Organizational Theory and Practice: Mothercare PLC Management Report

This report provides a comprehensive analysis of Mothercare PLC, a British retailer specializing in products for expectant mothers and children. It explores the role of management styles, including democratic and autocratic approaches, as implemented by CEO Mr. Glyn Hughes, and their impact on ...Read More

ORGANISATIONAL
THEORY AND PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
Role of management style...........................................................................................................3
Organizational structure and culture of the Mothercare plc and it’s impact on the staff............5
Leadership style of CEO of Mothercare plc................................................................................6
The effect of power, influence and conflicts at the Mothercare plc............................................7
Motivation use at Mothercare Plc................................................................................................8
Literature Review........................................................................................................................9
CONCLUSION & RECOMMENDATION....................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Organizational theory can be defined as the study of the behaviour and nature of
organization and its business environment. In other word, a set of concepts and principles that
offers theory or tool for systematic study of organization structure, functioning and it’s
performance in the business market. It is a effective approach that helps to understand
individuals or group of individuals behaviours who communicate with each other to perform
their roles so that easy to accomplish common goal (Abe and Mason, 2016). There is various
type of organization theories such as contingency, organizational structure, classic and others
that helps individuals to understand organization’s behaviour and it’s performance in the
business market. Most of the organizations practices these theories in the organization so that
easy to improve organizational and enhance high engagement of the individuals in the
workplace. Organizational structure is one of the main organizational approach which supports
to outline certain activities directs in order to gain the goal of the corporation. Organizational
activities are roles, responsibilities that helps to raise goodwill of company in the business
market. It identifies that how information flows from between different levels in the company.
While contingency theory helps company to make appropriate decision in the different situation.
it helps individuals to adapt different style as per the situation requirement so that they easy to
comply with situation and maintains sustainable business performance in the market.
To understand role of organizational theory has an example Mothercare plc. it is a British
retailer which has specialization in product for the futurist mothers. It is famous as general
merchandise for the children up to eight years of age. It is enlisted on the London Stock
Exchange and offers worldwide service to the customer. It is headquartered in Cherry Tree Road,
Hertfordshire (Ahmed, 2017). Organization retails baby products along with wide variety to the
customer. Organization operates in 38 countries through it’s 1227 franchises which is located
across the world. The brief study provides understanding about management style and how its
CEO of the Mothercare plc apply this style to operate organization effectively. This report
includes leadership style of the CEO which is applied to improve organizational effectiveness.

MAINBODY
Role of management style
Management style is a set of principles that undertakes methods, abilities and techniques
or tools which used by managers to handle favourable and non-favourable situation effectively. It
helps to define roles and responsibility of hierarchies that maintains wellbeing of employees
within company. A good management style helps company to gain high productivity in the
company and achieves short-term and long-term goals in the predefined time. There are various
type management styles such as autocratic, vision, transactional, servant leadership styles,
democratic and transformational management style. These style helps company to manage it’s
staff effectively and maintains brand position in the business market (Bhalla, Qazi and Miralam,
2019). The CEO (Mr Glyn Hughes) of the Mothercare plc adapts different type of management
style to handle all the situation of the company which they have faced over the time period.
Mothercare plc believes that when individuals get values from the company or workplace that
makes them feel as home and connects them with emotion as result, they try to give high
productivity in the working. Glyn Hughes adapts democratic leadership in the organization so he
can understand basic needs of individuals in the workplace. so, Glyn Hughes offers flexible
working hours facility to the staff that motivates them to gives quality in their working and
achieves number of tasks before deadline. Thus, CEO maintains individual’s wellbeing and gains
success on large number of projects. Manager offers open communication facility in the
workplace so that individuals can communicate regrading their issues and work pressure issues
as result eliminates conflict of staff.
To promote brand popularization adapts brand equity strategy by the Glyn Hughes in the
organization. whereas CEO organizes training and development program for the staff so that they
learn how to deliver best services to the customer while retaining products in the workplace. This
training program leads effective result in the organization because individual become proactive
by developing number of skills and attracts customer by offering effective shopping package.
Thus, CEO easy to improve staff performance in the workplace (Li and et.al., 2016). Later on,
he adapts autocratic management style as well which allows him to make decision extremely
quick and supports to gain short-term goal in the peak time. This style helps company to gain
competitive advantage from the competitors. Currently company faces hardship in the UK

market that’s why planning to close 79 stores whereas CEO develops transformational plan to
overcome the issue. He appoints new chief finance officer (CFO) wo helps to make financial
plan and develops sustainable budget. The reason behind of the appointment is that CEO plans to
make brand international and gains sustainable business performance in the global market. Thus,
Glyn Hughes has used different management style to deal with different situations effectively.
Organizational structure and culture of the Mothercare plc and it’s impact on the staff
Organizational structure is the systematic approach that aligns number of roles and
responsibilities in order to achieve common goal of the company. There are various type of
organizational structures such as functional, divisional, matrix and flat hierarchical that has goal
to meet organization’s objectives (Tourish, 2020). Functional structure is a organizational
structure that is based on business being is classified into smaller groups along with specific
tasks or roles. Each manager of different department answers chief executive officer (CEO)
about each operation because he oversees all activities of different department in the company
(Mash and Adler, 2018). It denotes CEO has power to control all the department effectively. Mr
Glyn Hughes act as proactive person who takes decision own by own and analyse individual
department performance in the workplace. Mr Glyn Hughes mainly focuses on human resource
department, finance department, IT department and marketing department who have power to
delegate number of tasks between staff members. The major drawback of the structure is this it
has lack inter-department communication that causes conflict crisis takes place among them.
There is another organization structure that helps company to set it’s objectives and supports
different levels to meet common goal on time. As same Mothercare plc is a retail company
which has wide product line such as baby products, expectant parents’ products, toys and others
and retails them worldwide to the customer. Functional organization structure follows by
organization that outlines all roles with tasks so that individuals easy to accomplish predefined
objectives (Minkov, 2018).
Organizational culture demonstrates the policy that gives guidance to the individual and
provides sense of direction. it composes shared beliefs, values and assumptions, governs the staff
and their behaviour in the company that’s why it is known as complex system as well.
Mothercare plc follows Hofstede’s organizational cultural framework that supports company to
understand behaviour of different type of people and gives values each one by offering desirable

products to the customer. This model is basically dependent on the six dimension such as mean
oriented versus goals oriented that states that mean oriented culture helps company to take
profitable advantage while avoiding risks (Nair and et.al., 2019). On the other hand, goal-
oriented culture represents that people who are task oriented and willing to achieve the desirable
goal even it associates with risks. Mothercare plc successfully maintains right balance between
the mean and goal orientation. It ensures staff that they must adapt ethical and integral way to
achieve delegated tasks on time. As same company focuses on goal-orientation whereas inspires
individuals to put high efforts for meeting the predefined goals over the time. In this manner, it
successfully removes fear of failure from their staff. Thus, company adapts all cultural
dimension in the workplace successfully and achieves large number of tasks on time.
organizational culture of the Mothercare plc impacts individuals effectively and makes staff
more creative, productive and highly competent as compared other organization’s employees. It
demonstrates that company have healthy organization culture that causes it operates worldwide.
Leadership style of CEO of Mothercare plc
Leadership refers as a ability of individuals to guide others and inspires them to achieve
common goal by motivating them effectively. It is not only helped to meet organization’s
objectives but also builds strong relationship between management and staff members. There is
number of leadership styles i.e. autocratic, democratic, situational, transformational, senior
leadership and others helps individuals to set vision of the company and motivates staff to being
proactive in the workplace (Nguyen and et.al., 2017). CEO of Mothercare plc adapts senior
leadership style to lead effectiveness in the organization’s performance, productivity and
operations. It is also known as executive leadership style because it is followed by only senior
authorities.
Executive leadership is referred to the ability of those who directs staff in the business to
promote and directs these individuals. the person who leads executive leadership style, oversees
all activities associated with business such as accomplish organizational aims, strategic planning
development and make effective decisions as well. It includes numerous types of leadership
styles such as servant leadership, authentic leadership and others. CEO of Mothercare plc adapts
this leadership which improves a set of skills and leads success in the company over the time. Mr
Glyn Hughes has all senior leader characteristics such as motivational leadership skills, problem-

solving abilities, extensive job experience in their profession and accountability which helps to
make good executive leader for others. Mr Glyn Hughes has good analytical skills that helps to
identify how to maximize employee’s turnover in the workplace (Nielsen and et.al., 2017). CEO
as executive leader uses employee performance measurement approach that helps to analyse
individual performance in the workplace, in addition, CEO easy to understand that staff
performance meets with organization’s requirement or not. By the leadership style enables to
improve productivity of company in the global market. Thus, Mr Glyn Hughes maintains
effectiveness in their working which reflects in the brand popularization such as today’s world
Mothercare plc has good brand recognition and it has enlisted in London Stock Exchange as
well.
The effect of power, influence and conflicts at the Mothercare plc
Mothercare plc is a British retailer company in UK that has wide product portfolio and
operates in the world. Company has super performance in new market which major strength of
the business and puts pressure on the competitor in the business market. Due to good
performance supports business to build new revenue stream and diversity economical cycle risk
in different region whereas its stores are operated in (Ras and Gregoriou, 2019). Another is this,
it has highly skilled workforce due to well-organized training and learning program that
automatically motivates individuals to gain more. It has strong brand portfolio that proves useful
for the organization because it easy to expand new product categories. It has reliable distribution
network that helps company to reach large number of potential markets. it has strong base of
reliable suppliers so it become easy for the company to gain raw material on low costs as result
generate high profit margin on the financial products from customers. These are the major
strength of the company which empowers it in global market.
Decreasing cost of the transportation due to lower shipping prices is the golden
opportunity for the Mothercare plc because it ships it’s product on higher costs around the world
that causes it unable to generate high profit on each product. but this opportunity brings down the
cost of company’s product as result will boost profitability and gains large market share on the
product. New technology is also another opportunity for the Mothercare plc because it can use it
differentiate pricing strategy in new market and enables to gain lifetime loyalty of the customer
for the brand. New environmental policies lead good opportunity for the company because it can

influence it’s business in other countries across the world and offers it’s product to the people.
New trends in the consumer behaviour can support company to open new market which is great
opportunity for the company (Reedy, 2020). The reason behind is that it builds new revenue
stream and classify into new market categories. Organization has an opportunity to open its
business in the emerging market because of the government agreement. These are major
influencers of the company that helps to get high rank position in the global market.
Company has limited success outside core business that is major weakness of the
company. However, it is one of the leading companies in it’s retail sector but after that it have to
face various challenges in moving to other product segment along with current culture. Company
has good organizational structure that is compatible for the present business model but it has
limited expansion in nearby product segments. Inventory cost is damn high as compared
competitors that is another conflict issue for the company Liabilities laws are different in each
country that creates threat for the company because it operates in various countries across the
world. so, it can expose numerous liability allegation given change in policies in the market.
These are the conflicts issues for the Mothercare plc so it makes plan to close stores in UK.
Motivation use at Mothercare Plc
Mothercare plc uses content theory for the motivation perspective because it helps to
understand individual’s behaviour for the job responsibility and how it influences in the
motivation so that easy to meet goal of the company over the time. the theory contains number of
motivation models such as Maslow’s Hierarchical needs that is proposed by Abrahams Maslow
to understand basic needs of human being which encourages individuals to give efforts in their
performance. Mothercare plc follows Maslow’s Hierarchical needs model that contains five level
of basic human needs such as physiological needs, safety needs, social needs, self-esteem needs
and self-actualization. Physiological need includes good working environment, air-conditioning
workplace, cleanliness and coffee facilities etc. basic human needs that expects by individuals
whereas they offer their service. Mothercare plc provides good sitting facilities to the staff so that
they can give their services effectively to the staff in the workplace.
Safety needs includes safe workplace, safety of self-belongings and others. these are
important needs of the human being which maintains their wellbeing in the workplace (Rispens,
Jehn and Steinel, 2020). Company provides health-insurance policy, compensation policy and

lockers facilities whereas they can keep their self-belonging safely. These needs influences
individuals to give additional working hors in the season or workload time except working hours.
Social needs comprise support, collaborative working and open communication etc. are crucial
needs of individuals which keeps them happy in the workplace. Mothercare plc provides open
communication facility to the staff which helps to reduce conflicts crisis and builds strong
relationship between management and staff. self-esteem needs means values, respect and
recognition etc. are important for individuals because it encourages them to give loyal
performance in the workplace. Mothercare plc involves it’s staff in decision-making process and
listen their viewpoints intently which makes them feel valuable in the company. It encourages
it’s staff as well for their efforts which they put during peak time. it inspires them to lead high
productivity in the organization. Self-actualization is the last stage that comes by fulfilling above
all needs. Mothercare plc meets individuals needs by offering desirable needs which leads self-
satisfaction in the staff for the job. Thus, company motivate it’s staff whereas they help to
achieve it’s objectives over the time (Soni and Soni, 2016).
Literature Review
According to Stevenson and Cole, (2018) organizational behaviour and motivation are
two approach that helps company to gain it’s objectives and raises goodwill of the company in
the business market. when organization has good organization culture then become easy for the
company to motivates staff in the workplace to accept change as per the company requirement. A
good organization culture always helps to build sustainable growth in it’s sector and builds good
brand reputation in front of competitors. On the other hand, motivation is the key factor for the
company that helps to gain short-term goal and long-term goal over the time. There are various
motivation strategies such as motivation techniques, Maslow’s Hierarchical needs, Herzberg’s
equity model and others. these are the major source of motivation that helps company to
motivate individuals or group of individuals by meeting their objectives.
However, some authors Tabassi and et.al., (2017) have highlighted an example of Tesco
plc in their published research papers such as Tesco plc is a British multinational company which
is famous as general merchandise retailer. It has good organizational culture that causes it highly
successful company in the UK’s market. Manger of the Tesco plc applies different type of
motivation strategies that are not only helped to motivate individuals but also lead sustainable

competitive advantage. Reward strategy is major motivation tool that uses by organization to
motivate individuals on different time. For example, incentives as reward helps company to
motivate group of people to put high efforts as result gain short-term goal while recognition as
reward helps to retain skilful staff in the workplace who helps organization to achieve long-term
goal.
CONCLUSION & RECOMMENDATION
The brief study provided understanding about organization culture of the Mothercare plc
which cased it succeeded successfully in the world. the CEO of company adopted different
management style and it’s principles that helped to conducted organization’s operation
effectively. This report has been summarized organizational structure of Mothercare plc. which
impacted on the staff positively. Senior leadership style followed by CEO of Mothercare plc that
led organizational effectiveness. Organization adopted Maslow’s Hierarchical needs to motivate
it’s staff in workplace in efficient manner. There is some suggestion for the Mothercare plc that
helps to revival in the retail sector such as:
 Mothercare plc must adapt online marketing strategy that helps to build online brand
presence in the E-commerce market. The reason behind is that nowadays people prefer to
do online shopping instead of traditional shopping. If organization adapts this strategy
then give accessibility to reach old and new customers. Thus, company can revive in the
UK market effectively.
 Brand differentiation strategy is also effective strategy that helps Mothercare plc to
differentiate its brand from it’s competitors in the business market. It has good
recognition worldwide but still company unable to differentiate itself from others in UK
market it causes other company’s easy to put pressure on the Mothercare plc. So, this
strategy helps company to differentiate itself as result easy to capture large market share
in the UK market (Tandel, 2019).
 360 Feedback strategy is another effective strategy that helps company to build strong
relationship with customer and it’s employees. In addition, it leads high engagement of
staff and customer and makes them feel valuable for the company. By the strategy, it can
gather feedbacks for the customer about products and it’s services as result easy to offer

desirable product and services to them. So, Mothercare plc must adapt this strategy in the
workplace.

REFERENCES
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