Organisational Theory: Management Style of UK Retail CEO Morrisons

This case study examines the management style of David Tom Potts, the CEO of Morrisons, a major UK retail company. The report delves into the leadership styles employed, specifically autocratic and democratic approaches, and analyzes their impact on organizational performance, particularly during the COVID-19 pandemic. It explores the functions of management, including planning, organizing, leading, and supervising, as applied by Potts. The study assesses the steps taken by the CEO, such as the implementation of cashless and contactless delivery systems, and their effects on company culture and employee motivation. It also analyzes the effects of power, influence, and conflict within Morrisons, and explains the types of motivation, such as Maslow's hierarchy of needs, used to engage employees. The case study concludes with recommendations for improving overall organizational performance and provides a comprehensive overview of the challenges and strategies within the retail sector.

Management Style of UK
retail CEO

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................5
TASK A...........................................................................................................................................5
Determine the management style with defining the function and principle used by CEO of
retail organisation...................................................................................................................5
TASK B...........................................................................................................................................6
Assess the steps taken by CEO with their impact on culture and work of employees to attain
the organisational performance..............................................................................................6
TASK C...........................................................................................................................................7
Determine the leadership style used by David Tom Potts, CEO of Morrisons to increase the
effectiveness of organisation..................................................................................................7
TASK D...........................................................................................................................................8
Analyse existing effects of power, influence and conflict in Morrisons................................8
TASK E............................................................................................................................................9
Explain the types of motivation used by selected organisation..............................................9
TASK F..........................................................................................................................................10
TASK G ..................................................................................................................................11
Suggestions in response to various debates in reference to increase overall organisational
performance .........................................................................................................................11
CONCLUSION..............................................................................................................................13
.....................................................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Management is important in every organisation and to manage all activities for proper
work and growth in market. For this report, Morrisons is chosen as it is the retail sector in United
Kingdom and is the fourth largest retail industry in UK. David Tom Potts is the CEO since 2015
and they deal in various product such as food, clothing, books and many more. Currently they
are operating in various location and have 494 stores in different areas. In this report it explain
the management style with stating the principle and function used by management. There are
various leadership style and different organisation adopt according to that but Morrisons use
autocratic style of leadership. In this report, it include the steps taken by CEO with the impact in
culture of organisation such as contactless delivery and cashless payment. This help organisation
to motivate employees and satisfying their customer during the situation of COVID-19. It is also
analysed the effect of conflict, power and influence in selected organisation. There are also some
recommendation to enhance the performance of organisation.

MAIN BODY
TASK A
Determine the management style with defining the function and principle used by CEO of retail
organisation
About CEO of Morrisons: David Tom Potts is a British corporate executive and CEO of
Morrisons since march 2015, it is a retail sector organisation in United Kingdom. He was born
on 18th march 1957 and he educated in Hartshead County Secondary School, Ashton under Lyne.
Management issue: The issue faced by organisation during the situation of lock down
due of COVID-19 is that there offline sale is decreased as no one is buying their product from
the retail stores. The management faces many problem because in this pandemic all people are
purchasing online they do not prefer to buy from departments, so demand and sales of online
increases and offline decreases.
To decrease the negative impact in the functioning of organisation David Tom Potts has
to take measures for effective function and they are reducing the staff members during this
pandemic (Alda and Ferruz, 2016). Morrisons have to deal with this problem and solve the issue
to maintain their reputation and brand in the market.
Management style of David Potts:
Morrisons deal in retail industry as they are developing their online platform to sell their
products through their own website so they can remain in competition. The management of
selected organisation follow authoritative style so they can determine roles ad responsibilities of
each employee in different department. This help them to delegate and assign the task and
functions to employees to achieve the organisation objective in an appropriate manner.
Management function used by the CEO of Morrisons:
David Potts apply functions of management in organisation for the effective performance
of work. They use four function which is given by Henry Fayol and this is important and
common function which is followed by every type of organisation. Some of the functions of
management are mentioned below which is used by CEO of Morrisons: Planning: This is the important function of management where they plan about the task
that what is to be done, at which time to complete the task on time. David Potts use the

functions to develop strategies which help to accomplish task on time, by communicating
those strategies to employees so they can finish their work in proper time. Organising: Morrisons uses this function to delegate the responsibility according to skills
and competencies of employees (Crandall and et. al., 2019). They also monitor that there
is proper resources available for employees so they produce high quality goods or
services, this improves the productivity level and profit of organisation. Leading: This function helps to direct and guide employees by developing objectives and
communicating to employees during challenges so they can overcome this problem in
proper way. David Potts uses this theory to eliminate the problem that can be arise during
COVID-19 which gives negative impact in organisation.
 Supervising: According to this function manager continuously check all activities related
to operation and take some information regarding the changes happen in business
environment which help them to achieve objectives successfully. David Potts uses this to
supervise the performance of employees.
TASK B
Assess the steps taken by CEO with their impact on culture and work of employees to attain the
organisational performance
Due to the situation of COVID-19, the organisation faces many challenges but after this
pandemic they have opportunities to increase their profit by using the company's website for
online purchase of products and services. Some of the steps taken by David Potts and their
impact on the culture of organisation are described as under: Cashless delivery system: This system is very important in pre or post pandemic because
it help both organisation and customers to protect themselves from virus. This process
states that while delivering the products they will take the payment from customer
through debit/ credit card, online payment application and other online mode of payment.
The organisation also introduce some offers with collaborating with institution such as
discount on visa cards, cashback offers, gift card and many more (Friesenhahn, 2019).
This help them to attract customers and also to enhance profitability of company. The
impact on organisational culture is that they have to give training to each employee such
as how to receive money or to use the swipe card machine.

 Contactless delivery: This is the main step taken by CEO that they will deliver the
products to customers on their address outside which is given by them on purchasing the
product online. This will help organisation and customers both to reduce the risk of virus.
The step will increase the satisfaction level of customer and employees by taking
measure of hygiene which enhance the productivity and profitability of company. The
impact on work culture is that employees will feel safe to take and deliver order on time.
TASK C
Determine the leadership style used by David Tom Potts, CEO of Morrisons to increase the
effectiveness of organisation
Some of the leadership style used by higher employers in organisation to enhance the
organisation effectiveness. Leadership style is important for organisation which is described
below: Autocratic Leadership: This type of leadership is taken by leader or single person and do
not involve any employees when taking decision or opinion related to organisation.
Sometimes it is also known as Authoritarian leadership. Moreover, this strategy is useful
because this minimise error in plan because single person develop plan. Democratic leadership: This means when leader take decision they involve employees to
give some opinion and ideas and treat each employee equal when they are giving there
views. This leadership style takes a lot of time but also engage and satisfy employees. Transactional Leadership: This leadership is very common in organisation and it is
define that company give rewards, recognition and incentives to employees by reviewing
the performance. This help to influence each employee to produce the better quality
goods or services and improves the productivity level in organisation.
 Transformational Leadership: This type of leadership explain that every leader inspire
and motivate employees by setting a vision to achieve organisation goal effectively. Their
main objective is to change there employees by enhancing their skills to take new
challenge and responsibility to perform work in an appropriate manner.

David Potts, CEO of Morrisons uses the democratic style of leadership because this help
to achieve goal effectively as this run the business smoothly and build a workforce. He take
information from employees about the daily operations in organisation (Ghorbani, 2018). While
taking decision they include employees to take views and opinion from each staff from different
department. It also help them to interact with each employee so they feel motivated and can put
the efforts to attain the company's goal. In other words, the democratic leadership have many
advantages such as it encourage employees to participate in discussion of organisation, bring
different viewpoints in front of CEO, help organisation to solve any problem easily and enhance
the satisfaction level or morale of employees.
TASK D
Analyse existing effects of power, influence and conflict in Morrisons
Effects of Power: Every organisation looks forward for effective leader who can use its
skills in order to manage stability and productivity. By creating such attitude towards company,
it becomes easier to outgrow company at optimum level.
Morrison is utilising its powerful leaders who can provide maximum outcome to
company. Company believes that leaders with inherent talents can convert surrounded
environment with positivity that may provide company with incredible success. CEO Potts is
concerned for achieving utmost satisfactory level with respect to human behaviour. He motivates
workforce of organisation which may result in overall increased productivity. With help of
various skilled experts he evaluated areas where company needs improvisation and accordance
with result, it focused on their implementation. A leader should emphasize over delegation of
authorities which will help employees to achieve optimum level of productivity. It is therefore,
considerable that workforce factor is major contributor for productivity of an organisation.
Effect of Influence: Here influential power consists of upward influence as well as
downward influence. For instance, a manager working in an organisation is authorised to either
reward an employee or punish them. Therefore it is important to have strong positive influence
over employees (Kelly and MacDonald, 2019). Morrison indulge in supporting legitimate power
of leaders to control employees. Such influence of leaders are responsible for company's overall
growth. CEO of respected company is directing all necessary compliances and legal requirement
which are essential to meet set goals for company. This way employees can follow a structured

format which will be helpful in creation of maximum productivity. CEO of the company
provides guidance which will enable employees to adapt with company's policies by performing
effectively.
Effect of Conflict: An organisation attempts to maintain its productivity but they often
face various difficulties which needs to be resolved as team. Conflicts in organisation can be as
dangerous as fighting any deadly disease. Such things can create mental illness, low productivity,
increased violence, unfavourable environment. The respective organisation has taken initiatives
over eliminating conflicts for maintaining level of productivity. In response to Covid-19,
Morrison has to make necessary chances in its policy schedule which will be helpful to eliminate
chances of conflicts. Also organisation has formulated impactful policy structure which will
bring down and resolve any conflicting issues between employees. This way productivity,
profitability and efficiency of organisation will be maintained in the long run.
TASK E
Explain the types of motivation used by selected organisation
Morrison uses Maslow's need of hierarchy technique of motivation. This theory is
developed by Abraham Maslow which explains that people are motivated by fulfilling basic
needs and those needs is satisfied than they move to the next level of need such as safety needs,
social belonging, esteem need and self actualisation which are explained below: Physiological needs: This needs have biological requirement and if these are fulfil then
they ship to the next need of hierarchy. It is also said that when one level of need is
attain then next level of need arise. It include food, clothing, shelter and many more.
The Morrison satisfy the needs of employees by giving them proper uniform to wear in
organisation and have best quality (Koo and Park, 2018). There are also needs such as
health, for this organisation can give medical insurance and when these are fulfil the
employees are motivated to perform their work in proper way and can stay with
organisation for long period. Safety needs: These type of need include financial and emotional security. With
reference to Morrisons, they build positive and healthy environment for employees so
they feel safe and motivated. They follow all rules and regulation defined by

government for welfare of employees and labour and this help employees to eliminate
any legal conflict or unlawful activities in organisation. They can also satisfy their needs
when they received the payment regarding their services which they have performed.
Employees when they are motivated they improve the performance and produce the best
quality product. Social belongingness need: When the basic needs such as physiological and social
needs are satisfied then they move to next level i.e. social belongingness. This include
friendship, family, social groups and communities. In context to Morrisons, they builds
a positive work environment and take sessions so that employees can interact with each
other. This help organisation to reduce the problem in loneliness and depression among
employees. Esteem needs: In reference to Morrisons, they provide training and development
programmes so employees feel self confident and self growth in organisation. This help
to motivate and monitor employees performance during the situation of COVID-19.
 Self-Actualisation needs: This means organisation gives many opportunities to grow
their position in organisation that help them to develop abilities and skills.
TASK F
As suggested by Saunders(2018), Morrison is one of largest operated grocer having huge
market share. The company has focused on pricing strategies for its products as well as in-store
education to its customers. CEO Potts has considered traditional approach in place of modern
approach towards market. He neglected high innovative fancy technologies and e-commerce and
emphasized over becoming detailed experience provider. Implementing such technique,
company has achieved considerable growth in comparison with its competitors (Lussier, 2019).
Company has initiated various new things which ultimately raised about 10% of online sales
having major impact in overall industry. Efforts made in regard of expanding wholesale market
is also turned fruitful for company. Various deals like Amazon prime members related deals for
delivery purposes has also increased its ultimate performance in the respective sector. It has
grabbed all existing opportunities in market which responded with a bang by developing its
complete existence in market as well as related industry.
Also according to Tugby(2016), Morrison has focused over women empowerment
through addition of various females in their teams. As per current study, Morrison has placed

around 8 females in place of one. Morrison has also appointed the first ever female regional
director in history of retailers (Tortorella and et. al., 2016). Therefore, it is considered as one of
beneficial initiative taken by Morrison in regard to overall development of company. This
approach towards social cause has been promising in response to women empowerment. Being
promoting equality, it is committed towards its role of uplifting a segment of society. Morrison
has created its bright future regarding chain of supermarkets by achieving a satisfactory level of
success.
TASK G
Suggestions in response to various debates in reference to increase overall organisational
performance
Irrespective of an operating segment, a company needs to meet several challenges in order to
boost its overall performance and competitiveness. There are various essential to improvise
complete efficiency of an organisation. Morrison has established a systematic approach towards
complying with its performance strategies, production policies and employee related policies. In
contest with above, Morrison needs to emphasize over given provided points:
 Modern approach towards Technology: Being one of leading chain of supermarkets,
Morrison has implemented various traditional programmes. These programmes includes
promotion of in-store experience, pricing strategies, etc. The company is also expected to
increase its overall market over e-platforms (Netshitangani, 2018). This includes usage of
e-commerce websites, maximising company's overall market, extended awareness among
public, easy access to products and so on.
 Employee Engagement: It is essential for an organisation to reward their employees in
order to increase efficiency of its outcomes. The more employees are engaged with
company's targets there will be increased level of productivity. It is recommended to
Morrison that maximum appreciation should be given to employees while taking interest
in their work. CEO Potts should engage in employee's problem-solving in order to
overcome any backlog in working environment of organisation(Schulte, 2018). This is
how an organisation is likely to gain more favourable working environment for
employees which will result in ultimate growth of company by increasing employees'

productivity. This is necessary to maintain level of efficiency in order provide maximum
outcomes to an exisiting company in its operating industry.
 More Training Programmes: It is required to develop overall quality of work through
implementation of various training programs for development of employees. By
providing training, chances of more occurrence of errors are eliminated. Therefore, it can
advance employees with opportunity to advance their skills and their effective
implementation which will outgrow company's position in the industry (Safarpour and et.
al., 2019). Morrison should develop its strategies in regard with human resources in order
to advance its existing market. A company should be devoted towards employees needs
and requirements to produce more effective results in the long run. Therefore, it is
recommended to Morrison to organise maximum training opportunities for its skilled
employees in order to increase its efficiency.

CONCLUSION
From the above discussion, it is concluded that management and leadership plays an
significant role for growth in organisation. If organisation choose best function and principle of
management style then it will help organisation for control and motivate employees to give
efforts to achieve the company's goal. The decision taken by management have impact on culture
and employees of organisation. They have to choose the best leadership style of effectiveness of
organisation and help them to influence and inspire employees whereas to direct and guide them.
In organisation there is use of power and influence and if there is misuse of power that it lead to
destruction.

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