Organisational Culture Analysis: Next Plc's Success Factors

This report delves into the critical role of organizational culture in achieving business success, focusing on Next Plc as a case study. It explores how organizational culture, encompassing values, beliefs, and behaviors, influences a company's ability to achieve its goals efficiently. The report highlights the importance of communication, analyzing both top-down and bottom-up approaches within the company. Handy's model is applied to understand the various cultural types and their impact on employee motivation and productivity. The study emphasizes the significance of fostering a positive work environment through effective communication and employee engagement, leading to improved performance and brand image. The report also examines the influence of organizational culture on employee motivation and engagement, highlighting how a well-defined culture can drive desired outcomes and create a more productive and satisfying work environment. Finally, the report underlines the need for a robust organizational culture to enhance employee satisfaction and improve overall company performance.

Culture in an
Organisation

EXECUTIVE SUMMARY
Culture is a prominent factor for every organisation success and helps them in achieving
their task effectively and efficiently. This report is based upon the importance of impact of
organisation culture on accomplishment of goal. Moreover, it includes Handy's model which
discusses employees culture whereas the theory of motivation explains the importance of
motivation to influence employees to work effectively. Finally, top down approaches signifies
the effective communication strategy used within the organisation.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Culture of an organisation ......................................................................................................1
2. Culture improves organisational culture with a focus on communication ............................3
3. Role of culture on employees motivation ..............................................................................6
4. How company can use organisational culture to enhance their success ................................7
CONCLUSION ...............................................................................................................................7
REFERNCES ..................................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
Culture is a combination of attitudes, experiences, beliefs, values, norms , ethics, which
prevail in firm and all these elements controls the ways in which company work within and it
interaction with people and groups outside (Capelle and et. al., 2014). Moreover, it varies from
one firm to another and it directly impact the business functions and operation. Organisation
culture is an important determinant of company's success. It is culture which stars with
leadership, is reinforced with accumulated learning of its members and a powerful set of forces
that determine human behaviour. Along with this, it plays a vital role for encouraging innovation
and creativity within workplace. This report is based upon Next Plc which is one of the
successful and multinational retailer in UK and established in the year of 1864. Along with this,
this study covers the culture of an organisation by applying suitable theory, explain how
communication enhance the working environment of company with appropriate model. Finally,
usage of theory to analyse the importance of employee motivation to build effective working
culture is also mentioned here.
MAIN BODY
1. Culture of an organisation
It is an integral and most crucial section in workplace in order to attain organisational
goal in an effective and efficient way. As it's a set of various components like value, community,
behaviour, moral ethics, beliefs, character, personality, traditions, attitudes and many more
which influence the company to stand pout among competitor in terms of productivity and
profitability (Auernhammer and Hall, 2014). Apart from this, an effective organisational culture
benefits company in several ways such as create high energy among ream members, positive
mental attitude, flexibility in an individuals etc. that enable the firm to attain high level of
volume and efficiency. Thus, it's a foundation for every establishment to accomplish their
business task on an appropriate time without harming the employee's morale. IN context to
Next, a British multinational clothing, footwear, home products retailer headquartered in
England ,UK. It operates 700 stores across the globe with a workforce of 43,970 who is highly
dedicated and motivated towards the attainment of firm's goal. Moreover, one of the main
element which Next Plc focus i.e. building a good or healthy working condition for obtaining
profit maximisation with a optimum utilisation of resources. Apart from this, strong

organisational culture attracts high level of talent which changes the entire environment and
enrich employee satisfaction.
However, Next Plc has an impressive and productive approach for developing an
organisation culture where they encouraged their subordinates to come out of their comfort zone
and acquire all possible growth opportunities (Hiekkataipale and Lämsä, 2019). Furthermore, for
enhancing a new culture within the premises it provide varies kinds of tool in order to build a
healthy relationship between employer and employee. Some of them are Edge-worker training,
standard workshops, sustainable organisational development which enables them to develop
individuals potentiality for accomplishing business goals. Hence, in order to view the deep
understanding of Next's working culture, they applies Handy's model which helps them to
determine the importance of personnel and impact of organisational culture of firm's
productivity which is described below:
Power: In this type of culture, it is held by just few individuals whose impact spreads
end-to-end the organisation. Along with this, it consist of several rules and regulations and based
on that company take corrective course of action. Under this type, employees are generally being
judged by what they achieve rather than how they attain their task which sometime affect firm's
decision making and employee's morale. However, Next put their full effort to sustain their
organisation culture as they keep on eye on employees performance and based on that introduce
new type of appraisal interviews and understands their issues or interest in order to enrich their
satisfaction.
Role: It is completely depend upon the rules in which subordinates are delegated with
suitable roles and responsibilities for attaining business goal. Along with this, individuals are
role occupants but the role continues even if an employee leaves the firm (Mir and Pinnington,
2014). Moreover, Next offers security and opportunities to acquire specialist expertise to
performance up to required standard on appropriate pay scale and identify each individuals
capability and assign suitable responsibilities to them which builds effective working atmosphere
and less conflict of interest.
Task: This culture forms when team in an structure are settled to address peculiar
problems or progress projects as it is job or project oriented. Although, task is alpha but power
within the team often shift depending on mix of team members and status of problem. However,
Next conducts different workshops where they seek to convey together an suited resources and

right people at the correct level in order to tack together relevant means for closing of particular
projects. As they organise effective workshop on challenge topics like authentic resilience, rapid
learning, communication and meeting innovative technology etc. which helps them to be more
flexible and sensitive to market or environment for enhancing company's efficiency (Jiang, Tripp
and Probst, 2017).
Person : Under this type of culture, individuals is the focal point in which they
considered themselves as an unique and superior to organisation. However, Next examine each
employees skills and provide equal treatment to them in terms of training, developing their
interest by various motivating programs which allow them to accomplish their objective in an
effective manner.
From the above explained model, Next is enable to improve their overall performance
and enrich employee satisfaction which add value to customer and company's brand image.
2. Culture improves organisational culture with a focus on communication
Organisational communication is an integral role to play within an company's premises as
it includes managerial, interpersonal and other form of communication that carries policies,
strategies, instruction and data across the firm. Along with this, it provides path to company and
its firms and it facilitate answers to all question, clears up confusion, render guidance and
motivates all for an acquirement of organisational goal. It builds professional relations,
minimises conflicts and fester cooperation as well as help the company to enforce rules,
regulation and norms, and maintain discipline. Thus, communication is a primal key in
enhancing working environment or culture in an impressive way (Rao and et. al., 2019).
However, for reducing conflicts and ambiguities, Next puts its main focus on providing
transparent communication between leader and subordinates as they believes that it helps it
leaders to reach followers and motivate them for an attainment of vision, mission and goal of
firm. Thus, they implies Top- Down and Bottom-Up approach in order to strategically bring off
the delegacy of tasks and process of info to assure uttermost ratio. Moreover, top – down
approach relies on higher authority figures to find out larger goal which separate down to the
task of lower level employees. On the other hand, bottom – up style of communication features
decision making process that afford the entire staff a voice in organisation goal. The top –
down and bottom – up model which Next uses for their business operation are as follows:

Top Down approach
An organisation utilise this approach to evaluate, ascertain an apply business decision
made by upper executive as the processes is smooth and communicated to lower rank employees
who carry out teaks. Moreover, this approach is mainly depend upon executive level to decide
how to place, negociate and conduct daily processes. Some of factors which include in this
approach is given below:
Completed task based on higher authority: In this upper authorities assign appropriate or
suitable responsibilities according the employees potentiality and interest and provide them all
necessary information regarding job (Kreuzthaler, Schulz and Berghold, 2015). By this, Next can
determine and filtered down establishment lines without any mental confusion because concern
goals are primed up by higher level of administration and will not affected by external opinion.
Illustration 1: Approach of communication

Employees obtain task: Once management provides entire work profile then this step
arise i.e. subordinates receives their role in verbal or written form n order to achieve
organizational goal in an trenchant manner. IN case of Next, its subordinates are free to finish or
accomplish their own tasks in an unique way and encourage them to put their full effort towards
the attainment of higher level of productivity. Due to this, there is less chance of arising conflicts
or disputes among workers and they can maintain an effectual relationship between superior and
subordinate (Silay, Baek and Koh, 2015).
Task assigned by Upper management: While allocating roles and responsibilities to
employees, higher level of authorities identify each individuals capability or talent and motivate
them to contribute their best effort for the accomplishment of high level of profitability. Along
with this, they facilitate all possible training and development programmes and maintain an
effective communication themselves in order to enrich employees performance which add value
to them as well as firms brand reputation.
Bottom -Up Communication
It rotate around the involvement of all employees, their thought and perception for
implementing most advised decision. Along with this, company evoke entire team to take take
part in management and decision making process as it allows the firm to determine its most
targeted and most suitable goals. However, an organisation uses the bottom – up approach to
analyse prospect of company in comparison to microeconomic variables of economy. Some of
the elements of its approach are as follows:
Employee input: Every individuals has unique way of doing task for which organisation
is obliged to examine their skills and interest in order to reduce dissatisfaction or grievances
among employees. Hence, Next monitors the subordinates work and give them freedom to clear
out their queries related to job which decreases the communication gap between them and
conflict of interest (Gemeda and Tynjälä, 2015).
Collaboration: In this stage, firm involves its employees to business decision making and
problem solving process which create positive attitude among them towards the organisation
vision or objectives. Furthermore, Next encourages its team members or lower level of
management to take involvement in decision making process and suggest their views or option
regarding issues which improves the overall communication of company and help them in
obtaining profit maximisation without any hindrances.

Fulfilment of task: In this level, employees completes their task effectively and
efficiently which builds a good working condition within the premises. Therefore, Next's all
associate of business community feel valuable which surrogate a accessory and communicative
environment where employees can boom and grow up collectively.
The above discussed approach helps Next to track their subordinates work and make
effective and productive decision as well enable them to maintain strong relations in order to
enhance productivity and proficiency.
3. Role of culture on employees motivation
Organisational culture and status sets a framework within respective and group behaviour
takes place. The internal operative surroundings of every system has definite usually perceived
psychological characteristics or traits which are jointly called its climate, culture etc. These both
elements is potentially rich, but largely unrealised role in the development of an organisation as
well as to raise motivation among employees (Hayashi, 2016). Thus, working culture has great
influence on employee motivation as the nature of firm culture which exist in establishment is
going to adjudicate the degree to which wanted results from employees are receive. However, for
improving the overall performance of firm, Next applies Maslow hierarchy need theory of
motivation which explains that human needs never gets end it keep on going at hierarchy level.
After the fulfilment of first level of need they move to next level so, in this case an organisation
should have effective working culture in order to bring higher level of satisfaction. Hence, Next
uses Maslow hierarchy need theory for bringing productive business environment which is
described below:
Physiological needs: It is primary to human life as it includes food, clothing, shelter, air
and necessitates so life. These needs associate to endurance and care of living beings. . However,
Next provides fair reward to its employees so that they can fulfil their basic needs ad feel
satisfied in order to enhance their standard their living standard.
Safety needs: After rewarding the physiological needs, the next which arises is safety
and security. IN this, it finds expression in such desires as economic security and protective
cover from physical dangers. Hence, Next to meet out these needs they provide more money so
the individuals prompted to work more.
Social needs: Under this, it contains social interaction, companionship, belongingness etc.
However, Next builds a environment where all employees can socialise and build effective

relation between themselves which enhance their morale and help them to come out of their
loneliness.
Esteem needs: This is relate with self esteem and respect which indicate self confidence,
achievement, competence, knowledge and independence. Thus, Next examines the ability of
employees and provide effective training to germinate their ability and talents in an efficacious
manner (Nuttin, 2014).
Self actualisation needs: It is the final stage of needs, where individual is analysed by
their performance and conclude in which they are good at. So, Next recognise the achievement
or effort of employees and provide them motivation through memento, prizes, certificates etc.
which enhance its organisation culture and there will be less conflicts or disputes.
From the above explained theory of motivation, Next is able to understand the impact of
culture on employees' motivation in order to attain high productivity and profitability.
4. How company can use organisational culture to enhance their success
The above mentioned all theories and models, it has been picturize that a strong working
condition enrich the company's profitability and productivity (Neto, 2015). Along with this,
Next should be transparent to its employees in providing information in order to reduce
dissatisfaction and conflicts within the premises. Moreover, they should treat everyone equally
and respect each one's value, norms and provide them fair reward so that they can get highly
satisfaction and Next can gain competitive advantage among competitors in terms of
organisational culture.
CONCLUSION
The above stated report has been concluded that an effective organisational culture plays
a crucial role in accomplishment of business goals or objective in an impressive manner. Along
with this, on of the main aspect which help company to maintain a healthy relationship between
employer and employee is an transparent communication. Without a proper information or
guidance , it is difficult for employees to reach their task in an appropriate time. As it reduces
the conflicts or disputes within organisation and there will be high possibility of employee
satisfaction which add value to them as well as company's brand image. Moreover, Hndy's model
enable the working to create a fair working culture which impact the employees motivation and
improves the overall performance of company. Thus, Top Down approach helps an organisation

to identify individuals capability and provide proper direction in order to enhance their standard
and value. Apart from this, company invite subordinates to take participate in business decision
making process which improves their morale and they feel valued among organisation. Maslow
hierarchy need theory allow the firm to provide fair reward so that they can fulfil their basic
needs and enhance their morale. Therefore, an healthy organisational culture can achieve their
task on time without any hindrances or obstacle.

REFERNCES
Books and journals