MGMT6012 - Woolworths: Organizational Theory & Management Case Study

This case study report provides an in-depth analysis of Woolworths' management perspective, starting with an introduction to the company and its operations in Australia and New Zealand. It details the research methodology employed, focusing on case study methodology and the use of naturally occurring data. The report explores Woolworths' vision, mission, values, culture, and management style, aligning them with Morgan's metaphors for understanding organizations. It further examines relevant organizational theories, including Classical, Neo-Classical, Systems, and Contingency theories, highlighting Woolworths' adherence to the Systems Theory. The study also addresses the company's approach to ethics and diversity, concluding with recommendations for improvement. This document is available on Desklib, where students can find a wealth of study resources including past papers and solved assignments.

Running head: AN INTRODUCTORY MANAGEMENT PERSPECTIVE
Business Systems: An Introductory Management Perspective
Name of the Student:
Name of the University:
Author Note:

1AN INTRODUCTORY MANAGEMENT PERSPECTIVE
Executive Summary:
The aim of the case study is to provide an insight into the management perspective of
Woolworths. The case study report commences with the introduction of the firm followed by
a discussion on the research methodology adopted. The case study report also puts forward
the vision, mission, values, culture and management of Woolworths in alignment with the
metaphors put forward by Morgan. There are also discussions about the organizational
theory, ethics as well as ethical diversity followed by Woolworths. The case study report ends
with necessary recommendations.

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Table of Contents
Introduction:...............................................................................................................................3
Research Methodology:.............................................................................................................3
Vision, Values, Mission and Insight to Culture and Management Style Using Morgan’s
Metaphors...................................................................................................................................5
Organizational Theory Relevant to the Organization:...............................................................7
Ethics and Diversity...................................................................................................................9
Conclusion and Recommendations:.........................................................................................10
References:...............................................................................................................................11

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Introduction:
The case study report aims at providing an insight into the management perspective of
business perspective with respect to Woolworth. Woolworths Group Limited refers to the
major Australian company having a wide retail interest throughout not only Australia but
New Zealand. It represents the second largest firm across Australia in terms of the revenue.
In other words, Woolworths Group is not only one of the prominent takeaway liquor retailers
of Australia, but is one of the largest hotel and operator of gaming poker machine across
Australia (woolworthsgroup.com.au, 2018). As per records of 2008, Woolworths represented
the 19th largest retailer of the world. The key operations of the firm includes the supermarkets
under the brand name Woolworths in Australia and Coundown in New Zealand, retailing of
liquor as Dan Murphy and BWS in Australia, pubs and hotels under the umbrella of
Australian Leisure and Hospitality Group (ALH Group) and discounted departmental stores
under the name Big W in Australia. The company announced a total loss of $1.235 billion for
the financial year of 2016 and has a listing in the ASX. The case study report focuses on
demonstrating the understanding of the organizational theory that includes organizational
ethics, values and ethical practice. This particular company is chosen since its represents the
country’s largest supermarket chain that capitalizes on the surging market share with a new
advertising slogan and campaign. Woolworths now represents the Fresh Food People of
Australia.
Research Methodology:

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It is important in determining the research methodology as it helps in not only
answering but also understanding the research questions. For analysis, case study
methodology and use of naturally occurring data is embraced for better results.
Case study methodology is one of the most common and involves a deeper
understanding using multiple sources of data in providing an explanation about the entity,
organization, company or event (Hyett, Kenny & Dickson, 2014). Case studies not only can
be explanatory but also exploratory in describing the event. In other words, case study
methodology is established in the social sciences and the approach helps in informing the
practice through an illustration as to what works well, things that has been achieved and
addresses the issues or the dilemmas. It represents the type of research enquiry that examines
real life contemporary phenomenon. However, single case studies face criticism because of
its incapability in generalizing the conclusions. The argument put forward against this is that
same size used is not capable of transforming the single or the multiple cases into the
macroscopic study. Nevertheless, single case studies remain acceptable when it is able to
meet the established objectives of the study. Outcome of the individual case studies can
however be analyzed analytically but not statistically.
The benefits of the case study methodology lies in their flexibility and in the capturing
of reality. The case study is flexible in the sense that they can be conducted at different points
of the research process (Baskarada, 2014). The researchers favour them as a means of
developing ideas for a wider research in future. Sometimes pilot study also takes the form of
the case studies. They also represent useful conduit in a broad number of research methods
due to the non-pre judicial aspect. Focus group is a notable phenomenon for case study
research and is similar to participant or questionnaire observation. The case study approach
also helps in capturing reality. As put up by the researchers, case studies possess the potential
when successfully applied for retaining noise of the real life (Yin, 2017)

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Besides, the research methodology also involves dependence on the naturally
occurring data that is either available in archival, textual or in the form of documentary
without the direct intervention of the social researcher (Silverman, 2015). In other words, this
type of data exists by the virtue of examination process and requires a collection and analysis
process. Considering naturally occurring data will also ensure ethics approval for the
research.
Vision, Values, Mission and Insight to Culture and Management Style Using Morgan’s
Metaphors
According to Morgan, an organization is viewed in terms of eight basic metaphors.
The eight archetypical metaphors of an organisation as described by Morgan are as follows
(Hussain, Hafeez & Hussein, 2015):
1. Organization as Machines: This is characterized by efficiency, inputs, order,
standardization and output.
2. Organization as Organisms: This remains characterised by adaptation, lifecycle,
living systems and homeostasis.
3. Organization as Brains: This is characterized by requisite variety, mindsets,
feedbacks and learning system.
4. Organization as Cultures: This is characterized by societies, traditions, beliefs,
values and the shared mission and vision
5. Organization as Political Systems: This remains characterized by interest, power,
alliances, informal and formal pathways.
6. Organization as Psychic Prison: This is characterized by the organization being
trapped by certain common types of traits.

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7. Organization as Flux and Transformation: Characterization of this metaphor
depends on the notion of dissipation, stability and entropy.
8. Organization as Instruments of Domination: This is characterized by the ability to
influence or demand the compliance of the others.
Vision of Woolworths: It lies in building not only a store led but also a customer led team
and culture along with generation of the sales momentum in the food
(woolworthsgroup.com.au, 2018). The firm also moves forward with the vision of evolving
its business for ensuring more convenience and value to the customers. Woolworths also
pursues strategies for delivering value to the shareholders. Besides, the Woolworths also
possess the vision of becoming a lean retailer by acquiring end-to-end systems and process
excellence.
Values of Woolworths: The values of Woolworth lie in their commitment to integrity and
hard work. The firm believes in maintaining family friendly values
(woolworthsgroup.com.au, 2018).
Mission of Woolworths: The mission of the company lies in delivering the best
convenience, quality and value to the customers (woolworthsgroup.com.au, 2018).
Insight to the Culture and Management Style: Woolworths believes in maintaining a
down to earth culture. All aspect of the company’s business has a sole purpose of making the
lives of the customers not only easier but also simpler and better. Therefore, every decision of
the firm revolves around the customers (Low, 2016). In addition, the company also strives to
be honest, open, fair and transparent culture. Be it the team member, the producers,
manufactures or team members, Woolworths takes care of every individual walking through
the doors.

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Woolworths follows a management style where a head of the branch represents the
top of the hierarchy and remains responsible for the store’s overall performance. Senior
managers’ looks after the daily operations like the control of cash, staff rotas and the stock
control. The management also comprises of full time middle-aged employees and is
responsible for regularly delegating task. There are also part time employees who are mostly
students and mostly work during the weekends when the shop remains busier. Comparatively
these employees have lower responsibilities and mostly carry out orders placed by the senior
managers and full time employees. Thus, the management style at Woolworths is removed
from the staffs . Due to the presence of the informal hierarchy in place, the branch head have
little communication with the employees. This implied that the management did not know
staffs at the personal level and this resulted in the poor application of the motivational
methods. Thus, the vision, mission, values, culture and the management style at Woolworth
seems to fulfil all the eight metaphors put forward by Morgan.
Organizational Theory Relevant to the Organization:
The existing management theories of organizations include:
Classical Organization Theory: This theory depends on the belief that the workers
only have economic and physical needs. It however does not consider job satisfaction or
social needs but involves specialization of the labour, decision-making, centralized leadership
and profit maximization (Hatch, 2018). In other words, this theory is a means of putting
together the theory of scientific management, administrative theory and bureaucratic theory.
This theory did not work as it described the motivation factor only as the function of the
economic rewards.

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Neo Classical Organization Theory: This theory puts forward that improvement in
productivity within an environment is coherent with the purpose and the value (Shafritz, Ott
& Jang, 2015). Within a cohesive environment, organizations can find success where the
subordinate accepted the managerial authority. The vital aspect of the theory lies in
maintaining equilibrium although there can exist unpredictable responses to the managerial
authority.
Systems Theory: This theory describes interrelatedness in every part of the
organization implying how the changes in one influence the other parts (Luhmann, Baecker,
& Gilgen, 2013). Systems might not always interact in a linear fashion. Smaller changes in a
part can bring about bigger changes in another portion and vice versa. In most cases
organizations act as a system that interacts with the environment. The equilibrium constantly
changes with the adaptation of the organization to the changing environment.
Contingency Theory: This theory deals with conflicts. According to theory, conflict
is unavoidable, but it is manageable. Organizations evolve in meeting their strategic needs in
a sequential, rational and linear manner (Mikes & Kaplan, 2014). Adapting to the
environmental changes holds importance for the organizational and managerial success.
Managers should posses the ability of making contingent decision on the current
circumstances.
Change represents one of the critical aspects in Woolworths for enhancing the
efficiency of management. The firm undertakes it in response to the dynamic external and
internal factors that undergoes transformation with the present organizational necessities.
Evidence has put forward that narrow descriptions of the jobs, procedures and the inflexible
procedures and rules along with operational specialization and impersonal management
cannot respond in an adequate fashion for the demanding changes. In remaining with these

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perspectives, organizational change holds importance for various external and internal
reasons. On a similar note, change within Woolworths tunes in and undergoes reorganization
with the future demand through anticipation of the external events. The concept puts of
forward the fact that involvement Woolworth in undergoing change from ongoing state to the
desired state for the future management of the transition process.
Therefore, as one of the trusted and the renowned retailer brand of Australia,
Woolworths aims at a constant endeavor of delivering unique experience to the customers
across all the stores in Australia. The constant evaluation of the company’s innovation
represents a perfect example that defines the incredible growth in terms of delivery in not
only the retail food chain service but also the financial service business. Moreover, the
organization blended the changing environment of the business along with making substantial
changes for the accomplishment of the customer demands along with greater values in terms
of choice. Woolworth’s management however believes in the fact that retailing should not
languish and so decisions about the customers along with the shopping behavior must
undergo change in a dynamic manner. Thus, Woolworths represents the Systems Theory of
organizational management.
Ethics and Diversity
Woolworths believes in following an ethical practice and thereby aims at providing
the customers with higher quality products having monetary value. In the present day global
market, this implied sourcing of products from varied locations either internationally or
nationally. In the recent times there has been concerns over the poor conditions of working
and the environmental degradation in the emerging markets and the developing countries has
viewed companies in implementing detailed environmental and social criteria for production

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facilities that sources the products. In this context, Woolworths introduced the policy of
ethical sourcing for ensuring the following (woolworthsgroup.com.au, 2018):
Sourcing of products in responsible fashion
 working with the suppliers on improving the environmental and the social practices,
 providing a clearer guidance to the buying staff,
 protecting the corporate reputation that includes reputation of the individual
businesses along with their brands
Woolworths has embraced diversity and hence wants all its employees to feel respected
and valued at the workplace irrespective of the age, gender, beliefs, ethnicity, sexual
orientation, disability or the gender identity (wow2016cr.qreports.com.au, 2016). The firm
also took steps in reducing the gap of gender pay issues. Besides, the firm undertakes
extensive analysis and work for understanding the gaps in salary wage.
Conclusion and Recommendations:
On a concluding note, it can be said that Woolworth adopted change through
innovation so that it is able to provide the customers with the best quality products and ensure
a unique experience. The organization also contributed in blending the changed environment
with the demands of the customers thereby embracing the system theory of organizational
management.
It is recommended that for the improvement of the supply chain it is necessary for
Woolworths in figuring out the weaker department with the supply chain that would help it in
becoming more efficient. Supply chain should however optimize itself for avoiding any
threats. It is further recommended that for reducing the cost in relation to the contravention or

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the compliance with the laws and regulations, the firm should focus increased attention
towards easing tension with the supplier.

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References:
Baskarada, S. (2014). Qualitative case study guidelines.
Hatch, M. J. (2018). Organization theory: Modern, symbolic, and postmodern perspectives.
Oxford university press.
Hussain, Z. I., Hafeez, K., & Hussein, S. (2015). Minority entrepreneurs’ exposure and
journey in business: the underpinning assumptions and actions.
Hyett, N., Kenny, A., & Dickson-Swift, V. (2014). Methodology or method? A critical
review of qualitative case study reports. International journal of qualitative studies on
health and well-being, 9(1), 23606
Low, C. (2016). New Woolworths boss promises fresh culture. Retrieved from
https://www.smh.com.au/business/new-woolworths-boss-promises-fresh-culture-
20160226-gn4k4q.html
Luhmann, N., Baecker, D., & Gilgen, P. (2013). Introduction to systems theory. Cambridge:
Polity.
Mikes, A., & Kaplan, R. S. (2014, October). Towards a contingency theory of enterprise risk
management. AAA.
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. Cengage
Learning.
Silverman, D. (2015). Interpreting qualitative data. Sage.
woolworthsgroup.com.au (2018). [online] Available at:
https://www.woolworthsgroup.com.au/ [Accessed 29 Oct. 2018].

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business/ [Accessed 29 Oct. 2018].
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