Developing Leadership and Management Skills in Tesco Plc

This report discusses the importance of leadership and management skills in Tesco Plc, the largest grocery and general merchandise supermarket chain in the UK. It compares different leadership styles and analyzes key performance metrics such as sales per square foot, conversion rate, inventory turnover rate, and sales per employee. The report also highlights the significance of organizational leadership and management performance in enhancing business productivity and sales.

Contents
Introduction to report and outline of chosen organization...................................................................2
Analysis and comparison of leadership and management....................................................................2
Key performance metrics of organizational sector/market/industry....................................................4
Organizational leadership and management performance...................................................................5
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................7

Introduction to report and outline of chosen organization
The organisation which is selected for this report is Tesco Plc. Currently they are British
public limited company dealing in the retail industry and was founded in 1919 by Jack Cohen. It is
UK's biggest retailers by sales and also the nation's biggest private employer, with more than
330,000 staff working in 3,146 stores .Tesco is also a large size company, as it's one of largest food
retailers in the world. Its scope is broad as its already a largest retailer in UK and planning to
expand in US. Mission is very simple is to be the champion for its customers and create a value to
earn their trust and loyalty. Tesco is one of the largest supermarket chain present in headquartered
in United Kingdom. They are the leading brand which offers large variety of grocery and general
merchandise product to their customers. The company was established in 1919. They conduct their
business operation across the globe in various countries such as Europe, japan etc. They have
expanded their business operation worldwide in the year 1990's. The management of this company
also has various divisions such as bank, Tesco Bank, Tesco Mobile, Tesco Ireland and many other
division due this they have build strong market position in the mind of their customers. In starting
they offers only grocery products but after seeing the growth in their business they start dealing in
various other retailing sector such as books, clothing and many more day-to-day products to their
customers under the one roof. Objective of Tesco is to provide good quality products and services at
a lower cost. To become a leading retail supermarket. Its vision is to create a value for its customers
to earn their lifetime loyalty.
Analysis and comparison of leadership and management
Although leadership and management are sometimes confused, it is important to understand that
leadership is an important component of effective management. As an important aspect of
management, excellent leadership focuses on creating an environment in which each individual may
develop independently and achieve their full potential. Leadership is described as the ability to
influence and motivate others to work hard and achieve their objectives. When a boss has leadership
qualities but does not act like one. A management must consider leadership characteristics. Leaders
devise and implement tactics to maintain a competitive advantage. With today's workforce, a
spectacular organisation must have excellent leadership and management capabilities. The
following are the distinctions between leadership and management:
 Leaders are people who seek out vision. They mostly aid in the expansion of an
organisation. They are continuously evaluating where their company is, where it wants to
go, and how they can get there as a team..
 Managers try to achieve organisational goals by integrating operations such as financial fund
analysis, organisational development, and personnel management. Managers' vision is

linked to the implementation of a plan of action, as well as the creation and management of
tasks necessary to achieve the goals specified by leaders. However, in corporate situations,
each of these responsibilities are as important and necessitate collaborative efforts.
 Leaders are more concerned with positioning and inspiring employees than with assigning
work. They do so through supporting individuals in visualising their function in a larger
framework, as well as the opportunity for additional growth that their activities may provide.
 Managers get objectives through joint actions and planning processes. To get the objectives,
they divide long-term goals into small clumps and organise economic elements.
 A leader's question is what and why, but a manager's question is how and when. To be fair to
their duty as a leader, one can speak up and question authority to review actions that are not
in the best interests of the organisation and its members. When a company hits a snag, a
leader should go forward and ask, "How much did we gain from this?" and "Why did this
happen?"
 The function of the manager is not to measure and analyse non-accomplishment. Their
position statement emphasises the necessity of asking When and How to ensure that
plans are carried out correctly.
 Level of leadership is determined by someone else's behaviours. If an individual actions
encourage others to accomplish their best, then they are a leader .
 A manager is a job title that encompasses a variety of responsibilities.
 A leader is produced or comes forward in an organisation, and a manager is a function that
has relevance in specific purposes within the framework of an organisation. Great leadership
motivates and influences others to attain goals.
 A manager is a person who is assigned or appointed to a position within an organisation. A
manager is selected based on a set of technological abilities, knowledge, and expertise..
Organisation leadership is important for an organisation as:
 Encourages the team- Members of the team treat the leader with respect. They will be
motivated to model a positive attitude for their workgroups and themselves, as well as
recognise how they can contribute to the company's long-term success.
 Encourages interaction, ethics, diversity and appreciation-. The organization's aims are
embodied by the leader, who also exemplifies the information exchange, ethics,
involvement, and respect that are expected of all members. The emotionally mature
organisational leader communicates to all sorts of employees that their efforts and efforts are
valued, as each function is vital for the overall success of the company.
 Allows for the development of a problem-solving and decision-making attitude- In a
secure and respectful setting where people are not scared to talk, wonderful ideas can

emerge. Accelerating growth is feasible when a leader believes in putting people in charge
of developing solutions and making decisions.
 Enables strategic members to stay focused on their objectives- The organisational leader
may focus on the major and long-term goals when people are encouraged to take on their
tasks and innovate. Moving the goal forward as a team while keeping an eye on the
approaching obstacles.
Key performance metrics of organizational sector/market/industry
Key performance indicators(KPI) which is adopt by company in order to measure the
business operations which can help them to maintain their business performance for long period of
time. This framework will help the business institution to analyse the other companies financial,
operational achievement present in their specific sector. This metrics assist an organisation to
measure the growth in regarding their set target and aims. In context to Tesco, the management of
this company follow various key performance metrics which are mentioned below:-
Sales per square foot:- The management of retail companies should always select the
appropriate locations for their outlets where they can easily influence the customers to make a
purchase from their store. In context to Tesco, they can calculate their sales per square foot by
dividing the net sale with the sales done by the showrooms, gallery space etc. After this, they can
find that they are dealing in appropriate location or they have to make a change in their location.
Conversion rate:- The conversion rate is the proportion of the total number of customer
that have visited the store or official website with the complete number of buyers who made a
purchase from their organisation. In context to Tesco, this metric will assist them how their
workers are performing in their organisation as well as how their product and services are affecting
the customers. Tesco developed online store in order get the information of their customer by which
they can build a effective product or services which can completely satisfy their their needs and
demands.
Inventory Turnover Rate- This rate states that how much merchandise product and
services are selling by Tesco on the day-to-day, weekly, monthly and yearly basis. In context to
Tesco, they can measure this rate by dividing the costs of good by the cost of average amount which
they have in their financial department. The management make a fluctuation in their rates by seeing
the sales made by them in their financial year.
Sales per employee- In context to Tesco, they can calculate this rate by dividing the net
profit earns by them with the number of employees working in their organisation. This metrics can
help them to make more productive staffing decision and can reduce their labour cost. This also

assist an administration to set the goals of their employees and which kind of employees they want
to hire seasonally which can enhance their business productivity. It enhance the working capacity of
their employees by giving the feedback to their employees which can encourage them to do more
work in their specific work area.
Organizational leadership and management performance.
Leadership is defined as an individual's capacity to guide the behavior of others and lead
them by offering appropriate direction. Leaders have a significant role in influencing how well their
team members perform by motivating them to work toward organizational goals. Different
techniques to directing their organizations and influencing their behavior are used by different
leaders. The following are some examples of leadership styles that have been discussed in relation
to Tesco.:-
Transformational leadership:- In this leadership style, the organization's existing leader inspires
its people with a visual concept that can be realised by motivating and encouraging current
employees. Tesco's main goal is to improve the company's standard operating procedure. The leader
is the one who prioritises the business and the established vision. Tesco's staff has a high level of
motivation. This is a management style aimed to allow Tesco employees the ability to be inventive,
anticipate future scenarios, and find novel ways to address problems that arise in their workplace.
This interpretation of this leadership style results in change in individuals and social systems, with
the purpose of bringing about beneficial and good change. This is the best suited style for Tesco.
Autocratic leadership style:- This technique is utilised in Tesco when there is less time for group
choices and the leader is well-known with the group members. This technique is employed in an
emergency when the organisation needs to make quick decisions and strategies. They are also
referred to as autocratic leadership styles since they place a great emphasis on commanding both
leaders and followers. This person makes decisions independently for each and every current
member of an organisation.. This approach is intended to communicate or express clear rules to
current employees or members, and it highlights the unit of command's ability to execute the
assigned task efficiently. In the case of Tesco, this leadership style will be less appropriate for
running their commercial operations.
MANAGEMENT PERFORMANCE
It is a strategic and systematic framework which helps an organisation’s manager or leader
to monitor and evaluate their employees work. It is a running process of communication which
occurs between a leader and worker throughout the year. The main purpose of this management
is to create a positive workplace which helps their workers to the best working performance
according to the ability or skill and produce highest quality of work in their specific market

field. In context to Tesco, it is a multinational firm due to this they have to build this department
which can help them to get the best work from their large workforce which can help them to
produce more goods and services. Thus, it will increase their sales and revenue. Management
performance is a strategic instrument for corporate management that assists managers in
calculating and analysing employee performance and effort. Performance management achieves
the goal of creating an atmosphere in which people can give their all, attain their full potential,
and generate high-quality work. Performance management establishes a connection mechanism
between a higher authority and employees that runs from beginning to end each year to help an
organisation achieve its strategic goals. In human resources, performance management plays a
significant role. It aids in identifying, assessing, and developing the performance of individuals
in an organisation in this line of employment. The following are some of the goals of the
performance management system:
 Identifying skills and information is essential to execute job effectively
 This is a very important component in inspiring employees and boosting motivation.
 -This management helps in providing a connection network between unit and the leader it
encourages organisations setting process to be more transparent
 - It has the advantage of detecting problems that contribute to poor performance and
delivering solutions in the form of development suggestions.
 Advantages:
 Documentation: This record can be preserved in the employee file to track a staff member's
performance during the term of their employment. A management can prepare a
performance report for each employee for the current fiscal year using performance
management.
 Structure: It establishes a systematic system for supervisory and staff communication. It
requires that executives and employees set out time to debate effectiveness and come up
with a solution to improve outcomes.
 Feedback: The manager must notify the team about performance evaluations as part of the
performance management process. Employees are typically interested in receiving feedback
on their company's performance..
 Clarify Expectations: Using a continuous improvement method, leaders may clarify the
situation.
 Disadvantages:
 Negative Experience: If performance evaluations aren't done fairly and information isn't
transmitted effectively, the system can have disastrous consequences for employees.
 Time-consuming: Managers must constantly analyse and assure the smooth operation of

hundreds of individuals in the workplace. The operation will become inefficient and time-
consuming.
CONCLUSION
From the above report it has been concluded that, leadership is one of the most important
element which should be present in the manager of organisation in order to run it smoothly and
fluently. It very crucial for an organisation to adopt appropriate leadership style which will assist
them to manage their business operation and employees of their employees in a proper way.
Furthermore, the chosen organisation in this report is Tesco which is one of the largest grocery and
general merchandise supermarket chain present in located in United Kingdom. They provide
various facilities such as petrol, grocery item general household product under one roof that due
which they have build a strong market position in their respective market sector.. Furthermore, in
this report various key performance metrics are been included which helps organisations to manage
their performance and employees of within their company which will enhance their business
productivity and sales. Sales per square foot, Conversion rate, Inventory Turnover Rate are some
kind of tools and techniques which can be adopted by the administration of Tesco to measure or
calculate various elements such as customers needs and demands, sales and revenue and many more
other factor which are directly related with their business operations. .Later on, the analysis and
comparison of leadership and management on the basis of various factors are been included in this
report. Both are the 2 different field which should be present in an organisation in which can help
them to produce such kind of product and services that can fulfil all the needs and demands of their
customer due to this they can attract more customer base towards their company. The proper and
effective leadership and management can build more loyalty of their employees towards their
organisation. At last, various leadership style such as transformational leadership, autocratic
leadership which can help them to get best working performance from their employees.
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