Impact of Leadership and Management on Tesco's Business

This report delves into the critical roles of leadership and management within Tesco, a major retail organization. It begins by differentiating between leaders and managers, highlighting their distinct responsibilities and contributions to the company's success. The report then explores various leadership and management theories, including contingency theory, situational leadership, and transformational theory, and analyzes their practical applications within Tesco's operational context. Specific examples are provided to illustrate how these theories can be employed to address challenges and drive positive outcomes. The report emphasizes the importance of adapting leadership styles to suit different situations and the need for leaders to inspire and motivate their teams to achieve business objectives effectively and efficiently. The conclusion reiterates the value of both leaders and managers in fostering organizational growth and achieving strategic goals, supported by references to relevant literature.

Impact of Leadership
and Management on
Operations and
Business environment

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Difference between manager and leader..................................................................................................3
Management and leadership theories.......................................................................................................5
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................8

INTRODUCTION
The business environment consists of the internal and factors which influences the
decision making and working of the organization. The management and leadership play an
essential role in the working of company as they are critical for the success of the business. The
leadership is the process which refers to ability of person to motivate, influence and enable other
people to contribute in the success of the organization. The manager and leader both work with
the vision as to what is to be achieved and communicate it to others and evolve various strategies
in order to realize the vision (Harrison, 2020). The organization chosen for this report is Tesco,
the company which deals in groceries and general merchandise. It was established in the year
1919 and works in retail industry. This report is based on article wherein the difference between
leader and manager and application of various management and leadership theory on different
situations.
MAIN BODY
Difference between manager and leader
The leaders and managers are one of the greatest assets of the company and Tesco has
been successful in expanding its operations in different countries only with the help of strategies
of leaders and managers. Tesco is the retail based organization which deals in various products
and offers it to the population of UK and other countries. The managers and leaders in
organization have their own talent and skill set and their roles and responsibilities in the
company vary from each other. The organization like Tesco, the role and functions of leaders
and managers vary from each other and these help the business to grow and make the consumers
and workforce happy and satisfied by getting associated with the organization (Flores-Rodríguez,
Sánchez-Gutiérrez and Pelayo-Maciel, 2018). The difference between the two are narrated
thereunder-
Basis Leader Manager
Definition The leader is the person who
mainly motivates the workforce of
The manager is the one who is
entrusted with the work to manage

company so that they can move on
to take the right path. The
employees are motivated in order to
enhance the productivity and
performance of the employees. The
term leadership is the skills which
involves leading the company and
the employees so that the objectives
are achieved smoothly.
the organization in every situation. It
shows right path to the employees to
walk n and also helps the business to
achieving the objectives and goals of
the company.
Work It provides the direction to staff by
creation of vision and
communicates it. It encourages the
employees to reach the vision
without efforts (Pidgeon, 2017).
It formulates the structure of
company and delegates the
responsibilities and authority to the
workforce.
Authority The leader has the informal
authority and is given to it by virtue
of its personal qualities.
The manager has the formal authority
which is provided to it because of its
positional role.
The difference between the manager and leader lies in conception which is hold in the
minds as the manager embraces the process; instinctively tries to solve problems and seek
control and stability even before the significance of the problem is understood fully while in
contrast, the leader tolerate the lack of structure and chaos and have the willingness to delay the
closure so that it can understand the issue fully. The organization like Tesco requires both leader
and manager in order to succeed as they both work in their own space and have different ways to
make the work done. It is well said that leadership is all about inspiring others while
management is only concern with planning ad in order to make the company successful, it is
important that management plans, control, organize and coordinate with employees while the
leaders inspires and motivate all to perform with their fullest ability. Tesco has employed
talented, skilled and knowledgeable leaders and manager and both have different style and way
of working but their ultimate and common aim is to achieve the business objectives.

Management and leadership theories
There are many theories relating to leadership which must be opted by the leaders in
Tesco so that they can stay on top of the game. One such theory is contingency theory which
proposes that no style of leadership is applicable in every situation rather the leader must
recognize that there are many variables which influence the particular situation and leader has to
choose the right action by taking into account the variables. The leader in Tesco must strike the
balance between the needs, behavior and context. The best leader does not have right traits but
also has ability to assess needs of team, analyze situation and then act in accordance with it
(Crosby and Bryson, 2018). For instance, if Tesco is planning to implement the change in the
way its stores are operated in UK due to heavy competition in the retail industry, the leader in the
organization can adopt this theory and make the members understand the seriousness of the
situation and why this change is required so that the team can work with that vision set in the
mind. The role of manager shall be to plan the activities in order to implement the change while
the leader will provide direction to go as per the plan set by leader. The main reason that this
theory is being adopted in this situation is its strength that the leaders understand the situation
and then adopt the style of leadership. Similarly, in this situation, the leader will understand the
need to change the operation of store in Tesco so it can make its team understand the need of
change and then lead the team in such a way and direction which can help the organization in
implementing it so that it can take the competitive edge over others. But the weakness of this
theory is that it may be effective in one situation and ineffective in other.
Another theory is situational leadership which emphasizes or stresses upon importance
of the situational variable and do not consider one person’s style of leadership as better than
others. It is mainly the combination of two factors which the leaders of Tesco must take into
consideration before applying this theory which includes the style of leadership and maturity
level of its followers. As per this theory, every situation demands varied leadership style and the
decision making. The leader in Tesco has to act by making the judgment of situation which it is
facing. It evaluates a situation and circumstances and the people involved in it and then choose
the right style of leadership (Giddens, 2018). For instance, when the scandal of Tesco was
highlighted in the market in the year 2014, there was the negative working environment at the
workplace of Tesco so the leaders in the company used this theory and make the understanding
of both situation and people associated with it and then took the action. This theory helps in

making evaluation of situation so that the right style is adopted in order to motivate the
employees so that positive working environment is created again. The role of manager will be to
change its style of working and provide the employees with such work and task that can motivate
them while the leader will motivate the workforce and encourage them to work with full
potential and ability. This theory is flexible is nature which is its strength as it recognizes the
need of flexibility as does no insist in following set of rules rather it creates such environment
wherein the employees are motivated to come ahead and share so that each can find the success.
But the disadvantage of this theory is that it focuses on immediate need and not long term needs
as it focuses on meeting the exact need at the particular moment.
Next is transformational theory which focuses on relationship between the leader and its
followers. It talks about the type of leader who must be charismatic and inspirational so that it
can encourage the team in order to transform and become best at the task. The leaders who
follow this theory are motivated typically by their ability to showcase their team about the
significance of task and get them involved in performing the task. They not only focus on
performance of team but also focus on performance of individual team member so that it can
push every member to reach their potential (Semedo, Coelho and Ribeiro, 2017). For example,
when there is conflict between the team members due to clashes in opinion, the leader in Tesco
can adopt this style as its biggest strength is that it helps in reducing the turnover cost as it
focuses on engaging the employees so that the turnover rate is lowered. The reason behind the
success of Tesco is that it has loyal employees who are retained in organization for longer time
as the leader makes them engaged in working. But its biggest weakness is that it requires
continuous loop in feedback and it takes communication channel to maintain the feedback and
the moment it is lost, the employees may feel left out which can result in losing the commitment
towards the vision. The role of manager will be to plan such policies which can help in reducing
the conflict level while the leader will try to reconcile between the employees and motivate them
at individual level to give their best.

CONCLUSION
It is concluded from this report that the manager and leaders are the valuable asset of the
company and they both plays different but important role in taking the organization forward. The
manager manages the work and delegates its authority and responsibility while the leader
provides roadmap to work and encourages the team to work with their full potential. There are
different styles of leadership and management which may be used by Tesco such as contingency,
transformational and situational which can help in managing and leading the employees so that
business objectives are achieved effectively and efficiently.

REFERENCES
Books and Journals
Crosby, B.C. and Bryson, J.M., 2018. Why leadership of public leadership research matters: and
what to do about it. Public Management Review. 20(9). pp.1265-1286.
Flores-Rodríguez, C.R., Sánchez-Gutiérrez, J. and Pelayo-Maciel, J., 2018, July. Leadership and
Management Theories and Bridging the Gap between these Theories-A Literature
Review. In Competition Forum (Vol. 16, No. 2, pp. 83-89). American Society for
Competitiveness.
Giddens, J., 2018. Transformational leadership: What every nursing dean should know. Journal
of Professional Nursing. 34(2). pp.117-121.
Harrison, C., 2020. Making Sense of Leadership: A Critical Insight into Leadership and
Management Research.
Pidgeon, K., 2017. The keys for success: Leadership core competencies. Journal of Trauma
Nursing| JTN. 24(6). pp.338-341.
Semedo, A.S.D., Coelho, A.F.M. and Ribeiro, N.M.P., 2017. Authentic leadership and creativity:
the mediating role of happiness. International Journal of Organizational Analysis.