LSC UoS BA Business: Morrison Case Study on Leadership

This assignment analyzes the organizational theory and practice at Morrison, a leading UK supermarket chain. It examines the management styles, principles, and functions employed by CEO David Potts, highlighting his use of a democratic management style and key management functions like planning, organizing, and controlling. The report further details the steps taken by Potts to adapt the organizational structure to a hierarchical model, emphasizing the importance of communication and planning in facilitating change. The study also explores the transformational leadership style of the CEO and its advantages and disadvantages. Moreover, it investigates the effects of power, influence, and conflict within the organization, along with the various types of motivation employed. The assignment concludes by suggesting strategies to improve organizational performance and enhance overall effectiveness, providing a comprehensive overview of Morrison's leadership and management practices.

Organisational Theory
and Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
A-Management styles, principles and function used by CEO of Morrison ...............................3
B-Steps taken by David Potts to adapt change in organisational structure ................................5
C-leadership style of the CEO of that firm to enhance the organisational effectiveness............6
D-The effects of power, influence and conflict .........................................................................7
E-The various types of motivation..............................................................................................8
....................................................................................................................................................9
F-Corporate examples:..............................................................................................................10
G-What are the strategies you would make to improve organisational performance?.............11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
An organisation is a social institution that consists of groups of individuals working
together to meet specific business goal and objectives. Organisational theory refers to study of
organisations that helps in identifying common purposes of problem solving, increasing
employees productivity, efficiency and meeting demands of the contributors. The chosen firm for
this report is Morrison. It is among the four leading chain of supermarket based in UK and
operating within retail industry. The quoted organization provides range of products and services
such that grocery, food products and beverages. It also supply clothes, books, CDs, magazines,
DVDs etc.
The report will evaluate the management style of CEO of Morrison, along with its
principles and functions of management. It will further analysis the steps used by CEO while
changes in organisational structure and culture of Morrison to ensure growth of business. The
study will examine the effects of power, influence and conflicts in the organisation. It will
explain various types of motivation theories opted by Morrison. At last the study will suggest
effective strategies that will help Morrison to increase organisational performances.
MAIN BODY
A-Management styles, principles and function used by CEO of Morrison
Management styles: Management plays an important role in strengthening the bond
between business and employees. Management styles is a process or a method used by a
manager to deal with the workforce in an organisation. There are various styles of management
such as authoritative, consultative, paternalistic etc. Among all the CEO of Morrison, David
Potts uses democratic style of management to manage employees performance within workplace.
Democratic management style is also known as collaborative, participative or affiliate
style of management. With the help of such style, company ensures participation and
engagement of employees in organisational process and also encourages other employees to
present their point of views (Okello, 2018). The CEO focus on motivating and encouraging
employees to share innovative and creative ideas, suggestions, view and thoughts and valuable
effective solutions for tackling critical issues. Such activity not only ensure employee
involvement but also leads worker to contribute for Morrisons success and growth.

Management functions: Henri Fayol has given various effective functions and
principles of management and in the same way, CEO of Morrison also uses some of the effective
function of management, such as-
Planning: The most important function of management is to plan various strategies,
make vision, secure objectives to meet future goals of Morrison. It is their job to shape the future
course of action, operations and strategies (Martens and Carvalho, 2016).
Organizing: Management need to organize the work force and activities within the
organisation. Thus, through this function company recruit the right people for the job and also
organize various training and development programs for improving employees skills and
capabilities.
Controlling: Management supervise and control activities and work force within
Morrison. It line up with business objectives and policies and work in the direction to meet
business goals.
Management principles: David has also adopted some management principles from
Fayol's model, which are as mentioned below:
Division of work: It is a process by which work is being divided into small departments
and groups within an organisation (Morden 2017). Such as HR department, production
department, planning and research department etc. division of work in Morrison have lead to
specialization such has increase the work efficiency, productivity and resulted in Morrison's
profitability.
Balancing authority and responsibility: Authority stand for power and responsibilities
stand for duties according to Fayol there should be a balance between both the aspects. David
Potts has accomplished successful management of both authority and responsibility that have
reduced organisational complexity and the following have made the work process run flexible.
Discipline: Discipline refers following and respecting rules and regulation of Morrison
and behaving responsibly towards works and task (Slack and Brandon-Jones, 2018). To ensure
such David has establish good supervision and focus on the concept of self-discipline among the
employees.

B-Steps taken by David Potts to adapt change in organisational structure
Morrison has hierarchical structure of organisation. It is a pyramidal structure of
organisation which runs from the top to the bottom. Earlier it used matrix structure of
organisation that have resulted in increasing complexity in the command chain. Such structure
works effectively for start-ups and small enterprises but for a firm like Morrison it increased
pressure and complexity (Gaspary, Moura and Wegner, 2020). Thus, David Potts decided to
opted change in the organisational structure and it adopted hierarchical structure. This kind of
structure promote proper flow of order and commands with Morrison. It has reduced the
complexity of the organisation, it has enhanced and fasten the work process, which directly
resulted in increase of productivity level and company performances.
Before comprising change within the organisational structure David analysed various step
the following are mentioned below:
 Before making the decision it acknowledged the need for structural change for the
organisation. It keenly observed the difficulties and problems with the present structure.
 The CEO of Morrison had effective communication about the problem with present
structure of organisation. It took suggestions and opinions of people before developing
such change.
 Further it made strategies and plans to carry out the operation effectively.
 The CEO at next step controlled and supervised the implementation of operational
strategies within Morrison.
 The last step refers to the successful change of organisational structure.
The change in organisational structure also promoted positive organisational culture in
Morrison. It helped in building interpersonal relation between individual and management. Such
hierarchical structure defined the exact boss of the employee and helps to stay motivated and
loyal towards firm (Nene and Pillay, 2019). This healthy culture of organisation promoted fair
competition. It lined up the workforce with Morrisons goals and objectives and provided right
direction to the workforce. Such effective organisational culture also helped in creating a brand
image of Morrison.
It created a optimistic impact upon employees as well. Under the guidance of a clear
headed leader employees improved their level of productivity and performances. Individual
working under such structure of organisation are clear about their roles and responsibilities

(Serpa, 2016). The work culture promote unity, team work and healthy relationship between
employees. All these thing helped firm grow rapidly, effectively and it ensured Morrisons
success.
C-leadership style of the CEO of that firm to enhance the organisational effectiveness.
Leadership is the style used for motivating the group of people to achieve the
organisational goals. This means directing workers with the strategy to meet the company needs.
The CEO of Morrison is David Potts from 16 march 2015. the leadership style used by the CEO
of Morrison is transformational leadership (Al-Mahruqi and et.al, 2018).
Is a leadership style in which the leaders of the company encourage, inspire and motivate
the employees by creating change that will result in future growth of the company. It was
introduced by James MacGregor burns. The David uses this style which will help to inspire the
positive changes towards the employe and generally this is used by the leaders who are energetic,
enthusiastic and passionate about their work. A leader is someone who can quickly accept their
team members what are the strengths, weaknesses and motivates them to help each individual to
improve. It also helps to promote employees to givecreative suggestions for the betterment of
the organisation. The goal of this is to engage the people and empower them to be creative.
Advantages:
Transformational leadership lowers turnover costs: The company uses this to satisfy the
needs of the employees and help them to retain more customers as well. leadership is optimistic
in nature. It encourage the development of new skills, free-thinking, direction, get together
company objectives and adoptive a positive company culture. Leaders tend to carry employees
more as compared to other leadership. This also make people to feel that they also have specific
role in firm (Busby, 2020).
People are treated as individual: The leaders of the company believe in power of perspective
which help them in treating each employee as individual. The approach of the CEO is to keep the
environmental and friendly relation which will result in equality between all the employees of
the company.
It encourages ongoing learning and development: Leaders do work to achieve final goal and
vision. This is the best to encourage people with the learning process for the position.
Disadvantages

It requires constant and consistent feedback: The leaders of the Morrison should maintain the
enthusiasm with their team. The leaders must give feedback to the followers that what progress
they have made towards the company.
Risk taken through transformational leadership can be disruptive: The leaders uses
charismatic approach to serve role model to their organization and uses this to show people how
goals and targets of the company are achieved. If the leader accepts endangerment that are
detected and unreasonable or unneeded, then the actions of the leader become harmful to the
team and their organization.
It can lead to employee burnout: Their are some unreasonable deadline for the employees that
is time of productivity at higher level which will lead to burnout occurring with the followers
of the company.
D-The effects of power, influence and conflict
 Power of reward: This may be done by the company giving bonus, raises, promotion by
rewarding individuals for compliance which ones wishes. For example the leader of the
company give compensation on time to the employee when they meet the objective for
the project given to them.
 Power of coercion: This is used by the Morrisons to punish the employees of the
company for not following the instruction and order given to them by the higher
authority. Like employee carries out an order under fear of losing their job or annual
bonus.
 Legitimate Power: This power is used when the employee in the organization accept the
authority of the individual. Having the position of power in an organization like the boss
of the company is the key member of the leadership team.
 Expert Power: It is the power used by the people for expert knowledge to follow
instruction and order. Like the marketing director of company may promote to the higher
place because of their knowledge in the field of marketing is very high.
 Referent Power: This is related to the ability of the leader to influence follower because
of their respect, admiration and identification towards leaders. It is like what the
employee of the company think about their leaders would do for them. Examples based
on a high level of identification with, admiration of and respect for the power holder
leader.

 Organizational conflict: This is the big conflict for the Morrisons CEO because he have
to see the task, relationship and value with its employees like communication,
collaboration and respect which will help them to go a long way towards management.
Examples work style differences and cultural bases struggle (Furlong and et.al, 2019).
 Employees and conflict: This is very common conflict that is faced by every
organisation on the daily basis for the same work and at the time of discussing something.
This mainly occurs with the new employee who are not familiar within the leaders what
they think about that.
 Mediation of conflict: This is related to the conflict between the people of the
organization. It is the duty that leaders are responsible for creating a work environment
that enable people to flourish. The leader can resolve the issues between the employees.
E-The various types of motivation
It is the process of motivating that guides, initiates and maintain goal oriented behaviour
that involves biological, emotional, social and activate behaviour. The Morrison company uses
maslow's theory for the motivation of the employee. Maslow's theory says that individual must
satisfy lower after before going to high level growth (Maslow's Hierarchy of Needs 2020.). Once
the level is fulfilled the next is to motivate employees. The stages of maslow theory are:

Physiological needs: This are the basic issues of the CEO because they are related to the
survival such as salary, food, drink and shelter and if it is not satisfied then human cannot work.
The company motivate the people by satisfying oll the needs (Komninou, Halford and Harrold,
2019).
Safety needs: If the physiological needs are fulfilled then the need for security and
security comes which are related to the employment, social welfare, law and order, freedom for
fear and safety against accidents and injury. Like medical insurance, financial needs and
retirement accounts.
Love and belongingness needs: The CEO of the company create a feeling of social
belonging with their employees to satisfy the needs of love, trust and long-term relations.
Friendship, intimacy, giving affection, trust and acceptance are some examples of this.
Esteem needs: This is the fourth need that is followed by the firm which are related to
respect for others, in the sense of achievement and confidence in the ability of employees. Like
thr leaders of the company encouraging the staff and recognize rising stars in the company by
outstanding achievement's confidence, strength, self-belief, personal & social acceptance and

respect from others. In this the respect and reputation is most important for self-esteem and
dignity (Lee, 2018).
Self-actualization needs: In the company it means translation to maximizing one's true
potential and by motivating that they want to be best in the work what they do and the manager
job is to realize them about that. With the help of this employee feel trusted and empowered in
the jobs and in future. They are also related to the rewarding employees for their good
performance based on their work. That are growth and development of employees, creativity and
desire ti be expressed as economically, academically or athletically.
Their is one more need that company follow is transcendence needs which are related to
motivating people by values which is beyond the personal self example service to others and
religious faith (RASHID, 2020).
F-Corporate examples:
Morrisons used transformational leadership which will result in fulfilment of needs of the
organization. Example the CEO uses that for the betterment of the company and for the
employees working which will result in high growth of the firm (Gallagher and Morison, 2019).
Mark Zuckerberg the CEO of Facebook company who is known as being the motivator. Like he
inspires his staff and employees by clearing the vision of the company and the steps to achieve
goals needed. Example by recognising the strength, weakness he motivates and help each
individual to improve in their field.
The leadership style of amazon is visionary which focuses on customer service. For
examples rights of the customers and obsession. The CEO of amazon is Jeff bezos who believe
in thinking and advice its employee also same and have high standards.
One of the way that Facebook uses to motivate its employees lies on the flexibility they provide
to the company For example they provide desktop computers and assign office space to the
people so they keep motivating that they are also the part of the company.
The leader of the amazon use maslow hierarchy to motivate its employee for example he
motivate it employees by learning, growth, opportunities and work environment (Gauja, Sawer
and Simms, 2020).

G-What are the strategies you would make to improve organisational performance?
For improving the the growth and performance of the company it must see the what is the
best way to start-up then execute the driven performance by focusing the business (6 Steps to
Improve Your Organization's Performance 2020). Improvements are ongoing process which is
faced by every organization and each have specific needs including:
Strategy and mission: Changes in plan of action and operation are often difficult to map
out, but, as a business proprietor, you need to keep a reminder how well is your organization is
coming together in your mission, and you need to be prepared to alter scheme if needed.
Organizational structure: this are related to the roles, objective and responsibilities of
individuals, team and department. It also determines how information flows between levels
within the company and outline that how certain activities are directed to achieve the goals of the
organisation.
People: according to people the improvements in organization occur when personnel
consist of turnover, hiring, training and other changes that are done for the benefit of the society.
This also include promoting a team atmosphere by giving regularly feed back by communicating
the purpose and passion and rewarding valuable contributors. With the help of social, emotional,
intellectual and physical development the CEO of the Morrisons company can improve the
organizational performance. For the improvements the firms must have proper time
management, try to do important tasks first, set clear goals and have to improve communication
skills (Westwood and et.al, 2017). If the CEO of the company want the groth of the company he
should not doo oll the work at his own and should allot the work to the right person so that the
work will be completed on time and correctly done. The employee must participate in
mentorship because they have chosen their career in this field.
Knowledge: when the company is changing its strategy and plan the leader should have
full knowledge about it so that it should be cleared properly to the employees for the growth of
the company.
CONCLUSION
In the above report it has stated that what are the management style of the CEO along
with the principle and the functions of management used by the retail firm which is Morrison
company and the steps taken for the change in organisation structure in order to achieve higher
growth of the company, changes brought by the CEO for its employees and what are the impact

of that towards the organization. It has also discussed what are the impact towards the company
at the steps and strategy taken by the CEO and how to deal with it. The CEO of the Morrisons
uses transformational leadership style to enhance the organisational effectiveness and the effect
of power, influence and conflict of the forms are also discussed. The business uses the maslows
theory to motivate its employees to achieve the organizational goals. It report have also
explained the appropriate example id the companies for their leadership styles and motivation.
Lastly in the project it has also suggested what are the strategies you can make to increase and
improve the organizational goals.