Organizational Theory and Practice: Mothercare Case Study Report

This report provides a comprehensive analysis of Mothercare, examining its organizational theory and practice. It delves into the management styles employed by the CEO, highlighting the principles and functions utilized. The report explores the organizational structure, including its impact on achieving high performance and the company's culture, as well as the effects on employees. Furthermore, it assesses the CEO's leadership style in relation to enhancing organizational effectiveness. The report investigates the various types of motivation implemented at Mothercare, supported by corporate examples and relevant literature. Finally, it offers suggestions and recommendations for the revival of Mothercare, drawing on the analysis conducted throughout the report. The report covers topics such as division of work, authority and responsibility, equality, planning, organizing, and leading. The analysis includes discussion of flat organizational structures and democratic leadership styles. The report also examines the role of power, influence, and conflict within the organization.

Organizational Theory
and Practice

Contents
INTRODUCTION.....................................................................................................................................3
TASK A......................................................................................................................................................3
Management style, principle and functions used by the CEO of Mothercare..........................................3
TASK B......................................................................................................................................................5
Steps taken with regard to organization structure to achieve high performance and the organization
culture at Mothercare and its impact on the employees...........................................................................5
TASK C......................................................................................................................................................6
Leadership style of the CEO of Mothercare to enhance the organizational effectiveness........................6
TASK D......................................................................................................................................................7
Leadership style of the CEO of Mothercare to enhance the organizational effectiveness........................7
TASK E......................................................................................................................................................8
Various types of motivation used at Mothercare.....................................................................................8
Corporate examples and Literature.........................................................................................................9
Suggestions/Recommendations for the revival of Mothercare.............................................................10
REFERENCES........................................................................................................................................11

INTRODUCTION
Organizational theory can be defined as a set of concepts that are interrelated, different
definitions that explain the behaviors of employees as well as groups working in the company.
The individuals and groups interact with each other in order to perform tasks so as to achieve
organizational goals and objectives (Alexander, 2019). The theory basically studies the effect of
different social relationships among individuals as well as their actions in the organization. Not
only this, it also studies the effect of internal as well as external business environment like legal,
cultural, political etc. It is important to study organizational theory because it helps in solving
problems and at the same time, maximizing efficiency as well as productivity. This further helps
in meeting the expectations of the stakeholders of the company. Organizational theory then uses
various patterns to formulate new strategies. There are various organizational theories like
classical theory, scientific management theory, bureaucratic theory, modern theory etc. If an
organization uses organizational theory in an effective manner, it can have various benefits not
only for the company, but society as well.
Organizational theory can help in identifying adverse forms of corporate practice that can
affect an organization. The organization chosen for this report is Mothercare, which is a British
retailer of products for expectant mothers as well as general merchandise for children up to the
age group of eight years. The company was founded in the year 1961by Selim Zilkha and James
Goldsmith. Mothercare is headquartered in Watford, United Kingdom. When the company
started initially, it focused on selling pushchairs, nursery furniture and maternity clothing but
later on expanded its product portfolio. Today, the company offers a wide range of clothing for
expecting mothers as well as children (Bowen, 2016). The report examines the management style
and state the principle as well as functions of management that are used by the CEO of the
company. The report also analyzes the steps that are taken in context to organization structure so
as to achieve high performance and the organization culture within the respective company.
Lastly, the different types of motivation that are used at Mothercare.

TASK A
Management style, principle and functions used by the CEO of Mothercare
There are various types of management style and principle that will assist CEO of
Mothercare organization to conduct its business activities (Pollack, 2015). Management style
will guide and direct CEO to manage its business function as well as increase capability of
business to attain set goals. CEO of respective company is using participative management style
in order to direct employees. This is very effective management style as this will support and
guide employees to work in right direction in order to meet with business requirements. In this
management style CEO is participating in business activities and this will lead to motive
employees to conduct business task effectively and efficiently.
There are different principles of management that will provide guidelines for conducting
business activities as well as management organization task. CEO of Mothercare organization is
considering different important principle of management while conducting business task. Major
principle that is consider by CEO includes division of work, authority and responsibility and
equality.
 Division of work – As per this principle, CEO divide larger and complex task of
organization into small parts . This work is divided among different employees according
to skills and capability.
 Authority and responsibility – This principle of management refer as the right of person
to take accountability of work done and obligation for performance.
 Equality – CEO of Mothercare organization is considering equality principle in business.
According to this principle each and every employee of organization is treated correctly
and kindly.
Functions of management that is used by CEO of Mothercare organization are –
 Planning – This function of management will help CEO to take better decision that will
assist in attaining set objective (Lindon and Trodd, 2016). In planning function of
management will lead to create a detail action plan for conducting business activities.
 Organizing – This refer to organizing and managing different functions and resources of
organization. It is crucial for CEO to organize all resources and employees of

organization is significant manner as this will lead to have positive impact on
organization.
 Leading – Leading function of management is related to directing and guiding
employees to conduct business activities in requirements manner (Dalkir, 2017). Leading
function will include efficiency of employees. Through this function CEO of respective
company is able to motive employees and control their performance.
TASK B
Steps taken with regard to organization structure to achieve high performance and the
organization culture at Mothercare and its impact on the employees
Organizational structure can be defined as a framework that outlines how different tasks
and activities are allocated, coordinated, supervised and directed within an organization. It is
important because an organizational structure guides the employees by outlining to whom they
have to report to. An organizational structure makes it easier for the management to add to new
positions as well as a flexibility within the system (Capello and Kroll, 2016). Not having a
proper organizational structure can lead to confusion among the employees and they will not
know whom are they supposed to report. There are different kinds of organizational structures
like flat, matrix, line etc. Mothercare has a flat organizational structure, which means that there
are only few or no levels of management between the employees of the company as well as
higher authorities.
The organizational structure of the respective company comprises of two full-time
executive directors, a chairman who works part time and six non-executive directors who work
independently. The directors of Mothercare are re-elected by shareholders once every year. The
non-executive directors and chairman are appointed in order to make sure that there is an
appropriate balance between skills as well as experience of the employees. One of the key roles
of the directors is to that the corporate governance compliance by the company is appropriate
and also, reflects the best practice. This kind of organizational structure makes sure that the
employees perform effectively. Organizational culture on the other hand, can be described as a
system to shared assumptions, beliefs and values that govern how employees of the company
behave.

The organizational structure of the company has significantly contributed to its overall
performance as well as productivity. There are different theories that explain the concept of
organizational structure within an organization (Conforto and et. al., 2016). An organizational
model describes the structure of the organization in terms of rule, relations and role of the
employees within the system. Having a flat organizational structure has proven to be helpful for
Mothercare because it eliminates the excess or any unnecessary layers of management in the
system so that it becomes easier for the employees to understand whom do, they have to report
to. This has helped the company in maintaining its performance as well as enhance overall levels
of productivity.
TASK C
Leadership style of the CEO of Mothercare to enhance the organizational effectiveness
Leadership style can be referred to as the method of guiding and providing direction to
the employees of the company. The current CEO of Mothercare is Mr. Glyn Hughes. Leadership
style is an important component for an organization because it significantly contributes to the
overall performance as well as productivity. If the leaders of an organization will have an
effective style of leadership, the employees will be able to work more efficiently and effectively.
This further leads to the company attaining its organizational goals and objectives. Appointing
Glyn Hughes as the CEO has been beneficial for the company because the overall performance
of the company in the market has improved. This has led to an increase in the overall morale and
productivity of the employees.
Kurt Lewin developed three different leadership styles in the 1930s which were
autocratic, democratic and Laissez-Faire leadership styles (Leadership Styles, 2020). According
to him, autocratic leaders are those who don’t consult their team members or subordinates before
making any decisions even if the input of the members is useful. This type of leadership style is
appropriate when important decisions have to made quickly or when there is no input from the
members of the team. The other leadership style is democratic leadership, which the CEO of
Mohercare also uses. Glen Hughes involves his subordinates in the process of decision making,
wherein they are encouraged to share and put forward their ideas and thoughts. This type of
leadership style is adopted by the CEO in order to enhance the effectiveness of the company and
help the employees develop creativity.

The last style of leadership explained by Lewin is Laissez-Faire which involves the team
members are given freedom in how they do their work. The leaders of the teas provide support as
well as resources to the team members if there is a need. Most of the time they don’t interfere in
the work of the employees (Dalkir, 2017). This type of leadership style can lead to an increase in
the overall satisfaction among the employees towards their respective jobs. But on the other
hand, it can still be disadvantageous for them if they don’t manage their time well. Moreover, the
overall productivity and levels of self-motivation of the employees will also get impacted.
Therefore, an effective leadership style within the company ensures that the employees work
efficiently and that the levels of performance is also maintained.
TASK D
Leadership style of the CEO of Mothercare to enhance the organizational effectiveness
Organisation culture and performance of employees will be majorly affected by power,
conflict and influence. This will lead to have major impact on capabilities and potential of
Mothercare organization to perform business task in significant manner. Employees will conduct
business activities as per the effect of power, influence and conflicts of organization. Mothercare
firm will be able to increase business activities by enhancing the impact of power and influence
in positive manner. Power can be described as the authority and control that is held by top
management. Power of take decision and controlling organizational activities will lead to have
significant impact on organization as well as performance of employees. In respective
organization power to take important decision is hold by CEO and another top manager. This
will affect potential and capability of employees to performance organization task.
Mothercare organization is based in expert power as this type of power will support in
guiding employees to work in effective manner. In this organization experts have completely
knowledge and understanding for performing organization task as well as conduct task in
required manner. Expert power and right knowledge will lead to influence skills and other
competencies of employees. Effective of influence will have crucial impact of employees and
business task. Leaders of respective company have high capability to influence employees to
increase their capability and productivity in order to achieve set objective (Patterson, Zibarras
and Ashworth, 2016). High influencing power of leaders and manager of Mothercare

organization will guide and direct employees. This will support in increasing capability and
potential for employees as well as motive them to perform better.
Influencing skills of leaders will assist in creating positive and healthy working
environment of organization. Conflicts within the organization will lead to have negative impact
on organization as well as productivity of business. It has been identified that there are various
reasons that can lead to conflicts within organization and this will majorly affect decision making
process of organization. Conflicts will lead to disturb business process as well as implementation
of strategies (Reedy, 2020). It is crucial for Mothercare organization to take correct and effective
steps in order to resolve organization conflicts and management business activities in required
manner. healthy conflicts between employees will lead to create positive completion in
organization which will directly increase productivity of organization. Whereas negative conflict
will affect working culture of business.
TASK E
Various types of motivation used at Mothercare
Motivation can be defined as a need or drive within an individual to achieve something. It
holds a lot of importance within the employees of a company because if the workforce of the
company is self-motivated, the employees will put in their best efforts in getting a task complete
and help the company in attaining its goals and objectives in the most efficient way. Motivation
within a company also helps in reducing the overall level of staff turnover thereby increasing
their morale (Rubenand Gigliotti, 2016). There are two types of motivation, intrinsic as well as
extrinsic motivation. Intrinsic motivation means that an individual is motivated from within
whereas extrinsic motivation is when the individual has to be motivated through different
external sources. Many employees at Mothercare are self-motivated, but the company also
provides many opportunities to the employees in order to enhance their overall motivation levels.
The company follows the practice of awarding the employee of the month based on the
performance. The employee is given an award as well as compensation benefits. The employees
are also provided bonuses from time to time so that they remain confident and motivated. If an
employee is recognized for his/her efforts that they put into completing a task, they feel
motivated. And this can be seen in their overall performance as well as productivity levels.
Compensation and trophies are tangible motivating factors, if employees are given such benefits,

they will work more efficiently. Apart from this, praise is also another factor that can help in
increasing the internal motivation of the employees. When people receive positive feedback and
praise, they perform in a better way.
Before assigning a task, the managers or team leaders of the company make sure that the
employee is motivated enough to perform the same (Spigel, 2017). Just like extrinsic motivation,
intrinsic motivation is also important. Employees of an organization should be self-motivated,
because that is when they can perform to their best levels. Also, it is important for the respective
company, Mothercare to provide opportunities that help them build and enhance their overall
level of motivation. Therefore, it can be said that motivation is among the most important
functions within an organization that can contribute to the overall success as well as profits of the
company. Also, motivation is not only important for the company but its employees as well. The
workforce remains loyal to the company and perform in an efficient manner.
Corporate examples and Literature
Mothercare is a British retail company that offers products for expectant mothers as well
as children up to the age of 8 years. There are many management styles that an organization can
use which include visionary, democratic, transformational and coaching. Management styles can
help a company in becoming more efficient because the managers help and guide their tea
members (Rubenand Gigliotti, 2016). For example, the CEO of Mothercare, Glyn Hughes
motivates the employees of the company by providing them various opportunities so that they
perform effectively. Also, the organization structure of a company plays an important role
because the employees get a clarity as to whom they are supposed to report to. For example,
Mothercare has a flat organizational structure, which means that there are no unnecessary levels
of management in the system. This has been beneficial for the company because the overall
performance as well as productivity of the employees has increased.
There are different styles of leadership that a manager within the company can adopt in
order to achieve organizational goals and objectives efficiently. The different leadership styles
include democratic, autocratic and laissez-faire. The CEO of the respective company uses
democratic style of leadership wherein the employees of the company are asked ad encouraged
to share their thoughts and ideas. This develops their overall motivation as well as confidence
levels and they will perform in a more efficient manner (Waldmanand Jensen, 2016). Also,

power, influence and conflict can affect the firm because if there will be a greater number of
conflicts, it will affect the overall morale as well as performance of the employees. This can
further affect the company’s overall productivity as well. Also, there are two types of motivation,
intrinsic as well as extrinsic. For example- Mothercare provides various opportunities too its
employees in order to boost their overall motivation.
Suggestions/Recommendations for the revival of Mothercare
In order to improve the current situation, the company is recommended to work on its
overall organizational structure. This is because having different levels of management will
make it easier for the employees to communicate report to a higher authority. Apart from this,
the company is also recommended to improve communication within the system. For this, it is
important to provide effective communication channels so that employees in different
departments can communicate with each other. Also, the managers or team leaders should
provide constructive feedback to the employees from time to time so that they can keep a track
of their performance. This will also ensure an increase in their overall productivity levels.
In order to increase motivation as well as confidence of the employees, the management
of the company is recommended to offer bonuses, rewards or compensation benefits. Due to this,
the employees will feel encouraged and motivated to perform better. Weekly meetings should be
conducted wherein the manager allocates tasks to the team members as well as reviews their
performance. This is also beneficial because the management will be able to keep a track on the
overall progress as well as performance of team members. The company is also recommended to
start the practice of peer reviews so that the employees can receive more real reviews about their
performance and contribution in a project.
Effective training should be provided to the employees who are newly hired. This will
help them in understanding the different processes and also get to know the employees within the
company. The management of the company is also recommended to communicate its
expectations to the employees clearly so that there are no confusions. The foremost priority of
the company should be the effective development of its employees. This is because well trained
and developed employees can help the company in achieving its goals and objectives in the most
efficient manner. Lastly, appropriate and latest technologies should be used in order to make sure
that the employees feel empowered and perform effectively.

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