Introduction
Marks and Spencer, abbreviated as M&S, is a multinational retailer in the UK that focuses on selling clothes, food, and home products. The company is headquartered in London and was founded by Michael Marks and Thomas Spencer in 1884. It has 1059 stores in the United Kingdom and other 452 worldwide (Mark & Spencer, 2022). This report applies and demonstrates understanding and knowledge of managerial disciplines to assess Mark and Spencer as a high street retailer. The paper provides insight into different contexts, such as organizational structure, performance management, knowledge management, and ethical practices of the organization.
Type of Organizational Structure, Roles, and Structural Relationship
The company follows a flat organizational structure to accomplish its objectives and goals. This form of structure relates to a leadership style with no hierarchy and may be defined as a type that forms the least management level between employees and their managers (Choudhary & Piparo, 2020). This indicates that management levels are limited between the administration and front-line workers. Employees at the company are privileged to perform individual activities based on their means and be involved in making significant decisions in the company. The employees have more responsibilities while conducting their tasks in the different situations the company experiences. The structure relates to higher employee autonomy and significantly decentralized processes. M&S’s organizational structure has been more beneficial in fostering innovation, creativity, and faster decision-making. The workforce wills have more confidence while doing their work while still maintaining high responsibilities as they have to be accountable for their actions to the manager later.
Previously the company followed a hierarchical structure, but in the past five years, the structure was redefined to become flatter as a result of higher competition experienced in the retail industry in the country. This structure type would help the company to offer higher-quality customer services hence improving its markets (Taylor, 2019). The company’s experiencing delays additionally prompted the decision for this structure due to a loss of a number of its company’s authority levels.
Suggestions for Alternative Structure
A different organizational structure that Mark and Spencer would consider using is the matrix organizational structure. It is named so due to its reporting relationship, which resembles a matrix, unlike a typical hierarchy. It is a cross-collaborative effort that helps the company places the right employees into the right team (Samimi & Sydow, 2021). It involves a combination of two or more organizational structures, such as functional management and project management. Generally, the workforce is divided into various departments but may work with other teams to perform specific projects.
This structure will be particularly useful to Marks and Spencer as it operates at a highly competitive and dynamic retail market that necessitates adapting to changing customers’ preferences and needs. The Matrix structure promotes flexibility and collaboration, enabling the company to respond to industry changes (Otoom et al., 2019). It improves communication between departments as the employees can move freely between their signed units and share valuable knowledge and information in their teams. Matrix structure enables easier sharing of resources in the different divisions, especially those related to high skill. This results in fewer boundaries between the teams and fewer silos, promoting higher levels of integration. Employee development is encouraged as they are exposed to multiple projects instead of being confined to specific departments. These results in a diverse approach to creativity and thinking to be developed within the organization. Each team member gains valuable experience, unlike traditional boundaries, and enhances their professional skills.
Internal Factors Affecting Marks and Spencer
The physical layout is a significant internal factor that affects the company. M&S operates in over 28 territories, but the company maintains its original setup despite the environmental difference (Mark & Spencer, 2022). The stores have identical designs and procedural layouts that create a limitation of change and no adjustments based on geographical position, lifestyle, and environment. Furthermore, the company has existed for over 136 years and is one of the leading retail businesses in the country (Mark & Spencer, 2022). The company has acquired partners over the years, which presents an advantage.
Marks and Spenser are known to offer various products and have maintained good relations with local farmers who supply them with fresh products that promote customers’ experience. They have different types of fruit, salads, and vegetables, increasing competition in the market (M&S, 2021). The company’s performance management is commendable, enabling the workers to put on more effort. Every year the company does an appraisal in which workers’ input is reflected. The company can increase profitability and revenue with the employees working towards a set target. M&S has opportunities for global expansion, being a multinational brand with many stores in countries such as Indonesia, Poland, Brazil, Russia, and India (Mark & Spencer, 2022). Expanding in these countries will increase its business capabilities.
External Factors Affecting Marks and Spencer
External factors affecting Marks and Spencer can be analyzed using PESTLE analysis. One political factor that impacts Marks and Spencer is free trade, which enables the company to import foreign goods at a lower price and sell them in their stores at a lower price. However, Brexit, which is the country’s decision to leave European Union, is a factor that may highly impact the company’s operations (Mark & Spencer, 2022). Free trade policies may no longer apply to the company leading it to experience tax increases while shipping out of England. These will result in higher production costs which may encourage loss of customers.
For the economic factors, while Mark and Spencer is a giant retail company, the UK is experiencing market shifts to smaller retail stores. The store’s low markup price enables the company to retain a premium status. Currently, the UK population prefers these retail stores over the premium products offered by Marks and Spencer (Farooq, 2019). This poses a significant threat to its market and brand by lowering the number of customers for the firm.
Social and cultural factors affecting Marks and Spencer are that due to its long-standing existence and brands of the past, it is likely to lose more of the latest generation customers. It is viewed as non-trendy as new retail chains continue to show up yearly. Technological factors affecting Marks and Spencer’s are self-checkout and online shopping. Self-checkouts is a big trending modern retail venture intended to save costs to be spent on cashiers by offering customers our fast checkout experience. The company has additionally established e-commerce stores to allow customers to perform online shopping, which saves time and has helped the brand become stronger in the current generation.
Legal factors affecting the company are that it has been involved in several legal disputes making it difficult for the brand to maintain its image at a constant stature. An example of such a situation that has happened recently is the Fracscati landlord disputes (Bush, 2019). Additionally, environmental factors affecting Marks and Spencer’s are sustainable produce and an issue of fair trade. To maintain its image, the company has pledged to become more sustainable in environmental factors such as reducing carbon emissions and lowering deforestation. The company consequently sells fair trade products, allowing smaller businesses to lower production costs and enable environmental production methods.
How M&S Manage Employee Performance
Employee performance is paramount in achieving the goals of a company. Employees are the key to profitability, productivity, and ultimate success (Siegel et al., 2019). Marks and Spencer use different metrics to grade and assess employee performance. The company uses an outcome-based performance management approach. Statistical and logistical software and other standards are implemented to gauge and ensure that each employee reaches the expected minimum (Mark & Spencer, 2022). The key performance indicators are translated from the company’s goals. For example, Marks and Spenser have a company goal to ensure high customer service.
The company relies on managers’ input to assess performance. The line managers are responsible for identifying and communicating the organization’s objectives, goals, and local targets to the employees. M&S performs annual and quarterly reviews in addition to monthly appraisals (al Habibi, 2019). This process allows it to track the success and implementation of the business strategy and perform the needed changes based on the outcomes. Concerning overall financial and strategic performance, the company uses comparative analysis regarding its competition with the rest of the retail market. Employees with excellent performance results in appraisals are encouraged to receive recognition and rewards. This helps motivate other employees and makes them perform their best in promoting talent management.
How M&S Manage Knowledge
Management of knowledge in a company relates to sharing, storing, and capturing experiences and knowledge of employees to increase the overall knowledge in its workforce. Knowledge management is essential to maximize efficiency and improve the teams’ abilities to make decisions by harnessing this significant and valuable asset, the employee’s knowledge and expertise. Knowledge management in organizations can ensure that employees can easily access best information practices from past projects and other data that help inform their work (Mark & Spencer, 2022). Marks and Spencer manage its knowledge through formal and informal processes within the company.
Marks and Spencer discover knowledge that may be deliberately or accidentally while performing its practices. For example, it can gain insights into new products to help the company become more competitive. It may also utilize data to address problems in its business. After the knowledge is discovered, the company needs to identify if it is unique or previously documented by the organization. Marks and Spencer store their acquired knowledge to keep it safe within the organization. It uses a knowledge repository to maintain new and existing knowledge. New knowledge is documented in its most accurate form. For example, when it documents a successful new sales strategy, it has to indicate all steps and the customer case studies used.
The teams then report on the new knowledge and hand it to the right chain of command. Employees’ discovery increases their credits, encouraging them to seek essential knowledge. It is then reviewed, and if approved, it may be stored, organized, and shared among the relevant teams. Marks and Spencer organize the knowledge in a format that is easily understandable and is stored in a platform that is secure and readily accessible. Cloud storage is essential for remote access to the company’s documents and files.
The company proceeds to share its acquired knowledge with authorized personnel in a structured format. Marks and Spencer share the knowledge based on the team members who need to use it to meet the company’s goals. Knowledge sharing is encouraged through workshops, cross-functional projects, and regular meetings (Lindblom & Martins, 2022). If the knowledge is not shared, the efforts are fruitless. The company creates platforms to make learning accessible to employees. They are trained to use their new knowledge to make informed decisions.
Marks and Spencer then proceeds to utilize the knowledge acquired. Knowledge utilization helps during the performance of tasks and initiatives requiring decision-making. Usage of the knowledge needs to be a positive outcome for the company. Employees must acquire the right information based on security and access to utilize the knowledge.
Effect of these Approaches on Organizational Development
Managing employee performance is highly significant for Marks and Spencer company. It helps highlight the training needed as it produces frequent reviews that can help understand the employee’s skill sets. Management of this performance helps identify weaknesses that can highly impact productivity. Future training requirements as addressed together with shortcomings of the workforce. The company can boost its employees’ morale through performance reviews, which provide a setting that documents and formalizes praise (M&S, 2022). The organization can decide which employees are qualified to be promoted through performance management. The workforce may be motivated to work harder to improve promotion possibilities. It clearly defines and identifies employee career paths with the effects of reducing staff turnover and boosting motivation. Performance management enables Marks and spencer to deliver greater employee autonomy, especially when they are aware of their contribution to achieving business goals. The employees become more accountable as each individual is aware of their role in the organization.
On the other hand, knowledge management at Marks and Spencer encourages a culture of curiosity and collaboration. The company can streamline its knowledge while making it accessible to every team member. Proper knowledge management for the company ensures that relevant employees can easily access knowledge for better practices and past project information that can be essential to inform their current work. It alleviates knowledge-sharing barriers and ensures that workers who need knowledge and expertise are empowered to find innovative solutions and challenge the status quo to solve unique company problems
Approaches to Teamwork
Marks and Spencer strongly believe teamwork is essential for its operations’ success. The organization’s approach to teamwork highly focuses on communication and collaboration among employees. The company uses this approach to foster community, encourage innovation and creativity, and promote decision-making prospects. Clear goals and objectives are offered to ensure that the entire team is on the same page and can move in the same direction. The company builds a culture of gratitude and trust, creating the needed environment for participation and forming a supportive team that strengthens it. Each workforce member is empowered to participate and engage in offering creative innovations and ideas without any form of discrimination.
Open communication creates inclusive teams and promotes a healthy working culture where everyone can access information and be comfortable sharing their views and feedback. A supportive and positive working environment encourages the team members to work together, encouraging an atmosphere of cooperation, respect, and trust among team members. Personal contribution is additionally recognized, motivating each member to showcase their unique perspectives and skills and value their opinions.
How Marks and Spencer use Ethical Business Practices
Ethical practices are essential in a company as they promote its reputation and build trust among customers, shareholders, and employees. Managers can achieve ethical practices by clearly communicating standards, fostering an accountability culture, and providing ethical training. Ethical practices performed by M&S include environmental policies. The company uses eco-friendly materials, especially recycled ones, and has an initiative practice that targets reducing greenhouse gas (Ethical Consumer, 2020). The company is said to provide an organized and consolidated account of its approaches to animal welfare.
Marks and Spencer have prioritized ensuring a fair wage to workers and that they have zero tolerance for harassment, discrimination, child labor, and slavery. Marks and Spencer offer equal opportunity policies to its workforce and treat everyone equally regardless of gender, age, ethnicity, religion, and beliefs. Additionally, the company values the confidence and loyalty of its customers and promises their safety while using its products. It offers the most highly possible standards of trust, innovation, service, value, and quality.
Measuring Managerial Performance in M&S
Marks and Spenser measure managerial performance through several methods, such as the teams’ overall performance. High team performance indicates better leadership, signified by quality and outcomes in reaching the company’s goals and objectives. The company performs employee surveys twice a year to provide assessment and feedback (M&S, 2022). This service offers information on how engaged a manager’s team is. They can also provide information about their employees as they implement or their leaders teach them. The results additionally provide insight into the manager’s priority for transparency as they work with their team members.
M&S use the team’s turnover rates to assess if they are unexpected spikes that need to be addressed and are within management control. Sometimes turnover rate may be associated with management failure; hence this is a powerful tool to assess success and managerial performance. Additionally, the company checks for the development and advancement of its employees. This is an aspect that is related to leadership and efficient management. The employees may show readiness for bigger roles and enhanced qualities such as collaboration, teamwork, and improved skill sets.
How Managers Lead Staff in the Organization
Contemporary and historical leadership theories offer various perspectives on effective leadership and how they can influence employees. Historical theories, including trait theory, suggest that a leader is born with specific traits of effectiveness. Transformational theories suggest that leaders must motivate and inspire followers to achieve common goals (Benmira & Agboola, 2021). Behavioral theory focuses and the behavior and action of leaders rather than their personalities. The contemporary theory includes servant leadership which encourages leaders to follow the needs of followers. Charismatic leadership is where managers can influence and inspire followers. Authentic leadership involves genuineness and transparency (Benmira & Agboola, 2021). To improve leadership, managers need to consider incorporating elements of multiple theories in their leadership style. They may consider practices such as self-awareness, empathy, and behaviors that motivate and inspire their followers.
The managers at Marks and Spencer are solely responsible for controlling management functions in the company. The managers lead the staff to ensure they work towards a common goal of achieving the company’s goals. The managers use contemporary management to deal with high production costs in the company. They motivate their employees to maintain performance outcomes and inform them about dealing with new suppliers. The leaders are responsible for ensuring organizational objectives are achieved by the employees by leading the team to complete their tasks accordingly, maintaining high standards of performance.
The managers set clear expectations by providing directions and guidelines to the workforce, including job responsibilities and performance goals. They provide guidance and support to the staff by providing the coaching and feedback needed and have a major role in communicating effectively with their employees. The need to maintain open communication with the staff to ensure that information is passed effectively to promote awareness of the company’s plans, changes, and news. At Marks and Spencer, the leaders demonstrate the company’s ethical standards and values through their actions and behavior that the staff needs to follow.
Conclusion and Recommendations
Marks and Spencer is a well-known multinational retailer in the UK that focuses on selling clothes, food, and home products. The company uses a flat organizational structure with limited management between the administration and front-line workers. The company may consider using a matrix organizational structure due to its vast advantages. Macro and micro factors affecting M&S have been assessed using the help of SWOT and PESTLE analysis. Management of employee performance is significant for the company to gauge its success in meeting its employees’ set goals and objectives. New knowledge in the organization is acquired, evaluated, stored, and shared among teams to assist in future work and decision-making processes. Approaches of teamwork focus on collaboration, communication, and innovation. Managers significantly lead and motivate the staff toward the business’s success.
Marks and Spencer’s recommendations include promoting innovation by encouraging its workforce to bring forward new ideas and providing resources needed to foster an innovation-friendly environment. The company may benefit from investing in reporting and data analytics tools for making data-driven decisions and understanding customer behavior. Additionally, the organization should ensure that the workforce is engaged and informed by implementing regular all-hands meetings to facilitate easy coordination of activities.
References
Al Habibi, B. (2019). HR practices of Marks & Spencer, Selfridges, Primark, and Sainsbury’s [Unpublished doctoral dissertation]. University of Science & Technology
Benmira, S., & Agboola, M. (2021). Evolution of leadership theory. BMJ Leader. Web.
Bush, T. (2019). Marks and Spencer Pestle analysis. PESTLE Analysis. Web.
Choudhary, B., & Piparo, T. L. (2020). Case Study–Strategy 2020 for M&S. Web.
Ethical Consumer. (2020). How ethical is Marks & Spencer Group plc? Web.
Farooq, U. (2019). Pestle analysis of Marks and Spencer. Marketing Tutor. Web.
Lindblom, J., & Martins, J. T. (2022). Knowledge transfer for R&D‐sales cross‐functional cooperation: Unpacking the intersections between institutional expectations and human resource practices. Knowledge and Process Management, 29(4), 418-433. Web.
M&S. (2021). Annual Report & Financial Statements 2021. Web.
Mark & Spencer Group plc. (2022). Annual Report & Financial Statements 2022. Web.
Otoom, A. F., AL Kateb, G., Hammad, M., Sweis, R. J., & Hijazi, H. (2019). Success factors importance based on software project organization structure. Information, 10(12), 391. Web.
Samimi, E., & Sydow, J. (2021). Human resource management in project-based organizations: revisiting the permanency assumption. The International Journal of Human Resource Management, 32(1), 49-83. Web.
Siegel, R., Antony, J., Garza-Reyes, J. A., Cherrafi, A., & Lameijer, B. (2019). Integrated green lean approach and sustainability for SMEs: From literature review to a conceptual framework. Journal of cleaner production, 240, 118205. Web.
Taylor, A. (2019). An exploratory study of the relationship between job insecurity and employee engagement focusing on temporary employees in the retailing industry in the United Kingdom| Case study: Marks and Spencer Group plc (Bachelor thesis, University of Wolverhampton). Web.