TESCO: Leadership and Management, Organizational Structure, Diversity

This report provides a comprehensive analysis of leadership and management practices within TESCO, a major UK supermarket chain. It examines various management styles, including authoritative, democratic, and affiliative approaches, and different leadership styles like autocratic, transformational, and transactional. The report delves into TESCO's hierarchical organizational structure, highlighting the roles of key figures such as the CEO, Vice Presidents, and the Board of Directors. Furthermore, it explores the legal requirements and benefits of promoting equal opportunities and diversity in the workplace, emphasizing their impact on employee motivation, brand image, and innovation. The analysis underscores the importance of these elements in achieving business objectives and enhancing operational efficiency within the company. The report concludes by summarizing the key findings and emphasizing the importance of effective leadership and management in TESCO's success.

MANAGING PEOPLE IN
ORGANIZATIONS

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Management & leadership styles and their utilization in company.............................................2
Organizational structure analyses................................................................................................4
Legal requirement and benefits of equal & diversity chances at workplace................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In recent time, managing people in companies is quite difficult for management they use
many approaches to retain staff and enhance their motivational level. The current study is based
on TESCO which is one of the biggest supermarket chains in UK. This report explains varied
leadership & management styles and also describes their uses in business. It will analyze
organizational structure of company and clarify legal requirement along with benefits of
diversity as well as equal opportunity at workplace.
MAIN BODY
Management & leadership styles and their utilization in company
In order to manage varied activities in business manager had to perform really very hard,
they need to choice the best management styles and then use according to situation. Management
is set of principles related to function of organizing, controlling, planning and directing and
application of these norms in harnessing physical, human financial and information resources
effectively to achieve organizational aims. There are different types of management styles are
available that can be used by manager according to condition in TESCO (6 Management Styles
and When Best to Use Them, 2020).
Authoritative management style-
It is one of the best management style manager can use in TESCO to organize and
manage its business practices as well as functions (Yeh and Hsieh, 2017). It make person able to
take effective decision and handle current situation. With this style manager sets clear vision of
firm and makes it clear to workers as well. It caters clear direction towards achieving and
accomplishing that vision. It allow manager to motivates and inspire their employees by using
persuasion & offering feedback on their performance on duty.
Democratic-
It is often touted as one of the most effective out of all management styles, this includes
managers reaching decisions with input of staff but being accountable for taking final judgment

(Dyczkowska and Dyczkowski, 2018). It is quite beneficial for business success and growth
more than other firms operating in same sector. Collaborative, consultative and participative
styles are considered as variations of democratic management style. In context of business,
manager with this style encourage applicants to take part in decision making procedure and also
inspire them to share their opinion regarding organizational progress.
Affiliative management style-
Along with the above management styles, it is also beneficial for manager in TESCO.
This is individual come first style, meaning that workers are seen as more essential than their
functions (Chumba and Mutinda, 2017). It aimed at developing a harmonious relationship at
workplace, especially between staff and management and also among managers. With this style
manager in company puts their team members first and task that needs to be completed second.
As compare to autocratic leadership style, affiliative management style is better because it makes
authority able to takes employee’s opinion and priorities their needs.
Range of Leadership styles and its uses in business-
Autocratic-
This style is inverse of democratic leadership, according to autocratic form leaders makes
decision while working in TESCO without taking input from their workers or anyone who
reports to them. Other members are neither considered nor discussed prior to a direction and are
expected to follow to the judgment at time and pace stipulated by leader. In context of firms,
leader with autocratic leadership style usually make their choices based on decision and ideas
and rarely accept opinion from followers (Goren, 2018). As compare to transformational, this
style is better because it cater for quick decision making that is not possible with other styles for
leaders.
Transformational-
This style is always improving and transforming upon TESCO conventions, staff may
have a basic set of activities and aims that they complete every week or month but leader in
company is constantly forcing them outside of their comfort area (Ayangeadoo and Akpan,
2018). With this style leader is capable to work with group of people to determine needed

change, executing change and creating a clear vision to direct change in tandem with committed
members of team. As compare to transactional leadership style, transformation lowers turnover
costs it tend to retain skilled workers more often than other forms of leadership. That is because
of charisma this form requires.
Transactional-
It is another style of leadership in which leaders of TESCO Company can promote
compliance by workers through punishments and rewards. Through punishments and appraisal
systems leader is capable to keep talented applicants motivated for short term period. While
using in business Company can gain benefits in term of retaining people but on the other hand it
not work for longer because threat of punishment decrease productivity level of staff. With this
form leader only focus on role of organization, supervision and team performance (Purwanto,
Asbari and budi Santoso, 2019). They are concerned about day to day growth towards set aims
instead of developing strong workforce. It helps to creates achievable aims for workers at all
levels.
Organizational structure analyses
Structure of organization is a system that outlines how certain actions are guided by
leader and directed by manager in order to achieve set objectives and aims of a company (Joseph
and Gaba, 2020). Here, organizational structure of TESCO discussed and analyzed in systematic
manner. This company has a hierarchical structure; it considered as functional structure as it
centres on varied departments in firm. The main reason company utilize this structure is because
they has multiple layers within it and has big infrastructure. Management of this company
employee thousands of talented and hard working people around the world and it would be
impossible for individual to keep an eye on all of them. That is why firm uses hierarchy
organizational structure instead of other one to mange varied nations, several departments,
outlets and employees or consumers as well.

Figure 1TESCO Organizational Structure
(Source: TESCO company Organizational structure, 2017)
Using this form of OS also means that buyers obtain best care and concern in business it
effectively helps organization to fulfill their purpose and achieve set aims. TESCO use their
structure to meet there purpose that is to serve Britain’s shopper or buyers a little better every
day. According to this structure, CEO is accountable for making major corporate decisions and
making overall assets and operations of TESCO as well as acting as main point of
communication & interaction between Board of directors and business management. They deal
only with high level strategic judgment and those that direct organization overall progress and
success. Vice president of finance department and Human resource communicate with CEO of
company directly to discuss some important topic about business success and staff. They reports
to and is responsible to Board of directors for practices and success of organization. BOD is team
of people who are elected to represent shareholders of firm. They give approval for marketing
and consumer relationship services. In above figure, store manager plan for collecting and

gathering products in outlets for consumers. Vice president Distribution, product placement,
shipping and waste management activities are conducted under CEO. Regional manager take
their approval regarding consumer service and guide store manager to keep all inventory.
Strategic direction includes their mission, values, direction, mission and overall strategy.
According to organization structure of TESCO, Chief executive officer responsible to figure out
how all pieces fit together, develop plan, execute it and measure operations of company in
accordance with their overarching activities.
Legal requirement and benefits of equal & diversity chances at workplace
Legal requirement means any statue, decree, law, decree, ordinance and regulation as
well as terms of any license or approval issued by any local or national authority. It is very
important for TESCO while operating their business in UK supermarket to comply with and
adhere to all legal requirements. In most basic sense, advantage of regulations and rules in
business are that they protect firm. Packaging regulations affect success and growth of
companies, by following rules firm can sustain for longer within retail industry. To retain
consumers for longer period of time organization had to comply with packaging regulations that
is quite beneficial for them (Blom, 2019). TESCO follow all rules and regulations along with
above one, management efforts to reduce amount of plastic packaging and adopt new strategy
related to products packaging it gain the attention of modern consumers who are very serious
about environmental safety.
Organizations in retail sector focus on this regulation and start practicing towards
reducing amount of packaging waste going to landfill. By following all the principles of this
regulation company can contribute in reducing solid waste, water, land and electricity waste. It
driver company towards sustainable business practices that helps to strengthen brand image
within marketplace in effective manner. In simple words by reducing their carbon footprint
supermarket industries companies along with TESCO can sustain for long and retain all the
potential consumers as well as employee with them.
Diversity refers to the act of understanding that each person is unique and considering
their individual differences. These can be along with dimensions of race, sexual, physical
abilities, ethnicity, religious beliefs, age, gender and socio economic status. Whereas equity
means everyone obtains fair treatment while doing job in big companies. There is a transparency

to effect and cause and everyone knows what to except in term of rewards as well as
consequences.
Equity and diversity in workplace play vital role in growth and success of companies
like TESCO. It enhances motivational level of staff and inspires them to work hard rather than
past few years. Diversity and equity opportunity at work area provide many benefits to
organization as it help to strengthen brand image within retail sector for longer period of time, it
also aid to provide quality products or service to consumers (Fine, Sojo and Lawford‐Smith,
2020). With this chance workers can work in inclusive work culture that is quite beneficial for
staff as well as company. It allow individual to perform with full confident and committed which
make them able to achieve set business aims and objectives. It can be said that diversity and
equality in work area promotes innovation, when people get this chance they can drive
themselves towards creativity which in return increase profitability and productivity of firm
rather than its competitors operating within same industry. Furthermore, it analyze that when
staff think that their company is committed to and supportive of diversity & equality their
capabilities to innovate increases by more than 83%. It is fact that both elements in workplace
develop more innovative business outcomes, by bouncing ideas off each other a diverse group
can generate more creative concepts.
Moreover, equity chance in workplace along with diversity also caters many advantages
in contest of business as well as workers (Guillaume and et.al., 2017). By providing fair chance
to female workers for participating in decision making procedures management can build strong
team and protect environment from gender diversity that impact negatively on success of
business. Having both men and women in team mean TESCO and other companies benefits from
different points of view and methods that come from varied life experiences. Multiplicity of
perspectives can spark innovation and creativity and aid firms spot & seize new chances. Along
with above benefits, equity in workplace increase employee retention and minimize high
employee turnover within company.
Workers who believes that they have bright future within a firm wants to stay for long
and when they stay company are relieved of brain drain, expenses of training & development
replacement staff and monitoring former people enrich competitors with training offered by

manager. By getting equity chance or equal opportunity in workplace for taking part in all
business activities workers can boost up their morale which is beneficial for them.
CONCLUSION
From above analysis it has been concluded management and leadership styles work
towards achieving business objectives and aims set by management within companies. By using
effective leadership and management forms TESCO can enhance their business practice as well
as operational efficiency rather than its competitors. It permits company to manage their
effective workforce and their performance and also organize business operations operating
within varied nations. Furthermore, it has been summarized that by following all the legal
requirement and rules company gain benefits such as gain competitive benefits and consumers
attention. Diversity and equal chances at work area increase the performance level of staff, it
allow them to driver toward commitment.

REFERENCES
Book and Journals
Ayangeadoo, H.Y.A. and Akpan, A.B., 2018. EFFECTS OF TRANSFORMATIONAL
LEADERSHIP STYLE ON WORKERS JOB SATISFACTION, COMMUNICATION
AND TEAMWORK IN DANGOTE CEMENT COMPANY (PLC), OBAJANA,
NIGERIA. International Journal of Management Science Research. 4(1). p.57.
Blom, M.I., 2019. Increasing Plastic Packaging Recycling Rates: A Comparison of the Dutch
and British Post-Consumer Plastic Packaging Mechanical Recycling Systems and the
Influence of Food & Agribusiness Firms (Master's thesis).
Chumba, J. and Mutinda, B., 2017. Influence of Management Style and Entrepreneurial Culture
on the Performance of Family Owned Matatu Businesses in Nairobi; Kenya. Journal of
Entrepreneurship & Project management. 1(1). pp.1-11.
Dyczkowska, J. and Dyczkowski, T., 2018. Democratic or autocratic leadership style?
Participative management and its links to rewarding strategies and job satisfaction in
SMEs. Athens journal of business and economics. 4(2). pp.193-218.
Fine, C., Sojo, V. and Lawford‐Smith, H., 2020. Why does workplace gender diversity matter?
Justice, organizational benefits, and policy. Social Issues and Policy Review.
Goren, P., 2018. Effect of Leadership Styles on Employee Productivity at South Nyanza Sugar
Company Limited, Migori County.
Guillaume, Y.R and et.al., 2017. Harnessing demographic differences in organizations: What
moderates the effects of workplace diversity?. Journal of Organizational Behavior.
38(2). pp.276-303.
Joseph, J. and Gaba, V., 2020. Organizational Structure, Information Processing, and Decision-
Making: A Retrospective and Road Map for Research. Academy of Management Annals.
14(1). pp.267-302.
Purwanto, A., Asbari, M. and budi Santoso, P., 2019. Influence of Transformational and
Transactional Leadership Style toward Food Safety Management System ISO 22000:
2018 Performance of Food Industry in Pati Central Java. Inovbiz: Jurnal Inovasi Bisnis.
7(2). pp.180-185.
Yeh, C.H. and Hsieh, T.Y., 2017. A STUDY ON THE MANAGEMENT STYLES AND JOB
SATISFACTION OF EMPLOYEES AT TAIWAN'S ARCHITECTURAL
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6 Management Styles and When Best to Use Them. 2020. [Online]. Available through: <
https://www.cleverism.com/management-styles/>

The Packaging Regulations. 2019. [Online]. Available through:
<https://www.packagingregs.co.uk/the-packaging regulations?
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0nFob2_uRtwhzye1h0RoCpOAQAvD_BwE>