Critically Evaluating Organizational and Management Issues at M&S

This report examines the organizational and management issues faced by M&S, a UK-based global clothing and food retailer. The report addresses issues such as power dynamics, hierarchy, job role design, communication, and productivity. It evaluates these issues, highlighting their impact on the company's overall performance. The report also discusses the consequences of maximizing shareholder value and critiques whether this should be the dominant principle of corporate governance. The analysis suggests that while maximizing shareholder value has benefits, it should not be the sole focus, as it can lead to negative impacts on the company's long-term profitability and employee morale. The report concludes by emphasizing the importance of addressing organizational and management issues to ensure profitable operations and sustainable business practices.

INDIVIDUAL
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Question 1: Critically evaluate the organizational and management issues (such as power,
hierarchy and identity etc.) that are addressed in an alternative organization........................1
Question2: Discuss the consequences of maximizing shareholder value and critique whether
this should be the dominant principle of corporate governance?...........................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Management and organizational issues are the situations which takes place due to the
inefficiency of a manager or management in dealing at workplace or with workers (Allameh,
Rezaei and Seyedfazli, 2017). This assignment is going to cover information about
organizational and management issues which are faced by a company along with the impact of
maximizing the value of stakeholders. To perform work, M&S a UK based global clothing and
food retailer is selected organisation.
TASK
Question 1: Critically evaluate the organizational and management issues (such as power,
hierarchy and identity etc.) that are addressed in an alternative organization.
These issues can reduce the overall productivity of the company in negative manner. In this
context, most familiar issues are power management, job role design, productivity, poor
communication among employees and employers, constant change etc. Power management is
related with managing the extent up to which an employee can exercise its power. Sometime,
employees with high power misuse their benefits which makes its an organizational issue. Other
organizational issue is less productivity of the employees. This issue generates because needs of
employees are not given proper consideration. This reduce the working morale of employees
(Clarke, Jarvis and Gholamshahi, 2019).
Main management issues faced in M&S are poor communication among staff and
employers and designing job role. These issue arises due to the inability of management team to
perform their work. To overcome these issue, timely feedback of employees must be taken so
that working potential of employees can be understood. By this, job roles will be given according
to the capability and workforce will perform their work desirably. Also, regular feedbacks and
surveys will help management of M&S to identify the needs of workers due to which no
misunderstanding will be prevailed in them and lack of appropriate communication can be
resolved desirably (Seraphin and et. Al., 2018).
Question2: Discuss the consequences of maximizing shareholder value and critique whether this
should be the dominant principle of corporate governance?
Increasing the value of shareholders in a company means giving more power to those
people which are investing in a company or have some connection with the its affairs. In order to
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develop appropriate value, an organisation perform different things. In this aspect, major
elements is working in a sustainable manner. If M&S will work in a sustainable manner their
overall shareholder value will be high due to which wide support of investors, customers and
other individuals will be gained (Görög, 2016). These are some of the benefits associated with
maximising value of stakeholders. But, there exist many kind of negative impacts too. This is
because to enhance shareholders value, a company like M&S increase their stock prices and
reducing their dividends. In long term, it impacts profits of firm in negative manner.
No, maximisation of stakeholder power must not be the main principle associated with
corporate governance because it can impact the overall profits of company in negative manner
due to which surviving in market against rivals will became difficult for concerned organisation.
Other than this, there are some other negative consequences which can be faced by a company
due to maximising the power of stakeholders as their dominant principle (McClure and et. Al.,
2018). These issues are bad business practices which reduces the working morale of workers,
forgetting about the needs and requirements of customers etc. All of these issue will arises
because management will led their emphasize on getting high returns for stakeholders.
CONCLUSION
This assignment concludes that there are different kind of issues which are faced by a firm at
management and organisational level. If these issues will not be resolved, then it is not possible
for a company to operate in a profitable manner. If value of shareholders will be maximised in a
company, they will have more rights to take decision rather than the actual person who is
managing company. This will lead to improper use of organisational power due to which overall
productivity may suffer.
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REFERENCES
Books and Journals
Allameh, S. M., Rezaei, A. and Seyedfazli, H., 2017. Relationship between knowledge
management enablers, organisational learning, and organisational innovation: an
empirical investigation. International Journal of Business Innovation and
Research, 12(3), pp.294-314.
Clarke, T., Jarvis, W. and Gholamshahi, S., 2019. The impact of corporate governance on
compounding inequality: Maximising shareholder value and inflating executive
pay. Critical Perspectives on Accounting. 63. p.102049.
Görög, M., 2016. A broader approach to organisational project management maturity
assessment. International Journal of Project Management. 34(8). pp.1658-1669.
McClure, R. and et. Al., 2018. The impact of dividend imputation on corporate tax avoidance:
the case of shareholder value. Journal of Corporate Finance. 48. pp.492-514.
Seraphin, H. and et. Al., 2018. Destination management through organisational ambidexterity:
Conceptualising Haitian enclaves. Journal of Destination Marketing & Management. 9.
pp.389-392.
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