Organizational Theory and Practice: Analysis of ASOS Plc's Management

This report provides a detailed analysis of ASOS Plc, focusing on its managerial styles, organizational structure, leadership, and motivational strategies. It begins by examining the CEO's managerial roles through Henry Mintzberg's framework, followed by an analysis of organizational structure changes and the influence of organizational culture, including the application of Hofstede's Six Dimensions. The report then explores the leadership style, identifying it as democratic, and discusses the effects of conflict, power, and influence using the French and Raven Bases of Power Model. Various motivation strategies used at ASOS Plc, including Herzberg's motivation-hygiene theory, are explained. The report concludes with recommendations for improvement, offering insights into ASOS Plc's management practices.

Organizational Theory and
Practice
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
A) Analyse managerial style of the CEO using Henry Mintzberg’s managerial roles................3
B) Steps taken by CEO to bring change in organization structure and analyze the
organizational culture..................................................................................................................4
C) Leadership Style of the firm...................................................................................................5
D) Examine the effects of conflict, power and influence of the organization............................6
E) Explanation of various types of motivation strategies used at ASOS Plc..............................7
F) Literature and corporate examples to justify the point............................................................9
Recommendations........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Organization management is the term which describes the processes and the procedures
which helps in assessing the systems of company effectively and efficiently (Tuffour, Gali and
Tuffour, 2019). ASOS Plc is the British online fashion and cosmetic retailer which provides the
customers the products and services significantly.
The report will analyse managerial styles of ASOS Plc. Along with this, organizational
structure and organization culture will help in assessing the company’s form. Leadership style of
the organization will be described. Effects of power influence and conflict of the organization
will be depicted. Types of motivational strategies will be described. Various corporate examples
will be explained.
MAIN BODY
A) Analyse managerial style of the CEO using Henry Mintzberg’s managerial roles
There are various managerial roles which are being described by the Henry Mintzberg and
they are described as follows –
Leader – In the leading role, motivation is being given by the manager who helps in fostering
the work with keeping the positive environment and through this, the manager supports staff and
the employees of the ASOS Plc to offer the staff and the employees the education and the
training programs (Sutan and Vranceanu, 2019). When manager plays the role of a leader
everything is ensured under the supervision and the company’s processes and practices are being
done which makes the work more easy and effective enough to progress further.
Monitor – By being a monitor the manager gathers all the information which is related to the
internal and external business environment of the ASOS Plc (Quaratino and Mazzei, 2018). The
manager in the role of monitor is responsible for assessing and analyzing the information which
is being gathered and through that various problems or issues are also being solved by
identifying the opportunities and the changes which are to be taken place for the longer run.
Spokesman – As a spokesman, the manager represents ASOS Plc and then communicates with
the outside business environment and frames the corporate policies and frames the information
regarding the same with the external parties which is considered important for the company
while taking decisions on large scale.
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Entrepreneur – Manager of ASOS Plc by being an entrepreneur is responsible for the decisions
which are taken by the manager to consider that all the functions are being effectively taken by
the manager being and entrepreneur (Jiang Ananthram and Li, 2018). And through this, the
manger can take different leadership styles and follow theses styles in the course of effective
framework of the company.
Resource Allocator – In the resource allocator role, the manager authorizes and controls the use
of ASOS Plc resources and in this, the manger assigns employees, finances, machines, power
and other resources and activities which are being taken as an important factor for the whole
company and executed within effectively (Tahar and Abdillah, 2021).
Therefore, these are the roles in which the manager of ASOS Plc will be able to play the
major role and through this the core strengths and skills will be analyzed. The manager by
initiating such roles will be able to make the effective way possible through which various other
changes and roles will be identified and in this core strength and the abilities of the manger will
be found.
B) Steps taken by CEO to bring change in organization structure and analyze the organizational
culture
The organization structure of ASOS Plc in order to achieve high performance is analyzed
through the work and the process which organization has framed and through this the company is
being able to make most use of how effective and efficient the procedures are being carried out
for assessing high quality performance and in this the company also measures the key strengths
and the abilities of the growth and developmental perspectives which are being taken by the
company and is impacting on organization on a positive basis (Gipson and et. al., 2017).
ASOS Plc has multi – sided business model in which they have two interdependent
customers segments which operates customers and company on large scale and through this basis
of how functions are to be processed of company is being analyzed (Sfantou and et. al., 2017).
The basic for, in which company is analyzing the opportunities and the strengths is through the
external business environment which helps in assessing the very effective and basic form of
business through which organization structure is being analyzed and this enables that what are
various forms in which processes and the procedures of organization as whole is being carried
out on large scale.
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Organization culture influences the employees on large scale and this is analyzed through
Hofstede’s Six Dimensions of Culture which is described as below –
 Power Distance Index (PDI) – Power distance index depicts degree of inequality which
exists in ASOS Plc and this is from high to low scale of basis. And this stage is accepted
between people without and with power (Erdman, 2018).
 Individualism versus Collectivism (IDV) - This stage refers to strength of ties that
community holds with people and indicates weak and strong interpersonal connection
within ASOS Plc.
 Masculinity versus Femininity (MAS) - This is stage which consists of roles of women
and men and their distribution of roles within society at large scale and in this within
company that is ASOS Plc (Fitria, Mukhtar and Akbar, 2017).
 Uncertainty Avoidance Index (UAI) – This is main step which emphasizes on degree to
which individuals in organization can cope up with anxiety in ASOS Plc organization.
 Long versus Short Term Orientation – This term focuses on time horizon individuals in
society depict and they work within organization that is in ASOS Plc (Maamari and
Majdalani, 2017).
 Indulgence versus Restraint (IVR) – This stage focuses on free drive and emotions
which are collected as gratification of emotions within organization and how individuals
and employees behave in company on large scale.
C) Leadership Style of the firm
Leadership is the term which is described as the ability of the individual who guides and
influences the members of the organization so that the tasks and the activities of the company are
carried out effectively and efficiently (Purwanto and et. al., 2019). There are various qualities
which the leaders exhibit in the organization so the processes and the functions of ASOS Plc are
carried out in a significant manner. The leadership style which ASOS Plc follows is Democratic
Leadership Style which is denoted as the participative leadership style in which the members
and the individuals of the company are participate and perform their tasks and activities
collectively on large scale (Anicich and Hirsh, 2017). Democratic leadership style is also known
as shared leadership style and in this the decisions are taken by collaborating with the tasks and
activities and through this the employees and the individuals of the company are able to take the
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decisions which help them to foster the work and the processes which are being taken and are to
be accomplished on large scale.
Democratic leadership style which the ASOS Plc follows helps the company in regulating
its rules and regulations by collaborating with the employees of the company so the work is
being effectively and significantly be achieved by the organization and through this the company
is able to take the changes which are required for the growth and development of the company
(Goleman, 2021). Democratic leadership has encouraged collaboration in the organization within
the individuals and has made them motivated to perform their tasks and activities effectively by
being responsible individuals of the company (Ayub and et. al., 2017). There is higher group
engagement within ASOS Plc as the employees and the teams are motivated and are focus
entirely on achieving the goals and objectives which are being set for the successful working of
the organizational processes and procedures on the large scale. Productivity is also increased of
the employees and the individuals who are totally working upon the tasks and the activities to
make the work reach a successful stage through the accomplishment of the objectives which is
being set (Caputo and et. al., 2018). Democratic leadership style in the ASOS Plc leads to
creative results which help organization in making effective changes and initiates the process in a
different way which helps them to achieve what are set standards of their work. Thus, the
democratic leadership style being followed by ASOS Plc has helped in processing its functions
and systems on different basis (Buchanan and Badham, 2020).
D) Examine the effects of conflict, power and influence of the organization
The effects of power, influence and conflict of ASOS Plc is described as below with the
basis of French and Raven Bases of Power Model –
The French and Raven Bases of Power Model describes five sources which are as follows – Legitimate - This is the form of power in which the individual has the belief that they
have the right to make the demands and they expect the other individuals to obey of what
they say or denote as their saying (ÖZASLAN, 2017). Basically, legitimate is the form in
which the individual forms the force towards the other individual which is sometimes
followed by the individuals of ASOS Plc Company.
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 Reward – This is the ability of one individual to compensate with the other individual for
the compliance (Kovach, 2020). And in this the individuals of the ASOS Plc form the
basis that all the individuals are being rewarded for their work and their performance.
 Expert – This is the type of power in which the individual’s skills and knowledge are the
basis of the high power and through that they are being analyzed on large scale (Dirik,
2020).
 Referent – This is the power in which it is analyzed that how much the individual in the
ASOS Plc is attractive enough and through this the right to respect and the basis for the
respect to right with the other individuals (Erchul, 2020).
 Coercive – This is the belief in which the individual believes that they can punish others
for the non – compliance of the individual act in ASOS Plc company (Buchanan and
Badham, 2020).
The influence and conflict of ASOS Plc defines the organizations’ working process of how the
company and its external processes influence and through that the conflicts may be created
which helps in making the effective forms through which the individual’s behaviour is analysed
and this makes the most sense in which the company reflects most with the workings and the
process of company is making the effective and efficient process of how the things are processed
(Dundon and et.al., 2020). Thus, the main thing which is one of the most effective way in which
the influence and the conflict factors are also considered as important and in this the effects of
the all there which are the power, influence and conflict is considered and this makes the process
and the procedure of the company create ways in effective and efficient manner. Thus, this is the
major emphasis on the company (Reiley and et.al., 2019).
E) Explanation of various types of motivation strategies used at ASOS Plc
ASOS have focused upon adopting Herzberg’s motivation hygiene theory. As per this
theory there are certain set of factors that causes job satisfaction. These factors are known as
motivators and there are certain set of factors that causes demonization, such factors are known
as hygiene factors (Fernandes, 2018). ASOS Plc focus upon adopting this motivational theory
and have adopted various kinds of motivational strategies that has helped them in motivating
their employees so that they can work upon enhancing their overall performance which is
beneficial for organization in achievement of main goals and objectives. They have further
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incorporated Maslow’s Hierarchy of Needs within their monetary benefits strategies and within
other strategies i.e. they focus upon fulfilling their employees’ needs and requirements in
hierarchical manner (SOOMRO and et.al., 2021). Some of the main types of motivational
strategies adopted by ASOS Plc for motivating their employees have been explained below in
detailed manner:
One of the main motivational strategies adopted by ASOS Plc is provision of competitive
monetary remuneration and benefit package to their employees according to the work done by
employees and target goals achieved by them. These monetary benefits are paid additional to the
salary paid to employees as it helps them in fulfilling basic needs according to Maslow’s need of
hierarchy.
For provision of monetary benefits to employees ASOS Plc have developed a reward
system in which each and every employee is given a set of targets that are required to be
achieved by them that can help organization in gaining competitive advantage and enhancing
their overall organizational performance in an adequate manner (Athumani–Yunus and et.al.,
2019). For this ASOS Plc provide bonus to employees that further includes 50 percent discount
to employees on in-store purchases. it further includes appraisal and increment in salary on the
basis of overall yearly performance of employees. It is one of them main motivational strategy
adopted by ASOS Plc.
Another important motivational strategy adopted by ASOS Plc is incentives motivational
strategy. Using this strategy employees are rewarded within incentives in monetary form for each
of their achievement and for their hard work. This strategy helps them in motivating employees
who are unorganized because these incentives provision help them in getting motivated and
focus upon their work. many times this incentives strategy adopted by ASOS Plc works as a
ways in increasing positive competition within employees for achievement and for being
rewarded within more incentives for their achievement. It helps in maintaining a healthy and
positive competitive working environment within organization and makes it much easier for
organization to achieve their main goals and target objectives in an adequate manner
(Karabenick and et.al., 2021).
Another strategy adopted by ASOS Plc is achievement motivation in which employees are
motivated to go an extra mile of their target this directly helps them and for this, employees are
rewarded and praised in front of other employees (Adnan and et.al., 2018). It works another
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important motivational strategy that helps organization in achieving their main organizational
goals and objective in an effective manner and also helps employees in gaining recognition
within organization and stepping up on their career ladder.
F) Literature and corporate examples to justify the point
Corporate examples which justify the stand that the organizations work effectively and
efficiently on large scale and they are functioning on the basis of how the working sand the
process of the organizations is being followed effectively and efficiently. The corporate
examples are as follows –
Marks and Spencer is the major British multinational retailer which deals in selling the food
products, clothing and home products which are being utilized by the customers as the company
avails the services on that basis according to their requirements and the needs which are to be
fulfilled by the company (Kwiatkowska, 2018).
Sainsbury is the second largest chain of supermarkets which deals ion groceries and this helps
the customers and the company in exchanging the market deliverables which the company is
dealing in and making them reach the customers through different platforms on large scale
(Whelan and et.al., 2020).
Tesco is the biggest British multinational groceries and retailer which helps the customers in
acquiring the services which they have been rendering to them and fulfilling their needs and
capacities to buy the products and services of the company (Alam and et.al., 2019).
Hennes and Mauritz (H&M) – H&M is a company which is multinational retail known for the
fashion statement and delivers the customers the clothing line as desired by them by fulfilling
their requirements and the needs. It provides wide ranges of clothing line with each gender
section on large scale (Bonilla and et.al., 2019). Therefore, by fulfilling the wants and desires of
the customers the company is also flourishing in the market with great expansion significantly.
Recommendations
There are various types of recommendations which ASOS Plc should follow and this
makes the most of the ways and new ideas which are to be generated on large scale possible. The
various recommendations are described as follows –
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 Strategies should be framed in such a manner that all the process which are being framed
follow the strategies effectively and efficiently in such manner that new ways of work
and system is being created.
 Technological advancements should be done in such a way that all the advanced systems
of how the functions and the systems of the company are being processed and how the
products and the services will make the ASOS Plc company work in effective and
efficient ways.
 The market analysis should be done in an appropriate manner so that the target market
and the target customers’ intentions are analysed and through this the company is able to
make the necessary changes in the products and services which are being addressed to the
customers.
 More accessible payment gateways should be processed which will help the ASOS Plc
company in analyzing the external payment ways through which the customers are able
to acquire the services and the effectively and efficiently.
 The products and services of the company should enhance the ways in which the
company will be able to promote and their products and services.
 The marketing of the products and services should be done effectively through the usage
of social media channels which helps in promoting and branding of the products of the
company ASOS Plc.
Thus, these are some of the recommendations which helps the company in analysing what the
changes that are to be taken place and through this, it can be verified that what are the various
ways through which the company ASOS Plc can make the changes and this can be make ways
for the new processes and the techniques to be followed effectively and efficiently on large basis.
And along with this various methods of company will also be enhanced and by making the
changes effective and efficient.
CONCLUSION
Thus, it is concluded from the above report that managerial styles of ASOS Plc were
analyzed. Along with this, organizational structure and organization culture helped in assessing
the company’s form. Leadership style of the organization was described. Effects of power
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influence and conflict of the organization was depicted. Types of motivational strategies were
described. Various corporate examples were explained.
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