Tesco's Organizational Structure and Leadership

This assignment involves analyzing Tesco's organizational chart, leadership styles, and motivation theories to understand how they can motivate employees positively and increase profitability. The report highlights the importance of effective management in reaching customers and managing their queries accordingly.

HOW BUSINESS
OPERATES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO 1 The Business environment......................................................................................................1
1.1 Describing different types of organisations found in public and private sectors..................1
1.2 Explaining different structures within business by suggesting reasons for variation...........2
1.3 identifying named business...................................................................................................4
TASK 2............................................................................................................................................6
LO 2 Business functions..................................................................................................................6
2.1 Importance of accounting for business success....................................................................6
5.1 Different functions carried out by HR department in a business..........................................7
5.2 Key features of employment legislation...............................................................................8
TASK 3............................................................................................................................................9
LO 3 Accounting Workshops..........................................................................................................9
3.1 Presenting and interpreting key accounting information using profit and loss accounts......9
TASK 4............................................................................................................................................9
LO 4 A formal report.......................................................................................................................9
4.1 Stages of Team Development...............................................................................................9
4.2 Analysis to determine own and others roles within a team.................................................11
4.3 Assessing three motivation theories....................................................................................11
4.4 Different types of leadership style......................................................................................12
TASK 6..........................................................................................................................................13
LO 6 Customer service..................................................................................................................13
6.1 Impact of customer service on business success.................................................................13
6.2 Benefits of customer profiling to business..........................................................................13
CONCLUSION..............................................................................................................................14

REFERENCES..............................................................................................................................15

INTRODUCTION
Business is that term which is defined as the activity in order to make one's living or
making money with help of producing and selling products and services. In other words, it is an
organisation where people works together in order to make and sell products or services
(Amanchukwu, Stanley and Ololube, 2015). It also helps in earning profits at cost of products
that has been offered to customers. In the following report, types of organisations that is found in
public and private sector has been discussed along with examples and also with their structures.
Further, Pestle analysis has been used in order to identify impact of local, national and
global economies on organisation. Importance of accounting and also functions HR department
has also been analysed. In addition to this, stages of team development and also features of
employment legislation has been outlined. This report also highlights on motivation theories and
also different types of leadership style. Impact of customer service and benefits of customer
profiling has also been identified in the present study.
TASK 1
LO 1 The Business environment
Covered in PPT
TASK 2
LO 2 Business functions
2.1 Importance of accounting for business success.
Accounting is defined as a service activity. It plays very essential role in order to provide
quantitative information of financial nature to variety of stakeholders that are involved and are
intended to be used in making decision related to economic. In other words, it is termed as
practice of systematic maintenance of company's financial records that summarises financial
statements of a particular enterprise (Delmon, 2015). Therefore, it plays very critical role in
order to keep records clean and up to date. There are many more importance that has been
discussed as under-
 Helps in evaluating the performance of business- The accounting records reflects in terms
of operations and also statements of financial position. In addition to this, balance sheet
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and profit and loss account ratios are further calculated that later leads in determining
performance of a particular enterprise. Further, it also helps in comparing data of
previous year and present year that later leads in analysing budget figures for variance
analysis.
 Helps in managing and monitoring cash flows- the working capital and also cash
requirement of a particular enterprise can be taken duly by proper system of accounting.
 Helps to be statutory compliant- Accounting of business leads in recording liabilities that
has to be paid within particular deadline. These liabilities may include provident fund,
VAT, sales tax, income tax. In order to pay liabilities within a time will help enterprise to
become statutory compliant.
 Helps in creating budget and also future projections- Accounting is also extremely
important in preparing budget and later forecasting it. Thus, Business trends are later
projected that are basically based on past data that has been produced by accounting
system.
5.1 Different functions carried out by HR department in a business.
Human resource department plays very essential role in organisation as it handles many
functions that are necessary for business success (Ding, Wang, Wu and Olson, 2017). Thus, it is
instrumental in providing labour law compliance, record keeping and also assists in handing
various issues related to performance. All these functions are critical because without them, cited
company cannot meet essential needs related to management and staff. Thus, various functions
of HR department of Tesco has been discussed as per below context-
 Recruitment- This is one of the primary responsibility of every member of human
resource department. Thus, the success of recruiters and also employment specialists are
measured generally by various number of positions that they fill and the time they take in
order to fill those particular vacant positions. For recruitment, they also use method of
advertisements in terms of job postings, source candidates, screen applicants, conduct
preliminary interviews and also coordinate hiring efforts with managers that are termed
as responsible in making selection of a candidate for particular vacancy.
 Training and Development- HR department main function is to provide their employees
with required training and development session. Thus, manager of human resource
department plan and administer programs in order to ensure that employees of particular
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organisation has skills and knowledge in order to compete in effective way and also meet
targeted objectives of a particular organisation.
 Record keeping- The HR officer is also in charge in order to keep records of various
information related to success of Tesco. In addition to this, they are also responsible in
maintaining employees records that includes individual tax forms.
 Employee Relations- this is also another key function of HR department. If there is any
kind of misunderstandings in Tesco between employees and leader than, member of
human resource department is to handle that situation easily without any kind of
conflicts. Hence, employees are encouraged in bringing out relational problems to
attention of staff that are involved in human resource department for resolution.
5.2 Key features of employment legislation.
Employment legislation is the term of law that leads in governing employment within a
particular workplace with everyone who are involved in that cited enterprise. Thus, these laws
basically exists in order to regulate relationship between business and also employees or workers
they include (Iqbal, Anwar and Haider, 2015). Therefore, with compliance of these legislations,
assist in ensuring to everyone that they are noticed in fair manner without any kind of biasses.
Various key features of employment legislation has been discussed as per below context-
 Age discrimination Act 1967- It is an Act that prohibits or forbids employment
discrimination against anyone who are of at-least 40 years of age in a particular company.
Thus, it is termed as illegal at any stage in terms of employment that includes hiring,
promotions or lay-offs. This law leads in prohibiting harassment that takes place in Tesco
either by co workers or by supervisors just due to age. If Tesco adopts this law in their
working environment than it will assists high age people to work with extreme
confidence and also with enthusiasm.
 Disability Act 1995- The government of a particular company has been put into place an
Act that is basically for disabled person in order to make sure that the people those who
are disabled form the most important part of nation building. In addition to this, it is one
of the most important step that leads in ensuring equal opportunities for people with
disabilities.
 Equal pay Act 1963- It is the labour law amending the Fair labour standards Act, that
aims in terms of abolishing wage disparity which is based on sex and it was signed into
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law. In this the law mandates equal pay for equal quality and quantity work by forbidding
employers from paying men and women various benefits and wages in terms of doing
jobs that require same kind of skills, talents and responsibilities.
TASK 3
LO 3 Accounting Workshops
3.1 Presenting and interpreting key accounting information using profit and loss accounts.
Profit and loss account is that kind of account through which annual net profit or loss of a
particular business is ascertained (King and Forder, 2016). Thus, the main aim and purpose of
this account is to show profit or loss that has been made by a particular business over a financial
year. Thus, profit and loss account statement of Tesco has been discussed as per below-
TESCO LTD. Amount 2017 Amount 2018
Sales and revenues
Sales of machinery
Energy and transportation
52142 52694
Revenues of financial products 3042 2962
Total sales and revenue 55184 55656
Operating costs:
Cost of goods sold 39767 40727
Selling, general and administrative expenses 5697 5547
Research and development expenses 2135 2046
Operating profit 5328 5628
From the above Profit and loss statement it has been analysed that Tesco is leading
company in UK and has also enhanced its operations and earned huge profit in recent years.
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TASK 4
LO 4 A formal report
4.1 Stages of Team Development.
Team is becoming one of the most important tool in terms of organising work. It is
essential in order to motivate employees and also to consider fact that teams gets develop and
mature over a particular time period (Levi, 2015). There are five stages in team development
which has been discussed as per below context-
 Forming- This stage takes place when member of team meet each other and introduce
themselves to each other. Further, they also share information in terms of their
background, interest and experience and tries to form good impression among them.
Thus, in this stage team member has to be clear about team goals and also must provide
clear direction to them for a particular task. They also have to ensure that all members are
involved in order to identify their roles and responsibilities and must also make them
ensure that they have to work with team.
 Storming- After formation of employees or members, they move those members towards
storming stage. In this stage, the team member of Tesco has to ensure that all members
that are involved with them must learn to listen to each other and also in respecting their
views and ideas that are shared. In addition to this, leader will have to coach members tgo
become more assertive and also effective listeners.
 Norming- The team member is not any more involved in decision making and problem
solving process as they believe that team member is working in better manner and that
they have ability in taking responsibilities in such areas. They also has self direction in
high level and are also capable of solving conflicts as a group.
 Performing- Members of team work as a group in effective manner and do not require
oversight that is required at other stages. Leader therefore, continue to monitor progress
of their team and celebrate achievements in terms of milestones with whole team. Thus, if
any particular member starts working independently, then they are reverted back to
storming stage.
 Adjourning- the project or task finally comes to an end at this stage and team gets
collapsed. The members start moving to different directions. In addition to this, the leader
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must ensure that time of celebration has been arrived in terms of success of project and
also in capturing best practices that can be used for further improvements.
4.2 Analysis to determine own and others roles within a team.
Illustration 1: Tesco organisational chart
(Source: Tesco Organizational Structure, 2018)
As being a manager, I have to look after day to day operations of the management. Thus,
the employees that are working in organisation has to report me and I report to the regional
manager who is the head of that particular store. I also have ability of leading and motivating
team so that they can ensure maximum amount of profitability. I have to look many other
departments to ensure that there is lack of misunderstanding.
Food trading manager is responsible for local brand development and also in selling to
those companies who can distribute to customers. Non food managers analyses feedback from
customers and also trading patterns to ensure that they are effectively coordinating priorities
across non food areas. Thus, role of personnel manager is to perform managerial and operative
functions of management. They basically deals with issues that are actually related to
compensation, performance management, organisation development, safety employee motivation
and others.
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4.3 Assessing three motivation theories.
Motivation theories has been developed in order to explain concept of motivation that
drives forces of an individual so that they work in certain way (Romager and et.al., 2017). Thus,
motivation theories has been discussed as per below context-
1. Hezberg Two factors theory- This theory is also known as motivation hygiene theory.
According to Hezbergs two factor theory there are some factors which are known as
motivating factors that can cause job satisfaction and also motivation to employees. In
addition to this, there are some other factors that are separated and is also known as
hygiene factors which cause dissatisfaction to the employees. Therefore, hygiene factors
are needed in order to make sure that employee is not dissatisfied and motivation factors
are required to ensure that satisfaction is fulfilled of workers and also that they are
motivated in order to perform at high level.
2. Skinners Reinforcement theory- This theory basically states that behaviour of an
individual is a function of its consequences. It also states that external environment of
Tesco must be designed so effective and positive that may lead in motivating huge level
of employees. Thus, following methods is used in order to control employees behaviour.
 Positive reinforcement- this implies to give positive response when positive and needed
behaviour is shown by individual.
 Negative reinforcement- this implies to reward employee by removing negative
consequences. Both this reinforcement can be used in order to increase behaviour that is
required.
 Punishment- this basically implies removing positive consequence to lower down the
probability of repeating behaviour that is undesirable in the future.
 Extinction- in this there is absence of reinforcements and implies to lower down
profitability of undesired behaviour by reward removing by that negative behaviour.
3. Adams equity theory- This theory states that people of Tesco is therefore motivated if
they will be treated in equal manner and also if they receive what is fair for efforts and
costs. According to this theory, comparison is done between work and benefits. If
individual realise that ratio of their input and output is equal to other than they will get
motivated and reduce inequity.
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4.4 Different types of leadership style.
 Autocratic- In this leadership style, decision is made by leaders without consulting with
subordinates (Subramanian, Joshi and Deshmukh, 2018). Further, they reach to particular
decision, communicate them to that of subordinates and later except sudden
implementation from them. Thus, work environment in autocratic leadership lacks
flexibility.
 Democratic leadership- In this style, subordinates are involved in making any kind of
decision. Further, this style is centred as per the contributions of subordinates. Therefore,
final responsibility is further held by leader who are known in delegating authority to
members. This leadership style is very much fair and creative and also is the extremely
preferred one.
TASK 6
LO 6 Customer service
6.1 Impact of customer service on business success.
To achieve huge success, Tesco must try to provide good customer service as all
customers are key to build business (Trusov, Ma and Jamal, 2016). Thus, impact of it on
business success has been discussed as per below context-
 Setting expectation at the start- Customers get very much frustrated when they do not get
effective solution for their problem. If cited organisation know from very start about that
particular problem and also about its difficulties, that it cannot be resolved quickly.
Therefore, customer service team is therefore asked to update their customers on daily
basis and will also let them know the actual time that is required for solving that
particular problem. This will lead in maintaining loyal customer base and company may
reach the boost.
 Prevents negative returns and returns- Customer service team tries to speak with their
potential customers in rude tone, which is not tolerable by customers. So they have to
speak with them in calm tone because they are willing to spend money with business,
they want to be respected. Thus, speaking in calm and respectful tone or voice will help
them in maintaining relationship with customers and also contacting to new consumers.
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6.2 Benefits of customer profiling to business.
Customer profiling is termed as way in order to create portrait of potential customers that
helps company to design decisions concerning the service (Yahaya and Ebrahim, 2016). The
main aim of this is to gather all the data that is required about those people to which company
wants to sell their products and services. Further, these customers are further grouped as per the
categories. Thus, it has various importance as follows-
 It helps in matching real people with profiles.
 It leads in understanding untapped market potential.
 Improve targeted marketing.
 Choose better sites.
 It helps company to know the type of customer they actually want to sell and also in
making marketing easier.
CONCLUSION
From the above report, it has been concluded that business operations plays very essential
role in order to achieve long term success. Thus, team development stages and key legislation
features has been mentioned in the above report, that leads in forming effective team which in
turn perform with high level performance.
Further, it has also been analysed that customer service and customer profiling plays
critical role to make business reach the boost as they can easily reach to customers and manage
their queries accordingly. In addition to this, this report also highlights on leadership styles and
motivation theories as if adopted by Tesco may lead them in motivating employees in positive
manner so that they work in effective manner and increase profitability.
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REFERENCES
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Online
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Tesco Organizational Structure. 2018. [Online] Available through: <https://research-
methodology.net/tesco-organizational-structure/>
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