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    How does the leadership and management background of Morrisons contribute to the development of its competitive advantage?

    How does the leadership and management background of Morrisons contribute to the development of its competitive advantage?

    • 3 March 2024
    • - 8516 Comments

    Title: Leveraging Leadership and Management for Competitive Advantage: A Case Study of Morrisons

    About:

    Leadership and management are pivotal elements in steering the course of a company towards success and sustaining its competitive edge in the dynamic market landscape. In the case of Morrisons, a renowned British supermarket chain, the fusion of astute leadership and effective management practices has been instrumental in shaping its competitive advantage. By employing strategic foresight, fostering innovation, and prioritizing customer-centric approaches, Morrisons has cemented its position in the highly competitive retail sector. This essay delves into how the leadership and management background of Morrisons contribute significantly to the development and perpetuation of its competitive advantage.

    Executive Summary

    Developing a competitive advantage is particularly dependent on the leadership and management departments of a corporate organization. In this instance, the management history and leadership of Morrisons, the organization under evaluation, have been critically examined by the research. In addition to the literature management assessment, the study has concentrated on issues such as staff performance, motivational features, and organizational culture. In order to infer believable conclusions for the company chosen for this study, the entire discussion has been done utilizing literary and theoretical assumptions.

    Introduction

    The study aims to critically evaluate the impact of organizational leadership and management on business performance, as well as their role in motivating employees and shaping organizational culture. Specifically, the focus is on analyzing the leadership and management practices within Morrisons, a leading supermarket chain in the UK. By examining theoretical frameworks and strategic implications, the study will identify key factors influencing organizational culture and offer relevant recommendations for improvement.

    Organizational and management framework of the business

    Here’s the rewritten passage:

    Morrisons’ Management and Structure: A Blend of Centralized and Decentralized Approaches

    This passage examines the management system and organizational structure of Morrisons, a major supermarket chain. It highlights how both elements work together to influence employee performance and overall organizational efficiency.

    Balancing Functional and Strategic Concerns:

    The passage begins by emphasizing the critical role of management structure in balancing functional operations with strategic objectives. It references research by Nani and Safitri (2021) on the importance of managerial systems in integrating operational functions within businesses.

    Morrisons’ Unique Approach:

    The passage then delves into Morrisons’ specific management structure. It mentions the company’s “Executive Committee Management Succession (ECMS)” program, designed for managing its “sniper retail operations” (Morrisons-corporate.com, 2021). This suggests a centralized approach to leadership development.

    Decentralized Decision-Making at Store Level:

    The passage further explains that Morrisons’ structure also incorporates decentralized elements. It identifies “store managers” and “people managers” as key figures responsible for decision-making within individual stores. This suggests a degree of autonomy granted to local management.

    Decision-Making in a Public Company:

    The passage connects the structure to Morrisons’ status as a public company. It mentions that major decisions are made by the “corporate service team,” reflecting a centralized approach aligned with public company governance requirements (Morrisons-corporate.com, 2021).

    Hierarchical Structure with a Collaborative Twist:

    The passage describes the overall structure as a “hierarchy of decision-making” with a “copter work culture.” This suggests a balance between hierarchical order and collaborative work practices.

    Leadership and Employee Performance:

    The passage concludes by emphasizing the importance of cohesive leadership within Morrisons’ public supply chain. This implies that strong leadership plays a crucial role in driving employee performance within the company’s unique structural framework.

    In summary, the section gives a clear picture of how Morrisons’ organizational structure and management system interact. In order to provide a hybrid approach that is particular to the demands of the organization and its public-based supply chain, it highlights both centralized and decentralized features.

    Defining the leadership and managerial responsibilities and outlining their primary distinctions

    Figure 1: Managerial Roles (Source: Inspired by Ojogiwa, 2021)

    A managerial role within a business organization involves planning, organizing, strategizing, and problem-solving by critically assessing existing operational functions. According to Ojo Giwa (2021), managers have varying levels of responsibilities in decision-making, interpersonal interactions, and information management.

    At Morrison’s, their management structure, particularly in their ECMS (Enterprise Content Management System), aligns with the corporate level of management. This involves roles such as overseeing company operations, assessing supply chains, managing employee engagement, and handling customer interactions (Morrisons-corporate.com, 2021).

    Decision-making is integral to Morrison’s management system, given its hierarchical structure. Managers act as spokespersons for the system, making decisions based on negotiable and accessible situations. This approach ensures effective coordination and alignment with the company’s goals and objectives.

    Figure 2: Leadership Roles (Source: Adopted from Seidel et al. 2019)

    Conversely, in terms of leadership roles, businesses prioritize development that includes guidance and evaluation of leadership. Seidel et al. (2019) note that the leadership team plays a crucial role in shaping the work culture to be more sustainable and conducive to employee performance and perception. Common leadership roles in businesses include executives, people management, operational performance assessment, and senior decision-making, all of which contribute to organizational development. For instance, large companies like Morrisons place leadership involvement in retail, manufacturing, and logistics decision-making processes (Morrisons-corporate.com, 2021). External hiring processes are often used to systematically recruit talent, with leadership positions such as Chief Customer and Marketing Officers directly influencing these efforts.

    Application of various leadership and management responsibilities in many organizational contexts through the use of theories and techniques

    Improving operational performance through employee engagement is a crucial goal for organizations like Morrisons. By leveraging various managerial and leadership roles alongside theoretical frameworks, Morrisons can make significant strides in this direction. One such implication is aligning functional goals with leadership and managerial advancements to enhance workforce performance, as suggested by You et al. (2019). This approach emphasizes the importance of effective leadership and management practices in driving organizational development. By adopting theories such as transformational leadership, servant leadership, or situational leadership, Morrisons can tailor their leadership styles to suit different operational contexts and employee needs. Additionally, integrating theories like Maslow’s hierarchy of needs or Herzberg’s two-factor theory into their management approach can help Morrisons understand and address the underlying motivators and satisfiers that influence employee engagement and performance. Overall, by combining practical managerial strategies with theoretical insights, Morrisons can create a conducive environment for employee engagement and ultimately improve operational performance.

    Managing organizational culture increases employee engagement

    Organizational management systems encompass various activities such as staff training, organization, monitoring, and implementing change, all of which have strategic implications for employee motivation. Roscoe et al. (2019) suggest that a traditional approach to motivating employees involves addressing pain points within the company and recognizing employee performance. In this context, Morrisons could apply Handy’s theoretical model of managing organizational culture to enhance employee engagement by centralizing employees around the company’s culture. This approach could help foster a sense of belonging and alignment with the company’s values, ultimately boosting motivation among employees.

    Figure 3: Handy’s Model of Organizational Culture Management
    (Source: Inspired by Sharman et al. 2020)

    The figure above highlights four distinct management styles associated with person, task, roles, and power-based cultures, which are functional values that foster expectancy among employees in an engaging workforce. According to Sharman et al. (2020), adapting organizational functions to meet the needs of employees can create an environment where employees thrive. By employing a Human Relations Approach, Morrisons, for instance, can align company goals with employee engagement, thereby increasing motivation.

    However, implementing such changes in managerial systems can be challenging amid ongoing operations (Attaran, 2020). Nonetheless, adopting the suggested framework can facilitate transformational change within the company, impacting its supermarket chain positively. By adjusting formal protocols related to employee and operation management, organizational culture can become more adaptable to situational needs, thereby enhancing overall performance.

    Providing directional guidance through strategic evaluation

    Leadership functions are crucial within business organizations, as they directly contribute to organizational development and goal attainment. According to Pellegrini et al. (2020), effective leadership involves setting clear directions and guiding the organization towards its long-term objectives. Leaders play a vital role in this process by providing direction, making decisions, and ensuring that basic business activities such as control, organization, and planning are carried out effectively.

    Morrison can adopt a transactional leadership approach, which focuses on managing day-to-day operations and implementing short-term and long-term plans through decision-making. This style of leadership emphasizes setting clear expectations, providing rewards for performance, and intervening when necessary to address issues or deviations from established goals. By following this approach, Morrison can effectively lead the organization towards achieving its objectives and driving organizational development.

    Figure 4: Transactional Leadership Theory
    (Source: Adopted from Rožman, M., and Štrukelj et al. 2021)

    According to the diagram, active leadership involvement in short-term initiatives, maintaining organizational status, managing expectations, and providing extrinsic motivation can enhance long-term assessment goals in business. Rožman, M., and Štrukelj et al. (2021) suggest that employees play a crucial role in managing individual perceptions in exchange for rewards. Therefore, Morrisons can benefit from managing employee perceptions by focusing on long-term advancement to improve organizational growth and efficiency.

    Transactional leadership emphasizes completing tasks efficiently, which may sometimes overshadow other considerations (Folkman et al., 2019). To address this, Morrisons should conduct a comprehensive evaluation of both internal and external functions to formulate effective long-term assessment plans. By integrating both management and leadership functions, Morrisons can enhance its business processes and achieve sustainable growth.

    Applying Scientific Management and Transformational Leadership for Organizational Growth

    Scientific Management Theory

    Improving employee performance by simply imposing work conditions and encouraging hard work has proven to be ineffective in enhancing organizational performance levels. Taylor’s Scientific Management Theory proposed job simplification and addressing employee pain points as a more efficient approach. This strategic method has been recognized as crucial in increasing workforce motivation and performance levels. In line with this, Morrisons, with its existing supply chain across the UK, has already developed strategies for expansion, necessitating further enhancements in employee performance. Therefore, implementing the scientific approach based on this theoretical framework can be beneficial for the company.

    Figure 5: Scientific Management Theory
    (Source: Inspired by Wiig and Fahlbruch, 2019)

    According to the figure provided, Taylor’s scientific approach to management does not specifically address improving employee morale by removing critical work prospects. Instead, it emphasizes breaking tasks down, offering additional compensation, and increasing efficiency to boost employee performance. Wiig and Fahlbruch (2019) suggest that a key managerial goal is to eliminate obstacles through systematic monitoring and evaluation.

    Applying this model to Morrison’s, the company could streamline store and logistics tasks to engage employees through simplification. This could involve identifying core issues faced by employees through systematic interviews and then planning to simplify processes to address those pain points. However, in large organizations like Morrison’s, different employee groups may have varied issues, making it challenging to implement a single change. In such cases, the company could prioritize addressing the most common feedback and then assess operational management to resolve issues for a larger portion of the workforce.


    Transformational Leadership Theory

    Organizational leadership plays a critical role in guiding employees toward achieving their goals and driving organizational progress through systematic enhancements. Morrisons, for instance, employs stakeholder assessment as a basis for its leadership functions, focusing on key approaches such as “customer first,” “teamwork,” “freedom within the framework,” and “listening & responding” (Morrisons-corporate.com, 2023). Asbari (2020) suggests that transformational leadership fosters agility in organizational decision-making by aligning the perceptions of leaders and employees. In this context, enhancing workforce motivation and encouragement through adequate evaluation could be a viable strategy for improvement. Burns’ Transformational Leadership Theory could be employed for further assessment and implementation.

    Figure 6: Transformational Leadership Theory
    (Source: Inspired by Eliyana and Ma’arif, 2019)

    Based on the above diagram, the transformational leadership approach places emphasis on inspiring and idealizing individuals within the organization. Ileana and Ma’arif (2019) suggest that leaders and followers establish a strong bond, fostering high morale and motivation. Morrisons, for instance, adopts this approach to enhance employee engagement by fostering direct communication. To achieve this, implementing an annual recognition and evaluation program can facilitate direct interaction between leaders and employees, boosting inspiration and motivation. However, in the face of a dynamic external environment, maintaining a singular operational strategy may prove challenging due to diverse workforce perspectives (Reza, 2019). Therefore, it is crucial to continuously adapt operational policies to foster a transformative environment that motivates and empowers employees.

    Assessing the factors that influence organizational culture

    Organizational culture refers to the shared beliefs, values, and attitudes embraced by a company, which in turn shape the behavior of its employees. According to Tran (2021), differences in organizational culture are common, and various factors related to leadership and management practices directly influence this aspect. For example, within Morrisons, certain management and leadership factors can significantly impact the company’s organizational culture.

    The organizational structure of Morrisons, a supermarket chain, plays a crucial role in shaping its organizational culture. According to Roscoe et al. (2019), the structure defines the system and processes within the workplace, which in turn influence the shared vision among employees.

    Morrisons has a structured division of managers, supervisors, ground staff, and logistics partners, reflecting a diverse organizational structure (Morrisons.jobs, 2023). This diversity impacts various aspects of the organization, including decision-making, working relationships, and individual capabilities, as different departments compete and collaborate within the hierarchy.

    By evaluating its cultural perspective, Morrisons can leverage its collaborative and integrated organizational structure to gain a competitive advantage. This structure fosters teamwork, communication, and alignment of goals across departments, ultimately driving organizational success.

    Leadership principles play a crucial role in shaping organizational culture by guiding decision-making and fostering long-term change. According to Carvalho et al. (2019), these principles help reinforce organizational values, set goals, and provide recognition to employees. For example, Morrisons has implemented leadership principles that prioritize stakeholders such as customers, colleagues, suppliers, shareholders, the environment, and the community (Morrisons.jobs, 2023). By incorporating sustainable and ethical values into their policies and practices, Morrisons has positively impacted their reputation and gained a competitive advantage in the market. This commitment to sustainability and ethics is evident in their eco-friendly value chain initiatives.

    Creating motivational tactics to improve the functioning of an organization Identifying the needs of the employees

    How does the leadership and management background of Morrisons contribute to the development of its competitive advantage?
    Figure 7: Maslow’s Need Pyramid (Source: Inspired by Khan et al. 2022)

    Organizational employee needs assessment is a commonly used and effective motivational strategy employed by businesses, and it could be suitable for implementation at Morrisons as well. According to Rehman Khan et al. (2022), understanding the individual needs of employees helps organizations recognize their value and ultimately foster their engagement. These needs may include those outlined in Maslow’s Hierarchy of Needs theory, such as psychological, safety, belonging, esteem, and self-actualization needs. Morrison could conduct such assessments through interviews or other methods to identify and address these needs among its employees.

    Facilitating a constructive workplace culture

    A competitive workplace can indeed drive employee performance, but it’s equally important to maintain a positive work environment to enhance motivation and overall productivity. According to Knight et al. (2019), the work environment significantly influences the mental and emotional state of employees, underscoring the need for a positive atmosphere. Companies can achieve this by implementing sustainable policies, as exemplified by Morrisons’ ESG (Environmental, Social, and Governance) policy, which focuses on community development and ethical resilience (Morrisons-corporate.com, 2021). By strategically intervening to foster a positive work environment, Morrisons can boost employee motivation and ultimately enhance organizational performance. Therefore, implementing leadership and managerial strategies aimed at creating a supportive and uplifting workplace environment can be instrumental in driving success for the company.

    Conclusion

    The study concludes that leadership and managerial functions at Morrisons directly impact organizational performance, culture, and decision-making. The company’s leadership principles drive changes in performance and reputation, contributing to sustainable workplace development. However, with increasing competition in the global supermarket industry, company leaders are fostering an open culture to introduce new policies for enhancing organizational performance. Motivational strategies, particularly those focusing on organizational culture and performance enhancement, are recommended for evaluation by the company.

    Recommendations

    Implications for conflict management

    Conflict management plays a crucial role in enhancing the operational effectiveness of an organization, with leadership playing a key role in this process. According to Roscoe et al. (2019), effective leaders provide guidance and direction in resolving conflicts, which is a common characteristic of effective leadership. Therefore, the leadership team at Morrisons can contribute significantly to the resolution of conflicts among employees by ensuring that fair and ethical methods are employed. By doing so, the organization can improve its overall performance by fostering a culture of equality and fairness in its workforce. This approach can lead to the implementation of sustainable policies for managing equality within the organization, ultimately contributing to its success.

    Diversity and inclusion in an ethical approach

    Morrisons can leverage inclusion and diversification to foster a sustainable business environment and engage its workforce effectively. Employee attrition is a common challenge, but Morrisons can address it by implementing standard protocols for employee validation, as suggested by Gomez and Bernet (2019). By focusing on diversity beyond just language, Morrisons can promote an ethical approach by embracing various cultural and traditional backgrounds within its workforce.

    To implement this suggestion, Morrisons can establish a workplace monitoring system designed to prevent discriminatory actions. This proactive approach can enhance employee perception and increase the likelihood of employee retention. Overall, by prioritizing inclusion and diversification, Morrisons can create a more cohesive and supportive work environment for its employees.

    References

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    • Rehman Khan, S. A., Yu, Z., Sarwat, S., Godil, D. I., Amin, S., and Shujaat, S. (2022). The Role of Blockchain Technology in Circular Economy Practices to Improve Organizational Performance. International Journal of Logistics Research and Applications, 25(4-5), 605-622.
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