LSC UoS BA Business: Sainsbury's Organizational Theory and Practice

This case study analyzes Sainsbury's organizational theory and practice, focusing on the leadership style of the CEO and its effectiveness within the company. It assesses the current structure and culture of Sainsbury's, highlighting the CEO's role in enforcing high performance through entrepreneurial strategies and corporate governance policies. The report examines the effects of influence, power, and conflict resolution by the CEO in managing change, along with various motivation strategies used to influence employee performance. It also includes corporate literature and examples to support the research and provides recommendations to enhance organizational performance. The analysis considers factors such as democratic leadership, hierarchical structure, Handy's cultural model, and French and Raven's forms of power model to provide a comprehensive understanding of Sainsbury's organizational dynamics.

ORGANIZATIONAL
THEORY AND PRACTICE

Student id:

Table of Contents
INTRODUCTION...........................................................................................................................4
TASKS.............................................................................................................................................4
A. Analyse and comment on the effectiveness of the leadership style of the CEO ....................4
B. Assessing the current structure and culture of Sainsbury’s and commenting on the role and
impact of the CEO in enforcing high performance of the organization......................................5
C. Entrepreneurial strategies and corporate government policies followed by the CEO to
enhance the performance and effectiveness of the organization.................................................6
D. Examining the effects of influence, power and conflict resolution at Sainsbury’s by the
CEO in managing change ...........................................................................................................7
E. Various type of motivation strategies used by the company to influence the performance of
employees....................................................................................................................................9
F. Corporate literature and examples in order to justify the above research.............................10
G. Recommending ways to enhance the organizational performance.......................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Organizational theory is defined as a study of the operations and structures of social
organizations. It helps an organization to improve its productivity and enhance the performance
of the company in the competitive market. The current report will be based on Sainsbury's, a
popular supermarket chain in UK which offers a wide range of products and services to the
customers.
The report will explain the leadership style used by the CEO of the organization by using
suitable theoretical models, assessing the current structure and culture of the organization and
commenting on the role and impact created by him to achieve high performance in the
organization, explaining the corporate governance policies and entrepreneurial strategy followed
by him to enhance the effectiveness of the organization, examining the effects of power, conflicts
and influence on the chosen company by the CEO in managing change, various type of
motivation strategies used by company and its impact on the employees' performance,
appropriate corporate literature and examples in order to justify the research, recommendations
or suggestions to enhance the performance of the organization.
TASKS
A. Analyse and comment on the effectiveness of the leadership style of the CEO
Leadership style is referred to the characteristics and behaviours of a leader in managing
a group of people. The democratic leadership style may be adopted by the CEO of Sainsbury's in
order to mote its employees and increase their efficiency. Democratic leadership is also known
as participative leadership where the members of the group take role in the decision-making
process of the organization (Mansaray, 2019). This leadership style may be suitable for both the
private and public institutions and Sainsbury’s may include its employees in its decision-making
process. The leader of the company may treat its employees with respect which may help the
organization to improve its organizational structure.
It may have a positive influence over the productivity of the organization. As the leader
may be able to get better ideas and creative solutions to the problems that may arise during the
organizational process. The employees may work their full potential and better commitment
towards the aims and objectives of the company. It may result in increasing the morale of the
workforce. This leadership style may also have some issues such as poor decision making by
unskilled group of employees and issues like fear of breach in the security of the crucial data of

Sainsbury’s. The democratic leadership style is effective where the group members are skilled
and motivated to share their knowledge towards achieving the goals of the organization (Boukis
and et.al., 2020). It may help in reducing the pressure from the employees and creating a
productive work environment.
The CEO highly focuses on giving freedom and creating better opportunities for the
employees to grow and enhance their skills. He may encourage the workforce to establish better
communication and coordination to complete the organizational task effectively. The democratic
leadership style may have been beneficial for the organization to gain competitive advantage in
the industry. It may help the management to increase its market share and expand into different
markets in various countries which will improve the image of Sainsbury among the customers.
The efforts of the CEO towards the development of leadership strategies of the organization may
have been the reason for the success of the super market giant. Sainsbury’s may be highly known
for its quality and consistency which is an output of the leadership style adapted by the CEO.
B. Assessing the current structure and culture of Sainsbury’s and commenting on the role and
impact of the CEO in enforcing high performance of the organization
Sainsbury’s may have hierarchical structure which may be segregated into a series of
level of people which again have responsibility of other level of people. A hierarchical structure
may create unity and authority in the organization which may ensure that everyone under the
managers will work honestly towards the organizational aims and objectives (Razak, Sarpan and
Ramlan, 2018). It may help the organization to gain competitive advantage in the industry by
creating an environment where employees may effectively work in unity to increase the
productivity of the organization.
The different organizational cultures may be explained with the help of Handy’s cultural model
are as follows:
Power culture
It is defined as the central culture that gives emphasis on the import stakeholders of the
organization. This culture is suitable for small scale industries and can be beneficial in improving
the productivity of the company.
Role culture

According to this step, the organization may have clear set of rules for completion of
specific tasks. It is beneficial for an organization which is not much big and have specified roles
to perform. It sometimes can result in an ineffective communication between departments and
create errors.
Task culture
According to this strep, organizations may highly focus on completing the tasks
effectively and efficiently. Employees are included in the decision making of the organization
which may help in improving their motivation levels. (Xie and et.al., 2018).
People or person culture
According to this culture the employees are given freedom by the organization to take
initiatives. It may be beneficial for organizations having expertise in technical department and
are related to research and development of products continuously. It may be a culture which is
imbibed by Sainsbury’s to effectively carry out its business practices. The company may be
passionate about working in a customer friendly environment and focus upon taking care of its
employees to increase their motivation levels and improve their productivity towards the
organization.
The CEO of Sainsbury’s, Simon Roberts may have a major role in motivating the
employees to enhance their performance and work towards achieving the organizational goals of
the organization effectively and at their full potential. The priority of the CEO may have been to
build strong brand heritage and a better reputation of the organization for quality and innovation
to offer consistent value for money products and service to the customers (El-Adl and Alkharusi,
2020). It may have a positive impact on the organization by increasing the competitive advantage
in the industry and improving the quality of services offered by the organization to the
customers. The CEO may adapt effective strategies to improve the quality of the work at the
organization and which may help in increasing its market share in the supermarket industry.
C. Entrepreneurial strategies and corporate government policies followed by the CEO to enhance
the performance and effectiveness of the organization
The business strategy of the company may include five factors which are; knowing the
customers better than anyone else in the market which may give the organization an advantage
over its competitors by gaining their valuable trust and developing an effective brand image in
their minds (Jameel and Ahmad, 2020). The other factor in the strategy is to provide consumers

with good products at better prices than the competitors which may help the organization in
increasing its market share and gain popularity among many new potential customers. Being
available for the customers all the time is a crucial part of the strategy of the CEO which may
help in establishing a better relationship with the customers. Employees making an identifying
difference in the organization by collectively working towards the organizational goals and
enhancing their skills (Maryati, Fitria and Rohana, 2020). The final element in the strategy may
be the positive values of the management which may lead the company to differentiate from its
competitors and enhance the performance of the organization.
The corporate governance policies followed by the CEO of Sainsbury's may be examined
with the help of Anglo-US Model, which may present the major stakeholders as the people who
have governance on the decision making process and other employees having different but
important roles in the organization. The steps are as follows:
The board:
The board of the organization may be highly responsible for the long-term success of the
business to set the group strategies and overseeing the implementation by the management
(Wirtz and Zimbres, 2018). The board members decide and formulate the effective policies for a
smooth governance.
Shareholders:
The major shareholders of the organization may have a prominent role in managing the
corporate policy of the organization. They may have less authority than the board members but
may have a proper influence on the corporate policy.
Management:
The management is an important part of any company as it may monitor the important
tasks to be performed in a business. Sainsbury's has an effective management which may focus
on development of the business and put efforts towards achieving the organizational goals.
D. Examining the effects of influence, power and conflict resolution at Sainsbury’s by the CEO
in managing change
The power structure is examined by referring the French and Raven forms of power
model, which may be defined as an effective tool to gain the knowledge of the complexities and
dynamics of power. The model may include the following factors:
Coercive Power

This authority involves coercing employees into doing something they are not interested
in. This may be achieved by forcing someone to perform any tasks against their will. (Rashid and
Rana, 2019). Coercive power may be used by the manager of an organization to force the
employees by using threat and punishment in order to create pressure to perform a specific task.
Legitimate Power
It is the formal authority given by the organization to a person in order to perform tasks
and manage the employees effectively. It may be the power with superiors such as bosses and
key members of the management team. It comes when the employees recognize their authority in
the organization. It may help them to grow and develop their working ability.
Reward Power
It the power which is given to the leaders in the organization to reward employees on the
basis of their contribution towards the company. It is a positional power which is based on the
position of the person in the company. The rewards may be helpful for the employees to
improve their productivity in the organization. Sainsbury's may use reward power which may be
encouraged by the CEO to the organization due to the democratic leadership style which may be
used by him to carry out operations in the organization.
The CEO of the organization may have a major role in the conflict resolution for the
change management. He may develop effective strategies in order to improve situation which
arise due to the conflicts that may arise in the company which are a major reason for the
organization. He may set clear goals and objectives for the employees to get an effective
outcome and may be in charge of carrying out senior management's objectives. He may be
involved in the day-to-day operations of the firm and may be able to supply useful information to
senior executives in order to boost the bottom line (Jashari and Kutllovci, 2020). He may have a
major influence on employees to develop their interest in the organizational goals and also may
help in increasing productivity of the company and gaining competitive advantage in the
industry. He may support the employees who are efficient and contribute better towards the
organizational goals which may have a major influence on the people.

E. Various type of motivation strategies used by the company to influence the performance of
employees
The motivation strategy of the Sainsbury’s may be understood by using the Masolow's
motivation model, which is an effective tool used to understand the important needs of
employees and increasing their motivation to enhance their productivity. Employees are
encouraged by the organization by fulfilling their needs and providing them with incentives and
perks in order to increase their engagement in the organization. The steps in the model are as
follows:
Psychological Needs
They are the basic needs of the employees which the company may need to fulfil in order
to enhance their performance and improve their productivity. It may be beneficial for the
employees when their primary needs such as food, water, shelter, etc. are met regularly. It may
provide them with motivation to work with their best potential towards the aims and objectives
of the organization.
Safety Needs
It may be the next but one of the most important factors for the employees as when they
feel secure and safe in the work environment they tend to work effectively. It may provide
employees with stability and safety to grow and improve in the existing work environment. It
may also increase the motivation levels in the employees to work efficiently.
Love and Belonging Needs
When the social needs of the employees are successfully met it may provide them with
satisfaction and motivation. It outlines the need of an individual for family, friendship and love
which may be important for the employees to grow and prosper in the work environment (Al‐
Yami, Galdas and Watson, 2018). It may also have an influence over their performance which
may be beneficial in developing their productivity.
Esteem Needs
The need of the employees to gain status, recognition and respect may be a major
requirement for them to improve their performance. Sainsbury’s may focus on rewarding their
employees on the basis of their contribution towards the organization which may help them to
gain competitive advantage in the market.
Self - Actualization Needs

It is a final level of the theory which may be the most important need of the employees as
they may realize their full individual potential which is crucial for motivation. Individuals strive
to become their best version when their self-actualization needs are met and organization may
focus on providing employees with programs and courses to enhance their skills and
performance (Manganelli and et.al., 2019). The right education and information may be provided
by the organization to the employees to increase their motivation towards the objectives of the
organization.
F. Corporate literature and examples in order to justify the above research
As per the views of Purwanto, Asbari and budi Santoso, (2019) Tesco which is a major
competitor of Sainsbury's, may use a democratic leadership style to motivate its employees in the
company. The employees in the organization may be valued and given freedom to take part in
the decision-making process of the organization. It has been beneficial for the company to
manage its workforce and increase their efficiency by using this leadership style. The business
strategy of Tesco may be to expand by establishing new stores by adapting the needs of the
customers. It may be beneficial for the organization to manage the conflicts that may arise in the
company by adapting a flexible culture.
However, another research by Nelson, and Zippel, (2021) Aldi may be another company
which is a major leader in the supermarket industry and may use a flat organizational structure
where the managers have a wide span of control and strong governance over the business
operations. This may sometimes create rigidity in the organization as the communication may
become difficult under this structure. The company's business strategy may focus on providing
high quality products at lower prices to the customers. It may have a strong culture which may
focus on specific activities and benefits for the employees in order to ensure ultimate
productivity and efficiency. It may have a major influence over the satisfaction levels of the
employees due to the negative work environment in the company and the behaviour of the
superiors towards the employees.
G. Recommending ways to enhance the organizational performance
Sainsbury’s can improve the performance of the company by applying effective strategies
to manage its workforce and operations of the organization. It may be beneficial for the company
as these strategies can provide the management with a proper plan to organize its resources and
employees. These strategies can lead to achievement of the important goals set by the company

to gain competitive advantage in the industry. The company can focus on establishing a flexible
work environment in the organization where employees are motivated and satisfied to work
freely in order to achieve success. A positive work environment may be beneficial to reduce
stress and complexity from the mind of the employees. It can provide them with the
opportunities to enhance their skills and improve their performance effectively.
Sainsbury’s can focus on recruiting the highly qualified candidates to improve the quality
of their workforce. It can have a positive impact on the productivity and profitability of the
organization due to their high contribution towards the tasks assigned and improved workforce
may lead to enhancement of the performance of each and every individual due to the competitive
environment in the organization. The company can organize various contests and skill
enhancement test which can help the employees to feel motivated and this can lead to better
productivity of the company.
The CEO should consider improving its leadership style to provide employees with a
better work environment where they can communicate and express themselves effectively. It can
help them to focus on the organization goals by being motivated and satisfied due to the efforts
of the management. He can have a vision in benefit of the employees which can again help the
company to rise. The management of Sainsbury’s can focus on improving its organization
structure by adding more resources and applying better strategies to improve the performance of
the company. It can be beneficial for the organization to gain competitive advantage over its
rivals. It may be fruitful for the company as it can have a positive impact on the employees
towards the tasks assigned to them by the management.
CONCLUSION
According to the report it has been summarized that it has been beneficial for the
company to apply the effective strategies applied by the management to improve the
performance. The positive leadership style of the CEO has been the reason for the enhancement
of the employees. It has contributed in increasing their motivation levels and providing them
with the best atmosphere to work. The efforts of the management towards organizing the
resources and staff effectively have had a positive impact on its competence and upliftment. It
has helped in building an effective image of the brand in the minds of the public which has been
beneficial for the organization to expand its services. The entrepreneurial and motivational

strategies of the organization have been successful in providing the employees with an effective
framework to contribute with their best potential towards the tasks.
The change management ability of the key stakeholders of the organization has been
perfect in order to stay ahead of its rivals in the industry. The management has been successful in
applying effective changes in the structure of the organization which has improved their ability
in order to deliver better products and services to its customers. The company has been
successful in conflict resolution which has been helpful in managing the problems that arise
during operations.

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