Organizational Behaviour and Leadership

Running head: ORGANIZATIONAL BEHAVIOUR AND LEADERSHIP
TESCO
Organizational Behaviour and Leadership
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ORGANIZATIONAL BEHAVIOUR AND LEADERSHIP 1
Introduction
Tesco is known as the largest global chain of retail stores all over the world and is also
considered as the largest chain store in United Kingdom. Tesco mainly operates its business from
companies headquarter which is situated in London. On the global retail business platform, this
company was able to successfully acquire fourth position in 2008. After this, Tesco was
successfully able to achieve fifth rank in Metro AG circulation and it was truly a big moment for
retail companies to achieve such a position in this business since 2003 (Gurdain, 2010). This
corporate has expanded its business operation in other sectors such as food and drink on the
global platform. This organization has understood the need for diversity in the business and
therefore has introduced a new segment in their business operations such as clothing's, electronic
items, DVD selling and renting and financial services. This corporate has not limited their
business to only these segments, they have also entered into digital market in which they are
offering services like internet services, software service which are connected with medical as
well as dental care along with telecommunication setup (EEPH, 2019). This business expansion
strategy has helped their organization to become one of the largest retail stores on the internal
business market. Tesco employees are very dedicated to meet the current and future expectations
of potential customers with the help of their high-quality services.
Leadership issues in Tesco
One of the biggest leadership issues which happened in Tesco was related to diversity
issue. In fact, the matter was so high that it was taken to the court by the employee who blamed
that they were facing discrimination on the base of age and gender and their pay rate was cut as
per the supermarket night and weekend shifts. Leadership of Tesco was not able to offer a
discrimination-free working environment for a group of people which has joined Tesco and it has
been seen that around 38,000 employees were being affected. Tesco company leadership has
agreed to bring change in their policy regarding pay rate rise of £7.62 on an hourly base which is
considered as one of the highest payers in this retail industry (The Guardian, 2018). But still,
employees who used to receive double salary on Sundays or bank holidays are seeing it unfair.
Employees who have joined the company before 1999 and are in their 40 years age are seeing it
as a reduction to their benefits. According to Paula lee, the leadership of Tesco has truly
committed discrimination related to long term employee and in fact has created a new platform
of wage cut in this retail business sector. Employees have also blamed that company is using this
amount on their other business areas in order to gain profit (Everett, 2012). These employees are
continuously blaming that company leadership is taking advantage of their loyalty and when
leadership believes that they are going to leave the job they try to make things worst in the form
of a wage cut. Even though company's leadership has agreed to resolve this issue by offering a
rise in the wage rate but at the same time, they are playing tricks by not disclosing the exact
amount of employee which has been affected by their wage cut policy.

ORGANIZATIONAL BEHAVIOUR AND LEADERSHIP 2
Another biggest leadership issue which happened in the business operation of Tesco
Company was mistreatment of supplier and profit miss-declaration in 2015. According to
Christine Tacon, it has been found that Tesco leadership has truly overlooked the laws which are
associated with the governance of grocery market. It was blamed that Tesco leadership has
played tricks in paying the amount to their suppliers. In fact, they have made supplier wait for
two years to clear the amount of million pounds in order to use this amount in their other
business activities which will help them in generating more revenue. It simply indicates that
Tesco leadership has clearly misconducted the financial flow in order to gain personal growth
(The Guardian, 2016). In addition to this, Christine Tacon also said that internal mails of the
company were clearly indicating that payment must be cleared before a particular date so that
they can make use of this money in target promotion. The leadership of Tesco has created a very
complex situation between supplier and financial teams because they were not able to manage all
these superseding pressure related to business. This kind of attitude was soon seen in almost
every section of the Tesco business. In addition to this, it has been seen that Tesco leadership
was not allowing repaying the debt which they have taken from the market up to two years in
order to maintain the cash flow in their business. It was also known as accounting scandals
which have overstated profit which has put this company under the investigation of fraud office
(Ruddick & Roland, 2015). Tesco leadership has not maintained this act up to one or two
suppliers; in fact, this strategy was widely spread to every section of distribution system. One of
the suppliers was badly affected because company did not pay their million-pound bill till two
years which has created a complex situation for their business strategy. In addition to this, they
have not paid the entire amount in one term and have intentionally used slow repay strategy to
maintain the balance of cash for their personal gain. It is not that all the delays were intentional;
there were delays due to weak management and ineffective business communication within the
Tesco organization (Butler, 2016). More ever there were dedicated frauds in the operating
procedure of the invoice in order to overshadow the financial flow within the business. There this
act has created a non-trust environment within the suppliers of Tesco which has created a
negative image of the Tesco in the retail market on the global level.
Literature review
According to Jonsen, Maznevskian & Schneider, 2010, diversity in the workplace have
been considered as one of the complex and provocative phenomena. Both narrow and broider are
connected with this workplace diversity. Narrow aspect is always linked with restrictions which
are connected with particular cultural patterns just like race as well as gender. Few believe that
workplace diversity which is based on civilization, race, and gender will not be able to link with
administrative processes, capabilities as well as reasoning orientations. One of the major issues
in this practice is discrimination and prohibiting of traditional group in the organization. It is the
diversity concept in the organization which offers protection to all individuals from getting
discriminated on the base of race, culture, and background. The concept behind this is every
person is different and therefore it seems that diversity only remains up to their mind only.