BA Business: Organisational Theory and Practice - Nike CEO Analysis

This assignment is a case study analysis of Nike's organizational theory and practice, focusing on the leadership of its CEO. The study examines the CEO's management style, identifying it as primarily participatory with a democratic approach, allowing employee input while maintaining top-level direction. It explores the organizational structure, specifically Nike's geographical divisional structure, and its impact on employees, including the advantages and disadvantages of the structure and how it affects employee motivation and perception of growth. The analysis also covers the CEO's leadership style, suggesting persuasive leadership to enhance effectiveness, and delves into the effects of power, influence, and conflict within the company. Various forms of motivation used by the company are described. The assignment concludes with recommendations to improve Nike's performance.

ORGANISATIONAL
THEORY AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
A) Management style and functions used by CEO of Nike........................................................3
B) Steps taken by CEO to achieve high performance through organization structure and
culture and its impact on employees...........................................................................................4
C) Leadership Style of CEO to enhance effectiveness...............................................................5
D- Effect of power, influence & conflict at Nike........................................................................6
E- Different forms of motivation used at Nike...........................................................................7
F- Relevant examples..................................................................................................................9
G- Applicable recommendations in regard to increase performance of Nike...........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Organizational theory and practice consists of several approaches and methods conduct in
context of companies. It could be considered as study of nature and behaviour of companies as
well as their atmosphere. It concerned with connection of personal aims with firms’ relations
between group and individual. The current assignment will be based on Nike company, which
falls under category of leading footwear manufacturing organizations in the UK. This study will
explain management style and functions & principles of administration utilized by chief
executive officer of chosen firm that has been operated in retail industry. Furthermore, it will
define the steps taken by CEO in context of company structure to achieve excellent performance
and change in its organizational culture brought about by CEO of that organization and its effect
on workers. This report will justify leadership style of chief executive officer in order to enhance
business effectiveness and will also explain effects of power, conflict and influence at retail
enterprise.
Moreover, this study will describe the different forms of motivation utilize at organization
and will also define suitable corporate examples to justify data relate to overall study. In
additional, this assignment will simplify appropriate suggestions based on all over discussion in
context of selected company.
MAIN BODY
A) Management style and functions used by CEO of Nike
Nike is the biggest brand. CEO of Nike uses participatory leadership style. Participatory
leadership style describes a management style that allow employees of the company to contribute
their views and ideas for formation of strategies. In this style manager need to delegate part of
his power so that workers can take decisions (Posadzińska, Słupska and Karaszewski, 2020). So
that group of employees can decide what solution would be better. CEO of Nike allow its
employees to take initiative for better development of organization as well as personnel.
It has also observed that Nike's CEO uses different leadership depending upon
circumstances. The CEO has stated many times that sticking on one leadership can create
unhealthy atmosphere in company. But it mainly focuses on democratic style of management. He
makes sure that ideas should come from each level of organization but direction and
management of this innovation must be from the top-level of hierarchy. Ideas can come from

anywhere so CEO support each employee to share their contribution. In respect to participatory
style of management is the best way of managing a large organization. In retails sector company
give emphasis on taking thoughts of everyone but at the end leader only make the final decision.
Being an international company Nike follows management principles that fulfil their
objectives. Customer is most important person in fashion industry whose taste and preference
can frequently change. Another principle is providing detail of each product is very essential.
The way of promoting your product on best location with affordable price is perfect strategy for
success of firm. Reaching each location of interested customer is high priority principle of Nike.
Clarification of objectives and goals to improve employee efficiency and following proper
control on each department's roles and responsibilities are main management principle of retail
industry.
There are many functions of management. Each industry uses those function which
makes their way of Woking efficient. Planning, organizing, staffing, directing and controlling are
some common functions. Nike uses these functions to make sure that the process it is using is
effective and give it positive outcome (Anastasiou, and Garametsi, 2021). Assembling of goods
from different warehouses, making coordinating among all departments so that final commodity
can reach to potential customers, using the best leadership style to make the best strategical
planning, financing of inventory and enlargement of customers credit period are used by the
company. To maintain quality of products to be top n industry is main function of Nike.
B) Steps taken by CEO to achieve high performance through organization structure and culture
and its impact on employees
Nike adopts that Organization structure which can enable it to accept changing
circumstances. Organizational structure defines the plan in which the company is going to
achieve its goals and objectives. It also defines hierarchy for flow of information. These
activities include role, responsibilities and rules of organization (Nguyen and et.al., 2017).
Ability and limits of company can be characterized through structure of organization. This
interconnects employees, groups and various departments. Nike use geographical divisional
organisational structure. The structure follows global leadership which involves the managers of
corporate, who take all decision regarding management of Nike. It focuses on uniqueness of
regional market. It divides its structure in three parts global division to define leadership style for
each area., semi autonomous structure for making divisions of geographical areas.

The company's operations are separated into parts based on various regional areas. Each
division manger manages operation based on important factors of that areas. Nike is wide
company so impact of its cultural and structural environment can not be same on all employees.
CEO of Nike helps the worker to feel belongingness vibe in firm. As it allows it to share their
thinking for process. The remuneration and incentive distribution method of structure of Nike is
motivating for employees.
Its structure of organization is stable and growth oriented. Its leadership style is very
advantageous for the control of the company. Employees also see good future with company and
perceive growth personnel development. It semi autonomous structure is so flexible to adopt
different regional cultural environment. There are some disadvantages also that conquer the
flexibility of managers and employees. They sometime feel pressurized to introduced creative
ideas which makes some employees stressed and unproductive.
Many multinational company still adopt the culture of one way of flow of information
and as the Nike have structure divided according to distribution channels. It also adopts different
structure for success of the company. It allows it managers to take decisions regarding
operations. Decisions are sometimes taken in favour of managers, which decrease productivity of
employees are their way of working is disturbed by frequent changing policies by managers. It
also have conserve brand that Nike need to manage (Maamari and Majdalani, 2017). Which also
confuses employees as managers merger their both brand's operations. Together. So the
unnecessary grievances and conflicts disturbs firm as well as employees.
C) Leadership Style of CEO to enhance effectiveness
CEO of Nike can use persuasive leadership style to increase effectiveness of
organisation. Persuasive style refers to the situation where mangers explain the reason behind
decisions and believe in giving training to employees rather than just asking them to do task. It
will increase efficiency of employees as they will be able to get training for those task in which
they are unskilled (Sepuru, Musonda and Okoro, 2021). It will not only improve effectively of
firm but employees personal development also increases. Employees feel firm is investing for
their personnel development that motivates them to be more productive for organisation. It will
also make them to trust that their job is secure, and they are valued part of personnel. In this
respect firm will get loyal workers that can help it to get enhanced labour force.

CEO will also be in position to explain his thought process to its subordinates (Walzel,
2021). It will make the process of communication two-way in which both the sides are
responsible for success and failure of firm. Persuasive leadership style will make organization
culture politer and trustworthy. The above term could refer as competence to convince and
influence others to modify their decisions, thinking, actions, activities and opinions (Rocklage,
Rucker and Nordgren, 2018). It could help to increase the performance and productivity of
employees which in return enhance organizational as well as operational effectiveness in
systematic and effective manner. Chief executive officer of chosen company by using this
leadership form could effectively maintain final judgment procedure which can benefits both
employees and its venture.
With this style, Craig Tindall while doing his job and playing role in Nike company could
motivate and inspire all workers to perform even better at workplace which turn into increasing
business effectiveness, which is actually very important and beneficial as well in term of
enhancing productivity, performance and profitability. Selected leadership style benefits just like
autocratic form, it is characterized by effective centralized control that makes judgment for
venture (Nwagbara and Belal, 2019). Unlike autocratic leaders, CEO with persuasive style of
leadership can take time to invite questions more than imposing do that or else. The best thing
about chosen style is that it enhances productivity and boost decision making act.
D- Effect of power, influence & conflict at Nike
In the world of business, there are different forms of factors such as external and internal
available that affect performance of company either in negative or positive manner. For instance,
power, conflict and influence are three different internal forces that put impact on firm and its
entire business. There are varied forms of models and strategic frameworks accessible that use to
define effect of power (Manoli, 2018). Here, French and Raven model is utilizing that have five
bases or types of power can use in a firm, which has been mentioned below-
Reward power-
When leader and manager or CEO at Nike firm use this type of power in positive manner
can affect successfully and provide benefits in term of increasing performance of staffs’ member
(Berberoglu, 2018).
Coercion power-

With this form of power, chief executive officer in chosen company could affect workers
and then business performance in negative manner by punishing employees on his or her
mistakes.
Legitimate power-
This kind of power comes from trust that leader has formal right to make demands and to
expect workers to be obedient and protest.
Expert power-
CEO at Nike company by sharing his knowledge and experience with staff members
could enhance their performance level and boost morale.
Referent power-
By respecting others at workplace and valuing his or her perspectives chief executive
officer within organization influence each worker in positive manner.
Effects of conflict at Nike company-
Conflict between leaders and workers or employees with management always effects in
negative manner as it decreases the productivity of staff, morale and consider as the most leading
source which contribute in increasing demotivation among employees (Maltarich and et.al.,
2018). It can be said that conflict at workplace causes could different from misunderstood
communication, interaction and personality clashes to organizational mismanagement that
directly impact success and growth factors of Nike. It can be analysed that all negative impact of
workplace issues or conflict could include decrease productivity, absenteeism, termination and
most common high employee turnover.
Effects of influence at chosen organization-
Leaders and managers by respective staff suggestions, their point of views and
encouraging them could influence workers in positive manner. As outcome it leads to increase
productivity, performance and motivational level as well as boost morale which is really very
essential to do. Gaining influence on groups can support people work together more
productively, which in return bring several benefits.
E- Different forms of motivation used at Nike
Motivation is the key source of excellent performance and also consider as procedure that
guides, initiates and maintain aims oriented behaviours. This term is about what causes
individual to act, whether it is achieving goal to gain profits or performing better to gain

competitive advantages (Iqbal and et.al., 2019). It includes emotional, cognitive, biological and
social forces that activate nature of a person. Motivation play vital role in success and great
performance of staff’s member. Leader can use different methods and techniques for motivating
workers. There are varied forms of models are accessible that could use to motivate employees.
Here, Maslow’s hierarchy of needs as motivational concept is use in context of encouraging
workers within Nike company. This model is consisting of five different stages that are
mentioned below-
Physiological needs-
This stage explain human motivation based on pursuit of varied degrees of needs. When
CEO of Nike organization consider all level of his staffs needs like place where people would
live while doing job in firm especially those who came from other nations or regions. It works
magically in form of motivating workers.
Figure 1: Human Motivational model
(Source: Maslow’s Hierarchy of Needs, 2020)
Safety needs-
Just like above technique, Chief executive officer and leaders at Nike firm could also
motivate staff by satisfying the needs of staff members relate to safety and protection at
workplace. It includes PF, ESI and other facilities that should provide to its employees in order
to boost his or her motivational and performance level.
Love and belonging-

The most important, valuable and beneficial as well as effective approaches of staff
motivation is the current term. In simple words, everyone desires to get respect from seniors
especially junior teams member. When leader show some respect towards his or her workers
performance and hard work it could lead to excellent motivation.
Esteem-
These forms of needs are related to workers need to obtain status, recognition and feel
respected which is one of the best activity that leader can to do motivate each employee and
enhance their performance for longer period of time. Manager by recognizing efforts and
appraising staffs accordingly can definitely boost encouragement.
Self-actualization-
This need relates to realization among workers of full potential that drive them towards
working even better and making successful commitment which in return change the way people
at workplace act and work in positive manner.
F- Relevant examples
According to Ratten, (2020) there are many leaders, managers and entrepreneurs accessible
in the world of business, who uses specific leadership style according to nature, characteristics
and behaviour. For example, Jeff Bezos as CEO within Amazon company has used persuasive
management style because he has persuasion abilities, skills and competence which he especially
uses to encourage and motivate his workers to create productive environment at workplace and
develop creative ideas as well as solutions that are beneficial for his venture related problems.
Jeff Bezos exhibits his persuasive leadership style by persuading all the staff members to raise
his or her awareness about work results. By using this style, he become a great leader and
successfully manage the performance of his workers and venture as well.
Asrar-ul-Haq and Anwar, (2018) discuss that many managers in business world have uses
persuasive leadership style which is quite beneficial for them. Genghis Khan is one of leaders
who use autocratic style earlier and now has used persuasive leadership form in order to obtain
his will accepted by employees. It effective in positive manner and support in development of
productive culture at workplace, which is actually very essential to develop. He can use it while
managing performance of workers in upwards motion. With this style he gets a lot of benefits
such as the biggest advantages of persuasive leadership style is a better reaction that person can

obtain with other styles such as autocracy. Another benefit of this style is that it offers
creativeness among people.
G- Applicable recommendations in regard to increase performance of Nike
In today’s competitive world, each organization attempt to conduct effective practices to
improve their performance and increase productivity even better than business rivals. There are
ranges of approaches, strategies and techniques are available that many companies have used to
boost the performance of their ventures.
 Nike organization should make utilize of human resource department in order to increase
their organizational performance. By taking support of this functional unit firm would
successful sustain within retail sector for longer period of time. HRM of company play
vital role in context of increasing effectiveness of business which in return increase
productivity, profits margin etc. Human resource management will cater assistance with
organizational and its operational effectiveness by supporting with design of effective
and new business tactics. For example, HR team will support in above context by
recruiting and hiring new candidates who are much productive in nature and able to work
with flexible nature. As it provides positive outcomes in form of enhancing or improving
organizational performance, which in return increase consumers satisfactory level and
profitability of Nike company as well.
 Nike firm and its leader would take better action to increase organizational performance
which is actually quite essential to do. Furthermore, they will develop plan relate to skills
and knowledge development of workers which is possible through training. It is among
one of the most common and cost effective approaches that leaders and human resource
management team would use to make each worker act and performance better which in
return increase the organizational performance as well as productivity even better.
 Moreover, leaders at workplace must conduct survey through which they can identify key
strengths and weaknesses of existing and new staff members easily, then make a
professional development plan for all of them which also help to enhance staff
performance and then business as well. They should use advance technologies that plays
essential role in effectiveness and efficiency of Nike.

CONCLUSION
By summing up above analysis and overall discussion, it has been concluded that
participatory management style provides several benefits to Nike organization, with this style the
chief executive officer has successfully manage performance of workers and entire business,
which is actually beneficial and necessary as well. While working in company CEO has applied
all the principles and key functions of management in order to boost the productivity and
performance of firm even better than its competitors. From above analysis it has been identified
that chief executive officer by taking major steps towards making its organizational structure
much better has successfully achieving high performance as main objective of Nike firm and put
positive impact on staff members’ performance in term of increasing their commitment level. By
using persuasive leadership style, CEO of company effectively enhance their organization
performance and operational effectiveness which is important to increase as it allow them to give
touch competition to rivals. Furthermore, by using power in positive manner leaders and
management has efficiently influencing people at workplace. All above motivational approaches
are useful in form of boosting motivational level and sales of brand.

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Online
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https://corporatefinanceinstitute.com/resources/knowledge/other/maslows-hierarchy-of-needs/>