Organisational Behaviour and Leadership in Tesco

This report explores the study of organisational behaviour and leadership in Tesco, a British multinational retailer. It discusses the issues faced by Tesco, such as lack of clear management strategy and loss of overseas advantage, and analyzes the application of different leadership theories. The report also provides recommendations and strategies to improve the situations.

Organisational Behavioural
and Leadership 4

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Introduction to Tesco...............................................................................................................1
2. Analysis of Organisational behaviour and leadership issue....................................................2
3. Overview of application theories to the issues that is identified.............................................3
4. Evaluating a possible alternative solution that is required in order to improve situations......5
5. Recommendations with suitable strategies..............................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Organisational behaviour is termed as a study of both group and also performance of an
individual and various activities in a particular organisation (Bakotić, 2016). In other words, it is
that area that helps in examining the human behaviour and also their impact on job structure,
their performance, communication, motivation, leadership, etc. Leadership is defined as that
action which is taken in terms of leading any kind of group of people or a particular organisation
(Chumg, Seaton, Cooke and Ding, 2016). In the following report, Tesco has been taken into
consideration. It is a British multinational general merchandise retailer that has it’s headquarter
in Welwyn, Garden City, United Kingdom. It is the third largest retailer in the whole world that
is measured in terms of revenues.
In this report, research on organisational behaviour will be done by applying knowledge
and contemporary theories. The complete overview of a company will be discussed in this
assignment. Further, biblical frameworks have been discussed into understanding of leadership
and organisational behaviour. In addition to this, this report also highlights on organisational
behavioural theory that will be discussed in terms of applying knowledge.
MAIN BODY
1. Introduction to Tesco.
Tesco is also known as Tesco plc is one of the most reputed organisations in terms of
groceries and merchandise retailer. This organisation is headquartered in Welwyn Garden City,
Hertfordshire, England, United Kingdom. Further, it has been stated as the third largest retailer in
terms of gross revenues and ninth largest in terms of revenues. The founder of Tesco is Jack
Cohen which opened or launched its first store in Burnt Oak Barnet in the year 1931.
The main aim or which is stated as mission of stated organisation is to make what
actually matters in a better way together and is global business that is based on community. Their
one and only aim is to operate carbon free business by the year 2050 and its success basically
depends on such strategies that is formulated in clear manner. In other words they look after
satisfying customers in such way that they can lead in increasing loyalty base of customers
which would also help consumers in increasing the shopping experience from related brand.
In addition to this, the stated firm’s clear vision is to be the most highly valued business
in the market with the help of those customers whom they serve their products and services, the
communities or market in which they conduct their operations and also shareholders, colleagues
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and communities with whom they are sharing their experience (Evans and Mason, 2018).
Therefore, it has been analysed from this that, Tesco is improving year by year as it grew their
revenue from 11.6% that is from 57.49 billion to 63.91 billion while net income that was
improved by 9.44%.
2. Analysis of Organisational behaviour and leadership issue.
Organisational behaviour is that term that helps in providing a clear understanding about
the behaviour of a particular individual in an organisation. The study of this context is basically
related to people or their group who are working together in a team and it becomes much more
challenging when situational factors interact with each other (Felgate and Fearne, 2015). While,
leadership is that term which helps in bringing all people together as a group and direct them
accordingly in order to achieve targeted goal or objective. In other words it is all about creating
such environment where the members of a particular organisation feels valued and bring out their
complete potential. Thus, the organisational behaviour and leadership issue of Tesco has been
discussed as per below context. The cited organisation has been facing number of changes in the
position of leaderships which had a huge impact on the operations that they are performing.
 Tesco failed in knowing which shoppers to target- the major problems in terms of
strategic and leadership is that they lack in analysing the market that has to be targeted.
Thus, a discount that has been provided by various competitors had put intense pressure
on Tesco and has to cut prices in order to compete with various brands that are
discounting their product.
 It lost its overseas advantage- The prior advantage of Tesco in major overseas presence is
not that what it was before. That time leader Clarke was committed to particular business
and after 18 months it was left in order to shut down even after fresh and easy operation
continued.
 The market of UK is sluggish- The market of UK is been tough for the grocery market in
United Kingdom and retail sales also fell down. While in June they suffered a high level
of trading history in a worst manner.
 There is lack of clear management strategy- Strategic management plays important role
as it helps the organisation to prepare them in such way that they can easily face future
challenges. There are continuous changes in management. This has affected the
shareholders to a large extent and they were asking questions control of management in
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terms of business. In addition to this, management strategies are significant in order to
identify various ways that would make them reach the opportunities easily.
 Tesco isn’t well loved- Tesco has its concentration mainly in achieving high level of
growth, speedy expansion of their business and cheap bargains as compared to softer
notions related customer care (Touboulic and Walker, 2015). It also concentrates in
having good and strong relationship with their suppliers that are involved with this
particular organisation. The main issue that Tesco faced was that it was caught out in a
horse meat scandal which has affected the reputation and goodwill in the whole market in
which they were carrying their operations. It had affected the loyalty customer base and
had faced extreme loss due to that scandal.
 Lack of consistency and clarity- The brand management and identity has been confused
Tesco to a large extent as their proposition and particularly in terms of pricing are
actually confused (Grint, Jones, Holt and Storey, 2016).
3. Overview of application theories to the issues that is identified.
The theories that is applied by Tesco over the issues has been discussed as per below
context-
 Democratic Leadership- Under this type of leadership style, the decisions are made by
leader as per the input that has been derived by each member that are involved in a
particular enterprise. This is termed as one of the most effective style in terms of
leadership as it helps in allowing employees in such way that they can exercise their
authority that is needed by them in order to use them in wise manner in future positions
where they might stand. Further, this style also helps in resembling the decisions that is
made in board meetings of Tesco.
 Autocratic Leadership- Autocratic leadership is absolutely inverse to that of democratic
leadership. Thus, decisions are taken under this style without taking input any kind of
input from anyone who basically reports to them. The workers of Tesco are not informed
prior about any kind of direction that has to be taken and has to change their moves as
and when need arises in an organisation. In addition to this, it has also been analysed that
this leaders or managers are ultimate decision maker (Huffington, James and Armstrong,
2018).
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 Strategic Leadership style- This leadership style is that ability that leads the organisation
in influencing others in order to influence others so that they can voluntarily make
decisions that leads in enhancing the prospects of long term success of an organisation. In
other words, it is the potential of leaders or their capability in order to address strategic
vision in terms of an organisation and also try to convince them in such way that they
further pursue that vision which they set in Tesco for achieving long term success. It will
help in making team of those members that are trained and developed in well manner
which would make them in dealing with various problems easily without any kind of
risks or threats.
 Transformational leadership style- It is considered as the most desirable style in terms of
leadership in an organisation (Hunter, 2017). Under this style, positive work culture and
environment is being created which is possible by communicating with team members in
effective manner. Further, strategic vision is therefore developed at certain level which
has to be followed by them accordingly. The main aim of this leadership style is to focus
on setting up high goals and objectives and later they have to fulfil those targets within
particular time period that has been set by Tesco. In addition to this, it has been analysed
through this that, challenges are being set by the leaders with an expectations that their
team members will achieve it accordingly.
 Charismatic Leadership style- This leadership style is completely based on charm and
charisma of leaders through which they attract customers towards the brand. This leaders
are basically self motivated, passionate and confident and these abilities help them in
building powerful stand in the market. Thus, it leads them in gaining huge volume of
customers and making numerous fans which is actually beneficial for the Tesco plc.
Moreover, it is defined as one man show as compared to the collective efforts that is
derived out from a particular team.
 Laissez faire leadership style- Laissez faire means letting them do. Here, leaders of an
organisation leads in delegating responsibility to those members that are involved in a
team and make them so skilled that they work all the task that has been allocated to them
on their own without any kind of supervision. Thus, due to this, new ideas and decisions
are shared by workers which later help Tesco in terms of innovation of product,
flexibility and later in expansion. They can achieve high level of success by creating such
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teams that are highly skilled and self motivated who do not require that supervision level
from their leaders or their employers.
4. Evaluating a possible alternative solution that is required in order to improve situations.
Leadership basically evokes image of well trained and developed man who always tries
to rise in a moment of crisis in the best possible way by taking right decision and right direction
to overcome problems that they are facing (Kitchin, 2017). Thus, there are some times leaders
lack in knowing that is done by others and this is the reason that is required in order to work or
perform task against most common challenges that life throws at us. In addition to this, some of
the strategies or solutions that can be used by Tesco in order to overcome those challenges and
problems has been discussed as per below context-
 Developing personal leadership style- No person in this world is born with an ability or
skills of being the best and skilled leader that is required by an organisation. Therefore,
the worker of stated organisation must work of themselves in the best possible way which
will make them the best person as a leader in any part of their life. In addition to this, this
can be done by finding out good leadership program, coach or any mentor that would
help them in doing this.
 Communication- It becomes difficult for people to communicate with their subordinates
in easy and frank manner. Therefore, positive and frequent communication is very much
important so that the workers can share their views and ideas in terms of particular task
that has been allocated to them in easy and adequate manner. This further leads them in
maintaining good relations with them and also make them to put complete effort in that
work which would lead in achieving long term success and company may reach the
boost. Further, they must also ensure them with different reward system with the help of
feedback that would be provided by workers. This reward system will help them in
feeling motivated and valued to the stated enterprise.
 Make sure that team leaders are happy in their current roles or position- They must try to
ask their leaders as if they are happy in working or not with their respective leaders and
with the work that has been allocated to them. Thus, manager or leader of cited
organisation must try to find out about the skills and abilities that they have and the kind
of work they can perform and accordingly allocate them with respective task. This will
help the organisation in motivating employees and that will further lead them in
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achieving long term success and company may reach the boost. This will also lead them
in making the working environment stress free and positive to work for workers of Tesco.
In addition to this, it is analysed that the quality of work suffers when the environment or
the worker performing that task in unhappy and unfit to do their work as per the
allocation (Knights and Willmott eds., 2016).
 Leaning difference between leader and manager- There is a big confusion that arises
between these two. Thus, it has been stated as the management is that term in which it is
essential to manage various things in a particular firm like budget, flow of work, time
taken to complete task, etc. While leading means to inspire the workers in order to
perform task in positive way, share vision and goal with their respective employees so
that they can focus and make their goal clear and also to provide direction to them to
achieve desired goal accordingly. Therefore, they must try to help their members of
Tesco so that they move things along in the best manner that is possible for them and also
for a company. Hence, this can be done by providing leadership that leads in providing or
increasing the confidence level of an employee.
5. Recommendations with suitable strategies.
Following are some of the recommendations that can be adopted by Tesco-
 Take responsibility- The leaders or manager of Tesco must try to take responsibility of
any kind of actions that has been taken by team rather than blaming others for any
mistake that takes place. This will help them in making good image in the mind of
customers and also that they are worthy of trusting and also employees will respect them
and also their directions.
 Be goal oriented- This is also one of the most effective strategy that can be adopted by
Tesco. This means that they must focus on goals and solutions to reach there instead of
problems that may arise as a hurdle between their paths towards success. Further, they
must plan and make some strategies that would lead them towards success by turning
their energies into on mode. In addition to this, it has been stated that being goal oriented
helps in getting and achieving the most important and urgent things in doing first.
 Sharing the glory- Sharing the glory and also sharing credit is extremely essential for
team leaders and is also an image of effective team leader (Pava, 2015). According to the,
the success and achievements are essential for joint efforts of a team. Further, a leader is
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only as good when they have good team behind them. Thus, sharing glory will help them
in earning the administration and respect from their team which will further help them in
achieving long term success and high profitability and increased productivity. As no one
would love in solving the selfish leader therefore they would have to make their base
strong and positive so that they would attract employees towards them in unique and
positive way.
 Know how to develop a team- This is also termed as one of the most primary traits and
skills that is required in order to develop team members and this done through training,
teaching and coaching. Thus, it won’t be possible for team to achieve desired goals and
targeted objectives without training and development session (Sparks, 2019). Further,
they must try to build people up and make a stronger team which helps in benefiting
everyone that are involved in a team. This can be done easily because they look after
strengths and weakness of their employees of everyone that are involved. In addition to
this, good relationships lead in creating high level of productivity.
 Be courageous and assertive- There are number of risk and rules that has to be faced by
any organisation. Therefore, they must be able in speaking up about things that matters
everyone truly and also must become assertive about everything that is required from
their respective team. Moreover, it has been stated that effective team leader must willing
and ready to face any challenges and any kind of hurdles in such way that they can
achieve goals and objectives of both leaders and also of organisations (Thoradeniya, Lee,
Tan and Ferreira, 2015).
CONCLUSION
From the above report, it has been analysed that the study of this part is termed as the
most important element in terms of management as it helps in making the firm to learn about
those measures that helps them in achieving long term success. In other words, it has also been
identified that leadership is the most important factor that takes organisation to the other level.
Further, it has also been analysed that it has huge impact on both individuals and also
organisations and also leads Tesco in such way that it achieve long term success and business
may reach the boost. In addition to this, this assignment also guides in such way that they can
easily determine that leaders are the most significant person that makes the other workers to
work accordingly as per the needs and also satisfy their wants easily and smoothly without any
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kind of hurdles. Further leadership helps in maintaining good relationship with customers which
makes customers feels valued and can easily attract huge volume of customers towards a
particular brand.
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REFERENCES
Books and Journal
Bakotić, D., 2016. Relationship between job satisfaction and organisational
performance. Economic research-Ekonomska istraživanja. 29(1). pp.118-130.
Chumg, H. F., Seaton, J., Cooke, L. and Ding, W. Y., 2016. Factors affecting employees'
knowledge-sharing behaviour in the virtual organisation from the perspectives of well-
being and organisational behaviour. Computers in Human Behavior. 64. pp.432-448.
Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco. Kogan
Page Publishers.
Felgate, M. and Fearne, A., 2015. Analyzing the impact of supermarket promotions: a case study
using Tesco Clubcard data in the UK. In The Sustainable Global Marketplace (pp. 471-
475). Springer, Cham.
Grint, K., Jones, O. S., Holt, C. and Storey, J., 2016. What is leadership. The Routledge
companion to leadership. p.3.
Huffington, C., James, K. and Armstrong, D., 2018. What is the emotional cost of distributed
leadership?. In Working below the surface (pp. 67-82). Routledge.
Hunter, E.J., 2017. Classification made simple: an introduction to knowledge organisation and
information retrieval. Routledge.
Kitchin, D., 2017. An introduction to organisational behaviour for managers and engineers: A
group and multicultural approach. Routledge.
Knights, D. and Willmott, H. eds., 2016. Labour process theory. Springer.
Pava, M., 2015. Leading with meaning: Using covenantal leadership to build a better
organization. St. Martin's Press.
Sparks, L., 2019. Tesco: how supply chain strategy supports retail success. The Business &
Management Collection.
Thoradeniya, P., Lee, J., Tan, R. and Ferreira, A., 2015. Sustainability reporting and the theory
of planned behaviour. Accounting, Auditing & Accountability Journal. 28(7). pp.1099-
1137.
Touboulic, A. and Walker, H., 2015. Theories in sustainable supply chain management: a
structured literature review. International Journal of Physical Distribution & Logistics
Management. 45(1/2). pp.16-42.
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