BTEC Business Level 3 – Unit 6: Principles
of Management
Case Study Report: GSR Food Ltd
1. Introduction
Management plays a vital role in determining the success or failure of any organisation.
Effective management ensures that employees are motivated, operations run efficiently, and
organisational goals are achieved. In industries such as food manufacturing, management is
even more important due to strict regulations around food safety, quality control, and
hygiene. Poor management can lead to serious consequences, including reduced productivity,
increased costs, and loss of contracts.
This report focuses on GSR Food Ltd, a medium-sized food manufacturing company located
in Southeast London. The report analyses key management issues faced by the business and
evaluates how these issues impact employees, productivity, quality, and profitability.
Relevant management theories and practical business methods are applied to suggest realistic
and effective solutions. The report also identifies the strongest overall recommendation that
would have the greatest positive impact on the organisation’s long-term success.
2. Overview of GSR Food Ltd
GSR Food Ltd operates in the ready-meal food manufacturing industry, producing chilled
and frozen meals supplied to supermarkets and catering organisations across the UK. The
ready-meal market is highly competitive, with customers expecting high-quality products at
low prices. In addition, the food industry is strictly regulated, meaning businesses must
comply with food safety laws, hygiene standards, and quality assurance procedures.
As GSR Food Ltd has grown, several management problems have emerged. These include
poor leadership practices, low employee motivation, limited training and development, and
high staff turnover. Many of these issues are people-related and suggest weaknesses in human
resource management and leadership. If these problems are not addressed, GSR Food Ltd
risks reduced efficiency, inconsistent quality, and potential loss of contracts with major
clients.
3. Organisational Goals
, The main goals of GSR Food Ltd are focused on both operational performance and long-term
sustainability. These include:
• Improving productivity and efficiency on the production line
• Maintaining high food quality and safety standards
• Reducing employee absenteeism and staff turnover
• Increasing employee motivation and job satisfaction
• Controlling costs and improving profitability
• Retaining contracts with supermarkets and catering clients
Achieving these goals requires effective leadership, motivated employees, and a skilled
workforce. Management decisions play a central role in aligning employees with
organisational objectives.
4. Management Issue 1: Autocratic Leadership Style
Issue and Impact
One of the main management issues at GSR Food Ltd is the use of an autocratic leadership
style. Senior managers make most decisions without consulting employees, particularly
production-line workers. Employees are expected to follow instructions without questioning
or contributing ideas. While this leadership style may allow decisions to be made quickly, it
has created several negative effects within the organisation.
Employees feel undervalued and ignored, which has lowered morale and reduced motivation.
Poor communication between managers and workers means problems on the factory floor are
not always identified early, leading to inefficiencies and errors. This has contributed to higher
absenteeism and staff turnover, as employees feel disconnected from the organisation.
According to Elton Mayo’s Human Relations Theory, employees are more productive when
they feel valued and included, suggesting that the current leadership approach is limiting
productivity and harming organisational culture.
Solution
To address this issue, GSR Food Ltd should adopt a more democratic and consultative
leadership style. Managers should involve employees in decision-making by holding regular
team meetings, encouraging feedback, and using suggestion schemes. Line managers should
be trained to communicate effectively and explain decisions clearly rather than simply giving
orders. One-to-one meetings and performance reviews could also be introduced to allow
employees to discuss concerns and ideas.
This approach is supported by McGregor’s Theory Y, which assumes employees are
motivated and capable of taking responsibility. Improved leadership would increase trust,
improve communication, and encourage teamwork. As a result, employee morale would
improve, productivity would increase, and staff turnover would reduce.
of Management
Case Study Report: GSR Food Ltd
1. Introduction
Management plays a vital role in determining the success or failure of any organisation.
Effective management ensures that employees are motivated, operations run efficiently, and
organisational goals are achieved. In industries such as food manufacturing, management is
even more important due to strict regulations around food safety, quality control, and
hygiene. Poor management can lead to serious consequences, including reduced productivity,
increased costs, and loss of contracts.
This report focuses on GSR Food Ltd, a medium-sized food manufacturing company located
in Southeast London. The report analyses key management issues faced by the business and
evaluates how these issues impact employees, productivity, quality, and profitability.
Relevant management theories and practical business methods are applied to suggest realistic
and effective solutions. The report also identifies the strongest overall recommendation that
would have the greatest positive impact on the organisation’s long-term success.
2. Overview of GSR Food Ltd
GSR Food Ltd operates in the ready-meal food manufacturing industry, producing chilled
and frozen meals supplied to supermarkets and catering organisations across the UK. The
ready-meal market is highly competitive, with customers expecting high-quality products at
low prices. In addition, the food industry is strictly regulated, meaning businesses must
comply with food safety laws, hygiene standards, and quality assurance procedures.
As GSR Food Ltd has grown, several management problems have emerged. These include
poor leadership practices, low employee motivation, limited training and development, and
high staff turnover. Many of these issues are people-related and suggest weaknesses in human
resource management and leadership. If these problems are not addressed, GSR Food Ltd
risks reduced efficiency, inconsistent quality, and potential loss of contracts with major
clients.
3. Organisational Goals
, The main goals of GSR Food Ltd are focused on both operational performance and long-term
sustainability. These include:
• Improving productivity and efficiency on the production line
• Maintaining high food quality and safety standards
• Reducing employee absenteeism and staff turnover
• Increasing employee motivation and job satisfaction
• Controlling costs and improving profitability
• Retaining contracts with supermarkets and catering clients
Achieving these goals requires effective leadership, motivated employees, and a skilled
workforce. Management decisions play a central role in aligning employees with
organisational objectives.
4. Management Issue 1: Autocratic Leadership Style
Issue and Impact
One of the main management issues at GSR Food Ltd is the use of an autocratic leadership
style. Senior managers make most decisions without consulting employees, particularly
production-line workers. Employees are expected to follow instructions without questioning
or contributing ideas. While this leadership style may allow decisions to be made quickly, it
has created several negative effects within the organisation.
Employees feel undervalued and ignored, which has lowered morale and reduced motivation.
Poor communication between managers and workers means problems on the factory floor are
not always identified early, leading to inefficiencies and errors. This has contributed to higher
absenteeism and staff turnover, as employees feel disconnected from the organisation.
According to Elton Mayo’s Human Relations Theory, employees are more productive when
they feel valued and included, suggesting that the current leadership approach is limiting
productivity and harming organisational culture.
Solution
To address this issue, GSR Food Ltd should adopt a more democratic and consultative
leadership style. Managers should involve employees in decision-making by holding regular
team meetings, encouraging feedback, and using suggestion schemes. Line managers should
be trained to communicate effectively and explain decisions clearly rather than simply giving
orders. One-to-one meetings and performance reviews could also be introduced to allow
employees to discuss concerns and ideas.
This approach is supported by McGregor’s Theory Y, which assumes employees are
motivated and capable of taking responsibility. Improved leadership would increase trust,
improve communication, and encourage teamwork. As a result, employee morale would
improve, productivity would increase, and staff turnover would reduce.
