Culture and Structure of TESCO

This report discusses the culture and structure of TESCO, a British international general merchandise retailer. It explores the hierarchical organizational structure used by TESCO and the role culture that contributes to its performance. The relationship between organizational structure and culture is also examined.

TESCO

Table of Contents
INTRODUCTION-..........................................................................................................................3
Culture and structure of TESCO..................................................................................................3
Factors contribute in organizations performance.........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION-
Organizational structure and culture are the most essential element of business success,
good culture at company sets high expectations, for how employees work and behave together
and how well staff function as strong team. The present report is based on Tesco company, it is
British international general merchandise retailer in UK. This study, explain the culture and
structure of organization and also justifies these factors' contribution in firm performance.
Furthermore, it clarifies the relevant models and theories of organizational culture and design in
context of Tesco.
Culture and structure of TESCO
Structure-
Tesco is one of the leading multinational organization in retail sector, they provide the
best quality groceries products to its consumers. It operates their business across the world
effectively with the help of diverse workforce. Recently they operate in 13 nations, include
China, Thailand, Turkey etc.
Hierarchical, divisional and functional structure are three forms of organizational
structure, that will be adopted and use by organizations according to their size.
Hierarchy is the way to structure a company use different level of vertical link and
authority or large chain of command, between top and subordinate levels of firm.
According to Gerasimov and Gerasimov, (2015) functional structure of organization is
one of the most general structure in which group of people work accordant to set of similar and
specialized roles. It offers high level of specialization, improve staff working skills and enhance
work productivity and efficiency due to specialized technology and abilities. Foss and Weber,
(2016) stated that hierarchical structure is much better than other ones, because it is easy to
manage and provide meaningful results.
TESCO uses hierarchical structure which is wider than any other type of organizational
structures. It focuses on various departments in business, firm is using this structure because of
large size and multiple layers, it is one of the reason behind it. Its structure is also settled on
function as against to location. The structure use by TESCO is easy to manage, it provides clarity
on applicants roles and each management focus on there work with clear aim that helps to gain
positive results (Marek, 2014). This kind of structure is traditional to company and majority of
power is hold by owner of organization.

In context of TESCO, the structure at store level is divided into four layer, where regional
manager is accountable for considering the performance of food trading manager, non-food
trading and personnel manager effectively, they provide guidance to all of them in regard of
working better to increase the productivity and profitability of business rather than before (Lin
and Peng, 2018). The structure above is not related for all stores of company and some stores
operate with slenderly different structure reflecting its size, range and location of other stores
specific elements. In above illustration, it is clearly defined that higher level controls and monitor
the performance of lower levels of hierarchy. Senior level management consider delayering
chances, for example, increasing flexibility of each operation and modification within stores.
Illustration 1: TESCO Organizational Structure
(Source: Organizational structure at store level, 2018)

Tesco adopt hierarchical organizational structure which is well managed by the board of
directors, they give order to audit committee, corporate accountability's committee, and other
effectively in order to make changes as required in business (Galbraith, 2014). Organization
employees more than hundreds of thousands of people all around the globe, it is quite impossible
for one person to keep eye on all workers in workplace, that is why firm uses' hierarchy model or
structure to manage and organized different operations in nations, different departments, stores
and applicants.
Handy's model of organizational culture-
It suggests that all organizational cultures is consists of four various sub cultures, it is fine
mix of these sub cultures that help to produce organization's different culture. There are the
following types of organizational cultures-
Role culture-
This type of culture is illustrated as building help by beams and columns, each block has
specific job role or duty of going keeping up building, workers are role occupants. Company
with role culture is characterized by specialized or strong functional areas collaborated by lower
band of senior management at high and top degree of formalization. In simple, words role culture
is management and business structural concept in which all employees are assigned at some
specific job role of duty (Torlak, 2016.). It is often use in wider organizational structure such as
TESCO that need to enhance its levels of efficiency and productivity more than before. In
organization when management will not define the role of each applicant clearly it impacts on
productivity and ability of workers negatively. In this culture position is the main power source,
individuals is selected to perform duties satisfactorily. Role culture is difficult to adapt to change,
Illustration 2: Tesco Business Governance Structure
(Source: Organizational framework, 2017)

it effects staff, frustrate ambitious applicants who are power oriented and wish to control other
work in interest of outcomes than method. Firm with this culture is based on procedures and
rules, that will use to control work of individuals in workplace.
Power culture-
It is considered as strong culture, based on dominance of one or more number of
individuals within companies. Person with power culture take all the decision in context of
company for increasing their growth and productivity much better than before. Manager or
senior authority hold the power to hire and recruit applicant in company. They also have power
to promote applicants based on work and efficiency. The use of power in company directly affect
on worker productivity and performance. While promoting employees, manager use power in
positive way that increase the motivational level of all the staff members effectively, on the other
hand negative use of power demotivate employees and decrease its performance continually.
Task culture-
It forms when group of people in firms are formed to consider some specific issues or
process of work. Task is essential thing, so power within group shift depend on status of current
issue and mix of team members. It is project or job oriented culture, associated with companies
that adopt project or matrix based organizational designs. When task is not divided equally in
workplace it directly affects workers ability and quality of work which decrease the operational
efficiencies of business, might be they can loss competitive advantages within particular sector.
Most leader and manager, at junior and middles levels prefer to work with this culture with their
expert power, emphasis of team and group objectives. This culture is not appropriate for all
situations and circumstances.
Personal culture-
It is one of the Handy's four organizational culture which is not found in too many firms,
yet number of people's espouse some of their values. According to this culture when applicant
assist and serve individuals according to their personal interest without overriding the business
objective. It influences relationship and group norms with other workers, these type of people are
not easily impressed and attracted by personality.
TESCO Organizational culture-
It is outlined as assumption, underlying beliefs, ways and values of interacting that
support to unique psychological and social environment of firms (Moore and Brannen, 2018).

Role culture of TESCO contribute to build strong team or workforce, it helps to foster
innovation, empowerment, personal as well as business growth. Management of company word
hard in order to create good culture at workplace in which its workers thrive both personally and
professionally, health blend of work.
Senior department of business nurture healthy avenues and positive atmosphere of
communication with their leadership structure. All level of workers play, work and enjoy
together within different events, recreational, outings opportunities throughout period. This type
of TESCO organizational culture encourages life balance in its staff and also helps to build
healthy and effective interpersonal connections among team members.
As discussed by Bauer and Schiffinger, (2016) power culture is beneficial for company in
which they can control the performance and work activity of all workers effectively. According
to this culture, only one person take decision very quickly that reduce risk of confusion and cater
good outcomes.
Samaha, Beck and Palmatier, (2014) elucidated that role culture is better than other,
because it shapes way people communicate and interact at its work area effectively and take
decision in group with new ideas and concept of work.
It can be said that organization is uses role culture within their business structure. It is
defined as level to which workers highly controlled by manager, they hold strong power to
determine the accountability's and roles, and divided according to specific job. All the team
members doing their job and completed task on time without any issues that positively impact on
business growth within marketplace. Culture include beliefs, language, habits, systems and
visions. An organizational culture affect interaction within individuals of company like customer
and employees.
TESCO want to increase their productivity and operational efficiencies more than its
competitors in which role culture contribute a lot. It helps to reduce amount of redundancies and
confusion in workplace among team by providing each employee specific set of tasks and roles
for which are accountable.
Relationship between organizational structure and culture-
Organizational structure is partially defines the culture of company but organizational
culture is some style defines organizational culture of firm. Structure of large organization such

as Tesco is frame work for culture to be enforced, while culture prescribe how business will be
structured. In simple words, structure of company is related to culture, when management behave
and appraise all its workers from different level, it helps to create positive culture that motivate
all the employees equally. Senior manager communicate effectively with its lower level staff that
enhance motivational level of people rather than before and increase interest of performing task
highly effective manner.
Factors contribute in organizations performance
Organization structure is one of the factor that contribute in company performance within
retail industry for longer term (Zhang and Wei, 2015). With the help of this structure
management define role of each applicant easily in which every worker recognize their
responsibilities. It follows pyramid layout, every candidate in firm except one, CEO is
subordinate to someone else within company. It allows manager to see the performance of every
employee clearly that help to promote them for performing better than others. Promotion and
appraisal is the way to motivate staff, it makes them able to perform effectively that enhance
companies performance as well as productivity. This structure provide opportunities for
promotion and motivate staff to work well. It inhibits performance of TESCO, depending on how
efficiently senior relationships and workflow affect productivity. When senior authority in this
structure give clear directions they can increase work efficiency of staff better which allow them
to achieve common goals and objective of business.
Culture shapes the way workers interact at workplace, as mentioned above Tesco uses
role culture which helps to create healthy environment in work areas and encourage staff to stay
loyal and motivated towards management that help to increase performance of company. When
relationship between management and employees is healthy they can work better and perform
together for achieving competitive benefits. As per view of Bradley, (2016) culture contribute in
business performance as help to increase profitability. Good connection between manager and
workers create happy and creative atmosphere that increase level of productivity at higher level.
In Tesco collaborative culture make employees capable to support each other, employees enjoy
coming and performing to work. Tetrick and Winslow, (2015) contradict that culture of
organization is depended on management and senior behaviour which affect staff performance,
when they behave positively it creates health environment which is beneficial for organization.

In workplace, team member understand importance of other ideas, they take opinion of other
applicants while making plan for completing task on time.
CONCLUSION
From above, it has been concluded that Tesco uses hierarchical organizational structure
which is appropriate and suitable for company size and number of workers they have. It
contributes in enhancing company performance within market. Role culture adopt by firm
increase productivity and motivational level of all employees effectively. Person, culture and
structure of business is interrelated with each other, when manager behave positively it directly
impacts on staff work, in which they drive towards achieving goals and objective of company in
effective manner.

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Online
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<https://tescocontrols.com/about-us/careers/your-career-join-in/company-culture/>
Organizational Framework. 2017. [Online]. Available through:
<https://www.tescoplc.com/investors/corporate-governance/our-corporate-governance-
framework/>
Organizational structure at store level. 2018.[Online]. Available through: <https://prezi.com/-
l58wxtvlexb/organisational-structure-of-tesco-and-ty-hafan/>