Leadership and Management Styles at Marks & Spencer

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Leadership and management
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Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
P1 & M1 Discuss various classical management theories and the ways in which they are
applied within an organizational context.....................................................................................4
P2 & P3 Role of leader and various leadership styles that are followed within marks n spencer
.....................................................................................................................................................5
D1 giving evidence of the organizational practices within marks n spencer..............................6
LO2..................................................................................................................................................7
P4 & M2 Discuss the micro and macro environment of marks n spencer that impacts the
management styles used by the organization...............................................................................7
D2 Evaluating change that has come across in the organization after analyzing the micro and
macro environment of the organization.....................................................................................10
LO3................................................................................................................................................11
P5 Evaluate the hard and soft skills that are practiced within marks n spencer........................11
P6, M3 & D3 Present and future management styles required by the technology driven world
...................................................................................................................................................12
LO4................................................................................................................................................13
P7 & M4 Delineate change management and the leadership style that affects the process of
implementing change within the organization...........................................................................13
D4 Evaluate how change management affects the leadership styles and management of marks
n spencer....................................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
Human resource is one of the most valuable assets of an organization that helps the organization
to achieve the goals set in order to achieve success in the business market. Maintaining human
resource management is another big task as humans are more complicated to be managed than
machines. To maintain a smooth running of an organization it is very important to manage the
human resource team efficiently. To delineate this report, we will discuss the ways in which the
human resource management is practiced within marks n spencer. Marks n spencer is a huge
multinational brand that is head quartered in London. It serves the market with most exquisite
clothing line and additional products in luxury and home sector. In this report, we are going to
address various leadership management theories and how they are applied to the culture within
marks n spencer. Further, the parameters that impact the management styles will be discussed
followed by discussing the hard and soft skills of leaders (Jokipii, 2010). At the end of the
report, we will discuss and define change management and how it affects the leader in
implementing change within marks n spencer.
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LO1
P1 & M1 Discuss various classical management theories and the ways in which
they are applied within an organizational context
Every organization follows a work culture within their organization depending on the
background of the employees and the diversity that exists within the organization. To develop a
balance between such diversified work cultures we have enlisted various classical management
theories that can be applied within marks n spencer to simplify the process of operations within
the work environment.
Contingency management theory: this theory is a management theory that depicts that there is no
single type of theory that can be used within marks n spencer to manage the organization
effectively. It says there is no appropriate style of management and if there is it is largely
dependent on the context of situation at that point of time. Only depending on using one style of
theory might not prove to be efficient in the long run.
Scientific management theory: this theory was proposed by Frederick Taylor, according to this
theory no individual within the organization should be forced to perform or work more than their
ability and in pressure. This way the employees will not perform well and even if they do they
will just do it for the sake of it and this will not fetch the results that are expected by the
organization. For employees to be working at a consistent level throughout the month or year it
is very essential to keep them motivated. Only motivation can drive the expected results from the
employees the organization is looking for.
Theory of X and Y: McGregor developed two contrasting concepts within this theory that is the
authoritative and participative styles of management. There are various types of employees that
work within marks n spencer some are very loyal and have passion for the work they do and
some are just doing it for the sake of money (Hansen and Villadsen, 2010). Hence, for different
set of employees different management styles should be used to get the work done. For
individuals, that have a very low passion for the work they are doing the leader should apply the
authoritative style of management but if the employees are working well and with passion then a
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participative style of management should be used by the leader. The management style that the
leader uses will demonstrate how well he can motivate the employees within his team.
Theory X is very pessimistic in nature which means the employees cannot work in the absence of
incentives and promotions. Theory X is optimistic in nature where the employees can work even
without incentives on just a trust based relationship with the employer.
P2 & P3 Role of leader and various leadership styles that are followed within
marks n spencer
The presence of a leader is very essential to be present within an organization to lead the
organization in the right manner and on the right path. Without a leader the team might not be
able to work efficiently and give out optimized results. Every leader uses various leadership
styles to manage and efficiently manage the operations of marks n spencer. Depending on the
work culture of every organization it is up to the leader to choose from the various leadership
styles proposed by many theorists and apply it within the organization to run the organization
effectively. With the advancement in technology in today’s world it is become so essential for
the leader to leave out on traditional skills of managing the organization and switch to skills that
manage the technology driven world. Leaders in this generation need to keep up with the
changes going in the technological world and accordingly introduce changes within the
organization to make the organization sustainable. Below mentioned are various leadership styles
that the leader can apply within the organization to effectively lead the organization to path of
success.
Autocratic style of leadership: in this type of leadership the leader exercises all the power and no
employee has a say in it. Leaders make all the important decisions in this style of leadership
without taking or considering the opinion of the fellow employees within marks n spencer
(Heckman and Kautz, 2012). They take their own decisions and then pass it on to the employees
to be followed without questioning. It has a very low amount or negligible type of flexibility.
Democratic leadership: This type of leadership supports and involves the decision making of the
fellow employees working in the team. The opinions of the employees are considered and
discussed before reaching any conclusion and framing new rules or policies to be applied within
the organization. The final decision is surely made by the leader but after considering the
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thoughts, opinions and views of all the other employees working in the team. The
communication is the main key in this style of leadership and this type of leadership is known to
be one of the most successful ones when compared to other styles of leadership management
within the organization.
Strategic leadership style: this type of leadership involves a strategic thinking process where in
the leader is the head of the organization. This type of a leader generally works to fill the gap
between the possibility that can take place within the organization and the practicality that is
present within the organization.
Transformational leadership: this leadership is more about bringing or introducing
transformations or changes within the organization. Such leaders usually motivate employees to
do more than they actually can and this helps the organization to achieve the best results. By
doing this, they set standards and take challenges that typically help to achieve higher
performances.
Team leadership: this type of leadership talks more about the future and where the company has
to stand and to where it is heading. The vision that is provided by the leaders gives employees
motivation to achieve the vision faster and gives them a strong source of purpose.
D1 giving evidence of the organizational practices within marks n spencer
Marks n spencer uses the Taylor’s scientific management theory because marks n spencer is a
huge multinational brand and operates in various countries (Gregg and Seigworth, 2010). Hence,
it is likely to have employees coming from various cultures and backgrounds and maintaining
such a huge staff is very challenging. Hence, it uses the scientific management theory to
maintain the staff globally. Marks n spencer follows a democratic style of leadership within
their organization where the opinions of the employees are considered and discussed before
reaching any conclusion and framing new rules or policies to be applied within the organization.
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LO2
P4 & M2 Discuss the micro and macro environment of marks n spencer that
impacts the management styles used by the organization
To perform an internal and external analysis of Marks n spencer SWOT analysis and PESTLE
analysis will be performed. SWOT analysis will help to identify the strengths, weakness,
opportunities and threats of marks n spencer whereas the PESTLE analysis will help us know the
impact of political, economic, social, technological, legal and environmental factors upon marks
n spencer and its management styles.
SWOT analysis of Marks n Spencer
Strengths
Marks n spencer has a lot of strengths since the business operates on a global level. It is one of
the biggest high street fashion known in UK for the exquisite quality of products it produces to
its customers. The high recognition of the brand worldwide is one of its greatest strengths. It
offers a wide variety of products to its customers worldwide that helps the customers to buy
everything from one place and makes it feasible for customers to choose from the wide variety of
products the company offers them. It has built effective relationship with customers that attract
more customers to their brand because of their services (Goetsch and Davis, 2014). The financial
strength of the company is very high and it has a large market share in almost all the countries
where its stores are present. The company has about close to 900 stores all over the world of
which 600 stores are present in UK and other 300 are sorted out to about 40 countries worldwide.
It consists of popular designed brands such as autograph, big&tall, Blue Harbour etc. which is
also one of the main strengths of the company.
Weakness
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The weakness is the customer’s term to be the brand is not trendy and outdated on fashion as it
does not follow the latest trends going on in the market and does not design its products
accordingly. The management should devise news strategies that will help them sync with the
teenage crowd and provide clothing lines that match with the taste of teenagers of that particular
country. The company also does not follow the new trends and techniques that are used in
technology to make tasks more simplified and easier. The techniques used by marks n spencer
are too old and time consuming. It enhances the cost of maintenance of such techniques and
hampers the productivity of the company. There are no effective marketing strategies used by
marks n spencer like their competitors such as providing discounts during Christmas or offers
etc.
Opportunities
There are a lot of opportunities for marks n spencer to grow their business by extending their
business online and by using e-techniques that will help the tasks to be done more efficiently and
faster. The company should also devise strategies that allow segmentation of market which will
segment the people of different ages and the company can style clothes according to the choice
and taste of ages which will be marked as a successful strategy in expanding the business.
Threats
increased competition in all areas of clothing has become a threat for the company greatly. The
competitors of marks n spencer are also investing greatly in the clothing line and providing
clothes that match with the trends of today’s generation and this is where marks n spencer is
lagging behind. The retail competitors that can pose a threat to marks n spencer are Sainsbury,
Tesco express etc.
PESTLE analysis
PESTLE analysis will provide information about the external factors of the company that has an
impact on the operations of the company.
Political factors: marks n spencer has been favorably impacted by the European commission free
trade agreements that has made importing of products much easier for marks n spencer and also
has lowered down the costs of sourcing for the company. The British EU referendum has had a
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negative impact to the sales of the company that has dropped down drastically due to the effect
of EU referendum (Dixon et al, 2010). The growth of the company kind of paused when it
entered into the new markets because of global uncertainties and also because they earned very
less profits into the new markets compared to the existing markets.
Economic factors: In the year 2008 when the financial crisis hit the country other companies
such as Tesco, Aldi etc. switched to discounted pricing of products to keep up their sales but
marks n spencer even at such situations did not lower their prices and emphasized on high
quality products and customer satisfaction. This dipped down the sales initially but this strategy
helped the company gain sales in the long run because it maintained its quality and customer
satisfaction. In the past couple of months, the company is still seen facing crisis in economic
terms due to drop down in commodity pricing, drop in BREXIT vote caused the confidence of
customers to drop largely.
Social factors: the main factors that affect the company greatly in terms of social factors are the
changing perception of population and a generation shift. Various generations bring shifts in the
consumer behavior in terms of their way of shopping, the technology they use etc. that is difficult
to abide by the company from time to time. With these changing trends the company has stuck to
its strategy of building effective relationships with customers, suppliers and communities where
they operate.
Technological factors: marketing and media plays a very important role in a company like marks
n spencer to communicate the new fashion trends to customers worldwide. The company has
moved from a platform that was hosted by amazon to its own web platform that is essential in
providing easy delivery options and streamlined multichannel services (De Villiers, 2010).
Other projects that the company has launched with the help of technology are allocation
replenishment and predictive analysis system. The customers are now accessing the store online
which is made it feasible for the customers to buy the products online from any place any time.
Environmental factors: marks n spencer has been very specific about their products and the harm
its poses to the environment in the manufacturing of these products. Hence, the company follows
an environmental and ethical plan that has helped the company to source responsibly without
harming the environment and reducing waste from the products being processed by them.
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Legal factors: the legal factors that marks n spencer is affected by are the consumer rights, health
and safety regulations, antitrust laws and other legal factors that the company needs to abide by
in the country the stores are put up. Hence, to avoid losses the company ensures to abide by the
legal laws of the country.
D2 Evaluating change that has come across in the organization after analyzing
the micro and macro environment of the organization
Once the leader has performed an analysis of the internal and external environment of marks n
spencer it can change its management styles according to the situations pertaining at that point of
time (De Vries et al, 2010). The environmental scanning method will help the company to access
both internal and external factors of marks n spencer and gives early signs for the need to bring
about change within the strategy of the organization and make adjustments that will help the
strengths of the company to combat the weaknesses of the company.
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LO3
P5 Evaluate the hard and soft skills that are practiced within marks n spencer
Hard skills are the skills that are technical in nature and can be evaluated and measured. Hard
skills are often gained through education, certified courses, and specific training. The skills
include technical skills, problem solving skills, IT skills etc. Such skills can also be gained
through past experiences within the career or the education. In today’s technology driven world
every profession within the business organization requires hard skills to be present only then the
candidates will be employed to any organization. Every smallest profession in today’s world
requires basic computer skills such as Microsoft office, Microsoft power point etc. to manage the
operations of the company. Even to be a part of marks n spencer hard skills are required though
the company does not operate in the IT sector still it is essential for all the employees to know
and develop hard skills to manage the operations of the company that is set online.
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Soft skills are often viewed as personality traits an individual possess which is also a necessary
part to be that is required by the employers to be present within all their employees in marks n
spencer (Davis, 2015). Soft skills include the communication skills, creativity skills, team work
skills that are developed over time within an individual with time. These skills are necessary to
be developed to efficiently perform at workplace because it creates a positive environment at
workplace. For marks n spencer it is essential for every employee to possess both hard and soft
skills to effectively perform within the organization. Possessing both hard and soft skills is
essential for every candidate that are applying for jobs because the employer tests both hard and
soft skills in various such as written assessment that will help the employer evaluate both hard
and soft skills of the candidate so they can effectively measure the candidate’s skills and choose
to employ the candidate or no.
P6, M3 & D3 Present and future management styles required by the
technology driven world
Every organization has to balance all the fields and areas of management within the organization
to make it run efficiently. Hence, the company also has to emphasize on current and future
management styles and skills that will help the company to achieve the future goals of the
company and take a firm stand in the technology driven world.
The current skills of marks n spencer are efficient enough to run the organization effectively but
with the rise in use of technology in today’s world it is very essential for marks n spencer to
switch to new styles of managing the organization by developing new skills and expertise that
will help the company come out stronger and easily face challenges in the near future.
There are essential skills that marks n spencer will need to develop within their employees to
face the challenges that might erupt in the near future. The skills are discussed below.
Technology is already created chaos within many organizations in the present generation
because most of the companies have switched to online websites it is become essential
for other companies also to abide by this change otherwise they will be left behind in the
race. Hence, the leaders of marks n spencer should be ready for all the technological
changes that might come up in the near future and should be able to deal with the chaos
that it might cause in the company and effectively solve it.
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