This report provides a critical analysis and evaluation of leadership and management within Tesco, including the assessment of key performance metrics and the effectiveness of organizational leadership and management performance.
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Table of Contents EXECUTIVE SUMMARY.............................................................................................................3 INTRODUCTION...........................................................................................................................4 Analysis and comparison between leadership and management.................................................4 Key performance metrics of organizational sector, market and industry....................................6 Organizational leadership and management performance...........................................................7 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
EXECUTIVE SUMMARY In this report critical analysis and evaluation of leadership and management within Tesco is done and also the assessment of the effectiveness of the overall performance with regard to Tesco also a brief about Tesco will be given. Then academic theories and models to analyse and compare the leadership and management in Tesco. Transformational and transactional theories are being used to do the same for leadership and scientific management theory and theory X and Theory Y are used in case of management. Key performance matrix of Tesco like employee turnover, cost, quality,ma,retshare,profitetc.isalsodiscussed.Maslow’sneedhierarchytheoryand Hertzberg’s two factor theory and expectancy theory was also taken into account to determine theemployeesatisfactionandorganizationalperformance.
MAIN BODY INTRODUCTION Leadership is the ability of an individual or a group to influence or guide others. This element paves the direction for further actions. They develop the vision and mission, make effortsand it is all about mapping out where the organizationneed to go to "win" asa team or an organization. Leaders are the people who focus on doing the right things and also their leadership is dynamic, exciting, and inspiring. Management is the process of planning, organizing, staffing, directing and controlling the activities of the organization. It is the backbone of all the organization.Leadershipis an inseparable part of management and plays a vital role in managerial operations, while technical as well as social processes have management as their main component.In the report critical analysis of leadership and management within Tesco will be done and also assessing the effectiveness of these on Tesco’s overall performance. Tesco is a UK based supermarket which has its headquarters in London, England. It is regarded as the third largest retailer in terms of gross revenues. It has the following segments like supermarket, hypermarket, and superstore and convenience shop. It was founded in 1919 by Jack Cohen. This supermarket has worldwide shops and has covered a global market has original product range of grocery and general merchandise. Apart from supermarket it has also diversified into other areas such as books, clothing, toys, petrol, software, financial services, telecoms etc. it is also listed on London stock exchange. Tesco has also diversified itself on online platforms and started loyalty card for regular or premium customers to boost sales. Their primary aim is “to serve the customer” and also keeping the customers happy. The also moved their focus on ‘one stop shopping’ which means the customer can get all the products under one roof. Analysis and comparison between leadership and management Transformational leadershipis a leadership theory which aims at moving the followers to make them aware about what is important and away from their own self-interests. It was developed by James Macgregor. This theory is based on processes and control. It motivates and inspire workers by influencing them rather than directing them (Ma. and Jiang, 2018). The focus of transformational leadership is on goals. The leaders of Tesco are generally passionate, energetic and enthusiastic etc. the leader works with the followers or team to determine if there is any changes needed and also leader’s behaviour influences the behaviour of followers and also
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motivate them to do well. The leaders in this theory are concerned about their followers. It is proactive in nature and also works on the principle to change organizational culture by implementing new ideas. The objectives are attained through higher ideals and morals by the employees. It emphasis on undertaking ethical work which have clear values and standards. It gives importance to cooperation, effective and open communication and authenticity. Transactional leadershipis also a leadership theory which aims at moving the followers to complete their roles as agreed with a leader in exchange for a reward. This theory focuses on inspiring others to innovate and make changes that helps the Tesco’s grow. In this type of leadership in which leaders make the followers work and be motivated by both the rewards and punishments. It is effective in emergency situation (Prasad. and Junni, 2016). They are not good where innovation and creativity is at most priority. It depends upon people who are self- motivated and who can work well in structured and directed environment. The focus of transactional leadership is vision. This leadership generally uses management by exception which means until a negative or very bad exception comes the leaders don’t involve if the things are going as per the plans. The leaders in this theory are less concerned about their followers as the leader directs and is goal-oriented. The practical approach and directive behaviour of the leader is overall effectiveness of transactional leadership. To perform such leadership depends upon some circumstances. This leadership also encourages productivity and also provide easy to understand structure. Transactional theory is responsive in nature and it also works in the culture of Tesco. Scientific management theory-This theory was given by Frederick Winslow Taylor and also known as classical management theory. The focus is on productivity and also it is the art of identifying and understanding what is to be done in the way which is best and cheapest. It helps find out the cause and effect relationship between variables in a particular situation (Waring, 2016). This theory has four major elements or principles such as: replacing the rule of thumb by scientific methods- as per this principle there is only one best method to maximise efficiency, harmony not discord – as per this principle there should be harmony between the workers and the management, cooperation not individualism – in this principle he suggested that competition must be replaced by cooperation and both management and workers should realise each other’s
importance, and lastly development of each and every person to his or her greatest efficiency and prosperity- training is essential for development of workers of Tesco. Theory X and Theory Y –This theory was given by Douglas McGregor as he examined the behaviour of individuals at work. It shows dual aspect of human being and has grouped this into lower-order needs and higher order needs. In this theory X determine that employees are naturally lazy and unmotivated and also dislikes works which gives the leader authoritative type of leadership. It also assumes that employees avoid responsibility and these type o employees are supervised on a regular basis (Daneshfard. and Rad, 2020). In this Tesco works on a carrot and stick basis and this approach is best suited in large scale production operation. On the other hand theory Y determined that employees are active and motivated to work. They are also creative and take responsibility and achieve the given goals. In this case the decision making power also rests with the lower levels unlike Theory x in which the decision making power is centralized at top level. In case of theory X the work is repetitive in nature but in case of Theory Y they work on a project that widens their skills and knowledge. Also in theory Y employees keep their innovative and creativity ideas in front of leaders and this approach is best suited for work which requires knowledge and professional services. Key performance metrics of organizational sector, market and industry Key performance metrics are discussed using employee turnover, costs, quality, market share, growth or profit of Tesco Employee turnover-Employee turnover is a tool which measure the number of employees who leave organization in specific time. Tesco show positive employee turnover rate because they treat its staff with respect whether they are male or female or any age group they treated all equally. They support and provide training to all its employees to develop the basic skills which include literacy, doing relevant work, qualifications etc. Costs-Costs are the price which are paid and it measures in money terms. Tesco maintain proper costbecausetheyprovideproductwhicharecheapascomparetocompetitorswithout compromising on quality. They manage this because they have such suppliers which give raw materials at low costs because they purchase in bulk (Gandolfi and Stone, 2018). Quality-Quality show the characteristics or nature of product. Company believes that one should never compromise on quality no matter what. Quality is the legacy for Tesco which they
always maintain. Nowadays consumers are concerned about quality more than price. They are ready to pay more price for good quality of product. Market share-Market share is the percentage of market space of the company. Tesco have good market share. Company capture market share of every country because they make such products which are demanded by the customer. Tesco believes in innovation. They think that to survive for the long term in the market you should timely come up with innovation and provide what customer want. Growth or profit-Growth is the process of development of the company. Company's growth is good because they make good profit. Sales growth is the most important aspect for the success. Company should track its expenses properly and calculate the profit by considering expenses and income. Unnecessary costs should cut so that more profit can be achieved. Company can even raise prices to increase revenue. Organizational leadership and management performance Maslow's hierarchy of needs is a motivational theory which include five models- Physiological needs-Tesco provide good working environment to its employees. They give timely and fair salary to the workers. Tesco have canteen facility in the premises and also provide locker facility to everyone. Safety needs-Tesco is providing health insurance to its employees. They are also having contract of employment which is helpful for employees. Company should also provide other benefits and insurance facilities so that employee get motivated and its performance will increase (Fiaz, Su and Saqib, 2017). Belongingness and love needs-Tesco make sure that everyone is working happily and if working in a team than they have no problem with their members. Company give offers for water parks, gyms etc. so that employees feel valuable and will also feel that they are getting attention from the organization. Esteem needs-Tesco celebrate for the achievement of the employees and also appreciate employees for the hard work. Company give respect to every employee and make sure that everyone is respecting each other. Self-actualization-To reach the higher level Tesco give personal development plan which help the employee to enhance the skills. At this stage self-fulfilment plays a vital role.
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Hersberg'smotivationtheorystatesthattwofactorsaretherethatispresentinthe organization which influence motivation. Motivating factors-Tesco make sure that they praise their employees for their achievements. By doing this employee will feel proud and valued. Company also provide recognition to its every employee and appreciate for the success (Al Khajeh, 2018). Superior should also give recognition to the subordinates. Company should come up with interesting project so that employee will feel challenge in the work which will motivate them. Company should give responsibility to the employees regarding the work assigned to them. Employee should get opportunities for promotion. Company ensures that everyone gets equal growth. Hygiene factors-Company have clear and fair policies. Can look at competitor's policies also while formulating the policies. Supervision should be proper and good. Employees should give reasonable authority. Company want to provide healthy environment within every stage in organization, nobody should bully anyone. Hygienic and safe working environment should be provided by the company. Fair remuneration should be provided by the company to its employees. Organization should take care of the status of its employees, which will motivate them. Company should make employees feel that their jobs are secured so that they work without any pressure. Transformational leadership- It is a leadership style in which leaders encourage and motivate employees so that they can do innovation and bring the change which will help to grow the company in the future. This can be done by providing good culture and freedom at the workplace.Theygiveauthoritytothetrainedemployeesregardingtheirtask.Thisis management technique which will help employees to be more creative and innovative at the same time. Employees are trained to become transformational leaders and serve the company. This will help employees to feel motivated which will increase in the level of performance and increase the productivity at the same time. Hersey and Blanchard situational leadership include four models- Directing- Company focus on directive behaviour than supportive behaviour. Here leaders are concern with the task only ignoring the personal needs of the employees. Task should be clearly communicated and process should be easy to follow. Proper direction should be provided by the company so that organizational goals can be achieved.
Coaching-It is also called as the high supportive leadership style. Here leaders should motivate and provide training for shaping skills of the employees so that they willingly take more responsibility.Leadersshouldbesupportivewiththeirsubordinatessothattheywork enthusiastically. Participating-Proper interaction should be there between leaders and team members. Leaders should listen and praise their followers. Here leader trust on the employees for the day to day activity as a result subordinates grow (Gandolfi and Stone, 2017). Leaders will give feedback to the employees so that they will motivate to work more in the future and will also increase productivity. Delegating-It is the final style which involve low support and directive behaviour. Here subordinate work independently and also take responsibility. Leaders follow autonomy, while maintaining that they are not giving much responsibility to followers. In this leader should proper monitor them. CONCLUSION Throughthisreportitcanbe concludedthatcomparisonbetweenleadershipand management is done. Employee turnover, quality, costs, profit etc. are very important aspect for measuring the key performance of the organization. Company can grow only if they will take careabouttheiremployees,worklifebalanceforemployeesareveryessentialsothat performancewillimprove.Companyshouldalsoconsidercustomerdemandandtimely innovation should have done to beat the competitors. Management performance are evaluated by using motivational theory like Maslow's hierarchy of needs which include five needs if those needs are followed properly by the company than their employee turnover ratio will improve, Hersberg's motivation theory has two aspects that are motivation and hygiene, Transformational leadership and hersey and Blanchard situational leadership which include four models.
REFERENCES Books and journals Al Khajeh, E.H., 2018. Impact of leadership styles on organizational performance.Journal of Human Resources Management Research.2018. pp.1-10. Fiaz, M., Su, Q. and Saqib, A., 2017. Leadership styles and employees' motivation: Perspective from an emerging economy.The Journal of Developing Areas.51(4). pp.143-156. Gandolfi,F.andStone,S.,2017.Theemergenceofleadershipstyles:Aclarified categorization.Revista De Management Comparat International.18(1). p.18. Gandolfi, F. and Stone, S., 2018. Leadership, leadership styles, and servant leadership.Journal of Management Research.18(4). pp.261-269. Ma, X. and Jiang, W., 2018. Transformational leadership, transactional leadership, and employee creativity in entrepreneurial firms.The Journal of Applied Behavioral Science.54(3). pp.302-324. Prasad,B.andJunni,P.,2016.CEOtransformationalandtransactionalleadershipand organizational innovation.Management Decision. Waring, S.P., 2016.Taylorism transformed: Scientific management theory since 1945. UNC Press Books. Daneshfard, K. and Rad, S.S., 2020. Philosophical analysis of theory x and y.JOURNAL OF MANAGEMENT AND ACCOUNTING STUDIES. 8(2).