UGB261: Management Thought and Practices Report on Tesco Operations

This report, prepared for the Board of Directors, examines Tesco's operations management and its contribution to the company's growth and development. It begins with an introduction to management processes, emphasizing planning, directing, controlling, organizing, and coordinating. The report focuses on Tesco, a global retailer, and explores its aims and objectives, which include enhancing sales, expanding market segments, and promoting healthy products. It then delves into the role of operations management in business, highlighting efficiency, research and development, quality management, and flexibility. The core of the report analyzes two management approaches: the classical approach, focusing on production and employee relations, and the contingency approach, emphasizing flexibility in response to changing business situations. The report details the objectives of each approach and their application within Tesco. Furthermore, it discusses the importance of motivation in the workplace and the impact of effective communication and teamwork on business performance. The report concludes with a summary of findings and recommendations for Tesco's management practices, supported by cited references.

Management thought and
practices

Table of Contents
INTRODUCTION......................................................................................................................2
Aims and objective of TESCO...............................................................................................2
Role of operation management in business............................................................................3
Management approaches........................................................................................................4
Importance of motivation in the workplace business.............................................................6
Impact of Effective communication on business performance..............................................7
Impact of Teamwork Support on business performance........................................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INTRODUCTION
Management process is a cycle of management in which several processes are
included such as planning, directing, controlling, organising and coordinating the working
person in organisation and their operations within organisation. This report is emphasised on
management approaches that can be utilised in business in order to enhance team working
and provide learning opportunities to workforce. The report is based in TESCO which a
global retailer and deals in grocery and general merchandise stuffs. TESCO was founded by
Jack Cohen and headquartered in Welwyn Garden City, Hertfordshire, England, United
Kingdom. TESCO is the third largest retail store in the world on the basis of gross revenue.
The company operates their business in more than 13 countries with 6800 stores around the
globe (Berry, Broadbent and Otley, 2016).
Aims and objective of TESCO
 The foremost objective of Tesco is to enhance their sales and profits by putting
additional efforts on minimising total cost and increasing quality of their products.
For this Tesco is focused on providing best deals to their customer in order to catch
their attention and increase footfall within store. This will help them to grab
customer attachment and will help in increasing overall sales (Fatricia, 2017).
 Tesco is willing to capture more market segments by opening up their new
branches and stores within different demographic zones. They are providing
additional discount on their new opening and in order to control prices sustainable
business practices are used by them. These practices are helpful in managing
business is economical manner.
 Tesco is highly emphasised on selling routine household items which are giving
them high customer value and provide assistance in minimising inventory holding
cost.
 Tesco is having aim to increase healthy habits to their customers and for this
purpose they are introducing organic and healthy range of product which are not
having any harm to the population and helps to make them fit.
 Tesco is making plans to boost their sales and for this they are supplying their
products with the help of internet which is giving online shopping experience to
their clients. Within this they are giving jobs to local community by which they
have become market leader and eliminating unemployment to an extent.

Role of operation management in business
Efficiency and effectiveness: With the assistance of operation management high
business efficiency can be attained by adopting continuous improvement in quality and
business operations. By having proper arrangement of operation management an organisation
can control their business operation in more effective way which is going to help them in
enhancing business efficiency as well. In the context of Tesco they are highly emphasised on
using operation management practices in their business which is helping them to enhance
business performance and sales as well. Resultantly they are able to footstep over earning
high profits (Heller, 2017).
Research and development: With the help of operation management, research and
development activities can be improvised which may result into introduction of new and
innovative products within market by that customer base can be enhanced by the business. In
the background of Tesco they are emerged with high tech research and development activities
in their business by which they are able to understand needs and demands of their customers
in more effective way. This helps them inn meeting those needs and enhancing customer
footfall within stores. In current market analysis it has been observed that customer at present
scenario are inclined towards healthy foods so in order to tackle this market situation they are
keeping diversified range of products in order to meet needs and demand of their customers.
Quality management: By assistance of operation management quality can be
controlled by business in more effective way in order to render best quality product to
customer so as to add value to the company. In the light of Tesco they are having high control
on quality of their products and their quality team is supposed to maintain checking of their
product offerings in order to standardise their product and getting a distinct market edge. By
rendering high quality products in the marketplace business sustainability can be achieved for
longer period. This helps Tesco in meeting their goals and objective in suitable manner and
within allotted timeframe.
Flexibility: This is the most helpful feature of business organisation as when business
is having flexibility they can adopt market changes in very prominent manner in order to
tackle business problems. With the help of flexibility business performance can be enhanced
and high profits can be earned as changes are implied in a very suitable manner. In the
context of Tesco the company is highly focused in change management within business

operations and this helps them to tackle all the market and organisational changes in
appropriate manner which are required to be taken by them to have proper survival in the
marketplace. This assists them in attracting high number of customers and boost up their
profitability and acquiring larger market share as well (Uhl and Gollenia, 2016).
Management approaches
Classical approach: The theory was established in the year of 1990 and is adopted by
organisations in current business time. This theory is having its major focus on production
not on employees. This theory is focused on getting high quality of products by applying less
cost. This theory entails about importance of employee relations within business and
appropriate management. This approach is consisting of three levels of organisation such as
Upper, Middle and lower level. The upper level management of a business is focused on
management of all those strategies which are having direct connection with growth and
success of business. The lower level management is having their focus on solving employee
grievances and enhance their faith towards the company so as to control employee retention.
At last the middle level management of an organisation is having role to provide balance
between upper and lower level so as to meet up organisational objectives in considerable
manner. All the levels are there in Tesco with a main purpose to maintain business harmony
and provide required resources to their employees so that best possible output can be received
from them (Ivanov, Tsipoulanidis and Schönberger, 2017).
Objectives of classical theory
Division of labour: By dividing labour force in most effective way this become easy
to manage them as they are divided into groups so information can be reached to them in
appropriate manner. Within this management theory the upper level management is
responsible to divide whole workforce in smaller segments in order to help the manager in
conveying information to employees so as to tackle whole workforce in most effective way.
Within context of Tesco this approach is helpful for them in enhance team work and achieve
business goals in a whole manner.
Financial motivation: This approach is helpful in stimulation of motivation within
employees as with the help of monetary rewards an employee may be motivated to work with
better efficiency. So when monetary benefits are given to employee for their additional
efficiency this lead the employee to showcase their skills and capabilities to operations
provided to them. This assists the business to get high sustainability and business efficiency

as well. When employees are given incentives for their contribution to business this motivates
them to take participation in path of goal achievement for business and to enhance business
operations.
Autocratic leadership: This leadership style is focused on taking single handed
decisions. This maintains secrecy and creates seniority in the business. With the help of this
leadership style business have its high efficiency as due to presence of single personnel who
is providing directions. This helps the leader to get high control over the business and this is
helpful in enhancement of growth (Kitana, 2016).
In the light of Tesco, by adapting this theory the management team can make efficient
path of growth and development which is helpful for them in expanding their business at
another segment may be global or local. This approach helps Tesco in set appropriate targets
and impactful direction in order to achieve those objectives.
Contingency approach: This approach of management states that style of management is to
be decided by analysing prevailing situation and contingency arising in the business. This
approach of management is not providing support to any rigid and inflexible management
approach within business organisation as this is inclined towards management flexibility due
to which employees satisfaction can be enhanced that leads to lowering retention rates of
employees. This approach is helpful for the business to have high business growth and
sustainability within market place. Contingency theory exhibits learning in managerial
persons as this theory suggests using different theory of management at different
circumstances. This approach makes easier to adopt any prevailing market change within
business management which is helpful for long term business growth and development as
well (Harms and et. al., 2018).
Objectives of contingency theory
Relationship between situation and outcomes: This theory is used so as to maintain
effective relationship with market and business situation and helps to minimise any negative
impact of those situation in growth and development within business. This theory is helpful
for the management to deal with various situations and implement most suitable strategy
thereon so as to achieve business goals and targets. This allows the management to choose
most appropriate strategy which can give high benefits to the growth of business and its
sustainability within marketplace which is the key for business to implement any change and

modify their operation as according to the market needs with the sole purpose to meet
expectations of their customers.
Enhancement in decision making skills: This theory is helpful for the management
to take appropriate and prompt decision which is having high business and other
stakeholders’ benefits. In routine business management is facing numerous challenges which
are rigid and complex in nature so with this management strategy these challenges can be
tackled by critical skills of management through which decision making could be most
appropriate. High control can be stimulated if the management is having proper decision
making skills which is helpful for the business to get competitive edge and market
sustainability in less time period. By taking help of those strategies which are appropriate can
assist the business in achieving high end growth and development within industry
marketplace.
In the background of Tesco, the company is operating in retail chain of grocery and
other merchandise stuff so in this scenario markets are highly fluctuating in nature so there
are high chances to see market changes. So by adopting this management approach high
control on the business can be enumerated though which market changes can be taken in
business in a considerable way so as to get business flexibility. This approach helps the
management to incline towards those strategies which are highly beneficial for the business
and its survival within industry.
Importance of motivation in the workplace business
Enhances employees efficiency: Employees needs to have a fuel for giving best
results to their organisation in which they are working and that is called motivation. There are
certain types of motivation such a sin terms of monetary benefits and in terms of designation.
High level of motivation works as a catalyst in the performance of employee by which
overall performance of a business can be improvised. With the assistance of ample
motivation in the organisation this helps the business to have high productivity and personal
development of employees can be seen. Motivation works as the major driving force for
performance of employees as it bridges gap between willingness and their capabilities of
skills. Employees can be encouraged to perform in a better way by motivation them through
monetary benefits or giving them recognitions (Kock, Heising and Gemünden, 2016). In the
context of Tesco, the company is having highly motivated workforce as they are given ample

rewards for their tremendous performance within business so this helps Tesco in achieving
high end success within market.
Build friendly relationship: With the help of motivation, employees will have high
satisfaction in their company as proper plans of incentives’ are framed by the management
department. Motivation brings stability in the business due to which industrial disputes can be
minimised this will lead the employees to perform their operations with high efficiency.
When the business organisation is employee centric then they focuses on framing those
strategies which are beneficial to the business and their working employees. So by this
smooth relationship can be established between employees and business so as to get high
profits and high productiveness. In the context of TESCO the company is having policies
which are made to motivate their workforce so as to enhance productivity in the workplace.
Enhance employee engagement: With the help of appropriate motivation employee
engagement can be enhanced. This is helpful for the business to achieve their business goals
and targets in stipulated time frame (Rožman, Treven and Čančer, 2017). Distinct and unique
position in the minds of customer can be gained by business if they are having motivated
workforce. With the help of appropriate employee engagement, organisational culture can be
improvised and settle as according to the need of employees. In the context of Tesco, leaders
and managers of the company are giving high emphasis to motivate their employee by which
they get high dedication of their employees. This is advantageous for the business to meet
expectations of their customers and set up them as a market leader. Tesco is having proper
policies in their organisation to motivate their employees as they announce bonus and perks
on timely basis as according to performance of their employees by which they are achieving
their business goals in considerable manner.
Impact of Effective communication on business performance
Communication can be stated as effective if receiver has understood the message in that
manner in which sender has intended to send the same. Effective communication is essential
for the business and contains so many benefits in various dimensions of business which are
elaborated as under:
1. Clear Expectation for Employees and Customers: Effective communication helps
Tesco to set clear level of expectation for employees and customers. Employees get
awareness about impact of their performance on organisational goals and to feedbacks
which are received from customers. Similarly customers have clear sight over their

expectations and service issues which are needed to be taken care at the time of
claiming any rewards or benefits (Oetzel, 2017).
2. Building Strong Relationships: With the help of effective communication a
relationship of trust and loyalty can be created within organisation and employees. A
strong relationship is made by two ingredients which are trust and loyalty so this helps
the employees to focus on individual and group requirements as well. Effective
communication is taking place at external level which helps the business to make
efficient relations with their clients within their product offerings. This may help
Tesco to enhance their brand image within marketplace.
3. Ideas and Innovation: One of the prominent importance’s of effective
communication is that this is a two way procedure. One the message has been sent by
sender, receiver is having obligation to give their feedback on that. So with the help of
those feedbacks the business may have new emerging innovative ideas to enhance
their brand value and product offerings and this helps Tesco in getting competitive
edge within marketplace.
4. Achieving desired goals smoothly: The major goal of each business is to get their
desired goals achieved in considerable way and effective communication works as an
essential tool to achieve those business goals in most smooth manner. With the help
of effective communication suggestion can be received from external and internal
sources and employees grievances can be solve in prompt manner so as to eliminate
any negative impact on the business (Bresnahan and Yin, 2017).
Impact of Teamwork Support on business performance
Tesco is having 450000 employees in their organisation around the globe. So their
success and failure depends upon how they manage team work in their business and how all
the workforces are managed to work in a together manner. So team work plays as an
important attribute in good performance of business. Below are some impacts which are seen
in Tesco are explained:
1. Common Goal: Every employee is working to achieve to individual and overall
organisational goals. Needs of a person gets varied but goals of the business
always remained to be same. So by working in team this helps individual to
achieve long and short term objective in cumulative manner as dedication can be
improvised which lead to have high degree of motivation (Patyal and Koilakuntla,
2017).

2. Buoyed by Mutual Support: With the help of working as a team employees of
Tesco may work for common goal of their business organisation with full support
and this leads to generate a feeling of taking stand for each other. This assists
employees to dodge any hurdle and creates healthy and supportive environment
within organisation. With the help of team work targets can be achieved by Tesco
within their deadlines and highly accountable and efficient workforce can be build
which is advantageous for them in long term.
3. Utilizing Individual Strengths: A team is formed by many participants who are
having varied skills or capabilities and procured resources. Tesco may use team
work to utilise those talent and skills in the manner that it could help the business
to achieve their business goals in considerable manner. This is going to help Tesco
in expanding their capacity and optimum utilisation of their procured resources.
4. Celebrate Diversity in Teams: When business consist of huge workforce then it
may have high workforce diversity, so team work is having its high impact on
individuals to protect them from any sort of discrimination. So resultantly this
helps the business to perform in a positive way and achieve their goals by
avoiding any sort of discrimination within workforce (Khan and Mashikhi, 2017).
CONCLUSION
Form the above report it can be concluded that management and their practices are
having prominent impact on success of the organisation. In business management theories are
assisting them in taking out maximum benefits from employees and giving more to their
customers. Similarly management theories assist the business to get their goals achieved
along with high operational efficiency. In any organisation motivation is having significant
role in order to boost performance and use skills and capabilities of workforce in optimum
level. On the other hand with the help of effective communication business can get diversity
and high end performance within business along with high efficiency (Reid and et. al., 2017).

REFERENCES
Books and journals
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and authoritarian followers revisited: A review and agenda for the future. The
Leadership Quarterly. 29(1). pp.105-122.
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