Marks and Spencer: Leadership, Structure, and Motivation Analysis

This report provides an in-depth analysis of Marks and Spencer's organizational theory and practice. It examines the management styles, principles, and functions employed by the company, particularly focusing on the leadership of CEO Steve Rowe. The report delves into the organizational structure, highlighting the shift from a hierarchical to a flatter structure and its implications for high performance and organizational change. It explores the various leadership styles utilized, with a focus on transactional leadership, and analyzes the effects of power, influence, and conflicts within the organization. Furthermore, the report discusses the different types of motivation used, along with appropriate corporate examples and literature to justify the answers. Finally, it offers suggestions and recommendations for improvement, culminating in a comprehensive conclusion.

Organizational Theory
and Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK A...........................................................................................................................................3
Examine the management style, principle and functions of the company..................................3
TASK B...........................................................................................................................................4
Organisation structure in context to achieve the high performance and organisation change
and its implications.....................................................................................................................4
TASK C...........................................................................................................................................5
Examine the leadership style which is used by the organisation in order to increase the
effectiveness................................................................................................................................5
TASK D...........................................................................................................................................6
Analysis the effect of power, influencer and conflicts in the chosen organisation.....................6
TASK E ...........................................................................................................................................7
Various type of motivation used in the organisation..................................................................7
TASK F............................................................................................................................................8
Appropriate corporate example and literature and justify the answer........................................8
TASK G...........................................................................................................................................9
Suggestions and recommendation...............................................................................................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Organisational theory and its management practice help the organisation for the growth
of the company. Organisation theory strengthen the identity of the company's common theme for
the purpose of the solving problems, maximizing efficiency and productivity of the company. In
the united kingdom market, the retail industry are increasing their productivity in the market. In
this report the chosen organisation is Marks and Spencer, a British retailer multinational retailer
company (Allcorn, Stein and Duncan, 2018). With the headquarter in London, England, founded
in 1884. Marks and Spencer's CEO, Steve Rowe is the person who manage the whole company
and make the successful growth in the United Kingdom market. He is the CEO of the Marks and
Spencer since April 2006. In this report the growth and issues which is faced by the CEO of the
company is analysis. The management style and principle which are used and functions of
management which are used by the CEO is explain and discuss about the organisational structure
of the respected company is order to achieve the growth. Steve Rowe use the different leadership
style which are elaborate in this report. Effect of power and motivation in the organisation in the
chosen organisation is discussed and in last some suggestion is also provided.
MAIN BODY
TASK A
Examine the management style, principle and functions of the company
The way the company's management team lead the team in the day to day manner and
face the challenges in the company while using the right management style is known as the
management style of the company (Bamberry, Sabri-Matanagh and Duncan, 2015). There are
different type of management style which is used by the different companies in the market.
Being a good manager a person should involve the right approach and management style to suit
the situation in the company. The style which is used are:
Democratic Management- it is also called Participative management style, means the
power and decision authority are in the hands of manager. But the employees are consulted and
involve in the process of planning and decision making.
Bureaucratic Management- Here the task, rules and procedure are followed accordingly
to the designed by the top management.

Autocratic management- In this the following task and control are used and followed by
the employees in order to follow a specific objectives of the company.
In the Marks and Spencer, the CEO of the company is used bureaucratic style to achieve
the goal and management of the company (Beddoe, 2015). The manager of the company provide
them a clear direction related to their task and day to day activities. But due to the limited will,
staff turnover and low performance can be work as the threat of the company unless the CEO
work in the significant manner.
Principle which is used by the Marks and Spencer company is to make a strong
commitment in order to complete the sustainable business which is successful in both the ways,
commercially and socially responsible. Means that the employee of the company are work in the
safe and healthy working environment which create the diversifying nature, personal
development of the employees. Some of the bench mark is determine are; ILO declaration on
fundamental and right at work, UN guiding principle on business and human right and the UN
global impact.
Functions of the management team are included planning, organising, controlling and
leading. This include the basic functions of the management team of Marks and Spencer as the
top management team work on the basis of the following functions. The CEO of the company
make a proper plan and function according to that plan in order to achieve the objective of the
company.
TASK B
Organisation structure in context to achieve the high performance and organisation change and
its implications
Marks and Spencer use the company of hierarchical structure, but from the last five years
they change their policies due to the high competition in the industry of the UK market. Their
strategies have become more focus on the innovation and customer's services which are
important in the company (Beneke and et.al., 2016). Therefore the tall structure which is used by
the company earlier are now changed as this tall structure was redefined to adopt these changes.
And now Marks and Spencer follow the flat organisational structure. As that new structure limit
the level of the top management in between the administrative level and front line employees. In
the Marks and Spencer there are three main line board, N-1 and N-2. In the board department

line there are 8 people one CEO, one Chairman and six directors of the company. In the N-1 line
nine department are there, which are work according to the CEO guidelines and report to their
respective directors. In N-2, more than 30 departments are there which are submitted there work
to the N-1 department managers. This is how the organisational structure of the M&S are
organised and managed by the Steve Rowe.
Organisational culture is the vale which is shared the values, belief, policies and custom
of the company is order to achieve the target and increase the sale of the company. Marks and
Spencer are looking to bring the business back in order to set the target for one brand, one value
and one culture. And for this they start the digital culture in the company for the increasing
growth of the company (Bratton, 2020). As discuss above the CEO of the company already make
various changes in the company in order to increase the growth and sales volume.
Communicating changes are helpful in turning the organisational change. furthermore symbolic
change is the changes which are adopted by the company, in order to change the belief of the
employees and customers of the company. With the result of changes the sales and profit of the
company is achieved but their most of the employees are leaving as they are not satisfying with
the work culture. But most of the employee's are increasing their efficiency and effectiveness
after implementing the changes by the CEO. The top management team will make the changes in
the company in order to complete the need of the employees which help the employees to work
in the best manner and increase their productivity.
TASK C
Examine the leadership style which is used by the organisation in order to increase the
effectiveness
Leader is the one who have a art for motivating others to complete their work on time
with full of there efficiency (Chidiac, 2018). A leader is the one which can describe as the further
seeing person who inspire and influence the decision of the employees of the company. There are
basically three main leadership style, according to the organisational structure, their employee
and their duties;
Transformational leadership style: in this model the leader inspire the people to
become more proactive in order to participate in the organisation. With the help of motivation,
sharing the innovation and values of the employees and organisation are very helpful for the

business. In this type of motivation the people are engage in the group as one people encourage
the other in such a way that leader and their employees are work in the highest level of
satisfaction.
Transactional leadership style: In this type of motivational theory leaders are tried to
increasing the efficiency in the organisation by motivating the employee with the monetary
support and rewards (Jones and Morrison-Saunders, 2017). This help the employee to boost up
their values and increase the productivity in order to increase the sale of the company.
Laissez faire leadership style: In this type of leadership style it is not necessary to work
in the organisational format and culture. Employees are free to work in the company according to
their need. This happen when the enterprises in small and top management have full trust over
their employees. They can work in the minimum guidance and supervision and guideline of the
leader.
In the Marks and Spencer, the CEO Steve Rowe, use the transactional leadership style.
They think that the employees work more effectively in the work culture of leader. So they used
the transactional leadership style also this leadership style suit the retail industry as these type of
industry are too long and diversifying in the nature. He also make the stress on the leadership
style in the organization not only for him but other managers also, as the CEO know that the
leader can make the organisational successful and make the growth in the retail industry. The
main aim of encouraging and involving the team members in the company's decision and
objective they inspire their employees and provide them new and innovative ideas which are
helpful for the employees also.
TASK D
Analysis the effect of power, influencer and conflicts in the chosen organisation
Power within an organization is referred to as the ability of the leaders or managers to
influence the behaviour of other stakeholders. Having power within the organization affects the
way in which individuals perceive their different attributes as well as evaluate themselves.
Managers or team leaders assign tasks to their team members (Marchington and et.al., 2016).
There are various positive effects of power within Marks and Spencer such as, the employees are
more committed and engaged to their respective jobs. The team leaders or managers should
know how to manage the different members of the team effectively. They should use their power

in a way that the employees are encouraged to work in teams. Influence within the organization
can be referred to as a two-way exchange because if the staff members are not influenced by the
culture of the organization, they will not be committed towards their work. This can have a
negative impact on the overall performance of the company.
Influencer is the process that can influence the people in the organisation by doing most
of the activities which are help the employees (McKevitt and Marshall, 2015). In the Marks and
Spencer, CEO influence the behaviour of the employee in order to achieve the targets. The
activities which are used by the organisation is to increase the social media usage in the
company, as social media influence the society in the very large manner and effect the sales of
the company. Traditional marketing methods, this will convenience the marketers to use the
products and services to complete the demand of customers. Influence the employee and
customer also increase the brand image of the company, growth will increase the sales volume
and profitability of the company.
Conflicts is occur in the organisation when one party perceives that another person will
effect negatively affected. This may arise in the company when on a single topic the new and
opposite idea is arises by the two different people (O'Donnell, 2016). The conflicts occur in
Marks and Spencer is when one or two client face the sustainable common interest and company
use the relation. Most of the conflicts become the reason of decline productivity, mental health
concern for the company, increase the employee turnover impact and most of the time create
violence. In the Marks and Spencer, conflict resolution technique is used which are problem-
solving and making a compromise.
TASK E
Various type of motivation used in the organisation
Motivation is the process which is very helpful for the organisation and there employees
also. As it is the basic need which provide the support to the employee which help them in
increasing their productivity (Nguyen and Malik, 2020). There are various theory which are use
by the companies to make the employees motivated and productive in nature. Here the Maslow's
hierarchy of need; it is the theory which explained in the form of pyramid. From the bottom the
needs are described as physiological need, safety need, belonging need, esteem need and self-
actualization need. This theory of model explain the flexibility need as it is based on the external

factors of the company and the individual need. A normal person is motivated by the hierarchy
of the need and after getting the satisfaction they apply their maximum productivity level within
the organisation.
The next theory of the motivation is herzberg's two factor theory; in this theory the main
important factor is to define the extrinsic, interstice, identified and interjected motivation.
According to this theory the only two factor is the main reason for influencing the behaviour of
the employee and there are some factors which can become the reason for demotivation in the
employees (O'Donnell, 2016). This theory mainly focus on the motivational factors which are the
hygiene factors. The CEO of the Marks and Spencer use the various motivational theory which
help their employee to work effectively and properly. Intrinsic motivation is used in the
intangible form, where the employees are using motivation in the form of power, status and
promotion within the organisation. This type of motivation help the employee of the M&S to
increase their position in the company. While in extrinsic motivation the leader use the tangible
form of motivation which is in the form of bonus, incentives, hike in salary amount and many
more type of monetary order.
The motivation theory has impact in the employees of Marks and Spencer as they use not
the single motivation theory, the CEO of the company use more than two motivational theory in
all over the organisation to handle the employees (Waterson, 2018). In marks and Spencer, to
manage the retention of the employee they provide the rewards and monetary support to their
employees. In last they manage and maintain the ethical work culture in their organisation which
help the employees to feel the safe and secure. Hence this way they feel motivated and work
according to the common objective of the company.
TASK F
Appropriate corporate example and literature and justify the answer
In the appropriate corporate example the two company's example are TESCO and ALDI.
In the TESCO, the CEO is Ken Murphy who manage their company in a very good way. They
use the appropriate and suitable leadership style which is based on the company's nature
(Ormiston, 2015). The CEO of TESCO use the legitimate power, expert power which help the
company to manage the employees and get the success in the retail market. But as there are some
disadvantage and failure always present in the company. The miss-interpretation and fraud occur

at the high amount of the company which will effect the company's growth. And the wrong
selection of the leadership style in the company will affect the company's decline.
In the ALDI, Marc Heußinger is the CEO of the company and he manage the company
and they build the trust in between the employees. They use the low price strategy which are
helpful in increasing the sales volume of the company (Part and Part, 2018). They use the SHRM
model but they should use the corporate strategy model which help in achieving the profit and
growth of the company. In comparison to ALDI and TESCO, the Marks and Spencer use the
appropriate theory and models which are using by the CEO to make the smooth growth of the
company. And in result they increase the revenue of the company and increase their quality in
food and clothing stores.
TASK G
Suggestions and recommendation
After evaluating the whole process and make a general report on the Marks and Spencer.
The shares of the Marks and Spencer are continuously going down in the market. To improve
that declining market position some of the suggestions are provided to the company's ceo so that
they can use that approaches. Steve Rowe is outlining the new policies and standard which help
the company but not in the right manner.
 Get the fashion back in the company, in Marks and Spencer they still leading in the cloth
sector involving lingeries and denim (Razi and More, 2017). But they have to work more
hard and cover the area of the school wear. Which can attract the customer and increase
the demand of the customers.
 Go with the style rather than choosing fashion, it is said that the style may be changed in
the market but a true style never go out of trend. So Marks and Spencer must be work
according to the style and they should make their own style which is followed by the
other competitors and like by the customers.
 They should focus on the quality not price, M&S must avoid the temptation to decline
the price of the products. For this they must arises their own products and use their own
brand in their all type of products.
 To cut down the store, it is suggested that the CEO of the company must reduce the
number of their store which help in increasing the margin and increasing the profit. This

will help the company to minimise the cost and reduce the extra expense, will give the
direct result on increasing the brand value.
 They should become online marketing, which help the company to attract the more
useful customer and keep the youth in their top list. M&S has its teething problem, but
they use the wide range of the products rather than bricks and mortar outlets (Waddell
and Pio, 2015). They can use the free delivery products, and easy return policies which
are helpful for the customers.
CONCLUSION
From the above report it can be concluded that for an organisation to perform its
operations in a smooth and efficient manner has to adopt a management style. And the most
suitable management style suggested for the retail organisations is the Bureaucratic Management
Style as it facilitates easy achievement of goals by providing clear directions in relation with day
to day activities. It helps in maintaining a strong commitment for maintaining a successful
business both in terms of commercial and social aspects. Organisational culture plays a vital role
in achieving targets and boosting the sales of the company. The firms should work on developing
one brand, one value and a single culture for it which helps in maintaining growth stability. The
enterprises should have few influential leaders that motivates the employees of the organisation
and try to minimise conflicts and resolve them in the most appropriate manner.

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