Analysis of Leadership, Management, and Operations at Tesco PLC

This report provides a comprehensive analysis of management and operations within Tesco PLC. It begins by defining the roles and characteristics of managers and leaders, highlighting the differences between them and their application in various situational contexts. The report then delves into the key approaches to operations management, emphasizing their importance and value in achieving business objectives. It explores leadership theories, Fayol's principles, and how managers and leaders can improve operational efficiency. Furthermore, the report assesses factors within the business environment that impact operational management, including an analysis of the importance of employee engagement and change management within the context of Tesco PLC. The report uses Tesco PLC as a case study to illustrate the practical application of these concepts.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explain different role or characteristics of manager or leader..............................................1
P2 Role of a leader & the function of a manager apply in different situational contexts............3
M1. Analyse the role of leader or functions of manager through effective application of
theories and concepts...................................................................................................................5
D1. Critically analyse different theories and approaches of leadership in their organizational. .6
P3 Theories and models of approach...........................................................................................6
M2 Analysis of the strength and weakness of various approaches..............................................7
P4 Explanation of the key approaches to operations management..............................................8
P5 Importance and value of operations management..................................................................9
M3: Evaluate how leader and manger can improve efficiency of operational management to
meet business objective..............................................................................................................10
D2: Assessment of operations management and factors that impact business environment.....10
P6 Factors within the business environment that impact upon operational management.........10
M4: Analyse different factors that affect the business environmental......................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management and operations is the internal business practices which help the
organization to enhance their operational functions (Clarke, 2012). This process includes the
transformation of raw material into finished goods and delivered to the end users. It includes
the various activities such as developing strategies which help the manager to take effective
decision in order to achieve their organizational goals & objectives. Tesco Plc selected for the
better understanding of this concepts. It is a UK based Multinational organization which deals
in groceries and general merchandise items. Tesco Plc was founded in 1911 by John Cohlen
and its biggest competitors are Sainsbury's or Asda. This report includes the various topics such
as different characteristic or role of the manager or leader who help the business to manage
their internal activities which further increase the productivity or profitability. Along with this,
it includes the key approaches and what are its importance or value which further helps in
achieving business goals & objectives.
TASK 1
P1. Explain different role or characteristics of manager or leader
Manager or leader of the organization are those individuals who help the business to
improve their productivity or performance to increase their employees’ efficiency. Both the
individuals help the organization through developing effective strategy and then implement the
plan for the successful completion of their task. Manager handle all the operational activities to
increase their productivity or profitability. On the other side, leader provide the required
training which increase the performance of employees in order to achieve their task or
objectives (Czarniawska, 2012).
Role of Leader:
 Main role of the leader is to motivate the employees of Tesco to increase their
efficiency as well as performance.
 Leader is the person who can resolve the internal conflicts or other issues which occur
in the workplace.
 Another role is to provide clear vision to their employees so they can perform according
to the goals.
1

 Leader provide necessary training & development program which increase the
efficiency or effectiveness.
Characteristic of Leader:
 Leader required a decision making capability because it affect the organization at the
time of taking any decision in respect of the company.
 Leader should be confident, honest and integrated because employees follow their
actions and then apply in the organization.
 Leader should have charismatic personality so their followers will listen them properly.
Role of Manager:
 Manager of the company build strategy for the successful outcomes of the organization.
 Manager have to take effective decision and then implement in the operations for the
more production or profitability.
Characteristic of Manager:
 Manager should have positive behaviours which motivate others and they required
critical thinking process
 Manager should have good communication, time management and confidence to handle
the different situation.
 Manager have to be accountable or provide transparency regarding their work which
improve the efficiency of employees as well as organization.
Explain the difference between role or characteristics of leader or manager:
Basis Manager Leader
Role Manager have to build various policies
& strategy which help the Tesco to
achieve their business goals &
objectives. It further helps in decision
making process.
Leader provide required training to
their employees which enhance
their skills as well as efficiency
(Dutta and et.al., 2013). Leader of
the company also recruit people for
the completion of their operational
activities.
Characteristics Manager of the company required
critical thinking process, analytical
Leader have to be honest,
accountable or confident which
2

skills, problem solving, team building,
honesty, integrated and required
charismatic personality. These traits
help the manager to achieve their goals
& objectives. It further increases the
productivity or profitability of the
Tesco.
help the Tesco's employees to
follow their leader and increase
their efficiency as well as
effectiveness.
P2 Role of a leader & the function of a manager apply in different situational contexts
Leaders and managers are considered as one of the most valuable part of any
organisation as they guide efforts of an individual working within the organisation to achieve
the organisational goal along with their individual goal. The managers of Tesco Plc Ltd also
formulate various strategies in order to achieve their organisational goal along with their
individual goal. The main role of a manager is to control and manage its workforce and their
activities in order to create an impact on the organisational success. On the other hand, leaders
are the ones who motivates and influence its team members to achieve the desired goal by
collectively making an effort to achieve it. For example when Tesco Plc Ltd was going through
its organisational reconstruction in which both managers and leaders made efforts in order to
attain the sustainable growth of the company by improving its financial position in the market
and taking competitive advantage over its competitors (Grote, 2012). Following are the
situation which states that the both leader and managers have their significant role in the
achievement of the organisational objective:
In Tesco Plc managers helps the employees to manage its operations in order to provide
better service to its customers and improve the operational efficiency of its business to reduce
the cost of goods and enhance its financial position. Whereas leaders help their team members
to achieve the individual goal along with the organisation goal by motivating them and
influencing them to work together in a team and achieve its task with the given period of time.
When Tesco was unable to reach the target market and the market position of company started
to decline both managers and leaders helped company to regain its position in the market.
It is very important for the company to follow the employee engagement as it helps the
company to attract new talents along with the retention of its previous employees. An in Tesco
Plc Ltd it is important for it to retain its employees as it provide training to its employees in
3

order to work more efficiently and effectively. In this case the main role of a manager is to
manage its workforce and listen to their problems and individual needs before formulating any
strategy or taking any decision for the company. On the other had the leader has a
responsibility to keep the team together and motivate each and every member of the team to
work together collectively and achieve the organisational goal along with the individual goal in
a given specific period of time (Huuskonen, Saltikoff and Holleman, 2014).
Change Management: In order to implement new change within the organisation, Tesco
Plc critically evaluate and analyse the external market to find out the need that what its
customer are demanding and what will be the potential market for it to increase its sales and
generate more revenue. It can also analyse the need of the individual which can be converted in
a potential customer for the company. The main of a manager is to identify the need of its
customers and enhance its market base where the leader's role here is to motivate its team
mates and work together to improve its efficiency and deliver maximum good to its customers.
Fayol's Principles are used in organisation to use to manage organisational procedures
and tasks, which are required to be carrying out effectively for attaining desired goals of
business. It consist 14 principles such as authority
1. Division of work: this is the first principle of Henri Fayol. It focuses upon skill
specified work and profession. As per this principle, specialisation helps in enhancing
the performance and effectivity of employees.
2. Authority and responsibility: This principle says that managers is the person within
the organisation that orders to employees and orders comes responsibilities too.
3. Discipline: this is the third principle of Henri Fayol. This principle is basically focused
upon obedience and core values are mission and vision for conducting the organisation’
4. Unity of command: this principle indicates towards formation of giving orders to
employee. It says that employees are ordered once at a time from one manager. This
maintains the burden of orders and responsibilities upon employees.
5. Subordination of individual interests to the general interest: This is the fifth
principle that remains centralised around focusing upon one organisational goal rather
than individual or personal interest or goal.
4

6. Unity of direction: Stability and focus towards one activity and operation is the main
objective of this principle that helps to remain focus the employees towards
organisational goals.
7. Remuneration: This principle is associated with consistent performance of employee
by providing additional consideration for performing better. Monetary and non-
monetary considerations are the type of remunerations provided to employees with in
organisation.
8. The degree of Centralisation: Effective decision-making process is the key indicator
of a successful organisation. This principle is based upon the same concept of
centralisation of the decision-making and authority of business management to the
executive board.
9. Scalar chain: The phenomena is the main aspect in respect of considering the
organisational change and development. The structure remain build up form top level to
bottom level.
10. Order: This indicates towards hearing the each individual in organisation subject to his
or her right and resources.
11. Equity: this principle focuses towards maintaining the ethical environment without any
kind of discrimination (physical disability, caste, religion).
12. Stability of tenure of personnel: This management principle says that management
and authorities should control the staff turnover by placing right people at right place.
13. Initiative: This principle allows employees and staff members to express their views
and ideas to managers for better development and growth.
14. Esprit de corps and initiative: This is the last principle of management that indicates
towards enhancement of morale and inspiration at workplace within the organisation by
creating an ethical atmosphere and building effective employment base.
They are provide support to conduct several important functions such as planning,
forecasting, organising, commanding, coordinating and controlling.
In context of Tesco plc, they can utilise these principles in order to conduct essential
functions which are explained here.
Planning – This can be described as to establish an effective plan of action for future
circumstances and generate efficient strategic objectives which facilitate to achieve desired
5

goals of business efficiently. For example, managers in Tesco plc are required to determine
future contingencies affecting the organisation in order to shape future operational and strategic
landscape of a company.
Organising – This includes the criterion of organising the staff members of a company
and allocate desired operational tasks for attaining maximum outcomes in business. For
example, managers of Tesco plc should organise effective training to employees and hire well
experienced candidates for job positions in order to secure sufficiently capable workforce in an
organisation for completing targets appropriately.
Commanding – This consist the efforts of managers in organization to provide
instructions to staff for completing various operations in proper way. It includes to inspire the
sub- ordinates to ficus on their roles which facilitate to achieve business goals successfully. For
example, manager in Tesco plc should motivate people by their words and provide methods to
improve performance which impacts positively on outcomes.
Coordinating – The coordinating factor is very important to be established between
managers and sub-ordinates to conduct overall operations in correct manner. For example,
manager of Tesco plc must harmonise the activities & procedures carrying out by organisation
in terms of achieving desired goad and objectives of business.
Controlling – The controlling of activities and procedures are very important to avoid
their completion in wrong direction because it impacts negatively on results. For example, in
context of Tesco plc, manager should monitor overall operational processes on regular basis to
remove threats and facilitate achievement of targets successfully to attain growth of business.
M1. Analyse the role of leader or functions of manager through effective application of
theories and concepts
Manager's role increases the efficiency in the organization where leader also plays
effective role in order to maintain coordination. Manager or leader help the Tesco to increase
their employee’s efficiency as well as performance which further help the business to archive
their organizational goals & objectives. Along with this, there are various role play by the
leader and functions perform by the manager in the Tesco Plc and it is discussed below:
Tesco's manager adopts the situational leadership theory which help the company to
deal with unexpected problem which suddenly occur or affect the organization. Such as
6

wastage of money, time and potential of employee which affect the productivity of the
company as well as it reduces the profit margin.
Manager build strategy and then leader provide guidance or instruction to play their role
which increase the efficiency or effectiveness.
Company also follow the motivation theory which motivate the employees to complete
their task effectively or increase their performance to achieve their business goals & objectives.
After this, leader take feedback and then analyse the performance or further they required
training or not.
D1. Critically analyse different theories and approaches of leadership in their organizational
There are some theories and approaches which help the organization to motivate their
employee and increase their efficiency as well as performance. According to situational theory,
manager of the company behaves and take action as per the situation occur in the operations.
As per contingency theory of leadership, it is not applicable in every situation and it help the
manager to manage their internal as well as external situation and then take according to it.
With the help of this, employees get the flexible working environment which increase the
efficiency. Another theory is relationship theory, which show the bond among the leader or
employees and it help the individual to share their problems with others.
P3 Theories and models of approach
There are various types of leadership approaches and theories which could be used by
business entities in order to enhance productivity of staff members and motivate them to work
hard. Some of them which can be adopted by leaders of Tesco are as follows:
Situational leadership: This leadership style was introduced by Kenneth Blanchard
and Paul Hersey. According to this theory, leaders of all the business entities should adjust
their behaviour according to the situations which are arising within the company in order to
inspire subordinates to work hard. It is an adaptive style of leadership which could be used by
leaders in Tesco for the purpose of motivating staff members to enhance their productivity.
Under this approach, leaders try to change their style of leading according to requirement of
organisation. With the help of it long term goals could be attained as leaders who adopt this
style try to influence subordinates to work productively.
System leadership: This leadership theory was developed by Ian Mac Donald. Under
this approach, leaders create such conditions in which all the subordinates can perform their
7

best. With the help of this type of leadership approach, all the people try to work productively
to their potential and also make sure that personal and organisational goals get achieved. It can
be adopted by leaders in Tesco by using sound principles related to human behaviour to create
organisational strategy, good leadership, social processes and system design. Main objective of
using this type of leadership is to provide equal chance to all the staff members so that their
work quality can be enhanced by motivating them. With the help of this theory ability of
leaders to predict behaviour of staff members get enhanced which guides them to modify their
behaviour according to it.
Contingency leadership: This approach was introduced and developed by Fiedler in
order to guide leaders to work effectively in difficult situations. In order to be the best leader it
is very important to develop the ability to match behaviour to different situations which have a
negative impact on the organisation. According to this theory there is no best way to organise
an enterprise, to lead a team and formulate strategic decisions. The leader which is using this
theory will effectively apply own leadership in negative situation. This could be used in Tesco
by leaders in order to deal with negative situations which may leave adverse effect on the
business operations.
From all the above described theories system leadership is implemented in Tesco as it
guides leaders to create such situations for staff members where they can perform their best and
try to attain organisational goals. With the help of it leaders motivate employees and try to
enhance their work quality.
M2 Analysis of the strength and weakness of various approaches
Contingency Theory: As per this theory, it states that the leadership style followed by
a leader must be changed as per the external and internal situation prevailing within the
organisation. In Tesco Plc it is important for leader to change their leadership style in order to
eliminates the issues existing in it.
Strengths: It is considered as a flexible approach as it can help managers to overcome
the unforeseen situations.
Weaknesses: Due to it complex and costly approach it does not provide solutions to
certain existing issues.
Scientific management theory: As per this theory personnel corporate along with
managers coordinate with each other in order to enhance the operational efficiency of its
8

organisation. Manager use both monetary and non monetary incentives to motivate its
employees.
Strengths: In this methods labours are divided into various categories i.e., skilled
labours and non skilled labours in order to reduce the waste of time on development of skilled
labours.
Weaknesses: It is considered as an expensive method as company has to replace its
older method.
P4 Explanation of the key approaches to operations management
There are several key approaches which are adopted by Tesco Plc in order to improve
its operational efficiency and maximize its productivity to enhance the revenue generation
capacity to increase its financial position in the market. Following are the various approaches
followed:
Lean Manufacturing: It is a methods which is used by an organisation to improve the
efficiency of its operations. and produce the goods more effectively and efficiently. It mainly
focuses on the elimination of the resources which are being wasted during the production
process and increase the productivity by utilizing those resources in more effective and
efficient manner. In Tesco Plc, managers held various training sessions for the newly recruited
employees along with the existing employees to enhance the knowledge and skills of its
employees. Whereas leaders motivate its newly recruited employee and gain their trust in order
to make them work collectively and achieve the organisational goal.
Total Quality Management: It is known as the customer focused process which
mainly focuses on the maximizing of the quality of product or services which are being
provided by the company. This approach helps the managers of the Tesco Plc Ltd to enhance
the quality of the services which they provide in their retail stores. It is important for Tesco to
enhance and maintain its quality of product and services provided at various store in order to
attract the huge customer market to increase its revenue and enhance its financial position. In
this type of approach managers can also set various quality standards to maintain its quality of
product and services provided by them at their retail stores. On the other hand, the leaders can
help its team mates to work collectively to maintain the desired quality standard.
Six Sigma: It is a methodology which mainly focuses on improving and enhancing the
value of its operations. In order to reduce the value of its operations managers simply
9

eliminates the chance due to which it can incur and defect or error. In Tesco Plc manages uses
this approach to reduce the total cost of production by removing any chance due to which it can
incur any error or defects during its production process. This approach requires huge
investment but managers can manage its employees working and to implement this approach in
an appropriate manner which can help company to reduce its cost of product and increase it
profit margin by reducing its overall operating cost. Whereas the leaders must take its team
together towards the same objective of reducing its cost of production and improving its quality
standards.
P5 Importance and value of operations management
Operation management is considered as one of the important part of any business
organisation it is important to manage it operation management. In Tesco Plc Ltd also
managers of the operation department provide value to its manage its resources effectively and
efficiently as well as leaders helps the team mate and work collectively in a team motivate
them to achieve its organisational goal and making it the first priority. Also the company can
use Total quality management approach to improve quality of products provided by setting up a
given quality standards. Manager can formulate various strategies which can help them in the
achievement of the desired goal of an organisation. Following are the various values and
importance of operation management:
Enhance the level of Productivity: It can help the organisation by maximising it level
of production and reducing its cost eliminating unnecessary cost and waste of resources. Tesco
Plc Ltd can enhance its level of production by utilizing its available resources more effectively
and efficiently.
Provides Customized Service: Operation management control and conduct the various
operations of a business, as in Tesco Plc Ltd can uses different approaches in operation
management in order to provide the services which can be customized as per the need of the
consumer at a reasonable price.
Improve Coordination within the management: Operation management is
considered as one of the business practices which are used in order to covert the unfinished
goods to finished good which can be sold in the market to satisfy the need of its customers by
improving the coordination within the organisation between its various departments. In Tesco
Plc it can improve the coordination within different department such purchase department and
10

production department in order to manage the inventory so that its production does not stop due
to the shortage of inventory.
The above given importance and values of the operation management total quality
management approach can be helpful for the company to enhance its quality of products and
increase its profit margin by reducing its cost.
M3: Evaluate how leader and manger can improve efficiency of operational management to
meet business objective
Both managers as well as leaders at Tesco Plc Ltd. work in cohesiveness in order to
ensure that the goals and objectives communicated by the top management are attained in the
predefined by the operational level staff. Also, under the guidance and direction of leader as
well as management of performance among the staff members, the company is able to execute
various strategic decisions in an orderly fashion. The main ingredient here is coordination and
cooperation across all organisational levels of Tesco. This helps the manager as well as the
leader in improving the efficiency of operations so as to attain goals and objectives in a
successful manner.
D2: Assessment of operations management and factors that impact business environment
Business environment is constituted of both internal and external factors. Here, the
external factors includes political, legal, economical, technological that may impact operations
of company. Operations Management tools must be consistent with the nature, size as well as
the external environment of the business. This means that the organisational objectives ought
not clash with operational objective otherwise it could affect the business environment. For
instance, organisational objective of Tesco is to lower per unit cost whereas operational
objective is to improve its production capacity. This would clearly conflict with each other,
thus, hampering the growth of organisation.
P6 Factors within the business environment that impact upon operational management
PESTEL analysis is known as an external analysis which helps the companies to
analyse the various factors which might influence the overall performance of the company.
Tesco Plc Ltd uses this tool to analyse its external factors which can affect its performance.
Following is the PESTLE analysis:
11

Political: Tesco Plc currently operates in more than 12 countries which include Asia
and Europe. It is exposed to various political factors of different countries which can have a
direct impact on the operations of its business. Factors which include Tax rate, impending and
current legislation, unemployment rate, political instability. This factor impact the operations of
the organization which affect the productivity or profitability of the company.
Economic: Economic factor include the cost of labour is considered as one of the
important factors which can have a direct impact on the big supermarkets of UK. There are
various factors which can affect Tesco Plc Ltd which includes prices, profits and costs. So
manager have to take their effective decision which increase the productivity or profitability of
the company.
Social: The trend in the shopping style of consumers are constantly changing over
time. The demand for the services and goods which is related to the consumers’ belief and
attitude have changed. Tesco can avail this opportunity by developing one to one connection
with its potential customers. After all the analysis company have to build strategy which
increase the demand of customers regarding their product.
Technological: With the help of various technological advancements it is easy for
Tesco Plc Ltd to regain the trust of its customers. It also introduced the RFID technology in
order to increase the in-store experience of its customers. Manager of Tesco need to use latest
technology which help them to provide quality product in order to achieve high productivity or
profitability.
Environment: Companies are facing pressure from governments to address various
environmental issues, to address this issue Tesco Plc encourages its customers to shop through
its online store i.e., Tesco.com. Van which are used by Tesco to delivers the products will use
less full as they will be opting the fuel saving routes in addition to this it can also collect the
various unwanted plastic bags and recycle them. Company have to build their strategy
according to the various rules which affect the operations of the company and it further affect
the decision of the company.
Legal: Legal environment does not affect the business as it does not undermine the
various important areas where law changes can affect the performance of any business in order
to achieve its objective. In the year 2016, 17 workers of Tesco Plc has Filed the legal action
against their employers on gender and age discrimination basis. Business have to follow each
12

and every regulation which is mandatory for the company because it will affect the operations
of the business and further affect the productivity or profitability.
M4: Analyse different factors that affect the business environmental
In order to evaluate impact of external factors on the business, PESTEL analysis is
carried out by Tesco. These factors help the company to improve their operations efficiency
and effectiveness, thus, directly impacting the overall sustainability in the market. For instance,
any amendment in regulations practised by Tesco would impact the business either positively
or negatively. Hence, it becomes essential for managers to reckon all the factors while making
strategic decisions in an informed manner.
CONCLUSION
From the above discussion, it has been concluded that management and operations help
the business to perform their duty in order to achieve their goals & objectives. Manager or
leader of the company plays important role through building effective strategy which increase
the productivity or profitability of the company. Moreover, operations management increase
the efficiency and its key approaches increase the productivity. In addition, different leadership
theory increases the employees motivation which further help to achieve their business goals &
objectives.
13

REFERENCES
Books and Journal
Al Shobaki, M. J., Amuna, Y. M. A. and Naser, S. S. A., 2017. Strategic and Operational
Planning As Approach for Crises Management Field Study on UNRWA.
Clarke, S., 2012. Information systems strategic management: an integrated approach.
Routledge.
Czarniawska, B., 2012. Operational risk, translation, and globalization. Contemporary
Economics. 6(2). pp.26-39.
DRURY, C. M., 2013. Management and cost accounting. Springer.
Dutta, D., and et.al., 2013. A new river system modelling tool for sustainable operational
management of water resources. Journal of environmental management. 121. pp.13-
28.
Grote, G., 2012. Safety management in different high-risk domains–all the same?. Safety
Science. 50(10). pp.1983-1992.
Guang Shi, V., and et.al., 2012. Natural resource based green supply chain
management. Supply Chain Management: An International Journal. 17(1). pp.54-67.
Huuskonen, A., Saltikoff, E. and Holleman, I., 2014. The operational weather radar network in
Europe. Bulletin of the American Meteorological Society. 95(6). pp.897-907.
McGeorge, D. and Zou, P. X., 2012. Construction management: new directions. John Wiley &
Sons.
Molina-Azorín, J. F., and et.al., 2015. The effects of quality and environmental management on
competitive advantage: A mixed methods study in the hotel industry. Tourism
Management. 50. pp.41-54.
O'Brien, D.P., and et.al., 2014. The urgent need for clinical, diagnostic, and operational
research for management of Buruli ulcer in Africa. The Lancet infectious diseases.
14(5). pp.435-440.
Rasula, J., Vuksic, V. B. and Stemberger, M. I., 2012. The impact of knowledge management
on organisational performance. Economic and Business Review for Central and South-
Eastern Europe. 14(2). p.147.
S A, P. W. P. and Rica, C., 2016. Forest management.
Shepherd, D. A. and Patzelt, H., 2013. Operational entrepreneurship: How operations
management research can advance entrepreneurship. Production and Operations
Management. 22(6). pp.1416-1422.
14