MG629 Leadership: Tesco's Management & Leadership Evaluation

This report provides an analysis and comparison of leadership and management, emphasizing their contributions to organizational goals, particularly within Tesco plc. It evaluates contemporary management and leadership theories, including contingency theory, transactional leadership, and transformational leadership, highlighting their advantages and disadvantages. The report also examines key performance indicators (KPIs) such as sales, profit, and customer feedback, and discusses the importance of leadership and management in enhancing team effectiveness, organizational culture, and employee engagement. The document is contributed by a student and available on Desklib, a platform offering study tools and resources for students.

Developing leadership
and management skills

Executive summary
This report covers the two most essential areas of the business that is leadership and management
and how these factors directly contributes in attainment of the set goals and objectives. Further
this report aims to do a mere comparison of both these respective areas and how they are
different in terms of factors that are related with the organisation. It also covers the management
issues in the organisation and how these issues need to be dealt with in order to make the
organisation successful. The organisational culture is one of the major factor that directly
contributes in the betterment of the company. Further the importance of effective management
and leadership in the organisation is evaluated with the help of aspects that are related with the
business.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Analysis and comparison of leadership and management..........................................................4
Key performance metrics of organizational sector/market/industry...........................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Leadership is related to the quality of a person which is used by them to influence the
will and behaviour of employees towards the achievement of goals and objectives of the
organisation. Management is related to the process of planning, organising, staffing and
controlling the activities of the employees to achieve the common goals effectively and
efficiently. Both the activities are important for the success of organisation in the market. There
are different types of activities and business functions are present in the organisation such as
production, marketing, selling and many more. These departments and functions require
coordination between then for the effective performance of their roles and management of the
organisation perform this function and enables them to do so (Adams, 2018). Leadership’s plays
an important role ensure the effectiveness in the workforce of the organisation. Work force is one
of the most important resources for any organisation and it required proper motivation and
mutual support to perform their functions effectively. The duty to provide motivation towards the
work in the organisation are played by the leaders or the managers of the organisation. The
organisation which is chosen here to demonstrate this report is the Tesco plc. This report
provides brief discussion of executive summary. It also states the analyses and comparison of
leadership and management and also a key performance matrices of organisation. It included
tesco;s leadership and management performance.
About the company
Tesco plc is British multinational organisation which deals in grocery and other retail product.
The important decision related to the business of the organisation are taken from their
headquarter which is located in Welwyn garden city, England.
TASK
Analysis and comparison of leadership and management
Analyses of contemporary management theory
The experts of management divided the management in two parts which is classical management
theory and contemporary management theory. Both the theories are equally important for the
success of organisation and it depend upon the nature size and ownership of the company that
which management theory is used by the executives. Here the management of Used contingency

theory to make the process of their business effective and the brief discussion related to the
contingency theory are given below:contingency theory of management
The approach of contingent management is based on the philosophy that the effectiveness
of the management are contingent upon the interrelation of management roles and specific
situations. The general meaning of this theory is that all the success and failure of the
organisation are depend upon their capacity of the organisation to deal with the situation arises in
the future (Al Thani, and et. al., 2020). This theory of management enables the management of
the organisation to make the provisions today for the problems and threats arises in the future.
The organisation which uses this theory in their business has to develop effective research and
marketing frame work in their organisation. The main work of this department is to analyse
various threats and opportunities from the environment and also their impact on the organisation
in near future. After the analysation of these threats department is required to develop different
strategies and policies and make ensure the implementation of these policies and strategies in the
organisation.
Advantages of the contingent theory
There are many advantage of this theory for those organisation which uses this approach
because it support the management of organisations in worst situation and protect the company
from serious loss (Burrell, 2018). The brief discussion related to the same are given below.
 One of the most important advantage of this management approach is that it provides
realistic and clear view of the management.
 This approach of the management makes the mangers of the organisation situation
oriented in place of stereo type.
 It promotes the innovation and creativity in the organisation.
Disadvantages of contingent theory
It is not possible that that any theory has only positive aspect or advantage, it also have
some disadvantage and negative impact on the management of organisation and the brief
discussion related to the same are given below:
 One of the greatest disadvantage of this approach is that it does not have any theoretical
base.
 It does not provide course of action.

Evaluating contemporary leadership theory
Leadership is an ability of a managers which is used by the to influence the behaviour
and attitude of the employees towards the achievement of organisational goals and objectives
(Deters, 2017). Managers acts as role model for their employees because employees perform
those actions in the organisation which they see to perform their managers and it is the duty of
the managers to acts ethically and professionally in the organisation because of the positive
culture in the organisation.Leadership theory of Tesco
One of the most important mission of the Tesco is to established their stores of the company
in all over the world. This objective of the company not only requires capital and management
but also requires effective leadership in the organisation because it motivates the employees to
achieve the expansion goals of the organisation (Gautam, 2019). The management of Tesco uses
many leadership theories and concepts in the organisation such as transactional leadership
theory, transformational leadership theory and contingency theory of leadership. The brief
discussion related to these theories are given below:
 Transactional theory:- This theory has three elements such as management by exception,
management by passive and contingency reward. The exception theory are applied by
managers when they respect and trust in the employees and when there fails to perform
their duty it applied passive theory Tupesis and et. al., 2021).
 Contingency theory: - This theory is related to the factors of external environment which
influence the approach of leadership in different aspects (Gopee and Galloway, 2017).
This theory concluded that not any leadership skill is suitable and management skills and
abilities are superior.
Comparison of leadership and management
 The simple difference is proved from the meaning such as management is a process of
managing people in the organisation and the leadership is related to lead the people and
influence their behaviour.
 The duty of the leadership is performed by the managers in the organisation.
 The management only follows formal style and the leadership can be formal or
information depend upon the situation.

 Management is wider term because leadership is also a part of the management in the
organisation.
Key performance metrics of organizational sector/market/industry
Key performance indicators related to those indicators which helps the organisation to evaluate
their performance and also indicates the future growth of the organisation on the basis of
previous data and trends (Hickman and Akdere, 2018). There are different types of indicators are
present in the market it depends upon the organisation’s management that which indicator they
select for their organisation and this decision are taken by the management of organisation. The
management of Tesco and developed many key performance indicators from years ago but now
the company used these indicators in their organisation.
 Sales: - One of the most important and useful indicator which the management of Tesco
use in their organisation to evaluate the performance of the organisation. The managers of
the organisation conduct analyse deep analyses of the previous sales record and compare
them from the current sale. This indicator indicates the financial position of the business.
 Profit: - The profit of the organisation are also a good indicator and performance
evaluator for the organisation. The profits of the organisation play an important role for
the evaluation of yearly performance of the company.
 Operating cash flow: - The cash flow is a statement which Indicate the flow of cash in the
organisation. The management of Tesco uses this indicator and evaluate all the income
and expenses of cash and evaluate the performance of the organisation.
 Customer recommend us and come back time and again :- One of the most attractive and
useful method for evaluating the performance of the company is customer feedback. The
management of Tesco has developed effective feedback framework in their organisation
in which the customers can provide their suggestions.
Importance leadership and management performance
Leadership and management plays an important role in the organisation because it is the
basic need of the business and their employees that they are managed properly. The management
of the organisation helps the top level managers to effectively manage all the activities of the
business so that the efficiency can be achieved in the organisation which helps to perform in the
market. The contingency leadership and management of Tesco improves many aspect of the

organisation so that the business can achieve success. The brief discussion related to the
importance of leadership and management performance are given below:
Team effectiveness
The management and leadership helps the organisation to develop effective teams in the
company. The team development plays a important role in the organisation because all the task
and project are completed by the team in the organisation (Jamieson and Donald, 2020). One of
the most important advantage of the team is that it increases the use of creativity and innovation
in the organisation because team includes many members which has different and unique ideas
and suggestion on any topic. It is the duty of the managers to listen the suggestions and ideas of
all the employees and select the best possible suggestion for the organisation. Managers plays a
role of leader in team and provide those considerable resources and motivation which increases
their effectiveness. The managers of Tesco helps develops many teams in the organisation for the
completion of project and task given by the management of the organisation. The selection of
member for the team are based on the performance of the employees in the organisation and also
their confidence (Mumford and Higgs, C.A. eds., 2019). These managers provided all the key
material to the team member so that all the work are completed on time and with great accuracy.
The role of the managers are not only limited to the completion of task but also evaluate the
performance of each member separately so that the good performers are rewarded and those
employees can further keep working hard.Organisational Culture- This refers to the collection of expectations, values and practices which
is followed by the employees in the organisation. The actions that are taken by the team
members working in the organisation is one of the major component that constitutes to the
effective organisational culture in the business (Kerrin and et. al.,2017). In context of Tesco, they
follow an organisational culture where they promote a usage of good practices so that every
employee working in the organisation can ensure that they are respected in the company.Employee engagement- This is one of the human resource concept where the level of dedication
and enthusiasm that the worker has towards the job is described. An employee who is well
engaged in the activities is more likely to perform well as they have dedicated their time and
efforts in the business so that the organisation can attain their goals and objectives. In context of
Tesco, they have a good employee engagement program where the employees get used to the
company’s policies and procedure and further they work accordingly in the business. This

basically defines the relationship that the employees have with the organisation and the
relationship that the business have with the organisation. Engaged employees that are working in
the Tesco feels that their efforts are respected and they are very likely to bring a positive change
in the company.Organisational results- This comprises of the performance of the company throughout the year
and how that performance has helped the business in attaining its end goals. Some of the end
goals are often associated with the profitability factor of the company and how it effects the way
in which the business operates in the environment (Moussa and Li, 2021).

CONCLUSION
It is concluded from this report that both management and leadership is important for the
organisation. The employees of the organisation provided motivation in organisation so that the
goals and objectives of the organisation are achieved confidently. This function is provided by
the managers by many ways such as rewards, recognition, appraisal, promotion and many more.
These activities by the leaders increases the loyalty of employees towards the organisation. This
report concludes the brief discussion related to theory of management used by the Tesco in their
organisation. The contingency theory of management helps the organisation to make the
measures for the future uncertainties. This help the company to make sure the growth in the
market. The most important and recent advantage of this theory is the extra ordinary
performance of Tesco in covid pandemic. The management of company focuses on the online
shopping business from past years which benefits the company in these hard time. This report
concluded different key performance indicators which the management of Tesco used in their
organisation to evaluate the performance of the organisation in regular basis. This evluation is
important because it enables the organisation to improve their weakness and also make sure the
correction of mistake at right time. This report also concludes various leadership theories used by
the management of Tesco such as transactional theory and contingency theory. All the activities
related to the leadership are performed by the managers of the organisation. These manager used
many theories which enables the behaviour of employees towards the work and also enables
them to work in the organisation with the great strength.

REFERENCES
Books and Journals
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Malaya Press.
Al Thani, and et. al., 2020. The impact of strategic leadership on crisis
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Burrell, D.N., 2018. Exploring leadership coaching as a tool to improve the people management
skills of information technology and cybersecurity project managers. HOLISTICA–
Journal of Business and Public Administration, 9(2), pp.107-126.
Deters, J., 2017. Global leadership talent management: Successful selection of global leadership
talents as an integrated process. Emerald Group Publishing.
Gautam, P.K., 2019. Leadership and Management Theories in Indic Traditions. Journal of
Defence Studies, 13(1), pp.33-49.
Gopee, N. and Galloway, J., 2017. Leadership and management in healthcare. Sage.
Hickman, L. and Akdere, M., 2018. Effective leadership development in information technology:
Building transformational and emergent leaders. Industrial and Commercial Training.
Jamieson, M. and Donald, J., 2020. Building the engineering mindset: Developing leadership and
management competencies in the engineering curriculum. Proceedings of the Canadian
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Kerrin, M., and et. al.,2017. Entrepreneurship management skills requirements in an emerging
economy: A South African outlook. The Southern African Journal of Entrepreneurship
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Moussa, A. and Li, Y., 2021, July. Development of Leadership and Communication Skills in an
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Mumford, M.D. and Higgs, C.A. eds., 2019. Leader thinking skills: Capacities for contemporary
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Tupesis, J.P., and et. al., 2021. Leadership matters: needs assessment and framework for the
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