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Organizational Structure of Marks & Spencer

University: Regent College London

  • Unit No: 4
  • Level: Diploma
  • Pages: 19 / Words 4790
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 87
Organization Selected : Marks & Spencer

INTRODUCTION

Operations management refers to business practices to manage a higher level of efficiency and effectiveness within an enterprise. It includes planning, designing, organizing, and controlling the process of manufacturing products and services in an organization for increasing productivity and profitability (Jacobs, Chase, and Lummus, 2014). It is also concerned with reforming business operations for providing better results to achieve a competitive position in the market. The current study is supported by Marks & Spencer which is a public limited British retailer headquartered in Westminster, London. It was founded by Michael Marks and Thomas Spencer. It deals in clothing, luxury food products, and home products to its potential and target customers. This project includes differences between leaders and managers along with their roles and characteristics in different managerial situations.

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TASK 1

Introduction of Marks and Spencer and its organizational structure

Marks and Spencer is a United Kingdom based company in Retail industry, it is listed on London Stock Exchange. Company provides wide range of products and services to its potential consumers for satisfying their needs and demand. It offers clothing for men, women, children and newborns, it also provides home care & decor products and food items. M&S is also indulging in social work like it distribute returned cloths and on Christmas it gives food items to charitable trust for helping unprivileged individuals. Marks and Spencer use flat organizational structure as it has limited management levels among administration and front-line staff.

2. Difference between leaders and managers

Leaders and managers play important role in operations management. As they take various decisions and actions for achieving organizational goals. Managers ensures that all tasks are achieved in an efficient manner by developing strategies to get desired results. Leaders implements strategies made by managers and influence employees for performing their duties and responsibilities and motivate them by offering benefits and investors for successfully attaining objectives (Rajan and et. al., 2012).

Leaders: These persons hold superior position in an organization as they have expertise in their field. They manage group of people, influence them and exercise control on them. Leaders give directions to their followers for performing task effectively to enhance productivity and profitability. They motivate subordinates as it increases level of efforts for achieving desired output.

Managers: Managers are the person who perform different task like planning, organizing, starring and controlling to manage their special departmental tasks. There are number of managers in a company depending upon size of organization. They are responsible for task and performance of employees and have staff who reports to them (Galloway, Rowbotham and Azhashemi, 2012).

Marks and Spencer requires leaders and managers, having various roles and characteristics which they execute accordingly. The following are some differences of leaders and managers on basis of their roles and characteristics:

Basis

Leaders

Managers

Meaning

  • Leaders are the person who influence their subordinates. For example, leader may encourage workers to perform well at workplace to attain set goals and objectives. This will help in enhancing overall performance.
  • They are responsible for managing the organization by planning, direction, coordinating and controlling. In this manager ensure that all the activities and task of the employees should be done in systematic manner.

Purpose

  • They facilitate decisions and set directions for their followers. Leader is responsible for including their team members in every decision making process so that they can easily get their innovative ideas and views for taking right decision.
  • They make decisions and plan details for their employees. In this manager set all the activities as per employees skills and abilities that help them in performing best.

Aim

  • Aim of leaders in Marks and Spencer is to provide growth and development to subordinates.
  • Managers are aims towards accomplishment of desired results.

Role

  • Leaders lead and motivates peoples for achieving goals and objectives. For this leader use effective leadership style like democratic to motivate and encourage workers at workplace.
  • Role of manager in Marks and Spencer is to hire and fire candidates for vacant job vacancies. For example, manager can easily hire employee as per vacant place within the organization.

3. Managerial functions and leadership roles

Managers and leaders have different roles and functions for fulfilling their task and duties in an effective manner. Functions of managers are described by Henri Fayol are as follows:

  • Planning: According to Fayol creating a good plan of action is very hard and important for organization. It needs active and equal participation of all employees. It helps managers in drafting road-map for achievement of goals and objectives of company (Five functions of management (Fayol), 2018).
  • Organizing: After planning, managers organize their employees, capital and materials as per their plan of action. By performing this function manager creates organizational structure which helps in division of task and functions.
  • Commanding: Managers gives order and instructions to employees which are required for performing task and duties. By this they become capable for motivating and encouraging initiatives of employees.
  • Coordinating: This will in harmonized all activities for smooth functioning in organization. Good coordination among employees creates positive behavior in management for achieving objectives.
  • Controlling: This ensures that everything is going according to plan and it control the activities by estimating standards for performance on basis of business goals. Measures actual performance with standards, compare results and take corrective actions.

In M&s while launching a new product and services leaders and managers plan by evaluating opportunities in market to launch a new product and then organize potential resources and mechanisms to effectively launch product. After that leaders and managers command its subordinates and distributes their work and responsibilities according to their roles and responsibilities. Moreover it coordinate all subordinates and their activities then control and evaluate results and then reform in it.

Leaders’ role is to influence and motivate employees to do their jobs by describing vision for achieving output. The following are major roles of a leader in an organization:

  • Motivating employees: This role of leader includes finding out needs and desire of employees, providing what they want and acknowledge their good work. Good leaders communicate well to know their needs, and this motivates individuals to perform well.
  • Guiding employees: Leaders guide their followers by defining roles and responsibilities and providing them necessary tools and material which are needed for performing duties with full efforts.
  • Building morale: It involves efforts that all employees put together for achieving common objectives. They let employees know that how much their efforts for work is acknowledge (Swink and et. al., 2017).

In that scenario when M&s launches a new product into the market for accepting changes and bring innovation in company there is need to motivate employees so that they contribute their best to organization. While launching a new product managers and leaders have to guide their employees about upcoming changes and trends so they ready according to circumstances. In that situation leaders have to build morale so that they Specify and comparison between various roles and characteristics of a leader and a manager. ready to adopt changes and happily give their best in accomplish goals.

4. Managers and leaders in different situations

Leaders and managers react differently in different situations to solve them. Marks and Spencer is a large company so they also have to face various situations and managers and leaders act accordingly to make smart decisions related to organization. In different situations like decision making, employee engagement and conflict resolution etc. These situations are explained below:

Employee engagement: It describes efforts of both organization and employee to create and manage relationship with each other. It includes providing right working conditions and environment to all staff members for motivating them to help in organizational success by achieving objectives (Hajmohammad and et. al., 2013). Managers of Marks and Spencer create a culture of engagement and provide clear guidelines and directions to employees. They find better ways to recognize and acknowledge good work of subordinates and provides challenging opportunities to employees in which they can use their skills, knowledge and expertise. Engaged employees are highly loyal towards their enterprise and they are more productive and profitable as they work with full enthusiasm. Leaders provide necessary or required training and development opportunity to employees for increasing their efficiency, so they can be more engaged towards their work.

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Management Structure of Marks and Spencer

Conflict resolution: Conflict arises when all parties have different views & opinions and do not agree with other individuals. Marks and Spencer being a large organization faces conflict among employees. Managers of company plays vital role in solving these issues as they investigate reason by talking to them, meet employees who are involved in conflict and communicate with all individuals, in last coming to a mutual decision. Leaders also have important role in conflict management as they are trained in managing this kind of situations. They come with unique and innovative solutions to their problems. They develop different training and development program for enhancing skills and maintaining cultural difference among staff. As all employees have different cultural backgrounds.

5. Management and leadership theories

Actions of leaders and managers are influenced by some theories as these helps them to do multiple activities to achieve goals and objectives.

Situational leadership theory: This concept was developed by Paul Hersey and Ken Blanchard (Gunasekaran and Irani, 2014). According to this theory best leadership style depends upon current situations. Effective leaders of Marks and Spencer adopt their style as per the need of situation. It categorized leadership styles into 4 behavior types described below:

  • Telling: In this style leader tells their manager about what they need to do by making decision in order to maintain growth of organization.
  • Selling: Leaders communicate their ideas and views to other members of group.
  • Participating: In this style leaders allow employees to participate in making decision and welcome their innovative ideas.
  • Delegating: Leaders are less involved in decision making process as they delegate all responsibility to members of team and oversees work.

Example of situational leadership consist of taking decisions according to the situation sometimes many types of conflicts arise in organization in that situation leader have to take the appropriate step and according to change its previous actions and according to demand of time they have to mold their decisions.

Systems leadership theory: This theory allows leaders to create conditions under which employees can perform their duties productively with full potential. In Marks and Spencer, it promotes innovation and promotes creativity in organization, encourage subordinates to think in a different way for approaching to a task. This kind of leadership focuses on welfare of employees by providing them growth and development opportunity. It will provide sustainability development in Marks and Spencer as leaders follow vision and plan all their actions and resources accordingly to achieve them.

Contingency leadership theory: It explains that there is no leadership style which is best suitable for an structure. Decisions taken by leaders of Marks and Spencer are dependent on various external and internal environmental situations. Nature of leader is also involved in decision making, one leader can be task oriented by quality and another is relationship oriented in nature. Task oriented leader are only concerned for competition of task and this results in high productivity. Relationship oriented leaders are focused on employee relations, it results in high team spirit and enhance organizational communication. Thus, overall it results in increasing sustainability and development in organization (Ivanov, Tsipoulanidis and Schönberger, 2017).

Transformational leadership: This model of leadership was introduced by James V.Downton in 1973. It is a type of leadership, where leader use to motivate, encourage, and inspire their employees, so that they can introduce some changes in their organization. This also help employees to work better in order to achieve organizational goals and also help them in achieving personal goals.

6. Strengths and weaknesses of leadership theories

The following represents strengths and weaknesses of leadership theories which are described below:

Leadership Theory

Strengths

Weaknesses

Situational leadership theory

It recognizes need for flexible working environment in Marks and Spencer, as in there are not specified rules and regulations.

It focuses on immediate requirements rather than focusing on long-term objectives.

Systems leadership theory

It provides leaders to Marks and Spencer who focuses on long-term vision of company and their strategies helps in achieving them.

This theory is not popular and widely accepted as it is lengthy by nature and complicated.

Contingency leadership theory

This approach increases productivity and develop work culture in Marks and Spencer.

Determination of situation is very complex as it involves various managerial actions.

These theories will help Marks and Spencer in increasing quality of work as Situation leadership provides motivating and supportive environment for work hence it upgrades productivity and efficiency. System leadership encourages innovation and promote creativity among employees for providing sustainability in organization. Contingency approach ensures efforts of employees to increase performance (Hill and Hill, 2017).

7. Impact of managers and leaders on Organization

Leaders and managers in Marks and Spencer helps in achieving goals and objectives of organization. They both perform their roles and functions to influence and motivate employees to perform their duties in an effective and efficient manner which can increase productivity and profitability of company. Managers and Leaders analyses all perspective related to future growth of company and help company to make sustainable development and growth. Choose the best teaching assistant level 2 coursework help for students at the best price.

TASK 2

1. Key approaches of operations management

The following are some key approaches which are adopted by organizations:

Just in time inventory: This approach helps Marks and Spencer in enhancing efficiency and reducing wastage by receiving goods and material when they are needed, hence it reduces inventory cost. This approach in operations management reduces storage space of company because products are stock at time of usage. It needs less investment in inventory as ordering gods all the time needs higher investment in inventory. It decreases the wastage as goods are ordered by company when need arises (Jones and Robinson, 2012).

Six sigma: This approach is data driven and eradicates defects in process of converting unprocessed into processed products. In case of operation management of Marks and Spencer it attains maximum consumer satisfaction as it reduces defects, improve return on investment and sales, improves manufacturing processes, Growth in stock value, realize employment growth and identify errors in production processes. It focuses on continues improvement in organization.

Lean production: It is defined as systematic approach which eliminates wastage in manufacturing system. Implementation of this process helps operations management of Marks and Spencer by improving product quality and visual management, enhance efficiency in process of manufacturing, reduce manpower, provides easy management in entire production procedure. In this, entire organization removes problem of enterprise, provides safe working place and increase moral of staff (Gunasekaran and Ngai, 2012).

2. Roles and responsibility of Managers and leaders

Leaders and managers of Marks and Spencer have following roles and duties in above mention key approaches of operations management:

Approaches

Role of leader

Role of manger

Just in time inventory

They ensure that goods are utilized in productive way.

Leaders of Marks and Spencer make sure all staff are alert of roles and responsibilities in process.

To place order to suppliers at needed time.

To maintain healthy relation with suppliers.

Six sigma

They invest in training and resources of six sigma.

Identify and support in employee participation.

They give reviews and support to subordinates and top management.

Monitor and implement six sigma approaches in company.

Lean production

They assist employees to realize responsibility in this process.

Give directions to enhance production.

They analyze effectiveness of goods.

They report progress to upper level management.

3. Importance and value of operations management

Operations management consider designing, planning and controlling process of manufacturing and redesigning dealing of enterprise. In context of this, the main objective of Marks and Spencer is to increase market share from 10%. For this company needs to effectively implement operational activities which may contribute in attaining set goals and objectives in effective manner. The importance of key approaches to operations management in successful achievement of business objectives of Marks and Spencer are as follows:

Distribution and Controlling system: This is very vital for Marks and Spencer in operations management as it is accountable for controlling manufacturing procedure and confirm effective distribution of goods to achieve goals of company (Brown and Bessant, 2013). If accomplishes the main objective of appropriate utilization of rare resources. This system is focused on control and distribution of resources to reduce wastage of resources.

Enhance productivity: Management operations design production processes which is an important function. It achieves organization goals by designing products and service as per needs and demand of customers. Efficiency in manufacturing process helps enterprise to attain productivity by utilization of resources for producing products.

Inventory management: This is very valuable in an organization as without proper inventory level, a company is not able to fulfill demands of its potential customers. Good level of inventory helps in maintaining supply of goods and services in market at right time (Panneerselvam, 2012).

Thus, operations management helps in various ways to achieve organizational objectives. Proper utilization of available and required resources, managing level of inventory and designing process for producing goods as per needed capacity, all these creates value and are important for attaining goals.

4. Effectiveness of leaders and managers in improving operational efficiency

Managers of Marks and Spencer can improve efficiency of operations for achieving business goals by different ways. The following are some ways by which they can make improvements:

Effective communication with consumers: Managers can identify expectations and desires of customers by communicating with them about product and its design. This can be identifying purchasing behavior of customers and their motives and this will help company in increasing efficiency of management operations. This will also build good and healthy relationship with consumers. For example, manager of Marks and Spencer communicate with their customers with the purpose of understanding their necessity and wants. With the assist of this, organization can easily gain their profitability level at marketplace.

Increasing motivation: This will increase efficiency by providing incentives and benefits to employees to motivate them because motivated staff work efficiently with their full potential to attain business targets. It also enhances productivity of management operations as individuals are more motivated towards their job. For example, manager of the company is responsible for managing workers activities to motivate them and at the same time leader also motivate and encourage employees perform their best. It may directly contribute in making workforce strong and effective as well.

Improving team work: For increasing efficiency, collaboration among team members improves understanding and creates good working environment. It improves efficiency as it creates co-ordination in organization and beneficial for in developing processes related to communication and manufacturing (Matthews and Marzec, 2012). In addition of this, team working is play as an important role in executing as well as implementing entire activities in effective manner. With the help of this, Marks and Spencer can well attain particular and common goals. For example, manager is responsible for building effective team to perform specific and particular task. In this, leader play vital role in motivating as well as encouraging workers so that they can easily execute their task in appropriate manner and attain particular objectives.

5. Impact of external environment factors on operation management decision

Business environment of every organization is struck by external factors that impact dealing of concern and its decision making. Administration needs to identify impact of these factors so that it can adopt scheme and policies that can minimize negative impacts of these factors. The following are some external factors that have impact on operations management of Marks and Spencer:

Political factor: These factors includes intervention of government in economy. It includes political stability, industrial safety regulations, taxation policy, environmental law and trade restrictions (Oakland, 2014). In context to Marks and Spencer this factor impacts their operations like due to free trade policies they are benefited by reduction in sourcing of raw material cost. Brexit also has substantial implications for their business as after Brexit UK government launches various policies to help businesses. Change in taxation and government policies.

Economic factors: These factors identify economic environment by analyzing factors of macro economy like economic growth, interest rate, inflation rate, employment and unemployment rate, exchange rate etc. All these factors in Marks and Spencer impact operations of management like after Brexit company was having some conflict issues with retailers over increase in price because of currency impact.

Social factors: this kind of factors study social environment of country. It includes cultural trends, educational level, demographics, rate of population growth etc. For Marks and Spencer, it can make impact if target customers have changed their demands and preferences for their products. These factors will influence company to introduce new product line or to cut down product line.

Technological factors: These factors involve any change in technology that can have impact on business of an organization favorably or unfavorably. In context to Marks and Spencer, technology partnership with other company will increase their security and competitive advantage and this will have positive impact on operations of enterprise.

Corporate social responsibility is an internal business model, which are used by organization to deliver some benefits to their stakeholders and other in economically or socially. Here, leaders use to make strategies for some betterment in society and manager have to implement it in such a manner that it can meet to success. For example, leader in an organization think to provide food for poor children, then manager have to find answers of some questions like where to donate, how to donate, and what to donate. After it details will get explained to leader and then they will provide required fund for it. Same as for stakeholders like customer, leader is thinking to provide some gift like a holiday tours, then manager will work to find some places and quotations. Then all he details will get explained to leaders so that leader can final the gift package and also select the method by which the gift will get provided to their customers.

6. Application of operations management to manage the factors that impact on the wider business environment

Management operations helps Marks and spencer to manage the impact of above mention factors, so that they work efficiently to achieve business goals and objectives. Company can manage impact of these factors on business environment by using key approaches like lean production, just in time inventory and six sigma. These will help business to maintain enough inventory level so that in case of non-availability of products by suppliers, they can manage to provide services to their target customers. It helps in reducing defects and errors from production process of goods and services to manage social factors of external environment. Six sigma focuses towards training and development for new technology to manage impact of technological factors (Rajan and et. al., 2012).

The stakeholders of company and their relationship described below:

Customers- They are king of market to whom good and products are supplied. Such stakeholder are important person for any organization. They are individual who increase profit of entity. Thus, enterprise should fulfills their need and demand.

Competitors- In order to survive in market, products should be different from competitors. They have strong relationship with company as they influence customer.

7. Conclusion and recommendations for future

Management operations plays an important role in every organization to attain business objectives. Marks and Spencer should strengthen their operational processes for producing goods and services. They should analyze every aspect of external environment so that they can minimize negative impact of these factors on time. Managing them in an efficient way will provide competitive advantage to company, this will benefit them to be competitive in market place. Improvement in production process by using innovative and effective technology for producing goods at lower cost which can improve productivity and profitability.

CONCLUSION

It is concluded from the above report that operations management plays a vital role in a company and helps in achieving goals and objectives of organization. Leaders and managers both have different roles and characteristics which helps them to perform their tasks. They act differently in various situations to solve them as per their functions and roles. Operations management helps in optimum utilization of resources, maximization of profit and by enhancing productivity etc. It also explains various external environment factors, like political, economic, social and legal, which impacts operational decisions of managers and leaders. It also includes some formulation for operations management such as lead production, just in time and six sigma which assist in achieving efficiency and productivity in production process.

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