Tesco Leadership Style and Effectiveness

The assignment discusses the importance of leadership in an organization, using Tesco as a case study. It explains that effective leadership involves a decentralized and flexible management style, which enables long-term strategies to be developed. The leaders at Tesco follow a democratic leadership style, promoting employee motivation and decision-making for the company's benefit.

Context of business

Table of Contents
INTRODUCTION...........................................................................................................................1
1. A brief history and summary...................................................................................................1
2. Discuss the vision, leadership style and management practice and various strategies making
use of various theories ................................................................................................................2
3. Analyse how strategies are adopted in Tesco: .......................................................................4
4. Recommendation.....................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
Management and leadership are essential elements required in business environment.
These help in smoothly managing the effectiveness of business operations. Leadership is an
essential factor of effective management. Leadership is an important function that is helpful in
maximising efficiency and attaining the goals and objectives of the company in specified time
frame. If an organisation has effective leadership and management then it is more successful. If a
leader uses his leadership abilities effectively and motivates his employees and subordinates then
it is beneficial for the organisation (Dreyer, and Et. Al., 2017). An effective leadership and
management is important for the company as this helps in making best decisions for the
company. Also if leaders and managers of the company motivates their employees or
subordinates then this will help in increasing the level of employee satisfaction. The following
report is based on the company naming Tesco plc which is a British multinational company that
is dealing in groceries and general merchandising. The headquarters of Tesco are located in
Hertford, England. According to the gross revenue, Tesco is among the top ten retailers of the
world. The founder of this company is Jack Cohen and this company was founded in the year
1919. The following report discusses about brief history of Tesco, summary of this company and
rationale of the study. Further, this report consists of discussion on different leadership styles
adopted by managers and leaders of Tesco. At last this report includes recommendation and
conclusion based on the discussion of leadership style of Tesco.
1. A brief history and summary
History
A well known retail sector company is Tesco and the headquarters of this company are
situated in Hertfordshire, England. The first establishments of this company was after the
shipment of tea from T.E. Stockwell (Kew, and Stredwick, 2016). In 1929, first store of Tesco
was started. This company started it's business by offering food and drinks but after some time
this company involved in selling of products like clothes, apparels, mobile networks, finance
services, DVD games, etc.
Summary
Tesco works under different banners which consists of Extra, Superstone, Metro and
Express. This organisation is involved in providing quality products and services to customers so
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that they can increase their market share (Dreyer, and Et. Al., 2017). This is known as the largest
retailing company of UK. There are around 553004 employees working in this company. This
organisation ensures that employees working in their company are motivated for achieving goals
and objectives of the company (Bell, Bryman, and Harley, 2018). There are different managers
and employees who work in the organisation which includes warehouse staff, logistics staff,
customer assistant and department managers.
Rationale of the study
Tesco is a company which is operating at global level. Such companies have to follow
leadership styles for managing and controlling operations and functions of the company in an
effective manner (Maylor, Blackmon, and Huemann, 2016). Tesco is chosen for conducting
research on leadership style as it will help to know what is the importance of effective leadership
in the company. After doing this research, there will be knowledge of how leadership affects
functioning of an organisation.
2. Discuss the vision, leadership style and management practice and various strategies making
use of various theories
Vision of Tesco
The vision of Tesco is based on five factors that reflects what kind of company Tesco is.
The vision statement of Tesco states that it wants to become a company that is needed and
wanted by everyone. It want to run business which is modern, innovative and full of ideas.
Leadership style and management practices followed in Tesco
Managers of an organisation are involved in organising human and physical resources for
achieving the goals and objectives of the company. Leaders influences, motivates and inspire
employees to work hard and attaining organisational goals. The style of leadership adopted by
leader depends upon business task. The leaders of team have to set objectives and goals and
empower the subordinates for achieving the goals and objectives of the organisation. It is
important for the company to have an effective management and leadership style so that all
functions and operations are conducted smoothly. The various leadership styles adopted by
managers and leaders of Tesco are described below -
Autocratic leadership or management style- This is a management and leadership style
in which an individual manages decision of organisation and leader do not take participation of
employees in decision making of the company. An autocratic leader makes decision on the basis
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of his own beliefs and choices. Autocratic leaders do not involve subordinates and employees in
the This leadership style is harmful for Tesco as this leadership style is damaging and is not
beneficial in long run.
Democratic leadership or management style- These are leaders who are also known as
participative leaders. In this kind of leadership and management style, all employees and
subordinates are associated in the decision making process. These leaders spread responsibilities
among employees. Managers and leaders provide proper guidance and support throughout the
decision making process. Such leaders are effective for Tesco as this helps in increasing the level
of employee engagement in within the company.
Laissez – faire leadership and management style – According to this leadership style
all the decisions of n the organisation are taken by the em,employees o0f the organisation and
management guide all these decisions (Wang, and Et. Al., 2016). In this style organisation also
focus on the development of employees.
Consultative leadership or management style- The consultative leadership style is a task
oriented leadership style (Bates, T. and Robb, A., 2016). According to this approach, leaders
make final decision. Consultative leaders asks their employees and subordinates for thoughts and
opinions for organisational problem. On the other hand, leader has the authority to make final
decision for organisation. These leaders listen to the opinion of employees but final decision is
made by leader. This kind of leadership is essential for Tesco as leaders have more experience
and they will take more effective decisions. This leadership style involves employees as well as
leader in the organisational decision making. In this way, employees are motivated and
appreciated.
Persuasive leadership or management style- This is a managerial style is a passive type
of leadership style. The leaders who follow this kind of leadership style have the ability to make
employees follow them. Leaders must have good personality so that they can influence others to
work according to them. For Tesco, the persuasive leadership style is effective as this will help in
influencing employees to work effectively.
Tesco organisation also focus on this style of leadership and increase the performance of
there employees. They adopt this style and motivate employers through which they provide
effective product and services for there customers (Wang, and Et. Al., 2016). Various different
theories are taken by the organisation for effective decision making and increase the profit of
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organisation in a effective manner. some leadership theories are important and all those theories
are as given.
Contingency theory: According to this theory of leadership there is no theory which is
perfect for leadership style. Every theory is not suitable for many situations. according to this
theory various situations are different so change the style according to the condition is provide a
effective output as a target achievement. This contingency theory was introduce in 1964 by Mr.
fielder. In this theory task structure and positional power is also included in it (Popovič, and Et.
Al. , 2014). According to task structure lowers provide task for employees. Beside it power
positional is leader give instruction to there workers It is a important theory of leadership which
play an important role in leadership. Tesco organisation also focus on effective leadership
through which they can handle any situation in there organisation. This through adopts by Tesco
for effective strategy related to the decision making. Mangers of Tesco can handle all the
situation with the help of this and increasing the profit of there organisation.
Douglas McGregor's Theories X and Y : This theory of leadership is provided by
Douglas McGregor. It is introduce in 1960 which describe the type of leadership. According to
this managers and leaders of the organisation focusing on motivation to there employees and
provide them direction related to the project. mangers and leadership deveined into two parts and
those are like X and Y theory of motivation and description of these theory are as given.
X theory of motivation: According to this theory leaders motivate there employees
thought providing them task (Al-Ansaari, Y., Bederr, H. and Chen, C., 2015). Employees who
are working in these kind of organisation they are not satisfied by these things. They are not
involved in any decisions. Leaders only focus on the performance of the employees for target
achievement in a particular time period.
Y theory of motivation: According to this theory they leaders provide a healthy
environment for there employees and participated them in every decision related to the
management. Provide them motivation in a effective manner which increase there moral as well
as trust for the organisation. they satisfies them through providing them freedom to participate in
every activities of organisation.
3. Analyse how strategies are adopted in Tesco:
Tesco organisation use many strategy to solve problems of there employees. They
conduct audit weekly and monthly to discuss problems of there workforce. Tesco organ satiation
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also provide better facility to there employees and satisfied them with it. this organisation follow
democratic style which is beneficial for them (Bargiela-Chiappini, and Nickerson, 2014.). In this
style all kind of employees can included wh9o give there vies and innovative ides in any project.
Tesco is focusing on the growth of organisation as well as employees skills development.
Awards, reward also provide them as a inspiration. They also provide them planned holidays
which create a families environment in the organisation. Tesco follow democratic leadership
style because whole workforce is also participation in the growth of the organisation. High
performance is necessary for the organisation to providing effective goods and services for the
organisation. They focus on the performance because Tesco have a big complementation in the
marke5t.
4. Recommendation
According to this report many suggestion are made for Tesco organisation because they
should focus on leadership style in there organisation (Kew, J. and Stredwick, J., 2016).
Leadership play an import role in an organisation because through through they can increase the
management process of the organisation. They also focus on the process of customer
sanctification. They should follow autocratic leadership style for the overall growth of the
organisation because in these kind of organisation democratic is not workful. By using this
leadership style they increase the performance of workforce as well as achieve there targeting a
particular time.
CONCLUSION
From the above discussion it is concluded that leadership is an important factor that
should be present in an organisation so that effectively all functions can be done smoothly. In
Tesco, the leaders follow effective type of management and leadership style. This style is
decentralised and flexible. The main aim of Tesco in working is to develop long term strategies.
These will help in attaining goals and objectives within less time. The leadership style followed
by leaders and managers of Tesco is democratic style of leadership. This helps in motivating
employees towards taking decision for benefit of company.
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REFERENCES
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Bates, T. and Robb, A., 2016. Impacts of owner race and geographic context on access to small-
business financing. Economic Development Quarterly. 30(2). pp.159-170.
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Kew, J. and Stredwick, J., 2016. Human Resource Management in a business context. Kogan
Page Publishers.
Al-Ansaari, Y., Bederr, H. and Chen, C., 2015. Strategic orientation and business performance:
An empirical study in the UAE context. Management Decision. 53(10). pp.2287-2302.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
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Bargiela-Chiappini, F. and Nickerson, C.R., 2014. Writing business: Genres, media and
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