Marks & Spencer Case Study: Leadership, Culture, and Performance

This case study provides a comprehensive analysis of Marks & Spencer (M&S), focusing on the managerial and leadership styles of its CEO and their impact on employees and organizational effectiveness. It examines the managerial model used, highlighting the consultative management style and its positive effects on employee engagement and problem-solving. The study also explores the flat organizational structure adopted by M&S, emphasizing its benefits such as improved communication and employee motivation. Furthermore, it delves into the customer-driven organizational culture and its influence on customer experience and employee satisfaction. The report discusses the effects of power, influence, and conflicts within M&S, along with the motivational strategies employed to enhance employee performance. Corporate examples and recommendations for increasing organizational performance are also included, providing a holistic view of the factors contributing to M&S's business management.

Case study

Table of Contents
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................1
Managerial style of CEO of Marks & Spencer using managerial model....................................1
Impact of managerial style of CEO on employees......................................................................2
Task 2...............................................................................................................................................2
Steps taken to manage change in organizational structure..........................................................2
Organizational culture within organization.................................................................................3
Impact of organizational structure on of the organization..........................................................3
Impact of organizational culture on employees..........................................................................3
Task 3...............................................................................................................................................4
Leadership style of CEO of Marks & Spencer............................................................................4
Impact of leadership style of CEO on organizational effectiveness...........................................4
Task 4...............................................................................................................................................5
Effects of power at M&S............................................................................................................5
Effects of Influence at M&S.......................................................................................................5
Effects of Conflicts at M&S........................................................................................................5
Task 5...............................................................................................................................................6
Types of motivational strategies used at M&S...........................................................................6
Impact of motivational strategies on employee performance.....................................................6
Task 6...............................................................................................................................................7
Corporate examples.....................................................................................................................7
Justification.................................................................................................................................7
Recommendations to increase organizational performance............................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

Introduction
Business management can be defined as the administration of the company either it can be private or public. It is basically the coordination and oOrganization of the activities performed in the business. It involves the
employee management and operations management which are the most essential functions of the organization. It consists of the goals and objectives set by the business which involves the proper management functions such as
planning, organizing, staffing, directing and controlling. It also includes the optimum utilization of resources activity which helps the organization in effective and efficient functioning (Jin, Miao and Park, 2018). Organization chosen
here is Marks and Spencer, it is one of the leading international retail company established in 1884 and headquartered in the United Kingdom. It deals with the products and services such as men wear, women wear and kids wear.
The following discussion is based on the managerial style of the CEO of Marks and Spencer and its impact on employees. Discussions are also made on the steps taken to manage change in organizational culture and structure within
the organization along with its impact on organization. Discussion on leadership style of CEO of Marks and Spencer and its impact on organizational effectiveness are also made. Effects of power influence and conflicts at Marks and
Spencer are also discussed. Types of motivational strategies and its impact on employee performance are also covered in this report along with the corporate examples and justification. Recommendations to increase organizational
performance and conclusion are also specified in the following report.
Task 1
Managerial style of CEO of Marks & Spencer using managerial model
Managerial model used at Marks and Spencer is the managerial grid model in which there are four quadrants. First quadrant describes the country club management which has high concern for people but low concern for
production. Second quadrant describes the team management which has high concern for people and high concern for production. Third quadrant describes the impoverished management which has low concern for people and low
concern for production. Fourth quadrant describes the task management which has low concern for people and high concern for production. There is one additional quadrant as well which is in the middle of the road; it describes the
moderate concern for people and moderate concern for production. The CEO of Marks and Spencer has used the management style of Consultative management style with the help of this particular managerial grid. Consultative
management style is also considered as participated and shared leadership. The style also comes under the type of leadership style as well. Members are more engaged in the decision making process and other activities of the
organisation which means they are participative and get good support from the CEO of Marks and Spencer (al Habibi, 2019).
Impact of managerial style of CEO on employees
There is a positive impact on employees of the managerial style adopted by the CEO of Marks and Spencer. Consultative management style is adopted by the CEO of the company within the organization. Consultative
leadership encourages the participation among employees in the functioning of the organization which also includes the decision making process. It brings employee satisfaction along with the growth of staff with good innovation
and creative ideas in a completion of the goals and objectives of the company. It helps the organization to bring new viewpoints to the table so that the strategies can be planned and executed in an effective manner which can also
1

support the employees to get motivated. This managerial style helps the organization and even the employees as well to allow for a more efficient problem solving process with good solutions so that delegating of activities can be
easier for the managers. Moreover, consultative style of management invites higher levels of commitment and long-term relationship with the employees which results in the employee retention and reduces the employee turnover.
This helps the organization in retaining the good talents in the company. Additionally, it builds team relationships by increasing the morale and job satisfaction among employees. Furthermore, it supports the organization and the
employees in prioritizing the honesty with a strong and clear vision for the future (Rana and Shankar, 2020).
Task 2
Steps taken to manage change in organizational structure
Marks and Spencer has the flat organisational structure adopted by the CEO of the company. This type of organisational structure is an entity in which the top level management keeps direct contact with the frontline
sales people even with the employees at floor level and the customers as well. The structure follows decentralized leadership and does not have any role and responsibilities of middle management levels. This type of structure has
limited number of levels among the administrative and frontline employees. This is a step taken by the CEO of the company so that they can get the direct information from the lower level of employees without any
miscommunication and can resolve any of the issues directly by consulting with the customers and operational level people (Taylor, 2019).
Impact of organizational structure on the organization
There is a positive impact of flat organisational structure on the organisation. Such as this structure increases the employees to participate in the decision making process. It supports the organisation in the reduction of
the expenses and low operational cost which means it is cost efficient. It improves the communication flow among the levels of hierarchy and employees involved within the organisation. The most important positive impact is that
flat structure improves employee motivation and satisfaction towards their roles and responsibilities of the organisation due to employee engagement. Flat organisational structure eliminates the excessive layers of management which
enhances the coordination among all the employees of the company. It reduces the complications along with the boosting of the budgeting process as well (Leite, 2020).
Organizational culture within organization
Organizational culture adopted by the CEO of Marks and Spencer is the customer driven culture. It is customer centric culture which either makes or breaks the customer experience. It includes the creation of positive
experiences for the customers associated with the company by providing good quality products and services to the customers. Marks and Spencer follows this organizational culture by conducting proper market research and
employing the right people and providing training and development to them. Company makes efforts to continuously improve and enhance this culture in the organization (Choudhary and Piparo, 2020).
2

Impact of organizational culture on employees
There is a positive impact of adopting the customer driven culture within an organization. It supports the organization to render excellent customer experience so that they can gain long-term relationship with the
customers and customer loyalty towards the brand. It improves retention rates and leads to greater customer satisfaction. This ultimately impacts positively on the employees as they get motivated to work in the organization which
has positive culture towards customers (Salmon and Tordjman, 2020).
Task 3
Leadership style of CEO of Marks & Spencer
Leadership style of the CEO of Marks and Spencer adopted is the consultative leadership style similar to the management style as discussed above. Consultative leadership is the style which focuses on team building and
utilizes the abilities and skills of the employees in order to create and formulate plans and decision-making in order to achieve the goals and objectives of the organisation. In this style of leadership, leaders involve their entire team in
the process of decision making so that they can just listen to their viewpoints and gain some innovative ideas to accomplish the task. But final decision making is in the hands of the leader only. Leaders are responsible for conducting
brainstorming process with the team. So that new and creative ideas can come out from the team members and implement the same in order to encourage their employees to work hard. This helps the leader in accomplishment of its
task with a clear mission and vision methodology adopted by the CEO of Marks and Spencer (Priyadarshini, 2020).
Impact of leadership style of CEO on organizational effectiveness
There is a positive impact of consultative leadership style adopted by the CEO of Marks and Spencer on the organisational effectiveness and employee efficiency as well. It has supported the organisation in the
engagement of the team members because of the consultation process. It provides employees to feel respected in the organisation and leaders consult with them in the major decision making as well. It enhances the organisational
effectiveness because the quality of decisions has an improved nature of engagement of employees are done in the decision-making process because it involves the input from multiple team members with innovative and creative
ideas. New generation of ideas are also implemented during the consultative process and this is because the employees feel safe to voice their opinions. This ultimately helps the organisation in improving its effectiveness and
efficiency towards the working of the company (Gupta and Chowdhury, 2018).
Task 4
Effects of power at M&S
Employees are given different posts as per the experience and knowledge for any roles and responsibilities within Marks and Spencer. There are different departments in the company such as finance, marketing, human
resource and many more. Each department has different managers and has the power to dominate their employees so that the goals and objectives can be achieved by the board of directors. Power is something which can be easily
3

misused and can be used in a positive manner as well. As per the study, Marks and Spencer has the positive effect of power which the board of directors has allotted to different employees under them. These employees use their
power to manage their subordinates and encourage them to work towards the task assigned to them. Employees are also satisfied with their managers who have the dominating power because managers and leaders have adopted the
management and leadership style according to the needs and requirements of the employees (Palepu, Healy and Peek, 2019).
Effects of Influence at M&S
Leaders and managers at Marks and Spencer use their influencing power towards their subordinates who are working under them. These influences are used so that their employees can work according to them and
achieve the desired goals and objectives of the organization. Leaders and managers use the strategies to influence the employees such as rewarding and motivational strategies so that the employees can get encouragement and
dedicate their time and energy towards the work assigned to them. There are negative influencing strategies such as negative motivation like termination or demotion but the leaders and managers use the positive influencing
strategies so that the proper values and beliefs should be maintained in the organization. This also helps in maintaining the positive working environment of the company (Ausloos, 2020).
Effects of Conflicts at M&S
Effects of conflicts at Marks and Spencer have a negative impact on the employees who are working within the organisation. This is because initially the leaders and managers were not proficient in conflict management
and they were facing difficulty in adopting the strategies in managing the conflicts. This has resulted in the poor communication among the high authority and the subordinates. But now after analysing and examining the solutions
and resolutions of how they can manage the conflicts among the employees, leaders and managers came to the conclusion. That they should adopt the strategies of culture and diversity management so that the employees who are of
different backgrounds can understand each other's culture and adopt the same. This has resulted in positive working of the organisation by managing the conflicts and culture of different employees (Fuller-Love, 2020).
Task 5
Types of motivational strategies used at M&S
Motivational strategy used by Marks and Spencer is based upon the motivational theory of Maslow's need hierarchy. There are five levels of needs which satisfy the employees from first level to the last level. First level
is of the physiological needs which include the basic needs such as food, water and shelter. Second level is of the safety needs which include security and safety of the employees. Third level is of the belongingness and love needs
which include the intimate relationships and friendships. Fourth level is of the esteem needs which include prestige and feeling of accomplishment. 5th level is of the self-actualization needs which include the achievement and
creative activities within organization. Leaders and managers of Marks and Spencer ensures that every level of needs must be satisfied of the employees from first level to the last level. With the help of motivational theory, there are
some strategies which help in improving the employee motivation adopted by the Marks and Spencer. Such as leading with a vision and making sure that everyone understands the reason of every task assigned to the employees.
4

Setting of the clear targets and recognizing the great work is highly appreciated in motivational strategy. Company gives that team autonomy so that they can create the welcoming work environment. Moreover, higher authorities
must offer impressive benefits and encourage teamwork so that the employees can get motivated and create their own career path with good potential within organization (Rose, 2018).
Impact of motivational strategies on employee performance
There is a positive impact of motivational strategies adopted by Marks and Spencer on employee performance. Such as it has resulted in the higher productivity levels along with the more innovative and creative ideas
and implementation of it. It has also resulted in the lower levels of absenteeism and staff turnover and higher levels of employee retention. Moreover, company has gained great reputation and stronger recruitment strategies. So that
they can execute the same by having the talented employees and motivating them in a strategic manager with proper effectiveness and efficiency (McAndrew and Ogden, 2018).
Task 6
Corporate examples
There are different examples of Management and leadership styles adopted by Marks and Spencer. Marks and Spencer usually apply its different management and leadership styles according to the needs and
requirements of the situations and circumstances arise within organisation. Such as situation of the new product launch event was to be organised by the company. So they have adopted the required leadership and management style
in order to effectively manage and handle the entire event of the new product launch. Similarly, the situation of work from home due to pandemic, Marks and Spencer has also applied some of the management and leadership styles in
order to fight against this complicated the situation of work from home. The above discussion is made on the consultative style of leadership and Management. Marks and Spencer applies this style of Management and leadership in
almost every situation in order to satisfy their employees which ultimately enhance the productivity of the organization.
Justification
Justification of the above corporate examples related to Marks and Spencer are such that the company consider their employees as the biggest and the greatest assets of the organisation. Therefore, it is the responsibility
of the company to take care of their employees in terms of their needs and satisfaction level. That helps the organisation in retaining the employees which supports the best talent to increase the productivity of the company. Hence, it
is justified that organization has benefited in the increment of goodwill in the marketplace (Gupta and Jain, 2021).
Recommendations to increase organizational performance
There are various recommendations to increase the organisational performance in Marks and Spencer. Organisation must adopt the following suggestions so that they can enhance their existing functioning of the
company. This is because it can grow, develop and expand the company in an enormous manner with an extensive range of product portfolio and market development as well. Making use of the human resources in a strategic
management is one of the strategies to improve the organisational performance. Although Marks and Spencer uses the effective human resource management but the company lacks in the strategies to handle the human resources in a
5

potential manner. From recruitment and selection to the termination function of the human resource must be strategic in nature which means the people involved in human resource Management must be proactive rather than reactive.
Such employees must have the potential to take initiative rather than following the existing structure of the organisation. They must be the risk taker but not risk avoidance. Marks and Spencer should also focus on the education and
growth of all the employees in the company. Such education and growth should not be limited to the organisational roles and responsibilities but also the personal growth and development must be available for the employees.
Although Marks and Spencer have the customer driven culture in their organisation, but they must update their strategies on a frequent basis so that they can fulfil the demands of the customers. This means that the company must
produce the products and services as per the needs and requirements of the customers. Marks and Spencer must work on the quality services and products for better customer relationship and loyalty. The most important
recommendations to Marks and Spencer is the use of technology. Survival of organisation is impossible without Technology now a day. Therefore, adoption of advanced and updated technology is highly essential for Marks and
Spencer in order to secure their private information and use of information systems for better management of different domains of the organisation. It also helps in the marketing of the products and services in digital manner with
wider reach towards the customers.
Conclusion
It can be concluded that business management is an important concept to learn and study so that its applications can be applied in real world organisations. This is because the adoption of proper managerial and
leadership style is essential for the organisation. Organisational structure and culture is equally important so that the employee management can be done in an effective and efficient manner. It impacts the overall organisational
performance and productivity. Therefore, it is important to analyse the managerial style and its impact on the employees. It is essential to examine the organisational culture and structure and its impact on organisational performance.
It is necessary to determine the leadership style and its impact on organisational effectiveness. It is significant to gain knowledge about the effects of power, influence and conflicts. It is crucial to assess the types of motivational
strategies and its impact on employee performance. It is vital to investigate the corporate examples and justification of it along with the recommendations to increase organizational performance.
6

References
Books and Journals
al Habibi, B., 2019. HR practices of Marks & Spencer, Selfridges, Primark, and Sainsbury’s (Doctoral dissertation, University of
Science & Technology).
Ausloos, M., 2020. Valuation Models Applied to Value-Based Management—Application to the Case of UK Companies with
Problems. Forecasting. 2(4). pp.549-565.
Choudhary, B. and Piparo, T.L., Case Study–Strategy 2020 for M&S.
Fuller-Love, N., 2020. Absolute Essentials of Entrepreneurship. Routledge.
7

Gupta, N. and Chowdhury, J.K., 2018. An overview of employee engagement on performance: a literature review. Impact:
International Journal of Research in Business Management. 6(4). pp.53-64.
Gupta, R.C. and Jain, N., 2021. LEADERSHIP AND MANAGEMENT-THEORETICAL PERSPECTIVE ON THE
CONFLICT. Journal of Organizational Culture, Communications and Conflict, 25(6), pp.1-3.
Jin, H., Miao, Y. and Park, S.T., 2018. A Case Study of Marks and Spencer lost China. Journal of Industrial Convergence. 16(2).
pp.15-23.
Leite, B.T.D.S., 2020. Marks & spencer out of fashion the case of an outdated brick and mortar (Doctoral dissertation).
McAndrew, M. and Ogden, I., 2018. What are the Associated Risks of Employee Engagement Surveys and How Can They Be
Mitigated?.
Palepu, K.G., Healy, P.M. and Peek, E., 2019. Business Analysis and Valuation. Cengage Learning EMEA.
Priyadarshini, S., 2020. HR professionals: key drivers for implementing sustainable business practices. Strategic HR Review.
Rana, A. and Shankar, R., 2020. Crisis or opportunity: Marks and Spencer’s tryst with Indian retail. The CASE Journal.
Rose, M., 2018. Reward management: a practical introduction. Kogan Page Publishers.
Salmon, W.J. and Tordjman, A., 2020. The internationalisation of retailing. The Retailing Reader, p.364.
Taylor, A., 2019. An exploratory study of the relationship between job insecurity and employee engagement focusing on temporary
employees in the retailing industry in the United Kingdom| Case study: Marks and Spencer Group plc.
8