Types of Leadership at TESCO: Employee Behavior & Innovation

This project investigates the influence of different leadership styles on employee behavior and innovation within TESCO, a multinational retail company. The research explores various leadership types, including autocratic, democratic, and Laissez-Faire styles, examining their impact on employee morale, decision-making processes, and overall organizational performance. The study uses both primary and secondary research methods, including qualitative and quantitative approaches, to analyze the relationship between leadership styles and the innovation process in customer service. The project also considers the role of top management in shaping employee behavior and fostering an environment conducive to innovation, with a focus on how leadership impacts the implementation of new ideas and the achievement of organizational objectives. The research includes a literature review covering different leadership styles and their impact on employee behavior and innovation.

Types of Leadership as the
influence of top management
on employee's behaviour in
the innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
Rationale..........................................................................................................................................2
LITERATURE REVIEW................................................................................................................2
METHODS......................................................................................................................................5
FINDINGS.......................................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

Project Title: Types of Leadership as the influence of top management on employee's
behaviour in the innovation process of customer service: A Case Study on TESCO.
INTRODUCTION
The word “leadership” portrays different kinds of image in the minds of a person such as
political leader, a person who is above all others and perform this/her task in a different way.
Leaders are the one who possesses leadership qualities in order to give right directions to other
so that they can do activities in a right manner (Armstrong and Taylor, 2014). Therefore, it can
be said that leadership qualities always help a leader in mapping things such as what paths team
members can follow so that they can accomplish the goals and objectives in a speculated time
frame.
Top management in an organisation containing highest ranking as chairman/ chief
executive, officer, managing directors, presidents, executive directors etc., they are crucially
important for performing the activities such as communicating the policies, defining aims and
objectives of an organisation, shared vision. Types of leadership and top management can put an
impact on the behaviour of employees. TESCO, is one of the leading companies in United
Kingdom and deals in retail sector. TESCO provides its services worldwide. Across United
Kingdom they have around 979 stores in which 615 are sell food related products (TESCO,
2018). Approximately 84,939 employees are working day and might for providing benefits to the
organisation so that company can sustain a better position in the market for a longer period of
time.
This report will include different types of leadership styles which can influence top
management on employee's behaviour in the innovation process of customer services. The
research is conducted on TESCO, which is a multinational company in United Kingdom and
providing effective services and facilities to its customers. Managers in the firm is using different
leadership styles such as autocratic, democratic, Laissez-Faire Leadership etc., according to the
different situations and circumstances. Thus, the main purpose of focusing on leadership style is
that they think and work in a comprehensive manner at the same time (Moriano and et. al.,
2014). Therefore, this statement will be justified with the help of hypothesis and which will
assist researcher in evaluating a better outcome for the research which is being conducted.
Research Questions
Primary Research Questions
1

1. How the types of leadership can influence the top management on the employee's behaviour in
the process of innovation of customers' services?
Secondary Research Questions
1. What are the various leadership types used by the proficient leaders?
2. How effective leadership is related to the improvement of the employee behaviour in the team
of TESCO?
3. Why efficiency in leadership is much desirable for bringing innovation in the customer’s
services?
Research Objectives
 To examine the types of leadership
 To examine the impact of the types of leadership on the employees behaviour of TESCO
 To examine the innovative ideas that enforced by strategic leader for meeting the
organizational Requirements of TESCO.
Rationale
Most of the organisations works with the purpose of providing best services and facilities
to customers so that this can assist them in sustaining a good position at the market area. Thus, in
order to do the same, it is required that company follows guidelines so that effective strategies
can be made so as to improve production and efficiency of the company in a limited period of
time (Build An Effective Strategy, 2018). Thus, this research will help researcher in knowing
what kind of changes company can do in order to implement innovation which can assist firm in
providing better services to consumers. As with the help of this researcher, researcher will be
able to know does leadership influence the behaviour of employees working within the
organisation for implementing new innovation in their business so that maximum benefits can be
attained. Therefore, by illustrating this, firm can do necessary changes for developing
themselves. Other than this, with the help of this research company can identify the factors
which can put an impact on culture of organisation.
LITERATURE REVIEW
According to the view point of Jaiswal and Dhar (2015) Leadership includes attitudes
through which behaviour of an individual can be influenced so that purpose of attaining goals
can be fulfilled. Leadership assist company in providing direction to the firm so that set targets
2

can be achieved in a limited period of time. In the market area there are different types of
leadership styles which managers or leaders can implement so as to guide team members for
accomplishing the targets (Different types of leadership styles, 2018). There are many leadership
skills that leaders adopt for proper functioning and from all these autocratic leadership, are
followed by leaders in order to acquire effective results for their businesses. Thus, leader who
follow this kind of leadership style take ultimate control over decision making without
consulting other members working within the group (Leadership style, 2018). Thus, it can be
said that they possess high level of power. Although autocratic leadership provides benefits to
the organisation, but it can lower down the morale of employees as superiors not give much
importance to employees. Apart from this, it can be said that leaders who are not active in
performing any kind of task follow Laissez-Faire leadership as in this leader have power, but
they do not exert these over employees directly and it is because employees in this are
experiences and requires little supervision. Laissez-Faire Leadership has some limitations as well
as leaders of this fails to provide feedbacks on a regular basis (Laissez-Faire Leadership, 2018).
Although, choice of leadership depends upon the situations and working condition. This can
motivate employees and workers thus, Kang, Solomon and Choi, (2015) opines that transnational
leadership is based on an exchange process because when team mates get success in achieving its
goals and objectives then they get an immediate tangible reward. Thus, this kind of leadership
style is very much helpful in boosting the morale of an individual working in an organisation.
Moreover, according to the view point of Hogan and Coote (2014) democratic leadership
is considered as one of the best leadership style as every subordinates viewpoint are considered
before making any kind decisions. Therefore, it can be said that for most of the leaders it is one
of the effective approach and preferred as well.
According to Goetsch and Davis (2014) with the change in the environment and increase
in the complexity of business activities leaders and a person possessed with leadership qualities
has provided company with benefits. They are the one who influence other person for
performing their activities in such a way that goals and objectives are achieved so as to get
desired outcomes. Autocratic leadership is determined as one of the most harsh and unpleasant
form of leadership style as in these orders are just given and employees have to perform work
accordingly. This can have a negative impact on the performance of an individual who is
working in an organisation as they can lose their confidence level. In context with TESCO,
3

although they use this kind of leadership style for improving growth rate for a limited period of
time but on the same time company can lose their valuable customers who are not given much
importance. Therefore, there might be a possibility that other leaders working within the
organisation uses Laissez-Faire Leadership where leaders don’t show any kind of interest and
can avoid making any kind of decisions as they are unwilling to perform any kind of task or
action because they avoid situations where they are a chance of encounter issues and problems
(Shin and et. al., 2015). Along with this, these individuals who follow these leadership styles
does not provide any kind of reviews. Therefore, this can put an impact on employee's behaviour
because they will not be able to know about their pros and cons. Thus, performance of company
can decrease. In the views of Rahim, (2017) transactional leadership is appropriate when leaders
are more concern about achieving goals and objectives. Other than this, employees are given
rewards for the attaining set targets. Thus, in context with TESCO, leaders are giving rewards
which is ultimately improving morale and confidence of employees and it is gradually increasing
profit level of the organisation. But researcher cannot rely on transitional leadership because
without making proper interaction democracy cannot be maintained thus, it is one of the most
effective and reliable form of leadership as workers are given equal opportunity of presenting
their views and thoughts. In addition to this, they are given their opinions are taken into
consideration before taking any kind of decision. Therefore, TESCO are following this kind of
leadership style because of which employees are performing the task with full enthusiasm and
dedication.
As per the view point of Birasnav, (2014) In order to sustain in the market for a longer
period of time that it is important that managers and leaders formulate strategies which can
provide benefits to the organisation. Thus, in order to do so, TESCO are implementing
innovative ideas and thoughts which is enabling them and making them unique from others.
Innovative ideas are also required for fulfilling the requirements and this can be done by
Establishing a clear sense of direction as it will provide leaders and managers a clear direction of
activities to employees so that they can perform the same in an effective manner. In relation with
TESCO, they are giving clear instructions which is assisting employees in focussing on
innovation through which workers can deliver greatest value. As a result, strategic leaders can be
able to get desired results with the help of employees. Other than this, according to the
viewpoints of Bason, (2018) Open communication which is the most common aspect which is to
4

be considered by firm. Thus, in relation with TESCO they have set an atmosphere of trust by
establishing cultural diversity. For example: IT department of the company can develop a chat
application for employees as well as superiors through which managers can provide all the
information related to company's objectives easily in quick time. In order to achieve targets there
is a requirement of building a strong team and this can be done by Creating a highly diverse team
as it will provide a source of nobble ideas which can improve performance of a company. For
example: leaders of TESCO can include person from different departments like sales and
marketing who can assist a team in providing innovative ideas for enhancing its sales and
profitability. Employees from various department can provide a wider scope and area of
performing the activity.
METHODS
Research is conducted by an investigator to have a detailed information regarding a
specific topic, thus, in order to perform this research, investigator has both primary and
secondary research for collecting data and information (Birasnav, 2014). Former is used for
making the research authentic as information that are gathered are done for the first time.
Whereas secondary method provides precise information related to research topic. Furthermore,
qualitative and qualitative approaches are being used and these are explained below for better
understanding:
Qualitative approach: This is one of the approaches which researcher can use of
conducting the investigation in an effective manner. It is an type of research approach in which
data is collected by an investigator on the basis of perception or observation. It is an exploratory
research process used by an investigator to gets an understanding of various opinions and
reasons. It helps in providing insights to a investigator on a particular problem for developing a
research hypothesis. In this appropriate data is collected through unstructured or semi-structured
techniques which include methods like group discussions, interviews etc. The sample size used
in this approach is typically small and participants are selected to fill that give quota. In this an
investigator has to collect appropriate data and then make an attempt to describe it's explanation
on a particular topic. In this approach, researcher mostly use a common observation to gain
conclusion on a particular research topic. It makes an researcher to understand a particular
phenomenon.
5

Quantitative approach: It is a type of research approach in which an investigator
quantifies a particular problem by collection numerical data that is further transferred into usable
statistic. It is used to get results from a sample of large population (Dul and Ceylan, 2014). It
uses measurable data to gain an appropriate conclusion and to formulate certain facts and
patterns that remains uncovered. The methods used by a researcher in this approach are more
structured as compared to qualitative research approach. It includes methods like interviews,
mobile survey, online surveys etc. to get an appropriate conclusion from a particular research
topic. It is a statistical investigation of an observational research. The main object of quantitative
research approach is to develop mathematical data to pertain a particular phenomenon. It is used
to identify that which of the hypothesis is true or not for developing a particular research
hypothesis. It widely used in psychology, demography and marketing.
Significance of the research: This research is conducted in order to explore leadership
styles which can influence top management for implementing innovative ideas in order to give
better customer services. Therefore, main purpose of doing this research is to know employee's
behaviour towards innovation so that managers can have an idea whether applied innovative will
be effective in providing better consumer service. For instance: for resolving the issue company
has implemented latest tools that can record all the problems and later managers can listen to the
same and revert accordingly (Chuang, Jackson and Jiang, 2016).
Limitations: Not every research can be conducted in an easy manner, there are some
limitation which can be faced by the investigator. This can be related to different factors like
managing and maintaining business activities. Limitation which was faced by researcher is while
designing research questions and interpreting the same while accomplishing the research. Other
than this, some of the limitation were effective communication as to some of the respondents it
was difficult in explaining research questions. Inappropriate behaviour of respondents as they
were not willing to answer the questions. Along with this, there was time and cost boundation
which acted as a limitation while conducting this research.
FINDINGS
RESULTS
Primary Research Questions
6

Large organisation has moved towards innovation in order to get higher economic
performance. Companies with the help of new ideas they are providing benefits to the
organisation. The process of innovation consists of certain steps such as idea generation, idea
realisation etc., therefore, companies had to rely on employees in case of innovation because
they are the one on whom all the activities are applicable such as whether they want to work
according to innovation or not. According to Birasnav, (2014), it can be stated that leaders plays
a crucial role in an organisation as activities performed by them can put a positive as well as
negative impact. For instance: effective leadership can assist leaders in taking quick decision,
having close supervision etc., but instead of this it can have some negative impact such as low
rate of turnover, demotivated employees and many more. Thus, Birasnav, (2014), in his study
opines that, management and leadership behaviour both plays a crucial role in influencing
behaviour of employees for providing effective services to its customers. Hence, from this it can
be analysed that different leaderships behaviour can puts an impact on the employees behaviour
and most of the time top management use this for influencing workers so that better outcomes
can be gained.
The concept of using effective leadership style is a debate till now because most of the
scholar says that for aggressive approach in the market area autocratic leadership style is
effective but it has some negative impact as well which can be seen by the leaders at the time of
using this type of style such as putting lots of pressure on workers for performing their activities.
According to Hoch, (2013), he states in his findings that democratic leadership style is most
effective and reliable approach even after the circumstances and results are slower than usual.
Therefore, it can be said that leadership styles adopted by leaders can influence customers in
implementing innovation at working environment so that better customers services can be
provided.
Secondary Research Questions
According to Chen and et. al., (2012), it can be stated that leadership and success of a
company have a direct relationship as if effective leadership styles are used than firm can
provide better services and facilities to its customers. Therefore, proficient leaders choose
appropriate leadership styles according to the situations and circumstances. As per the thoughts
of Hogan and Coote, (2014), autocratic style has its own effectiveness as it provides great
7

success in quick time but most of the time scholar talk about its limitations because it displays
less creativity which gradually lower down the morale of employees. Workers can feel
themselves disconnected and their productivity level can decrease. Shin and et. al., (2015),
opines in their views that, establishing core values or principles company leaders can work
effectively and this is possible in democratic leadership style as it engages every individual in
their discussion process. Thus, it can be evaluated that whether it is autocratic or democratic or
any other leadership style with its effective use leaders can provide better results to the
organisation.
As per the view point of Rahim, (2017), Employees are important assets to an
organisation as on the basis of work they perform it can lead firm to a better position or it can
bring down the company's reputation. Dul and Ceylan, (2014) in their views states that effective
leadership can be linked with employees behaviour because leadership style used by leaders can
motivate as well demotivate workers as a result, workers can feel disconnected from the
company as their performance can get hampered. According to the view point of Chuang,
Jackson and Jiang, (2016) there are some leaders who use Laissez-Faire style of leadership
because they don't want to actively participate in the task and this can put a negative impact on
employees behaviour as it can make employees lazy unlike their leaders which can further make
the workforce unproductive and ultimately its impact can be seen in company's performance.
Most of the employees working in an organisation wants that they have some kind of
improvement in their working so that their skills and knowledge can be enhanced. Therefore, if
leaders use democratic leadership style than employees can get a chance of participating in
various discussion as a result, it will not only increase their knowledge but also provides a
chance of getting interacted with their subordinates. This will create a sense of belongingness
towards the organisation and it will improve the performance of employees.
According to the view point of Bason, (2018), it can be stated that effective leadership
quality helps company in bringing innovation in their business so that effective customer
services can be provided. As they are the one who can influence the behaviour of employees by
providing information related to the benefits company as well as workers can have after
implementing innovation in their business activities.
DISCUSSION
8

It can be analysed that from the above result that leadership styles put a great impact on
the performance of company. In addition to this, top management always request leaders to use
effective strategies so that they employees can agree and support in implementing innovation in
their business activities. For instance: leaders can use different kind of leadership styles for
operating its business, but they can get appropriate results according to the situations and
circumstance. For suppose for increasing sales and profitability leaders for a time being can use
autocratic leadership style as it can provide benefits but can also put a negative impact on
employees performance.
CONCLUSION
From the above-mentioned report, it can be concluded that for an individual leadership
plays as an important role as it assist employees in guiding team mates in an effective manner.
As a result, it is enabling them in achieving set goals and targets in a speculated time period.
Leadership can influence top management for implementing new and innovative ideas because
they have proper knowledge about employees behaviour whether they are in favour of
introducing new and innovative ideas. There are different kinds of leadership styles which a
leader can use incorporate and with the help of this research it can be evaluated that democratic
form of leadership style is more appropriate because it provides equal chance to every individual
in presenting their views and thoughts for accomplishing the goals and objectives. Other than
this, with the help of diverse workers from different departments can help company in attaining
their goals in a speculated period of time.
9

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Moriano, J. A. and et. al., 2014. The influence of transformational leadership and organizational
identification on intrapreneurship. International Entrepreneurship and Management
Journal. 10(1). pp.103-119.
Kang, J. H., Solomon, G. T. and Choi, D. Y., 2015. CEOs' leadership styles and managers'
innovative behaviour: Investigation of intervening effects in an entrepreneurial context.
Journal of Management Studies. 52(4). pp.531-554.
Jaiswal, N. K. and Dhar, R. L., 2015. Transformational leadership, innovation climate, creative
self-efficacy and employee creativity: A multilevel study. International Journal of
Hospitality Management. 51. pp.30-41.
Wallace, J. C. and et. al., 2016. A multilevel model of employee innovation: Understanding the
effects of regulatory focus, thriving, and employee involvement climate. Journal of
Management. 42(4). pp.982-1004.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Birasnav, M., 2014. Knowledge management and organizational performance in the service
industry: The role of transformational leadership beyond the effects of transactional
leadership. Journal of Business Research. 67(8). pp.1622-1629.
Hogan, S. J. and Coote, L. V., 2014. Organizational culture, innovation, and performance: A test
of Schein's model. Journal of Business Research. 67(8). pp.1609-1621.
Shin, Y. and et. al., 2015. Top management ethical leadership and firm performance: Mediating
role of ethical and procedural justice climate. Journal of Business Ethics. 129(1). pp.43-
57.
Rahim, M. A., 2017. Managing conflict in organizations. Routledge.
Birasnav, M., 2014. Relationship between transformational leadership behaviors and
manufacturing strategy. International Journal of Organizational Analysis. 22(2),
pp.205-223.
Dul, J. and Ceylan, C., 2014. The Impact of a creativity‐supporting work environment on a firm's
product innovation performance. Journal of Product Innovation Management. 31(6).
pp.1254-1267.
Chuang, C. H., Jackson, S. E. and Jiang, Y., 2016. Can knowledge-intensive teamwork be
managed? Examining the roles of HRM systems, leadership, and tacit knowledge.
Journal of management. 42(2). pp.524-554.
Bason, C., 2018. Leading public sector innovation: Co-creating for a better society. Policy
Press.
Herrmann, D. and Felfe, J., 2014. Effects of leadership style, creativity technique and personal
initiative on employee creativity. British Journal of Management. 25(2). pp.209-227.
Vaccaro, I. G. and et. al., 2012. Management innovation and leadership: The moderating role of
organizational size. Journal of Management Studies. 49(1). pp.28-51.
Hoch, J. E., 2013. Shared leadership and innovation: The role of vertical leadership and
employee integrity. Journal of Business and Psychology. 28(2). pp.159-174.
10