Topics: Loblaw Companies, Supermarket, Real Canadian Superstore Pages: 10 (3509 words) Published: May 25, 2013
Loblaw Companies Limited – research of an organization

Table of Contents
Administrative theory4
The environment of Organization5
Ethics at Loblaw7
“Back to the Best”- Loblaw’s strategic plan9
Structure of an Organization11
Human Resources Management13
Company’s weaknesses15
Used Sources16

For this paper I’ll try to research an organization I am familiar with, Loblaw Companies Limited and apply an administrative theory concept, discussing its strengths and weaknesses. “Loblaw Companies Limited is Canada’s largest food distributor and a leading provider of general merchandise products, drugstore and financial products and services. Through its various operating banners, Loblaw is committed to providing Canadians with a one-stop destination in meeting their food and household needs. This goal is pursued through a portfolio of store formats across the country. Loblaw is known for the quality, innovation and value of its food offering. It also offers Canada’s strongest control label program, including the unique President’s Choice, no name and Joe Fresh Style brands.” (1) Loblaw operates ten retailer banners: Loblaw's, Real Canadian Superstore, Real Canadian Wholesale, Atlantic Superstore, Dominion, Fortino's, Maxi, No Frills, Provigo, Zehrs, and Your Independent Superstore. The company also is diversified at retail, offering Canadian consumers financial services, home, auto, travel and pet insurance, and mobile phone and Internet services.

Administrative theory
In order to understand the administrative theory concepts at an organization, to my mind it is necessary to clarify the definition of an administrative theory, the history of its emergence. During the Industrial Revolution in the 19th century, need to develop management techniques that would integrate technology, materials, and worker activities in a productive and efficient manner rose. “Administrative theory focuses on the total organization and attempts to develop principles that will direct managers to more efficient activities. Prominent writers in this perspective were Henri Fayol, Max Weber, and Chester Barnard.” (2) Henri Fayol, in his book “General and Industrial Management” classified the study of management into several functional areas: planning, organizing, directing, coordinating, and controlling. Although, now 90 years old, his principles for successful managing, such as efficiency, order, stability, and fairness are still being applied by managers today. Max Weber sought to rationalize the organizations through bureaucratization, which is essentially a set of regulations to control the activity of the organization. As a manager by profession, Chester Barnard relied on his own experience in developing a theory of the organization. He “viewed it as a "cooperative system" of individuals embodying three essential elements: willingness to cooperate, a common purpose, and communication. The absence of any one of these three elements would lead to the disintegration of the organization, according to Barnard. He viewed the distribution of authority as an important process within the organization. However, he felt that the source of authority did not reside in the person who gave the orders; rather, authority resided in the subordinates who could choose to either accept or reject directives from their superiors. Subordinates would assent to authority when four conditions were satisfied: 1) they could and did understand the communicated directive; 2) they believed that the directive was consistent with the purpose of the organization; 3) they believed that the directive was compatible with their own personal interests; 4) they were mentally and physically able to comply with the directive. This view of authority has become known as acceptance theory.” (2)

The environment of Organization
Business environment consists of the external environment, the task environment and the...
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