This assessment will cover the following questions:
- H &M is a leading clothing brand of the United Kingdom. Critically analyse the leadership and management practices used by the organisation to meet the organisational value.
- What is the most suitable model that assist the business to structured plan of the H & M.
- How internal and external factor affects the Leadership and management practices in the organisation.
In today's dynamic business environment, an effective leadership and management is considered as an integral component because it focus on making employees more efficient towards their set goals and targets. In this regards, role of theories or concepts related to leadership and management help leaders to encourage or direct their subordinates for putting their best contribution towards an accomplishment of desired goals. As, leadership is an activity and sustained process that support workers to derive desired results with the guidance of their leader in order to deliver optimum performance within the company. Along with this, management is also play a crucial role in business organisation as it maximize the overall production by using human resources that contributes in increasing performance of workers. Mainly, every business organisation do whatever possible to encourage employees towards their maximum potentiality. With the assistance of this, company can easily improve overall performance level. Although, these two concepts are different from each other in terms of roles, responsibilities and functions yet they are inseparable in nature. This is because, these two terms are mainly focus over generating better working environment as well as creating high level of motivation among employees in order to attain sustainable growth.
Critically Evaluate the application of Leadership & Management Theories within a H&M.
Current report is based on H&M, is a famous Swedish multinational clothing retail company that serve fashion clothes for men, women, teenagers and children. It was established in 1947 by Erling Persson. It is the second largest global clothing company and has a significant online presence along with online shopping available in around 33 countries. Furthermore, it also operate their business in approx 62 countries along with 4500 stores. Company has around 148, 000 employees to operate their operational activities in over the world. One of the major philosophy is to bring the best fashion and quality at the affordable cost in order to capture larger market share from its competitors. IN context of this, company follow Matrix organisational structure in which H&M ownership concentration. As firm has full ownership for entire stores and also control operational activities. As the main headquarter of company decide that what kind of products to release of produce and at the same time also set that how they carry out the market campaigns. In this regards, this structure brings decentralization of authority.
In addition of this, the main mission of H&M is to drive long lasting positive change within the production and also produce quality products to improve living condition of community. This type of mission support company in sustaining at market place. In this, company values are related that effective team working, constant improvement, recognizing the customer demand. Cost effective, simple process, taking initiative in gathering feedbacks from customers and many more. With the help of this, firm can easily established their positive and competitive brand image.
Overview of The Methodology
While collecting information about the theme, there are two type of analysis like quantitative and qualitative (Timm and McLaren, 2019). Both are important for company to investigate and analyse the actual views of people towards company services. For this research qualitative analysis is used because it its based on theoretical aspects that provide in-depth information about the research title.
Furthermore, there are two type of data like primary and secondary that help company is analysing the impact of leadership and management theories on company performance. These two type of data can be used by firm with the aim of collecting relevant. Mainly, company use secondary data that is already published in various sources like internet, articles, books, journal and many more. With the help of secondary data, company carry out literature review that includes analysis on the basis of different authors views pints. With the assistance of this, deeper information can be easily gathered and analysed as well.
Along with this, current structure of this report is based on evaluation the application of leadership and management theories on company and its performance. It may includes introduction critical evaluation of literature review, critical discussion of practice in the organisation, evaluation on the fit between theory and practices and at last the conclusion. This structure help in successfully completing the whole report.
Critical Evaluation of Literature Review
Leadership and management play a significant role in business organisation as it support or guide workers to perform their best for accomplishing their targets. In this regards, leadership is consider as an influence relationship among employees and leaders who are intend changes that direct reflecting their mutual purpose. Mainly, leaders are the one who perform leadership activity by influencing or encouraging their team members with the aim of making them able to accept every type of challenges and issues. This may put positive impact on developing their productivity at workplace. On the other side, management is also put their significant impact on overall performance of workers because it is an authority relationship among manager and employee who are responsible for coordinating their activities to effectively perform their task and activities. Furthermore, management is refers to the critical part of company as it focus on brings each and every resources including people with the aim of utilising them effectively to attain all the set goals and objectives in stipulated time frame. Both terms are crucial for company in managing workforce and at the same time also make them more productive. With the assistance of this, company can easily attain their goals and enhance their competitive image as well. So it is very much essential to opt one of best leadership and management theories and practices that proved beneficial for organisation to coordinate their work in positive manner.
According to Leithwood, K., 2019, leadership is crucial for every business organisation to motivate and direct workers for developing their efficiency level. This may contributes in increasing involvement within the company. In context of this, various leadership theories are used by company for developing abilities and encouragement of employees towards the set goals and objectives. The main focus of leadership theories on the leaders characteristics but at the same time some are used to determine the employee behaviour that they adopt to improve their abilities in different situations. In this regards, there are some leadership theories used by business organisation to enhance employees performance and also encourage them to take initiate for put their best efforts to accomplish their goals. With the use of leadership theory company can improve workers abilities to do their best and accomplished their targets in mots effective way. For better understanding some theories of leadership can be understood by following points:
- “Great Man” Theory: This type of leadership theory is described as Born to lead. In this, great leaders are born with necessary internal characteristics like intelligence, confidence, charisma and other social skills that make them natural leader from their born. These type of leader are born not made as they can arise when there is a great need. Along with this, great leader has one gifted with unique qualities that directly captures the imagination of the masses to others. This type of theory is effective for their assuming positions of authority in which leader accomplishes their set goals and objectives in specified time frame. As these traits remain stable over the time and also also across different groups. With the use of this leadership theory, leader can easily emerging interest in evaluating the employees performance by making them able to accomplished their targets and goals as well. This will help in making workers more productive towards their roles and responsibilities at workplace. By using respective model organisation can be able to gain sustainability and potential outcomes to remain competitive.
- Trait Theories: Under this leadership theory, leader of an organisation inherit various qualities and traits that make them able to stand out against the crowd. By this, leader can maintain their status with the company and at the same time also focuses on these personality traits. As this theory believes that people are either born or are made with different qualities that will help in making able in specific leadership roles. In this regards, certain qualities of leaders are sense of responsibility, creativity, intelligence and so on. One of the main focus of using this type of leadership is to analyse mental, physical and social characteristics that help in gaining more understanding leader within the business organisation.
- Contingency Theories: This type of theory is argues that there different ways to leading people and at the same time each leadership style should be based on the different situations. In this regards, this type of leadership theory is focus on specific variables that is based on the environment within the business organisation and also determine the specific style of leadership that best suited towards the particular situation. Along with this, as per this theory, no leadership style is best in the entire situations. It is not about the qualities of the leader but it is all about the striking the right balance between needs and behaviour of people towards the particular situation. An effective leaders are able to evaluate the workers needs, analyse the situation and also adjust their behaviour accordingly. In this overall success is based on the style, qualities of workers and aspects of the situation occur at workplace. With the assistance of this, leader can easily motivate and lead their workers and make the productive towards the set goals and objectives.
- Situational Theories: It is one of the effective leadership style in which leader choose the best action that is based in the situational variables. Thus, it is important for leader to have knowledge and experience to manage their team members at workplace in order to improve their working abilities. In this regards, leader needs to change the approach on the basis of situation that help them in improving the performance level of workers. This will contributes in attaining all the set goals and objectives. Furthermore, this type of leadership style includes democratic style in which leader encourage workers to take participate within the decision making in order to encourage them. This will aid in improving their motivation level at working area.
- Behavioural Theories: This type of style is based on belief that made by a great leader and it is not by born. In this regards, it is based in the leader action, mental qualities and internal stated as well. This theory said that people can learn to become a leader by observation and teaching. In this, leader take challenges to improve their qualities that support them in improving their performance at working place. Along with this, leader also focus on analysis the behaviour of workers in order to improve their performance by providing them proper leading and guidance at working area. This will contributes in increasing productivity of workers that directly contributes in accomplishing all the targets in stipulated period of time. In this, leaders are learn from their experience and teaching.
- Participative Theories: Under this, leaders are divided into tor categories such as autocratic leadership style in which they makes all the decision on their own. On the other side, participatory style is also effective in which leader encourage team members to take participate within the decision making process and other activities to speak up. As the result, team members share their views and opinion in decision making. This will contributes in developing positive performance of company and its workers as well. Although, leader also reserve the right to stop to workers that support them in creating positive attitude of employees at working area. Mainly, it includes democratic dimension in which leader focus on encouraging team members to take share their view point in order to take right judgement. By this team members feels more comfortable at workplace that influence them to put their best efforts to accomplishing their goals and objectives in stipulated time frame.
- Management Theories: This is known as transactional theory which includes lots of emphasis on supervision, team work and organisation as well. It define a system of reward and punishment in which manager of company manage workers activities and make them able to improve their performance at working area. Under this, manager can evaluate and track the performance and progress of employees in order to improve their overall action and efficiency level. It also focus on positive values that support in effective for developing a beneficial relationship among workers. In this, leader of company align to adequately rewards as per their performance at workplace. This will assist in developing a mutual reinforcing environment and at the same time also build relation among individual as they easily attain all the set organisational goals and objectives in stipulated time frame.
- Relationship theories: This style is known as transformational theory which focus on connection between leaders and manager as well (Weiss, Tappen and Grimley, 2019). The main purpose of this style is to motivate and inspire workers to improve their working abilities so that they can easily attain their targets in systematic manner. Along with this, leader of company also tries to improve performance of group members but at the same time also focus on fulfilling their potential. If leader follow this type style that they often have high ethical and moral standards by which they easily motivate their team members to perform their best for accomplishing their goals and objectives.
According to Kanki, B.G., 2019 , motivation is one of the crucial activity for every business organisation to encourage workforce to do something well at workplace. In this management of workers is also play a crucial role in company in which manager tries to manage employees activities by placing them at right place as per their skills and abilities. This may beneficial in improving their overall performance at workplace. For attaining the same, company also use various management theories which is related with the concepts that are surrounding towards the management strategies. As it also includes such tools like frameworks and guidelines through which firm can improve workers performance. In this context there are some effective management theories used by company to increasing workers productivity level:
- Scientific management theory: This type of theory is focus evaluating work performance scientifically. In this, leader force their team members to work hard wasn't the best way to improve their performance but they recommended tasks so it increase their productivity level (Okpala, P., 2019). In context of this, manager give incentives for working. This theory focus on developing the Fair days wages for a fair day's work. BY this workers enjoy their work and perform their best in a team.
- Systems management theory: It provide alternative approach of planning and management of company. As per this theory, the overall success of business is highly based on the different key elements interdependence and interrelations between different subsystems. In this, employees are the important component for business as it help in enhancing the chances of attaining success. As, manager of company focus on making them collaborative at working area that support in improving their efficiency to perform their task.
- Contingency management theory: According to this approach, there is no one management theory is suits every business organisation. In this regards, there are several internal and external factors that affect the selection of management approach. As this theory includes three variables like organisation size, technology being employed and leadership style. Along with this, leader needs to be quick towards the particular management style for a specified situation. This may aid in improving the performance of company and its workforce as well.
Critical Duscussion of Practice in The Organisation
H&M is a clothing retail company that know for its fashion products for customers. Mainly, it is a Swedish multinational organisation that operate their business in 62 countries with around 4500 stores. Company has 148000 employees that perform for attaining success at market place. Along with this, it is the second largest global clothing company that has significant online presence that help in inviting large number of customers over there. In addition of this, the main focus of this organisation is to offer quality products to its customers in order to generate larger profitability at market place.
Furthermore, there are some models that help in analysing the organisation performance at market place and also affect its leadership and management. Thus, it is crucial for manager to effectively analyse the overall activities includes in H&M operational activities to execute or run entire operational activities in effective manner. This will also support in leading as well as managing workforce within the company in well organised manner. For better understanding, some suitable model are there:
It is consider as an important method for assessing overall environment of business organisation and it also help in determine its possible impact over the company performance. This tool is beneficial because it provide deeper understanding of firm at market place. By using this, H&M can easily analyse the organisation and its activities:
- Political: As a global fashion company, it is important for company to analyse this factor as it help in monitoring the political risk. As H&M operating globally and also has franchised outlets in various markets and countries as well. It includes unstable political environment that affect the overall performance of company. In addition of this, majority of H&M production is operated in Turkey, Egypt and Lebanon. From these location, Lebanon is politically unstable that affect its production activities in negative manner. As it also affect the results in increasing the prices of textile products. Along with this, developing countries along with stable government change support in minimising the production cost. In this, manager and leader is responsible for implementing their policies according to the government change so that employees can easily accept changes and perform their activities accordingly. This will directly contributes in improving the overall performance of company at market place.
- Economical: This factor is important and also affect on the company and its business activities. In this regards , developing countries have low labour rate in which company easily setting up manufacturing units in order to increase its overall profitability level. Due to improving economy within the nation, income level of people is increase that positively affect on the profitability of company. As H&M offer fashion products in which customers have more to spend on luxurious items which includes premium clothing (Hallinger, P., 2019). In context of this, leader focus on encouraging as well as motivating their workers within the company. This will increase the profitability of company at market place and also expand their business at global level. Apart from this, corporate tax policy varies from the nation to nation in which H&M has to align its business activities accordingly. In this leader and manager also implement their theories accordingly so that workers can easily perform their task and activities in effective manner.
- Social: H&M operate their business in clothing and retail industry in which mostly people are directly influence by celebrates and social media as well. The main reason behind this is that, customers relate more with the brand along with their favourite celebrity. In this regards, promotion through social media is effective in which company can easily change the customers demand towards its offerings. Because due to promotion the buyer can easily change their attitude and taste. In this regards, they prefer designer clothes that may increase the demand of customers over the company more than before. As per today's changing technology, manager and leader of H&M company includes democratic leadership style that support workers in taking participants in entire decision making process. With the assistance of this, company easily improve their promotional channel in order to invite them towards its services.
- Technological: As per today's digital world, people are more influenced towards the online shopping rather then going to the store. As large number of people are using mobile application for purchasing company products. In this regards, technology provide ease of ordering their products from any where. This is the reason that customers are change their behaviour instantly. As H&M is responsible for keeping up with technological advancement and also give reward points to customers as it directly contributes in increasing their customer base. In advancement of technological era, leader and manager focus on employees activities and make them able to accept all the changes that occur due to technological advancement. By this they easily improve their efficiency at workplace and also provide better quality services as per customers needs and wants. This can be effective in increasing overall profitability level at market place.
- Legal: Each and every country has its on legal and regulatory policies which is important for company to follow. If organisation follow all the rules and regulations then they successfully operate their business and attain success. In context of this, H&M collaborate with franchising partners in which their intellectual property right is one of the major concern for company. In this, H&M is responsible to follow all the legal rules at the time of executing their activities so that they can easily accomplishing their competitive success at market place. For attaining the same, manager and leader of H&M is also responsible for developing their policies as per legal factor wherein they execute. Along with this, they also encourage their workers to take participate within the organisational activities in order to make them aware about all the legal policies that they follow. With the assistance of this, workers are easily execute their job activities as per legal policies within the company.
- Environmental: Retail and Textile industry is second most polluting industry. In this, the high amount of water waste is pollutes the water bodies. Due to this population who are living nearby water bodies get effected and suffers from different diseases. In this, government includes norms for regulating to controlling the pollution. In context of this, H&M focus to be use recycled clothes material for their production in order to protect the environment. This can be positively impact on the overall performance of company and at the same time also established competitive image.
In addition of this, while company globalise their business then they are responsible for understanding cultures and people by using Hofstede dimensions. It is a framework that revolving around the cross- cultural communication. It also define the relationship between the values and behaviour within the company and society as well. Thus, it is crucial for H&M is to concerned and also have knowledge about different features of business in different cultures. With the help of this manager of company understand and sailing successfully across the international market. In this regards, it includes 6 dimensions of cultural that are crucial for H&M to operate their business globally in successful manner:
- Power distance: This type of dimension refers to extent which the employees are the less powerful in society and expect that power distribution are taken place equally. Under this dimension, power and unequally is to be perceived from followers or minimum strata. Low degree of index signifies that attempt to power distribute.
- Uncertainty Avoidance: It is defined as a society tolerance for ambiguity. This type of dimension includes how unknown situation are dealt. In context of this, high uncertainty avoidance index that define a low tolerance for risk taking. As it help in minimising through strict rules and regulation and many more. On the other side, low uncertainty avoid index define high tolerance for ambiguity and risk taking. As society tends to impose fewer regulations and the environment is more free flowing.
- Individualism vs. Collectivism: The high side of the this dimension known as individualism which indicates the greater importance on gaining the personal goals and objectives. On other hand the collectivism shows the greater importance on obtaining the goals and well being of the specified group. Respective aspect shows the integration of societies into group and their level of perceived obligation and dependency on the groups.
- Masculinity vs Femininity: The masculinity vs femininity dimension also refers to “Tough vs Tender” and come under preference of society for achievement, in attitude in regards of sexual equality and behaviour (Bush, Bell and Middlewood, 2019). Masculinity comes in majorly characteristics such as distinct gender roles, assertiveness and concentrated on the material achievement and building of wealth. On other side the femininity come under the major characteristics such as fluid gender roles, modesty and concerned with the quality of life.
- Long term vs Short Term Orientation: The long term orientation vs short term orientation consider the extent to which society view its time dimension. In organisation it is very much necessary to maintain links with the past to deal with challenges of present and future (de Oliveira, Cavazotte and Alan Dunzer, 2019). Long term orientation describe and focus on the future by involving delaying in the gratification for achieving the long term success. It focus on the persistence, perseverance and gaining long term growth. On other hand short term rely on the near future by involving the short term goals by setting short term objectives by strong emphasis on present rather than the future.
- Indulgence vs. Restraint: The indulgence vs restraint dimension focusing on the extent to which society fulfil their desire in order to remain competitive in marketplace. In indulgence which indicates the the way society allows relatively free kind of gratification related to enjoying life (Golensky and Hager, 2020). Restraint indicates about the regulation by using the social norms and conditions in order to gain potential outcomes. All these theories and practices proved beneficial for organisation to build and maintain the organisational culture in which each and every individual can give one of their best efforts in their development and enhancement in positive manner.
All these models are considered as a crucial as it help business organisation in analysing actual performance at market place. It is also affect the leadership and management activities in company. This is the reason that business is responsible for implementing leadership theories accordingly so that all the possible changes can be easily acceptable and at the same time also improve the overall performance level at global marketplace. Internal and external events directly affected the leadership and management practices in the organisation such as great leaders inspire and direct by the most persuasively. So changes in the internal and external factors directly influence on the serving style of an individual. External factors that affect by the organisation includes political, economic, social or technological . Leaders and management who can gain and communicate the way content and information learned within the organisation and also from the external environment to communicate in successful manner. Leadership and management are also impacted by the change in external change through out the society that prevails in the society such as eliminating sexual harassment. Difference in salaries between the male and female employees by observing it management and leaders have to take actions and accordingly change their style of leading people in order to gain desirable goals and objectives in positive manner (Hallinger and Hammad, 2019). In context of H&M when they enlarge business opportunities in the other market place it is very essential to collect necessary knowledge and information in that regards it is the responsibility of a leader and manager to communicate within the organisation about changes so that people can respond in positive manner (Weiss, Tappen and Grimley, 2019). Respective aspect in organisation helps to maintain harmony within the organisational works and activities by delivering right kind of value to ultimate consumer base in positive manner.
Critical Evaluation on The Fit Between Theory & Practice.
Were All L&M Theories Presented in Section 2 Present in The L&M Practices in The Organisation?
There are different types of theories which is related to leadership and management. All of these theories will lead to have impact over business as well as its functions. It is essential for respective to understand as well as evaluate all those theories in order to perform business activities in effective manner. There are different types of theories that is developed for handing various critical situation for organisation. By evaluate all of these strategies respective company will be able to take better and effective decision for organisation developing. There are some theories of leadership and management which are implementing in this organisation. Participative leadership, contingency leadership as well as situational leadership theory has been practice in H&M company. Where as great men theory and trait theory of leadership and management is not applied in respective company. It has be determined that all of these theory are developed for some specific method. It is not possible for organisation to apply all of these theories to perform practices in business. So it has been identified that from all of the above mention L&M theories are not applicable in respective company.
What Are The Aspects of The L & M Theories That Best Fit The L&M Practice in The Organisation?
There are some theories that can be consider as the best practice for respective company as it will help in achievement of desired goals and objective. Leadership and management theories play crucial role in overall growth and development of organisation. From the above mention theories of L & M it has been determined that participative as well as situational theory will help respective company to perform business activities in effective manner. Leadership and management theory will lead to provide guidelines to business as well as manager and leaders. Participative leadership theory and situational theory is considered as best fit for H&M company as in participative leadership leaders are providing support to its employees. This is helpful in enhancing performance of organisation as participative leader provide support to employees. This will help in developing relationship with employees as well as motivating them. Though situational leadership, leaders and manager of respective company is providing support to its employees. Situational leadership will help in understanding as well as analysing the environment in which respective company is providing its functions. Though the application of this leadership theory respective organisation will be able to take effective and efficient decision for the welfare for company.
What are the aspects of the L & M theories that least fit the L&M practice in the organisation?
There are some of the leadership and management theories that is not considered as a suitable fit for organisation. It is essential for H&M company to evaluate these theories as well as its aspects in order to take better and effective decision for growth and development of organisation. Theories and practice of L &M that should is least fit for respective company are trait theory and great men theory. Trait theory is based on specific characteristics as well as trait of the person. There are some criticisms affect the business and its performance. This theory of leadership and management is based on the aspect that suggested that leaders and managers should have certain personality traits for motivating as well as influencing employees. This theory is not considered fit for respective organisation as personality of leader is not changing as per the changes in the situation. So this aspect of leadership and management fails as leaders will not be able to guide employee in different situations. Great men theory of leadership state that leaders are born which is not applicable in this Morden time. It has been analysed that leaders do not have leadership quality from birth so this is considered as least fit for respective company.
Are There Any L&M Practices Within The Organisation That Were Not Included in The L&M Theories Presented in Section 2? If so, Specify
Transformational leadership theory is not included in the above section of L &M theories. This is one of the crucial theory of leadership which will help leaders and manages to enhance business performance. Transformational leadership can be describe as a way in which respective company can perform business activities in different and creative manner. This theory is developed by James Mac Gregor and the motive of developing this leadership theory is to provide guideline as well as frameworks to organisation. This theory of leadership will help in enhancing skills and capabilities of employee in effectively and efficient manner. Though this leadership approach employees potential is developed at very lower cost to business. This will help in developing better and strong relationship with employees as well as improve their career by transforming them. This type of leadership style is considered as managing or implementing changes in organisation for its growth. By adopting this leadership style in respective company set objectives and goals could be achieved by employees. This leadership theory induces on going leadership and development of employees as well as organisation. It will lead to create enthusiasm in between employees. This leadership theory should be used by organisation in order to communicate in effective and efficient manner.
Are There Any Emerging Trends That Diverge or Converge Theory And Practice?
There are various trends that diverge leadership and management theories as well as practices. It is essential for organisation to analyse as well as evaluate different types of trends in order to perform business activities in effective manner. Major trends that are related to leadership and management practices includes that leaders and managers needs to develop better relationship with its employees. This will help in perform conducting business activities in effective and efficient manner. It is essential for respective company to adopt these changes in organisation as this will help in creating strong relationship with employees. It is tread in market that companies should invest in human capital as this is considered as one of the most strong and important asset of organisation. Though this H&M company will be able to retain its talented workforce for longer time frame. It is important for company to change its leadership and management practices as per the time. This will help in performing organisational activities in better and effective manner so that company can achieve set goals with in set time frame.
From the above report it has been concluded that leadership and management is one of the most important for an organisation which enables to maximise the efficiency level for achieving the organisational goals and objectives. For an organisation it is significant to opt one of best leadership and management style for that organisation need to conduct research. Research is one of most important tool which helps to reach at desirable goals and objectives by using various tools and techniques. Every organisation use distinctive leadership and management theory and it can be only opt after evaluation of each and every important factor associated with it. Such as organisational culture, hierarchy of organisation and brand value of organisation and many more So that best style of leading people can be chosen. There are no. of leadership and management theories and models that opt by organisation such as situational leadership that changes as per the situation in which leader mould their serving style to gain desirable outcomes. Leadership and management style directly influenced by the internal and external environment of the business. In external factors consist of the political, social, environment and other factors. In internal factors that directly influence on the organisational activities such as learning style, communication, organisational structure, culture and leadership style so it is very much potential for an organisation to evaluate respective factors to determine the way organisation moves forward both work as an self contained organisational entity. For an organisation implementation of the theories and models within the organisational structure plays very much important role as it bring theory into practice so while management and leaders decide about the implementation of theory within the organisation. It is the responsibility of a leader and manager to make sure that implementation of models and theories fit in between the theory and practice to remain competitive.
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