Leading Business Organisations: M&S Analysis

This report analyzes Marks and Spencer's (M&S) current business challenges, focusing on their declining fashion sales. It explores motivational techniques, leadership styles, and organizational structure, recommending improvements based on theories like Maslow's hierarchy and Herzberg's dual-factor model. The report suggests a shift towards democratic leadership and a matrix organizational structure to enhance employee motivation and productivity, ultimately aiming to revitalize M&S's performance.

LEADING BUSINESS
ORGANISATIONS
COURSEWORK ASSESSMENT
SUMMER TERM 2016
TABLE OF CONTENT

INTRODUCTION..............................................................................................................1
1. Motivational techniques of Marks and Spencer's to motivate their employees....1
2. Leadership style of CEO in M&S.........................................................................5
3. New management structure of M&S....................................................................7
CONCLUSION................................................................................................................. 8
REFERENCES.................................................................................................................9

INTRODUCTION
Marks & Spencer (M&S) is a British retail company and the largest network of UK
department stores, with more than 1300 stores spread in 59 countries around the world.
(http://corporate.marksandspencer.com/aboutus/key-facts)
Founded in 1884, by Michael Marks and Thomas Spencer in the city of Leeds, the
organisation revenue today is of £10.4 bn, divided between the Food (£5.4 bn), Clothes
and Home (£3.9 bn) and International Market (£1.1 bn).
Despite its various segments, this assignment will focus on analyzes of the clothing
segment and critically discuss the performance of the company.
On 2 April 2016, M&S announces Steve Rowe, previously head of the food department,
as the new chief executive of the clothing business.
The new CEO faces the challenge of lead the company into a revolutionary path and
restore its fashions division after a greater than the expected drop in sales.
(http://www.express.co.uk/finance/city/632575/Marks-Spencer-new-CEO-urged-revive-
clothing-business).
The conferred case study have hereby depicted about the failing tactics of M&S
where they have recently dealt with a tremendous loss of 5.8% in its quaterly sale of
clothings. This failure have overlooked their 0.4% of rise in food provisionings despite of
dealing with a highly competitive environment of its active number of markets.The
overall online sales of M&S is however raised by 20.9% where it only suffered due to its
falling shares in fashion department.
Employees are considered as one of the most prominent resource of the
organisation where they play a primitive role in accomplishing their affiliated
functionalities. Productivity is hereby referred to be a vital consideration of the entities.
This is where the active enterprises can significantly attain productive number of
employees with a prior implication of motivational tools at their respective workplaces
(Haeckel, 2013). Into which, a gratified staff is entitled to bring such fruitful outcomes for
the organisation where their managerial bodies should also refer to implement some
vital methods of retaining them. The below report have demonstrated a similar
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orientation of motivational elements in Marks and Spencer (M&S). This is where the
conferred articulation has together been related to the enforced style of leadership by
the managers to effectually lead their subordinates.
1. MOTIVATIONAL TECHNIQUES OF MARKS AND SPENCER
1.1 Significance of Motivation
Motivation is directly linked to the performance management of organisations.
This is where M&S together works with a similar cogitation of work into which they firmly
believe to eminently perform into their active number of markets. For which, the cited
firm has recently taken a drastic approach of appointing a new CEO into the
organisation. This was mainly considered to be a supportive conclusion of some
antecedently occurred consequences of loss (Harrison, 2012). It is where M&S have
significantly dealt with a lowered state of productivity by their appointed staff members.
This was however referred to be a leading deficiency of productive formulations by the
workers where they were mainly facing a low standard of certain boosting elements at
their workplace. It is therefore referred to be a vital consideration of the appointed
leaders into the enterprise where they are supposed to constantly boost up their
subordinates in a desired format.
Need base of motivating employees
With reference to which, M&S is too referred to inculcate some finer practices of
retaining their efficient number of employees at the workplace where motivation is yet
again considered bringing some other relative points of welfare. This is where an
amended existence of motivational tools directly results into less number of
absenteeism into the enterprise with an equivalently low turnover of employees. This
together helps to eliminate any negative deliberations from the mind states of appointed
workforces with a direct relation to their raised level of performances (Nohria and
Khurana, 2013). This is where the motivated employees will eminently learn about some
effective measures of working into a changed perspective of market. It is referred to be
the most essential part of such implication where attaining a dynamic nature of work is
of utmost important for all organisations. This assists them to work into a desired
manner with a corresponding attitude towards fulfilling the altered need and demands of
the consumers. Such practices thus aids the quoted firm to significant satisfy their entire
base of clients and customers with a rising recognition of their brand.
Motivational techniques
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It is with reference to state about some vital methods of motivating the workforce
at M&S into a much enviable manner. It is mainly to attain some fruitful consequences
at the end where the employees of M&S will be working with a more productive
approach of performing into a stipulated format (Pava, 2015). A productive work into a
standardised format at a predefined time period, are considered to be some critical
assumptions of the establishments. M&S is however facing some demoralized content
of non working into a productive manner and where the organisational bodies are
together complaining about a neglected state of work. Due to which, they are basically
losing their confidence level and thus unable to work within the given frame of time and
into an assimilated format.
As a result to which, M&S is now rigorously looking to apply some considerable
measures of motivating the employees at the workplace. It thereby requires them to
inculcate some finer motivational strategies at the workplace. It is thence with a leading
cogitation of retaining the efficient number of staff members into the organisation who
can eventually perform into a coveted format of work (Rafols and et.al., 2012). Such
proficiently built in practices of motivating the workers will also result into a lowered
occurrence of absenteeism and employee turnover where most of the dissatisfied
employees often tends to do the same. Below referred are hence considered to be
some impelling measures of retaining the workforce with certain assumptive tactics to
be applied by the administrative bodies of M&S- Creating an optimistic environment of work- This is referred to the foremost
tactic of motivating employees at the workplace. It is where the managerial
parties of M&S should firstly refer to provide a fine system of tasking to their
respective employees by inculcate a fine surrounding of work. It is specifically
meant to build up a positive surrounding of work where the quoted entity will
enormously emphasis upon working together in teams and groups by sharing
ideas with one another (Schaltegger, Lüdeke-Freund and Hansen, 2012). An
open format of interaction with the higher bodies of the organisation is referred to
yet another leading factor. This is where the staff members will be substantially
able to share their work related concern directly with their upper administrative
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parties. This will significantly help the employees of M&S to work into an
undisputed environment at the workplace with a more productive approach.
 Setting Goals- This is referred to be yet another strengthening factor of
motivating employees into a favourable manner. It is basically considered to be a
self motivational tools where the designated employees of the cited entity will
refer to themselves set their work related targets (Smith, Gonin and Besharov,
2013). This will significantly higher their performances where they will be together
able to complete it within a stipulated frame of time. This is referred to be a fine
system of retaining the employees at the workplace with some reasonable and
achievable acquisition of targets by the M&S.
It is mainly with reference to state about the grievance policies of M&S where
their HRM consultants should hereby apply some apparent methods of conflict
management. It should be also backed up by some impelling tactics of open
communication into which, the workers can directly refer to their higher authorities in
order to discuss any work related concerns. This will gradually aid them to get over their
diminished exposure of sales in clothing where the employees can also refer to present
their considerable suggestions to the upper level bodies of M&S.
Motivational theories and models
It is with support of many proficient researchers and theorists who have given
their vital contribution in refining an actual need of motivation into the organisations
(Stahl and et.al., 2012). As a result to which, they have mainly come up with some
effectual invention of varied motivational theories and model to support their epochal
cogitation. Maslow's need hierarchy theory and Herzberg's dual factor theory are the
two such fruitful outcome of their respective conception. Below, the defined measures
are referred to their anticipated construction with some related factors to be inculcated
by M&S at their workplace, as a momentous mean of retaining the staff members- Maslow's Need Hierarchy Theory- This theory has reflected the foundation of a
famous psychologist named Abraham Maslow in the year 1943 (Gardner, 2012).
This is where he has basically argued for a fact according to which, the
employees can be motivated with a fine assistance of the below five attributes of
his proposed model-
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◦ Self Actualisation needs- This is mainly referred to the person who gives a
vital preference of contributing their creative skills at work (Trkman, 2013).
They together believe in tasking with a high morale of work at the workplace
where M&S should therefore provide such amenable chances of working to
such employees.
◦ Esteem needs- It is with respect to define about such employees into the
organisation who gives a prior preference to their self recognition needs
(Spais and Beheshti, 2016). This is mainly with reference to attain a
recognisable position at the workplace. It is where the solicitous parties of
M&S should hereby refer to give a significant chance of performing to such
employees.
◦ Belongingness needs- It is especially referred to the employees who gives a
primary preference of making friendly relationships at work (Sinkovics,
Sinkovics and Yamin, 2014). Such sorts of individuals are vitally motivated by
an open work culture into the organisation where they could refer to build a
stronger kinship with their peers and colleagues, etc. According to which,
M&S should thereby refer to provide a free interactive approach among the
working professionals.
◦ Safety needs- It is in order to state about some vital deliberation of working
into a safe and secured formation of the workplace (Röglinger, Pöppelbuß
and Becker, 2012). It is with reference to inculcate a refined culture of work
with some substantial methods of maintaining the healthy prospective of their
employees. This together relates with some health related benefits to the
appointed employees of M&S in terms of rendering them health insurance
and certain accidental clauses of welfare, etc.
◦ Psychological needs- This is referred to the employees who are more
considerate about their basic amenities of living into a standard way (Perera
and et.al., 2014). The M&S should hereby refer to the basic wage level of
such employees where they could sufficiently lead their lives with it.
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 Herzberg Dual Factor Theory- This is a fine research particle of Fredrick
Herzberg where he significantly came up with this particular theory in the year
1959 for motivating the employees into the organisation. It is mainly with two
leading dominants of his proposed model, as delineated below:
◦ Health constituents- These components are considered to be such amenable
factors that directly results into degrading the existence of job dissatisfaction
from the employees (O'Reilly and Tushman, 2013). It is where the entities
should hereby refer to an apt formation of their company policies and
procedures as a mean of retaining the efficient staff members into the
organisation. An interactive relationship with the co-workers with an
appreciable supervisory is also a resultant constituent of these factors. This is
where the employees according to this peculiar factor of this theory gives a
primitive preference to the working conditions of their workplace with an
interlinked cogitation of leading a secured job life.
◦ Motivational constituents- These constituents are also linked up with the
above defined theory of need hierarchy model into which, it is basically
related to the satisfier elements of growth and recognition (Hoque, 2014). It is
specially meant for the employees who gives a prior preference of working
with more number of responsibilities and achievements with a promoted work
profile and raised pay scale.
Hence, on relating to the given case scenario of M&S, it is recommended to the
administrative parties of M&S to associate with such effectual tools of motivation where
they can gradually attain the requisite measures in their organisation. On relating it to
the given case study of M&S where they are dealing with a diminished sale in their
fashion department, the appointed set of marketing team should be hereby motivated
with some ascertained factors of both the above referred models. So that, they can
hereby determine some vital constituents of mitigating the preferential needs and
demands of their users.
2. Leadership style of CEO in M&S
Significance of leadership
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Leadership style has a straightforward relationship with motivation where the
leaders are themselves referred to be the primitive source of retaining the staff
members into the organisation. However, their adoptive styles may critically differ from
one another where it basically depends upon their distinct nature of work and attitude
towards it. Thus, on referring to the scripted case of M&S, one can directly refer to the
foremost need of motivating the workforce into the establishment (Harmon, 2014). This
is where the newly appointed CEO is therefore referred to implement a considerable
style of leading the workforce into a desired manner by which they can in turn render a
productive work to the firm. It is where the leaders are appointed with such vital
cognition of motivating the entire team with some effective measures by which the
leader should act as a role model to the team members. This is where the leader should
also possess some requisite skills to impressively handle their group members by
together managing their respective assignations. The current style of Steve Rowe have
hereby depicted an authoritarian leadership upon the appointed set of workforce. It is
where the appointed set of workforce are hereby bound to perform according to the
strict instruction of work. This has however resulted into a pessimistic outcome where
the marketing team is referring to the standardized strategy of premium pricing goods
and thus faced a diminished prospect of their sales. It has mainly stroked with the
applied price strategy of its contenders where they have referred to enforce a
considerable pricing of their products.
Efficacy of leadership styles and their varied forms
A leader as a direct tool of motivation in M&S is primarily required to associate
with the above ascertained practices of motivating the staff members with a merged
formulation of enforcing a reward system. This reward system is an absolute outcome of
performance management where the salient performers will be gratified on the basis of
their appreciable work. On refereeing to the present style of leadership in M&S, one can
directly regard the implementation of an autocratic style of leading people into the
organisation (Gulati, Puranam and Tushman, 2012). However, with change of time, the
company should refer to some other accessible forms of leading their workforce into a
desired manner to acquire some appreciable consequent of a productive work. It is also
due to a factual clause of pleasing content in workers where happy and gratified
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workers are always supposed to work into a productive manner. Some famous
researchers have together made their vital contribution in pioneering some significant
styles of leadership where M&S also believes to implement the innovated methods of a
notable psychologist named Kurt Lewin. As a result to which, below conferred styles of
leadership according to the Lewin's framework in the early year of 1930's are mentioned
with their relative number of considerations- Autocratic leadership styles- It is basically known to be a ruling style of leading
the organisational bodies with an authoritative stature of work by the leaders.
This is where the appointed leaders of M&S hereby works with a sole reflection
of individually framing certain significant decisions for the firm. This is with no
prior assistance of other group members where the team is only required to
follow the assumptive resolutions of their respective manager or leaders. It
however seems to be a demotivating element with no prior involvement of the
workers to suggest their own idea and beliefs of working (Galaskiewicz, 2016).
Despite of which, they are only referred to work according to the given
instructions and guidelines of their workers. This is a useful implementation at
time of exigency to make some quick and effective decisions into the
organisation. However, it is together referred to bring a demoralised stature of
work which may result into a raised state of absenteeism at the workplace with
high turnover of employees from the establishment.
 Democratic leadership styles- This is referred to be the most preferential style
of leadership with a participatory format of leading the appointed employees into
the enterprise. It is together known to be an associative form of handling the
workforce in this digital era. This is where the team members equivalently
participate into the decision making procedures of the firm with a correspondent
approach towards the leader. The final resolution is however into the hands of
the leaders where they pleasurably welcome the suggestions and advices of their
team members. This significantly leads to encourage a creative formulation of
working with higher satisfaction of job into the employees (Cummings and
Worley, 2014). It is mainly because of the participatory element of this particular
style that gives a vital sense of belongingness to the workers. Due to which, the
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employees hereby work with a more productive concern with timely submission
of their varied assignations, etc.
Hence, on refereeing to the given case script of M&S, one can recommend a vital
enforcement of democratic leadership style to their designated leaders where it may
directly result in producing certain optimistic outcomes for the firm. Such altered tactic of
leading the employees will also assist the CEO of M&S to vigorously cope up with their
declining sale of clothings. It is mainly with reference to the applied method of
democratic leadership where the participant bodies of employees can hereby present
their innovated thoughts and beliefs. It is basically to fabricate some reformed clothings
in their respective fashion department that will consequently enhance their profits and
revenues.
3. New management structure of M&S
It is mainly to define the new inculcation of organisational structure in M&S that is
mainly referred to bring some considerable and positive changes into the enterprise. It
is where they are currently dealing with some atrocious outcomes of low productivity by
their respective workforce where a lessened boosting element into the entity has
apparently assumed to be its resulted consequent (Achtenhagen, Melin and Naldi,
2013). However, the newer structure of their establishment is vitally considered coming
up with some affirmative resultants with its below mentioned implementations-
Matrix organisational structure- This is considered to be an effectual
organisational structure for M&S to significantly obviate the disputed concerns of the
entity. It is where the organisation hereby refers to work with a dual consent of their
functional and productive approach. The teams are hereby divided into two leading
groups with a prime existence of product manager and functional manager. It therefore
helps to work with a balanced association among different segments of the enterprise.
This is mainly in regard to specify some distinct departments of customer service,
marketing, sale and operational production, etc. It is where each of the departments are
specifically handled by a superior in charge with no state of confusion (Audretsch,
2012). Organisational structure plays a primitive role with a subsequent measure of
defining the policies and procedures of the company where it together formulates an apt
culture of the workplace. The leadership strategies along with a collaborative sense of
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motivational tools are also referred to be a consequent outcome of organisational
structure. It therefore gets important for the administration of M&S to thoughtfully
implement a particular structure into their organisation which will further reflect the other
affiliated deliberations of working.
A matrix structure of organisation is hereby referred to be the best suited
approach into which all organisational sections are proficiently divided in portions with
hired expertise to handle its varied functionalities. It thereby associates with some vital
beneficiary components into which the resource in each of its department can be
expeditiously used by the appointed employees in it without any prior wastage of the
accessible contents. The flow of communication in this particular concept is together
referred to be a considerable factor that aids the organisational bodies to freely interact
at all the levels (Brammer, Jackson and Matten, 2012). This is considered to be the
most impelling tactic where the employees are significantly able to share their work
related concern with the top level management as well. It further results in motivating
the workers into a desirable manner where the organisation is also benefited by such
cooperative behaviour among their employees. This is mainly due to a speedy
procedure of decision making where the togetherness of workforce definitely comes to
an innovative determination which eventually benefits the entire organisation. However,
the participative style of leadership in M&S is also an associative part of such beneficial
resultants into the enterprise where the employees assuringly works with a motivated
sense.
On relating it to the present case script of M&S where they recently dealt with a
huge declination of sales in their fashion department. It was however depicted to be a
consequent factor of their low contending prospect. It is where the competition have
tremendously raised these days and as a result to which, M&S is somewhere lacking
their potent attributes of proposition. Thus, in order to raise the sale of their fashion
department, the newly appointed CEO should hereby consider to make some new hiring
of fashion designers in the firm. This is mainly to extend their invented skills of
designing the cloths where they can continue with their applied strategy of premium
pricing policy. This will also correspond with their marketing tool of communication
where they can together refer to hire a famous fashion figure as a new face of their
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