Organizational Behaviour: A Comprehensive Analysis of Tesco Plc

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This report delves into the intricacies of organizational behaviour, focusing on Tesco Plc as a case study. It examines the influence of organizational culture, politics, and power on individual and team performance. The report further explores various motivational theories, including content and process theories, and their application within Tesco. It also analyzes the factors that contribute to effective teamwork and the theories that support the development of dynamic cooperation. Finally, the report applies and justifies concepts and philosophies of organizational behaviour within Tesco, considering the contingency theory and path-goal theory.

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ORGANIZATIONAL BEHAVIOR

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CONTENTS
INTRODUCTION................................................................................................................................2
LO 1..................................................................................................................................................3
P1 M1 INFLUENCE OF ORGANIZATION’S CULTURE, POLITICS AND POWER ON INDIVIDUAL
AND TEAM BEHAVIOUR AND PERFORMANCE............................................................................3
LO 2..................................................................................................................................................7
P2 EVALUATE HOW CONTENT AND PROCESS THEORIES OF MOTIVATION AND
MOTIVATIONAL TECHNIQUES ENABLE EFFECTIVE ACHIEVEMENT OF GOALS IN AN
ORGANISATIONAL CONTEXT........................................................................................................7
M2 CRITICALLY EVALUATE HOW TO INFLUENCE THE BEHAVIOUR OF OTHERS THROUGH THE
EFFECTIVE APPLICATION OF BEHAVIOURAL MOTIVATIONAL THEORIES, CONCEPTS AND
MODELS.....................................................................................................................................13
LO 3................................................................................................................................................15
P3 FACTORS THAT MAKES EFFECTIVE TEAM, AS OPPOSED TO AN INEFFECTIVE TEAM...........15
M3 TEAM AND GROUP DEVELOPMENT THEORIES FOR SUPPORTING THE DEVELOPMENT OF
DYNAMIC COOPERATION..........................................................................................................17
LO 4................................................................................................................................................20
P4 & M4 APPLY AND JUSTIFY CONCEPTS AND PHILOSOPHIES OF ORGANIZATIONAL
BEHAVIOUR WITHIN TESCO AND A GIVEN BUSINESS SITUATION.............................................20
CONCLUSION.................................................................................................................................22
REFERENCES...................................................................................................................................23
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INTRODUCTION
Any organization is made up of several individuals that work together to attain organizational as
well as personal goals. During the period they work in the organization, they have to interact
with each other I order to exchange information, based on which the organizational culture and
atmosphere is determined. The study to understand the interaction between individuals in an
organization or groups is termed as organizational behaviour. Its aim is to apply a scientific
approach to the management of workers to improve the organizational performance. The
organizational behaviour is dependent on various factors, that directly or indirectly affect the
company's performance (Huczynski, and Buchanan, 2010).
The following assignment is categorized into four sections that will help in better understanding
the organizational behaviour. The first section critically analyses the influence of power, politics,
and culture of the behaviour and performance of the employees. The second section evaluates
how the effective achievements of the goals can be enabled through different theories of
motivation and motivational techniques. Further on, factors that make an effective team is
understood along with the analysis of different team development theories. Lastly, the
philosophy and concepts of organizational behaviour are applied on Tesco Plc in a given
situation.
For the given assignment, Tesco Plc is taken into consideration to get a better understanding of
organizational behaviour. It is a 99-year-old organization, which is based in England; its store is
based in around 6553 locations and employees more than 476000 people. Its current CEO is
Dave Lewis and its product range includes supermarket, hypermarket, supermarket and
convenience shop (Tesco Plc, 2018).
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LO 1
INTRODUCTION
The following report will discuss the organizational culture and motivation of Tesco Plc. The
dependency of individual and team performance on organization’s politics, power, and culture
is also analysed below. Lastly, motivational theories are applied in context with organizations to
understand the importance of motivation.
BODY
P1 M1 INFLUENCE OF ORGANIZATION’S CULTURE, POLITICS AND POWER ON
INDIVIDUAL AND TEAM BEHAVIOUR AND PERFORMANCE
Every organization is based on several beliefs and values regarding which its policies and
guidelines are defended, this can be termed as organizational culture; this also influences the
way through which employees interact within the organization (Dartey-Baah, and Amponsah-
Tawiah, 2011). Based on the organizational goals, the organizational culture can be divided into
following four types:
Power Culture
Organizations in which the authority to make major decisions is in the hand of few individuals
tend to follow power culture. In such organization, a handful of people has the authority to
make changes and be in charge, others have to blindly follow the instructions without
interfering in the process of others. Employees have no say in the decisions and cannot express
their ideas to the authority. This type of culture gives rise to partiality and corruption in the
organization (Brown and Harvey, 2011).
Task Culture
Organizations that form effective teams and assign specific tasks to each team tend to follow
task culture. Here the tasks are prioritized and assigned based on the performance of the
teams; such culture cultivates team management skills along with requires proper coordination
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to perform the tasks effectively. Additionally, this culture increases the probability of
promotions that motivate the employees to perform better (Schein, 2010).
Person Culture
Organizations, where the employees give importance to personal demands and requirements
compared to organizational growth, follows person culture. Here the members feel themselves
above the organization’s goal and only monetary benefits motivate them to work. Such culture
lacks passion, productivity, and loyalty. This results in lower productivity of the organization and
can lead to major financial losses (Alvesson, 2012).
Role Culture
Organizations where authorities and responsibilities are given based on the specialization and
skills of the employees follow role culture. Such culture motivates the employees to improve
their performance and skills, which directly results in the organizational growth. Moreover,
employees are responsible for their work; it is noted that employees make effort to learn new
skills and continuously improve their performance (Schultz, 2012).
INFLUENCE OF CULTURE IN TESCO PLC
Tesco Plc is a vastly spread organization, in order to maintain its productivity it follows role
culture, which gives their employees motivation to continuously improve their performance.
This also results in, improved communication and sharing of ideas; employees have the
freedom to share their point of views, which eventually results in a positive work environment.
However, since the company has various stores across the globe, with different types of
employs, therefore, it also follows mixed friendly culture i.e. combination of different cultures
based on the situation where the employees have the freedom to share their point of views
(Brannen, et al., 2013).
HOFSTEDE CULTURAL DIMENSION MODEL AT TESCO PLC
As the company expands and work in the different region, diverse employees are connected to
the organization; this indeed results in cross-cultural management. Hofstede S. has provided a
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theory in which he classified different dimensions based on individual and group behaviours
these are explained below:
Power Distance Index
Tesco Plc is widely spread and has decentralised structure i.e. the store managers have the
authority to take necessary decisions, this distributes the responsibility is empowering their
employees. Additionally, the employees and administrators are treated equally in the
organization that indeed results in a positive and healthy environment (Hofstede, 2011).
Collectivism
Tesco Plc believes in building skills and improving their employee personal and professional
lives. The store members are treated as a family and encourage supportive nature. This results
in gaining the loyalty of employees of a different culture.
Femininity versus Masculinity
It refers to the type of society the organization is operating in, based on the culture and society,
Tesco changes the working behaviour. For instance, Tesco stores in high MAS supports long
working hours and value for money, whereas for society with low MAS, the organization keeps
lower working hours and values quality of life (De Mooij, 2015).
Uncertainty Avoidance
This refers to the dimension of how the organization deals and copes with anxiety; Tesco is
always open to changes in the market and deals with them positively. They support continues
development of skills and knowledge; additionally, experience and knowledge are respected in
the organization (Hofstede, 2011).
INFLUENCE OF POWER AND POLITICS IN TESCO PLC
Power and politics are two major factors that influence the performance of the employees and
team in an organization. In Tesco Plc the power is distributed in order to effectively manage the
largely spread organization. Power can be referred as the ability of a person or position to
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influence others, whereas politics refers to the usage of that power to protect or support
individuals or team interests (Richards, 2018).
Since the stores of Tesco are spread largely, the store managers have the authority to make
necessary decisions, this also includes motivating the employees to perform better and
supporting and guiding them with their ideas. Due to the diverse structure and employees,
different power theories are applied by the managers for instance position and personal power.
The cooperation and productivity of the employees are dependent on the skills and position of
the power holder (Kotter, 2010).
Organizational politics, on the other hand, can be both beneficial and disruptive for the
company. By practising politics on a controlled level to evaluate the efficiency of the employees
can be found useful. Whereas playing political games to undermine the position of other can
misguide the employees from the path of success. Store Managers of Tesco have the
responsibility to take necessary precaution to avowing political players in the team (Ferris, et
al.,2012). For achieving this, they use several tactics like controlling access to information,
developing a base support etc.
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LO 2
P2 EVALUATE HOW CONTENT AND PROCESS THEORIES OF MOTIVATION AND
MOTIVATIONAL TECHNIQUES ENABLE EFFECTIVE ACHIEVEMENT OF GOALS IN
AN ORGANISATIONAL CONTEXT
In the following section, different types of motivational theories like content theory and process
theory, used in Tesco Plc is discussed; these theories help the organization to achieve its goal
and objectives.
Figure 1: Motivational Theories
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Motivational
Theories
Content Theories
Maslow's Need
Hierarchy
Herzberg's
Motivation-
Hygiene Theory
McClelland's
Needs Theory
Alderfer's ERG
Theory
Process Theories
Vroom's
Expectancy
Theory
Adam's Equity
Theory
Goal Setting
Theory
Reinforcement
Theory
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[Source: Author]
Motivation is an essential factor the drives an individual to perform any task with efficiency and
excellence. This influences people to improve their performance and achieve the targets
effectively. Tesco uses several theories and model to keep their employees motivated, this not
only increases their performance in professional life but also improves their personal life
(Miner, 2015).
The motivational theories can be categorized in the following two types: Content theories, that
deals with ‘what’ motivates individuals and Process theories that deal with ‘How' to motive.
CONTENT THEORIES
Maslow’s Need for Hierarchy
This theory states that there are several requirements of each individual that motivates them to
be loyal and connected to any group of the organization. In order to satisfy them, these
requirements must be fulfilled. The hierarchy is divided into five stages; these stages are further
divided into several needs or demands (Kaur, 2013). Management of Tesco can fulfil these
demands in order to satisfy the employees.
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Figure 2: Maslow's Need for Hierarchy
[Source: McLeod, 2018]
As the organization moves up in the hierarchy, employees get more motivated; Tesco ensures
that the company follows all the five stages of motivation. By providing, proper breaks within
work hours, and sufficient eatables to the employees the company fulfils psychological needs.
By taking safety precautions like emergency policies during any hazardous incidents like fire,
storms etc., as well as by maintaining safe work culture and providing job security, Tesco fulfils
safety needs of the employees. The psychological needs of the employees are fulfilled by
forming and guiding effective teams, by giving responsibility and cherishing small victories
(Kaur, 2013). Skills and talents are widely appreciated in the entire organization, by promoting
the talented employees and providing them monetary and monetary benefits for their
performance, Tesco fulfils the self-fulfillment needs of the employees.
Herzberg's Motivation-Hygiene Theory
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Figure 3: Herzberg's Motivation-Hygiene Theory
[Source: Author]
The theory states that the job satisfaction factors of the employees are dependent on two
major factors i.e. satisfaction and dissatisfaction. He further adds that these factors are not
mutually related i.e. changing one factor will have no influence on others. Motivators include
growth, recognition, job status etc.; this motivates them to improve their performance.
Whereas, dissatisfies include, pay scales, monetary non-monetary benefits etc.; this does not
motivate or satisfy the employees rather makes them less dissatisfied for a specific period (Tan,
and Waheed, 2011).
Tesco Plc appreciates and celebrates the performance improvement of the employees and
provides them bonuses and other benefits based on their performance, thus fulfilling both the
factors to motivate and make them less dissatisfy.
Alderfer’s ERG Theory
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Figure 4: ERG Theory
[Source: Moore, 2014]
This theory is considered as an improved and extension model of Maslow’s theory of needs; the
analysis of current needs, relatedness, and growth needs. Tesco fulfils these needs in different
forms; in order to fulfil existing needs, Tesco provides sufficient breaks, resting area, job
satisfaction, positive and safe environment for female employees and much more. For fulfilling
relatedness needs, tasks are completed in the form of the team, this also gives an opportunity
to the employees to participate and share their ideas, and leaders are formed within the
groups. Lastly by understanding the personal goals of the employees and guiding them along
with recognizing their potential, motivates them to perform effectively (Lazaroiu, 2015).
PROCESS THEORIES
Vroom’s Expectancy Theory
The theory states that a person's behaviour is influenced by the conscious choices of the factors
that minimize the pain and maximises pleasure. Performance of the employees are based on
several factors like skills, experience etc. the expectancy of the employees influence them to
perform better to get the work done effectively; based on the performance reward is provided.
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Reward system must be based on the requirement of the employees in order to motivate them
(Parijat and Bagga, 2014).
Adam’s Equity Theory
According to this theory, organizations must maintain a fair balance between the input factors
and output factors; i.e. the based on the efforts, commitment, and loyalty of the employee, the
rewards, salary and benefits must be provided to the employees. Tesco maintains this
equilibrium between the two factors by providing a bonus, extra leaves, promotions and
recognition to the employees based on their performance (Al-Zawahreh, and Al-Madi, 2012).
Reinforcement Theory
This theory suggests that the behaviour of employees can be influenced by reinforcement,
punishment, and extinction. In Tesco some behaviour of employees is reinforced through
positive support, others are prevented through punishments. Store managers at Tesco use this
theory to tackle the employees at different employees in situations.
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M2 CRITICALLY EVALUATE HOW TO INFLUENCE THE BEHAVIOUR OF OTHERS
THROUGH THE EFFECTIVE APPLICATION OF BEHAVIOURAL MOTIVATIONAL
THEORIES, CONCEPTS AND MODELS
Organizations like Tesco use several behavioural motivational theories, models, and concepts to
influence their employees to improve their performance and capabilities that eventually results
in organizational growth. Tesco is widely spread across the globe and has over 6553 stores this
depicts that they have a diverse workforce. This requires different ways of tackling, managing
and influencing people based on their culture, personal needs, requirement etc. (Miner, 2015).
Tesco follows a combination of theories at different situations, for instance, Maslow’s Need of
Hierarchy is followed in the entire organization, each store fulfils most of the requirement in
the five stages of hierarchy, additionally, and performance is greatly appreciated and rewarded
in the organization. By providing benefits based on the requirement of the employees
Alderfer’s ERG Theory is also used at stores, for instance, bonus and extra leaves are two
facilities, which staffs can choose.
Apart from content theory, Tesco also uses Process theories like, Adam’s Equity theory is
applied to influence the staffs to get better sales. Through training sessions, staffs are informed
that the more they invest in putting the efforts, the more they will get result and improved
result will give them extra benefits, for instance, bonuses, extra leaves, discounts and much
more (Al-Zawahreh, and Al-Madi, 2012).
CONCLUSION
From the given report it can be concluded that organizational culture is an essential factor that
affects the employee's performance since it is the way an employee understand the
organization and interact with others. Additionally, power is another factor, which is used by
the managers of Tesco to influence the employees. Politics, on the other hand, is used by the
managers to establish an order in the organization by controlling the access of information and
limiting the power of the individuals to avoid any negative impact.
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Motivation is a key factor that drives the individual's will to perform better under different
conditions. It has been discussed that Tesco Plc uses several motivational models, theories and
strategies to influence their diverse workforce to improve their performance and increase
organizational profits.
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LO 3
P3 FACTORS THAT MAKES EFFECTIVE TEAM, AS OPPOSED TO AN INEFFECTIVE
TEAM
A group is the collaboration of different individuals that work together to accomplish any task
or objective; whereas team is a group of specific individuals that work together to accomplish a
common goal. Groups majorly have a single leader, on the other hand, there are several leaders
in a team. In Tesco, groups are formed to accomplish any specific tasks, whereas team is
formed for achieving long-term goals and objectives.
Teams are an effective way to accomplish the goals and objectives that the organizations wish
to acquire. In an effective team, all the members amplify the strength of each other and
compensate each other’s weaknesses (Wheelan, 2014). Additionally, they keep team’s goal
above their own that assures effective performance. These are majorly formed in Tesco to
achieve long-term goals and increased organization's performance.
TYPES OF TEAMS
Departmental teams
Each department in Tesco works as a team to set and achieve departmental goals, which
combined with other departmental goals helps in achieving the organizational goals.
Problem Solving Teams
When the company faces some major issues that require special attention and time, Tesco
forms specific teams whose entire goal is to solve the existing problems. Before expanding to
new territory, this type of groups are formed in Tesco to overcome the issues, additionally,
during economic crises also, such teams are formed to come up with a solution (Levi, 2015).
Cross-functional Teams
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When any new services of Tesco are launched for instance new stores, then permanent team
members of different functions are brought together to tackle and handle certain events.
Virtual Teams
Tesco is largely spread across the globe and therefore to make major decisions regarding
services offered in different countries virtual teams are formed that communicate using a
digital network. This has a certain importance in Tesco as it diminishes the geographical hurdle
(Levi, 2015).
EFFECTIVE TEAMS VS. INEFFECTIVE TEAMS
There are several practices that form an effective team, such as, they follow all the cycle of
team formations, knows the strength and weaknesses of each other. They have a clear vision
and are sure about the goals that have to be achieved. Additionally, each member knows and
understands their roles. Team members conduct frequent meetings and evaluate team
performance on regular basis. Based on the evaluation necessary precautions are taken to
avoid the same mistakes.
An ineffective team on other hand is a group of people that do not a have a clear vision of the
goals that have to be achieved. They lack motivation and interest and are not committed
towards their work. Since they lack the understanding of strengths and weaknesses of their
team members, this leads to conflicts and lower performance (Wheelan, 2014.).
Teams are formed at several stages of the Tesco’s organizational structure since the company
has vastly spread, effective performance is required from each department and stores across
the globe in order to perform and compete in the market. Effective team results in improved
performance, therefore different types of teams are formed in the organization.
Tesco has several stores that offer a range of products and services to the customers, teams at
each store are dedicated to maximize the sale and gain significant profit. Store teams are
formed based on the performance, knowledge and skills of the employees, each having the
strength that compliments the weakness of other (West, 2012). Regular meeting and proper
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methods of communication is a common practice is Tesco; along with forming specific
strategies and assigning tasks to each member based on their skills. These practices made them
effective and productive, which eventually results in Tesco’s growth.
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M3 TEAM AND GROUP DEVELOPMENT THEORIES FOR SUPPORTING THE
DEVELOPMENT OF DYNAMIC COOPERATION
There are numerous theories regarding the formation and development of an effective team
that can support the development of Dynamic Corporation, some of which are listed below:
TUCKMAN’S TEAM DEVELOPMENT MODEL
According to the model a group goes through different stages before becoming an effective
team, he divided this stages into four sections that are listed below:
FORMING
In the initial stage, team members are polite,
understanding and positive
Initial interaction within members is observed
in this stage
STORMING
In the next level, members pushed their
boundaries and started understanding their roles
in the team
Clashes of ideas and behaviours is observed in
this stage
Conflicts and misunderstanding lead to lower
performance
NORMING
In this stage the roles are more clear and
members started understanding other’s
perspective
Constructive feedbacks helped team members to
improve their performance
A sense of togetherness is also observed at this
stage
PERFORMING Members are more focused on the goal and
constructively work to achieve it
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Minimal conflicts is observed in this stage, and
mutual understandings helped in nullifying it
(Bonebright, 2010)
BELBIN’S TEAM ROLES MODEL
It states that there are three categories that define the team roles, this three categories are
further sub-categorised into nine sections, by applying this model on a team at Tesco several
observation was made, which are explained below:
Figure 5: BELBIN’S Team Roles Model
[Source: 28. Belbin, 2012]
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Such team members have task oriented mind-set and gets
the work done in the team
ACTION
ORIENTED ROLES
Shaper: these have a tendency to challange the team in order to improve
Implementer: they are the one that executes the ideas
Finisher: have tendency to finish the work on time and thoroughly check each step of
the tasks
These team members supports and motivates other and
are extrovert in nature
PEOPLE
ORIENTED ROLES
Coordinator: supervise the roles and works of every team mebers, and support guide
them with their experience
Team Worker: these are the ones that encurages cooperation and motivate others
Resource Investigator: they have high networking skills; allocate and provides
necessary resources
They are the creative minds of the team and think outside
the box, addtionally, they are introvert in nature
THOUGHT
ORIENTED ROLES
Plant: they are the thinkers in the team and comes upp with new ideas
Evaluator: they analyze every aspect and look for errors and miscalculations in the
plan, they point out flaws in the strategies that can be improved
Specialist: they are gennerally expert in specific field and provide guidance based on
their knowledge, also they are least intrested in the topics apart from their area of
expertise
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BENEFITS AND RISKS OF TEAMS
Forming and working in a team provides several benefits to the team members and the
organization like Tesco, which are described below:
It increases the efficiency to solve any issues and results in increased performance
Different minds come together to tackle a single issue or achieve a common goal, this
reduces the time to perform the task
It fosters creativity and creates new opportunities to explore different areas
It also teaches team members how to resolve conflicts and motivate others (Mattson,
2015)
It encourages taking calculated risks and prepares the team members to tackle
unwanted situations
Organizational goals are achieved effectively as it increases the overall productivity of
the department
Although developing a team consists of following risks:
Lack of creativity in the team may result in conflicts and decreased performance
Coming to a decision may take time more than expected, which may result in failure
Conflicts can result in the disintegration of the team, which will create major issues for
the organization like Tesco since, efforts, energy, money and time are invested of the
authorities to form a team
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LO 4
P4 & M4 APPLY AND JUSTIFY CONCEPTS AND PHILOSOPHIES OF
ORGANIZATIONAL BEHAVIOUR WITHIN TESCO AND A GIVEN BUSINESS
SITUATION
CONTINGENCY THEORY
This theory suggests that there is no specific style that a leader possesses, but rather, the
leadership is dependent on two factors, that are leadership style and situational
favourableness. The leadership style is determined by rating system in which if the scores are
high than the leader is relationship oriented whereas if the score is low then the leader is task
oriented (Li, 2017). Situational factor, on the other hand, is dependent on Task structure,
leader's position in an organization and Leader-employee relations.
As per the theory, the situation must match the leader’s style and behaviours, since a leader is
most effective only when they are put into the right situation. These results in several
drawbacks for instance, if the organization like Tesco fails to put the right leader in the right
situation this may affect the performance and influential power of the leader, which will
eventually result in the degraded performance and conflicts within the team.
PATH GOAL THEORY
This theory covers the drawback of the contingency theories as it assists the leaders in forming
the path for their employees. By analysing different factors and choosing appropriate roles and
behaviours, leaders can increase their influential power based on the requirement.
The path-goal types of the leader's behaviour can be classified in following forms:
Directive
Leaders assist the employees at every step of the process, from explaining them the expected
result to scheduling and assisting how to perform the task. This is used in Tesco while
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influencing the team with minimum experience and knowledge. Its drawback is if the team is
experienced and knowledgeable than this behaviour may result in conflicts and irritation
(Polston-Murdoch, 2013).
Supportive
Here the leaders maintain a friendly relationship with the employees and support them with
their decisions. The faith of leader motivates the team to take calculated risks and perform
better. For the moderately experienced team, it is an effective approach, which is followed in
Tesco.
Participative
Here the leaders give chance to the employees to share theory point of views before making
any decisions. This is used in Tesco at a higher level of administration where the workers are
experienced and understand the consequences of the decisions. Its drawback is if the leader
takes advise from a non-experienced team than it will result in misguidance and ineffective
decisions (Polston-Murdoch, 2013).
Achievement
Here the leaders provide challenging tasks for the team and expect them to perform effectively,
the leader shows confidence in the skills and knowledge of the employees. It creates a
competitive environment and motivates employees to perform better. Leaders at Tesco Plc
uses this method for influencing the workers to increase the sales of the products, by setting
weekly targets and monitoring their performance, based on which they are awarded.
The leader must analyse different factors and must choose an appropriate style in order to
influence the employees. Leaders at Tesco have to deal with various types of people having a
different mindset and based on the situations and the requirements, they adjust their styles to
get effective outcomes. The drawback that this theory hold is that, the leader must be capable
and experienced enough to analyse the situations, if not it will lead to choosing a wrong
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leadership style that will affect the performance of the employees. Moreover, the leader must
be adjustable enough to adapt to different leadership styles (Antonakis, and House, 2013).
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CONCLUSION
From the given report, it can be concluded that the organisational culture practised in Tesco Plc
has a significant influence on the employee’s behaviour, additionally; power and political
factors also have considerable influence to the performance of the team and individual. Tesco
uses several theories in order to keep their employees motivated, content and process theories
of motivation are critically evaluated in the given assignment. Moreover, to achieve a common
goal, an organization like Tesco forms effective teams that increase the performance an
productivity of the organizations. Several teams and group development theories used by Tesco
are discussed and analysed in the given assignment. Lastly, different concepts and philosophies
of organizational behaviour are applied on Tesco Plc to evaluate and get a better understanding
of the organizational behaviours.
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