Management and Operations in Tesco: A Comprehensive Analysis

This report delves into the intricacies of management and operations within the context of Tesco, a leading supermarket chain in the UK. It examines the roles and characteristics of leaders and managers, exploring the differences and similarities between them. The report further analyzes the functions of managers according to Fayol's principles and how Tesco managers effectively implement these functions in their daily operations. It also explores various leadership approaches, including situational leadership, system leadership, and contingency leadership, providing real-world scenarios from Tesco to illustrate their application. The report then focuses on the role of a store manager, highlighting how it exemplifies the responsibilities of an operations manager. It examines the importance of operation management in Tesco, identifying key outside factors that influence its effectiveness, such as stakeholders and corporate social responsibility. Finally, the report analyzes how these factors impact the decision-making process of a store manager, demonstrating the crucial role of operational management in ensuring Tesco's success.

MANAGEMENT AND OPERATIONS

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
Task 1...........................................................................................................................................................2
a) Differences and similarities between a leader and manager considering their roles and
characteristics..........................................................................................................................................2
b) The functions of manager according to Fayol and how managers in Tesco perform these functions 3
c) System leadership, situational leadership and contingency using different scenarios in organization
.................................................................................................................................................................5
Task 2...........................................................................................................................................................8
1. Explain different approaches to operation management and identifying what is used in Tesco.........8
2. Explain what makes your role as a store manager a classic example of an operations manager......10
3. Explain the importance of operation management in Tesco supermarket.........................................11
4. Identify and assess the key outside factors that can have an effect on the operations management in
Tesco......................................................................................................................................................12
5. How are these factors impact upon your decision making as a store manager.................................13
Conclusion.................................................................................................................................................15
References..................................................................................................................................................16

LIST OF FIGURES
Figure 1: Function of management..............................................................................................................4
Figure 2: TQM benefits...............................................................................................................................9
Figure 3: JIT approach...............................................................................................................................10

List of tables
Table 1: Comparison in leaders and managers............................................................................................3
Table 2: Matrix showing accepting of leadership approach in different situations.....................................6

Introduction
Management is the systematic steps of dealing with the individuals in the organizations. While operation
refer to the performance of the action related to function. In the present scenario, the report will give the
explanation related to the Tesco organization which is leading supermarket chain in UK. It will talk
about the responsibilities and roles of managers and leaders along with functions of managers that are
required to be performed in the Tesco. Situational leadership, systems leadership and contingency
leadership will also be explained in the report with concerning different scenario in the Tesco itself. At
the end, the next scenario deals with the store manager functions, roles, responsibilities and factors that
influence the functioning of store department and decision making of the stock manager in the report.
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Task 1
a) Differences and similarities between a leader and manager considering their roles and characteristics
Leadership is the capability of impacting the individuals by influencing the capabilities so that business
aims are met conveniently. The leaders have to follow leadership but control of the organisation is
managed by the manager. Leader allows and led the other employees to manage while manager analysis
the leaders visions and work with the team members to meet the aims and purposes. Leadership is about
involving every individual but management is all about administration and making sure that activities
are carrying out in correct manner (Certo, 2018). The below are the points that provide the comparison
among the roles and characteristics of leader and manager:-
Managers are Xerox and leaders are unique: In the organizations, managers mimic the attitude and
capabilities as they analyze from others and then take into account the leadership style irrespective of
explaining it. In the organizations, leader has to self aware and has to create the uniqueness in their
brand and quality along with that they must be authentic and shows transparency.
Managers control the risk and leaders take the risk: The manager’s duty is to manage the tasks of the
business operations and in this aspect risk management along with risk control is needed. For
minimization of risk, managers have to control and avoid the issues instead of embracing the risks
(Certo, 2018). But the leaders have to effort always for the new and creative things even though it can be
risky as well. Leaders do not fear as they think that for getting the success a small failure in between is
not the big deal at all.
Managers make the procedure and system but leaders make the relationship: Managers generally
concentrates on the structures that are needed to be set and meet the purposes. They mainly concentrates
on analytical aspects and then assures that the system in work meet the desired objectives of Tesco. The
workings of the managers are related to the individual’s goals and objectives (Bolman and Deal, 2017).
Whole on the other side, leaders believe to increase and create the relationship with the Tesco
stakeholders. Leaders concentrate on impacting the stakeholders in respect to meet the organizational
visions and objectives.
Further in brief the below table will show the comparison between the leaders and managers:
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Table 1: Comparison in leaders and managers
Difference in point Management Leadership
Meaning Skills of coordinating the activities
in the most suitable manner
It is the ability of leading the team
members towards the meeting of
organizational objectives.
Emphasis on Stability Employees motivation
Focuses on Management of activities Inspiration of people
Strategy Reactive Proactive
Basis Control Trust and faith
Perspective Short perception (Mendenhall et.al.
2017)
Good foresightedness
Power Rule Motivate
Formulation Policies and guidelines Fundamentals for the team members
Moreover in Tesco, the role of leader is of moving the employees towards the better tomorrow. Further
for meeting every objective staffs are divided into team segments and each team segment have been
allotted the task which the team has to complete on time. While the managers in Tesco also have to met
the role of leader sometime when the leader is on the holiday and demand incurs. So in the urgency both
complement each other and both are needed for growth and sustainability.
b) The functions of manager according to Fayol and how managers in Tesco perform these functions
There are basically five functions that the manager has to use in carrying out their business operations.
The functions are planning, organizing, commanding, controlling and coordination. The below functions
are used by the Tesco managers as well:-
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Figure 1: Function of management
(Source: Author, 2018)
Planning: In this function, manager has to forecast the situations and it supports in avoiding the
problems before their happening. The main attributes to planning are that it is the intellectual procedure,
pre-action stage function and futurity is the planning root. Planning supports in other functions of
managers as well as prior to planning nothing can be organised, directed and coordinated. Further, it is
pervasive and has huge coverage (Edward, 2017). In Tesco managers have considers the planning
function by implementing their new product segment in the retail segment. Further, Tesco managers are
good decision makers.
Organizing: It involves development of the structure together with the allocation of resources to meet
the Tesco objectives. In this function only, the manager presents the organisation charts and authority
chain to meet the planning of the new product segment.
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Commanding: It involves both formal and informal ways that promotes the staffs to conduct various
activities. In this context, Tesco managers have to assess the employee’s behaviour, emotions and
preferences for the new segment that is to be undertaken. If they show enthusiasm the employees will
also show the same and will try to meet the targeted objectives from the new product segments (Fayol,
2016).
Controlling: Control and evaluation are the two nodes of the similar procedure. In Tesco, it means
checking the existing performance of the new product with the pre standard performance determined in
the plans. It is done to ensure the quick progress and satisfactory performance and also documenting the
experience met from the plan working as the guideline to possible future jobs. For example: In Tesco,
the managers has deployed the controlling tool such as 360 degree feedback for the employee’s
performances so accordingly the promotions and incentives can be allocated.
Coordination: It is organisation essence for meeting the relationship of individuals towards the
achievements of group objectives. Further, in Tesco, the manager coordinates externally and internally
both with the stakeholders. In internal coordination the other functions can be coordinated within the
organization only (Lewin, 2016). While external coordination means coordinating externally with
politicians, government, other enterprises, trade unions, public etc. For example: For launching the new
product segment of Tesco, manager has to take the permission from the government and after getting the
approval only organisation has implemented the launch.
Moreover, the manager’s functions of Fayol are effectively used in the Tesco for regular basis in daily
operations (Peaucelle, 2015). While, manager also perform these function in particular situation as well
like in case introduction or implementation of new product segment in UK.
c) System leadership, situational leadership and contingency using different scenarios in organization
There are three types of approaches for this model which are as follows:
Situational leadership
According to this theory leader should use different styles of leadership which is totally depend on the
development level of follower. Sometimes in different situations for reaching correct style of leadership
competency levels and integration with commitments is done by addressing employee activeness. Tesco
should apply this model of leadership for becoming a successful leader with development of each
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employee by using right style and attitude at right time. The main key of leader’s success is totally
dependent on its team member (Antonakis and Day, 2017). In Tesco a matrix is prepared according to
their need for calculating the team member’s willingness and it helps in choosing leadership style.
Table 2: Matrix showing accepting of leadership approach in different situations
Ability to work
(low)
Ability to work
(low)
Potential (medium
to high)
Potential ( high)
Willingness level of
members of a team
High dedication and
conviction
Low conviction Variable conviction High conviction
Useful leadership
style for Tesco
leaders suggested
for different
situations
Directive way Coaching way Supportive way Delegation way
System Theory
In Tesco, according to this approach for solving a problem of system analysis of basic structure is done.
The basic structure of system is processing procedure, inputs and outputs. In UK Tesco is large
organisation it consists of large system as well as small system. The smaller system consists of
marketing system, recruitment system, promotion system, sales system, production system and financial
system. The systems result is based on input quality which includes some resources like staff, new
technology and money and processing procedure which means transforming input into resultant output
procedure (Chemers, 2014).
Further, management functions according to this theory for the required output and management of the
required resources must be decided by Tesco manager for inputs and directing the team as a step by
processing and activity by using feedback system.
Contingency Theory
In every situation the management has no need of one best approach, according to this theory.
According to this theory managers are responsible for identifying the effective and managerial
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approaches. The manager determines the key contingencies in different situations. According to this
theory in Tesco, business operations also change the internal and external environment which takes
place by changing the role and functions of leaders and managers (McCleskey, 2014).
For example: In Tesco the specific style of leader is affected by some technology like mass production
technology, Small batch technology and continuous process technology etc. The operations are carried
out by different technologies which are identified by leader in financially successful enterprise of retail.
And it will resist in management span, management level number, worker specialization level. The
firm’s performance and recommendations of various management forms which are appropriate for
different type of operational technologies which can be identified by the leader.
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Task 2
1. Explain different approaches to operation management and identifying what is used in Tesco
Operation management focuses on the management procedure to gain and distributes the products and
services of the organizations. The main purpose of the operation management is to transform the input
into the output by carrying out the process using the labor and materials in the production. Thus it main
purposes are to focus on effectiveness and productivity. Hence, operational management includes
important measurement along with the analysis of internal operations (Khan and Hashemi, 2017). The
scope involved is purchase management, inventory and quality control, distribution, warehouse and
evaluation of process. In Tesco, the main approaches that are been used in management operations are
continuous improvement (kaizen) and Total Quality Management (TQM).
Kaizen (continuous improvement): It is the consistent process for the service or product improvement
from regular and incremental ways. Hence, Tesco can conduct consistent improvements by carrying out
modifications at small scale rather than moving for big changes. Kaizen is the technology which is
implemented in 5 steps that concentrates on visual order, cleanliness, organization and standardisation.
Tesco store manager can also use this in the same way to manage the inventory department which reflect
stock visual order, maintains the cleanliness, organize the stock and gives standardisation as well.
Total Quality Management (TQM): It is the management approach that is based on the fundamental
that every member of the team requires to manage better standards of activities in every perspective of
Tesco business functions. In the organisation, store manager maintains the quality of the stock by
deploying the tool TQM that compare standard practices with the actual practices (Govindan et.al.
2015). Moreover, the organization in implementing it also has to consider the cost and time for
implementation.
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Figure 2: TQM benefits
(Source: Author, 2018)
Just in time approach (JIT): The organizations especially applies this approach in inventory department
to raise the efficiency and reduce the waste by receiving the products in the stock only when the demand
is present in the market which ultimately lower downs the cost of inventory. But the limitation of this
approach is that producers have capability to predict the demand (Lehner, 2015). Thus, this approach
can also be used in Tesco for the business operations on time.
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Figure 3: JIT approach
(Source: Author, 2018)
Moreover, it is been analysed that Tesco uses JIT approach for managing their business operations and
demands of the customers.
2. Explain what makes your role as a store manager a classic example of an operations manager
An operation manager is the senior role which includes analyzing the production of goods and services.
It is the duty of the operation manager that organization is maintaining its all operations with the smooth
services that achieve the desires and requirements of the customers and clients. A store manager aware
about the regular operations of the store and ensure maximum revenue for the store (Teller and
Alexander, 2014). In Tesco, store manager role and responsibility is to:-
 Recruit, supervise, train and appraise the staff: The manager not only hires the correct candidate
but also seek them training for their entire development. They must also make sure that every
employee contributes to their best level for the useful running of the store. For example: In
Tesco, the store manager launched the latest inventory software management and in this context,
the manager has given the training according to his specialization so as to gives the best out of it.
The store manager also motivates the team members on regular basis.
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 Budget maintenance (Evans, 2017)
 Maintaining financial and statistical records of the store
 Dealing with suppliers queries and complaints
 Analyze pricing and control over stock
 Assuring the compliance procedure in relation with safety and health legislation: It includes
cleanliness in store, shelves and racks along with that it must be well ventilated.
 Maximizing the profits and achieving the sales demand with include staff motivation as well:
role is to ensure smooth and effective functioning of the Tesco store.
 Developing promotional displays and materials: The signage showing the logo and name of the
store must be placed at the correct place so that everyone can review.
 Integrating with head office: The store manager is also responsible for to communicate
everything with the head office so that proper allocation of funds and finances for the same can
be arranged timely.
3. Explain the importance of operation management in Tesco supermarket
Operation management refers to the management of the business practices to develop the greatest range
of efficiency likely in the organization. In Tesco, operation management plays the crucial role to manage
the project effectively as it includes benefits such as:-
 Operation management includes similar management for every business irrespective of the
operational nature. It includes important elements such as planning, organizing, directing,
controlling and motivating as well. Thus it is important for the organizations to manage the
regular activities effortlessly (Treven, 2017). With the support, organization is able to create the
effective use of valuable resources altogether.
 Overall productivity is improved with operation management in Tesco. The proportion of input
to output is called as productivity. It provides the efficiency measure of the managers and
employees as well.
 In Tesco, various business activities take place and in this context products are integrated with
the customer requirements which is possible through operation management function only.
Operation management is the central focal of the organization as it manages the complete
operations if the products are produced according to the customer needs.
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 Operational management also effectively uses the resources resulting into the big profits to the
Tesco. This is due to the fact that operational management design, operate and manage the
systems applied for the goods production.
 Prior to its use, no organization believe that operation management is crucial but subsequently it
was seen as the crucial functioning of the organization. It was also determined that raw material
manufacturing for creating the goods and selling to it with sales management is important and it
is only possible through operation management (Morschett et.al. 2015).
Moreover, in Tesco it is the complex procedure so in detail it needs the operational manager to run it
successfully.
4. Identify and assess the key outside factors that can have an effect on the operations management in
Tesco
Business environment is greatly impacted with the number of factors such as political, social,
technological, environmental and legal. There are majorly four factors that develop the latest business
environment and its impacts on operation management in Tesco are as follows:-
Stakeholders: The stakeholder of Tesco has the potential to impact the organization through their new
strategies and projects. At every level, stakeholders are involved both internal and external. Thus
stakeholders basically do not greatly influence the decision making related to the management and
operations. But the expectations of the stakeholders basically impact the operational management. For
instance: Tesco customers wants the products at reasonable pricing but the investors or shareholders
always put concentration on increasing the prices with high quality maintenance so that entire cost can
be covered and profits can be reserved.
Further stakeholders include suppliers, society, creditors, shareholders, customers, employees, managers
and owners (Christopher, 2016). The impact of every aspect must be analyzed on operation management
functioning. A good relationship with all the listed person will also brings the business sustainability and
growth and result into profits and easy cost coverage.
Corporate Social Responsibility: In Tesco, the management responsibility is to work for the society and
employee farewell. This deals in the segment of waste reduction and providing funds to NGOs so as to
earn the profits on the resources installed. In the operational management, the managers and leaders
have to consider the distributors and suppliers essentially. Managers and leaders has to face the decision
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making issues in context with the CSR because of the facts that Tesco owners will not like to use the
resources for the customers who did not purchase from Tesco.
Moreover, organization external environment must be managed so that internal environment did not
have to suffer the most for change resistance (Porter and Kramer, 2019). In this context, effective
PESTLE analysis can also be done so that maximum errors and discrepancies can be resulted and solved
on time.
5. How are these factors impact upon your decision making as a store manager
The above mentioned factors are stakeholders and corporate social responsibility that can impact the
operational department. The store manager faces the critical circumstances for meeting the customer and
management expectations.
In stakeholders suppliers are also included who has the capability to impact the stock level of the Tesco.
In this case, the stock manager has to make such decisions that ensure inventory sustainability for
meeting the customer’s demands. In this context also the manager has to manage the long term
environment sustainability to meet the demand of the organizations as well. In maintaining the
sustainability in inventory department, timely fund investment is to be made so as to bring the
technology that raises the performances of the team members as well (Mackenzie et.al. 2018). Store
manager will also make sure that stock in the organization is effectively managed considering the CSR
policies and products are stored in eco-friendly manner.
For instance: if the supplier of the Tesco stop giving the inputs or cannot meet the demand of the
organization then the store manager has to make the quick decisions to arrange the inputs or products
from any other supplier in order to avoid the situation incompetency in meeting the demand of the
customers. Otherwise, it will also ultimately impact the profits and sales of the Tesco altogether.
Store manager itself is the stakeholder of the organizations that influence with the external environment.
The role is to recruit and train the employees working in their department with the use of technology.
Managers have to create such decision making so that first himself can gain the knowledge and
secondly, train to the employees for use of inventory management tool. Thus in this context decision
making must be made easy and laid in the effective manner. As in the store department, it is important
for the store manager to maintain the health and safety regulations. On this account, manager has to
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formulate the CSR policies related to employees as well and decision in favor is to be formulated
(Bolman and Deal, 2017).
Moreover, it can be said that both factors such as CSR and stakeholders ultimately influence the
operations and functioning of the store department.
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Conclusion
In the current scenario, the report had discussed the importance in the area of operation and management
in context with Tesco supermarket. The role of leaders and managers are discussed in concern with
characteristics and roles. The effective comparison between the two has been reviewed and it can be
concluded that both the roles can complement each other in the absence of one. The report had also
reviewed the managers functions of planning, organizing, directing, controlling and coordination as per
the Fayol and the same functions importance are highlighted in the Tesco. It had given analytical
discussion considering various scenarios using situational leadership, system and contingency
leadership.
The study had also assessed the role of store manager of the Tesco organization along with the
importance of operation management in the store. Corporate social responsibility and stakeholder’s
impacts on the operation management had been reviewed and its impacts on the decision making of
store manager have also been shown related to technology and safety environment.
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