Lidl Organisational Structure

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Originally published Oct 02, 2018, updated Feb 24, 2021
Lidl Organisational Structure

Lidl is a German structured multinational company. Lidl is the marked down super market. All over the world round about 8000 branches of Lidl are in working now. josefsherfas is basic creator of the Lidl, the first store of Lidl was established in 1930. Lidl marked down rate schemes provides it more room for growth and after some period its moves across the restrictions of Germany and today over 20 contries, lidl has its stores. In UK only above then 5000 stores are functioning. The Lidl has the big competition with the plantation foods, which is the main supplier of frozen foods in britain market. The last year revenue produced by the Lidl was the 70 billion USD. A hurdle in the Lidl increase of the performance and the market share is the criticism of lidless treatment of its personnel. Trade union of Germany and other countries, where the Lidl is functioning has criticized the misconduct habit of the management with the staff. No rest to the pregnant women. A black reserve on the Schwarz retail company published first in the merman and related that it is also transfer in the English. The Lidl is the one company which force its employees to focus on the per part rate into their stores. English different publications have notified this think that the excess work is taken from the professionals and staff members. No extra pay for the working following the obligation demining off. The performance management is the Lidl is too vital. Here really the only employees will work for the money they have no respect so the performance management study on the Lidl gives the better information as compare to others.

Learning end Result 1.

1. Potential Benefits And Pitfalls

1. 1 What is SPM?

SPM is sales performance management, to manage the deal system of the companies what the sales has achieved, that which was the taergets, what are the success or where we lack inside our achievements, the way the more sale may be accomplished, each one of these functions comes in the sale performance management. As the control on the management and the and the sales activities will be increase as it'll be good for the business to enhance the sales.

1. 2 Why Is PM Essential?

It's a simple to say that check the performance of the company, and improve it more. But this actual working is too critical; the complete performance management process contains the six steps

  • Step 1 Goals Arranged Align With Higher-level Goals

First of the goals are resolved by the top management, the management make these goals the perspective of the business, and designed the regulations through which they need to achieve the goals of the company.

  • Step 2 Behavioral Targets And Benchmarks Discussed

In the second step the behavioral anticipations and requirements are discussed, responsibilities are given; targets are resolved down for each department and clubs. The expectations and the standards when settled down then the company management try starting focus on those policies to attain the organizational aims or settled goals.

  • Step 3 On Heading Performance Responses Provided During Cycle

An ongoing performance check is the key job of the management to have increase in the efficiency of work. The company has main give attention to the targets but here the business management make an effort to improve the work also as the business achieve the desired results not in the beginning but by the end of your day.

  • Step 4 Performance Appraised By Manager

The next thing of enhance the performance the manger must appraise the task of the workers and present them drive about their work. Desire plays a vital role in the development of the company

  • Step 5 Formal Review Time Conducted

A whole researched of the financial period is conducted which shows the performance of the workers in the company. The business management evaluates the performance of the personnel against the settings of their successes in the whole financial period.

  • Step 6 HR Decision Making (e. g. Pay, Campaign Etc)

HR decisions that what bonuses will be given to the employees, who performed so well and which was unsatisfactory, an effective incentive system maintaining is the function of HR section which not ever lose the employees interest.

It's not an easy task to check on the staff, their performance, their achievements, their anticipations and placing the reward for them to remain them stimulate on the doing work for the company. So this is not a fairly easy process that why people say that the performance management is vital.

1. 3 Continues Improvement And Working With Models

A continues improvement is required to the personnel with the working environment inside the organization. An on job training program is the area of the management work. Management not only observes the work of the employees but also give them the on job tainting which stimulate them of the work and in the advancement of the efficiency of the task. A goes on improvement not only gives the desired results at the end of the day but also improve the efficiency of the personnel.

2. Promoting Alignment

To increase the performance of the personnel and inspire them of the goals of the company is the key function of the performance management. Mc Kinsey 7-s shape work has given the seven elements on which if the management work then your efficiency in the work can be obtained.

2. 1 MC Kinsey 7-s Body Work

The seven elements express by the mc Kinsey are the framework, system, style, staff, skills, strategy, distributed values. Relating to mc Kinsey these are the seven elements which can increase of decrease the performance management of the company. The structure of the company shows that which kind of the environment in the company in the Lidl a boss and worker framework is in function, the system Lidl is using the discounted offering system and the same all the retail stores has, style is buying style rather than request, no value of the workers as in staff, skill be sure not doing good by the Lidl, the strategy what the company has, and what's the common in these all and how these all are can be united main function of the management. The Lidl strategy is merely to earn income no any policy for the welfare of the personnel. Lidl has designed the composition for the organization as the manager and worker composition. The management believes that the employees are just like machines no respect for them. This major reason that the Lidl above then 8000 branches cannot get the good market reputation. As the workers here only work for the money rather than for the company.

2. 2 Problems with Alignment

It's difficult to help make the company goals to the employee goals, however in case of the Lidl it is impossible as the Lidl management not think the employees as a part of the company, the management feel that money is the whole thing for the personnel while the money of the employees cannot lead to the organizational goals, this the main reason that the Lidl staff turn over percentage is greater than any other corporation.

2. 3 Organizations Strategy

Lidl gets the strategy of earning profit and the opening a lot more new stores to capture the more market stocks by accessing them near to their homes. Now the Lidl this strategy is going to slap down itself as after opening the aforementioned then 8000 stores company still not get the positioning on the market as the other has taken.

2. 4 Visions, Objective And Promoting Alignment Laterally

The company has the vision to be one of the top brand discounted ultra stores. To complete this eyesight the company gets the coverage of the opening new stores as the new store is opened up in came down. The new stores opening will be the new strategy of the business to capture the market more and gain access to the customers near homes. The Lidl name is famous with discounted store but the discount is never involves seen. A number of the faithful customers who only goes to the Lidl as there purpose are just to earn the profit rather than to receive the more proposal and permanent romantic relationship with the management and the clients.

3. Models and Approaches

The models and various approaches that shows how to maintain the prerace management inside the business.

3. 1 MBO Model

MBO model show that the performance management check and improvement is a goes on process in starts with the objective setting up, then thee performance is assessed of the worker, then performance is assessed, then your rewards are resolved down for the personnel then again the process of setting new aims, with some improvement and again insurance policy development, employees implementation work, monitoring, analysis and rewards taking place process.

3. 2 EFQM

EFQM model has the same strategy as the MBO model shows, authority take the decisions, place goals, middle management make or try to make the all decision and established goals possible, process continues on daily bases, analysis of the task is assessed and the final reward is released on the bases of this evaluation. After the completion of the the again process will start and the development and learning's will come in the process.

3. 3 BSC Model

BSC model are a symbol of the balance score greeting card model this supply the help to the management in the keep up with the all division factions balance with the eye-sight and strategy of the company.

It gives the idea to the management about the exterior stockholders benefits and expectation, creativity and development of own staff of the business, maintain the funding for the actions or the activities performed based on the available funding, and improvement of process by which the organizational changes will operate now.

3. 5 How The Models Are Helpful In Interacting With The Organizational Needs

All the above mentioned models supply the idea about what are the primary elements that are playing a vital role in the improvement of the comany functions. If the firms will continue to work on each one of these elements then the improvement in its performance is not difficult. But this thing is not understand by the management of the Lidl and employees dissatisfaction leading the company towards down fall.

Engaging People And Expanding Performance

  • Engaging people

The very first thing which the companies do in order to improve the performance of the employees. In past the specific and group work was proffered however now the team work is proffered by the organizations as they provide the increase to the firms in attaining their goals a solid team work provides greater results from any specific or grouping work. In this particular proposal the management gets the benefit as the staff then help the team an understanding showing creates new ideas for the management to improve the efficiency of the company. However in the Lidl the management gets the teams in the task environment but a solid check up on the team giving them not ground to grow professionally.

  • Developing people, performance and teams

Employee's develpment is the necessary factor in this changing world. This not only boost the performance of the staff but also supply the new ideas, brings the desire in the groups and the better results are obtained. The team performance of the companies depend upon personnel if the personnel are not comfort, and can unaware from the new ways then how they will perform more better for the company. Lidl management will not understand why thing; the management believes that the employees must have only knowledge about the merchandise and nothing at all else. He or she has to only make deal in the stores. The management is aware what they need to do for the success.

  • Handling under performance

Under performance evaluation is the key process of the management. It really is discovered that if the employees are perfuming well the business think it's the primary resource for the business if the workers goes persists down in progress then the management take two decisions first that largely the cooperative management decision is that they try to determine the problem and then try to solve that problem. But in the Lidl the management never provides chance and put the employees right out of the organization. The thinking that the Lidl management would be that the worker which cannot develop itself then your time and training of this staff member is the waste of money and time too.

Learning Outcome 3

Motivation and Influence

Motivation level on the list of employees always exists as the motivations keep moving the workers on the work.

  • Traditional determination models

In traditional motivational model two ideas one is of mallows hierarchy theory and second is the X and Y theory.

Maslow's Hierarchy Theory

Maslow defends the five kind of need of the human being, according to Maslow the necessity of the human evolved when the first need is satisfied. He said the first human need is the physiological need that is the basic need of food and fabric, when it full fills then your human take into account the shelter and security that will come in the need of security, when both of these ideas are full loaded then human take into account the social respect and the value from the society this is the social need and when it full loaded then human goes for the necessity of self esteem, as the primary person in the contemporary society that every one offers me the worthiness and every important decision about the population must be will come in my consultation, final need is the need of the home actualization need that show the necessity of the extreme high where the person think that I am the only one and there is no-one like me, I am the best from the others, in the business same kind of thinking has within your brain of the individuals, first think about salary, then team permanent member, then team head, then manger and last the Managing director. Main function of the business management here to judge the expectations of the workers, give them the targets against their objectives and if indeed they achieve success in accomplishment then provide them with the committed praise.

Theory X and Y

In the theory X and Y mc gregor, s described the two group of employees, type X are those who work your money can buy, not thinking about the duty as the management of the Lidl think and that is the reason that the Lidl has the almost all of the staff which only work for the money and no think about the company. The next category people are those who want to work, sensible, and concentrate on achievements but in the Lidl these kinds of persons are leaving the comany as they haven't any value because of their work.

The Vibrant of Motivation

Expectancy Theory

Expectancy theory is approximately the objectives of the personnel against their work. As the management will performed well in the measuring the expectation of the personnel and praise them according to that thee management will take the more output in their work. As the expectation are the source of desire for the employees but however this source is going down in the Lidl as the management not take into account the objectives of thee employees they think about only their work and profit of the business.

Motivation For Team And Organization

When the rewards receive this gives desire to the personnel, in the team work groups got the reward. This system boosts the performance of the teams and gives them floor to develop more. But in the Lidl there is certainly nothing anything like this. There are just teams and no question of rewards.

Influence and Persuasion

When a team or staff member got appreciation on their work then your other staff or teams affect and got inspiration to do better work that next time the compensation come to their team

Leading with Political Awareness

Political awareness is essential for the team leaders as they need to motivate theirs elf and their workers. The motivation that a position offers in its words is essential for the comany team larder.

Learning Result 4

Monitoring, Measuring And Enhancing Performance

Monitoring and Measuring Performance

A proper monitoring the task of employees is the function of the management for the sack of greater results in the performance of the company. Lidl gets the monitoring plan where they check the performance of the team innovator and also the team members, a proper evaluation did by the management and an on job training is given that how you can make it better. Within the other companies these exact things done and from then on a record for the reward system is made.

Team Performance Meetings

Team performance conferences are the important thing for the team head if there team performance is low. The every team leader has to defend itself by strong evidences, the management determines after that the actual further strong actions has to decide on improve the performance of the team more as compare to past record. In the Lidl the team leader also has to describe if the sales drop or various other major issue occurred.

Performance Appraisal

In the Lidl performance appraisal are close to end. The management think that the staff work for the money and nothing else, they involves work you provide them with the money with their work and the task is end. They haven't any desire for the comany so the company has no need to take the intrest in the expectations of the personnel.

Findings and Recommendations

The above record on the Lidl implies that the German company operating available from a long time. The company has continued to be the policy to have the workers under the order. No expectation development will come in the mind of the employees rather than the pay back system grows up. The Lidl problem of not getting market show as the business wishes is having less performance management. The company workers are looking towards thee management and management only provides money and feels that the whole responsibilities are finished. A proper incentive system and the realization to the staff that they are who owns the company and the company management gives the aspiration to the ideas of the employees then the improvement can occur in any other case the business will maintain the same conditions and may maintain the coming future its revenue runs more down.


The statement of performance management on the Lidl shows that his management of the Lidl is under performance. The purpose of the business with this management structure and style can't be achieved or if it say as impossible then it'll be right. Above then 8000 stores and only the earnings of $ 7000 million is the main example of its success. And this income by the financial point of view of the company will need falls in information in the coming period. The comany now gets the need to improve the composition and style of the working, a location has been developed where in fact the workers got the motivations and the start to see the growth chances, a place where the advice of the workers given proper appreciation. The comany has to changed its insurance policy to starting new stores and spend the amount of money on the employees benefits as this will create the more income for the company as you leave the business on growing the amount of stores rather than the sales and performance. If the correct management framework is developed then he Lidl can achieved its set in place targets from these stores and there is no need to open the greater branches. It really is good to develop the business but very first thing come is to maintain the position in the market and then develop.

Tasha Kolesnikova
Content Team Member

I write articles and do SEO-optimisation here at Studybay. I'm obsessed with creating content both people and Google love, surfing in Portugal, and dancing Jazz-funk.