How Businesses Operate

This document provides an overview of how businesses operate, including the importance of accounting for business success, different functions carried out by the HR department, features of employment legislation, stages of team development, motivational theories for sustainability, and different types of leadership styles.

How Businesses Operate

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
2.1 Importance of accounting for business success................................................................4
2.2 Different functions carried out by HR department in organisation..................................4
2.3 Features of employment legislation..................................................................................5
TASK 3...........................................................................................................................................5
3.1 Present and interpret accounting information using P&L accounts.................................5
TASK 4............................................................................................................................................6
4.1 Stages of Team Development...........................................................................................6
4.2 Analysis to determine roles in organisation.....................................................................7
4.3 Assess three motivational theory for sustainability..........................................................8
4.4 Different types of leadership style....................................................................................8
TASK 5............................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES ................................................................................................................................11

INTRODUCTION
Business environment is an environment which means it is a collection of entities and
organisation which is not under the control of organisation because it is affected by performance
and growth of organisation. They have to operate in such a way in order to gain competitive
organisation. In this report it include importance of business activities and different function
which is performed by HR department. It also include employment legislation and stages of team
development. There is some motivational theories to motivate employees and styles of
leadership.
TASK 1
Covered in PPT
TASK 2
2.1 Importance of accounting for business success
Accounting is very important for business as this help organisation to maintain track their
daily performance and can maintain their records in proper manner. Some of the importance of
accounting are explained below: Budget Planning: It help Tesco as they help them to analyse the expenses and can plan
for budges. This is because the selected organisation assign budget to every department
so they can not overspend on waste resources. To make budget they want records and it
can be maintain with the help of accounting. Organisation can also monitor performance
by assessing profit and loss of business (Taamneh, Athamneh, and Nsairat, 2017). Filing tax return: Accounting help company because they maintain all records and then
prepare financial statement and this also include cash flow statement, trading P&L and
many other. Because of accounting it become easy for Tesco to present true and fair view
of accounting and can file tax return easily.
 Improved payment cycle: This is the another reason where accounting is important as it
help company to improve payment cycle like receiving and paying money. Tesco

maintain their accounts properly and with the help of this they pay wages, salaries to
employees on time.
2.2 Different functions carried out by HR department in organisation
HR is important part of organisation as it is only one who manage people and activities of
organisation. There are various functions performed by human resource department such as HR
planning, recruitment and selection, performance management, rewards, industrial relation and
many more (Sarode and Deore, 2017). Some of the functions which are followed by HR
department of Tesco are as follows: Recruitment and Selection: In context to Tesco, they select and recruit most talented
employees by monitoring their skills and competencies which help them to achieve
business objectives. They conduct interviews on different forms as candidates have go
through all process interview process. Training and development: This is the another function of HR department of Tesco
where they give training to new as well as existing employees for performing functions
effectively. Development is to build skills and competencies of employees to put their
efforts in order to achieve business goal.
 Benefits and Compensation: In relation to Tesco, this is main role where HR
department has to pay compensation according to the work performed by them and give
other benefits which include insurance, extra reward etc.
2.3 Features of employment legislation
The main features of employment legislation are equal opportunities to employees for
job, prevention of sexual harassment for positive work environment, working hours regulation,
remuneration and salary for work, industrial relationship with trade union, safety and health of
employees. The two important employment legislation in context to Tesco is mentioned below: Working hour regulation: There should be working hour and they should communicate
to employees according to the legal rules and regulation which means they should state
working hours. In United Kingdom The working time regulations, 1998 states that they
have right of 28 days paid holidays and can take break from activities which are perform
by them.

 Safety and health care of staff members: There is an legal regulation of Health and
Safety work Act, 1974 which states that there should be proper work environment so
that organisation can protect the health and safety of employees.
TASK 3
3.1 Present and interpret accounting information using P&L accounts
Interpretation
It is interpreted that there expenses are more because of the impact of Covid-19 as they
are delivering goods and services to their customer. But due to online sale their profit is
increased.

TASK 4
4.1 Stages of Team Development
 Forming: Forming is the stage where each member of team is introduced with each other
and interact with each other in order to know their skills and background. In this stage
they discuss detail about project which is assigned to them. Storming: This is this second stage where there is competition when they are sharing
their ideas, views and opinion to accomplice project on given time. It become easier for
them to communicate (Stuart, 2017). Norming: Norming is defined as a stage where team member understand their role and
responsibility and appreciate to other member in organisation. At this stage they listen
views of other in order to remain in track to achieve business objectives. Performing: In this type of stage they have clear understanding of what they have to
perform, roles and responsibilities so they do not want any supervision as they can
perform their work in systematic manner to accomplish business objectives.
 Adjourning: This is the last stage of team development where team member have
completed the assigned project and the team is separated and they watch the outcome
( Woodcock, M., 2017).

4.2 Analysis to determine roles in organisation
Organisation chart
Belbin model
There are nine role in this model which state that describe roles and responsibility. In
other words, it can be said that they tell job duties and divided into three categories which are
thought oriented roles, action oriented roles and people oriented roles which are as follows: Monitor evaluator: It play a role to take decision on the basis of fact that they have an
ability to solve problems and challenges that arise. The specialist: The specialist is one who is an expert as they have vast knowledge in
particular field as they only involve when any task need to be acquire in area. The Plant: They are creative people who give innovative idea and suggestion to
perform a task in an efficient manner. The Shaper: Shaper plays an action oriented role as their main role is to motivate and
inspire them so they can put more efforts to achieve business goal in proper manner.
 The Coordinator:They are the people who have proper skills in order to coordinate
work in proper manner which help manage situation and give outcome to solve them.

4.3 Assess three motivational theory for sustainability
Maslow's need of hierarchy
Maslow's need of hierarchy is a hierarchy which show all levels on pyramid form from
basic needs to high level needs (Downes and et. al., 2017) The needs of this theory is defined
below: Physiological needs: This is a basic need where selected organisation fulfil all needs of
employees in organisation which include food, shelter, water and other. If these basic
need is fulfilled then they put efforts in order to achieve goals in proper manner. Safety needs: Tesco give various benefits such as medical insurance and various other
benefit to protect health and safety of employees. Social needs: It is the main need of employee where they want to interact with each
other. In context to Tesco, they conduct training and development programme which help
them to interact with each employee. Esteem needs: In relation to Tesco, their main motive is to accomplish the given task on
time in order to achieve reward according to their performance.
 Self Actualisation needs: It is the last need where employees are self aware, concern for
their growth and they do not concern to other people views and opinion.
Mayo theory
This theory is given by Elton Mayo which states that to motivate employees organisation
should give rewards according to the performance of employees this will help company to
motivate employees so they can put their efforts to achieve business objectives.
Herzberg's Motivation Hygiene Theory
This theory explain that there are two types of factor which state that there are job
satisfaction and dissatisfaction. The first is hygiene factor which states that there is intrinsic and
extrinsic factor which include salary, fringe benefits and other. In this there is low motivation
among employees. On the other hand motivation factor include relatedness and growth as they
help in achieving business objectives (González-Cutreand et. al., 2018).

4.4 Different types of leadership style
 Autocratic style: It is a style of leadership where all decisions are taken by higher
authority and do not involve any employees to participate in decision making process
(Gipsonand et. al., 2017).
 Democratic style: It is also known as participative style as it define that manager include
all staff members in decision making as it help in encouraging and motivating employees
in organisation. This is the best style because they can get new ideas from employees.
 Gratifier style: This is the type of leadership style where they give reward according to
performance and achievement of employees in organisation. This is the best style where
staff member try to achieve target on stipulated time (Mohiuddin, 2017).
 Innovator style: This is the another style where they set vision and mission so that
employees can give better ideas and innovative product and services so that they can
fulfil the need and requirement of customer.
TASK 5
Covered in PPT

CONCLUSION
From the above discussion, it is concluded that to prepare accounting is necessary for
success of business. As it help them to prepare budget, filling return and many more. There are
five stages of team development which help them to complete project on time effectively. There
are three motivational theory such as Maslow's need of hierarchy, Mayo theory and Herzberg
Motivation hygiene theory. In the above discussion, it is also discussed about different styles of
leadership such as autocratic, democratic, innovator and gratifier.

REFRENCES
Book and Journal
Downes, P. E and et. al., 2017. Motivational mechanisms of self-concordance theory: Goal-
specific efficacy and person–organization fit. Journal of Business and
Psychology, 32(2), pp.197-215.
Gipson, A. N and et. al., 2017. Women and leadership: Selection, development, leadership style,
and performance. The Journal of Applied Behavioral Science, 53(1), pp.32-65.
González-Cutre, D and et. al., 2018. A school-based motivational intervention to promote
physical activity from a self-determination theory perspective. The Journal of
Educational Research, 111(3), pp.320-330.
Mohiuddin, Z. A., 2017. Influence of Leadership Style on Employees performance: Evidence
from Literatures. Journal of Marketing & Management, 8(1).
Sarode, A. P. and Deore, S. S., 2017. Role of third party employee verification and background
checks in HR management: An overview. Journal of Commerce and Management
Thought, 8(1), pp.86-96.
Stuart, R. R., 2017. Team development games for trainers. Taylor & Francis..
Taamneh, M., Athamneh, S. and Nsairat, B. A., 2017. The effect of administrators' work-related
ethics on practicing human resource management functions at Jordanian
universities. International Journal of Public Sector Performance Management, 3(3),
pp.337-354.
Woodcock, M., 2017. Team development manual. Routledge.