Leadership Styles and Management Practices

This report discusses the importance of adopting suitable leadership and management styles to lead team members and subordinates effectively. It highlights the use of Theory X and Y for motivating employees through rewards and appreciation based on performance. The report also emphasizes the significance of managers and leaders having good motivation skills, decisive skills, and using democratic leadership styles to take better decisions and include employees in the decision-making process.

UK RETAIL

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................3
Brief introduction of the firm.................................................................................................3
Vision, leadership style, management practices and strategies of Tesco...............................4
Implementation of above strategies and management practices............................................6
Recommendations for improvements.....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Leadership styles are very essential for the leaders so that they can perform their function
in an effective manner. The managers and leaders has the responsibility to look after their
subordinates so that they can execute their assigned work in proper manner. Both managers and
leaders needs to follow the suitable leadership styles for leading the employees towards the
organisational goals. Taken firm in this assessment is the Tesco which is the third largest retail
firm of world based in UK. Company is providing a wide range of products such as books,
clothing, electronics, furniture, toys, petrol, software, financial services etc. This report will
cover the brief introduction of Tesco along with the vision, leadership style, management
practices etc. of the Tesco by using various theories. Further, the implementation of above
factors by the organisation along with the recommendations for improvement will be provided in
this report.
TASK 2
Brief introduction of the firm
Tesco is a British multinational groceries firm having headquarter at England, United
Kingdom. It is the third-largest retailer in the world in terms of the gross revenues and ninth
largest retailer in the world in terms of the revenue. The company is operating its business
operations in seven countries across the Asia and Europe. Tesco is the market leader in the
groceries segment of UK covering around 28.4% of market share of UK. The company has more
than 6569 stores across the seven countries and employing more than 460,000 employees
throughout their stores. Tesco is listed on the London Stock Exchange and is a constituent of the
FTSE 100 Index. The company had market capitalization of around £18.1 billion in April 2015.
Company was founded by Jack Cohen in the year 1919 as a small group of the market stalls. The
first Tesco shop was opened in 1931 at Burnt Oak, Barnet and by 1939, company had seen
strong growth having more than 100 Tesco shops across the country. Originally Tesco was an
UK grocer but after the 1990s, company expanded their operations in 11 other countries around
the world (Amagoh, 2019). The company is presently providing a long and wide range of
products and services to the customers such as retailing of books, clothing, electronics, furniture,
toys, petrol, software, financial services, telecoms, and internet services etc. Tesco has a wide
range of operations and having other shops such as Tesco Extra, Tesco Superstores, Tesco

Express, Tesco Metro, One Stop, Tesco.com Dark Stores, Home shopping, Tesco Clubcard,
Petrol stations etc.
Rationale of the study
Tesco is a British supermarket chain having business operations all around the world.
The firm can be seen as a successful example of the business in the foreign countries. Tesco is
taken for this report so as to determine the various strategies and leadership style adopted by the
company to handle the business operations effectively.
Vision, leadership style, management practices and strategies of Tesco
Vision: The vision of the company is to become a major player of retail sector by
providing effective and good quality based products and services to the customers for satisfying
their needs and demands.
Leadership and management style: The managers and leaders of the Tesco are using
various leadership and management styles for handling the business operations of this
multinational firm (Ardichvili, Cardozo and Gasparishvili, 2018). These leadership styles are
necessary for handling the operations and workforce of the firm in this competitive global
market. The styles used by the managers and leaders are discussed below:
Autocratic style: In this style, the power to take decisions lies in the hand of a single
individual i.e. either manager or leader. The employees of Tesco does not have the authority to
take part in the decision-making process of the company. However, when this style is used by the
managers and leaders, then it may leads to the dissatisfaction of employees as they are not
involved in decision-making process.
Consultative style: In this style, the managers and leaders consult with their subordinates
or lower level employees while taking any decisions. People who follows this style are good
listeners. Also employees feels motivated in working when their ideas are considered by the
management in decision-making process. The ideas and suggestions from the employees can be
taken from ways such as newsletters, team briefing or suggestion boxes.
Democratic style: In this style, the managers or leaders provides full freedom to the
employees to take the decisions. The employees has the responsibility to take the decisions
whereas final decision is taken by manager or leader after the suggestions and views from the
employees (Chen and Lee, 2018). People who follows this style are very understanding and
usually take feedback from the employees regarding the taken decisions.

Tesco mainly support the consultative style so that the managers and leaders can take the
suggestions and ideas from the employees while making any decisions. Through this style,
managers and leaders can effectively take better and improved decisions for the betterment of the
employees and organisation (Church and Waclawski, 2009). The managers and leaders take the
decisions by using the collaborative ideas of their subordinates. For example: When Tesco
expand their business operations in a new country, then the managers take the suggestions from
the staff of that particular company. The company also uses the democratic style and Laissez
Faire style sometimes for taking the decisions by using the knowledge of the experts.
Strategies
Management is the process of monitoring and managing of various business operations
and functions in order to ensure the accomplishment of the organisational goals. Management of
an organisation needs various types of resources such as funds, raw materials, customers etc. for
performing their various functions such as organizing, planning, controlling and leading etc. The
management of Tesco are using various theories for developing management practices which are
performed by the management of firm (Conger, 2018). The company is providing monetary
benefits such as rewards, performance appraisals, incentives etc. to the customers for motivating
them in their work. Tesco is using two methods for improving the skills and efficiency of the
employees. These includes rewards and trainings. Also the managers and leaders of the Tesco are
using the Theory X and Y for motivating their employees so as to enhance their productivity and
performance. The theory X and Y are given by Mc Gregor in 1960. This theory is discussed
below:
Theory X: This states that there are some employees of an organisation who does not
desires to work rather they seeks reasons for avoiding their work. For motivating such
employees, management of the Tesco is providing them rewards and punishments on the basis of
their efficiency, performance and executing the work (Hood, 2012). Through this, such
employees tries to improve their working efficiency and performance for getting these rewards
as well as to avoid the punishment.
Theory Y: This theory states that the some employees of an organisation are focused on
improving their skills and performance due to the self confidence and motivation. For handling
such employees, the managers and leaders of the Tesco are providing them rewards and
appreciation so that these an further improve their performance and efficiency. Through this,

they can accomplish their desired goals effectively without any problems. Such people often
takes feedback from the managers and leaders regarding their work so that any issues can be
determined by them (Long and et. al., 2012).
Implementation of above strategies and management practices
Implementation of proper management practices and leadership styles is essential for an
organisation in order to gain high growth and success in the market place. Tesco is a multi-
national firm having operations in various countries. So the management needs to provide their
support and guidance to the employees so that they can accomplish their pre-determined goals
and objectives in an appropriate manner as well as in given deadlines. Leadership styles and
management practices are useful for the company i.e. Tesco in getting an upper competitive edge
over the competitors at the market (Sorenson, 2009). The leadership style used by the managers
and leaders of the Tesco is bureaucratic style through which the managers are allotting the roles
and responsibilities to the employees by providing them a clear understanding of the goals and
objectives of the organisation. Tesco managers are using the Theory X and Theory Y for
motivating their employees so that they can work hard for accomplishing the desired
organisational goals. Also the judgements given by the managers of the firm are based on this
theory.
For example: IN case of two employees, one is motivated in work whereas other avoid
the work given to him. The managers can choose this theory for motivating both the workers. By
using the theory X, managers can provide the rewards and punishment to the second employee
based on his capabilities and performance. Whereas for motivating the first employee, managers
can provide him appreciation along with the rewards in order to further improve his performance
and efficiency. Also the manager can provide the training to first employees so that he can
further improve his knowledge along with the skills for the betterment of the organisation. By
using this theory, managers can provide healthy working environment to the employees which is
also beneficial for managers in taking suitable decisions for the company.
The leadership style used by the managers and leaders is consultative leadership style
through which they can determines the impact of the decision on the subordinates as the ideas
and opinions are taken from them. Managers who follows this style includes the suggestions of
their subordinates in the final decisions taken for the betterment of organisation. Tesco is using
various methods for taking the views and opinions of the employees such as team briefs,

newsletters and suggestion boxes. The managers and leaders of Tesco also uses the democratic
leadership style in some situations where the consultative style is complex to use (Zhu, Chew
and Spangler, 2010). Through this style, employees can take the decisions based on their team
ideas for taking the decisions to accomplish the desired organisational goals of the organisation.
Also the company is using the laissez-faire leadership style for taking the decisions regarding the
talented and expert people.
Recommendations for improvements
Tesco is a big company having operations in various countries. So, it is essential for the
company to have successful and effective leaders who can motivate the employees and can take
effective decisions for the betterment of the organisation. Leaders and managers of the Tesco
must have suitable skills so that they can effectively perform their work. Some of these skills are
discussed below:
Communication skills: The leaders and managers of the Tesco must have strong
communication skills so that they can communicate and interact with the employees properly.
Through this, a harmonious environment can be maintained at the workplace as well as the
employees also gets the proper understanding of the goals.
Motivational Skills: The leaders and managers of Tesco must have good motivation
skills so that they can motivate the employees for working hard. Through this, the employees can
support the employees in case of reduced performance or morale.
Decisive Skills: The managers and leaders of the Tesco must have these skills so that
they can properly take better decisions for the betterment of the organisation. These decisions
will also improve the performance and productivity of the organisation.
The managers and leaders of the Tesco can use the democratic leadership style for taking
the support from the employees regarding the decisions to be taken. Also through this style,
managers and leaders can include the employees in the decision-making process of the
organisation. Whereas Tesco can use the Theory X and Y for motivating their employees
through the use of the awards and appreciation based on their performance. The employees can
achieve their personal as well as professional goals effectively by using the rewards and
appreciation.

CONCLUSION
It has been concluded from the above report that the leadership and management styles
must be adopted by the managers and leaders suitably. It is also essential for leading the team
members and subordinates in an appropriate manner. The management or companies can use the
theory x and y for motivating and punishing their team members when their performance is not
satisfactory.

REFERENCES
Books and Journals
Amagoh, F., 2019. Leadership development and leadership effectiveness. Management Decision.
47(6). pp.989-999.
Ardichvili, A., Cardozo, R. N. and Gasparishvili, A., 2018. Leadership styles and management
practices of Russian entrepreneurs: Implications for transferability of Western HRD
interventions. Human Resource Development Quarterly. 9(2). pp.145-155.
Chen, C. C. and Lee, Y. T., 2018. Leadership and management in China: Philosophies, theories,
and practices.
Church, A. H. and Waclawski, J., 2009. The Impact of Leadership Style on Global Management
Practices 1. Journal of Applied Social Psychology. 29(7). pp.1416-1443.
Conger, J. A., 2018. Leadership: The art of empowering others. Academy of Management
Perspectives. 3(1). pp.17-24.
Hood, J. N., 2012. The relationship of leadership style and CEO values to ethical practices in
organizations. Journal of Business ethics. 43(4). pp.263-273.
Long, C. S and et. al., 2012. Leadership styles and employees’ turnover intention: Exploratory
study of academic staff in a Malaysian College. World Applied Sciences Journal. 19(4).
pp.575-581.
Sorenson, R. L., 2009. The contribution of leadership style and practices to family and business
success. Family Business Review. 13(3). pp.183-200.
Zhu, W., Chew, I. K. and Spangler, W. D., 2010. CEO transformational leadership and
organizational outcomes: The mediating role of human–capital-enhancing human
resource management. The leadership quarterly. 16(1). pp.39-52.