Schein suggests that the basic assumptions are treated as the essence – what culture really is; and values and behaviours are treated as observed manifestations of the culture essence.
Sainsbury’s state that they are a PERSON culture where the individual is the central focus and any structure exists to serve the individuals within it. (According to Charles Handy’s theory) Sainsbury’s state that their employees and customers are in their personal interests and will be looked after.
However, after analysing how Sainsbury’s operates and looking at the Organisational chart and structure of the organisation (see appendix 1 and 2) it is apparent that Sainsbury’s is more a ROLE culture that is often stereotyped as a bureaucracy. Thus is true for Sainsbury’s. Role culture rests on the strength of strong organisational ‘pillars’. The work of, and interaction between, the pillars are controlled by procedures and rules, and co-ordinated by the pediment of a small band of senior managers. It is based on roles and job titles not people’s personalities. Position power is the main source of power within this culture. Sainsbury’s is also stable and slow to change as the history of Sainsbury’s shows. (See appendix 3) All these theories of Handy’s Role culture matches Sainsbury’s operation exactly.
The Culture of an organisation is a major influence on the structure the firm adopts. If a business has a highly innovative culture whereby it wishes to be a market leader selling advanced products (as Sainsburys does), it may adopt a matrix structure to minimize bureaucracy and to allow teams to carry out the necessary research and development, and market research. On the other hand, an organisation which places importance on tradition (and would wish to appear conventional) may be best suited to a formal, hierarchical structure. This structure places emphasis on positions rather than people and this factor encourages the continuance of existing policies and practices.
Management Styles
There are two main types of management styles that a business like Sainsbury's can adopt. These are:
Autocratic - an autocratic leadership style is one where the managers set objectives, allocates tasks and insists on obedience. Therefore the group become dependant on him or her. The result of this style of is that members of the group are often dissatisfied with the leader. This results in little cohesion, the need for high levels of supervision, and poor level of motivation amongst employees.
Democratic - a democratic leadership style encourages participation in decision-making. Democratic leadership can be persuasive or consultative.
· Persuasive. This is where a leader has already made a decision but it takes time to persuade the other employees that it is a good idea. For example the owner of business may decide to employ outside staff for certain jobs and persuade existing employees that this may ease their workload.
· Consultative. This is where a leader consults others about their views before making a decision. The decision will take into account these views. For example the views of the marketing department about whether to launch a new range of products may be considered.
Democratic leadership styles need good communication skills. The leader must be able to explain ideas clearly to employees and understand feedback they receive. It may mean, however that decisions take a long time to be reached as lengthy consultations can take place.
The style Sainsburys would most fall under is Autocratic or authoritarian leadership, it cannot be solely categorised in this niche as it has influences from the Paternalistic leadership and probably even some from the democratic side.
They are mainly authoritarian because they tend to use one-way communication more than two ways. The senior managers will have little or no involvement with junior employees and it is highly likely that each store has its own set of targets and objectives to work towards.
Sainsburys managers tend assume that most employees will fall into McGregor’s theory - Theory x workers and theory Y workers. Sainsbury’s tend to believe McGregor’s theory x which represents the carrot and the stick assumptions on which traditional organisations are based. This adopts the attitudes that workers are lazy and dislike work, most people need to be controlled, directed and threatened if the organisation is to achieve its objectives, that an average people must avoid responsibility, lacks ambition and motivation. Sainsbury’s offer employee’s bonuses if the company meets its objectives and such privileges as a staff canteen and a smoking area. This satisfies employee’s high-level needs. Theory x approach is adopted by Sainsbury’s as an adequate level of performance is to be maintained.
Likert identifies a four-fold model of management systems:
- System 1 – Exploitive authoritative
- System 2 – Benevolent authoritative
- System 3 – Consultative
- System 4 – Participative group
Sainsbury’s adopts the System 2 that Likert describes as a condescending form of leadership, motivation is based on a system of rewards, there is limited teamwork or communication; there is responsibility at managerial levels but not at lower levels of the hierarchy. This is true for most Sainsbury’s workers.
Organisational Structures
“Structure is the pattern of relationships among positions in the organisation and among members of the organisation. Structure makes possible the application of the process of management and creates a framework of order and command thought which the activities of the organisation can be planned, organised, directed and controlled.” Laurie J Mullins
According to Drucker it is the correct design of structure, which is of most significance in determining organisational performance. “Good organisational structure does not itself produce good performance. But a poor organisational structure makes good performance impossible, no matter how good the individual managers may be. To improve organisation structure…will therefore always improve performance”
Child also emphasised the importance of good structure. “The allocation of responsibilities, the grouping of functions, decision-making, co-ordination, control and reward – all these are fundamental requirements for the continued operation of an organisation. The quality of an organisation’s structure will affect how well their requirements are met”
Business can adopt a number of structures according to the size of the organisation, the environment in which it operates and the personal preferences of the owners and senior managers.
Sainsbury’s is a tall hierarchical structure and a wide span of control, because of the size of the organisation and the way the chain of command is controlled. (See appendix 1 & 2) Not just that it depends on the personal qualities of the managers employed by Sainsbury’s and also, the ability and training of subordinate staff, the strength of their motivation and commitment to their job. So it is very important to employ a good recruitment and selection so that ideal staff is found for the job.
Sainsbury’s has 3 different levels within its structure. These are:
- The technical level – this is concerned with specific operations and discrete tasks, with the actual jobs or tasks to be done, and with performance of the technical function. In Sainsbury’s this is the administrative process within the organisation. The technical level interrelates with the managerial level.
- The managerial level – is concerned with the co-ordination and integration of work at the technical level. Decisions at the managerial level relate to the resources necessary for performance of the technical function, and to the beneficiaries of the service and products provided. Decisions within Sainsbury’s at this level will be concerned with mediating between the organisation and its environment and possible the administration of the internal affairs. The managerial level interrelates with the community level.
- The community level – is concerned with broad objectives and the work of the organisation as a whole. Decisions at this level will be concerned with the selection of operations, and the development of the organisation in relation to external agencies and the wider social environment. In Sainsbury’s this is the board of directors including external representatives; in order to provide a mediating link between the managerial organisation and the co-ordination of work at the technical level.
“Neat structural organisation and good management are not synonymous. The contrary view gained creditability from the early work at McKinsey of Robert Waterman, Tom Peters and others, Waterman, however quickly saw that the true organisation wasn’t about structure, but about increasing the long-term capabilities of the business. That hinges fundamentally on people and relationships between them” Robert Heller
Sainsbury’s is a decentralised organisation; this is because of the increase in size over the years, the geographical separation of different parts of the organisation and the need to extend services and activities to remote areas. Sainsbury’s believes in both the vital importance of decentralisation for local entrepreneurship, and exploiting the advantages of a big company; Sainsbury’s say, “We want to be global and local, big and small, radically decentralised with central report and control. If we can resolve these those contradictions we can create real organisational advantage”
SAINSBURY’S AND TEAMS
“All of us know in our hearts that the ideal individual for a given job cannot be found…but if no individual can combine all the necessary qualities of a good manager, a team of individuals certainly can – and often does. Moreover, the whole team is unlikely to step under a bus simultaneously. This is why it is not the individual but the team that is the instrument of sustained and enduring success in management” Anthony Jay
At the top levels of the organisations, orders are passed down from above and the manager's role is to pass orders down the 'chain of command’. So at the lower levels, the store managers or team supervisors order and compel the worker to carry out the tasks demanded from the top.
Although to some extent the above is still the case at Sainsbury’s, but it is only true at high levels of the organisation. Because at the lower level Sainsbury’s has adopted a more of a “task culture” approach where management is team based. By doing this Sainsbury’s has:
- Provided greater worker flexibility and co-operation
- Achieved cultural shifts within the organisation.
- Improved problem solving and project management
- Helped them tap the talents of every one in the organisation
The main functions of these teams are project management and solve technical, political and social problems. These teams also perform a mediating function by linking the individuals with the company.
Sainsbury’s has realised that an effective team will achieve synergy and that a good team performance comes from a good team. As well as having a team based management system; Sainsbury’s also has a staff council at a local workplace level. This provides:
- An excellent method of two-way communication.
- Colleagues an opportunity of contributing more to the success of the business
- Management to consult on business-related issues and gain commitment to change.
In relation to the structure of teams within the organisation, Sainsbury’s is divided into teams consisting of people at the same management level. Each store & depot is a team with its own targets & each department in the stores is a team with their own goals. There is little communication between different teams, especially between senior management & junior employees. Other than passing orders down, head office has very little to do with its stores and depots. This is not good working practice according to Heller. He states the ‘making teamwork work’ should be the goals of a lot of organisations in order to make use of all employees’ strengths to improve the organisation as a whole.
For example, each Sainsbury’s store & depot has its own staff councils, which meet up six times a year to discuss about how the store is doing & whether objectives & targets are being met. The head office also has its own staff council, who also meet up six times a year to discuss how their department is doing & how they can do better in future. In addition to this, there is a national staff council, which meets up twice a year to discuss how the business is doing in general & any suggestions to improve the business.
Teams within Sainsbury’s are split in the following way;
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Board of Directors consisting of a chairman, executive & non-executive directors.
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Senior managers and Department heads within the head office.
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Managers and Department heads within the stores & depots.
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Workers within the stores & depots.
There is little communication between the first two levels & second two levels, other than orders passed down. This is not good as Belbin states this is not teamwork, just mere passing on orders. The last two levels work closely together and there is a lot of communication both ways as they work towards their own objectives.
In conclusion, the structure of teams within Sainsbury’s is typical of a large autocratic organisation, where teams are made up of people of a similar stature within the organisation with very little integration between teams of a different stature. This gives a certain amount of freedom for the junior employees as they can use their knowledge and experience to help run their store/depot with little objections from senior management.
So, weather it is a management team or a staff council team where even a checkout till operator can be a member of, it is very important to Sainsbury’s, because this is the very reason why Sainsbury’s is so successful. So, naturally its attitude towards its teams is only going to be of a generous and rewarding nature. These are some of the benefits:
- Save-As-You-Earn scheme for supermarket staff offers chance for company shares to be bought at a 20% discount.
- A profit-sharing scheme allows employees to have shares or cash. Roughly current or former staff owns 50% of the company’s shares and it is this scheme that is largely responsible.
- Under a staff discount scheme, employees receive a 10% reduction on products bought from the company.
- Long service awards are given to staff with 15, 25 or 40 years' service.
- Also, the company operates performance-related pay and bonus schemes for middle and senior managers.
RECRUITMENT AND SELECTION
Currently Sainsbury’s have a large number of stores through out the country, which cover a whole range of departments.
When Sainsbury’s recruit, they are looking for people with good communication skills, good customer service skills but also offer positions in clerical, stockroom and technical roles throughout many stores.
Drucker makes the point that there is no magic to good staffing decisions and no such thing as an infallible judge of people. “ If I put a person into a job and he or she does not perform, I have made a mistake, I have no business blaming that person, no business invoking the ‘peter principle’, no business complaining. I have made a mistake.”
In general, Sainsbury’s tend to recruit their staff a couple of months earlier. This allows Sainsbury’s to conduct theoretical and practical training to their employees. Sainsburys interviewing style complies with Simons two primary forms of interviewing:
- Behavioural interviews – i.e. “What did you do when…?” as a predicator of future behaviour
- Situational interviews - i.e. “How would you handle this situation?” to help assess future job performance.
Sainsburys use both types in their interviewing technique the also use open questions and reflective/remark questions. To ensure the get the best person best suited to the job. Sainsbury’s also make sure that body language and candidates reactions are noted down.
Sainsbury’s currently employ approximately 172,900 people. 60% of these are part-time and 40% full-time. 62% of employees are women. Sainsbury’s aim to be an employer for whom the widest range of people would like to work. A key element in achieving this is their equality and diversity policy. Sainsbury's also have a range of employment policies to ensure that their workforce is as representative of the wider community.
Staff often have a choice of work arrangements including: part-time, flexible contracts for retail employees, job share, home working, enhanced maternity leave/pay, paternity leave, career break schemes for childcare, special leave for personal development or caring responsibilities.
Sainsbury's policy is based on a commitment to:
- Provide workplaces where all staff feel valued, respected and able to contribute to the business
- Employ a workforce that recognises the diversity of current and potential customers
Through these pledges Sainsbury's aim that all staff can work without fear of discrimination, harassment and bullying and that all colleagues, job applicants, customers and suppliers should be treated fairly.
Sainsbury’s and New Deal
Sainsbury’s Personnel Managers from all their stores had attended the New Deal Presentation in order to make them fully aware and understand the elements of the New Deal. Sainsbury’s recognise that New Dealers in the 18 – 24 age group may require additional support and are therefore providing them with trained mentors.
To enable the Employment Service to be aware of Sainsbury’s recruitment processes, working environment, types of jobs on offer and duties required and many other aspects of Sainsbury’s they have provided every job centre with booklets.
Sainsbury’s is not using New Deal as a job creation scheme – all vacancies are real job opportunities. They are not offering work trial or ‘tasters’ specifically for New Deal, but this may still be an option as it is for over 6 months unemployed people currently. Stores make their own decisions on whether to participate in work trials or not. Sainsbury’s have also Welfare to Work Project Team that is co-ordinating their activities.
Creating a diverse workforce is also important to Sainsbury’s, a fact borne out by the involvement in equality and diversity initiatives of those at the highest levels of the organisation.
The aim of Sainsbury’s is to affect a cultural change that allows all female colleagues to move beyond the boundaries of what stereotypes define as their strengths, a move that has heralded the arrival of innovative new working arrangements.
Achieving a balance between home and work commitments is increasingly important in attracting talent to the organisation and while not necessarily a gender issue, it has enabled Sainsbury’s in many instances to retain people in roles by using creative solutions. In addition to a workforce that is 70% part time, they have part-time and job-sharing store managers and IT solutions that enable people to access information and communications from different locations other than their normal place of work.
PROPOSAL FOR IMPROVEMENT
Sainsbury’s state that they understand the nature and importance of teams, however this put into practice does not actually happen. The mangers tend to make all the decisions and delegate down to the subordinates; this isn’t good teamwork. Looking at what some of the theorists say about teams (below) it is obvious that Sainsbury’s does not follow good teamwork and the structure of the company also affects teams as Laurie J Mullins states:
“The general movement towards flatter structures of organisation, wider spans of control and reducing layers of middle management, together with increasing empowerment of employees, all involve greater emphasis on the importance of effective team working.”
Heller also contradicts how Sainsbury’s run their teamwork within the organisation:
Heller refers to the need for new managers and new methods, and includes as a key strategy for a new breed of managers in a dramatically changed environment; ‘making team-working work – the new, indispensable skill’
How people behave and perform, as member of a group is as important as their behaviour or performance as individuals. Not only must members of a group work well as a team but each group must work well with other groups. Harmonious working relationships and good teamwork help make for a high staff morale and work performance. Effective teamwork is also the element of modern management practices such as empowerment, quality circles and total quality management, and how groups manage change.
ACAS state that teamwork can improve competitiveness by:
- Improving productivity
- Improving quality and encouraging innovation
- Taking advantage of the opportunities provided by technological advances
- Improving employee motivation and commitment
So in order to improve the organisation Sainsbury’s change their structure towards flatter structures and wider spans of control, but also reduce layers of middle management and the giving their employees empowerment. Not only this but they must put a greater emphasis on team working within all areas of the organisation and create harmonious relationships between all sectors of management and their subordinates.