This assignment examines the impact of leadership styles within organizations, particularly focusing on Tesco. It analyzes the company's current use of a democratic leadership style and explores the potential benefits of adopting a more situational leadership approach to better manage business situations and customer/employee needs.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
CONTEXT OF BUSINESS
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents A brief history and summary of the business and the rationale for choice................................1 Discuss the vision, leadership style and management style or practice and different strategies for making use of various theories..............................................................................................2 Analyse how strategies are implemented and helped Tesco.......................................................4 Recommendations for improvement in leadership style..........................................................5 CONCLUSION...............................................................................................................................5 REFERENCES...............................................................................................................................7
INTRODUCTION Managementandleadershiparetwoimportantfactorswhicharenecessaryfor performing tasks of the organization. Leadership is a term used for defining the ability of leaders and managers to make other work according to their instructions (Dreyer, B and Et. Al., 2017). Leaders assign goals and objectives to subordinates for meeting the demands and needs of the organization.Theseareresponsibleforgivingproperguidancetoemployeeswhile accomplishingthetaskandgoalsassignedtothem.Therearevariousleadershipand management styles used by organizations to achieve the goals and objectives in specified time frame. They are autocratic, democratic, charismatic, laissez faire, task oriented, charismatic, bureaucratic, etc. In this report, the company which is considered for analyzing different leadership and management styles is Tesco. This is a retail firm of UK that was founded in the year 1919 by Mr. Jack Cohen.This report describes vision of the company, history of the organization and summary of business. At last of this report, different strategies used by Tesco for running businesssuccessfully are explained. A brief history and summary of the business and the rationale for choice History Tesco was founded in the year 1919 by Jack Cohen. This retail sector industry of UK. This company was first started by selling of groceries in stalls at East End of London. Tesco was first appeared as a brand in the year 1924. The first flagship store of Tesco was opened in Burnt Oak, North London. Tesco continued to have success since it was started. The headquarters of Tesco was build in north London in the year 1932. Summary Tesco operates stores in UKunder different banners including Superstone, Extra, Express and Metro. Tesco ensures customer satisfaction and increase the number of customers. Tesco is also found on London Stock Exchange (vom Brocke, and et. al.,2016). It has around ÂŁ62.54 billion revenue in last year. Tesco is the largest retailer of British and it is also world's largest retailing outlet. It has more than 4500 locations in UK. It has a workforce of around 552004 employees. This company focuses on motivating and supporting it's employees to work hard and achieve specified targets. It has a well trained workforce and a huge customer base. 1
Tesco has different levels in the workplace such as customer assistant, department managers, logistics staff and warehouse staff. Rationale of the study Tesco is the largest retailer of UK and it is running its business successfully since many years in different countries (Maylor, H., Blackmon, K. and Huemann, M., 2016). This company is chosen for understanding the leadership and management theories that are used in TESCO’s workplace whichhelpsitinaccomplishinggoalsandobjectiveswithingiventimeframe.Tesco’s strategies for performing well in market is only because of leadership styles and management of that place. Discuss the vision, leadership style and management style or practice and different strategies for making use of various theories Vision of Tesco Tesco is largest retailer of UK which has an objective of long term success. A vision of any company is defined as a statement that describes the inspirational view of organization. The vision of Tesco isto providehigh quality products to itscustomer and became highly competitive in market. It wants to have a huge amount of loyal and committed shareholders and colleagues. Leadership style and management practices followed in Tesco’s work place. Tesco is a multinational UK retailer which is offering services in different countries. It followsvariousleadershipstyleandmanagementpracticeswithintheorganizationfor achievement objectives and goal of the firm (Bates and Robb, 2016). These management practices and leadership style are adopted by the organization for enhancing good flow of functions and operations in the company. Different managers and leaders adopts different leadership styles to be operated at work place. Leaders perform excellent while doing tasks of the organization and influence their subordinates to perform like them. There are following kind of management practices and leadership styles followed by multinational firms like Tesco. They are described below. Autocraticleadershipandmanagementstyle–Theseleadersdonotinvolve subordinates and workers in the decision making of the company. Autocratic leaders make unilateral decisions which are made independently by the leader of the company. This kind of 2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
leadership is effective when leaders have to make instant decision. This leadership demotivates employees as they are not allowed to participates in decision making process. Democratic leadership and management style- These leaders involve staff and workers for making effective decision of the company (Souto, 2015). Final decision is given by top level management but it includes opinions and suggestions of other employees working in the company. This kind of leadership requires collective decision which are profitable for the organization. Consultative leadership or management style- These leaders organize different kind of discussions before making organizational decisions (Wang and Et. Al., 2016).Consultative leaders involve whole staff while making decision for the company. This kind of leadership provides loyal workers and help in building good relationship within the organization. Persuasive leadership style or management style– The persuasive leadership style and management is defined as one of the management style which is effective and it is used in organisations for handling different business activities.If in an organisation, thereare employees who do not support their leader then this kind of leadership is not effective. Laissez – faire leadership or management style- This is a kind of leadership in which managers and leaders supports and guides employees for achieving their goals and targets in the given time frame. The leaders behave as mentors and helps them in every business problem and handling every issue that is faced by subordinates. Tesco is a multinational company and it has adopted democratic style of leadership. In this type of leadership, the managers distribute the decision making power among employees. The main objective of a democratic leader is to support and guide all members of team and motivate them to work hard. In Tesco, managers and leaders formulates different strategies and involve employees in the decision making process. The various theories of leadership and management followed in different companies are mentioned below- Contingency theory of leadership There is no particular theory that will be implement or use by leaders forhandling business situations as well as for making effective decisions (Wirtz, and et. al., 2016). As per respective theory managerial situation within organisation are depended on external and internal factors. Contingency theory of leadership is introduced in 1964 by Fielder. Although, there are 3
mainly three type of organisational situation given by the respective theory like positional power, leader-manager relation and task structure. In this,leader manager relation explain relation within leader and manager in the organisation. Whereas, task structure describe the way in which leaders assign task to their subordinates. Last is positional power which is having by leaders on their subordinate. In relation of Tesco Plc. Such leadership style will be beneficial for handling distinct situations within effective manner. Along with this, manager will be able to take decisions that are beneficial and result in increasing profitability of Tesco Plc. Douglas McGregor's Theory X and Y In a preferred leadership & management, TESCO is used to follows management theory which was recognised by the Douglas McGregor in the year 1960. As per this theory two types of the leader are their in this leading retailer. Both manager & leader follows different ways for motivation an employee's and also assisting them to perform tasks (Lieder, and Rashid, 2016). The manager of this leading retailer are classified into theory X and theory Y. Theory Y leaders:Manager who majorly exists under this preferred category prefers to utilises an optimistic opinion on their own employees. Also, these leaders majorly creates thought that individuals who working in the TESCO have the satisfaction on their own work and also they are working on same position. This would helpful in increasing trust and builds healthy relationship between leaders and their team members. Theory X leaders:The leaders who classified in this category thinks that their workers or an employees are still not satisfied and also they do not work in their TESCO. These types of the leaders have own negative view toward own employee. In order to problem, these leaders must be given attractive rewards & remuneration to motivate workers and accomplishes defined goals or objectives of this leading retailers. Analyse how strategies are implemented and helped Tesco In Tesco, the managers and leaders undergo weekly audits and this helps in identifying and solving various problems related to customers. Another business operation followed by Tesco to implement good and effective leadership is operational routine. In this, the delivering of quality andeffective products is implemented. The leadership style adopted by Tesco is the democratic style of leadership. In this type of leadership style, the information is circulated among different levels of organisation like from top level to middle level to lower level organisational structure.In democratic leadership, all employees can express their views and 4
opinions in front of leaders. This builds a sense of involvement and engagement for employees in the company. The Tesco managers and leaders are able to motivate their employees by adopting democratic style of leadership (Askariazad, and Babakhani, 2015). The motivation among employees helps companies to meet demands and needs of employees by doing work effectively. Tesco is following a flat organisational structure and in the employees and subordinates are a part of success of the company. If there is an effective leadership and management , then the company is supported by growth and development for having success. The main role of leaders and managers in Tesco is to motivate their employees and achieve goals and objectives of the company in given time. The reason behind success of Tesco is that it is successful in providing good and quality services and products to customers since years. Strategies and plans are formulated and implemented in Tesco which provide Tesco a strong competitive advantage. Recommendations for improvement in leadership style From the above analysis, it has been analysed that Tesco is using the perfect leadership andmanagementstyleformakingtheworkplaceenvironmentgoodforworkingofit's employees. The leadership and management styles and approaches are effective in order to know how to handle different tasks and activities of business (Bates, T. and Robb, A., 2016). Tesco is a multinational company and the main objective of this company is to create brand image. This is done by attracting more number of customers. This is recommended for Tesco to use other kind of leadership style also. The leaders and managers of Tesco have adopted democratic style of leadership. A situational leadership is kind of leadership that can be usedby Tesco to manage and handle business situations according to need and demand of the customers and employees. CONCLUSION From the above report, it has been analysed that the importance of leadership and management style in an organisation is opportunity for the companies to analyse for developing the growth of successful business. There are different leadership and management style adopted by companies for leading their subordinates such as laissez-faire, persuasive, consultative, democratic and autocratic leadership style of management. This increases the efficiency of employees by making them effective and productive by applying leadership styles. In the given report, Tesco is considered and in this organisation democratic style of leadership is followed. 5
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
The leaders and managers of Tesco follows democratic style for implementing plans and actions in their operational business activities. 6
REFERENCES Books and Journals vom Brocke, J., and et. al.,2016. On the role of context in business process management. International Journal of Information Management. 36(3). pp.486-495. Souto, J. E., 2015. Business model innovation and business concept innovation as the context of incremental innovation and radical innovation. Tourism Management. 51. pp.142-155. Wirtz, B.W., and et. al., 2016. Business models: Origin, development and future research perspectives. Long range planning. 49(1). pp.36-54. Lieder, M. and Rashid, A., 2016. Towards circular economy implementation: a comprehensive review in context of manufacturing industry. Journal of cleaner production. 115 pp.36-51. Askariazad, M. H. and Babakhani, N., 2015. An application of European Customer Satisfaction Index (ECSI) in business to business (B2B) context. Journal of business & industrial marketing. 30(1). pp.17-31. Bates, T. and Robb, A., 2016. Impacts of owner race and geographic context on access to small- business financing. Economic Development Quarterly. 30(2). pp.159-170. Sanzo, M.J., and et. al., 2015. Business–nonprofit partnerships: a new form of collaboration in a corporate responsibility and social innovation context. Service Business. 9(4). pp.611- 636. Al-Ansaari, Y., and et. al., 2015. Strategic orientation and business performance: An empirical study in the UAE context. Management Decision. 53(10). pp.2287-2302. 7