Management Style and Organizational Structure at TESCO

This report examines the management style and organizational structure at TESCO, focusing on the CEO's approach, principles of management, and functions used. It also analyzes the change in organizational culture and its impact on employees. Additionally, the report discusses the leadership style of the CEO and the effects of power, influence, and conflict at TESCO. Various types of motivation used at TESCO are also discussed.

INDIVIDUAL
REPORT
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Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Q 1. Examine the management style and state the principle and functions of management used
by the CEO of that retail firm. ...................................................................................................4
Q 2. Analyse the steps taken by the CEO the change in organisation structure in order to
achieve high performance and state the change in organisation culture brought about by the
CEO of that firm and its impact on the employees.....................................................................6
Q 3. Describe the leadership style of the CEO of that firm to enhance the organisational
effectiveness................................................................................................................................7
Q 4. Analyse the effects of power, influence and conflict at the chosen firm............................8
Q 5. Discuss the various types of motivation used at chosen firm.............................................9
RECOMMENDATION AND SUGGESTIONS:..........................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13
INTRODUCTION
Management refers to the concept of planning, organising, motivating and decision
making to be taken place in the organisation by some expert personal. It can be a Chief
Executive Officer (CEO) or the Director. CEO is one in the company who is placed at the top
level in management and is responsible for formulating the policies and making important
decisions. He takes care for all the operations covering all departments of the business. Every
CEO uses some management and leadership style in his company (Abdullahi, and et.all., 2020) .
Management style refers to some specific path which he uses to manage and achieve prescribed
objectives or goals. Since a CEO is also knows as the leader of the company so he also uses
some leadership and motivational style to influence and motivate his followers. In the present
report case study of TESCO PLC company is being considered and Ken Murphy is the Chief
Executive Officer. The company uses Management by Objective style in its organisation with the
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application of Division of work, Remuneration and Unity in Direction. Models for
Organisational structure has also been studied in the report along with the concept of change in
organisational culture at TESCO brought by CEO ken Murphy. The concept of leadership style
is discussed in the report where the CEO uses Democratic style of leadership in his organisation.
Motivation theories such as Herzberg theory and the attributes for motivation, power and its
influence on the employees of TESCO PLC is considered in the report.
TASK
Q 1. Examine the management style and state the principle and functions of management used by
the CEO of that retail firm.
Management style refers to the procedure of managing operations of business which
every manager inhabits in his working in order to achieve set targets. Principles of management
refers to prescribed guidelines which directs a manager about decision-making. Function of
management refers to the process of planning, organising, staffing, directing and controlling
which takes place within the organisation (Arora, and Rao, 2018).
Management Style used by the CEO Ken Murphy of TESCO is “Management by
Objective”
Management by Objective in categorised under the umbrella of Strategic Model of
management. The style specifies the objective which are finalised by mutual concern of
employees as well as the management of company. It helps the company to measure actual
performance with the standard one specified in objectives. Separate objectives for each
employees are set and management keeps monitoring the performances done by each employees
in the organisation. Every manager or top level management keeps SMART objective into action
(Moskovich, 2019). SMART states for Specific, Measurable, Assignable, Realistic and Time
bound. Management by Objective comprises of five different steps which starts from defining of
objectives and goals followed by segregating the company's objective separately for each
employees, monitoring and evaluating the performance of organisation's employees, measuring
and providing works feedback, and finally appreciating the employees by providing them
appraisals (Boz, 2019) . The objectives of TESCO are bounded by specific times and is
depended on its employee's performance appraisals.
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Principles of Management provides certain direction to managers for providing their
decision upon few things.
TESCO uses few principles of management developed by Henri Fayol. The principles are
Division of Work, Remuneration, and Unity of Direction.
 Division of Work: Division of work refers to separation of single task into parts and
allocating this to different employees in the organisation(Choi, and et.all., 2017) .
TESCO applies this principle in its operations in a way a single objective is defined and
then separate specific objectives are underlines for each employee out of one single
objective.
 Remuneration: This principle underlines the concept of fair and justifiable monetary
compensation and reward to deserved employee in the work place (Čiuladienė, and
Walancik, 2020). TESCO provides fair remuneration to its employees based upon their
competencies and provides reward tot he deserving one.
 Unity of Direction: The principle states that a single plan or objective should be defined
by a single manager in the organisation (Gherghel, and et.all.., 2020) . TESCO applies
this principle in its company in a way a single objective is specified by a manager
concerned with department in the organisation.
Q 2. Analyse the steps taken by the CEO the change in organisation structure in order to achieve
high performance and state the change in organisation culture brought about by the CEO
of that firm and its impact on the employees.
Organisational structure is an administration which guides a manager to perform
activities in a order which is directed towards the achievement of goal and objectives. It can be
either in the form of Flat organisational structure, Functional, Hierarchical, Line, Divisional or
can be Matrix Organisational Structure (Ghorbani, 2018).
 Flat Organisational Structure: This structure includes a free flow of communication.
No one is superior and decentralization of management takes place (Park, and et.all..,
2017).
 Functional Organisational Structure: This structure segregates different departments
of the organisation intro various groups (Pawir sumarto and et.all.., 2017).
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 Hierarchical Organisational Structure: In this form of organisational structure the
information and the hierarchy of command passes from top to bottom (Popliand, and
Rizvi, 2017) .
 Line Organisational Structure: In this the command flows from top to bottom but is
not specialized and supportive. The heads of department maintains a control with them
(Purwanto, 2018).
TESCO before Ken Murphy operates upon Hierarchical Organisational Structure in the
company. Under this structure, company divides the place and responsibilities of each employee
into parts for effective and efficient work. The top level management in the hierarchy are placed
with maximum authority and responsibilities in the organisation. The hierarchy comprises of five
different committees that is Audit committee, Corporate Social Responsibility,Nomination
Committee, Remuneration and Disclosure Committee headed by the CEO Mr. Dave Lewis.
TESCO Hierarchical Organisational Structure
When TESCO has replaced its CEO from Lewis to Ken Murphy the organisational
structure has also been changed. Ken Murphy has adopted Line Organisational Structure in the
company in order to bring more efficiency and achieve high performance in the operations of
organisation. The reason behind this change is that heads of the departments will take
responsibilities of the employees working in that department and will measure their
performances separately.
Organisational Culture refers to company's philosophy, environment, ethics, morals and
values, etc. within which the employee's works in organisation. This culture plays a very
important role in the behaviour of its employees and on their efficiencies (Gipson, and et.all..,
2017).
When TESCO was run by Mr. Dave Lewis, he brought up a change in the organisational
culture by quoting that it is necessary to have change as the company faced inflation worth £250
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million. The changes he brought up in the organisational culture is openness, transparency,
fairness and honesty in the company. After the replacement of CEO in the year 2020, the
organisational culture of the company has changes. Now TESCO works on philosophy of
effective utilization of company's work force for its success and growth along with achievement
of company's goals and objectives. The company has provided span of control to its all managers
in all the stores with separate labour for the effective management and communication of work.
The impact of this change on company's employees is fruitful as the managers provides a regular
training to their employees and keeps motivating them which creates a positive environment at
the work place. The company also has a centralised way of decision making which is being taken
by company's board of directors which reduces the changes of miscommunication and many
decisions for a particular task.
Q 3. Describe the leadership style of the CEO of that firm to enhance the organisational
effectiveness.
Leadership Style refers to the behaviour, and way of doing work by a leader in the
organisation. A leader is one who influences his followers or his team members to work with
their full potential and efficiency to achieve company's goals and objectives. There are various
types of leadership style out of which a leader chooses to one. Style such as Authoritarian,
Participative or Laissez-Faire (Kodosky, 2020).
CEO of TESCO Mr. Ken Murphy posses the characteristic of Participative leader which
is also called as Democratic leadership style. In this form of style a leader provides an
opportunity to its team members to provide their views and suggestions on the matter of
discussion for which decision is need to be taken. A leader involves his followers in decision
making process and appreciated for their suggestion and contribution. This form of leadership
style is exactly opposite to Authoritarian style of leader in which the leader sole takes the
decision and does not invites the suggestion of his team members. Democratic style focus on
improving quality in work instead of enhancing the productivity. The leaders who possess
participative style of leadership are considered as best motivators in the organisation and always
boosts up the morale of his team members. Leaders always gets best solution and plan for
desired activity when involves his team into decision making.
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In TESCO the managers adopts participative leadership style and always involves team
members while making decisions. TESCO by adopting the style motivates its work force and
brings high quality in their products for the customers.
Q 4. Analyse the effects of power, influence and conflict at the chosen firm
Power is a reflection of authority and responsibility authorized by the company to a
competent personal in the organisation. Powers are generally utilized by the managers of the
company who further influences his team to work with more efficiency and effectiveness. This
involves taking decisions for the development of the company or to reward or provide appraisal
to deserved employees of the organisation (Kuljiš, and Gutović, 2019). There are several theories
which are being used by managers in order to influence and motivate their respective teams. The
theories are as under:
 Reward Power: The authority to use this power is allotted to those who gives appraisals,
rewards, training and development, promotions,etc (Pyc, and et.all., 2017). The use of
this power by TESCO CEO motivates and influences the employees to gain some
rewards or appreciation.
 Legitimate Power: This power is backed by the experience and place of an employee in
the company (Reisenzein, and Rudolph, 2018). Ken Murphy has authorised his
department heads to measure the place and monitor the experiences of the department
employees for better efficiency.
 Referent Power: The power is related to providing motivation and influencing the
attitude of all the employees associated with organisation (Kyoung Baeand, amd Shin,
2017). Ken Murphy has provided this power to deserved leaders who can further
motivate and influence the team to act in a more better way.
 Expert Power: As the name suggest Expert power so company provides this power to its
expert personnels in the organisation who bears enough knowledge in the particular area
or field (Retno, and Azzam, 2019). TESCO CEO provides this opportunity to the
experienced leaders of his company.
 Informational Power: A person who bears the knowledge regarding the financial
statements and reports are authorised with Informational power (Lee, and et.all.., 2017).
Ken Murphy in TESCO keeps this power with himself by having a wholesome
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responsibilities of Commercial offer. Ken Murphy is groomed with an expert knowledge
and market experience in the filed of brand management, sales and marketing, and
commercial fields.
Q 5. Discuss the various types of motivation used at chosen firm.
Various types of Motivation
As TESCO is a leading brand it covers all the various types of motivation that use to
make their employee dedicated towards their work. It provides that all the companies and their
various factors implies the effect and the nature of the company. The main of the company is to
earn maximum profit and top attain the more varied customers to trust on them. Their has been
made a various implied method which gives the culture and the area in which a company should
create a method through which they can work, As for the further dealing and management their
has to be given a basic feature and nature that implies all the goals being led (Sanchez-
Manzanares, and et.all.., 2020). In order to gain more customers and to attain more growth of the
company nit is important that the employers should be timely motivated in their working sectors. Promotions- TESCO can timely provide various methods through which a company can
promote their employees who use to work with a proper elements and strategies. There
has been given all the methods which provides that all the capable and the hard working
employees should get an appreciation by promoting them to some higher position. This
will lead them to gain the better position and make them aware about the working and
increase their performance (Li, and et.all.., 2019) . Bonus- TESCO use a various strategy in which they will provide the employees and their
workers a bonus for any of the peak load working. This has been an issue that all the
employees who do not get proper appreciation get demotivated. So the TESCO has used
this skill and make their employees who work harder to give them a bonus for all the
certain work. This techniques helps the people and the company to keep their work good
as employee will try to do hard work in order to get the bonus and that will raise the
standard of the company (Meyns, and et.all., 2018).
 Herzberg theory- TESCO use this theory as one of the important motivation goal. This
theory complies of two types of factors that are mainly the Hygiene factor in this the
employees gets all their basic things on time like their salary and their basic requirements
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in the office or the working organisation. It provides all the basic amenities and the
facilitates to the employees in their working period like good working hour, motivating
environment etc. and the other factor is Motivating factor this is one of the important
factor as TESCO being one of the leading brand will has to follow all the aspects and the
criteria to keep themselves motivated in that case they provide bonus, incentives and
other various factors that helps to make their employees motivated. The main aim behind
this is that TESCO wants to be in the leading position and has to maintain their image by
the time (Miloloža, 2018).
Thus, TESCO use all these various strategies in order to keep themselves motivated and
make their employees work harder.
RECOMMENDATION AND SUGGESTIONS:
From the above report it can be suggested to TESCO that company should continue its
management style that is Management by Objectives in order to maintain effectiveness and
efficiencies in the organisation. TESCO should keep motivating its employees regularly because
it brings quality in products and TESCO bears a brand name in the market especially for its
quality products. Company should adopt Laissez-faire style sometimes so that it will motivate
employees and influence to show their full potential in their workings. To increase the
organisational performance TESCO should increase its sales and generate high revenue
continuously. Company can adopt various strategies to increase its sales such as marketing
strategies by adopting or increasing its online digital platform and social media platform where
millions of people are active on daily basis. Social media platform is the fastest growing platform
who influences people especially youth where mostly young people spends their time and from
which they get influenced more. TESCO can develop informal communication in order to create
healthy relation and to maintain friendly organisational culture in the company. It is to be
suggested to the company that TESCO can motivate its employees by providing them rewards,
appraisals, appreciations for their work and contribution made for the company. A leader should
keep motivating its employees as a leader plays a very important role bringing the employees
efficiencies into work. A team has a great influence form the powers and behaviour of their
leader. Ken Murphy can adopt various principles in the workings such as Esprit De Corps,
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Stability of Tenure of Personal, Equity, Order, Scaler chain, etc. to improve efficiencies and
maintain consistency in the organisation which will help TESCO in its growth and success.
CONCLUSION
From the above report it can be concluded that TESCO takes proper care about its
employees. Ken Murphy follows Management by Objectives style of management while
managing the works in the company. Company separately decides each employees task and
allots them their work which does not bring changes of confusion and miscommunication about
the task to be performed by the employees. Each employee knows their work and gives their best
to bring quality in the output. Ken Murphy posses the characteristic of Democratic Leader who
involves his team members into the decision-making process and encourages team to bring their
suggestions and views at the time of discussion. Division of work, remuneration and unity in
direction are few principles which TESCO in builds in its operations. The powers of a leader
influences his team in many ways and motivates employees to work with more passion. In
TESCO every department manager is responsible separately to measure the workings and
performances of his department employees which supports the organisation to measure the
performance level of each employees and provides information of each employees to whom
training and development is needed, to whom appraisals are to be given, etc.
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