Leadership, Management and Operations at TESCO: A Comprehensive Report

This report delves into the crucial distinctions between leadership and management, offering a comprehensive analysis of their roles and responsibilities within a business context. It examines the application of various leadership theories, including situational, system, and contingency leadership, providing real-world examples from TESCO, a leading UK retailer. The report explores the functions of a manager according to Fayol, emphasizing planning, organizing, commanding, coordinating, and controlling. Furthermore, it investigates different approaches to operational management, such as business process redesign, reconfigurable manufacturing systems, Six Sigma, and lean manufacturing, highlighting their impact on efficiency and product quality. The report also outlines the pivotal role of a store manager in operational management, covering responsibilities such as target achievement, asset management, and inventory control, ultimately providing valuable insights into effective business operations and decision-making strategies.

Management and operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a) Difference and similarities between a leader and manager ...............................................3
b) Function of manager according to Fayol...........................................................................5
c) Different theories of leadership .........................................................................................6
TASK 2............................................................................................................................................7
1. Different approaches of operation management ................................................................7
2.Role of a store manager.......................................................................................................8
3. importance of operations management...............................................................................9
4. key factor that affect the operations management ...........................................................10
5. Factor that impact upon decision making as a store managers........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management plays an important role in business environment. The report help to
understand the meaning of leadership and management. The report present the role of managers
and leaders in TESCO. It is the leading retailer shop in UK who sell number of product such as
electric item, groceries and clothes. The report present difference and similarities between a
leader and manager. It also describe the functions of a manager and how a manager perform his
duties in TESCO. The report describe different theories such as situational, system and
contingency leadership theory. It also explain various types of approaches of operations
management and the importance of operational management in a store. The report also identify
the key factors that affect on the operations of a store and how these factor help in decision
making which help to run a business in better way.
TASK 1
a) Difference and similarities between a leader and manager
Difference between a manager and a leader
Basis of differences Leaders Managers
1. On the basis of there role
played in business:
A) vision/goals
Decisive
Leaders makes vision.
Executives
Managers makes goals
B) stability maintains Leaders assist as change
agent.
Manager assist in
maintaining the status
quo.
C) risk Leaders are risk taker Managers are risk
controller.
D) focus on Leaders focuses on
building relationship
Managers focuses on
building process and
various strategies.
2. On the basis of characteristic

A) work style Leaders are thinkers Managers are doers.
B) earning Leaders wants earning
respect.
Managers insists on only
to be praised.
C) encouragement Leaders motivates others
to do.
Manages are motivated
for doing work
D) coach/followers Leaders lead guide as a
coach.
Managers are just
followers
Thus, the difference between leaders and managers are described above but there are
more difference between these terms on the basis of represents such as leaders are generally
owners who invest their money in business while managers represent the employees who woks
for salaries (Difference between leaders and managers,2018). One more difference can be given
on the basis of authority such as leaders are from top level while managers are from middle or
lower level.
Similarities between these two terms can be given as they are interdependent and interrelated and
some other are as follows
A) leaders are those persons who motivates others in general for achieving a common goal and
managers are those people who also motivate to those people who are working for him/her to
achieve their given goal. In nut shell motivation content are included in both the terms.
B) leaders and managers both influence the structure of working and environment.
C)leaders and managers both have the good social skill as they have to maintain the system
customer relationship management.
D)It can be said that good management resultant in effective leadership and good leadership
enhance the managerial skill and capability (Esquivel and et.al., 2017).
There is no other way to accept this fact as it is, that both the leaders and managers
have to deal with the people. These two are attributes and characteristic or an ability of a person
in working style. Although these terms have some differences but have lost of similarities like
there working area, methodology can be different but working scope can be relatively similar.

b) Function of manager according to Fayol
According to Fayol management function, he focus on 4 basic function of managers such
as planning, organizing, commanding, coordinating, controlling. Through this functions, Fayol
wants to increase the efficiency level of managers. Basically this functions are introduced to
know the human and behavioral factors of employees (Five functions of Fayol,2018). This five
functions are help to improving the working efficiency of workers. These functions show the
relationship between every department and provide the scenario to manage the work as well as
help in decision-making for the managers.
By using Fayol five function of management, managers of TESCO achieve the desired
target such as through first function that is planning, managers increases their personnel skill and
develop his thinking related to planning. This function help to managers to manage production
and develop personnel and resourceful skill. Next function is organization, managers of TESCO
uses this function to develop coordination between levels and department of a company. Third
function is commanding, which is very useful for managers. Through this function, mangers
enhance their communication skill and this will help them to create respect between their staff
(Antonakis and Day,2017). Fourth function is coordination, managers of TESCO uses
coordination and communication tool to achieve the target and goals. Sometimes lack of
coordination effect negative impact on the employees. Last function is controlling or monitoring,
Illustration 1: Fayol Function

this function help managers to ensures that everything in the company is run as per plan or not.
Managers of TESCO evaluate employees performance at regular interval of time. Regular
monitoring will help to identified the dedicated employee among all and after knowing complete
result it is very easy to take correct action in order to fill the gaps between employees.
c) Different theories of leadership
Situational leadership: As the name suggest situational leadership is to lead a task or
goal according to situation prevailing. It is the task of adjusting our working style while
leadership in accordance of situation (Ford and Harding, 2018).
It means that NO SINGLE BEST WAY for doing any work. The main factors included in the
leadership style are the ability to do and willingness to achieve a particular goal.
For example: TESCO had decided to start a new store of light water in 2010 but they received
around 500+ objection. They have to face various appeal rejection and issues with politicians and
local people. So they act according to situation and they decided to open TESCO Express store
with strategy.
System leadership: System leadership is that form of leadership in which some system
is created so that employees at all level can do work effectively and efficiently by using their
potential. It involves creating various models of leadership and flow of working culture,
preparing a design of system. It also involves making an organizational strategy.
For example: TESCO made various system to be leaders in its market. Expansion system and
strategy are made for opening a loyalty card. It was a system created for retaining the customer
and maintaining the brand loyalty in which systematic leadership is required.
Contingency leadership: Contingency is as the name suggest emergency so
contingency leadership is that form of leadership, based on controlling of any situation. In this
own leadership style is applied to any situation for dealing in right way. Leader's personality and
the prevailing condition are the main pillars of this leadership style (Johnson, 2017).
For example: There may be contingencies in organization like decline in portfolio investment
and great fall in company's financial position or a financial crisis. This can be occur due to poor
management and non competitiveness of leadership. In such cases leaders have to perform
contingency style of leadership which is concerned with structuring and restructuring of any
situation. TESCO company also uses the contingency leadership while its expansion and
strategic management.

M1
Leaders and manager are two different person in TESCO. Their roles and responsibilities
are completely different from each other. Leaders always motivate their staff while managers
monitoring the activity done by their employees. Leaders think about the future goals and
implement new ideas while managers always try to achieve the desired goals and objective for a
company (Fiedler, 2015). They both work for the betterment of company but their roles and
responsibilities makes them different from each other. For every company, both leaders and
managers are needed for the success of a company.
M2
Situational theory is too simple to understand and basically used by managers. It help to
establish the relationship between managers and employees but however it is evaluated that this
theory is difficult to define and it create conflation between staff. System leadership theory help
to examine the human behavior and it is an important tool which help to predicts employees
behavior but on the other hand it has drawback such as this theory only help to check the human
behavior, it does not check the performance level (Esquivel and et.al., 2017). Contingency
leadership theory is so flexible than others but it does not support to maintain the relationship
between employees and managers.
D1
There are various theories of leadership such as behavioral theory which help to identify
the behavior of every staff and in contingency theory states that there are some people who
perform at maximum level while approaches of leadership help to determine what things are
needed to develop others and analyzes the performance level of every individual. The appraches
of leadership help to lead the entire team in effective way.
TASK 2
1. Different approaches of operation management
Operational management convert the input into output which means that the process
through which raw material, labor converted into goods & services and it need skill, creativity of
people. Operational management ensures that the business operates efficiently in both terms by
providing best products and services to the customers at low and affordable rates. There are four
different types of theories such as

Business process redesign: it mainly focus on designing of work. It help in restructuring the
organization by designing process and rebuilt the business again.
Re configurable Manufacturing system: this system help to adjust the capacity of a every
department so that they help to continue in production. This are design to incorporate the sudden
change in structure and hardware components.
Six Sigma: it mainly focus on quality of product that offered to the customers. Its mainly help in
maximization of profit and reduce the cost as per the need of customers.
Lean Manufacturing: this system help to eliminate waste during manufacturing process. This
theory is basically uses in factory because manufacturing work is done in factories
From above four theories, TESCO uses six sigma theory because it mainly focus on the
quality of manufactured product. The company deals with the many products that is why it is
necessary to focus on the quality of product. Six sigma theory also help to achieve financial
targets such as help in maximizing profit and reducing cost (Rosenbach, 2018). The theory is
basically used in TESCO because it help to solve the issue related to quality of product. The
company has its brand image just because of providing best quality of service to their customers
so it is necessary to check the quality and then serve it to customers.
2.Role of a store manager
In operational management, store manager play an important role. Store manager is a
head of department and performs various role which are describe below:
 Store manager make sure that his store is meet all the targets and earning because he is
the only person who is responsible for the well functioning of store. So it is the most
important role which help to check the needs and requirement are to be fulfilled by store
or not.
 Store manager is responsible for managing the asset and check the inventory regularly. It
is the most important duty of a store manager to keep checking all the items and products
are sufficient to meet the need and requirement of their customers (Esquivel and et.al.,
2017).
 Monitoring the whole operations management and assign work to them is the basic role.
It is the duty of store manager to make customers feel safe and secure in their store. Store
manager should always available for their subordinates in order to help them and try to
solve their problems.

 The store manager is help to set the budget and also calculate the future expenses in order
to increase the level of performance of company. In TESCO, the store manager explain
the set target, examine the fund available to departments and collect the performance of
employees at regular interval.
 Store manager can hire the right person for their store and can dismiss the person if he is
not doing the work in proper manner. Store manager train and adjust new entrant in the
working environment so that they feel comfortable in the job place.
 The store manager look after all the activities done in operational management and
examines the working performance of every individual. Store manager also monitoring
promotion activities and inspect other programs are effectively done outside the
company.
3. importance of operations management
Operation management is very important in TESCO because it convert all the raw
material and labor skill into output or product. This management transfer all the input into output
with quality. If the operations are properly managed in TESCO then whole system is
automatically functions smooth but on the other side if operational management are improperly
managed then whole department or system has to suffer (Johnson, 2017). The main objective of
operational management is to satisfy the need of customers through their product and marketing
activities. Operational management dealt with the quality, designing and improvement of a
system that create brand image of a firm in market. In service company like TESCO, operations
management is quite important because it help in planning, controlling, directing and motivating
which help to take a business in next further level of success. Different operations department of
a company lead a business in a way of success and TESCO has its own operational management
where all department work together and produce the product according to the need of customers.
At production and manufacturing department of TESCO, company produces all the
products as per the demand of people and aims to reduce wastage and help to increase the
productivity (Rosenbach, 2018). Next, time and resource management make sure that the price
should be low and affordable for their customers and they deliver the product into market
without any issue related to customers. The marketing department takes care about the
promotional activities and let people know about their new products offering. The HR
department of TESCO help to hire new employees and develop good opportunities for job and

train new staff for the well functioning. Next is accounting department, who work smoothly and
supplies the bill immediately so that operations plan will be go ahead. All the transaction are
entry in inventory system which is the another operation management who control all the
transaction and check in and out of products So this indicate that the operational management of
TESCO work properly and the operations are done as per the need of company.
4. key factor that affect the operations management
There are various key factor that affect the operations management of TESCO which are
mention below:
 Economic : it is the most important factor that affect operations management. Sudden
and short term changes in the demand that affect the productivity of a company. During
recession, the demand of product and service are reduced and TESCO improve their
existing product and produces new ones (Esquivel and et.al., 2017). Due to economic
factor, inflation affect the purchasing power of all the customer and this lead to decrease
in selling power because TESCO sold their products at lower prices. This external factor
affect TESCO environment and decrease the selling power.
 Government policies: it is another factor that affect the external environment of TESCO.
New local, state government policies that affect the environment of TESCO and they face
many challenges in order to achieve those operations objectives.
 Multiple life style: It is another external factor that affect the operational management.
People lead many lifestyle and they chooses products and services in order to meet their
need and interest only. An individual may be a teacher or a fitness trainer, which lead to
choose the product according to their lifestyle and this multiple lifestyle change the
buying habit of customer (Tortorella and Fogliatto, 2017). This factor create confusion
for the operations management because they did not identify what should be produce in
order to meet the demand of their customers.
 Technological factors: this factor affect highly the operations management of TESCO.
The whole system is based on the latest updates and new technologies which create a big
challenge for TESCO. It also uses new technologies into their company in order to attract
more number of customer.
 Innovation and Competition: it is another important factor that effect the operations
management. By using new ideas and then implement it into the existing products will

sometimes faces problems because of difference in the taste of customers. Sometimes
new products are not like by customer and this may affect the sales of company and lead
to financial loss (Vidal and et.al., 2017). TESCO has many rivals such as Sainsbury's
who always low their prices and then sell the product into market. Due to its competitors
sudden fall in the price of product TESCO also lower the price as compared to others and
it affect the operations management department to again repricing all the product.
5. Factor that impact upon decision making as a store managers
External factors affect the decision-making of a store manager. Through economic
factors, store manager take a decision to sell their products in different discount rates and offer
various vouchers for the customers as it will help to increase the selling power. There is sudden
decrease in rate of products due to economic factors, store manager take a decision to reduce the
cost of products and then sell it to the market, this will help to increase the selling power of a
company (Kim and Cho, 2018). With the help of legal or government factors, store manager
takes care of all the laws and legislation and then fix prices in their product. New innovations
and technologies are always create hindrances in the growth of a company but at that time also
store manager implement all new technologies into their existing products in order to attract new
customers and encourages them to buy those product.
TESCO always uses new technologies and implement those into their product which help
to attract number of customers. Various and multiple lifestyle are adopted by people which
generally confuse the manufacturing and production department what to produces but at that
time also store manager takes a decision to meet the basic requirement of people (Tortorella and
Fogliatto, 2017). Store manager implement new strategies and plans for the better development
of a company by take care of people's need and changes in government policies. As the new law
is formed for the business by government then store keeper implement that into their terms and
condition in order to satisfy customers need as well as law applied into a business.
M3
To meet the company's goal and objective, it is necessary that leaders and managers
should perform their role in effective manner. Leaders should motivate the employees in order to
meet the need while managers look after the performance of their employees. Managers
encourage staff to achieve the target for company but leaders help employees and guide them
how the reach those goals (Vidal and et.al., 2017). In operational management, leaders and

managers both help the staff members to achieve the targets and satisfy the customers through
their offered products and services.
M4
There are many external factors that affect the business environment such as new
technologies and innovations, competition, new life style etc. These factor affect the operational
management and sometimes create confusion what should be done for the effectiveness and
smooth functioning of company. The external factor sometime affect financial status of a
company and decreases sales (Tatsuta, 2018). Legal factors also affect the company's
environment by sudden change in tax rate or change in government policies etc. these factors
influence the status and brand image of a company in market.
D4
operational management increases the performance level of a company while external
factor decrease the performance. Operation management plans, direct and control the cost and
always think for the betterment of a company but on the other side external or internal factor
decreases the efficiency of company which result sudden decline in selling power of an
organization (Inoue and Hosaka, 2018). Operations management always produces the product
according to demand of people and tries to make them satisfy with their products but external
factors affect the internal as well as external environment of a business.
CONCLUSION
By summing up above report it is concluded that management and operations are two
basic key aspect of TESCO. The report create awareness among people related to leadership and
management roles. The report focus on different roles and responsibilities of leaders and
manager of TESCO. It also present the function of manager according to Fayol and how a
manager of a company perform all the function. The present report explain different theories and
model of approaches that includes situational, system and contingency leadership theories. The
report also explain different key approaches of operations management. It also present the
importance of operation management in TESCO and it help to understand the relationship
between leadership and management in the business environment. The report present different
external factor that impact upon operational management and decision-making by leaders and
managers.