

CONTEXT OF BUSINESS-2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Brief of company and reason of selecting company...................................................................3
Leadership style and management practice theory used in organisation....................................3
Impact of Organisation culture and management decision on the performance.........................5
The various ways to improve the performance of the ASDA.....................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business Context is known as the circumstances in which business activity operates.
Circumstances can be the environment, framework and background of the business. Asda Stores
Ltd. is the British supermarket retailer founded in the year 1949 by the founder J.W. Hindell.
These reports highlights the Brief description of the company Asda. Further these report
highlights management practices and leadership style used by the organisation. Further these
report highlights the impact of Organisation culture and management decision on the
performance of the organisation. These report also suggest various type of policy and strategy
which should be used by the organisation to improve their performance.
MAIN BODY
Brief of company and reason of selecting company
Asda Store Ltd. is the supermarket retailer organisation originated from UK, headquartered in
Yorkshire. Asda was founded in the year 1949 by the founder J.W. Hindell. Asda is the second
most successful retailer company on the basis of market share in the current market. Asda offers
their product from more than 633 stores all across globe including 339 store in alone UK. More
than 165000 employees are employed by the Asda. Asda offers variety of product to their
customer including fresh grocery, clothing & home, insurance etc. The reason of choosing Asda
for the report was that Asda has seen both positive and negative impact on the business in the
past few year. Asda was able to earn the second spot in the market but at the same time Asda has
faced the problem in merging with other company or adapting the culture of other company
(Nawaz, 2016). Asda has shown a good innovation in their product and services but at the same
time not able to handle the challenges which are offered by new entrant in the market. Asda has
able to gain a good market area coverage in the local market of UK but has faced the problem in
globalising the business in International market. Mix impact on the working of the Asda in the
last few year will help the report to explain each and every aspect of the management and
business in different business situation.
Leadership style and management practice theory used in organisation
Leadership style
There are mainly five different types of leadership style which are used by the
organisation in leading there work (Yahaya, 2016). Leadership style used are Laissez-Faire in
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which employee are free to make the decision about there is no interference of leader and
manager in their decision, Autocratic is the style in which only manager or leader takes the
decision in the team there is no contribution of employee, Democratic is the style in which both
employee and leader come together and discuss the problem but end decision is taken by the
manager and leader in the team. Transactional is the style in which leaders set the goal and ask
employee to achieve the goal, leader continuously supervise the work of employee in these style,
transformational is the leadership style in which leader uses different motivational tool to
motivate the employee to improve the efficiency and effective level of the employee (Borim-de-
Souza and et.al., 2015). Leadership style which are used by Asda are as follow:
Democratic Leadership Style: Asda uses democratic leadership style in the organisation, In
which all the employee and subordinate are included in the decision making which has helped
the firm in taking a correct decision at a time as in Asda employee and subordinate are the one
who attends the customer and understand them which eventually help the leader and manager to
known about the same as communication in democratic leadership style is good. They suggest
their valuable suggestion to the top management and the management consider them and take the
final decision (Lankoski, 2016).
Transactional Leadership Style: ASDA also use the transactional leadership style in their
organisation. In this leadership style a specific task is given be the leader to its subordinate. They
have to perform the task and on the basis of their performance rewards and punishment is given
by the management team and the leader. It helps the employees to work in a team and improve
their performance. The rewards and punishment in ASDA motivate their employees to perform
better and increase their efficiency and effectiveness.
Management and Organisational Culture Theory
There are five different type of theories which are mainly used by the organisation.
Theories are contingency theory in these theory only managers takes the management decision
after looking on the situation of the organisation, Bureaucracy theory is the theory in which
management of the organisation is performed on the basis of written rules and regulation, Taylor
scientific theory focusses on practice to reduce the the amount of input and also getting
maximum number of output from that, theory of X and Y divides the group in two part one who
are not performing well than theory of X and one who are performing well theory of Y,
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Behavioural management theory explains the human behaviour of the employee in the
organisation it help the business to address the motivation, expectation and conflict in the team
dynamic (Hayes, 2018). Theories which are used by Asda are as follow:
Bureaucracy Theory: Asda applies the Bureaucracy which helps the Asda to retain their
business ethics in the long run and also helps the business to take forward their business culture
to every store in the global market, which helps them to create a good working environment in
the team.
Behavioural Management Theory: Asda also applies the Behavioural management theory in
the organisation as through that company able to maintain a good working environment in the
team as through these policy company is able to known the current status of the employee in the
team, which helps firm to take the decision accordingly (Anderson, 2017).
Impact of Organisation culture and management decision on the performance
Culture and management style are the two big factor which influence the performance of
the business. Asda culture always believe in that if the employee working for you and the
customer availing your service both are happy then only you can succeed in the market. Asda
culture and management is also influencing the performance of the business in many ways such
as explain above that in Asda leaders and manager takes the opinion of their employees before
taking any decision in the organisation which improves the motivation level of the employee and
helps in improving the efficiency level of the employee which eventually interconnected with the
performance of the business as employee are the one who is main resources of the business for
example at the time of evaluation of technique or technology at Asda management takes the
opinion of employee which helps the employee to have an technique or technology of their
choice which helps them to understand technique very easily which eventually increase the
performance of the business. Asda management also sets the goal and guides the employee to
achieve that goal and rewards employee on their performance which force the employee to
complete their work more efficiently. Asda follows the Bureaucracy theory which helps the
business to carry forward the culture and ethics of the business which helps the organisation to
create a good working environment in the company which helps the business in improving the
performance of the business (Asrar-ul-Haq, 2016). Asda management always believe in
communicating with the customer as a result Asda conduct a customer survey which is known as
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Customer pledge which helps the management in business in knowing the need of the customer
and helps the business in changing the policy according to that which helps business in getting
more customer toward the organisation. Asda also has the culture to welcome their new
employee with open heart with the program like 'Best Welcome' and also gives them a four week
training and certificate for excellent performance in the training, which helps the company to
retain their employee for long time which decreases the employee turnaround rate and
recruitment cost is also decrease. Culture and management of Asda is also affecting them in a
negative way as due to policy of continuing their ethics and culture they were not able to adopt
the culture of another company in globalisation of the business which has cause a very negative
impact on the Asda, Due to that only Asda has also faced a problem in merging or collaborating
with big companies in both local and international market and it has forced the Asda to stop the
operation of that store in the international market (Nawaz, 2016).
The various ways to improve the performance of the ASDA
ASDA is a retail super market to sale the fresh groceries, insurance, George clothing and
home, food items etc. to improve the organisational culture and environment ASDA use various
strategies and apply various leadership style to maintain the relation in the organisation and
improve their performance. ASDA use various management theories to improve their
performance in market and capture the greater market share (Borim-de-Souza and et.al., 2015).
Leadership style
ASDA can also use the transformational leadership style to communicate with the top
management. Transformational leadership style help in setting meetings and transfer the
information to board of directors. It helps the organisation to motivate their employees and
inspire them to work more hard and with efficiency. The transformational leadership style
involve the management team to meet the organisational goal with the efficiency. It helps ASDA
to improve their performance by increasing the productivity and profit of the organisation.
In some particular area and situation ASDA can use the laissez-Faire leadership style to
meet the target. In laissez-faire leadership style the power and authority are in the hand of
employees. They take all the useful decision related to their work area. In the store of ASDA
they can use the Laissez-Faire leadership style. This style help them to understand the customer
problem ans address their problem timely. Employees can take the decision to meet the customer
demands in the store to resolve their problems (Lankoski, 2016).
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Management practices
ASDA use various management practices in their organisation like classical theories,
bureaucracy theory etc. ASDA can also use the scientific theory in their organisation to improve
their performance and growth rate. The scientific theory is given by F.W. Taylor. By using the
scientific theory ASDA can improve the each individual work efficiency. This theory provides
the basic framework to plan the activities in the organisation. It motivates the employees by
providing the rewards on the basis of their performance. It encourages the employees to get the
higher efficiency and effectiveness in their work and maintain the team environment. Scientific
theory also help to improve the ASDA by developing the skills of the employees through the
various training programme (Anderson, 2017).
ASDA can also use the behavioural theory to improve their work performance. The
behavioural theory is based on the human relation. It helps to improve the relation between the
employees and employer and the customer and employees. It addresses the various working
environment problems like conflict, motivation, productivity improvement, team work etc. By
following the behavioural management practice ASDA can strengthen their external and internal
environment.
To improve the organisational structure of the ASDA, the management team can use the
various strategy like they can conduct the meetings to address employees and customer problem.
They can also use the various promotional techniques to capture the consumer attention. Social
media and advance technology help them to get the instant feedback of consumer and deliver
their product worldwide respectively (Asrar-ul-Haq, 2016).
CONCLUSION
After going through above report it has been summarised that Asda is using two type of
leadership style democratic and transactional style to lead the team and also two type of
management practice theory are used by the organisation which is proving good for the
organisation as the organisation is growing in size but the performance of the organisation can be
increased by using other leadership and management practice theory.
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REFERENCES
Books and Journals
Nawaz, Z.A.K.D.A. and Khan_ PhD, I., 2016. Leadership theories and styles: A literature
review. Leadership,. 16. pp.1-7.
Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment: literature
review. Journal of Management Development. 35(2). pp.190-216.
Borim-de-Souza, R. and et.al., 2015. Sustainable development and sustainability as study objects
for comparative management theory: proposing styles of reasoning for an unknown
metropole. Cross Cultural Management. 22(2). pp.201-235.
Lankoski, L., 2016. Alternative conceptions of sustainability in a business context. Journal of
cleaner production. 139. pp.847-857.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Anderson, M.H. and Sun, P.Y., 2017. Reviewing leadership styles: Overlaps and the need for a
new ‘full‐range’theory. International Journal of Management Reviews. 19(1). pp.76-96.
Asrar-ul-Haq, M. and Kuchinke, K.P., 2016. Impact of leadership styles on employees’ attitude
towards their leader and performance: Empirical evidence from Pakistani banks. Future Business
Journal. 2(1). pp.54-64.
Online
Types of leadership style and management practice theory, 2013 [online] available
through<https://mahabubwlc.wordpress.com/2015/05/01/theory-of-leadership-and-managment/>
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