Organisational Theory and Adidas CEO Leadership Effectiveness Report

This report provides a comprehensive analysis of Adidas and its CEO, Kasper Rorsted, focusing on the application of organizational theory and its impact on business performance. It examines the effectiveness of the CEO's leadership style, identifying visible leadership as a key factor and exploring frameworks like Creative, Collaboration, and Confidence. The report delves into Adidas's matrix organizational structure, its culture, and the CEO's role in shaping them to achieve high performance. It also explores corporate governance policies and entrepreneurial strategies, emphasizing ethical practices and innovation. Furthermore, the report investigates the effects of power, influence, and conflict resolution within the organization, along with motivational theories like the ERG theory. Finally, it offers recommendations to enhance organizational performance.

Organisational
Theory and Practice

Table of Contents
INTRODUCTION...........................................................................................................................1
Effectiveness of managerial / leadership style of CEO using suitable theoretical models.......1
Assess current structure & culture of the organisation, along with this also discuss role and
impact of CEO in creating them to attain high performance......................................................2
Corporate Governance policies & Entrepreneurial Strategy used by chosen organisation to
enhance organisational effectiveness & performance. ...............................................................3
Effects of power, influence and conflict resolution in organisation ..........................................4
Different motivational theory in chosen organisation that influence employee's performance..6
Appropriate corporate examples and literature ..........................................................................7
Suggestions/ recommendations to increase the organisational performance .............................7
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10

INTRODUCTION
In organisation, management system, culture, structure and leadership have a crucial
impact on the business sustainability and growth. A business also impacted by the conflict
among employees and power system. Therefore in order to manage these conflicts and other
issues of the employees, leadership is used by the business organisation (Ahmed and et. al.,
2022). It has been identified that CEO (Kasper Rorsted) of Adidas will be most suitable leader to
proceed this report as he is most effective leader who enable the respective company to attain its
goals. Adidas is a German multinational corporation. Its headquarters is situated within the
Herzogenaurach Bavaria. Respective firm manufacture & design accessories, clothing and
shoes. It is biggest manufacturing company of sportswear within Europe. Therefore, this report
is going to cover leadership effectiveness of the chosen leader in respective company. Along
with this, respective report will discuss about current culture and structure. There will be an
analysis of corporate governance policies that followed by the CEO of Adidas. Apart from this,
respective report will demonstrate that how power, conflict and influence impact the
organisation. At last, there will be a discussion on different motivation al strategies used by
organisation to motivate employees along with few recommendation.
Effectiveness of managerial / leadership style of CEO using suitable theoretical models
Kasper Rørsted is CEO or leader of the Adidas. According to Kasper Rørsted visible
leadership is most suitable leadership for the respective organisation. Visible leadership has been
defined as commitment of the senior management to culture of quality which aligns the
performance management practices with organisational mission, continuously takes into the
account the customer's feedbacks. This leadership style also enable transparency related to
performance between staff and leadership.
Effectiveness of visible leadership used by the Kasper Rørsted
Visible leadership is more than just being seen. This leadership style has been considered
commitment of board to lead a culture which clearly demonstrate that organisation like Adidas's
mission and values when taking citizens and colleagues feedbacks into the account. This
leadership facilitate a complete transparency between the leadership and colleagues (Alshehri
and Elsaied, 2022).
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Kasper Rørsted is a visible leader that create a trust in departments. Respective leader of
CEO also foster a greater independence & more initiatives from team as well as increased sense
of the well being among workers.
It has been analysed that visible leadership align the performance management objectives
with the current business priorities. It share theoretical small performance management wins in
order to illustrate that how the performance management actually works. Kasper Rørsted has an
adequate knowledge about potential of the performance management as it save the company's
money & also improve their efficiency. Along with this, Visible leadership demonstrate that how
the performance management can be exploited by the organisation to bring more improvements
throughout the year as it help Adidas in attainting their goals (Biswas and et. al., 2022).
Being a visible leader, Kasper Rørstedget that communication is two way street & that
fulling engaging with, rather than just simply communicating to, their employees is the
difference between managing and leading them &, ultimately, difference between high
performing, motivated team & a disenfranchised, disparate & dysfunctional one.
Creative, Collaboration and Confidence
It is another leadership framework used by the Adidas as these three critical behaviour
defined the behaviour which are expected of workers at Adidas. Respective company uses this
leadership framework as it provide a universal and global language which is inclusive, reduce
need for the local interpretations, & also outline a concrete behaviour which serve as a measure
of the leadership's effectiveness. Creativity, collaboration & confidence serve as foundation for
new ways company hire, promote & evaluate the performance (Evans and Farrell, 2022).
Assess current structure & culture of the organisation, along with this also discuss role and
impact of CEO in creating them to attain high performance
Current organisational structure
Adidas is using the matrix design structure in its organisation. Respective company
groups & resources by function & products. Adidas has found this structure very flexible.
Employees in projects, manufacturing and engineering department could have two superior,
because they work as a team as per the projects. In this structure, workers will work with the
different individuals after completion of a project. In Adidas there are main six department such
as project department, manufacturing, engineering, human resources, marketing and finance. Its
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marketing department hold a significant part in advancing the organisation & mission. Role of its
finance department is mainly to plan, organise, audit, account and control the Adidas's finance.
It also produce the Adidas's financial statement. Whereas its manufacturing department make
what Adidas sells. This department has been divided into mainly three parts,that is assembly,
testing & production. In respective company, the engineering department consist of the system,
software, electronic & mechanical engineering. Main motive of this department is to help Adidas
in developing the new electronic technology. Thus its all department perform their task
efficiently (Felfe and Elprana, 2022).
Culture of Adidas
when it comes about the culture, then it has been identified that Adidas is a tea, of the
rebellious optimist, constantly challenging the status Quo. Respective company see the
possibilities where other merely see impossible. It serve needs of its athletes, communities and
customers. Adidas train individually and as a team in order to innovative, inspire and grow.
Apart from this, it has been identified that organisational culture of respective company support
the business capability and resilience. Its organisational culture is combination of the habits,
traditions, values & behavioural expectation among the employees (Fernandes and et. al., 2022).
Role of CEO organisation structure and culture to attain high performance
CEO of Adidas clearly or better understand his responsibilities in order to shape &
reinforce the culture of organisation that ensure that business thrives within dynamic
marketplace. Its CEO mainly concern with articulating & embedding those values that promote
flexibility and adaption. Apart from this, in organisational structure, CEO of respective company
is responsible to manage its overall operation. It may include delegating & directing the agendas,
driving probability, managing organisational structure and communicating with brand. Thus, all
these practice of CEO help the company in attaining a high level performance.
Corporate Governance policies & Entrepreneurial Strategy used by chosen organisation to
enhance organisational effectiveness & performance.
Corporate governance strategy in organisation outline an appropriateness of relationship
& interaction for how corporate governing board & management control all the interested
employees parties, & stakeholders connected with corporation. In corporate governance policies,
Adidas act as responsible global corporate tax citizen in the compliance with an applicable tax
regulations and laws in all the jurisdiction it operate in. respective company encourage the
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ethical & transparent business practices (Wong and et. al., 2022). Along with this, it also does
not use any kind of the legal legal entities with the motive of tax avoidance purpose. As a good
corporate start with the clear strategies, therefore Adidas implement the smart polices and other
effective risk management strategies to avoid any kind of loss and adverse impacts. Respective
company push its employees to be their best and also recognise the heavy workload that can have
adverse or negative long term effects, such as high turnover & low morale. Respective company
is fair to its customer, both for the public relation and ethical reasons.
In business, the entrepreneurial strategy has very significant role in making the company
a leading brand (Good, Hughes, and Wang, 2022). Adidas is growing very fast and gearing up
for a high jump in near future. New entrepreneurial strategy of Adidas is to encompasses various
new things from changing its business strategic focus for creating sustainable product &
technological innovation. Main aim of the Adidas is to become first true fast sports organisation
across the world wide. Its also aim to leverage company's scalable operating modes so that its
income can grow faster & derive a better operational and financial outcome. It has been
identified that financial result of respective company prove that such changes have started
bearing outcome better than their expectation & if Adidas sustain momentum, then it could
minimize a gap between itself and its other competitors.
Effects of power, influence and conflict resolution in organisation
Mostly organisations, resources can be symbol of influence and power. Higher power a
leader has, more opportunities strive for the scare resources those departments have. Therefore,
in such consequences, the conflict conceal in pressure to compete for such rare resources.
Effect of power
Power has been considered as an ability of make the things happen as per the to one’s
perspective by getting somebody else to do it for you. In organisation like Adidas power is
responsible to ensure the employee commitment & compliance. It help the respective company
in avoiding the resistance among workers ensuring that they coexist in the harmony, that leads to
an enhanced productivity. It is beneficial in Adidas as its managers assign the tasks to its
workforce according to their specialisation and expertise and make them do those tasks. It is
about their role that guide on what workers should do to attain the organizational success. Along
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with this, power also helps in providing a sense of he direction towards organizational objectives
or goals (Greco, and et. al., 2022).
Effect of influence
it is capacity of affecting developments, character, or behaviour of other person and
organisation. Within workplace influence effect everyone as it help the individuals in a groups
feel that they fit in (Oh, Hur and Kim, 2022). Within Adidas when employees feel engaged in
team or with management, then it motivate the employees and they get happier at work. By this
practices, leader of respective organisation develop a stronger relationship or bond with the
manager and co- workers. Adidas influence its employees by developing a motivating working
environment through creating career development possibilities, helping the staff attain a healthy
work life balance, good rewards and offering access to a broad range of organisational sports
activities.
Effect of conflict resolution in organisation
conflict impact the organisation negatively as it disrupt the work, decrease productivity,
and also lead to turnover & termination (Winkelhake, 2022). Therefore, in relation to Adidas,
Kasper Rørsted use the conflict management skill by providing guidance & direction towards the
conflict resolution. This practices has been done by identifying causes of conflict then provide a
solution to resolve that conflict. In respective organisation, its leader has facilitated such working
environment that avoid conflict as every employee is cleared with specific role and
responsibilities. Thus, conflict impact the company and its leader resolve them efficiently.
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Different motivational theory in chosen organisation that influence employee's performance
ERG theory of motivation
According to this theory, individuals can be motivated by the several levels of the need at
same time, & that the level which is very significant to them can change over time. It means that,
individual’s motivation and priorities may be fluid & can move between existence, relatedness &
growth of the need over time. They can move downwards and upwards. Adidas is most
successful sport organization throughout the world wide. Now, in all the successful
organizations, companies must have a way of strategy to motivate their workforce. Therefore it
has been analysed that respective company uses the ERG theory of motivation in order to
motivate its employees.
Implementing erg theory on Adidas
 Fulfil their existence needs- Adidas has ensured that its employee’s needs of existence
are satisfied properly as it provide healthy and safe working condition. Along with this,
Adidas also offer enough security to its employees (Ram, 2022).
 Relatedness- in order to fulfil this needs, it is responsibility of Adidas to make sure that
its employees are enjoying a healthy relationship with their co- workers and they are
happy. In organization, its employees feel connected and similarly respective company
has build such environment in which its workers can feel at home.
 Growth- in this, Adidas provide several opportunities to its employees. In order to
appreciate them, respective company gives them the interesting project to work on, &
also recognizing their work. Adidas provide enough opportunities in order to help them in
growing & fell more satisfied with their job.
Herzberg theory of motivation in Adidas
 Salary- It is not a motivator for the workers, but employees’ wants to be paid fairly. If
they feel that they are it paid fairly or well then it will de-motivate them that will impact
their performance. Therefore, Adidas has made sure to have clear policies related to the
rises, bonus and salaries.
 Working conditions- It is responsibility to provide good or healthy working condition as
to work in a hygiene environment make the employees more happy. It will attract more
customers to work in respective company (Samson and Bhanugopan, 2022).
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 Achievement- As employees want to do a good job. Therefore in order to help, Adidas
should placed them in such position where they can use their talent & are not set up for
failure. By this employees will get motivated and they work hard to attain their target or
goals.
Appropriate corporate examples and literature
According to the Ben Pollack, (2022), matrix organisational structure has been
considered as cross collaborative efforts that position right individuals in right teams. As Adidas
has adopted the matrix design organisational culture therefore it has been identified that this
structure facilitate a flexibility between the departments outcome in shared knowledge. Along
with this, it also boost the employees engagement & morale. In the above analysis, it has nee
identified that Adidas is using visible and accessible leadership style that enable its in
establishing a trust as visibility is a key to build trust and also ensure safety and accountability.
This leadership enable the employees to observer that they are in a good and safe place- where
there boss is very supportive there are no any secrets and individuals are not going behind their
backs (Macambira and et. al., 2022). At last, it has been analysed that in order to motivate
employees, Adidas is following the ERG theory and Herzberg theory of motivation as these
theory help the respective organisation in recognizing intrinsic satisfaction which can be
obtained form work itself (Loonam and O'Regan, 2022). ERG theory to motivation allow the
order to needs be different for different individuals. This theory recognize employees' multiple
simulators needs. Thus these theories has rage of the benefits such as retention of workers, lower
level of the absenteeism, improved relation between workers and management improved the
customer services.
Suggestions/ recommendations to increase the organisational performance
Since the Adidas is an expert in the sports performance sector, respective company can
expand its market by invest within manufacture nutrition supplements which is specially design
for various types of sport the athletes and its athletes will consume its product for a better
performance, it will promote company's product indirectly. As Adidas is using the visible and
accessible leadership style in its organisation, therefore it is recommended to it that its leaders
should encourage its employees to communicate openly to clearly understand the company's
goals as it will help the in attaining their organisational objectives.
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Along with this, Adidas should motive its employees by using most effective motivation
theory and pay more attention on its employee's needs to fulfil them as it will improve their
performance that bring a positive outcome.
As in the above discussion, it has been identified that power has a great impact ion the
organisation, therefore, it is suggested to Adidas that in order to reduce adverse impact of power
within workplace it should establish code of conduct. Along with this, Adidas should make
practice to improve its influences in workplace by building connection with employees.
Company must have a strong leadership style that can influence its workforce to work hard and
attain the firm's goals efficiently.
When its comes about the entrepreneurial strategies then it is recommended to Adidas
that it can invest more in its R&D department in order to discover some more environmental
friendly product or material so that it can manufacture its product such as now it is developing
the Adidas Future-craft Bio-fabric and biodegradable running shoe.
As in the above discussion it has been identified that conflict impact the organisation
adversely therefore, it is recommended to the Adidas that its should its leader should provide the
conflict resolution training and give employees more conflict in their ability so that they can
resolve both the personal and professional conflicts.
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CONCLUSION
From the above report, it has been find out that in organisation, leadership is that ability
to influence people which make them want to attain common objectives of a group or
organisation. This report has been discussed about a sports organisation that is Adidas. In this, it
has been demonstrated that how its CEO uses the effective leadership style in order to guide its
employees and instruct them, to attain the company's mission. Along with this, this report has
discussed about the organisation structure and culture in which operate. Therefore it has been
analysed that matrix design organisational culture is very effective for the respective company as
it improve the communication within entire organisational and allow the employees to apply
their skill in different kind of roles. Apart from this, it has been identified above the power,
conflict and influence impact the organisation vastly on which organisation need to make
effective strategies to reduce these impacts. Furthermore, there are various entrepreneurial
strategy and other corporate governance policies that must be followed by the organisation.
Hence, companies like Adidas formulate these strategies in order to attain their pre- determined
goals. Therefore, it ash been recommended to every business organisation that they should have
effective motivational theories through which it can encourage its employees to improve their
performance and attain their goals efficiently.
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References:
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global integrated delivery transformative initiatives in multinational organisations.
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Ram, A., 2022. Degrading Human Factors Through the Invisible ‘Freaky 13’Element. In
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Online
Advantages and Disadvantages of a Matrix Organizational Structure, 2022. [Online] available
through <https://www.charthop.com/resources/blog/org-chart/advantages-disadvantages-matrix-
org-structure/>
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