Tesco Leadership Style and Employee Engagement

The assignment emphasizes that a company's success depends on creating coordination between leadership style, management practices, and various strategies. Tesco's approach to employee engagement through recognition, shout-outs, discounts, and social media is highlighted as a way to boost employee satisfaction and retention. The study concludes that reviewing and modifying strategies and leadership styles are essential for maintaining business success in the face of environmental changes.

Business Context

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. History of the company............................................................................................................1
2. Vision, leadership style, management practices and strategies used by TESCO....................2
3. Analysis Of Leadership Style, Management Practices and Strategies Adopted By Tesco.....3
4. Recommendations....................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Business refers to the activity that include the purchase and sale of goods and services for
the purpose of earning profit. Every business needs an investment to be done by the owner of it
so that more customers are attracted towards it.
Present study will be based on the TESCO company it is a British multinational groceries
and general merchandise retailer. Its headquarter is located at Welwyn Garden City,
Hertfordshire, England. It is the third largest retailer in the world by gross revenues and ninth
largest retailer in the world by revenues. It was founded by Jack Cohen in 1919(Hammer, 2015).
Report will include history about the TESCO company and the leadership style followed
by it. It also include management practices and various strategies followed by TESCO.
MAIN BODY
1. History of the company
TESCO is a British multinational grocery and merchandise retailer and its headquarter is
located at Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the largest
retailer of groceries in the world. It has its operations in more than seven countries. Jack Cohen
son of Jewish migrants from Poland founded TESCO in 1919.It was first appeared in 1924.It is
listed in the London stock Exchange and is a constituent of the FTSE 100 indexes. It has
expanded its business in the early 1990's by providing operations in the 11 countries of the
world. It was started in 2013 in USA and in 2018 it growing at fast pace. It has expanded its
business such as retailing of books, clothing, electronics, furniture and many more. In the 1990's
it re positioning itself as providing low cost product to the customers and known as low cost
retailer that offers various product ranging from low cost to high cost(Storey, 2016.) It has
expanded by mid of the 1990's by 500 shops to 2500 shops in fifteen years. It has its net income
of £1,208 million by 2018.It has employed 460000 employees in the company by 2017.In 1994
the company is took over the supermarket chain.The logo of the company is changed to the
current version with reflection of stripes in the logo. On 21st March 1997 the company purchases
the retail arm of Associated British Foods. The deal was approved by the European Commission
on 6 May 1997.The company starts its diversification in different countries of different variety of
products such as household goods and clothing under the Delamare brand.In 2001 it started its
business in online groceries retailing in the USA. It also purchased the C Two Networks in Japan
and also acquired the supermarket chain in Turkish.TESCO started its business operations by
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doing joint venture with the Charoen Pokphand Group but face difficulties in growing the
company(vom Brocke, Zelt and Schmiedel, 2016).
The rationale behind the choosing of TESCO company as it is the multinational company that
provides the services to different parts of the country. As it is famous for its service providing in
the united kingdom and other parts of the country.
2. Vision, leadership style, management practices and strategies used by TESCO
The vision of the TESCO company is to grow its business operations with full of
opportunities and by creating new ideas and innovation in the company to achieve success in the
future.
The leadership style followed by the TESCO company is participative leadership style
that is also known as democratic style of leadership that involves the participation of employees
as well as leader in decision making process. TESCO followed this leadership style as it involves
all the employee's of the company in taking decision of the company. If employees are not
involving in the decision making process they are not aware about the company's decision and
policies that are being implemented by the company(Apenko, 2017).Employees in TESCO
company are more involved with the strategies that are adopting in the company and take
initiative in doing work effectively and efficiently. As employees are more engaged in the
company's activities and employee engagement is also improves as there is interaction between
the employees regarding the work. As by applying this leadership style the TESCO company can
achieve its goal easily and effectively by proper utilization of resources of the
company(Leadership styles and frameworks, 2019).
Management practice followed by the company is employee engagement activity and
performance management. Under TESCO employee engagement activities are conducted on
time to time so that each and every employee is familiar with each other and do not feel
unprotected in the company(Iqbal, Anwar and Haider, 2015). It leads to provide sanctification to
the employees as they know each other in the company. It reduces the absenteeism of the
employees in the company that will benefit the TESCO in achieving its target. The employee
engagement activity helps in achieving the vision of the company as through this strategy the
company can achieve growth and get success in the future through that the company has achieve
the success.
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Employee engagement helps in retention of employees in TESCO that creates a good
working environment in the company. Performance management helps in providing the job
feedback from the employees in the TESCO company. It helps in providing the opportunities for
the business to grow in various areas. An effective performance management plays a vital role in
the company. It provides the rewards to its employees on the basis of their performance in the
company. Employees of the company are motivated by this management practices as they give
better results to the company for achieving success. This will aid in the accomplishment of the
vision of the company as if the performance of the employees are evaluated then they will
perform better in the future and that leads the company to achieve its goal and also helps in
growth of the business. (Moccia, 2018).
For Tesco transformational style of leadership is more appropriate for the company as in
this leadership style changes are brought to the organisation that will lead to the future success in
the company. The changes bring in the company inspires people to do work more effectively and
efficiently. Management practice that is more appropriate for the company is performance
management as it helps in improving the performance of the employees of Tesco. Feedback from
the other employees helps in achieving the greater success in the future. As evaluating the
performance of the employees is the important part of the organisation.(Akhtar, Kaur and
Punjaisri, 2017).
3. Analysis Of Leadership Style, Management Practices and Strategies Adopted By Tesco
LEADERSHIP STYLE
Tesco has adopted Participative leadership style in which Leaders of Tesco builds
relationships with their employees in order to get to know about them and strengthen their
relationships with them. For that they conduct various surveys on employee satisfaction to get to
know about their employees. After that, they find out about the problems and do work on them
for improving them for the betterment of their team. They also implement various quality
management techniques which help them to reduce the mistakes, improves the efficiency and
boosts the employees' morale. They push employees to think innovative and motivate them to
identify their own areas of development and help them to achieve their goals. They also help
employees to reduce the performance gaps. Like this, Leaders of Tesco implement participative
style which is beneficial for the company in many ways like – gaining loyal and satisfied
employees, creating better working environment, increasing in the level of employee's
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satisfaction and co-ordinating between various teams and activities. This will increase their
efficiency and work style. They will complete their task on time which means company will able
to complete its target on time, which will help company to earn more profits and give reward to
the employees. This will motivate the employees to do better performance in the future. (Khan
and et.al., 2015).
MANAGEMENT PRACTICE
Tesco has used Employee engagement practice. Tesco uses various techniques to
implement this practice. These techniques are as follows -
360 DEGREE FEEDBACK – It is a process in which employees of Tesco get confidential
feedback from anonymous people who work with them. This system helps employees to get to
know about his performance, strengths, weaknesses and it makes employees more effective.
For the implementation of this technique, Manager of Tesco take secretive interview of
employees about another employees to measure and review the performance. In this interview,
manager ask some questions to the employees. On the basis of answers, they measure the
performance. They follow Key Performance Indicators for the measurement. Like this, they
measure every employees' performance and give feedback to the employees without letting him
know that who is the person to give him feedback. On the basis of this feedback, employees
analysis himself and try to improve his performance.
GIVE EVERYONE RIGHT JOB – Tesco appoints everyone on right roles accordingly their
qualification, knowledge, experience, skills and qualities. This make employees comfortable and
engage in their work.
For this, company hire freshers, describe him about the job and give him training. After
that they give him a basic roles and responsibilities with a little challenging tasks for completion.
After sometime, they evaluate his performance. On the basis of that performance, they track his
progression and give him a right job according to his qualification and certification.
For Example- an employee who wants to become sale manager in Tesco. Firstly that
employee have to complete the sales target given by sales manager of Company. On the basis of
his performance they will give him promotion and one day that employee will become sale
manager by fulfilling his roles and responsibilities with tasks completion.
FREQUENTLY DISCUSS ENGAGEMENT – Managers of the company uses transparent
approach in which they talk and involve their employees in decision-making or problem solving
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process. This approach make employees valuable for the organisation and they retain for long
term (Litman, 2018).
For the implementation of Frequently Discuss Engagement, Tesco conduct weekly team
meeting in which employees, mangers and leaders come together and discuss the querires, issues,
plans and progression of the company regarding employees, departments, activities and
strategies.
By using this management practice, Company get effective and satisfied employees
which help company to get innovative and qualitative products at low cost which lead consumers
to consume qualitative products at low price. This will make company more profitable and gain
more market share. (and et.al., 2016).
4. Recommendations
For the improvement, company can add more customer value in the products and bring
innovative products that can help customers to improve their life styles and comfortability. This
will bring more customer base to the company.
Company can also involve the customers and make them their central by using digital
marketing. For that company have to make account on the digital platforms. After that, company
can use various strategies such as discounts or shout-outs etc. Company can also tag their
customers in the post. This will make customer engagement in business strong.
Leaders of the company can use reflection to improve the leadership style. Reflection
allows leader to understand that what is important and what can be done differently. After
understanding these two aspects, leaders can change their style for the betterment of employees.
Also, leaders can listen to their employees with open mind and allow them to participate in every
decision making process.
Company can use recognition approach for the improvement in employee engagement
process. Giving recognition can boost the employees' confident and motivate him/her to do better
performance in the future. This will help in increment of satisfaction level of employee and
he/she will retain in Tesco.
CONCLUSION
From the above study, it has been summarized that company can't only depend on the
leadership style or management practice or various strategies for the success of business.
Company have to create co-ordination between all of them in order to achieve organisational
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objectives and goals. Company should adopt the style or strategies according to the nature, goal
and vision of the company. Wrong implementation of strategies or wrong adoption of style can
lead to failure of business. Also, company should review and modify the strategies and style in
order to maintain and sustain the business accordingly environmental changes.
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REFERENCES
Books And Journal
Akhtar, P., Kaur, S. and Punjaisri, K., 2017. Chain coordinators’ strategic leadership and
coordination effectiveness: New Zealand-Euro agri-food supply chains. European
Business Review.29(5). pp.515-533.
Apenko, S., 2017. Human resource management of innovative projects in the context of business
strategy. Strategic Management. 22(1). pp.3-6.
Hammer, M., 2015. What is business process management?. In Handbook on business process
management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review. 5(5).pp.1-6.
Khan, M.S., and et.al., 2015. The styles of leadership: A critical review. Public Policy and
Administration Research. 5(3). pp.87-92.
Litman, T., 2018. Parking management best practices. Routledge.
Moccia, S., 2018. Failure of leadership. In Strategies in Failure Management (pp. 79-94).
Springer, Cham.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process
management. International Journal of Information Management. 36(3).pp.486-495.
Online
Leadership styles and frameworks.2019.[Online].Available through<
https://www.verywellmind.com/leadership-styles-2795312>
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