Management Function in Action

...

Currently employee performance in Lidl is managed using what they call a PDP, (Personal Development Plan), system. For each staff member, after a yearly appraisal is carried out, a PDP is created and agreed upon for each employee by themselves and the store manager. On the PDP, there are behavioural and performance specific goals to work on, which are reviewed on a quarterly basis. This process follows exactly the MBO process described above, and is also a step ahead of what many organisations are doing to performance manage their employees. Although the store manager interviewed may not be aware of the specific model this process follows, it is clear that he is aware of the benefits of such a system, as mentioned above.

Strategic Management is obviously a major part of the role of a top level manager, and although the interviewee wouldn’t have any input on such plans, an insight into their awareness of an overall corporate strategy would give an indication of the approach the organisation has taken. In addition to this it would be possible to ascertain how clear the strategy is throughout the organisation and how the goals of a store manager correspond with this.

Strategic Management can be described as, “what managers do to develop on an organisation’s strategies…they’re the plans for how the organisation will do what it’s in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals.” (Robbins, DeCenzo and Coulter, 2014, p.148).

It is clear from various media sources that the Corporate Strategy for Lidl Ireland follows a Growth model. From the huge gains in recent years in the Irish Grocery Market Share, to the increasing portfolio of stores throughout Ireland, the increased product range offered in store, and the current recruitment drive evident in all departments of the organisation, Lidl is a company rapidly expanding. Although an argument can be made for part of the reason behind this being that a discount retailer would naturally flourish during an economic recession, there has clearly been a Growth strategy put in place to develop all areas of the business. The store manager gave an insight into the reasons behind such a recent rapid growth in the company highlighted by the following statistics:

[pic 3]

(Kantar WorldPanel, 2015)

These statistics highlight the recent increased market growth Lidl has achieved compared to the same period in 2014. In the opinion of the store manager there was one main contributing factor for this, the people within the organisation. Some areas specifically mentioned were the training programmes developed within and by the organisation, as well as a change in culture within the company. Again the store manager mentioned that this was a clear objective stated openly by the board at different company events and throughout internal communication media.

What the store manager had mentioned in the interview can be backed up by what Lidl state on their website, “At Lidl we believe that training is the most important investment we can make in our people.” (Lidl, 2015).

One possible concern could be the same as one of the main criticisms of formal planning, this is that, “managers need to remain flexible and not be tied to a course of action simply because it’s the plan.” (Robbins, DeCenzo and Coulter, 2014, p.146). This said, for this to be confirmed further research with more senior managers within the organisation would be required.

In summary many of the store manager’s duties are determined by the systems they use, the boundaries the company set and the training they are given. There is no one specific model or process that is used to carry out their planning. Depending on the situation or task at hand, various information and systems are used as effectively as possible to reach the end goal. Having analyzed the different areas with the store manager it is clear that Lidl are using the best model or process available to them to carry out their role.

Organisation

According to Chester Barnard, “Organizing is a function by which the concern is able to define the role positions, the jobs related and the co-ordination between authority and responsibility. Hence, a manager always has to organize in order to get results”. (Management Study Guide, no date).

Each and every organisation aim to succeed, they all want to thrive and flourish yet is today’s economic climate this is becoming a lot more difficult. For the successful implementation of organisation as a function of management, following a few keys steps are critical. First of all identifying the activities that need to be performed is vital, and once this has been achieved it’s advised to group similar tasks together into units or departments, this strategy is known as departmentation. Following on from this the next step would be to identify the powers required and initiate a managerial structure or hierarchy. Implementing this structure may assist with reducing any cross over or duplication of tasks and help to reduce waste, whether this be on materials and stock, time or even effort. This will lead to more efficient performances within the workplace. Next a higher level organisational structure could be introduced. Every individual in an organisation ranging from entry level right up to senior management have the same goals, and that is for the organisation to succeed. If every managerial role is accounted for and the authority that each and all shall report to is clearly defined, smooth relationships and a thriving performance base is likely to be achieved. Having all roles explained and defined, while a clear organisational structure is constructed, there is no reason why performance should be affected by a lack of guidance or authority within the organisation.

[pic 4]

(Cultural Value)

“We place confidence in our employees and trust that they will complete all tasks to the best of their ability, and that they will develop ideas and suggestions that will benefit our business.” (Lidl.ie, 2015)

The above is taken directly from the www.lidl.ie webpage and listed as one of many Company Principals that Lidl seem to pride themselves on. It states that they trust, that they encourage development and that it doesn’t matter who you are or what level you stand at within the ranks of this organisation, because no matter what Lidl cares about all.

When speaking with the Store Manager it was clearly evident that the Company Principals are in fact practised