Analysis of Leadership and Management Theories in Tesco

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BUSINESS ORGANISATIONS: LEADERSHIP & MANAGEMENT A2

Table of Contents
Introduction......................................................................................................................................3
Discussions......................................................................................................................................4
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

Introduction
Leadership and management forms one of the significant topics of discussion in the
contemporary times. While leadership identifies the process of motivating the individuals to
perform their work more effectively, management is the process of making sure that everything
occurs in the prescribed way. There is of course a vast and significant difference, that lies among
both of them and the assignment below will focus on these factors. For developing an in depth
idea about these factors, the case study of Tesco have been selected. The organisation is an
example of one of the leading retail sector organisations operating in the country. Established
in1919 and operating for the last 100 years, Tesco has indeed created a mark for itself in the
global retail market.
The different theories of leadership such as the Charismatic leadership, Behavioral Theories,
Trait Theory, Transformational leadership theories will also be included and discussed in these
sections. The final section will focus on providing a proper development program, considering
the leadership aspects of the chosen organisation.

Discussions
It has been introduced in the earlier sections that there is of course some of the significant
differences that lies among the leadership and management. Though the aim of both of these
concepts are same, but the way in which they work are not always same. In the words of Renz
(2016) leadership, defines the process of motivating the employees to make them work more
effectively towards fulfilling the goals and the objectives of the organisation. Management on the
other hand is more about managing the people and the resources to make them work more
effectively towards the success of the organisation.
It has been identified that leadership is more about inspiring others and making them work
effectively towards the achievement of a common goal. Leadership is more about inspiring and
motivating the individuals to make them work towards a common goal. It has been identified that
in most of the cases, the effective leadership is based more upon the ideas and the processes
(whether it is original or borrowed). In case of most of the organisations including the chosen
one, leaders form the source of inspiration for most of the organisation. In the words of Bush
and Middlewood (2019), leaders are the particular individuals in any group who possess a proper
combination of personality as well as characteristics. It has been identified that in most of the
cases the leaders are the individuals, on whom the employees look upon as their source of
inspiration.
However, there are of course some of the significant differences that lays among the normal and
the business leadership ideas. The business leadership is something that is related more to the
performance, more of enhancing the profit margins than just of motivating the individuals. In
case of leading organisations like Tesco, any individual is considered effective, if and only if the
individual is capable of enhancing the overall profit margins of the organisation in an effective
manner.
Management on the other hand is the process of managing the individuals to make them work
more effectively towards the success of the organisation. Management is more of a professional
approach and is concentrated solely on making the employees work for fulfilling the goals and
the objectives of the organisation. However, the word or rather the concept management is used
extensively in a number of senses. There are actually a number of concepts, which helps in

defining the management in a more precise manner. While to some, management may be defined
as the process of leadership along with the effective decision making skills, while there are
sources that have defined management as an essential economic resource of the organisation. In
the words of Thorpe (2016), management and motivation is something that are complete
antonyms of each other. These two concepts are something that not much goes with each other.
Management is a combination of five of the significant steps and these are planning, staffing,
organizing, controlling and staffing functions. The combinations of all of these functions are
something that defines management functions extensively. Management is nothing but the
combinations of all of the activities that can make the employees do their work in the
organisation.
However, a stiff difference exists between the two concepts. While leadership is more about
motivating the individuals, management is about making them do their work effectively “by
hook or by crook”. In the words of Amanchukwu et al., (2015), management is more of an
organised approach, while leadership is a more flexible approach; it allows the leader to do the
work in any possible ways. Another of the significant difference that lies among the leaders and
the managers is that while people follow the leader, people work for the managers. While
honesty and integrity forms the main characteristics of a leader, the managers are actually able to
execute a proper vision. While ability to direct and lead is some of the significant attributes of
the manager, the challenging capabilities are some of the significant attributes of a leader.
Another of the significant difference that lies among them are that while the leaders concentrate
much on enhancing the communication skills, the managers are more concentrated towards
establishing the rules of the organisation and the processes hence worth. Thus, it can be stated
easily that management is more of a system-oriented approach.
Thus, it is evident, that though there are some of the significant differences, which lie among
leadership and management, both of the ideas and hence the individuals are essential for
ensuring the success of any organisation. In the words of Hallinger and Wang (2015), the
effective combination of leadership as well as management are some of the significant ideas that
have played a pivotal role in assuring the success of a number of organisations and Tesco is also
one of them.

The concepts of leadership can be explained more easily with the help of proper theories of
leadership and management. There are indeed a number of theories of leadership, which helps in
understanding the concepts of leadership and management precisely. Some of the important
theories of leadership are the Trait theory, Contingency theory, Transformational leadership and
the charismatic leadership theory.
In the words of Bolden (2016), the trait theory identifies the process of leadership that is based
on the models of a number of leaders and managers and it considers the characteristics of both
the successful as well as the unsuccessful leaders and managers. The list thus obtained is then
compared with each other for determining the list of the traits of the successful leaders. The
leader greatly identifies that there are of course some of the significant differences that lies
among the leader and the manager and it is a thing that defines the success of the individual.
Thus, the trait theory in the wider sense is identified as the conglomeration of personal
characteristics that play a significant role in reflecting the range of individual differences that
help in fostering the consistency of leadership in the different situations that may rise in the
organisations. The trait theory of leadership is one of the significant theories of leadership that
are in practice in the contemporary times. In spite of its efficiency in providing the suitable
outputs, the trait theory is considered as one of the most debatable theories of leadership that are
in practice. In the words of Solomon et al.,(2016) , the trait theory of leadership have been
developed effectively from the leadership research that focussed primarily on defining a set of
attributes that helps in distinguishing leaders from the non leaders. There are also a number of
debates that have pointed out that leadership is something that is only unique to a certain group
of individuals and being an effective leader is not everyone’s cup of tea. The theory also further
points out that the effective leaders have some of the unique ideas, qualities as well as the
attributes that cannot be replicated or developed by anyone else. The theory also points out that
the traits are particularly unique to that particular individual. The theory and the study also
points out that understanding these out of great importance.
The basic assumption behind the development of one of the successful theories of leadership is
that the individuals are always born with a combination of inherited traits and ideas that help
them in becoming an effective leader. The theory clearly identifies that each and every individual
have a set of effective traits and characteristics that help them in becoming an effective leader.

The theory considers the fact that the identification of the factors is extremely essential and just
by the mere adoption of these traits will help an individual to be an effective leader. One of the
significant criticisms of the theory is that the theory contradicts a major assumption that leaders
are born not made. On the contrary, it points out that the leaders can be made, just by the
incorporation of some of the basic traits thus developed by the theory. In the words of Pardey
(2016), this is one of the major reasons, that the theory has received so much of criticism.
Like each and every theories of leadership, there are a number of advantages as well as the
disadvantages that are associated with trait theory of leadership. In the words of Amanchukwu
et al.,(2015) the trait theory of leadership is a significant theory of leadership, that is considered
as a pleasing theory which provides constructive information about leadership and the ways that
can be adopted in this regard. There are of course ample amount of research, which has
validated foundation of this theory. The theory can also be applied in all of the levels of the
organisation.
In most of the cases, the managers use the information for accessing the exact position of the
organisation in the market. In case of Tesco, the collection of information of this type also helps
the managers of the organisation in strengthening the position of the organisation in the market.
In most of the cases, the trait theory of leadership provides a proper benchmark against which the
traits of the leader can be accessed and compared. In all cases these also gives the individuals
an in depth idea as to what are the steps that are to be taken by the leader, for ensuring the
success of the organisation. Another of the significant advantage of the theory is that, the
managers can develop an effective idea about the weakness as well as the threats of the
employees and can help the employees in developing the leadership qualities of the individual. In
a nutshell, this provides an effective understanding as well as the idea of the leader in the entire
leadership process (Nawaz and Khan, 2016).

Figure 1: The trait theory of leadership
(Source: Miner, 2015)
However, the theory is also criticised by a number of individuals. In the words of Miner (2015),
a certain limitations of the trait theory have restricted the applications of the theory since 1930.
In the words of Carleton et al.(2018), the trait theory identifies some of the significant traits of
the leaders that can make an individual an effective leader, but the theory does not say anything
about the individuals who posses these characters, but are not leaders in real life. The theory does
not say anything about these case studies. However, some of the individuals identify the
characteristics of the leaders, in accordance with the theory as valid and relevant, however very
few of the individuals have agreed upon the physical personality as well as the intelligence traits.
There are also a number of arguments that have identified that these theory is quite complex in
nature and is of course bound by some of the significant subjective judgements of all forms.
Moreover, the criteria that have been put forward by the trait theory is also considered vague by
many. As many of the factors are situational factors, hence considering these factors for judging
each and every situation is always never a great idea. In the words of Nawaz and Khan (2016),
the personality traits as described by the theory in most of the cases overlap each other in all
possible ways. In most of the cases, these also create ample confusion among the managers as

well as the individuals as to which character should be considered and which should be not. The
list of traits that have been put forward by the theory is also quite long and in many cases
confusing in all aspects. In most of the cases, the traits and the characteristics as defined by the
theory are not even valid in any form.
In the words of Storey (2016), another of the significant disadvantages of leadership that are
avoided by many is that the theory does not provide any direct link among the particular trait
and the effect of that traits on the leadership. This is the region, which creates confusion among
the managers that what will be effect of this leadership on the individual. In a number of cases,
this also creates confusion among the individuals as to what will be the effect of the particular
leadership on the individual. Though some of the traits may be considered as important and
successful, some others are completely vague in all aspects.
The different criticism that have spoken against the theory have identified that leadership is not
a cakewalk , that just by the incorporation of some of the identified traits can make someone an
effective leader. There is of course something more to it and hence this is one of the major
reasons, that have spoken against the theory and it is considered as one of the most debatable
theories of leadership until date. However, there are still some of the organisations, which rely on
the adoption of this particular leadership theory but the disadvantages that are obtained from it
are of course too many in number.
In order to analyse the management program and its contribution in the development of the
leaders of the organization the researcher has chosen Marks and Spencer. Marks and Spencer is
one of the largest retail brands in the UK. Headquartered in Westminster, London Marks and
Spencer was founded in the year 1884 by Michael Marks and Thomas Spencer in Leeds, UK
(Marksandspencer.com. 2019). Initially they started to sell only British-made goods and made a
name for themselves among the locals. They decided to settle into long-term contracts with the
manufacturers of clothes, food and other products. In 1928 the company decided to sell all their
products under the brand name of “St. Michael” to honour the founder Michael Mark. By the
year 1950, almost every product sold in the company where under the brand name of “St.
Michael”. Marks and Spencer started their international journey with their first store in Kabul,
Afghanistan in 1960. Gradually they expanded in all major countries in the world and it was
reported in 2018 that they are planning to hit the 100 stores target by 2022.

Marks and Spencer has various format stores such as core shops, Marks and Spencer Food Hall,
Hospitality, Home stores and others. Marks and Spencer also has a strong online presence. Since
early 2000s, customers could order through their website anytime. The online store was created
in response to the launch of Tesco.com which was considered as a huge success at that point of
time. Online market is particularly a niche market and all leading business entities vying to get
the attention from this customer segment
Currently the company deals in various products such as food, clothing, cosmetics, perfume,
toiletries, furniture, wine, flowers etc. The diverse product line is one of the USPs of the
company. Also, the company is very particular about the quality of products at their store. It has
helped them in earning loyal customer base over the years. The company is involved in various
charity and CSR activities also. It has helped them to create a positive image among its
customers. Especially their contribution towards Breast Cancer Awareness programs has been
lauded by many.
Apart from being a retail brand Marks and Spencer also cater to other industries as well. M&S
Bank, M&S Energy and M&S TV and online services are three popular verticals of the
organization (Marksandspencer.com. 2019).
The most successful year for Marks and Spencer was reported in the year 1997/98. However, the
company faced major financial crisis in during the leadership of Sir Richard Greenbury. The
primary reason for this crisis was reported to be the increasing cost of the British suppliers. The
situation deteriorated when the competitors started importing goods from low-cost countries and
could afford to sustain by offering relatively lower-priced products to their customers. This also
impacted the loyal customer-base of Marks and Spencer hugely (Hannington, 2016). The
customers also found it difficult to shop in the Marks and Spencer stores as they refused to
accept credit cards by other companies and were adamant to promote only their charge-cards.
These policies affected their business financially a lot. After running successfully for more than a
year the financial turbulence sent a message of shock to everyone, including shareholders,
suppliers, business analysts and retail journalists. The reports suggested that the company was
struggling to keep their head above the water in this period and every step taken by the
management was failing instantly. By 2009, the company decided to shut down its under-

performing stores as the restructuring process of the business. The management of Marks and
Spencer also decided to discontinue many brands which were not performing as expected.
In 2010, the chief executive of the company Marc Bolland announced in a Press conference that
the company is planning to pump in approximately 900 million pounds over next three years to
fund the plans to achieve the sales target of 1 billion pound every year. Bolland also announced
the new marketing tagline for the company 'Only at M&S' and revamp of their online presence
at the same time. Gradually the company came out of the financial debacle and decided that
rather than opening multiple outlets at one go, the company wil gauge the market first with
couple of stores. Only after satisfactory results they will increase the number of outlets in the
region. Also, the performance audit will take more frequently to help in taking decisions faster
rather than procrastinating to avoid such fiasco in future.
From the above incident, it can be noted that even experts of the business who are in the business
for longest period of time can make historical mistakes. The incident not only impacted the
company but also its stakeholders, employees, suppliers, customers and competitors as well. It is
now referred as a case study in management schools and colleges. However, the company
learned from their mistakes and started various management programs for their top-level
employees. So, the people involved in the decision-making process can brush-up their skills
regularly and keep in touch with the happening around the world to avoid this kind of failure in
the future. After this financial catastrophe, many top level executives were asked to step down
and new people joined the leadership positions to provide new direction to the company.
All the chief executives of the company were requested to acquire financial acumen regarding
retail industry. They were guided by professionals to brush-up their financial understanding and
knowledge about the industry. The company set up training program called Communicaid, for
the top 100 executives of the organization from around the world (Limited, 2019). The
communicative global leadership training workshops which were designed while keeping in
mind the international strategic vision of the company. These leaders were selected to guide,
motivate and influence while implementing the global change in the organization. Communicaid
was a part of their ongoing Leadership Development Program called “Lead to Succeed”.

The basic objectives of this workshop were to make the employees aware of the cross-cultural
setting in the company and to make them comfortable in adapting other cultures (Komives and
Wagner, 2016). The program also designed to help in developing realistic strategies and skills for
key leadership roles in major business territories of Marks and Spencer. The training program
also encourages the leaders to adapt to their leadership styles while working in other countries
and also understand global markets from cultural point of view.
Communicaid has been proved to be hugely successful training programs for employees in
leadership roles in recent years. Communicaid was designed by the highly experienced learning
and recruitment managers in order to bring the change in the mindset of the leaders while dealing
in global market. Also, it aimed at changing the employee mindset across all level of employees
across the organization. The program was designed with real life scenarios and example of crisis
to prepare the leaders for similar kind of situations. According to the quarterly review reports the
program is a huge success among the employees. The participants have also admitted the
guidance they have received at the program has helped them taking many important decisions.
Unlike before these decisions were taken confidently and backed by data and strategic analysis
rather than making random choices based on intuitions and assumptions.
Communicaid has started a movement in the corporate world. Many competitors, including the
biggest names in industry, have taken notice of the initiative by Marks and Spencer. The industry
veterans have praised the management of the company for taking such step to create future
global business leaders. They have also urged other organization to take this initiative as a case
study and apply them in their own organizations to reap similar benefit.