River Island Leadership and Management Analysis: A Report

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Management and Operations

Executive summary
The present study highlights the significance of the pivotal functions of the leaders
and managers working in an organization named, River Island, UK. The differences
explained between the purposes of managers as well as leaders clearly state that
both of the entities are required are helpful for the betterment of the organisation.
Different theories regarding leadership and management are defined relating to the
present situation of the organisation. Several rules and protocols are demonstrated
and their importance is discussed as well.
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Table of Contents
Introduction of the organization and management structure.......................................3
LO1 Differentiate between the role of a manager and leader......................................3
P1 Define and compare the different roles and characteristics of a leader and
manager...................................................................................................................... 4
M1 Analyse and differentiate between the role of a leader and function of a manager
by effectively applying a range of theories and concepts............................................5
LO2 Apply the role of a leader and the function of a manager in given contexts........6
P2 Examine examples of how the role of a leader and the function of a manager
apply in different situational contexts..........................................................................6
P3 Apply different theories and models of approach, including situational leadership,
systems leadership and contingency..........................................................................6
Assess, critically analyse and evaluate the strengths and weaknesses of different
approaches to situations within the work environment (M2, D1).................................7
LO3 Demonstrate an appreciation of the role leaders and managers play in the
operations function of an organisation........................................................................8
P4 Explain the key approaches to operations management and the role that leaders
and managers play......................................................................................................8
P5 Explain the importance and value of operations management in achieving
business objectives.....................................................................................................8
M3 Evaluate how leaders and managers can improve efficiencies of operational
management to successfully meet business objectives..............................................9
D2 Critically evaluate the application of operations management and factors that
impact on the wider business environment.................................................................9
LO4 Demonstrate an understanding of the relationship between leadership and
management in a contemporary business environment............................................10
Assess and analyse the factors within the business environment that impact
operational management, decision-making by leaders and managers, business
environment and the wider community (P6, M4).......................................................10
Conclusion................................................................................................................ 11
References................................................................................................................12
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Introduction of the organization and management structure
Headquartered in London, United Kingdom, River Island is a British, high street
fashion retailer organisation having more than 350 outlets in the major parts of the
United Kingdom, Asia and Ireland. It sells a wide range of its own fashion clothes, as
well as, fashion accessories ranging from party wear to holiday trip dresses, formals
for men, women and children. Having more than 60 years of fashion retailing
experience, the organisation is best known for retailing exclusive men, women
clothing, shoes, bags along with several branded accessories, footwear and is loved
by all its customers due to its unique fashion ideas and affordable prices. The total
operating income of River Island yearly is 87.7 million GBP. Not only in the United
Kingdom, but the brand also has access to several parts of Singapore like Saudi
Arabia, many others where they serve their customers through online shopping
(River Island, 2019).
The management structure of an organisation like River Island plays an important
role in understanding the relations between their managers, their employees
(Eisenberg, 2017). The proper management structure is very essential to run an
organisation efficiently and profitably. To understand the needs and priorities of the
organisation several strategies and policies have been implemented by the
management structure. Thus, the pivotal functions of management structures are-
allocating the assigned task to their employees analysing their capabilities,
Motivating and encouraging their employees in order to achieve the target goal.
Other than that, the interaction with the employees is also an important function of
the management structure. Thus, the management structure of River Island, UK
facilitates their management methods along with their, customer service system to
operate the regular marketing functions efficiently and profitably.
LO1 Differentiate between the role of a manager and leader
Basis of comparison Leaders Managers
Aim Leaders create a vision
for their employees
Managers set up goals for
the organisation
Capability They are capable of
inspiring and influencing
his team members
They are capable of
controlling and
monitoring, which brings
stability to a particular
organisation
Strategies required A proactive strategy is
required
A reactive strategy is
required
Main focus The main focus is on the
employees
The main focus is on all
the procedures and the
processes of the
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organisation
Purpose It aims for effectiveness It aims for efficiency
Approach towards
employees
Leaders support and
motivates their employees
Managers organize and
direct their employees
Table 1: Difference between Leaders and managers
(Created by the learner)
P1 Define and compare the different roles and characteristics of a leader and
manager
Manager- The primary function of the managers in an organisation is to monitor and
direct the activities of the employees (Dumitru et al., 2015). Managers make sure
that the organisation functions well, and are directly involved in making decisions
regarding the welfare of the organisation. Apart from that, they possess several
managerial skills which are required to perform several functions to run the
organisation efficiently and effectively. Several functions performed by the managers
of River Island, UK are:
● Planning- Planning is the pre-arranged strategy, which is required to
implement and coordinate several activities of the organisation along with
setting particular goals to be achieved by the employees.
● Organising- Organising assists in determining the kinds of tasks to be
performed, and also decides how the group of tasks are to be executed.
● Staffing- This ensures the grouping of several kinds of organisational
activities performed by several employees according to their capabilities.
● Directing- Directing and motivating the employees working under the
managers to accomplish the target goal.
Leader- The leaders inspire their employees to build self-confidence in them and
influence their team members to achieve the required target (Legood et al., 2016).
For example, in River Island, leaders act as a representative who assists their staffs
to work together in a team and motivates them to build up their confidence to
perform efficiently. They also implement several strategies like creating vision,
mission in order to boost up the employees to perform their duties. Several roles a
leader performs are:
● Motivating the team members- Understanding the priorities and demands of
the employees, providing them with their required necessities, leaders always
ensures that his employees are working comfortably. They motivate their
employees, communicate directly and provide praise for the good task done.
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● Guiding the employees- It is the most essential function of the leaders. A
leader always assists his/her team members and guides them to achieve the
target goal. They implement several strategies to influence his members to
execute the target goal easily.
● Building morale among his team members- Leaders always ensures that
the employees are working together to achieve the same goal. Thus, they
boost up their employees to build confidence in them and appreciate them
accordingly.
M1 Analyse and differentiate between the role of a leader and function of a
manager by effectively applying a range of theories and concepts
Different kinds of issues arise among the employees, which are resolved timely by
the leaders and managers of the organisation. To satisfy their employees and to
make a fair decision timely the leaders and managers implement several policies
and rules for the welfare of the organisation and allow running efficiently and
profitably. Therefore, by understanding the requirements of the employees the
managers, as well as the leaders of River Island assign the task as per the
employee’s capabilities. The staffs get satisfied and the retention of the employees is
increased.
The theories of the leadership followed by River Island are:
Contingency Theory- It highlights that a similar leadership style is not suitable for
every situation where the leaders must prepare separate strategies for each unalike
situation (Nawaz and Khan, 2016). The leaders of River Island are trying to defeat a
few crucial factors like lack of employee retention and less profit earned. The leaders
are trying to implement a few strategies so that the employees retain as well as the
profit margin increases.
Behavioural theory- Behavioural theory of leadership focuses on the specific
behaviour of the leaders working in an organisation (Amanchukwu et al., 2015). In
River Island, UK the leaders act as a representative and with the fine behaviour they
motivate and inspire their team members working under their leadership which help
to maintain overall organisation’s uniformity, unity looks after the betterment of the
company.
The theories of management taken into consideration by River Island are:
Frederick Taylor theory: This theory emphasizes on the fact that to increase the
productivity of the organisation the managers must reward their employees and
overlook a few minor mistakes made by the staff (Turan, 2015). The managers of
River Island conducts several public recognition programs to appreciate their
employees, they also ensure that the employees are given incentive, several
additional payments as rewards.
Henry Fayol theory: This theory sheds light on the fact of how the management of
an organisation interacts with the personnel (Uzuegbu and Nnadozie, 2015). In River
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Island, the management system helps their employees by organising their groups, by
allocating tasks as per the employee's capabilities; monitor’s them well so that the
employees achieve the target goal timely.
LO2 Apply the role of a leader and the function of a manager in given contexts
P2 Examine examples of how the role of a leader and the function of a
manager apply in different situational contexts
Making sure that the situation has been analysed a leader can take the help of a
manager in order to resolve any issue. The examples can be taken from that of the
company River Island itself as the store managers who act as team leaders keep in
mind what the job really demands and what kind of capital they have in order to fulfil
the requirements aligning it with that of the company goals. The store managers
make sure that the employees learn to make crucial decisions on their own. If the
organisation employees know that they can make crucial decisions efficiently and the
staff is well-versed in regular customer scenarios then the company will be able to
judge if they can promote someone or not. Therefore, leaders’ help in HRs evaluate
and carry out tasks of performance management (Bens, 2017). Managers being
numbers-oriented, as they are, concentrate majorly on their own reputation when it
comes to that of promotion. Leaders can take a laid-back standpoint despite being
stakeholders but managers cannot which makes them look like autocrats and the
leaders as democrats in an organisation like that of River Island. Managers want to
achieve everything in a time-bound manner hence they make use of the task-
oriented theory of management that asks a manager to help teams and its leaders
to focus more on the task at hand and the performance that is required to achieve
the required level of output. If the manager adopts a Transactional leadership style
that is making sure the workers are punished or rewarded for their work as they
deserve, it becomes difficult for the leaders to motivate them to perform their best
(Roos and Pike, 2018).
P3 Apply different theories and models of approach, including situational
leadership, systems leadership and contingency
The theory of situational leadership makes sure the workers understand that both
leaders and managers have to motivate them so they can take the best measures for
enhanced output (Thompson and Glasø, 2015). The company, River Island has
made a lot of efforts to make the team leaders and managers understand the same
as it believes in the development of the WOW factor meaning the ways of working so
as to inspire grow on and develop each other. The company makes sure the leaders
have imbibed the same and can continue to motivate their team so as to achieve the
necessary targets (River Island, 2019). River Island has several store managers
under that of the main area manager who is Ms Debbie Newman. The store
managers act like leaders in this case and help teams achieve maximum growth.
The concept of Systems Leadership is very idealistic making the employed work in
the way so as to achieve maximum output and growth under the tutelage of a
particular leader. It is made to happen by the increase of productivity going by past
examples of former models of leadership and social processes in River Island.
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The Contingency theory relies on how much the leaders can effectively match their
style of going about their business to that of the demands of the situation
(Thompson, 2017). Not always in real life can the store managers of River Island
show such a flexible attitude towards work-life as the tremendous pressure for output
and productivity always hits them the hardest.
Assess, critically analyse and evaluate the strengths and weaknesses of
different approaches to situations within the work environment (M2, D1)
Based on different theories of leadership, the strengths and weaknesses of the
approaches towards different situations can be judged (Storey, 2016). The theory of
situational leadership inspires flexibility which a company like River Island can only
follow in moderation. Excess of the same will make the workforce be lead astray and
some of them might even complain of not having discipline and organisation. The
team finds a reason to stay close and bond with one another thus the environment
encourages free circulation of ideas and that of a relaxed way of achieving targets.
This kind of a workforce environment makes employees feel like they are an integral
part of River Island. Employee-awareness is enhanced as the unit managers of River
Island can get back to the main store manager with useful details about every
situation. This process is more or less self-intuitive and role-reversals between
leaders and team members are allowed (Miner, 2015). There are factors that make
this theory weak and non-viable like that of confusion as workers of different store
units may not work in the same way and are unable to achieve the same level of
output. The store-unit managers are prone to make use of planning for the short-
term by making use of strategies that serve no greater purpose. As an evaluation, it
can be said that this theory is best if used in organisations that want to achieve more
of worker-based coordination and harmony.
Under the theory of Systems Leadership, a glossary of business terms is
explained so that someone from a different field can understand the same
(Antonakis and Day, 2017). The framework is clarified for the presentation and
interpretation of real-time situations and phenomenon. It clarifies any kind of
thoughts or questions the employees may have in regards to that of the dynamic
environment and the way in which ideas can be brought to form. The process is built
concentrating on various parameters that are complex and difficult to understand
(Macdonald et al., 2018). It brings a lot of risks attached to it so most leaders find it
impractical to incorporate for daily business and River Island does not endorse this
idea as well. The managers mostly rely on a comprehensive guided structure that
engenders discipline and time-management. This approach is best if implemented by
companies making way for innovation however River Island which targets to bring
luxury within the mid-budget range has to innovate more responsibly. Thus this idea
of leadership is being ruled out for not being conducive to sustainable growth.
Betterment of masses in general or employment of experimentative long-term
creative ideas is definitely not that of the company goal so the managers are averse
to the idea of this theory to be practised at the workplace.
Contingency theory makes it available for people to understand what the essential
criterion is for being a good organisational leader (Daft, 2015). Horizons are
expanded by establishing the link between organisational situations and leaders. The
theory, however, does not plunge into the depths in regards to why certain people
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are shine as leaders due to certain situations only so it should concern the company
since they cannot change store-unit managers for every alternate task in River
Island.
LO3 Demonstrate an appreciation of the role leaders and managers play in the
operations function of an organisation
P4 Explain the key approaches to operations management and the role that
leaders and managers play
The main criterion that makes operations management what it is is the alignment of
strategic organisational goals to itself so that management is as efficient as possible
(Heizer et al., 2017). Here is where the manager shines. The operations process
involves designing and controlling of the same using outcomes regarding the same
for the redesigning of commercial operations in order to effectively maintain the
returns undertaken for the products that are used during manufacturing. It is mainly
focussed on actions that help in the gaining of strength and outcomes by making
sure of operations management being hard at work (Reid and Sanders, 2015). The
managers of COE (Centre of Excellence) for River Island like that of Melanie
Warren, who work non-stop for the betterment of their team’s performance in terms
of delivery of growth, maximisation of profits and sales, making customers satisfied
(and converting them into brand loyalists), consistently developing the management
team and setting standards in regards to the achievement of KPIs or Key
Performance Indicators. They also focus on making action plans for strengthening
(by the elimination of weak links) and achieving results simultaneously. It may be
considered as a practical approach, to have an inventory system for the bettering the
prospects of the employees. It just might improve their efficiency on the whole and
give way to the delivery of products by the system of forecasting of the accuracy of
demands (Stratton et al., 2016). The continuous improvement approach is what
River Island tends to lean towards the most as it helps in bettering of products slowly
but ensuring effective results.
P5 Explain the importance and value of operations management in achieving
business objectives
Operations management serves the maximum utility for the management of large
companies like that of River Island as it is in direct relation to that of the
manufacturing of services and goods. The goals of the company are to provide the
maximum functionality out of budget-friendly luxury items and the delivery of great
customer service. Like every other company River Island too wants to make sure of
the effective running of the business mechanism and meeting of productivity goals.
Operations management plays a pivotal role in organisations by making managers
more efficient in the achievement of company goals within a strict pressure for timely
delivery of everything (Slack and Brandon-Jones, 2018). Operational management is
at the centre of all activities in any company and controls all of the operating
systems. The team for operations management handles problems like that of design,
operation and improvement of the system that is used for the production of the
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company services and products that are essential (Thompson et al., 2015). The
department has additional duties in finance and marketing. Machinery and labour
capital is utilised fruitfully by that of operations management. Tanya Cooper, who is a
Retail Operations Manager for River Island, Greater London was instrumental in the
renovation of a new shop locale for the company and successfully got it done in
Romford. This is the level of impact they have in terms of total production and
profitability. The maximisation of shareholders is another aim to be fulfilled by the
operations management. The team makes sure that production costs are reduced by
non-wastage of tangible and abstract assets and qualities.
M3 Evaluate how leaders and managers can improve efficiencies of
operational management to successfully meet business objectives
An organisation like that of River Island is constantly on the lookout for better
managerial direction or for that of sustaining itself in the retail business sector. Good
managers know exactly how to figure out a balance between their workforce,
scheduling problems, financial pressures and agencies of regulators. The leaders
who have great listening skills, who know how to prioritize and do multitasking,
make sound judgements or decisions. Leaders, in consultation and effective
collaboration with managers and HRs, can help in promoting the right people to
further the objectives of the company (Buckingham and Goodall, 2015). The leaders
and store-unit managers in collaboration with the upper echelons of River Island
make sure that they make no mistake in the management of labour and promote a
person for the right reasons. It is contradictory as the best workers may not always
be superior-grade supervisors or line managers so the leaders and managers have a
tough task at hand to accomplish. Team leaders and managers have to choose
among the right tools for management (that is management software) if they want
to observe an improvement in the company’s overall performance. Choosing of tools
will also make sure that team efficiency is doubled and the sales figures look better.
Managers are sometimes unable to make tough decisions that are a priority in any
company like that of River Island. They need to manage situations where the
employees is unavailable onsite or for that shift. They need to make sure the
employee can call someone if the manager is absent for a reason (Robinson, 2018).
An employee who is assured of the fact that their presence is not taken for granted
will strive to work harder producing better output.
D2 Critically evaluate the application of operations management and factors
that impact on the wider business environment
Operations management is the heart of the company and it is the reason why the
company survives. There are however many factors that can impede the kind of
positive effect it may have like that of inward corruption that may be pervasive at all
levels of the working structure. The managers announce the decisions mostly and
they are also part of framing some policies so if corruption prevails management can
collapse anytime. Since operations management is dealing with that of technology
and design they need to make sure that the product quality is maintained so
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that customers are not lost to other competitors. The industry is filled with cases of
hiring of unskilled workforce breeding nepotism and had to be weeded out by the
HRM (Hoskisson et al., 2017). The managers can run the operations team better if
they do not lean into the side of corruption along with the leaders who are supposed
to have a wholesome impact on any part of the workforce. The managers of the
company are known to be faithful like the leaders who do not engage in any kind of
double-dealing or anti-social activities. Leaders and managers are not expected
to play favourites while choosing to promote someone in the company (Meredith et
al., 2017). The managers and the leaders mostly have an open door policy for
investors who are likely to feel defrauded if the outcome of the sales is not
sufficient. They try to make the most of the available machinery and labour capital.
Networking with that of the labour pool is maintained so that they too feel that the
leaders and managers are concealing facts from them about the institution.
LO4 Demonstrate an understanding of the relationship between leadership and
management in a contemporary business environment
Assess and analyse the factors within the business environment that impact
operational management, decision-making by leaders and managers, business
environment and the wider community (P6, M4)
Something that has a direct relationship with the business contributes to the
business environment (Prajogo, 2016). It is a combination of mostly all internal and
external factors affecting the business of River Island.
There are many bonuses of the company apart from what has been enumerated
above. They make visual merchandising a plus by having store windows unlike any
of its competitors like that of Asos or Next. The brand is known worldwide so it is
definitely an added advantage. The staffs make sure that the customers get what
they are looking for and are prompt while checking for clothes from the warehouse
stock. Their company has maintained their quality and they have a better trial room
with better customer facilities by linking with the official website.
The employees need to stick to their shift timings and not wander off as customers
are often left to browse by themselves. Customer interaction can be enhanced by the
dissemination of product knowledge.
The company can re-train the employees and make them privy to more knowledge
about the company and the product so they are more confident and proactive while
helping shoppers in a hurry. Stores should have more flyers and banners reflecting
the offers that are relevant for customer's understanding. They can make use of
monetary capital by having an ordering system for saving the customer’s valuable
time and offer student discounts along with added advantages for members etc like
that of Asos.com and Next, PLC.
River Island is a reasonably priced brand but other companies like Next and Asos
are doing better in terms of catering to the needs of being affordable.
There are several other factors like that of CSR or Corporate Social Responsibility as
it helps the company have an image that can be considered as trustworthy and of
any global importance with the advent of the “vegan” and “cruelty-free” cultural
influences on every aspect of life (Crowther and Seifi, 2018). This approach helps in
finding a point of balance with that of the local culture so that their company can
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withstand the test of time and are not wiped out like that of a fad. River Island makes
sure that the daily wage-earners are not taken advantage of by factory owners and
there is no illegal dumping of slag or other material raising the temperature of
oceanic and other local water bodies thereby helping the preservation of the
indigenous fauna and flora. The company does look like it is helping to preserve and
bond with the local culture by the implementation of policies of CSR by the
management who is strict about the same. River Island is a family-owned business
that makes sure they do not take away the human rights of employees in any way of
its workers despite cut-throat competition for productivity and outcome. They are
conscientious about labour management and preserve the dignity of anyone involved
with the workforce and the buyers. The company is also aiming at the meeting of
stakeholder expectations by fulfilling all CSR policies that are pertinent. There are
Government policies that can hamper the balance the company has achieved in the
industry in terms of market rivals. The economic disadvantages of the staggering
economy are also not conducive of business growth. The company is probably afraid
to infiltrate into newer locations for business as international laws are very stringent
and may have a deterring effect on that of garnering of revenue.
Conclusion
The organisation in order to be able to allocate tasks effectively will have to make
sure that the managers and the leaders are utilised effectively to their profit. The
leader may be slightly different from the manager when it comes to having a part in
the duties of operation but they are nonetheless significant. The workforce derives
motivation from the leaders as the managers are endowed with the task of keeping
the work environment professional. The leader has a vision while the manager slogs
away after numbers. In order to sum up everything that has been said before the
organisational structure has a lot to derive from both who align the taskforce to that
of the company’s objectives and aims.
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