MGT 2030 - Organizational Behaviour: Loblaw Management System Analysis

This report offers a comprehensive analysis of the management system within Loblaw Companies Limited, a major Canadian food retailer. It delves into the organizational behavior issues present, particularly focusing on poor goal management, inadequate leadership structure, and ineffective communication systems. The report identifies these issues as key contributors to employee performance challenges and a negative work environment. Drawing upon organizational behavior theories, such as goal-setting theory and Vroom's expectancy theory, the report provides a detailed diagnosis of the underlying problems. Furthermore, the report offers actionable recommendations, including implementing effective goal-setting strategies, developing robust leadership programs, and promoting inclusive communication channels. The goal is to improve employee engagement, productivity, and the overall performance of Loblaw Companies Limited.

Running head: MANAGEMENT SYSTEM IN LOBLAW COMPANIES LIMITED
Management System in Loblaw Companies Limited
Name of the student
Name of the University
Author note

2MANAGEMENT SYSTEM IN LOBLAW COMPANIES LIMITED
Table of Contents
Introduction................................................................................................................................2
Issues in Loblaw Companies Limited........................................................................................2
Recommendations......................................................................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
Organizational Behaviour refers to study that involves effect of the individuals and
the group within the framework of an organization. It can be said to be directly related to the
understanding and the controlling of the human behaviour in a company. It helps in
predicting the behaviour of the individuals within the organisational setting. It is indicative of
that part of the management that represents behavioural approach to the management
(Buchanan, 2019). It is influenced by the various kinds of the social sciences like the
psychology, sociology and the anthropology. It is indicative of the multidisciplinary study of
employee interaction along with the organizational process that helps in the creation of a
cohesive organization. Loblaw Companies Limited refers to the Canadian food retailer that
encompasses the corporate and the franchise supermarkets (Loblaw.ca., 2020). The company
operates the private label program which is inclusive of the grocery, clothing along with the
household items. This report discusses about the issues taking place in Loblaw Companies
Limited that have contributed to the organizational behaviour problem in the organization.
This report provides the recommendations that can help the company in addressing the
problems taking place in the organization.
Issues in Loblaw Companies Limited
There exists the poor goal management system in the company that is raising a hurdle
in the path of Loblaw Companies Limited. Job description which is provided by the company
is not proper that hampers the proper functioning of the organization. The objectives of the
company are not transparent and hence it does not provide any kind of the encouragement for
the employees of company. The goal setting theory of motivation talks about the fact that the
stating of the specific goals can pave the path for the higher performance of the employees. It
can increase the willingness of work of the employees that can result in better output for the

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employees of company. The job descriptions have an effect on the performance of the
employees and it helps in guiding the managers along with the subordinates in their everyday
life (Wilson, 2018). The job descriptions can help the prospective employees in
understanding whether they are fit for a particular position that can help them in working in a
company in an effective manner. It can play a crucial role in increasing the productivity of
workers as it makes the workers in laying focus on the crucial aspects of the job. The
management cannot evaluate the employees in the proper manner that has a bad effect on the
goals of an organization. The evaluation can be meted out effectively in the event of an
organization having the transparent objectives that can drive the performance of the workers.
The workers of Loblaw Companies Limited lacks the direction that hampers the flow of work
of the employees. The systems theory talks about the fact that the various components of an
organization should be inter-related that can aid in the working of a company (Reed &
Burrell, 2019). The changing of one part of the system can have an effect on the other parts of
the system and an organization should lay emphasis on the aspect of the co-ordination that
can help in the growth of a company in the long run (Barry & Wilkinson, 2016). The
objectives of company are not framed in the proper manner that affects the performance of
activities of company. It has a negative effect on strategic direction of company that causes
harm to the development of the organization. The poor recruitment advertisement of the
company have failed in attracting the pool of the suitable candidates that have hampered the
progress of the company. The company have failed to identify appropriate competencies of
the workers that have prevented the progression of the company. The management have not
explained clearly to the employees about the vision of the organization that impairs the
performance of the workers. The human resources in the company have failed in the area of
communicating to the workers about the objectives that can be stated to be a negative factor
for the company.

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The leadership structure in the company is poor and the organization does not have a
systematic leadership structure that acts as a barrier in the path of the performance of the
employees. It has a negative effect on performance along with morale of the employees who
are working in the company. Vroom expectancy motivation theory talks about the fact that
the individuals act in a certain manner as they feel the motivation of selecting specific
behaviour over the other as they feel that they would be able to get the rewards out of that
choice. Motivation pertaining to behaviour selection can be stated to be determined by
desirability of outcome. The leaders are not able to instill value of the ownership to the
members of the team that has a detrimental effect on the performance of workers. The
operational goals in the company are not determined in the clear manner that has an effect on
the superior-subordinate relationship in the company. It have made the employees of
company indifferent to their responsibilities that have declined the performance of the
workers in the company (King & Lawley, 2016). It have paved the path for the negative
workplace environment that have decreased the profit of Loblaw Companies Limited. The
scientific management theory talks about the fact that the management in a company should
be on the basis of the principles of the engineering that can aid in the profitability of a
company. It lays emphasis on the aspect of the incentives that can improve the productivity of
the workers. Loblaw Companies Limited does not have the scientific management system
that interferes with progress of work in company.
The managers in Loblaw Companies Limited does not acknowledge the aspect of the
cultural diversity that have raised the challenges for the company. The managers in the
company fails to manage situations of the diversity that have magnified communication
challenge taking place within the company. Argyris theory is on the basis of the proposition
that the management practices can have an effect on the behaviour along with the growth of
an individual. It states that the individuals can become matured in an organisation in the event

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of shifting from pyramidal organisational structure to that of the humanistic system. An
organisation should encourage the talent from the diverse kinds of the backgrounds that can
lead to resolution of conflict in a company. It has a detrimental effect on the process taking
place in the organization that have adversely affected production of the company. There
should be the promotion of the cultural diversity in the workplace that can aid in solving the
problems taking place in the company (Eriksson & Hägg, 2016). The individualities of the
people are not acknowledged in the organization that has a bad effect on the performance of
the workers (Ayoko & Ashkanasy, 2019). The diversity training is not conducted in the
organization that acts like a barrier in the path of performance of the employees. The
managers in the company fail to meet the diversity goals that have deteriorated the
performance of workers. There does not exist the open communication lines in Loblaw
Companies Limited that obstructs the transmission of the new ideas in the company. The
organization does not provide the facility to the employees to celebrate the cultural rituals
along with the rites that works like a barrier in the path of the cultural diversity (Jamal, 2018).
The activities that are carried out in the company does not demonstrate the respect for the
cultural diversity that has made the integration of the people from the various kinds of the
cultural backgrounds difficult in the company.
Recommendations
Loblaw Companies Limited can adopt suitable strategies that can help the company in
addressing the problems pertaining to organizational behaviour in the proper manner. Loblaw
Companies Limited can take recourse to an effective system that can help in the area of
setting the goals in the company. The business goals should be linked with the functional
business objectives and they should be converted into the team-performance goals that can
aid in the area of goal setting of the workers. It can help in encouraging the accountability of
the workers that can drive the better performance of the workers in a company (Cochran et

7MANAGEMENT SYSTEM IN LOBLAW COMPANIES LIMITED
al., 2017). It can have a direct effect on the performance of the workers in a company. The
goals should be set towards the beginning of each year for the employees of Loblaw
Companies Limited and they should be framed on the basis of the environmental changes that
can aid the workers of the company. The targets should be updated from time to time that can
be of benefit for the workers of the company. Loblaw Companies Limited can run the internal
along with the competitive benchmarking that can help the company in comparing the
performance in the different areas in the organization (Dodge, 2016). It can help the
company in gaining a competitive edge that can prove to be helpful in the area of business
goal-setting of company. The information technology should be leveraged in Loblaw
Companies Limited that can aid in the process of operations of the company. The goals
should be communicated in an open manner in the company that can be instrumental in
driving the efficiency of the performance of the workers.
The human resources in Loblaw Companies Limited should create the leadership
development strategy that can help the company in taking care of the aspect of the leadership
structure. The people in the department of the human resources of company should involve
themselves in the various aspects of the leadership development that can aid the company in
finding the strategic solutions. It can help the company in addressing the future leadership
demand that can work for the betterment of the company. The leadership development
programs should be designed in the company that can aid in supporting the corporate strategy
(Koohang, Paliszkiewicz & Goluchowski, 2017). It can help in the creation of the
organizational along with the individual that can bear the positive results for a company. The
human resources management of the company should set aside the financial along with the
managerial resources that can help in the development of company. Loblaw Companies
Limited can identify the gaps in the area of the talent development capabilities that can help
in the development of the proper leadership structure in company. The organization can take

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recourse to vertical leadership structure that can aid in the implementation of the
organizational hierarchy on the basis of the clearly defined roles. It can be helpful for the
workers of Loblaw Companies Limited in recognizing chain of the command that can help in
moving forward the organization in the right direction.
Loblaw Companies Limited can undertake the suitable strategies that can aid in the
promotion of the inclusiveness in the company. The company can offer the implicit bias
training that can raise the awareness of the employees of the company. It can prove to be
helpful in changing the behaviour of the employees of company that can enable an
organization in going forward in the future. The organization can provide the mentors that
can help in resolving the conflicts related to the cultural diversity in the company. The
underrepresented employees can be provided with the support along with the growth which
can help the company in resolving the challenges pertaining to the cultural diversity
(Bouncken et al., 2018). There should be the facility of the executive training in the
organization that can encourage the personal evaluation of the people who are in the senior
level in the company. The workplace should be created that values the various kinds of the
perspectives that can assist in the fostering of the productive business relationship. It can help
in the creation of the inclusive company culture that can help in retaining the diverse talent of
the organization. The employees should behave on the basis of the expectation of the other
people that can help in building the bond in between the employees of company.
Conclusion
Loblaw Companies Limited is not equipped with the proper goal management system
which raise the hindrance for the workers. The company does not frame the job descriptions
in the proper manner that hampers the functioning of the employees. The organization does
not have the right leadership structure that have a bad effect on performance of employees. It
is instrumental in bringing about the deterioration in the morale of workers that can affect the

9MANAGEMENT SYSTEM IN LOBLAW COMPANIES LIMITED
performance of workers. Managers in the company does not recognize cultural diversity that
raises challenges for company. The senior managers in the company are unable to resolve the
diversity issues in company which have increased the communication challenges within the
company. Loblaw Companies Limited can link the organizational goals with that of
functional business objectives that can greatly help the team in the attainment of the goals. It
can encourage accountability of employees which can drive better performance of the
employees. There should be leadership development programs in company which can offer
support to corporate strategy of company. Implicit bias training can be provided to workers
that can be helpful in raising awareness of workers.

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References
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Bouncken, R. B., Reuschl, A. J., Barwinski, R. W., & Viala, C. (2018). Cross-cultural
diversity management in service firms. European Journal of International
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Buchanan, D. A. (2019). Organizational behaviour. Pearson UK.
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King, D., & Lawley, S. (2016). Organizational behaviour. Oxford University Press.

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