Understanding different approaches to management and leadership
P2.1 Compare the effectiveness of the leadership styles used by the CEO in ASDA to that used by British Airways.
ASDA is the second biggest supermarket chain in the UK. Since 1999 ASDA has been wholly owned by Wal-Mart, which is the largest company in the world. ASDA was formed in 1965 by a group of farmers from Yorkshire, and its activities are still mainly based in north of Britain.
As one of the UK’s fastest growing retailers, the aim of CEO Andy Clarke is committed to building and operating stores in a sustainable for the benefit of the environment and the communities they serve. His leadership is centred on the ...view middle of the document...
Being in charge of a major international airline carries a huge burden of responsibility. British Airways flies to 145 destinations around the world with approximately 30 million passengers per year, employs around 39,000 staff, manages around 245 aircraft with a revenue of nearly £8 billion per year comes with a huge burden of responsibility.
As Williams put it, “If I have approximately 80,000 passengers each day who would like to be treated as an individual and for that to happen it takes about 100 processes in a chain, this means that there are at least eight million things per day that could go wrong”.
The main reason for British Airways to select Willie Walsh as their CEO was because at that time British Airways was facing stiff competition from low cost airlines. His success as a leader in Aer Lingus an Irish flight carrier which was almost on its way to bankruptcy and then Willie Walsh stepped in not only turning the carrier into a profit making carrier but also one of the most successful carrier of Ireland.
P2.2 Identify any organisational theory practiced at ASDA and Explain how organisational theory underpins the practice of management.
Asda’s aim is to deliver the best services to its customers by providing affordable goods and services. In order to achieve these aim colleagues at Asda are highly committed at performing their duties effectively. The organisation decided to change the structure and culture of Asda during the period of Norman by adopting the transformational style of leadership. Archie Norman transformed Asda by creating new strategies to change the culture of the organisation; his strategies focused on lower prices in order to attract more customers and also developed a customer friendly culture and a flat hierarchy. Norman wanted to build a culture that valued listening, open communication, learning and speed of response.
During an interview conducted with one of Asda’s store manager who stated that at present Andy Clarke has continue the use of the same transformational theory of leadership in order to accomplish the vision and sustainability of Asda, and one of the reason was to develop a dedicated team for delivering goods to the customers and to make sure the customers are happy.
In order to motivate their colleagues in achieving the goals of the organisation they encourage their performance through what they call huddles. The huddle is a way of keeping everyone informed about how the business is performing, Asda (2008). The store manager ensures that they communicate the activities for the day and help the colleagues stay focused in achieving the goals of the organisation.
They also provide training and development programmes that is suitable for the employees in order to support them with everything they need for their job and to also enhance their performance. The programme is developed to also strengthen the employees in...