Operations Management Tesco Case Study

Management And
Operations

INTRODUCTION
Leadership is regarded as capacity and ability of group or individual for guiding and
influencing members or follower of business. Similarly, management is defined as coordination
and organisation of various activities, task of business for goal achievement (Ageron,
Gunasekaran and Spalanzani, 2012). These both are crucial for firm in order to grow and achieve
success and sustainability in competitive world. The given report is supported on TESCO
founded in 1919 which deals in retail sector. As being human resource intern at TESCO have to
play various roles in recruitment, selection of candidate. It is multinational groceries organisation
serving globally need to evaluate their requirements. The aim of project is to discuss about
various role of leader and function of manager in different situations. It also highlights operation
management and its functions and relationship of leadership and management in business
environment.
TASK 1
P1 Define and compare different roles and characteristics of a leader and a manager
Definition of Leader and Manager
Leader is a person who motivate and influence individual or group of people to achieve
their goal. A person that holds a superior position and able to exercise high degree of control
over other. Leader is an individual who can lead a group, individual, or country through his
commands. A good leader properly communicate ideas, vision, and motivate other significantly
toward their mission. According to Judy Crockett “A true leader is creating a framework to
encourages other to tap into their own skills and ideas that leads to freely contribute in project or
company”.
Manager is an individual who is in charge of certain group of task of company and
responsible for controlling group of people or staff of TESCO for completion of tasks (Choi,
Cheng and Zhao, 2016). A manager has a staff of people who report to him or her regarding their
working in company. TESCO manager have to take many decision for achieving business goals.
Managers focus on structure necessary to complete and achieve desired results. According to
Henry Fayol “managers is responsible to plan, forecast, organize, command and control
employees”.
Comparison of role and characteristics of Manager and Leader

Managers and leaders play a very important role in attending business goals of TESCO.
They have different role and characteristics to influence employees to successfully complete task
and building good team in TESCO. Comparison between roles of manager and leaders is
explained below:
Roles Manager Leader
Decision making Managers make decisions. Leaders facilitates decisions.
Focus They focus on process and
procedure of company.
They focus on individuals or
employees of company.
Characteristics Managers Leaders
Instruction/ actions Manger direct employees. Leaders coach their subordinates.
Risk taker They control risk or minimize risk
of organisation.
Leaders are willing to try new
things and take risk.
Capability Managers copy same rules and
behaviour in their working.
Leaders are unique in their
working.
Difference Between Management and Leadership
Basis Of Differences Management Leadership
Meaning It is an art of getting things
done from other by proper
planning and coordinating
work (Galindo and Batta,
2013).
It is skills that can help leader
to guide and lead their
followers and individuals for
influencing.
Strategy This work on basis of reactive
strategy.
This work on basis of
proactive strategy.
The role of leader is explained with help of Adair theory which is described below:
Determining Task- Leader should make SMART goal for clear objectives.

Planning- The leader should be open minded, creative and positive for proper planning
in case of contingency.
Briefing- The leader should create positive atmosphere, foster teamwork and others.
Controlling- Leader should be able to control each and every activities of business.
Evaluating- The performance of employees should be evaluate and appraisal should be
made accordingly and training should be provided.
Motivating- It is the work of leader to motivate their team and members for better
performance.
Organising- Each and every work should be organised in better and effective manner.
Setting Example- The leader should set best example for others so that work can be done
in effective and efficient manner.
The functions of manager are as follows:
Planning- Manager should make proper plan in order to carry work at TESCO.
Organising- The planned work should be organised very carefully for better outcome.
Controlling- Each and every activities should be controlled in better manner so that
performance can be done.
Directing- It is manager responsibility of manager to direct and guide their subordinate
so that they can work in effective manner for result achievement.
TASK 2
P2 Role of a leader and the function of a manager apply in different situational contexts
While business operate in competitive market, it has to face various situations which can
hamper business and their activities. In such case, leader and manager of TESCO plays an
effective role to overcome issues. Different situations faced by TESCO are as follows:
Conflict- This situation can arise in TESCO because of various reasons. When top
management fails to communicate with low level manager then conflict arise in respective
organisation. They carry work as per their own perception which create problem in achievement
of goals and objectives. In order to resolve conflict, leader need to communicate with employees
and provide them proper training and development for improvement (David and David, 2013).
They can use system leadership theory that provide proper rules and regulation to carry out task.
Similarly, manager of TESCO can reduce conflict through proper planning. They should make

plan for each and every activities assigned to employee for carrying work. Each work should be
communicated to staff for goal achievement. After planning they need to organise work as per
skills of working force that better performance can be given in best possible manner.
Staff Turnover- It is most common situation which is faced by many organisation. It
happens due to lack of fulfilment of employees need and demand. The respective organisation
does not focus on their benefits such as rewards, motivation and recognition and others which
leads them to leave organisation. There are different roles which can be played by TESCO leader
for reduction of staff turnover. Firstly they need to analyse take feedback from working
employees in order to know reason behind staff turnover. The leader need to recognise highly
performed employees and provide training and development to low performer for solving issues.
They need to create opportunities for them so that they can proof themselves in competitive
market and make working environment as respectable place. Also they can adopt situational
leadership theory to solve problem as environment is dynamic so they should be ready to adopt
any situation in order to solve problems. Similarly, manager should direct and control arise
problem in TESCO for reducing staff turnover. They can function as planner to plan work for
staff in terms of training and development session, motivation, encouragement, rewards and
others. This helps respective organisation to reduce arise problem in business. If employees get
proper tools and resource, positive environment, proper communication then they can work for
betterment of business and focus on goal of business rather than leaving organisation. They
should be directed on regular basis and controlling for each and every activities for betterment of
firm (Dekker, Bloemhof and Mallidis, 2012).
P3 Different theories and models including situational, systems and contingency leadership
Leadership is defined as procedures through which they guide, influence, direct worker
and their behaviour for accomplishment and achievement of goals and objectives in particular
situation. They can easily influence other for better performance. There are different theories and
model of leadership that are described below:
Situational Leadership- This theory is developed by Ken Blanchard and Paul Hersey
and known as adaptive leadership style. According to this model, leader need to chose best style
for goal achievement as various situation arise in organisation (What is Situational Leadership?
How Flexibility Leads to Success, 2019). This model selection in organisation can help business
in developing work groups and people, establishing and bringing best in individuals and using

common style for all departments and units in business. It can help TESCO because leaders can
easily move from one leadership to another in order to meet dynamic and changing needs of firm
and employees. There are various situations which can arise in corporation such as conflict, staff
turnover, in such case, leader responsibility is to adopt such leadership style which suit best to
given conditions. It is easy to use, simple and leaders have option to change their management
style as per arise situation in order to fit in given conditions.
System Leadership- It is leadership that enable leaders for creating conditions where
individuals at all levels can perform in potential and effective manner for productivity. This uses
principles such as human behaviours in order to create theory of leadership, system design, social
process and organisational strategy (Systems Leadership, 2019). It can help leaders of TESCO to
create effective system and predict behaviour of people. Each and every activities are carried out
in best possible manner because this theory is based on rules, regulations, policies, procedures
and others. According to this theory, proper system should be there for achievement of goal and
objectives. The work performance should be done in systematic manner for achievement of goal
and objectives. Therefore, TESCO need to adopt such theory for good results.
Contingency Leadership- The behavioural approaches and use of traits display that
leadership is depended on multiple elements like nature of work, organisational culture. As traits
are not common for every leaders. There are many situations arise in organisation which are
affected by leaders and in order to solve those contingency theory has formed. It focuses on
requirements of task, organisational policies and culture and peer behaviour & expectation. As
TESCO is large organisation where contingency can arise in organisation in that situation leader
need to play an effective role so that they can overcome from such situations.
The most effective theory used by manager and leader is situational leadership theory as
it can help them to identify various situations arise in business so that work can be carried in
better manner. This help them to overcome from such issues and problems arise in business.
The strength and weaknesses of various approaches to leadership and management are
described below:
Approaches Strengths Weaknesses
Situational Leadership It is easy and understandable
in all situations
It cannot apply in all situation
because of vary in situations

and circumstances.
System Leadership It carries proper system in
terms of policies and plans.
The made plans and policies
does not suitable for all types
of business.
Contingency Leadership This assist in providing
various data which can be utile
for development of profiles of
firms for better planning.
It is reactive and complex in
nature to understand.
TASK 3
P4 Key approaches to operations management and the role that leaders and managers play
Operation management is defined as business practices for creation of high degree of
efficiency within organisation. This can convert raw materials into finished goods for
maximizing profits of concern (Hajmohammad and et. al., 2013). This consists of resources from
materials, technology, staff and equipment’s. The operation manager need to deliver, develop
and acquire products as per customization and abilities of organisation. TESCO should have
effective operation management system in order to achieve goals and objectives. It can be related
work with inventory levels, strategic issues, acquisition of raw materials, quality control and so
on. The main key approaches use by TESCO in operation management along with roles of
leaders and manager are as follows:
Lean Manufacturing- It is the approach which is used for optimal processes and
eliminating waste. This is methodology which focus on waste minimization within system for
maximum productivity. It is also called just lean and lean production which was used by Toyota
company for reduction of waste (lean manufacturing (lean production), 2019). It can help
TESCO for continuous improvement which is based on principles. Different waste occurs in
business such as overproduction, inappropriate processing, defects, transporting, waiting. In
order to better wastage, strategy need to be formulate for production and quality. It can assist
TESCO in waste elimination and sales increment. For lean manufacturing, both leader and
manager plays an effective role in achievement of goals and objectives. Manager need to

implement tools and techniques for minimization of waste and leader need to learn new ways for
waste reduction so that profits can be maximize.
Six Sigma- It is defined as scheme of statistical techniques and tools which focus on
reducing and eliminating wastes and process. This operation management approach includes
improvement, measurement and validation activities (Krajewski, Ritzman and Malhotra, 2013).
It mainly focus on improvement of quality of output through identification and removing causes
of waste. This tool should be used by TESCO for improving quality of goods and services in
better and effective manner so that maximum output can be achieved. As it helps in reduction of
scrap, process cycle time, customer satisfaction, reducing of factory defects. Therefore, with
implementation of such approach can lead to measure current state and increase business
performance. Manager should focus on implementing such system for high quality and leader
need to learn methods for implementation of such systems.
The key operations of TESCO are given below:
Location Strategy- TESCO has key operations in location strategy as it is carrying
business in various environment of world such as local, global and regional. This can helps in
achievement of goals and objectives.
Design of Goods and Service- In this type of operation, respective organisation need to
design goods and services by using technology. In order to add more features in existing
products, it is doing investment in research and development to fulfils consumer need and
requirements.
Quality Management- TESCO is using six sigma and lean manufacturing system for
reduction of waste and improving quality. This can assist in continuous improvement and
production of high quality products (Parsanezhad and Dimyadi, 2013).
There are some operational functions of TESCO with responsibility and role of manager
are mentioned:
Finance- The manager should make proper budgeting for all department in order to get
success and growth. They need to form budgeting, maintaining records and other responsibility
for success of business.
Forecasting- It is procedure for making future estimation of goods and services. With
help of this consumer requirement can be known and accordingly production should be done. It
is manager responsibility to make future strategy for effective outcome.

P5 Importance and value of operations management in achieving business objectives
Operation Management is referred as management area which focus on controlling and
designing procedure of production in operations of business for products and services (Reid and
Sanders, 2015). This involves process where input is converted into output for delivering desired
goods. The importance and value of operations management in achieving business objectives are
described below:
Importance of Operations Management
Product Quality- With help of operation management, TESCO can ensure quality of
product and services. It is very important for respective organisation to consider aspects of
durability and reliability. This can help to deliver high quality product to people for achievement
of goals and objectives.
Customer Satisfaction- It is most essential for TESCO to satisfy their consumer by
providing high quality goods and services in better and effective manner. By maintaining quality
of products can help to meet consumer satisfaction. The operation management helps in
achieving business objectives.
Revenue Increase- With supply of high quality product and consumer satisfaction
provide positive reputation of organisation in competitive market which leads to increase in
revenue. This helps in attraction of more and more consumers and expansion of market share.
Therefore, it can assist in increment of revenue and enable organisation to grow and sustain in
market.
Value of Operations Management
Higher Standard of Living- With adoption of operation management, leads to increase in
standard of living (SaucedoMartínez and et. al., 2018). It is responsibility of TESCO operation
manager to improve high standard by providing high quality goods and services. This can lead to
increase value of respective organisation in competitive market.
Better Quality of Goods and Services- With serving of better quality of goods and
service can increase value of operation management in effective manner. Operation management
should focus on improving quality of product so that large number of consumer are attracted
towards organisation and buy goods. Therefore, with serving of high quality of goods leads to
increase value of operation management of TESCO.

Improved Working Conditions- It is responsibility of operation manager to improve
working conditions of people for value increment. TESCO should focus on quality goods and
services for better outcome. If all employees get good and positive environment then they get
attracted towards business and their goal.
TASK 4
P6 Factors that impact operational management and decision-making by leaders and managers
External environment is made of all factors which can impact business operations. It is
uncontrollable factors which can be change at any point of time and should be implemented by
organisation for getting success in competitive market (Stadtler, 2015). The different factors
which can impact operational management and decision making of TESCO by leader and
managers are described below:
Government- This factor can impact operation management as government of any place
is not stable which keeps on changing. As per this factor, it is very essential for leaders and
manager of TESCO to know about rule and regulation of government for effective change. The
manager should adopt changed policies and plans of change government and leader to implement
in best possible manner.
Employees- If requirement of employees and staffs are fulfilled then they work for
betterment of organisation (Walker and et. al., 2014). They plays an effective role in impacting
operation management of TESCO as they are main asset of business. It is very necessary for
leader and manager to cooperate their working force for better results. The manager need to hire
skilled and capable staff for achievement of goals and objectives. Similarly, leader should
provide proper guidelines and framework for carrying out work of business.
Raw Materials- It is responsibility of operation manager to check availability of raw
materials required in business. If TESCO manager does not focus on such issues then it can
impact business and their profitability. Therefore, both leader and manager make effective
decision for business in better manner. Leader should check requirement of raw materials and
production to be done and manager need to make budget for purchasing of materials.
Corporate Social Responsibility
It is defined as self regulating firm model which can assist company to be accountable to
public and stakeholders. The implementation of such CSR activities include social,

environmental and economic in market. This can help society and environment in contributing to
economic growth of nation. (Wong and et. al., 2012). TESCO is providing employment to
disadvantaged and unemployed people by running a job guarantee scheme. They are giving
training to old aged people and single parent in order to develop new skills in them and make
employable. Although these activities improve goodwill of company but at the same time put an
extra burden of cost of the organisation. This ultimately generate second thoughts in mind of
leaders and manager who has to make investment related decisions. They could have invested
these funds in opening new stores but CSR activities force them to change their decisions.
Values
Tesco has three values, ''No one tries harder for customers'', ''We treat everyone how we
like to be treated'' and ''We use our scale for good''. Following values in daily business is bit
difficult for every firm as corporate world do not follow any value. If any competitor of Tesco is
doing their bad promotion then normally they will do the same. But, because of values of Tesco,
they wouldn't do it. Managers and Leaders of company may want to give a befitted reply to
competitor but their values will force them to change their decisions.
Ethics
Ethics of Tesco states that customers and workers can raise their voice regarding any kind
of misconduct at work. If an employee is performing well but her attitude is not good towards
other workers then she will get terminated from the company. Managers and Leaders may not
want to make this call because they will loose an efficient personnel but this ethics will influence
top level management to take an unwanted discussion.
Sustainability
Tesco understand that survival of business is not possible unless they switch to using
renewable energy. New forms of energy like solar, wind are very expensive and no company
want to use them because of same reason. But sustainability issue give no option to any
organisation. Tesco understand that present sources of energy are going to get expensive in
future and they are harming environment also. They have taken a decision of using 100%
renewable energy because of developing a sustainable business model.
CONCLUSION
As stated report, it has been summarised that manager and leader are considered as
important part of organisation's success and growth in competitive market. It is very essential for

respective business to apply and implement theories in order to encourage and motivate team for
goal achievement. Here, operational management is required in firm for achieving both short and
long term goals within given time period. Different factors such as government, technology, raw
materials can impact operational management and leader & manager should work on it.