Leading and Managing Ethically

This report discusses the importance of business ethics in managing organizations, focusing on TESCO's ethical challenges and performance management. It highlights the need for transparency, employee involvement in decision-making, and the application of ethical theories to improve organizational practices. The report concludes with recommendations for TESCO to enhance its ethical standards and employee performance through effective HRM practices.

Leading and Managing
Ethically

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The Business Ethics is the study of policies and practices related to the business the
business commercial activities. It includes controversial issues such as corporate governance,
insider trading and corporate social responsibility (Weiss, 2014). Basically, ethics is termed as a
social science,, which deals with moral principles and social values. In additional additional to
this, it also gives protection to social groups. In this report, discussion has been done on the
ethical problems and issues of TESCO.The The company operates in the retail sector and was
established in the year 1919. It operates multi brand supermarket chain in UK and has employed
more than 500000 employees in its business (Menzel, 2012). This project help will discuss
business ethics issue related issues related to company’s policies and practices which affect the
the employee performance in the businesin the business Tesco have been highlighted. Under this
project report, report the discussion the discussion has been done on the the performance
management. It the process of analysis, evaluating employees’s efficiency and effectiveness
related to their performance.It is done by the manager and authority inn the organisation. It the
process of analysis, evaluating employee’s efficiency and effectiveness related to their
performance. It is done by the managers and higher authority in the organisation. Furthermore, It
the process of analysis, evaluating employee’s efficiency and effectiveness related to their
performance. It is done by the managers and higher authority in the organisation. this project will
also highlight the monetary loss of TESCO in 2015 which has highly affected the operations of
business and company have suffered from great loss of mon and it is suffered from the great
losses.
PERFORMANCE MANAGEMENT
It is ascertained that business ethics is based on the activities, decisions and functions
related to the operations of businessthe business. Business ethics is a core concept of situation,
activity and decisions related to firms firms where issues and conflicts of right and wrong are
addressed. Ethical issues related to the company’s policies and processes directly theaffect affect
the employee’s performance. Employee performance in the bue business plays a significant role
in enhancing the growth and development aspect of the coe company (Atapattu and Jayakody,
2014). Performance management is a process by which managers and employees works work
together to plan, monitors aand review rk ththe objectives and overall contribution to theof
employees.

Ethical aspects related to the the same is one of the challenging aspects for every
organisation in the present era. It is a significant and crucial aspect business analysis as it help
companies in attaining high and successful aspects of growth and development within the
market. The aspect of ethical business operations help companies in developing a significant
brand identity within the market which develop high sales and profitability in the economy.
Atapattu and Jayakody, (2014) analysed that the impact of ethical operations is develop a
significant impact on internal and external business aspects. The ethical issue at TESCO related
to performance management is that manager have no skill and ability to monitor the perform in
an effective manner. The ethical issues is that there has discrimination at workplace where
promotion and increment has done according to the personal references not on the basis of
qualification and ability. This is the major issue of the organisation so employees get
demotivate.
There are various theories of business ethics which may apply be apply which in the
formulation of policies and practices which which that can affect the organisation as well as
employees performance. TESCO needs to consider the the theory of ethics at the time when it
develop its its operational decisions and HRM practices. The ethical Ethical decision making is
based upon different aspects of of which can be classified as follows-
According to the theory of rightness and wrongness of any actions must be viewed in
terms oif the consequences that the action produces. According to the theory of
Consequentialism, It considered the actions of employees and observed their performance. It
implies that whether the action is right or wrong. rightness and wrongness of any action must be
viewed in terms of the consequences that the action produces. In other words, the the
consequences are generally viewed according to the extent that business serve some intrinsic
good. To the extent that business serve some intrinsic good. The ethical ways and used to
produce the best result for company. The most important form of consequentialism is social
utilitarianism which means that firm should act in an ethical way to produce the best outcomes.
This theory implies that employees should follow all rules and policies of the the company which
organisation implemented. It provides employees to the ways of punctuality and discipline in
effective manner. By use of scientific management approach in the organisation,. Company can
be to improve the employees performances per the research it has been ascertained that this
approach provide an accurate measurement of personnels working at workplace.

Another one is Natural Law and according to this law,law human beings have the
capacity within within among themselves for actualizing their potential. This theory suggests,
that companies should discover principles and policies that can guide employees in such a way
that they are are get satisfied by company's operation and practices. This creates a significant
impact on the overall developmentby company’s operation and practices.According to this
theory, employees should follow the natural rules and regulations of the the business law such as
company’s policies, working hours,etc. (Stumpf and et. al., 2013).
Virtue Ethics Ethics is another theory of ethicsmorals. It consists of two different
approaches in which first is of this theoretical orientation under which there are certain traits and
values which thaare appropriate for general or particular role. Second approach not only
identifies the virtues, but also focuses on their integration into what can be described as a right
reason. Integration into what can be described as a rights reason.
It is ascertained that different ethical theories implies implies different concepts for
businesses. Company may face the issues related to the stated concept when it does not follow it
in the practices. Ethical issues reflects reflect the situation in the company when employees and
workers are not satisfied with policies and practices related to the business operation
(Bamberger, Biron and Meshoulam, 2014). In other words, a problem that requires a person or an
organisation to choose an effective alternatives, which must be evaluated as right or wrong
aspect of the company. Main issue identified within TESCO is that employees are not satisfied
from with the policies and procedures due to which firm faces the problem of employee’s
turnover (Chen and et.al., 2016).
Another major issue occurred in the year 2015, under which company has faced the
greatest loss of money. In addition to this, group has ve suffered from a loss of 6.4 bn loss. That
time, TESCO has crashed to the it was the biggestt loss ever recorded in the UK.. Organisation
has reported the worst results in its 96 years of history . In this includes the 6.4bn tax loss with in
statutory records The loss occurred due to down fall in the property value of its stores. The
company has also faced the issue of changing shopping habits and numbers of no frills
supermarket. It was the biggest loss suffered by a UK railer and one o corporate history. The
main behind this loss of TESCO is that the brand has not made the best use of its bigger retail
outlets.

Along with that, organization has not been transparent with its market suppliers and
inverters. It have been hide the original gained amount from its suppliers and investors in the
market. It is the biggest reason behind its loss. Through this loss, employee’s performance hast
down because company was noting poor management to their performance was not managed
properly due to which problem of worker turnover raised. However, with the help of ethical
theories, company can overcome the situation of employee’s attrition (Ivanovic and Collin,
2015). They can be retained in the firm by adopting effective policies and procedures. TESCO
should have develop their effective ethics and also, HR team needs to provide appreciation and
encouragement to their employees so that they can able to manage effective employee’s
performance in business. Performance management is the important task of HRM in the
organisation under which management evaluates and analyses the employee’s work.
In company, ethical problems raise due to improper or ineffective development of rules,
regulations and policies of operations. It is a crucial role and responsibility of HR manager to
develop proper rules and procedures of operational activities in company. In order to overcome
the situation of ethical issues, company can use the theory of corporate governance. According to
this theory, there is a system of rules, practices and processes by which a firm is directed and
controlled (Longenecker and Fink, 2013). Main objective of corporate governance is to develop
an appropriate balance in the interests of firm's many stakeholders, management, customers,
suppliers and community. With the help of this theory, TESCO's HR manager can handle
business ethics. Furthermore, this system helps organisation in developing effective rules,
regulations and policies which are suitable for existing employees (Storey, 2014). On the other
hand, through this system, firm can build effective employee’s relation so that it would help to
reduce the ethical issues.
Corporate governance can help TESCO by developing proper customs, policies and laws
for its employees from highest to the lowest level. It is intended to increase the accountability of
company and to avoid massive disasters before they occur. It has some basic principles through
which different kinds of issues within business can be resolved. Through shareholder’s
recognition, company can cover its stock prices. Another one is stakeholder’s interest that should
be recognised by corporate governance. In that particular aspect of business way,company has
taking time to address non shareholder so that it can help to company in establish a positive
relationship with community (Wright and McMahan, 2011). Thus, it can be said that corporate

governance is not just a structure, but it consists of various duties, obligations and rights that
control and direct a corporation.
In order to this, governance is about effectively distributing roles and responsibilities
among employees in the business who participate in the process. These people include
managers, stakeholders, creditors and regulators. Another main advantage of this system is that it
informs the employees about their rights within organisation. . Small businesses can also get
benefits from these practices. It consists of rules that direct the roles and actions of key people
rather than processes (Weiss, 2014). With the help of corporate governance, company can be can
be able to improve its reputation. Lenders can see the policies and internal control of
management.
In TESCO, scientific management approach in HRM is followed for achieving their
decided goals and objectives. This approach is important because this kind of approach is found
in almost every industrial firms operating across the world. Scientific management theory seeks
to improve an organisation's effectiveness by systematically improving the efficiency of task
completion by utilizing scientific, engineering and mathematical analysis (Menzel, 2012). Main
objective of this theory is to reduce waste, increase important process and methods of production,
and also t create union of goods. The goal is to serve the common interests of employees and
employers in the organisation. According to this approach, management of the company gathers
the information and analyse and then reduce the methods, law formula's. Manager have has
responsibility to scientifically select and train the workers. It provides excellent work for
achieving higher degree of workforce in all branches of shop management. It also, is facilities for
specialisation and division of employees. It Apart from t, it works for reduction in the cost of
production through increasing the output zel, 2016). This would help the company in a be
improvements in the procedures and methods of operations. In addition t
Through scientific management approach, management have gained the art of knowing
exactly what is to be done and how it is to be done. It has helped the manager in using the
techniques in the process of recruitment, selection and training of workers and also have used to
resolve various business related problems. It has been analysed that scientific management aspect
is one of the significant measure to bring organizational efficiency within the companies. This
has largely affected the performance of employees because it helps in overcoming time and cost
accepts of the production. Through effectively implement of this approach management can

increase the productivity and improve the performance of employees. The main objective of this
theory is to reduce waste, increase the process and methods of production, and create distribution
of goods (Clegg, Kornberger and Pitsis, 2015).
In TESCO, employees come across various drawbacks of scientific management
approach. In the business practices, monotony of work has been noticed. Most of the employees
and employers were highly dissatisfied from this approach because it demanded high costs of
management. Time and motion studies as well as other improvements involves a heavy outlay of
capital (De Cremer and Tenbrunsel, 2012). Moreover it was analysed that Tesco being a retail
sector did not significantly demanded the application of the approach to enhance the growth
aspects of the business. The major disadvantage of this approach was analysed that it is not
suitable for small manufacturing firms, because scientific management involves huge
expenditures which small firms cannot afford to adopt it.
The ethical impact of the same has created an insignificant impact on the organisational
growth aspects as well. In this approach managers evaluates the performance of the employees
on the basis of output attained in the business development and growth measures. The proposed
measure ignores the qualitative aspects of employee performance and development in the
company.
Furthermore, the system can be successfully implemented only with heart felt co-
operation of the employees. If they fail to respond favourably, the system fails to bring the
desired results. Analysing the same company have decided to switch it approach into
bureaucratic management. This theory, has two essential elements (Burnes and By, 2012). First it
is entails structuring an organisation into a hierarchy. Secondly, the business and its employees
are generally governed by clear defined rational legal decision making rules. Each elements help
an organisation to achieve its objectives. According to this approach, employee’s selection and
advancement is based on competence and technical qualification. In order to implement the
ethical solution at the workplace, corporation needs to focus on an effective HRM parctices and
policies so as every personnels can perform their responsibility and roles in an effective manner.
With context of TESCO, management should adopt flexibility working practicalities so as
employees can manage their personal and professional life in an appropriate manner. By use of
this preparative, company may able to developed an effective and healthy working environment
at workplace.

In this approach , manager have right to take the decision related to business activities
and functions. The flow of authority comes from top to bottom in this approach. Manager can
take the decision related to the organisation. It is a kind of pyramidal command structure under
which decisions flow from top to bottom (Bezzina, 2013). The bureaucratic organisation is much
organised with a high degree of formality in t way it operates. Organisational chart guests for
every department, and decisions are made through anorgaematic process. It is the strict command
and control structure along with many layers of management. So, authority is centralised at the
top,and information has tools from the top to down. In approach, rules and job responsibilities
are written down and clearly stated. Senior level managers have a great deal of control over the
business (Segonand Booth, 2015). This helps in creating a well defined impact on control and
monitoring aspect of the business unit. It has helped the companies in developing wide and
significant development measures within the market. The bureaucratic approach is commonly
adopted in government organizations in order to attain high and effective growth measures in the
market.
Bureaucracies are unable or unwilling to adopt new changes quickly. Furthermore,
employees are hired on the basis of their skills and knowledge. Main disadvantage of this
approach is that business related decisions are in the hands of top level of management. Senior
manager does not take participation of employees in making decisions and business strategies.
Thus, employees can get dissatisfied and feel uncomfortable in the organisation. Sometimes, they
may feel demotivated the cause top level of management does not give the importance in the
structuring of business. This is another ethical issue in the Company Top level of management
has not provided then transparency to their employees in h respect to business activities and
functions (Othman and Rahman, 2014).In this approach of management decision can be taken in
very fast manner because all authority have in the hand of manager and higher authority. They
has not take participation of employees in the development of decision.
Hence, between employees, situation of ethical issues has been raised. One of the best
advantage of this approach is that top level managers in bureaucratic organisational structure
exercise high control over organisational strategic decisions. This is ideal for business owners
with a command and control style. Strategic decision making has done in fast manner so that
work can be completed in effectively and efficiently. In this structure, authority is in the hands of
top management so that decisions can be taken quickly. Flow of information is top to bottom. Its

can discourage creativity and innovation within the company. The bureaucratic organisation
structure is less less flatter so that it is very beneficial to the company.(Yazdani and Murad,
2015). In some industries, workers may benefit from a more effective structure. However in
retail industry tight controls an tall hierarchies can be found. In the organization line manages
can receive less satisfaction from their top management and higher authority because of
bureaucratic approaches (Bamberger, Biron and Meshoulam, 2014).
From the above evaluation of applied approaches of management in TESCO, it can be It
has been evaluated that company should follow the transparencytransparent policies and
practices in its internal environment. The top level management should focus on taking
involvement of employees in the process of decision making and strategy development. Manager
and higher authority need to focus on inform each and every update and information related to
the .changes in operation to their employees (Cuzdriorean, 2013). It should keep healthy and
fair environment in business so that employees would can not hesitate to share their thoughts.
Involvement of employees in ion the decision making process can increase their the mot that
would lead to and encouragement of employees for higher productivity in the organisation
firzation (Longenecker and Fink, 2013).
The recommendation for company is to increase the standardised format of business
practices. Through this, company's workers and employees can easily understand business
practices and procedures of operation. HR manager needs to develop the effective and efficient
methods of operations. It should adopt the qualitative and quantitative approaches in their
business functions and activities . HR manager is responsible for develop the effective policy and
practices for their employees (Armstrong and Taylor, 2014). TESCO can increaseincrese the
quality of performance of employees by adopting an an effective methods of operations in the the
business activities.Company should focus on the qualitative and quantituiativemethods of their
production function. Company should focus on the qualitative and quantitative methods in their
production function. Through effective and standardised format of practices, qualitative and
quantitative methods and along with Transparency in the business information can help the
organisation improving the performance of employees in enterprise (McGansparency can eith the
all employees and workers in the management. It has been also recommended to the company
orgthat it can reduce tthe problem of employee’s turn over by using the theory of corporate
governance.

CONCLUSION
Business ethics is the study of policies and practices related to commercial activities in a
company. It includes controversial issues such as corporate governance, insider trading and
corporate social responsibility. It help companies in creating a significant market position in the
market. From this project report, it can be concluded that TESCO should adopt qualitative and
quantitative approaches and methods for their business operations. The HR manager and higher
authority of business should maintain the transparency with their employees. It means that they
should provide information related to the business decisions and activities to their employees and
share each and every updates related to the business profit and loss of business with to their
human resources. It has been also recommended to TESCO that top management needs to take
participation of employees in the decision making process so that they can be motivated and
encouraged for higher productivity. In this project report, it the discussion has been done on the
different management approaches such as bureaucratic management theory and scientific
management theory. It has also been suggested to company that it should reduce their employees
turnover issue by using corporate governance methods. This method helps the firm in reducing
employee’s issues and conflicts at workplace.

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