BA Business: Organisational Theory - River Island Case Study Analysis

This case study analyzes River Island's organizational theory and practice, focusing on management styles, organizational structure, and leadership. The analysis explores the persuasive management style of CEO Will Kernan, detailing its impact on employee motivation and trust. It examines the company's matrix organizational structure and fun-loving culture, referencing Handy's cultural model. The study delves into the democratic leadership style, emphasizing employee participation in decision-making. It also discusses the different types of power, influence, and conflicts within the organization, including legitimate, coercive, and expert power. The study further explores various types of motivation, including extrinsic and intrinsic motivation, used within River Island. The case study concludes with recommendations based on the analysis and supported by a literature review.

CASE STUDY ANALYSIS

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Management style .......................................................................................................................3
Organisational structure and culture ...........................................................................................4
Leadership style ..........................................................................................................................5
Power. Influence and conflicts. ...................................................................................................6
Types of motivation ....................................................................................................................7
Corporate examples and literature...............................................................................................8
RECOMMENDATION...............................................................................................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Organisational theory refers to the study of the organisation and their interrelationship
with environment which is internal and external in which it operates. It leads with study of
organisational behaviour and studies in regards with various human resources of company.
Management refers to the process of decision making, planning, leading, organising, controlling
and motivation of financial, human , physical and various other resources of the company. It
leads with reaching with its goals effectively and efficiently which relates with increase in sales
revenue and profitability margins of company. River Island Is being headquartered in London
and is high street brand of fashion which is operating in large number of worldwide markets. It
has around 350 stores all across United Kingdom and has established with its online presence
and websites where it is being selling its goods and services (River Island, 2020). Present report
will brief with management style and function of management used, will brief with steps in
organisational culture and structure and its impact on employees of company . It has briefed with
leadership style of CEO, effect of power, conflict in River Island. It has lastly briefed various
type of motivation being available in company and has being supported with literature review
MAIN BODY
Management style
Their are various effective management style which are being adopted by the CEO of
River Island that is Will Kernan which has supported with organisational growth in terms of
increase in the sale revenue and profitability margins of company.
It has related with Persuasive management style. It is being adopted by CEO which
states using of skills that are persuasive to convince the employees that decision which are being
unilateral are being implemented for the benefit of organisation, various teams and department.
This have led with employees to perform their task effectively where the CEO by employing this
style leads with inviting of various question and queries and explains with process of decision
making and rationality behind various procedures and policies. By this style of Will Kernan it
has led with employees to develop with sense of understanding that are being valued and trusted
part of the company and are being involved in decision making which is highly important and
leads to less level of stress, resentment between employees and management of River Island.
This management style leads with establishing huge level of trust between employees and will
leads to accepting of top down decision more effectively and efficiently in business (Chandolia

and Anastasiou,2020). This helps with responding of employees in positive and favourable
manner and feels with less constriction than those who are being managed with style that is
autocratic in nature. It is being used by the CEO as he is being having strong experience and
expertise in the subject in which he is being leading. It has led with explanation of process
which can be used in effective manner to derive for higher performance level.
There are some functions of management used by the CEO of company such as
Planning – It is deciding in advance the effective means of action for achievement of pre
determined objective and goals
Organising – This function relates with bringing all together financial, physical and human
resource and leading with development of relationship that is being highly productive to achieve
the goals of River Island (Ortikmirzaevich, 2017).
Staffing- This function relates with managing the structure of company. This leads with planning
of manpower, training and development, performance appraisal and various other criteria.
Directing – This leads with organisational methods and guidance to work effectively for the
achievement of purposes of company.
Controlling -This implies with comparison of actual with standard activities and taking measures
to improve upon the same.
Organisational structure and culture
There are various steps which are being taken by CEO in regards with organisational
structure in order to achieve for higher level of performance. It states with
Reviewing of objectives and plans- It leads with constantly reviewing of objectives and plans
with the alignment of activities to ensure that everything is in accordance with set requirements.
Determining of activities related to work to achieve the objective- It is being required to
determine with set of activities and task which are being needed in order to achieve the targets
of company in effective and efficient manner.
Classifying and grouping of necessary activities of works into units which are being
manageable-It relates with grouping of activities which can be on the basis of customers,
product type, function and geographical regions.
Assignment of activities and delegation of authority- This step in organisational structure relates
with distribution of tasks and activities to various individuals and team members and giving them
with the right to complete the same for achievement of higher performance.

Designing of relationship hierarchy- This step relates with CEO to determine with horizontal
relationship that is coordinating and horizontal relationship that is decision making of the
company as a whole .
The organisational structure followed by the CEO relates with matrix organisational
structure which shows up with cross functional teams that are being formed for special projects.
These relates with both roles and relationship of reporting (Miśkiewicz, 2017) . It allows with to
choose individual according to the project need and give more dynamic view to company. It
allows with employees to use more of their skills and capabilities aside from their original
responsibilities and roles.
CEO has brought up with the culture which is being fun loving and entertaining to
employees which has helped with decreased stress and improved level of productivity and better
relationship building between employer and employees of River Island. It has led to organising
of various activities where employees feel relaxed and leads with innovative and creativity on
their side. It can be understood by
Handy cultural model
Power culture- This determines power is being held by few individuals who influence throughout
the company. It is strong and can turn toxic in nature.
Role culture – This is being based upon rules. It is being controlled by each individuals knowing
their responsibility (Zhou,2017).
Task culture- It is being formed when team are addressing to specific project and problems.
Person culture – This is being opted by company where every individual see themselves superior
and unique to company which leads with employees achieving higher sales revenue.
Leadership style
The leadership style adopted by CEO Will Kernan to enhance with the effectiveness of
River Island implies with
Democratic style of leadership-
It states that CEO is more likely to take inn consideration viewpoints, opinions of its
employees before making any decisions. It is leading to share information with employees of
company about each and everything which may affect with the responsibilities of work. It is in
regards with taking of opinions of employees/ Staff before approving and making of decision
which is final. It leads with promoting of trust, loyalty, team spirit and employees cooperation .

It leads with creativity and innovativeness and helps employees to develop and grow in their
career. In simple words it is the style which is being adopted by Will Karnen where it enable
employees to do what is being want to be done but in manner which they want it to do. It is just
the opposite of autocratic style of leadership which regards with punishment of employees if the
objectives are being not achieved in favourable manner (Caillier, 2020).
This is leadership adopted by CEO where it encourages team members groups to take
more participative role in the process of decision making. This leads with higher productivity,
increased morale of team members and better contribution to achieve the goals and targets of
River Island. This leads with staff members to discuss and solve various challenges and issues
by giving each and every member with the opportunity to contribute in decision making process.
This encourages employees to share their opinions and ideas which develop sense of
understanding that efforts are being taken by company to value their efforts by favourable
means . This implies with engagement of individuals in the process of decision making where
creativity is being rewarded and encouraged.
However this can turn not be effective style of leadership as it can implies with projects
which are being uncompleted during unclear times and with various failures of communication.
It is being also states that members in team and group may not have and possess substantial
expertise and knowledge to make the contribution which are driven by the quality in process of
decision making (Parés, Ospina, and Subirats,2017). This can simply be understood as taking
up of feedbacks before making any decision.
Power. Influence and conflicts.
Organisational power is being defined as the capability and ability of the structure of
company to utilise all the resources which are being compulsory in favour of company
development such as machinery, man and various other resources. The effect of power is that it
leas with successful completion of activities and tasks on time. It leads with ability to influence
the behaviour of team members in company. Its effect is that it helps in developing the sense of
understanding on part of employees that if the work is being not done and accomplished than it
may leads with condition which are unfavourable for employees.
There are different bases of power and with different effects

Legitimate power- This is being used when individual are at higher position which gives them
control over the others. It is required that it should not be exercised in unfavourable as it will
result in loss of productivity of employees and vice versa.
Coercive power- This relates with taking something away and punishment for non compliance.
This power works with fear, and it forces employees of company to do something that ordinarily
one would not choose to do.
Expert power- It come directly from top skills level and year of experiences. This leads with
effective guidance to team which helps in ensuring less errors and mistakes are being made in
doing various activities (ÖZASLAN, 2017).
Informational power- This a short term power which does not build credibility and necessarily
influence other. It is being possessed when information is needed.
Reward power- This is being based that CEO will grant valuable rewards which can monetary
and non monetary if the activities and task are being accomplished which leads with productivity
to thrive for better performances.
Conflicts in company happens when there is non matching up of ideas, viewpoints of
team member and other parties of business operation. This result in loss of productivity of
employees to achieve the targets of company (Wang, Zhang and Deng, 2019). It leads with lack
of coordination and team efforts as a result directly affect with sales revenue and profitability of
company.
Organisational influence and politics is the self serving behaviours that are being used by
employees to increase with their probability of of obtaining favourable outcome in River Island.
These is being present in every organisation which decrease the morale and confidence of
individuals as a result leads with increased stress and employees leaving the organisation which
increases with hiring cost for employees.
Types of motivation
There are various types of motivation which are being used in River Island such as
Extrinsic motivation-
It refers to the behaviour which is being driven by rewards which are being external
which includes motivation which is being derived by means of fame, money, praise, appraisal
and various other. This is the motivation which arises from outside the individual by which their

efforts are being guided to thrive for better performance in the organisation (Locke and Schattke,
2019 ). This type relates with doing something which can be external.
Intrinsic motivation-
This is the motivation which comes within the individual itself. This is the motivation
which serves with satisfaction of individuals. One could be internally motivated as it is being felt
that there needs to be improvement on the side which derives with increase in effectiveness of
individual to perform their task more prominently and to survive in highly competitive business
environment. Unlike extrinsic motivation this does not implies with getting of monetary and non
monetary rewards.
This could be understood better with help Maslow Hierarchy of needs. It includes
Physiological needs- These serves with basic needs of employees which if fulfilled leads to
employees motivation. This includes needs such as providing with environment which is being
comfortable& pleasant. Basic needs leads with having salary and remuneration which helps in
fulfilment of need and wants of employees which leads with higher motivation at workplace.
Safety needs – These relates with security needs of employees. It leads with providing job
security to employees, providing safe working environment that provides safety from hazardous
situation. It leads with providing various health insurance and retirement benefit which ensures
with motivation of employees in River Island.
Social needs – This relates with needs of employees which are in concern with effective
relationship building with employer of company. It relates with involving individuals in decision
making process and providing with guidance and training through effective leadership and
responding to queries and hurdles faced by employees which serves with effective type of
motivating employees of company (Hopper, 20190.
Esteem needs – This relates with needs of employees in regards with participation in decision
making process of company, providing with various opportunity to display of with their talents
and skills . It leads with providing praise, recognition in company which leads with motivation at
the workplace.
Self actualisation needs – This relates with needs such as providing opportunity of career
enhancement and growth, getting of promotion and be on top management which provides with
motivation to employees of River Island.

Corporate examples and literature
According to Miśkiewicz (2017), it is being stated that Ken Murphy who is CEO top
retail chain of supermarket in United Kingdom adopts with transformational leadership where
the CEO works with its teams to know with the needed change, it leads to creating of vision to
guide the change by means of inspiration and executing the change constantly with members of
group. It is the important part of full range model of leadership. This is a style in which CEO
inspires, motivates and encourages employees to create and innovate changes which will help in
shaping and growing the success of company in near future.
As per the view of Kanfer, Frese and Johnson(2017) , it is being stated that leader at
Marks and Spencer uses functional organisation structure where the grouping of employees is on
the basis of skills , speciality and related roles and responsibilities. It is being based upon
various levels of hierarchy under the direction of leaders. This leads with skill development,
provides with more of clarity, minimised cost of operations and increase in productivity.
The Gardner, (2017) has stated that politics is Sainsbury leads with high rate of
employees turnover and increase in cost of hiring new individuals for the role and
responsibilities in company. The author Gardner, (2017) has stated with motivation in company
leads with lower level of absenteeism in company which leads with employees dedication,
commitment towards what is being assigned to them as a result build with sales revenue and
profitability of company and helps with favourable brand image.
RECOMMENDATION
There are various recommendation on the end of company to increase with organisational
performance. This are being mentioned as below
 It is being recommended with efforts of human resource department to hire, recruit and
select employees individuals who are being talented, skilled and qualified with meeting
up of various challenging tasks and support with business dynamics in tough times.
 It is recommended with identifying with needs and wants of customers and fulfilling the
same in manner which helps in deriving of their satisfaction level and build with positive
brand image and spread of positive and favourable word of mouth
 It relates with providing and arrangement of training and development program the
employees in assessment of their individual strengths and weakness. It is recommended
to utilise the strength in effective manner to utilise the resource in productive manner and

taking measures to improve upon the weaknesses which leads with less flaws and errors
in undertaking the business operation.
 It is recommended that company should deliver with quality of goods and services which
helps in building with trust and loyalty of customers and leads with retention of
customers and result in increase in sales revenue of company (Alyari and Navimipour,
2018.
 It is being recommended to company to employ with high end technology which helps
with providing of valuable insight about what is being required by the customers and
helps in building with easy flow of information and communication at all levels. It leads
with increase in sales revenue ad profitability margin of company. This will leads with
getting of tasks done with no time and less efforts with less cost which helps in increasing
with the organisational performance of River Island. It leads with innovation at the
workplace which leads with innovative and creative ideas at the workplace.
 It is being recommended to company to build upon the fun loving culture which develops
with sense of understanding that efforts are being taken by company to value employees
in company. It thus leads with less of stress and employees turnover in company
resulting in saving lot of money hence increases with organisational performance.
CONCLUSION
From the above report it is being concluded that there are various things which needs to
be taken in consideration by the key managerial personnel of company to result in increase in
profitability and sales revenue of company. It has briefed with persuasive leadership style of
CEO of River Island and various functions of management. It is being concluded with various
steps of organisational structure and culture which is being followed by company such as matrix
organisational structure and explained with Handy model of culture. It has made to
understanding of democratic style of leadership being adopted by the CEO of company. It has
briefed with effect of power, politics and conflict in company and its impact upon employees. It
has briefed with extrinsic and intrinsic motivation with explanation of Maslow hierarchy of
needs of motivation. It is being lastly concluded with corporate literature and examples to justify
with the stand. Lastly based upon the debate and discussion being made it has provided with
various valuable recommendation to increase with organisational performance in regards with
increase in building with favourable brand image.

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Online
River Island , 2020[Online]. Available through<https://www.next.co.uk/shop/brand-riverisland-
0> Accessed on 30th January 2021