5MG001 - Leadership and Organizational Recommendations for Nike

This report provides an analysis of Nike's current leadership style, identifying it as transactional, and recommends a shift towards transformational leadership. It outlines the benefits of transformational leadership, including increased employee motivation and creativity, and suggests blending it with situational leadership for optimal effectiveness. The report also examines Nike's current matrix organizational structure, highlighting its drawbacks, and proposes a network organizational structure to foster a more positive work culture and promote innovation. Furthermore, the report discusses conflict management strategies using Belbin's team roles to improve team working and reduce conflicts within the organization. The student document is available on Desklib, a platform offering a wide range of study resources for students.

The Professional Manager and Leadership
5MG001 - BABM LEVEL 5
NAME : SHAMIKH SAMIR
UID NO. 224903
PODAR WORLD COLLEGE
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DECLARATION PAGE :
I Hereby Declare That:
• The Submission Is my Own Work
• All Materials Used Have Been Acknowledged and Appropriately Referenced
• I Have Not Allowed Another Student To Have Access to my Work
• The Work Has Not Been Submitted Previously
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TABLE OF CONTENTS
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TASK A :
SECTION 1 - introduction to organisation
ORGANIZATION REFRENCE : NIKE
Phil Knight created Nike in 1964, and it has since grown to be
one of the most well-known and significant brands in the
clothing and footwear sectors. Nike’s current CEO John
Donahoe has been looking over the company’s operations
since 2020 and has remained successful in retaining the
company to be one of the most innovative and successful
footwear, apparel brands across the globe.
(Nike, 2023)
Nonetheless, Nike’s overall leadership and organisational structure has created som
drawbacks which have become major obstacles for Nike to maximise their organisational
processes. Hence, this report clearly helps in explaining alternate leadership styles and
organisational structures to advice Nike. Further on, these theories will help Nike minimise
problems such as lack of employee empowerment, lack of trust and motivation fro
leadership and many more.
VISION Our vision is what drives us to do everything possible to expand
human potential. We do that by creating groundbreaking sport
innovations, by making our products more sustainably, by building
a creative and diverse global team and by making a positive impact
in communities where we live and work.
MISSION To use the power of sport to move the world forward towards
sustainability.
GOALS Our purpose is to unite the world through sport to create a healthy
planet, active communities, and an equal playing field for all
OBJECTIVES - Community
- Sustainability
- Diversity
- Social responsibility.
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TASK A :
SECTION 2 - leadership and organizational recommendations to nike
CURRENT LEADERSHIP STYLE :
By looking at John Donahoe’s leadership approach it is evident he implements the use of
a transactionalleadership style. Transactionalleadership, commonly referred to as
managerial leadership is a leadership style wherein leaders or top level management rely
on rewards and punishments to help their subordinates achieve optimal job performance.
(Judge, T. A. & Piccolo, Ronald. F, 2004)
Since John Donahoe uses a Transactional Leadership approach there is :
- plummet in creativity and innovation among employees
- Reduced communication & collaboration between employees and colleagues
- Increase in employee conflict due to high competitiveness
- More focus is given to short term goals
- Reduced employee team morale
- Less focus to work-life balance
- Extrinsic motivation < intrisnic motivation
- Lack of opportunities
- Lack of trust ; everything must be accepted by the leader
(Antonakis, J. & House, R. J , 2014)
Transactional leadership has seen a steady decline due to the increasing number o
millennials and gen-z becoming the major number of employees in a workplace. This has
caused leaders from across industries to focus more on the work-life balance as well as
the personal growth and satisfaction of their subordinates which are two major cons listed
under the transactional leadership style. Furthermore, transactional leadership is on
effective when leaders can keep can closely evaluate their subordinates’ progress. This
has become rather challenging since the implementation of work from home and hybrid
work mode due to covid-19.
(Nwanne, 2021)
RECOMMENDED LEADERSHIP STYLE :
In my opinion, Nike’s CEO, John Donahoe should shift his leadership approach to
become a transformational leader. Transformational leadership was first introduced
Bass & Avolio in 1994. Transformational leadership helps inspire employees to pion
and flourish to further grown and improve the company’s success. Through their
encouraging attributes and appealing personalities, leaders transform their followers such
that individuals identify with their character and their objective. Transformational
leadership lays an important priority on employee motivation as well as comprehending
their requirements in order for them to maintain an elevated level of efficiency.
(Bass, B. M. & Riggio, 2006)
There are 4 main stages to a transformational leadership style :
1 - Intellectual Stimulation : Wherein leaders give equal decision making power an
involve their subordinates to encourage creativity.This helps foster autonomy by
permitting involvement with decisions that are having a bearing on team members
Encouraging employees to be creative is a critical initial step approaching innovation.
2 - Individualised Consideration : Establishing connections with team members
empowers leaders adopting transformational leadership to grasp their needs and provide
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tailored assistance. Acknowledging team members' accomplishment may be beneficial in
encouraging and motivating them.
3 - Inspirational Motivation : The foundation of transformative leadership involves knowing
how to encourage individuals.Positive changes in an organisation may be fostered
through offering goals, rewards, and recognition to employees in a suitable fashion.
4 - Idealised Influence : Having extremely influential individuals in charge of implementing
change is vital. They serve as a model, shaping the mindsets as well as behaviours of
other executives and staff members.
(Lancefield & Rangen, 2021)
After the implementation of Transformational Leadership approach there is :
- increase motivation
- Maintains workroom honesty
- Helps understand the goal and objective of the company
- Encourage professional growth
- Improve employee loyalty leading to less turnover
- Boosts creativity by encouraging employees to become passionate
- Better communication between all levels of management
- Equal respect given to employees and all ideas introduced
- Good balance between long-term and short-term goals
- Better trust established
- Employees feel seen and valued
(Yang, C. et al. 2020)
Company examples for transformational leadership
BEVEL : TRISTAN WALKER
Tristan Walkers founded his hair and product line for the black community called Bevel in
2013. Tristan Walker has been known as an exceptional transformational leader.For
Tristan Walker its not always about the revenue profits rather he strives to work in a way
that evokes loyalty and respect from its employees which showcases him as a
transformational leader. (J. Ryan, 2022)
Tristan Walker is known to put his values and morels above all.
His 6 core values include :
• Courage
• Inspiration
• Respect
• Judgement
• Wellness
• Loyalty
(Haber, Tristan Walker: Your company's values are everything | inc.com 2019)
Through Tristan Walker’s CEO rating given by its employees it shows that he is given a
75/100 rating which puts him in the top 35% of CEO’s across the globe. Tristan Walker’s
company, Bevel has been given an overall of 4/5 rating by its employees.
(Walker & Company Brands Culture, comparably, 2022)
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ORGANISATIONAL STRUCTURE
CURRENT ORGANISATIONAL STRUCTURE :
By looking at the diagram on the right hand
side, (from NIKE ANNUAL REPORT 2023) it is
evident that the company uses a matrix
organisational structure. A matrix organisational
structure includes multiple leaders under which
teams of subordinates report too. This
organisational design help companies create
more innovative products and services.
Furthermore, this structure prevents them from
needing to switch every time a new project
begins. (Grubenmann, Stephanie, 2017).
Nevertheless, using a Matrix organisational structure can be rather strenuous. This
because there is a lack of clarity around roles and responsibilities. This is caused due to
the complex reporting structure. Moreover, with there being multiple managers or project
heads there is a high possibility to have conflicting goals or priorities which might affect
overall team dynamics. To add on, due to high amounts of confusion and conflicts, the re
is overall slower decision making which will intern slower the execution of a certa
project. (M. Davis & R. Lawrence, 2014)
Mckinsey’s organisational heart index strongly believes that organisations should appoint
accountable roles to all subordinates to ensure overall organisational health. He als
states that with subordinates having a clearer job role there is increased performa
engagement and satisfaction. (Guggenberger et al., 2023).
SUGGESTED ORGANISATIONAL STRUCTURE :
As per my point of view, Nike’s organisational structure should rather shift to a network
organisational structure. A network structure is a fairly newer organisational structu
While being less hierarchical and more decentralised, this organisational structure is also
the most flexible than any other. This structure is
simply a system which involves interacting with
internal and external parties to help deliver a
product or a service. (David Skyrme, 1998)
By implementing a network organisational
structure, Nike will achieve a higher span of control
over its employees. Nonetheless, employees will
feel more empowered as they will have to present
their ideas and opinions to external parties. This
may also aid in career growth opportunities for
individuals. Additionally, with the implementation of
a network organisational structure, Nike can help
foster a more positive and healthy work culture
promoting innovation and creativity for its
employees.
(Skyrme, 2008)
(Amati, V. et al. 2021)
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TASK A :
SECTION 3 - new leadership style
In my opinion, John Donahoe (CEO OF NIKE) would become
the optimal leader by blending transformational leadership
and situation leadership.
Situationalleadershipis an approach to leadership in
which a leader accommodates their leadership style to the
current work environment and/or team demands. This type
of leadership is not dependent on a leader's capabilities;
rather, it is based on their ability to react to the specific
requirements of a team or company with the goal to be an
improved and more prosperous leader.
(Tortorella, G. & Fogliatto, 2017)
Transformationalleadershipis a managementconcept
which encourages and stimulates individuals to invent and
develop novel techniques for a company to prosper and
improve its prospects for continued success.Using this technique, leaders entrust
decision-makingpower to reliable staff members while
encouraging innovative problem-solving suggestions.
With the incorporation of both these leadership styles John
Donahoe (CEO of NIKE) will be able to encourage as well as
stimulate his subordinates towards achieving their maximum
capability. ON top of that, the blend of transformational and
situation leadership will be effective for John Donahoe to
adapt his working style according to the current work
environment. Lastly, this will provide guidance in building a
rather pleasant environmental as the work approach will be
implemented as per the needs of the employees.
(Bass, B. M. & Riggio, 2006)
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TASK A :
SECTION 4 - conflict management and team working theory
With the help of using transformational leadership, John Donahoe can implement positive
factors and improve the overall team working approach. Additionally this will help John
Donahoe manage conflict better.
CONFLICT MANAGEMENT :
Conflicts in the workplace can be triggered by a variety of circumstances. Conflicts in a
corporation may be subdivided into three types.
TYPES OF CONFLICT :
Anon (1990)
HOW USING BELBN’S TEAM WORKING GOALS REDUCES CONFLICT :
Belbin's team roles are able to deliver common language alongside an understanding of
how individuals act depending on their strengths and limitations. There would be fewer
confusion and disagreements among team members provided Belbin's 9 team roles were
used.
Furthermore, using Belbin’s 9 team working goals under a transformational leadership
style will aid in fostering trust, open communications and empathy amidst team members
themselves as well as tam leaders. Moreover by using Belbin’s theory under a
transformational leader will help their being highly cooperative and assertive environmen
which leads towards a collaborative team working environment.
(Kilmann, 2020)
In addition, under a transformational leadership with a network organisational structure
( as recommended above ), Belbin’s 9 team roles will assist in employees having a
comprehensible grasp of their work responsibilities and who to rely on.
(Belbin, R. M. 2010)
Belbin’s theory highlights the significance of identifying and utilising different talents and
skill sets in a team situation.
To further evaluate I have used 5 team working roles :
Resource Investigator : he/she uses their curious
mentality for generating ideas throughout the team.
However, Resource investigators can be over-
optimistic and lose interest. Nevertheless with the
help of a transformational leadership approach he/
she can be further encouraged which will stimulate
interest to help employees reach a higher potential.
TASK RELATIONSHIP PROCESS
A conflict which directly
affects the contents and
objectives of work.
A conflict which is created
by interpersonal
relationships in the
organisation.
A conflict which arises
when there is a concern on
how work is carried out.
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Team Worker : He/she helps build the team cohesiveness by identifying the work that
needs to be done and completing it on the team's behalf. But he/she tend to be
indecisive due to which the decision making process would be majorly affected an
directly impacting the organisation as a whole. Nonetheless, by having a transformational
leader, a team worker would be able to clearly see the main objective and goal o
company which will aid in making the correct decisions effectively as per the tasks given
to the right person, at the right job with the right skills in the right department,
Plant : the plant is a highly creative and innovative member in the team. A plan
extremely vital as he/she helps in finding solutions for conventional situations with ease.
However, with the amount of workload on a Plant, it
becomes difficult for he/she too communicate with
team members effectively due to being preoccupied.
But, under a transformational leadership approach,
this obstacle can be tackled as transformational
leaders boost communication between all levels of
management and make sure all employees are heard
and seen equally as the role of the plant is to be
creative and imaginative, solution finding becomes
simpler.
Monitor Evaluator : is someone who always takes
the logical path and helps in making fair and
unbiased judgements. Despite he/she can
themselves lack the drive to motivate and inspire
others as well as can be overly critical. Regardless,
whilst under a transformational leader, he/she will
have an enhanced motivation and job satisfaction as
well as inspiration to put forward his/her points across
in a respectful manner.
Complete - Finisher : is someone who is most effectively employed at the end of tasks
to polish and examine the work for faults, submitting it to the strictest quality con
requirements. Even so, he/she can be rather ignorant and reluctant to delegate with his/
her team members. However, this obstacle can be easily cleared since under a
transformational leadership all employees are given equal respect and all inputs are heard
and discussed upon to help achieve the company’s overall goals.
(Diego Monsalves et al. 2023)
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TASK A :
SECTION 5 - motivational theory and performance management process
A recent salesforce report states that more than 86% of employees have claimed
ineffective teamwork being a major reason for task completion failure.
(Young, 2023)
John Donahoe should make use of an employee motivational approach to engage its
employees towards the completion of their tasks. In my opinion, I would strongly suggest
Nike to implement Ouchi’s Z motivational theory. Management professor Ouchi states
that “ Western organisations could learn from their Japanese counterparts.”
(Quchi, 1981)
(Barney, J. B, 2004)
The theory explains how Nike’s employees will be motivated to help reduce :
• Employee turnover - lesser number of employees leaving Nike and switching over to
competitors. NIKE provides one of the best compensation and job stability for its
employees which has kept their employee turnover rate at a constant 26/100
employees.
• Increased commitment - Nike’s employees will have a higher commitment to complete
tasks on a timely fashion. Nike has taken up an innovative method with the help of their
voluntary work initiative. This offers employees a minimum salary of $10 per hour for
their voluntary work to increase employee job commitment.
• Improved morale and job satisfaction : higher levels of confidence and happiness
leading to a feeling of fulfilment deriving from a job/task.Nike believes that employees
must take a step back from work and relax their minds. Which is why they have
launched an initiative called the REST & RECOVERY strategy. This promises employees
a paid time off, paid holidays and summer hours. With the tagline for this initiative being
Work hard & Play Harder, Nike’s employees are highly satisfied with their position within
the organisation.
• Increase in productivity : employees reaching a higher potential due to being motivated
With Nike incorporating their engagement and wellbeing survey with human resource
management, they have evolved tools to advance the capabilities of their employees
and suppliers. This includes EWB action planning guides which help mentor employees
to further grow their potential and overall increase productivity within the company.
(Nike , Benefits 2022)
(Smriti Chand, 2019)
Nonetheless, this can only be achieved by utilising theory Z. This states how Nike’s CEO
should treat its employees as generalists rather than specialists. It will increase job
rotation within the company and due to this all employees are undergoing training and
development to overall increase their knowledge and give a higher sense of job
satisfaction. This theory overall views employees are long-term assets.
Furthermore, Ouchi’s Theory Z will aid John Donahoe to give as much importance to the
workplace environment such as family, culture, traditions.Lastly, Theory Z makes it easier
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for Nike to build better work relationships with its subordinates as well as increases the
confidence in leaders to trust the decisions of employees in management decisions.
(Quchi, 1981)
PERFORMANCE MANAGEMENT :
It is a strategy aimed at enhancing output from the group, categories, along with
individuals by identifying and monitoring performance outside a predetermined framewor
of previously established goals, comparisons, and competencies requirements. Line
management is in control of it.
(Armstrong, M. & Baron, Angela, 2002)
PERFORMANCE AGREEMENT :
Executive accountability to specific organisational goals is set forth by performance
agreements, that assist executives coordinate daily operations and specify whether
operations within work units help achieve the objectives and goals of the agency.
(University Of California, 2021). Nike’s should make use of a code of conduct clearly
states that employees should nike’s policy and rules as well as use their potential to serve
in the company’s interests. Furthermore all employees have to consider implications by
looking back at their decisions and how would these decisions have an impact on
partners, stakeholders and consumers. Lastly, all employees must accept responsibility
for their decisions and mistakes to make sure that everyone works with integrity in the
workplace.
PERFORMANCE DEVELOPMENT PLAN :
The Performance and Development Plan is for enabling communication between a
supervisor and an employee on the subjects that follow: the relationship between
individual's desired results and the company's objectives and performance the units of
measurement. (Office Of Financial Development, 2023).Nike’s PDP plan must includ
employee training and development. This plan should have 4 main sections : lean
manufacturing, Human Resource Management (HRM), health & safety, and environmental
compliance.
PERFORMANCE :
A person's performance is described as how successfully they carry out their work tasks
and responsibilities. Nike has implemented the use of a shadowing AI. This helps
track the employee efficiency and performance. This ensures that employees are meeting
all expectations and are working towards the company’s success.
PERFORMANCE REVIEW :
Managers use performance reviews to examine professionals' growth, strengths,
shortcomings, and productivity. Managers and leaders at Nike should track employee
performance by using serval key areas. These include job knowledge, quality of work in a
given amount of time, team working skills, communication skills and problem -solving
skills
(Aguinis. H, 2019)
(Neher, A. & Maley. J, 2020)
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TASK A :
SECTION 6 - conclusion
To summarise, Nike has been one of the top footwear and apparel brands since decades
nevertheless, Nike’s current leadership style may cause certain problems in the ne
future therefore having a transformational leader using a network organisational structure
would be optimal for the brand as mentioned in section 2 above. This method of
leadership and organisationalstructure will make employees at Nike feel rather
empowered and inspired to align with the company’s vision to “ everything possible to
expand human potential.” Moreover, a transformational leader will be able to motiv
employees using theories such as Ouchi’s Z theory as recommended in Section 5 above.
If John Donahoe adapts a transformational leadership approach with the help of a
network organisational structure, Nike will for sure become one of the most desira
companies to work for and reduce employee turnover within the company.
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TASK B :
SECTION 1 - self reflective essay linked to leadership
This section of the assignment would be a self analysis on which leadership style would
work best for myself and further reasoning as why I believe that.
Ever since I reached my mid teens my appreciation and passion for arts and culture grow
deeply. I had enrolled myself in multiple art classes as well as had taken up one of the
toughest art courses for an international student, A-LEVEL art & design. Looking back at
it I have felt that my passion for art and the way it stimulates people, makes people feel in
awe and leaves an impression behind has inspired me to metamorphose myself in
someone who portrays these qualities as a human being. Hence, I have a strong feeling
that a transformational leadership style would be the most effective for me as a person to
grow as well as galvanise those who are around me.
During the course of this module, I have been highly drawn towards the transformational
leadership theory. This is because I believe that all future leaders must possess th
qualities of being a trustworthy, motivating, creative person to become successful.
addition, the four step process to adapt a transformational approach highlights all the key
methods to help a regular person become a triumphant leader.
To further analyse why transformational leadership is the
most suitable style for me I have used Kolb’s reflective
cycle to supplement my experience during my A-LEVEL art
& design board exam submission.
(Brown, Reflective model according to Kolb 2022)
This reflective theory is made up of more main stages :
Concrete Experience : Throughout the course of my A-
LEVEL, I realised my work was very laid back. My
submissions for my portfolio weren’t on time and neither
was the quality of work up to the mark to achieve the grade
I desired.This shows that my time management skills and
managerial skills were not upto the mark,
Reflective Observation : Looking back, I have realised how this was a major obstacle
and how my lethargic and prosaic attitude made me feel unmotivated to work towards my
goal. Furthermore, as the deadline started to glare in my face the artwork I produced was
done forcefully and its true that haste makes waste. This shows that I have identified my
mistakes to thing of better ways I could have handled the situation.
Abstract Conceptualisation : If I had the opportunity to go back and correct my
mistakes, I would have made sure to set a routine and follow my draft submission
timelines to receive accurate constructive criticism from my teachers. Moreover, I would
have help myself get inspired by taking some time apart my portfolio to explore newer ar
styles and find ways to implement my learnings within my portfolio to make it mo
diverse compulsive. Additionally, by contemplating I have realised that my portfolio didn’
reflect my overall potential and I would have done better. With my mistakes in mind I hav
released how different outlooks would have had different outcomes.
Active Experimentation : Overall, my experience has helped me develop my personalit
and my perspective. As an anecdote I would like to state my recent experience a
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leader for the my group throughout the friendship’s day event hosted by college. I had
taken my role as a leadership quite seriously and had been a major supporting character
to tackle issues such as expenses, break even point, task allotment and more. In addition
I believe I acted as a leader to help encourage and inspire my team members as well as
provided my assistance to everyone depicting my role as a transformational leader
Overall my managerial skills have improved so that can perform my role as a le
better in the future.
To summarise, I believe that this leadership approach will suit me the best as I always
tend to believe that every human being has a locked potential which might just n
some help or motivation to bring forward into the world. Moreover, looking back at many
instances such as the friendship day event or the Diwali bazaar held in college last year
have made me realise how my skills and judgements are coming from the creative and
inspired part of my brain.
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JOURNALS & REPORTS :
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