BTEC HIGHER NATIONALS CERTIFICATE AND DIPLOMA IN BUSINESS

Unit Code:
H/601/0551
Unit Title : Organisations and Behaviour
Lecturer:
Assignment No: 3

Assignment Title: Organisations and Behaviour .Greggs Plc.

Principle Outcomes Assessed:

Understand the relationship between organisational structure and culture.

Understand different approaches to management and leadership.
Understand ways of using motivational theories in organisations.

Date Set:

Date Due:

ASSIGNMENT INTRODUCTION
In this unit you will learn about the behaviour of individuals and groups within
organisations. You will explore the link between the structure and culture or
organisations and how these impact and influence the behaviour of the workforce.
The structure of a large multi national company such as Unilever with thousands of
employees worldwide will be very different from a small local business with 20
employees.
The way in which an organisation structures and organises its workforce will impact
on the culture that develops within the organisation. This system of shared values and
beliefs will determine and shape the accepted patterns of behaviour of an
organisations workforce. The culture in organisations that differ in size, for example or
are from different sectors of the economy can be very different.
The structure and culture of an organisation are key factors which contribute to
motivating the workforce at all levels of the organisation. The Japanese were
instrumental in developing a culture of Kaizen or continuing improvement through
teamwork in their manufacturing industry. This culture has now been exported
around the world and encapsulates the way in which structure and understanding of
culture contribute to patterns of behaviour in the workplace.
This unit will develop you to understand the behaviour of people within organisations
and of the significance that organisations design has on shaping behaviour.

Case Study Assignment

Greggs The Baker The Real Deal?
Greggs Plc emerged in the 1960s when Ian Gregg developed his fathers bakery
business into a multi-store chain. Today it is a byword for low prices. While
sandwiches at Marks & Spencer hover around the 3 mark, at Greggs 1 is the
starting point and 1.99 a gross self-indulgence.
With over 1,600 shops across Britain, Greggs has far more outlets than Starbucks,
McDonalds and every other food-related chain. It is highly profitable, with profits in of
2013 of 51 million; a slight fall on 2012.It is the biggest bakery chain that employs
over 20,000 staff throughout Britain.
A November 2009 article in The Times put the companys success down to four
things:

Understanding its value proposition

A focus on men, with blokey products such as pies

Great locations

Unerring Brutishness, so that even Chicken Tikka will be in the form of a

(British) pasty

Recognising and valuing its employees all levels.

Actually that does a disservice to the core strengths of Greggs, while ignoring some
strategic mistakes. Among past mistakes was a move to Europe, to Brussels to be
precise, where several outlets were opened and flopped. To managements credit,
that attempt at market development was not repeated. Another error was an attempt
to go upmarket to produce posher sandwiches at premium pricing points. Best
forgotten.
Long-standing core strength has been the Greggs culture. When most plc bosses
focused on shareholder value in the 1980s and 1990s, Ian Gregg made clear his
contempt for making shareholder profits the main objective. He believed success
comes from focus upon staff and on customers. Get them right and profits will come.
He told his shareholders that they were his third priority. Recognising the contribution
staff makes at every level is key to the running of any business
The benefits of this history were clear to ken McMeikan the Chief Executive who was
in charge from 2009-2013. When he first took over he visited many shops and several
of Greggs regional bakeries. The Guardian wrote, in 2010 that:
The most striking thing, when Ken McMeikan, the chief executive of Greggs, shows
me around the company's large bakery just outside Leeds is how unintimidating he
seems. Workers smile and say hello. Women are standing on either side of a
conveyor belt, icing cupcakes in neat coils, and they laugh as they remember how
they tried and failed to teach McMeikan how to do it once. "What I liked, as soon
as I took over," says McMeikan as we wander over to where two men are loading
trays of chocolate muffins on to a trolley, "is how there isn't an 'us and them' feeling."
Mc Meiken 45, served in the Royal Navy as an electronic welfare operator and he
says every member of the ships company played a vital part Recognising the
contribution staff make at every level is key to the running of any business. Mc
Meikan was replaced by Roger Whiteside in 2013, who had worked at Greggs in a
Director role and was seen as his natural successor. Greggs have set targets to
involve two thirds of their staff in contributing their views on issues affecting them.
This might suggest that only a minority currently are involved in having their views or
ideas recognised.
Putting this into practice, includes making unannounced visits to at least half a dozen
stores by Whiteside to listen to ideas from his 19,000 staff and to let them know how

much their ideas are valued He also looks at the way customers are greeted, speed
of service and presentation of products as Greggs standards are high. He joins team
meetings in the stores to listen to ideas, as well as keeping them informed of the
companys plans for expansion. One key strategy of refurbishing Greggs shops with
new layouts giving space for seats and extended range of sandwiches, drinks reflects
feedback from staff and customers ideas for improvements. Greggs during 2013 have
already made store improvements throughout the country after listening to
employees.
Whiteside like Mc Meikan works several full shifts in Greggs shops doing everything
from serving to sweeping floors. This is another way of keeping in touch with the front
line
The health and wellbeing of our people is of paramount importance to Greggs. They
have robust Health & Safety controls in place, designed to protect their people at
work.
They want employees to feel rewarded, valued and engaged in the business. We
want all members of our Greggs family to share in our success when our business is
doing well, that is why every individual working at Greggs is eligible for profit share,
paid twice a year.
They also offer SAYE (Save as You Earn) schemes, an annual Employee Opinion
Survey where we encourage their staff to tell us what it's really like working for
Greggs and how they can improve, plus we have a wide range of family friendly
policies which recognize family rights and help our people achieve a sensible flexible
work-life balance.
Greggs promote equal opportunities and encourage diversity and inclusion via
policies that ensure they do not discriminate on the grounds of age, gender, ethnic
origin, religion or disability
They want to train and develop employees at every level to ensure they are
successful in their roles and can progress within the company. We offer a wide range
of training and skills courses and are very proud that a high number of new
appointments are internal promotions, says Mc Meikan
Mick Duffy, 60, lives near the bakery and is retiring at the end of the month after 41
years with the company. He started frying doughnuts, and is now in charge of the
bakery's recycling services stale bread is sent to make animal feed, and he even
saves the metal handles from plastic tubs to recycle (a tonne earns 10). The shops,
too, don't throw many away unsold pastries and sandwiches are given to local
charities and hostels at the end of every working day. "When I joined, I found it
strange because even though Greggs is a plc with 19,000 people, it still felt like a
family business," says McMeikan. "It's because of people like Mick, who have been
here for years."
It is proving hard to find anyone who has anything bad to say about Greggs, though
the turnover of staff can be high in some areas, so not everybody can be happy
working there. Workers in its shops are paid above the minimum wage, but not by
much. Still, Joe Marino, general secretary of the Bakers, Food & Allied Workers
Union, says he has no problem with the company. "Turnover of staff is often high in
retail, but Greggs have fairly decent terms and we hold them up as the example. We
don't hear the horror stories we do about other companies."
One thing that hasn't changed, says Ian Gregg (now 71), is the company's sense of
social responsibility 10% of the profits are shared among the staff every year. The
business has been based on the philosophy of look after your staff properly and
they'll look after the customers, and together, they'll look after the business. I don't
know why more companies aren't like that." He also set up the Greggs Foundation,

its charitable arm, in 1987. "It seemed the ethical thing to do," he says. "I had worked
in Newcastle, Glasgow, Manchester and Leeds, where you did see a lot of urban
poverty. If your business is doing well within a community, you should put something
back into it. It's enlightened self-interest."
Greggs are reorganizing there supply chain, and have stated in there 2010 annual
report that they will ensure there supply chain team supervisors will share important
information to them Does suggest there has been some communication issues with
previous reorganizations or takeovers of smaller chains.
The foundation gives 1.1m to local charities, especially in the north-east. There is
even a hardship fund, where individuals can apply, through social services or a
housing association, for up to 150 to buy essential appliances or children's clothes.
Whiteside talks passionately about Greggs' breakfast clubs. The company spends
225,000 a year funding free morning meals in 135 primary schools. It provides the
set-up costs (catering toasters, plastic plates), puts the school in touch with a local
Greggs, which donates the bread, and gives money each term usually around
500, but up to 1,000 for juice, fruit, milk and cereal. The scheme started in
Newcastle and has gradually moved south, running only in schools in disadvantaged
areas; another 20 clubs are to open in the new school year.
Back in Leeds, meetings with all the employees, he says all businesses should have
a social conscience. "The reality is the government hasn't got the money, there are
going to be some very painful cuts. Unless businesses that are strong and growing
are prepared to do something, there's going to be a gap," he says. "There has never
been a time in this country where we've needed businesses to do more." It is easy to
forget that Greggs is still just a business, with a bottom line and shareholders to
protect, but it seems like a good way to run a company, and perhaps it is showing the
way, one sausage roll at a time.
(Sources: The Guardian August 11th 2010; The Sunday Mail May 29 2011, Greggs website
February 2011; The Times 2009) Annual report 2013)

TASK ONE
Understand the relationship between organisational structure and culture. (LO1).
Produce a report between 1500 and 2000 words to:o
o
o

Compare and contrast Greggs organisational structure and culture with

another organisation of your choice. (1.1)
Explain how the relationship between Greggs organisations structure and
culture can impact on the performance of its business. (1.2)
Discuss the factors which influence Greggs Chief Executive behaviour at
work. (1.3)

TASK TWO
Understand different approaches to management and leadership. (LO2).Prepare a
PowerPoint presentation to:o
o
o

Compare the effectiveness of different leadership styles in different

organisations. You should use Greggs as one of the organisations. (2.1)
Write a two page report-style document (must not be shorter than two pages)
explaining how organisational theory underpins the practice of management.
(2.2)
Extend your report by two pages in length, by evaluating the different
approaches to management of Greggs Plc and other different organisations.
(2.3)

TASK THREE
Understand ways of using motivational theories in organisations.(L03)
o

o
o

Write a two-page report-style document discussing the impact that different

leadership styles may have on motivation in organisations in periods of
change. You will need to research examples, which could be your own
organisation, and reflect the impact of changes on employees.(3.1)
Compare the application of different motivational theories within the
workplace. Using the Greggs case study compare Whitesides approach
compared to other businesses.(3.2)
Evaluate the usefulness of a motivational theory, such as used at Greggs for
managers. (3.3).

TASK FOUR
Understand mechanisms for developing effective teamwork in organisations.(L04)
o

In a report of no less than 2500 words, explain the nature of groups and group
behaviour within organisations.(4.1)

Extend your report, by discussing factors that may promote or inhibit the
development of effective team work in organisations. (4.2).
Be sure to include examples from both small and large organisations.
Evaluate the impact of technology on team functioning within a given
organisation.(4.3) Write a memorandum to the Chief Executive of Greggs Plc
to what extent technology has benefited teams throughout the organisation .

Essential Reading
Management and Organisational behaviour. Laurie J.Mullins
The Truth about Managing People. Stephen P.Robbins
Organisational Behaviour An Introductory Text .Dr Andrzie Huczynski and Prof Bacon
Websites
www.greggs .com
www.the Guardian
www.biz ed
Tutor Signature:

Mark Pemberton

Internally Verified:
Date:
Externally Verified
Date:
Student Name

Date

Assessor Signature

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LEARNING OUTCOMES AND ASSESSMENT CRITERIA

Learning Outcomes
LO1 Understand the relationship
between organisational structure and
culture

LO2 Understand different approaches to

management and leadership

LO3 Understand ways of using

motivational theories in organisations

LO4 Understand mechanisms for

developing effective teamwork in
organisations.

Assessment criteria for Pass

1.1 Compare and contrast different
organisational structures and
cultures.
1.2 Explain how the relationship
between an organisations
structure and culture can impact
on the performance of the
business.
1.3 Discuss the factors which
influence individual behaviour at
work.
2.1 Compare the effectiveness of
different leadership styles in
Different organisations.
2.2 Explain how organisational
theory underpins the practice of
Management.
2.3 Evaluate the different
Approaches to management
Used by different organisations.
3.1 Discuss the impact that different
leadership styles may have on
motivation in organisations in
Periods of change.
3,2 Compare the application of
different motivational theories in
the workplace
3.3 Evaluate the usefulness of a
Motivation theory for managers.
4,1 Explain the nature of groups and
group behaviour within
Organisations.
4.2 Discuss factors that may promote
or inhibit the development of
effective teamwork in
Organisations.
4.3 Evaluate the impact of technology
on team functioning within a given
Organisation.