Assignment Help on Organization Behaviour: Tesco
Understanding the different approaches to management and leadership
2.1 Leadership Styles in TESCO and its Contribution to achieving the organizational goals
In Tesco, the managers follow Autocratic, democratic, and Laissez-faire leadership styles. They apply these three leadership styles in the different layers within the organization’s operational structure. The following table will demonstrate the application areas for the identified three leadership styles, along with the benefits that Tesco has received.
Leadership Style | Application Area | Benefit/s |
Autocratic |
Implementation of the Decisions or policies within the organization. | Uniformity of the command and the controlled implementation of the decisions or policies. |
Democratic |
During the development of the policies like stock clearance or discounts.
During the planning of the new ideas. |
It motivates the employees and encourages demonstrating their creativity. It increases the employee’s attachment to the organization. |
Laissez-faire |
In the development of the broader departmental plans, such as training needs and training budget fixing by the departmental managers, | Increases the departmental manager’s and senior member’s attachment to the senior managers. |
Table 1: Leadership Styles in Tesco along with the application area and benefits
(Source: Jeong & Choi, 2014, pp.105)
2.2 Evaluation of the different management approaches adopted by the competitors
Name of the Company | Management Approach followed | Pros | Cons |
ASDA |
Management Science Approach |
It allows for solving issues through mathematical tools. It covers all areas of decision-making and human behaviours. | Quantifying the managerial activities is a tough job. It requires a higher level of expertise in the decision-making. |
Morrison’s’ |
Human Behavior Approach |
It usages human relationships and behaviour and helps increase human bonding within the organization. | Relating the management issues with the human behaviour approach is untenable. |
J Sainsbury |
Social Systems Approach |
It develops cultural bonding within and outside the organization. This relationship helps to grow the business and loyalty to the organization. The higher cooperation within the groups helps to achieve the organizational goals very effectively. | This management practice sometimes overlooks some of the management concepts and principles that may hamper future operations.
Increment in the groups may create management chaos within the organization. |
Tesco |
Socio-Technical Systems Approach |
It helps to develop the cultural bonding with the employees and society by specifying the organized structuring of the groups. | The main problem of this approach is that technically dividing, relating those with the social culture is very much tough, and sometimes it fails to relate the broader aspects of the management. |
Table 2: Different management approaches adopted by the Tesco’s competitors
(Source: J-sainsbury.co.uk, Usdaw.org.uk, van de Vliet, Tesco plc, 2014)
2.2.1 Evaluation on the effectiveness of the approaches against TESCO’s approach
Tesco is combining the two approaches. On the other hand, all the other competitors trust a single approach. The competitors focus either on developing relationships outside and inside the organization or on improving management functions within the organization.
However, Tesco is trying to handle the management issues by taking the technicality of the management and the social aspects at the same time.
According to Kahn (2014), handling the societal senses and the management issues technically may create a myopic condition for the companies in long term because the social dynamics changes frequently and that have directly impacts on the business operations.
Therefore, it will be very difficult for Tesco to develop a long-term plan to achieve the organizational goals. On the other hand, the single theory approach will help its competitors establish themselves on a single motto.
Yang (2014) stated that addressing management issues through a single approach pays off in the long term planning for achieving organizational objectives.
2.3 Explanation on the management support and TESCO’s management today
The management theories have been developed from wider perspectives. However, over the years, the division of labour through scientific manner, bureaucratic division, and industrial and organizational psychology. In the earlier times the entire concept of the workflow management was based on the purely output basis.
However, with the changing course of time, the concept has changed from only output to a holistic approach, including human resources and society (Jeong & Choi, 2014).
However, Tesco is currently following a mixed approach of scientific and bureaucratic management. Tesco officially operates through a flat organizational structure, with work divided according to employees’ competencies.
However, to run the departments and other operations, they have developed an in-house bureaucratic structure. According to Satinoff (2014), this informal structure helps Tesco run its operations smoothly.
LO 3: Understanding ways of using the motivational theories in Organizations
3.1 Comparison of the different motivational techniques used by TESCO
Motivational Techniques | Leadership Style | Supportive Theory | Pros. | Cons. |
Reward Program |
Autocratic |
Taylor’s Motivational Theory |
It motivates the staffs to perform more effectively to earn more. | The excessive stress on the monetary reward may increase incidents like false selling. It will hamper the brand image for the company. |
Skill Development through Training and Development program |
Democratic |
The Mayo effect |
It helps improve the workability of the employees. Moreover, it develops a feeling within the employees that they are important assets to the organization and that the organization is investing in their development. | If the training program has not been designed scientifically by the company, then it could create an adverse effect on the employees, especially on the new employees. |
Employee Empowerment |
Democratic |
Maslow and Herzberg |
Increases employee attachment and employee loyalty. |
If the in-house promotion mechanism has not been maintained properly then the excess talent pool may feel frustrated and they may leave the organization. If this happens then the company will lose its own expertise to its competitors. |
Job Satisfaction |
Laissez-faire |
Maslow and Herzberg |
Lowers down the attrition rate. |
This may create a static phase for the promotional activities, which may frustrate the talent pool. |
Table 3: Comparison on the different motivational techniques used by TESCO
(Source: Jeong & Choi, 2014, pp.105)
3.1.1 TESCO’s response to the changing shopping trends
Recent Trends | Tesco’s Response | Motivational Technique Used |
Lesser footfalls in the physical stores | Tesco is developing an expansion plan with the small-scale stores through analyzing the demands of the local market. To increase customer loyalty in all stores, Tesco started a loyalty program. | Skill Development through Training and Development program, Reward Program and Job Satisfaction. |
Seamless experience in the online and offline shopping | Tesco has started selling the products online through their own website and the development of the Tesco direct service. | Skill Development through Training and Development program and Employee Empowerment |
Faster delivery for the online shopping | Tesco is offering a one-day delivery program for high-value customers in online and offline formats. | Reward Program and Skill Development through Training and Development program |
Table 4: TESCO’s response to the changing shopping trends
(Source: Kahn, Tesco.com, 2014)
3.2 Evaluation of Skill Development through Training and Development program from both the employees and TESCO
The skill development through training and development has helped both the company and the employees to gain the advantage.
- The main advantage that employees receive through the training and development program is that it helps them develop multidimensional skills within themselves. These multidimensional skills help the employees gain an advantage in their corresponding career development plan (Yang, 2014).
- The main advantage what the company receives is that they develop a team with the multitasking ability. This will help the company to deal with the recent changes in the market dynamics (Foley, 2014).
LO 4: Understanding the mechanism for the development of effective teamwork in an Organization
4.1 Explanation on the different dynamics and the behaviours of the groups
Type of Group | Group Behavior | Group Dynamics |
Task Group | Members unite to attain a common goal. A company develops this kind of group during the implementation of a specific project. | It is a temporary group. An organization develops this kind of group to implement any project through division of work within the group. It works as a ad hoc committee. |
Interest Group | The goal of the members of this group is to gain some sort of benefits from the organization. The members are not directly related to the organization or organizational objectives. | This group is the union of those members who are not related to the organization but their interest is same. |
Functional Group | It works as the tool to achieve the organizational goals. | It could be either formal or informal. The main purpose for the development of this group is to attain the organizational objectives. This group works through different divisions independently. |
Table 5: Different types of groups
(Source: Aubé et al. 2014, pp.125)
4.2 Strategies for the Development of a High-performance team
The fundamental strategy for the development of the high performance team is that to unite the members through a common purpose. The roles of the members need to be clearly defined so that the role conflict does not happen (Yang, 2014).
The other thing that needs to be clearly defined is the clarity of the leadership. While developing a group, the organization must define the leadership by discussing it with the possible members of the group.
Other than these, the communication process and workflow needed to be clearly defined so that any miscommunication could not occur within the group (Dyer et al. 2013).
4.3 Evaluation on the use of technology in meeting the needs of the virtual team
The global expansion has become the trend of current global companies. Therefore, to attain the needs of the virtual team the technological advancement needs to be implements.
According to Ogunleye (2011) meet the needs of the virtual team companies are adopting the web based platform and the use of the chat servers to communicate with the team members across the boundaries. However, Chang and Lin (2014) stated that the technology can provide the base line support for the virtual team but cannot provide extensive support for the team members.
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