MG629 Leadership & Management Skills: Tesco Evaluation Report

This report provides a comprehensive analysis and evaluation of leadership and management skills within Tesco, a multinational retailer based in the UK. It begins by comparing and contrasting leadership and management, highlighting key differences in their approaches and emphasis. The report then explores contemporary leadership theories such as transformational, transactional, and charismatic leadership, alongside management theories like human relations and contingency management. Key performance metrics for the organization, including benchmarking, net profit margin, and gross margin, are discussed in relation to their impact on the industry and market. The report further examines Tesco's organizational leadership and management performance, focusing on leadership styles such as autocratic, democratic, and laissez-faire, and their effectiveness in driving organizational success. The analysis concludes that Tesco benefits from a contingency style of leadership and management due to its scale and international operations.

Developing Leadership and
Management Skills

EXECUTIVE SUMMARY
Management is the control of a group which helps an organization to set entities which
are helpful for the accomplishment of the goals. It can be said as the leadership which refers to
the individual 's ability that can influence, motivate and enable others for the contribution of the
organization's success with the help of influencing and inspiration. There are major differences
between the leaders and managers however they have the similar task of managing the
organization. This business is able to influence the organization and be able to be effective in the
organization inspiration and separation of the leaders from the managers.

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Analysation of comparison of leadership and management........................................................4
Business key performance metrics for the organization sector/ industry and market:................6
Organizational leadership and management performance...........................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The development of the leadership skills is considered to be the boost which an
organization provides to the employees which increases the organization's ability to deal with the
gap's organization. The development of the management skills is useful for understanding the
position which acts as the effective leader and problem solving solutions which are helpful for
the business in impacting the job and performance opportunities. Management and leadership are
both very similar concepts but have consists of differences that means management controls the
group set of entities which is useful for the business to accomplish a goal. However, leadership
refers to an individual's ability which helps in influencing, motivating and enabling others to
contribute towards the organizational success. In this project the chosen organization is Tesco
which is multinational retailer based in UK. It is the third largest retailer in the world as per the
total revenue. This organization deals with different types of products, food, clothes, groceries ,
etc. This project will analyse and compare the leadership and management of the organization. In
this project the key performance metric of organizational sector which effects the market in an
industry of the organization. This project will help in understanding the contemporary theories
and models of management and leadership. This project will also help in understanding the
demonstration of the effective leadership skills. In this project an analysation of the significance
and impact of the leadership in relation to the business performance.
MAIN BODY
Analysation of comparison of leadership and management
The difference between the leadership and management are,
Basis for
comparison
Leadership Management
Meaning Leadership is considered to be the
skill or quality which is used for
influencing people for the attaining
the objectives which help the team,
group or the organization in
reaching its goals.
Management is the discipline which
helps the business in the management
of the art or skill which is helpful for
getting the work done through others.
Basis In leadership the followers listen to The management has the power of

the leaders on the basis of trust
(Bäcklander, 2019).
control over the employees which
influences them to listen to the
management.
Emphasis The leaders give more emphasis on
the inspiring people so that they can
be developed accordingly.
Management has their emphasis over
the work activities whether they are
done accordingly.
Power They are able to show their power
through influencing other people.
The managers have the power of
because of their position.
Strategy As a leader the main strategy which
is to be followed by a leader is to be
proactive.
It can be said the management act only
when they react to a certain problem or
issues in the organization.
Perspective The leadership is considered to be
having great perspective as they are
very good at foreseeing the future.
Management on the other hand has
short term range of perspective which
helps them tackle the problems.
The leadership and management of an organization can be effected for by the following
contemporary theories of leadership.
Transformational leadership :
It is that type of theory which encourages an inspiration and motivation in employees for
the creating innovative changes in the organization for their success. This theory suggests that
the management of the organization can accomplish success by setting an example of the
changes which is needed in the executive level such that it can be understood and implemented at
the work place (Fourie and Höhne, 2019). In this kind of leadership the leaders inspire and
motivate their workforce without the micromanagement of the trust which is gained for taking
authority over the decision-making in the assigned jobs. The management of this organization
provides the employees more room to be creative and look forward to future for finding new
solutions to the new and old problem.
Transactional leadership :
It is the type of leadership which is also known as the managerial leadership which
focuses on the role of supervising, organizing and improving the group's performance. The

leaders and management which utilizes this method for the organization is considered to be the
focus which allows the role of supervision, organization and group performance (Donkor and
Zhou, 2019). The leaders who implemented this style for focusing on the specific tasks are using
the methods of rewards and punishments for motivating the employees.
Charismatic leadership :
The charismatic leadership theory is considered to be that theory which is trait based in
which the leaders act as the visionary for driving the convictions and the motivation of their
followers to the work towards the common vision. In this theory the leader utilizes its common
vision and charm for the persuasiveness. For this leadership the leader use charismatic qualities
for inspiring others it can be said as the inspirational and motivational aspect which leads the
organization in unity of the engagement. For this theory to be effective the leaders needs to be
very influential by nature and must require exceptional leadership skills.
The different management theory are,
Human relations theory :
The human relations theory of management of the organization psychological from, in
this method the organization focuses on the management of the employee productivity and
motivation which helps the business in increasing the positive social bonds of the workplace. It
also helps the business in the acknowledgement of the worker which have unique individual
skills and experience (Germain, 2017). This theory of management suggests that the employees
need to motivated in order to understand the importance and effectiveness of the organization.
Contingency management theory :
It is the theory which is situational theory that hold the group effectiveness depending on
the appropriate match present between the manager's style and the demand of the situation. It can
also be said that in an effective management the contingency is considered to be the match
making efforts that help in the managers style towards the right establishment of the
organization. This theory of management was successful in consisting of three elements which
are been considered to be essential for the leadership styles, situational variables and the
relationship between styles and situation.

Business key performance metrics for the organization sector/ industry and market:
Metrics in the performances are used for measuring the behaviour, performance and
activities of the organization. Metrics measures the data within a range, which allows the basis
to form the achievement supported with the overall business goal.
Benchmarking is the mechanism for measuring the process ,results and for improving the
performance of the organization (Grandy and Sliwa, 2017). Benchmarking metrics is used to
transform the human resources and the management practices which influences the organization
success. Tesco is using the benchmarking metrics in order to compare the organization with the
other competitors. For instance, the company is comparing the cost per hire with the similar
organization for evaluating the results. Benchmarking also protects the programs that performs
well. It creates the momentum for the organizational change. As Tesco wants to recruit the new
employee bonus plan the data of the benchmarking will help in providing the bonus cases and
also improves in recruitment and in retention.
Best practice benchmarking is used in the company for evaluating the various aspects in
relation to the best practices companies processes, within the per group. By using the best
practice and field benchmarking engagement, Tesco identifies the best firm in the industry,
where similar products are manufactured and comparing the results with one another. Further
more it helps in improving the internal operations, understanding the workings, adopting and
improving the competitors practices of the company which reduces the cost by increasing the
efficiency.
Net profit margin and gross margin as the business metrics : The net profit margin helps in
indicating how effectively the enterprise is generating the revenue. These metrics helps Tesco
company in predicting the long term business growth and analysing whether the income of the
company exceeds the cost of the proceeding's data (Guhr, Lebek and Breitner, 2019). This
metrics further helps the company in analysing the pure profit they have made. Improvement in
this margin can be done by increasing the revenue of the company and deducting the production
cost. This margin will help Tesco In analysing and making its way for earning the profit.
Organizational leadership and management performance
Tesco is a customer oriented business which offers the products which are value for
money for its customers for delivery of high quality services. This is considered to be the very
helpful for the business in keeping the business at the top of its game and also be able to be

number one retailer in the market. This is the reason why the company requires skilled staff
which are essential for the business in all the roles for the development of the leadership qualities
for the people throughout the organization. Thus, this helps the business in the administration of
the customer assistant for the broad of directors. The leadership at Tesco is about influencing,
inspiring and motivating of the employees (Jian, 201). This is done by the organization by
coaching the employees for treating them with respect and being challenging towards the
organizational performance. In this organization the leaders seek to create a strong team which
help the people in committing an organization changes which is helpful for the writers in the
categorization of the different leadership styles. From the discussed styles this organization is
seen to prefer the contingency styles of leadership and management. This is because of the scale
of the organization which forces it's to be versatile towards the situation which the organization
might have to face in its international operations. These are the following leadership style which
helps Tesco that helps the business in developing a strong understanding for the organization.
Autocratic leadership style :
This is that leadership style which suggests the leaders to follow the “Do as I say” it can
be said that autocratic leader is the person who influences other to follow instruction that are
given for the accomplishment of task (Khan, 2017). It use the control and command approach
which helps the leadership style to be the best and most appropriate for the use in the certain
situation. This is the reason this organization does not tend to utilize this leadership style for the
management of its organization.
Democratic leadership style :
It is the leadership style which is said to allow the employees to act as necessary in the
organization. This leadership style provides the employees with responsibilities which they can
take to be effective in the creativity of the business. This method is also very helpful for the
creation of growth in the employee development. The democratic leadership is considered to b
the style which helps the people to do what they want from the business to be done. Tesco
utilizes this leadership style in its organization in the areas in which it believes that the
employees need to have growth in the organization operations.
Laissez-faire :
It is the type of leadership style also use by Tesco which is said to be the opposite of the
end of the spectrum from autocratic. There are not many differences in the autocratic leader and

the laissez-faire leader (Khan, 2017). The autocratic leader has been seen to stand very strict for
the employee to make sure that they are following the organizational operations but the laissez-
faire leader is very firm allowing the employee to swim with the current meaning going with the
flow. This leader develops strong trust in the employees and is able to manage the organizational
performance with the help of proper influence in the organization.
Thus, it can be said that autocratic and authoritarian style of leadership is characterized as
the philosophical leadership which allows the organization in the staff to help the organization in
the providing the clear direction and value input to their teams. However, Tesco has realized that
autocratic approach is considered to very appropriate for certain situations in this organization.
This approach is considered to be very valuable when the business is facing some kind of crisis
that creates an urgency in the problem (Klonek, Gerpott and Parker, 2020). This is considered the
requirement which is an immediate response to the medium-sized Tesco stores. In the
Democratic style of leadership this organization allows the low level managers to make most of
the decisions which is helpful for the business in the operational decisions. In this organization
there are certain leadership approaches which are reserved to the financial decision-making. The
managers need to understand the importance of the adopting this style as it helps the business
and its subordinates in decision-making. Tesco also at other end of the spectrum has been able to
develop autocratic leadership style into the Laissez-faire style in certain areas. This is hands off
approach which basically is development of trust in the team that can take appropriate decisions
for the actions which are broadly agreed. In this style trust is very essential as the managers
which have good knowledge and experience are able to understand the needs of the department
for the business.
CONCLUSION
With the help of this project it can be concluded that Tesco follows a combination of
Autocratic, democratic and Laissez-faire leadership styles for their business which allows them
to develop effectiveness in the organization. This project has helped in understanding the critical
analysation of the evaluated contemporary theories and models for the management of the
leadership. This project is considered to be the development of a demonstrative effects which
helps the leaders to develop skills. In this project the analysation of the significance and impact
of leadership performance in relation to the overall business performance has been discussed.
With the help of this project the leadership standards of the organization with the application of

different types of leadership theories has been discussed. The business performance metrics
shows the measurable value for the organisations progress and achieving the business goals.
Metrics studied are benchmarking which is best in filed and class also the net profit margin
metric. These metrics helps Tesco in transforming the human resource for organisational success
and the benchmarking data helps in calculating the per hiring cost which further assist Tesco in
evaluating the organisation success. Performance metrics helps the company in indicting the
goal to be achieved in the planned time frame. The organisational leadership and the
performance in the management system affects the culture of the organization. This is used to
analyse the data and helps in improving the performance of the company. Leadership in the
company is directly influenced with the success of Tesco . As it helps in determining the values,
culture, change tolerance furthermore motivating the employees which shapes the strategies of
the organisation including their differences.

REFERENCES
Books and Journals
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Guhr, N., Lebek, B. and Breitner, M.H., 2019. The impact of leadership on employees' intended
information security behaviour: An examination of the full‐range leadership theory.
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hermeneutic leadership theory. Communication Theory. 29(1). pp.86-106.
Khan, N., 2017. Adaptive or transactional leadership in current higher education: A brief
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Klonek, F. E., Gerpott, F. H. and Parker, S. K., 2020. A conceptual replication of ambidextrous
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Online
How a Transactional Leadership Style Works, 2020[Online]. Available through:
<https://www.verywellmind.com/what-is-transactional-leadership-2795317>