Unit 501: Principles of Management and Leadership in an Organisation

This report, centered on Unit 501 Principles of Management and Leadership in an Organisational Context, delves into the impact of legal status on organisational governance, exploring the different types of organisations (public, private, and voluntary) and their structures. It examines the purpose of mission and vision statements, using Marks and Spencer as a case study, and analyses how organisational structure influences management roles, focusing on the interrelation between marketing, finance, and HR departments within M&S. The report also discusses the significance of organisational values and ethics in management decision-making, emphasizing their role in fostering customer trust and market value. Furthermore, it differentiates between management and leadership, exploring how management and leadership styles are adapted in different situations and the skills and knowledge required for effective management. The report also looks at the factors that influence communication techniques, and the behaviours needed for effective leadership, and proposes an approach for building a culture of mutual trust and support within teams.

Unit 501 Principles of
Management and Leadership
in an Organisational Context

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Impact of legal status on the governance of an organisation .....................................................3
Purpose of mission and vision of Marks and Spencer ...............................................................4
Impact of organisational structure on management roles ..........................................................5
Discuss the impact of organisational values and ethics on management decision making ........7
TASK 2 ...........................................................................................................................................7
Relationship between management and leadership ....................................................................7
How management and leadership styles are adapted in different situations ..............................9
TASK 3 ...........................................................................................................................................9
Knowledge and skills required for management and leadership role ........................................9
Factors that impact on selection of communication techniques needed for effective
management .............................................................................................................................11
Behaviours required to be effective in a management and leadership role ..............................11
Develop an approach for building a culture of mutual trust, respect and support with
individuals as well as teams .....................................................................................................12
CONCLUSION..............................................................................................................................13
References......................................................................................................................................14

INTRODUCTION
Leadership and management are both important factors that affects the operations and
activities within a company. A good and effective leadership is needed for managing all the
employees working in the organisation. For operating a successful business it in needed that
managers as well leaders have worked effectively for attaining organisational targets and goals.
The company considered in this company is Marks and Spencer which is a retail sector
company. The headquarters of this company are situated in London, United Kingdom. It was
founded by Michael Marks and Thomas Spencer in year 1884. This company includes impact of
legal status on governance of the company. It includes vision, mission and purpose of the
company. There is explanation about relationship between management and leadership and
impact of value and culture on leadership and management (Birasnav, 2014). There is discussion
on Knowledge and skills required for management and leadership role and factors that affect
communication techniques required for effective management.
TASK 1
Impact of legal status on the governance of an organisation
Organisations have the responsibility for managing and controlling various functions and
operations which are to be performed within given time. There are basically three types of
organisations present within market such as public, private and voluntary (Bolden, 2016). All
these have their own objective and aim. The main thing that is common among all the
organisations is that they want to earn profit and money. The legal structure of all these
organisations is mentioned below -
Private organisation
This type of organisation is one in which main objective of running company is to make
money and earn profits. These can be owned by single person, group of people, partnership,
corporation and agency. The legal structure of private organisation is mentioned below - Sole traders – These are defined as those organisations which have to manage business
operations on their own. While running business, profit or loss whatever the result is, the
consequences are faced by owner. The main owner of company focuses on different
aspects like operations, legal and financial while running business.

 Partnership – This is type of organisation in which less funds are needed for running
business. There are two or more partners who work together for running business in
partnership (Boyatzis, 2014). Example of private organisation is Lewis Partnership. Public limited companies – These organisations can sell their shares freely within the
marketplace. For example: Tesco and Sainsbury's.
 Private limited companies – These organisations are owned by single owner but they
cannot sell the shares within market, e.g. - Airdri.
Public organisation
These organisations are those which deals in products or services which are necessities in
life of people (Bush, and Glover, 2014). This includes gas, oil, steel, coal, thermal energy,
fertilisers, etc. Main objective of these organisations is to provide basic necessities to people.
Lawful structure of the organisation is described below - Central government department – These companies are managed by central government.
 Local authorities – Such organisations are operated by local or state government.
Voluntary organisation
These organisations are started for providing free service to poor people. The legal
structure of voluntary organisation is mentioned below - Trust- In context of this, some specific trustees are there who provide funds and money
for running the voluntary organisation. s
 Others- Community, Royal charter bodies, etc.
Marks and Spencer is a private organisation that is providing products and services in
more than one country. He legal structure followed by this company is a public limited company
which is owned by Michael marks and Thomas Spencer.
Purpose of mission and vision of Marks and Spencer
Private Limited:
The private owned organisations are those who have the aim of increasing profits and
money earned. They also have the objective of performing well within market and develop
goodwill and reputation among market. There is collaboration between top level and middle
level managers for running business effectively. Marks and Spencer is a retail company that is
dealing in clothes, apparels, super market, luxurious home products, etc. These products are
provided in different countries and profit is earned. The global presence of this company helps in

covering large target market (Bush, Bell, and Middlewood, eds., 2019). This company conducts
effective market research for analysing trends and attitude of customers. Background: This company was started in the year 1884 by two friends Michael marks
and Thomas Spencer. This company serves in more than 12 countries across the world.
The international expansion of this company got a great success since the the starting. Vision: The vision of Marks and Spencer is to work in global congruence. The main
objective is to guide strategy as well as decision making for the company. Mission: The mission statement is to develop and provide inspirational and quality
products to customers. Objectives: The main objective of this company is to maximise profits and money. This
company has an objective to increase market share of the company as well as reputation
within market. Products: M&S is offering various products like home products, top rated bedding,
cookware, accessories, clothing, Egyptian cotton towels, crockery, dressing products, hair
appliances, etc. Size: This company is having around 959 stores across UK. There are more than 600
stores that are involved in selling food products.
 Structure: Functional organisational structure is adopted in M&S. This makes it easy for
managers to spread information to all organisational level (Cherry, and Jacob, 2016).
Impact of organisational structure on management roles
There are different departments that work together in M&S for attaining organisational
goals and targets. They are interrelated to each other and collaboratively work for achieving the
assigned goals within less time. The interrelation among these departments is described below -
Marketing and finance – Main aim of marketing department within M&S is to conduct
marketing campaigns and attract more number of customers towards buying products their
company. The advertising and marketing activities have to make positive decision in process of
consumer buying. Finance is required for conducting various campaigns at different locations.
The finance department provides budget for organising advertising campaigns and marketing
programs.
HR and marketing – The human resource manager of the company has responsibility of
managing activities associated with personnel (Davis, and Jones, 2014). It is essential for

marketing managers to have effective employees who can work in the company and make strong
marketing strategies and plans. The collaboration between marketing and HR department is
important as it will help in taking care of all the employees working in marketing department. On
other perspective, talented employees will be hired in the company that will provide fruitful
objectives by doing great work.
Organisational structure
Organisational structure is defined as the hierarchy that is followed within an
organisation for performing various operations and activities. In context of M&S, there are
various departments which are assigned particular tasks and activities for attaining organisational
targets and goals. The structure followed within Marks and Spencer is functional.
The organisational structure in M&S can decrease bureaucracy for making employees to
have knowledge about making positive decisions because of less communication between low
management levels and upper management levels (Diamond, and Spillane, 2016). The
structure followed in this organisation helps in achieving goals of high expectation of staff.
Communication department – This is defined as the area in which there is exchange of
information between two departments of the organisation. Oral communication is one in which
conversation takes place while placing goods with other business. This can be in the form of
conference. Written communication in M&S takes place between upper level and middle level
managers for dealing with different business situations. Internal communication is one in which
the exchange of information takes place using a legal format. This can take place face to face or
through Email.

Discuss the impact of organisational values and ethics on management decision making
The organisational values and ethics is an important part of the company as there is need
to provide quality products and services to customers. The decision making process of M&S
consists top executives that take decisions and these are informed to lower level as well as
middle level managers. The incorporation of addressing ethics in decision making of company
helps in ensuring that company develops strategic goals that can be attained in specified time.
Ethics has to be adopted in all process of M&S so that quality products are provided to
customers. This is helpful in achieving customer's trust and loyalty. Another thing is increased
value of company in market (Doh, and Quigley, 2014). All the employees working in M&S are
provided guidance for doing great work and provide good services as well as products to
consumers. Main objective of all employees and staff of M&S is to maximise profit and
customer satisfaction. This is done through effective and strong marketing. Employees are
provided timely bonus and incentives so that they feel involved and engaged towards working
and attaining organisational goals. Also, it is responsibility of managers to make sure that they
are following all regulations and rules given by the company while making and delivering
products.
Impact of ethics – If Marks and Spencer decides to launch a new product within market,
it is important that management is following all regulations followed by retail industries. This
helps in increasing goodwill and reputation of company among customers.
Impact of organisation value - It is essential for Marks and Spencer to provide products
that are of high quality and value (Donate, and de Pablo, 2015). As this company is serving in
market since more than a decade, there is high value within market. This company is having
advantage of attracting customers to buy products offered by M&S.
TASK 2
Relationship between management and leadership
Management: The administration system is defined as the control of all the tasks carried
out by an organization. In order to ensure the proper conduct of activities, it is very necessary for
all companies to control their procedures. In Marks and Spencer supervisors carry out their
duties properly, helping them function properly. The managers of Marks and Spencer often
carries out the operations of finding better ways for company improvement and regulating all

measures taken by staff. Proper implementation of all procedures enhances the firm's profits and
efficiency.
Leadership: This is defined as the method of guiding workers to accomplish personal as
well as corporate goals. Leadership is regarded as management. We mainly have a duty to
inspire and make employees efficient (Goetsch, and Davis, 2014). It is also responsible for
supporting all workers in carrying out the tasks assigned. Different types of management are
used by various types of organizations. Transformative leadership style is accompanied by
Marks and Spencer where leaders offer subordinates special project and sense of direction and
strive to achieve the same goals.
Difference between management and leadership:
Basis Management Leadership
Performer Managers carry out all operations
under supervision.
Leaders carry out all leadership
operations
Risk
Managers monitor uncertainty in the
cycle to save capital energy for
potential growth and to improve overall
production.
When conducting leadership
operations, they take risks to cope
with failure and result to the
achievement of the company.
Long and
short run
It is used to compensate for the shorter
term, where administrators attempt to
control wasteful business operations.
Leadership is a lengthy-term
planning process and an endeavour
that produces operational
performance.
The table described indicates which leadership and management were the different roles
of administrators and members. Both of them have specific responsibilities and it is of great
significance that they all satisfy them properly. Leaders and managers of Marks and Spencer
perform their responsibilities correctly in order to achieve increased profits through the entity
and actual corporate productivity (McCaffery, 2018). When executives and representatives carry
out their tasks efficiently, they will help businesses to identify and develop efforts to achieve
their long-term strategic goals.

How management and leadership styles are adapted in different situations
There are different kinds of leadership styles which companies should follow to conduct
business. They all allow companies to achieve their business goals. For leaders, it is important
that they inspire their employees to carry out all their operations. these are discussed underneath:
Behavioral: The leadership manner is depended upon on evaluation of various workers '
attitudes. With the assistance of this, leaders evaluate what their fellow officers are prepared to
do or what they are capable of doing. Manager build situations to evaluate where their superiors
will face difficulties because their company needs to address future implications.
Contingency: This kind of leadership says that while the way leaders attempt to address
a particular issue or style corresponds to the critical situation of a company's performance. By
using this kind of leadership, business leaders of Mark & Spenser evaluate whether members
will reliably operate when the effects of the productivity of the organization are impacted
(Molchanov, 2016).
Charismatic: Max Weber, a German sociologist, established this style of leadership.
With the aid of members of this kind, the employees are empowered to carry out all their tasks
properly. This completely depends onto the charisma and persuasion of rulers and can
manipulate followers with the aid of such attributes and ensure they fully discharge all their
obligations.
Transformational: It's a style of leadership that most entities obey as it improves the
work quality. In Marks and Spencer staff are inspired by requesting them of an input on the plans
they devise to develop the whole business. The Marks and Spencer executives hold formal and
informal sessions to draft a strategy in order to perform operation.
TASK 3
Knowledge and skills required for management and leadership role
Role Knowledge Skills Percentage of
personal
development
Technological
knowledge
The leaders of M&S
must know what are
the theoretical
The leaders of M&S
have good
technological skills
The personal
development of
leaders of M&S must

knowledge about new
tools and techniques
for delivering of
products and services.
that help in analysing
new and innovative
techniques needed for
improvement.
be improved for
managing work. s
Interpersonal skills It is important for
leaders to have good
interpersonal skills and
communicate with
employees
appropriately.
When leaders are
having good
interpersonal skills
then it is easy to build
trust and relation
among employees.
The intensity of
interpersonal skills of
M&S leaders is more.
Delegate and enable
delivery through
others
The leaders have to
assign tasks and
activities to individual
properly.
M&S leaders can
effectively assign tasks
and activities to people
according to their
abilities.
It is important for
leaders to have good
delegation and guide
employees effectively.
Data, security and
management and the
effective use of
technology in an
organisation
This is also required
by leaders to manage
data related to their
customers as well as
products (Quince and
et.al., 2014).
Security of data is
important for the
company to manage
all activities of the
company in effective
manner.
In context of leaders of
M&S, there is
effective use of
technology by leaders
so that there are no
errors and problems.
Time management
and prioritisation
techniques
Good time
management is needed
for planning and
managing different
activities required in
the company.
It is essential for all
leaders to properly
manage their time and
do great work so that
targets and goals can
be achieved in given
time period.
Leaders must have the
responsibility of
managing and
controlling different
tasks in effective
manner.
Leading and
managing teams
It is important to
manage and lead
There are different
teams within M&S
The leaders of Marks
and Spencer are

teams for attaining
organisational goals.
and they are assigned
work according to
their skills.
responsible for
managing work
effectively. s
Factors that impact on selection of communication techniques needed for effective management
Communication is the way by which leaders spread their message to different
subordinates and employees. For leaders of Marks and Spencer, it is essential to have proper
communication in order to attain organisational targets and goals. The different ways of
communication used by leaders are oral, written, verbal, non verbal and visual. These are used
by managers and leaders of M&S to attain the goals. Some of the communication ways are
mentioned below -
Verbal – This is use of language for transferring information by using gestures and signs
while interacting with others. This is an important communication type that is used by leaders of
Marks and Spencer while giving presentations, phone calls and attending video conferences. This
is also included in one to one conversations (Renz, 2016). Verbal communication is an essential
and effective way of communicating message to employees and subordinates.
Non Verbal – This type of communication includes facial expressions. It is essential for
the leader of company to smile while communicating with others. This helps in building good
relations with employees and subordinates working in the company. Efforts are made for
displaying positive body language when there is need of alert, open and positive about the
surroundings.
Visual – This is type of communication used by leaders for communicating with
employees effectively and managing work. While attending video conferences and webinars,
leaders have to communicate with different people who are sitting in different parts of the world.
Visual communication enables a leader to interact with subordinates in effective manner.
Written - This is an act of writing, printing or typing symbols or letters for transferring
information. It is concluded that all leaders of M&S have to use the way of writing for
communicating message to their employees. This means that they have to write Emails, letters
and messages to the employees and subordinates for conveying their message effectively.

Behaviours required to be effective in a management and leadership role
An effective leader has various responsibility and they have to work towards success of
the company. Leaders have greatest impact on decision making of the company. Some of the
behaviours of leaders of Marks and Spencer are mentioned below -
Visionary with clarity of purpose – Leaders have to show compelling vision that can
attract different people. Leaders develop innovative vision and the main aim of this is to make
the organisation to move forward. The managers of M&S have developed great vision for their
company to attract a lot of customers towards it's products and services.
Excellent communication – It is important for leaders to have good communication skills
so that the can easily guide employees for working in better manner (Riaz, and Khalili, 2014).
In context of M&S, leaders communicate with employees through video conferencing, Emails,
face to face interaction, etc. A leader is successful when he is able to communicate vision and
mission of the company with employees effectively.
Caring about subordinates – Marks and Spencer requires supervisors who can work in
an effective manner. Employees can respond in effective manner with the people they are doing
work with.
Honesty – This is also an essential factor that must be present within leaders for doing
great work and performing well. Honest leader is able to make other individuals work according
to guidelines followed in the company.
Develop an approach for building a culture of mutual trust, respect and support with individuals
as well as teams
It is essential to build mutual trust, respect and support with the employees and team
members while working on the company. Within Marks and Spencer, it is concluded that it is
developing culture of trust and respect within the employees for managing work in an effective
manner. This can be developed within teams and individuals through following ways -
Listening to every person - It is essential for leaders of Marks and Spencer to listen to all
employees working in the company. This helps in developing trust and care among employees
(Rothaermel, 2015). It is also useful for controlling and managing personnel of the company
effectively.

Providing employees sense of care - Caring is essential factor that attracts people of the
organisation effectively. Giving employees and subordinates sense of care will bring managers
and employees close and in this way, goals can be achieved in less time.
Helpful nature – Leaders of Marks and Spencer are helpful in nature and they provide
good services to people across the world. Subordinates and employees need continuous care for
managing their work effectively (Shin, and et.al., 2015). If leaders have good relation and bond
with employees, it is easy to make them work according to the provided guidance.
Encouraging people to not copy others – A good leader is helpful for managing the work
in an effective manner. There must be encouragement among subordinates and employees for
doing good work and managing work in proper manner (Thorpe, 2016). It is not important to
copy other people and have their own identity while doing work.
CONCLUSION
From the above discussion, it is concluded that leadership and management are two
essential factors which helps an organisation to have smooth running of the company. An
effective leader is responsible for handling and managing different business situations and
having positive attitude towards attaining organisational goals. There are different leadership
theories that are followed for managing the work in an effective manner. Knowledge and skills
required for management and leadership role.

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