Management Style and Organizational Structure at TESCO

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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