Organizational Behaviour: Change in Leadership and its Effects on Tesco

This study explores the change in leadership and its effects on Tesco, focusing on organizational behaviour. It discusses the different roles of change leaders, the perception of leadership in Tesco, and the effects on personality and perception. It also examines the causes of change, both external and internal, and the strategy to implement change. The study includes a SWOT analysis of Tesco and discusses resistance to change and the influence of motivation.

Organization Behaviour
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Executive Summary
In this study, we have explained many things and we have taken TESCO Company to explain all
the relevant topics in our study. Every firm aspires to have a market advantage in the modern
business environment, which necessitates strategic adjustments to its structure and way of
thinking. It can be difficult for businesses to think through the best way to alter management.
One of only a few major businesses, Tesco, constantly modifies the institutional framework of its
business to implement fresh and creative business strategies in the competitive market. This
project will aid in the analysis of planned change and centres on the difficulty of carrying out the
transformation process inside organisations. The task also entails comprehending the notion that
changing is a preferable course of action in the minds of customers and workers.
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................5
Change in leadership........................................................................................................................6
 Agitator.................................................................................................................................6
 Innovator...............................................................................................................................6
 Orchestrator..........................................................................................................................6
Perception of leadership in Tesco....................................................................................................6
Effects on organizational behaviour................................................................................................7
 Personality............................................................................................................................7
 Perception.............................................................................................................................7
Change in leadership which benefits Tesco.....................................................................................7
Cause of the change.........................................................................................................................8
 External.................................................................................................................................8 Political..........................................................................................................................8 Economical....................................................................................................................8 Social.............................................................................................................................8 Technological................................................................................................................9 Environmental...............................................................................................................9 Legal..............................................................................................................................9
 Internal................................................................................................................................10 Design of new products and services..........................................................................10 Low performance and morale......................................................................................10 High stress and staff turnover......................................................................................10 New management team...............................................................................................10 Inadequate skills and knowledge base.........................................................................11 Innovation in the manufacturing process....................................................................11
 SWOT Analysis..................................................................................................................11 Strength.......................................................................................................................11 Weaknesses.................................................................................................................11
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 Opportunities...............................................................................................................12 Threats.........................................................................................................................12
Resistance to the change in leadership..........................................................................................13
 Individual level...................................................................................................................13
 Organizational level............................................................................................................13
Influence of motivation..................................................................................................................13
Strategy to implement change.......................................................................................................14
 Unfreeze..............................................................................................................................14
 Change................................................................................................................................14
 Refreeze..............................................................................................................................14
Appendix........................................................................................................................................15
References......................................................................................................................................16
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Introduction
 The method through which a firm or corporation alters a noteworthy component of its
assembly, such as its philosophy, the functional infrastructure or supporting technologies,
or its internal processes Organizational change management is the technique of guiding
transformative culture toward a goal, and it typically entails three stages: preparation,
implementation, and follow-up.
 Many beneficial effects of change in an organisation help you maintain your comparative
benefit and maintain credibility in your industry. Change has several advantages, such as
fostering, skill development, workplace morale, expanded company opportunities, and
increased staff morale.
 Tesco is an offshore general stock retailer. The business operates online and in several
storefront formats. It works in stores in a range of plans that are renowned for the scale
and the assortment of products sold, including big, small, dotcom exclusively, and one-
stop. Tesco provides a wide diversity of meals and non-food items, containing fresh food,
drinks, patisserie, supermarkets, home and amusement, baby products, clothing, air
conditioners, fresh food, pets, skincare products, as well as contemporary tech and
electrical goods. In the UK, Tesco Bank also provides advisory services, financial
products, and financial products. The company has operations in both the UK and all of
Europe. Tesco's facilities are located in Welwyn Garden City, part of the Metropolitan
Plan area in the UK.
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Change in leadership
By utilizing the strength of vision to transform a goal from paperwork to day-to-day operations,
performance management supports businesses through times of transition. Too frequently,
leaders pass up chances to take on certain responsibilities throughout the transition process.
Knowing your position as a change leader based on the endeavour and situation. It may not be as
beneficial to depend on the identical leadership and administration strategies utilised when your
organisation isn't through a transition during an organisational transformation (Komives, and
Wagner, 2016). As a facilitator who prioritises good results, you can play one of three different
roles:
 Agitator
By bringing people's or groups' complaints to the attention of the public, this function frequently
prompts proactive organisational reform. The agitator acts as a disruptor, recognising problems
and pledging to take action in the direction of change that produces remedies.
 Innovator
While the agitator airs problems, the inventor comes up with practical ways to deal with them. It
also functions as a planner in this position.
 Orchestrator
To scale the suggested solution, the scheduler takes the innovator's concept and organises
operations across organizations, organisations, and sectors. This is frequently the aspect of good
management that is most obvious.
Perception of leadership in Tesco
After the ownership changed, Tesco expanded jointly, and it was found that its production
process requires more effort than its acts do. The organizational commitment of Tesco is a
critical factor in major the factory, job happiness, and work colleagues. The company's shifting
administration is one of the most significant aspects influencing Tesco's key contributions. Tesco
has developed collaboratively as a consequence of the change in leadership, and it has been
exposed that the energy consumed in its production process is higher than that utilised in its
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headquarters. One of the most important basics in the responsible work situation, job happiness,
and working dealings at Tesco is its corporate culture. Among the most significant factors
causative to Tesco's results, in this case, depends on the leadership transitions. With its devotion
card programme, Tesco analyses the purchasing behaviour of more than 13 million subscribers in
a valuable way (Ajibola, 2022).
Effects on organizational behaviour
 Personality
Other factors that influence how different people behave in the same circumstances include
mental fortitude, the capacity for decision-making, self-assurance, awareness of his
surroundings, and the capacity for planning. However, these qualities are unique to humans and
are not present in machines; in fact, modern machines have used AI (Ai)-powered) have
gesticulations and can behave differently in similar circumstances.
 Perception
Existing mental accessibility of a specific person's trait, or the degree to which a person's feature
immediately and easily is remembered by the perceiver, is one division that affects how we
observe people. Accessibility issues will cause individuals to focus on certain characteristics of
the opposing person. Since physical attractiveness is a very accessible attribute for some people,
they may be the ones who notice someone's attractiveness initially. Some people focus more on a
person's race or faith, while others are more afraid of their tallness or weight (Jiang et al 2017).
Change in leadership which benefits Tesco
Tesco has been able to use the management style because of its flat arrangement, which enables
each employee to participate in the company's growth. The business and management style used
by Tesco has proven to be operative in fostering the production's ongoing growth. Tesco is
dedicated to aiding its labour force in finding the ideal role, schedules, and resources to suit its
needs. Regardless of whether a change in strategy is being made owing to religious requirements,
support for medical expenses or benefits for illness or incapacity, or any other reason,
the company is alert of this and attempts to be open to incorporating the staff. In Tesco, rising
management is a key module; everyone has a job to show, and each function’s purpose to
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confirm that the greatest is performed for every client. However, Tesco's business approaches
have given them authority over opponents and even enabled them to grow successfully
despite the downturn. To promise that the hands complete the project at the labelled time and
that Tesco maintains its focus and keeps up with continued progress, the managers apply various
leadership styles, such as the autocratic management style. This shift in Tesco's leadership is
advantageous for all parties (Johnson, et al 2018).
Cause of the change
 External
 Political
This company operates in 12 countries, including those Asia and Europe. It is susceptible to
many political problems that could affect Tesco's companies. These foundations include tax
rates, existing and proposed laws, radical unpredictability, youth redundancy, and the financial
state of the lands in which it works. The local council recommended the "Tesco Charge," a tax
on retailers, but the UK administration forbidden it to avoid price increases. Future deeds of a
related nature may damage Tesco (Adamyk, 2019).
 Economical
Tesco is obstructed by a variety of different elements, counting costs, selling prices, and
earnings. The firm has to think about the higher deriving prices in the UK. It will probably raise
the prices and expenses while wounding its wages. Both the product's perception and the cost
management method may be obstructed. The company's achievement in recent years has been
busted by two key policies: internationalization and participation in overseas marketplaces. With
a 27.7% customer base in the UK food sector, Tesco is still dependent on the UK consumer base.
 Social
Consumers' buying preferences are varying over time. Due to their busy lists, people want rapid,
same-day shipping with a reasonable merchandise return process. They enjoy spending in one
place. Tesco must be conscious of these problems and deliver the resources obligatory to address
them because it depends on UK clients. How consumer attitudes and perceptions impact the
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claim for goods and services is another noteworthy issue. The prevalence of obesity is another
problem, and consumers are now more worried about their health. Tesco needs to take into
account altering consumer demand and attitude toward organic products (SANGWA, 2017).
 Technological
The development of technology gave Tesco fresh chances to win back customer confidence.
Tesco adopts readily accessible experimental technologies because it views technological
innovation as an opportunity. Tesco has a lot of room to grow because of the progress of
technology. The enlargement and broad acceptance of online weekly shops with home delivery
options are 2 of the biggest ones. Second, buyers who use self-service till terminals report that
they are quick and easy to use, which has reduced labour costs. To further its long-term objective
of tumbling its co2 emission, Tesco has also made substantial efforts in energy-saving
sequencers (Lin, and Peng, 2018).
 Environmental
Government entities are knocking a lot of burden on businesses to solve environmental tasks.
Firms have the concern to address these difficulties for the worthy of society. By 2030, Tesco
plans to generate all of its power using renewable sources. The trade plans to decrease its carbon
influence by up to 50% by 2020.
 Legal
Laws and regulatory issues also have a direct influence on Tesco's success. Tesco offers
discounts to its customers on their gasoline purchases based on how much money they spend in
their food shops. In addition, there are several price reduction promotions. Tesco is prohibited
from paying any employee less than the legal minimum wage. Drug sales to children fall the
same under the category. It should be emphasised that Tesco has previously been subject to legal
action, penalties, and other issues due to customer deception (Moura, 2021).
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 Internal
 Design of new products and services
When leaders incorporate design thinking into their leadership philosophies, it facilitates the
growth of a community setting where innovative ideas thrive, solutions find acceptance, and
team members feel inspired to question presumptions, advance their knowledge, and push the
bounds of what is conceivable. These are the circumstances under which innovation takes place.
Diversity and cooperation are other tenets of product design, where teams made up of varied
individuals feel free to fully participate and contribute their knowledge and talents (Evans, and
Mason, 2018).
 Low performance and morale
Good leadership is dependent on proper communication, inclusivity, and power, all of which
have a positive effect on morale. As top-to-bottom connectivity increases under effective leaders,
a team's enthusiasm will increase. With clear and precise discussions, participants will
comprehend and agree on everything, whether they are praising effort or outlining what has to be
done for the team's goal.
 High stress and staff turnover
Management must maintain employee inspiration and commitment to get to work from them and
improve the occupation as a whole. However, bad performance can lead to a toxic and dull work
atmosphere, which can have a profoundly harmful influence on the separate and endure a long
time on the organisation. Overall, leaders should continually demonstrate compassion, openness,
and integrity in the workforce, and they must continue to be proactive in their plan to create
change if they want to have the most influence on enhancing employee retention (Choi et al
2016).
 New management team
The Participative Management Team's role is to drive change for the project's requirements in
terms of its organisational structure, philosophy, and people. As part of this, stakeholders must
be informed, obstacles must be anticipated, change aversion must be managed, challenging
issues must be addressed, and the whole change process must be guided.
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 Inadequate skills and knowledge base
When leaders are unable to provide their workers with direction, mentorship, and inspiration,
organisational culture and morale may suffer. Poor management is the primary cause of high
turnover rates and lower productivity (Van Wart et al 2019).
 Innovation in the manufacturing process
Visualizing long-term organisational objectives and coordinating actions to attain them are skills
that change employees possess. Effective leaders seek to organise the resources, skills, and tools
necessary to advance the change process by identifying new possibilities for innovation. In other
phrases, an organization's ambition to innovate grows as a result of transformational leadership.
The utilisation of mental stimulation and effective and accurate by leaders is crucial because it
fosters organisational creativity.
 SWOT Analysis
 Strength
1. For its trade expertise, client service, and all-around spending experience, TESCO has
received several honours.
2. Many participants have tried to emulate it since it is one of the major and most profitable
superstores and retail thoughts in the world.
3. The well-founded is in a solid monetary position to endure all sorts of cost-effective
cycles because of its large cash flow and a wide diversity of developing belongings in its
portfolio.
4. Its name has noteworthy brand awareness due to the esteem and reputation it likes on a
worldwide scale for the values of quality, variation, and customer service (Haleem, and
Jehangir, 2017).
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 Weaknesses
1. When TESCO could have been engaged in other policies to acquire an edge over its
competitors, price increases sparked by competition pressures have reduced some of the
store's profit margins.
2. It appears that TESCO may not have shown as much marketplace survey as it should
have because some store formats in some nations have not fared as well as anticipated.
3. Customers may be purchasing fewer goods as a result of having less discretionary cash,
but the business hasn't changed its record or product contributions, keeping it with a
significant cost of registration.
4. Additionally, it can be attempting to service a sizable number of markets that are either
not fiscally viable or do not resemble its tactical objectives (Soegoto, 2021).
 Opportunities
1. Opportunities for obliging ventures where the native firm may support marketplace
analysis and Intel to impact presentation in such subdivisions may exist in states
where TESCO may be fading.
2. For TESCO, there is a great unplanned to increase internet shopping and expand the
places where its delivery services service is available.
3. The marketplace for private-label items offers opportunities
4. Many probabilities still exist in developing nations for certain retail stores that TESCO
presently provides but which can increase accessibility to the western merchandise these
sections need (Xiao, Chen, and Yu, 2021).
 Threats
1. Universal market shares and income will endure being endangered by economic declines
and credit crises, which will affect clients to make fewer and smaller acquisitions.
2. Internationally, food values are increasing, which also bounds what personalities may
buy and their obtainable discretionary cash.
3. Pressures to the labour force, such as increasing salaries and assistance, raise TESCO's
cost basis and exert further weight on its valuing approach.
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4. The sustainability of TESCO is also vulnerable to rising raw physical costs, which is
obliging it to increase its network of dealers to negotiate inexpensive raw material prices
(Fatricia, 2017).
Resistance to the change in leadership
Employees may experience a variety of leadership behaviour problems at both the individual and
organisational levels.
 Individual level
1. Employment status and team or organisational satisfaction can be affected by a lack of
motivation.
2. Ridiculous expectations set by managers or other leaders might lead to conflict at work.
3. Conflict at work may make differences in people's values, views, and viewpoints worse.
4. Poor task management and goal setting might impede personal growth prospects.
5. Lack of work-life mix can negatively impact an employee's performance on the job as
well as their health and well-being (Mathews, and Linski, 2016).
 Organizational level
1. The lack of a strategic plan may affect the expansion and financial success of a
corporation.
2. The conflict between management levels and negative feelings like dissatisfaction and
disappointment can arise from a misaligned vision (Buchanan, and Huczyinski, 2019).
3. Employee happiness and level of motivation inside the company can both be impacted by
a lack of faith in management.
4. If employees are completing jobs that other people should be completing, unclear
responsibilities within the company can cause costs as well as irritation.
5. Controversy or friction may arise inside the organisation as a result of set initiatives that
are not in line with the objectives of specific teams or divisions (Mullins, and McLean,
2019).
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Influence of motivation
The company's employees may have major challenges as a consequence, especially if it has a
wider impact than expected or impacts their whole style of operation. Furthermore, it will take
lengthier than the directors had predicted if the staff is not sufficiently driven to handle such a
change process. Time and money are being wasted, and the sustainability of the business may
depend on how this crisis is handled. The degree of passion has a big impact on how well the
transformation goes. Change can frequently fail if the staff members are disenchanted and
demotivated. The change procedure can be extremely difficult for a long-established team since
the team members already have established routines and routines and dislike having to modify
them (Alqatawenah, 2018).
Strategy to implement change
Lewis three-step model
 Unfreeze
According to Lewin, social psychology regarding change is in a condition of quasi-stationary
balance. This mindset, which may almost definitely be obtained both mentally and physically, is
initially held up to permit the body to expand without really obtaining that potential (Hussain et
al 2018).
 Change
The status quo may then be "unfrozen," and your modification can then be put into action.
Implementing a carefully planned organisational change does not ensure predictable outcomes
since the organisational transformation is particularly infamously complicated. As a result, we
must be ready with several change choices, from the change initiative to trial and error. Examine
what changed, what didn't, what sections resisted the reform, etc.
 Refreeze
It is intended for individuals who will be impacted by the shift to stop resisting the forces at work
to make the transition and embrace the new reality as the new normal. The team dynamics, tasks,
strategies, and practices are altered by the new state. If the appropriate steps are not taken to
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preserve and encourage the change, the prevailing behaviour is considered to return (Burnes,
2020).
Appendix
Figure 1(Source By: Research Methodology)
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