28 Jun 2022

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Organizational Theory in Practice

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INTRODUCTION 

Management style comprises a unique way in which leaders manage and handle their subordinates within an organization. Im, Cho, and Kim (2019) point out that a leader can use a wide range of styles for managing their employees within the organization. Leaders look at the prevailing conditions to decide the future courses of their action and the culture to adopt within their organization. 

With the recent Pandemic of Covid-19, the retail store has faced a challenging economic period. These challenges present the need to reshape collaboration and communication in dealing with this impact on the business's proper functioning. The overall leader of Wal-Mart, McMillan (2020), has called for the need to practice open and honest conversation and to listen with open ears. He also calls for the need for the retail stores globally to start focusing on strengthening the communities. There is also the need for organizations to focus on the culture of collaboration and effective communication. 

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LITERATURE REVIEW 

A: Management Style and functions and management principles as used by the CEO of ASDA retail store. 

Management style : Andy Bond focuses and uses the authoritarian management style to manage its functions by having a clear direction and control. This kind of management style is also regarded as the autocratic style or the directive management style. Yaari and colleagues (2020) indicate that the style has well-defined hierarchies and roles mainly on reporting structures, and employees may have questions regarding their work consistency. The main emphasis at ASDA is mainly on determining capacity that can be of additional value in providing retail services in this organization. The CEO, therefore, emphasizes the critical cultural components of Wal-Mart, which involves the provision of excellent, timely series and serving customers with respect and integrity. 

Principle of management: 

Innovative management is an important key that is used by many retail organizations. ASDA has been able to survive with the limited innovation by focusing on quality products and working towards maintaining competitiveness in the market. They are analysing all the issues that are causing changes in human behaviour. The CEO can use different ASDA management principles; Henry Fayol has developed 14 principles and a new management concept perception. 

Bond focuses on developing a unity of direction as the fifth principle of Fayol's 14 management principles by engaging the activity with a unified goal. In this regard, all people in an organization must possess one motive and goal to make the work easier & achieve objectives. The situation of COVID leads to creating the main direction of the whole organization to create a supercentre pick up & delivery capabilities for online grocery. 

Functions of management : The CEO can use four functions of management in the organization. Bond is making use of such principles to manage the Change in ASDA as mentioned below: 

Planning : The CEO's primary role is to create a plan for achieving the objectives and goals. It also includes allocation of resource to stop employees and further delegation of responsibilities by setting realistic timelines & standards for achieving the goods delivered more quickly. CEO believes that there can be no growth without change, so there is a forward-thinking approach. 

Organizing: The next step is to organize where the CEO is working towards organizational skills to ensure that all functions are running smoothly. Park and colleagues (2019) say that it ranges from structures to internal processes to ensure that teams and employees perform those tasks best suited to them, such as using express delivery options. 

Leading : Managers have to be confident and comfortable during the time of challenges and changes. In ASDA, it involves the projection of a strong sense of direction by communicating the new processes that are launching seventy new innovative capabilities in addressing the COVID virus. 

Controlling: In ASDA controlling function is to work towards the achievement of success of the organization by monitoring employee performance, quality of work reliability of projects, and ensuring efficiency. 

B. Analysis of as per the organization structure for the achievement of high performance and change in the culture bought by CEO 

Division structure : While an organization is willing to expand the supply of goods & services to Customers, there is a need to offer different products according to business engagement. A divisional structure aims to group various organizational divisions according to specific demands, markets, products, and customers. Divisional structure is divided into three categories: Product structure: Product structure is grouping together of specific goods produced by the organization in different product categories “ Product a," Product b, and product c. 

Structure of the Market: 

It involves grouping workers as per specific markets. According to geography, the organizational structure is how employees fall into groups depending on the geographic location to represent one division. ASDA has, in the past, been using geographical structure but has now changed to market structure. CEO Bond focuses on this style because it leads to higher efficiency in the way functions are being performed. There is the adoption of the hierarchical structure according to the massive size of the organization. Rodriguez and da Silva (2020) show that the retailer has around 2.2 million employees worldwide, and there is no alternative organizational structure. The BOD consists of 16 members that include two members from the Walton family. 

The CEO of ASDA focuses on structural characteristics that can help facilitate the strategic implementations to capture a higher market share in the retail market. There have been online commerce developments where ASDA has shut down Jet.com and do away three years after spending three billion dollars for acquiring the capital. Bond (2020), as indicated in ASDA reports, says that he has no regrets regarding the decision to purchase the firm. It has led to jump-starting of progress made last through years. There has been a picking up of traction with delivery end pick up. 

The extensive network of ASDA stores indicates that 90 per cent of UK citizens proximity to the nearest outlets. It can be used as a strategy by the CEO to deal with the issues arising because of the present scenario of COVID 19. 

Culture : the organizational culture of ASDA determines how people respond to the challenges that are part of the workplace. Employees' mind-set is a factor for their resilience, which has to be enhanced through organizational culture. The culture at ASDA (2019) facilitates the retail business for adapting to the challenges and changes that are taking place in the external market. It provides a competitive advantage to deal with competition from competitors such as Amazon, who possess primary online digital distribution operations. 

Impact on employees

Creation of inclusive culture: there has to be the strong commitment of 2.3 million associates that drives ASDA online commerce stores, logistics, and various activities vital for customers' needs. Leaders at ASDA believe that associates are playing an essential role in driving the business. CEO McMillan is focusing on listening to associates for bet idea generators. Learn from the Best (2016) indicates that ASDA all the employees are expected to practice the behaviour that has to be consistent with their core values. It includes high-quality services to customers and striving for higher excellence so that employees can act with integrity. 

C. Describe the leadership style of the CEO of that firm 

CEO of ASDA Bond uses a transformational leadership style related to using a style by leaders that is for encouraging, motivating, and inspiring the employees to c reate change and innovating that can help shape and grow the future of ASDA. Ametorwodufia and Mensah (2020) point out that CEO Bond focused on leadership lessons where he defines that leadership as all about learning, introducing new ideas, and answering questions of other suburbanites, and willingness to learn. 

ASDA is a retail business that has been embraced to go with the rapid environmental changes affecting retail business to achieve change without risks. Transformational leadership can be at different levels of teams, divisions, departments, and organizations. It is generally used in the case of leaders being visionary, daring, inspiring, and risk-takers. They possess a charismatic appeal that is used for changing the way the organization is operating. Different aspects of transformation leadership are done in ASDA to promote the constant mission, vision, and other members' values. 

Intellect stimulation: This is the primary approach that is adopted by Bond to influence the followers to be more creative and innovative. It also encourages the development of new ideas from the subordinates, this there is preferences on ensuring h igher creative thinking on the part of subordinates so that they can be motivated further to develop new ideas for corporate thinking. Forward thinking is used for making decisions and long-term success of the company. The main aim of leaders Bond is to build trust by communication to people related to the culture of integrity and improvement of process, talent compliance, and all other systems. 

D) The effects of power, influences, and conflict regarding the ASDA organization

ASDA is a multinational retail chain in the UK to target ample numbers of customers and was founded in 1962 by Sam Walton. It is a famous chain in the UK, which offers a wide range of products, and services are offered at a lower price. It includes enhancing the standard of living to save money and better living. Chumba and Mutinda (2017) show that In 1924, it opened 24 stores and incorporated them as ASDA stores, Inc. making it the fastest-growing industry because they operate its operations in many other countries, such as 11 states with 276 stores. 

In the early 1990s, this organization has been amount the top leading position in supermarkets. It started its operations in the UK market and ventured into other places such as the Mexican market in Canada, China, and the European market. The retailer is formulating new strategies to implement effects such as increas ing energy efficiency and achieving the goal of supplied energy due to zero waste of sale products and services, resulting in people and individuals. 

Effect of power : ASDA is focusing on the use of operations management. It involves a different variety of processes that focus on the management of the supply chain & inventory. 

ASDA's success is based on retail operations management's performance covering ten decision areas of ASDA's operations management strategy. There is a strategic direction that pertains to managers' issues to deal with effect of power daily to optimize this company's operations. 

The CEO forms the organization's vision and mission based on which the approach is developed to align the corporate mission statement with the vision statement. There is a requirement to achieve higher efficiency by ensuring long-term growth & success in the global market. 

Conflicts: Conflict management is regarded as limiting the negative aspects of conflicts so that parties can create positive aspects. Conflict management entails the need to enhance the group outcomes that include the performance effectiveness in an organization that members can learn from them. 

In ASDA, the CEO is working towards resolving conflicts that may arise because of health disagreements playing a crucial role in a business's success. There can be healthy disagreement among individuals and unnecessary conflicts that may impede employee s' productivity and positive morale. This type of conflict can help an organization reach a resolution and deal with the friction. In the year 2019, an issue arises from the unsatisfied workforce of female employees in ASDA. They filed complaints against the management for getting less pay compared to the male counterparts. There were also issues related to no prevailing opportunities for growth. 

Friesenhahn (2019) points out that the Equal employment opportunity commission (EEOC) issued out memos in public describing the filled complaints of 78 female employees. In the documents, EEOC asked ASDA of women who gave complaints to reach a specific agreement the complaint had an unimpressive record of accomplishment because of gender discrimination. It was based in history wherein year 2001. They filed a lawsuit against ASDA with claims that the retailer is involved with discrimination against 1.6 million female employees because of gender-based discrimination. 

ASDA responds by saying that complaints do not represent millions of women with positive experiences working in this organization to all these issues. There are also complaints that EEOC's findings are not clear. So ASDA CE0 (2019), on Discrimination Claims, indicates a need to support employees working at different levels to resolve all such conflicts. 

Conflict management theory: Conflict management is the process where there has to be identification and handling of conflicts in a fair, sensible, and efficient manner. Conflicts are a part of the business in ASDA different Bond according to a particular type of situation uses conflict management styles. Some of the management styles are mentioned below: 

Collaborating managers: In this leader in ASDA is working towards avoiding the issue. There has to be dealing with the issue by collaborating or pairing up to achieve the style's laid goals. Shamsaii (2019) points out that the managers should free themselves from the win-lose paradigm but instead sought a win-win situation. 

Conflict resolution model: It is a model that is applied in the organization by leaders in ASDA as mentioned below: 

Stage 1: Awareness: the first stage in resolving any conflict, being aware of the perceived differences for new strategies amid this COVID virus. It is related to an assertion that arises when one party attempts to influence others to exercise control over others. 

Stage 2: Self-preparation is the second step in resolving conflict. It involves accessing the available resources. In this, there is a decision made regarding maintaining a resourceful state. There has to be an anticipation of conflict by communicating the required outcomes and then responding to others' positions in the organization. 

Stage 3: Conflict resolution: The third stage of the model is where there is a focus on reducing the emotional energy level and clarifying the differences. It leads to disputing parties to settle all the conflicts and agreeing to eliminate the destructive behaviour, feeling, and negative attitude of employees regarding the prevailing conflicts. 

Stage 4 : Negotiation: Negotiation is a communication process in which each party attempts to influence the other. There is an integrative agreement where all. 

Party’s interest has to be considered. For leaders, this is one of the most crucial stages. It involves identifying the position of different parties, elicit the underlying interest of parties, and further asking related to the position, beliefs, and values observed in such context. 

The CEO of ASDA can apply the above-discussed theory to deal with different types of conflicts that are occurring internally in the organization. Conflict resolution generally occurs in ASDA by finding mutually acceptable solutions that meet both parties' interests. The CEO's main aim is to drive the e-commerce business and market in terms of capital and capacity for fulfilment centres. 

E. various types of motivation used at the chosen firm 

Motivational style : Organizations can use different styles. The five - stage model has the growth as well as the deficiency needs. The top four categories of needs are deficiency, and growth is those of high priority. 

Physiological needs : It is the physical requirement necessary for the survival of an individual. It includes clothing, shelter, food, drink, etc. These needs have to be compulsorily satisfied to enhance the satisfaction level of individuals. 

Safety needs: When physiological needs are satisfied, individuals move towards safety and security needs, people are willing to experience safety security (Jimenez, Valdez, and Fasci, 2017). In ASDA, the CEO uses this aspect to ensure that an individual's emotional and security needs are satisfied, which can enhance their level of motivation. 

Belongingness and love need: After the safety and physiological needs are satisfied, the third level needs involve belongingness and social feelings. That is the need for interpersonal relationships that can motivate an individual behaviour. 

Esteem needs : It is the fourth level need that is part of Maslow's hierarchy in ASDA. This n eed is used for ensuring that employees can develop sufficient self-esteem, a desire for reputation, and respect from others. It generally arises from the formal position that is experienced by employees related to prestige and status. 

Self-actualization needs : It is the topmost level of Maslow's hierarchy that is regarded as realizing an individual's potential and self-fulfilment regarding personal growth. It is the desire to accomplish everything present in an individual. In ASDA, this need is focused on ensuring that employees can work according to their full potential. 

Type of motivation by management in ASDA 

In ASDA, the management is focusing on the use of extrinsic reward technique that is related to motivate their employees by offering them with health care benefits, financial benefits. ASDA also offers their employees to buy stocks at lower and discounts prices so that workers can get additional income depending on the performance of the company (Motivation, 2020). There has been the use of motivation techniques to motivate the employees for enhancing their present contribution level in this situation of COVID 19. 

F. Appropriate corporate examples and literature to justify your stand 

Defining and communicating vision: the inspirational leadership strategy is very suitable for a business organization. It leads to the development of a purpose that drives the vision to achieve essential goals. The main aim is to save people money so that they can live better. It is a statement that has been given by the CEO of ASDA. His strategies involve using prices as a strategy for attracting target customers. Low pricing is a strategy that is determining the need to achieve higher competitiveness. 

RECOMMENDATIONS 

First, the leaders must communicate the vision statement to be imbibed in employees' minds and hearts. The change incorporate vision reflects the strategic Change that ASDA implements concerning the change in a competitive environment and the retail industry's overall conditions. Creating an Omni-channel business strategy to serve the customers to stay relevant with the customers for the coming future period after the post-COVID period will arise. 

The second is the delegate and empowering is one of the best-recommended leadership strategies recommended for ASDA's CEO to ensure responsibility. It will lead to developing a sense of self-worth development of team competence in different ASDA departments. It will also lead to driving the business's e-commerce strategy to build fulfilment centres with a multi-year ASDA plan to deal with high volatility. 

CONCLUSION 

From the aspects mentioned above, leaders in organizations use different leadership approaches according to their needs. There can be several aspects for achieving a laid vision. These aspects include developing an inspirational leadership strategy that reflects the future of ingratiation. Another recommendation is related to the motivational techniques that leaders must use to maximize employee efforts towards such laid objectives. 

References 

Ametorwodufia, M., & Mensah, K. A. 2020.  Management style and retention of nurses in public and private hospitals in Ejisu-Juaben Municipality of Ashanti region, Ghana  (Doctoral dissertation). 

ASDA. 2019. Organizational Structure & Organizational Culture. Available through http://panmore.com/ASDA-organizational-structure-organizational-culture 

time-/articleshow/69016844.cm 

Chumba, J., & Mutinda, B. 2017. Influence of Management Style and Entrepreneurial Culture on the Performance of Family Owned Matatu Businesses in Nairobi, Kenya. Journal of Entrepreneurship & Project management 1 (1), 1-11. 

Doug Bond has been the CEO of ASDA for five years. Here are five lessons he's learned in that time, 2019Available through https://www.businessinsider.in/strategy/doug-Bond- has-been-the-CEO-of 

Friesenhahn, M. J. 2019.  The relationship between Authentic Leadership and Job Satisfaction as Mediated by Conflict Management Style . Our Lady of the Lake University. 

Fayol, H. 2017. Principles of management.  URL: http://www grinders RU/college/ekonomika-firmy/anri-fayol HTML 

Im, Y., Cho, Y., & Kim, D. 2019. Family management style as a mediator between parenting stress and quality of life of children with epilepsy.  Journal of pediatric nursing 45 , e73-e78. 

Jimenez, M. B., Valdez, J., & Fasci, M. 2017. Gharacteristics and management style of Mexican enterprises in the United State.  Innovaciones de Negocios 2 (4). 

Glassdoor.com. 2017.Learn From the Bes : How ASDA Builds Its Corporate Culture. Available through< https://www.glassdoor.com/employers/blog/learn-best-ASDA-builds-corporate- culture/ 

Park, E. M., Miller, K. L., & Knafl, K. A. 2019. Understanding familial response to advanced parental cancer using the family management style framework. Journal of psychosocial oncology 37 (6), 758-776. 

Shamsaii, A. 2019. The relationship between teacher-class management style and students' creativity Providing students with psychological well-being. 

Rodrigues, L. M. G. P., & da Silva, L. F. 2020. Influence of sponsor's management style in project prioritization.  Journal of Industrial Engineering and Management 13 (3), 430-450. 

Yaari, M., Blit-Cohen, E., & Savaya, R. 2020. Management in social enterprises—Management style, challenges, and strategies.  Journal of General Management 46 (1), 36-46. 

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