MG414 Organisational Behaviour Report: Tesco Culture Analysis

This report provides a comprehensive analysis of Tesco's organisational behaviour, examining its organisational culture, management styles, and the impact on employee motivation. The report begins with an executive summary and introduction that outlines the scope and objectives, followed by a discussion of organisational culture using Charles Handy's theory. It explores how Tesco's culture improves organisational effectiveness, focusing on communication, and different management styles such as autocratic, laissez-faire, and democratic. The report then evaluates the role of culture on employee motivation, discussing both intrinsic and extrinsic motivation. It applies content theories, including Maslow's Hierarchy of Needs, and process theories, such as Vroom's Expectancy Theory, to understand how Tesco motivates its employees. The conclusion summarizes the key findings, emphasizing the importance of culture in enhancing organisational effectiveness and employee motivation. The report uses various references to support its findings.

MG414 Organisational
Behaviour

EXECUTIVE SUMMARY
Organizational behaviour is described as a set of behaviours and the nature of employees
within a company while executing various tasks. It defines the characteristics of employees while
working on a specific position within the company. It is a crucial aspect of the organisation since
the influence of behaviour can have an impact on the organization's profitability and
productivity. In the report there will be discussion related to culture of organisation as well as
how it impacts the motivation of the organisation. It helps to enhancing the effectiveness of the
organisation. In the end there is discussion related to role of culture in motivation of employee.

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organisational Culture and Theoretical Model......................................................................3
Exploration of how Culture Improves Organisational Effectiveness.....................................4
Evaluation of the Role of Culture on Employee Motivation..................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals...............................................................................................................11

INTRODUCTION
Organisational Behaviour is the study of humans that are working in the organisation so as
to understand them and make them work effectively. It helps to manage the employees and all
the individuals that are part of the organisation so as the company is able to achieve goals and
objectives effectively (Selamat, Nordin and Fook, 2017). Tesco is considered in order to
complete this report. It is a multination groceries and general merchandise retailer that has its
operations around the globe. The company has its headquarters in United Kingdoms. In the
report there is discussion related to the culture followed and how it benefits the organisation. The
culture of organisation is understood with the help of Charles Handy’s Theory. There is
discussion related to culture and how it improves the effective of the organisation. Along with
that there is discussion related to the role of culture on the motivation of the employees.
MAIN BODY
Organisational Culture and Theoretical Model
Organisational culture includes the norms, values, practices and expectations that are part of
the organisation and are followed in the company (Wong and Wong, 2017). It means the internal
values that are part of an organisation. The culture of the company impacts the economic growth
of the organisation.
Handy's Model of Organisational Culture
As per the theory there are four types of culture that are followed in an organisation. The
four cultures in relation to TESCO are discussed below:

Power Culture: In relation to power culture it is seen that the power remains in few hands
that have authority to take this decision full stop it is seen that these people enjoy privileges in
the workplace and are the major decision makers (Paillé and Meija-Morelos, 2019). They give
instruction to others and they have to follow them. In relation to Tesco It is seen that in the
organisation there are few people that have high power and are senior in level. They take the
decisions that are for betterment of the organisation and help to achieve the goals and objective.
Task culture: In this culture the teams are formulated to achieve a specific target or to solve
any problem. The teams are formulated for a common interest and to achieve the result and
outcome of the same. In this regard it is seen that in Tesco the company formulate teams and
then they work to achieve the objective or solve the problem.
Person Culture: It is seen that in person culture the employees are given importance in the
organisation. All the individuals are given authority in decision making. In relation to Tesco they
give importance to the Employees and this makes the employees loyal towards the work and
organisation (Griffin and Griffin, 2019). It helps in bringing motivation in the employees and this
help employee to achieve all the goals and objectives effectively.
Role culture: In role culture the roles and responsibilities are being delegated to all the
employees as per their specialisation. It helps them to work as per their area of interest. In regard
with Tesco all the employees are delegated to work as per their area of perfection. This is helpful
to complete the assigned work on time. This helps the employees to feel good and motivated and
role culture enhances the productivity of the organisation.

It is critical for Tesco to sustain several cultures within the firm, as this will aid in growing
productivity and improving the firm's decision-making abilities, allowing it to make varied rules
and procedures while maintaining productivity throughout its many sections.
Exploration of how Culture Improves Organisational Effectiveness
It is vital to note that in an organisation the culture plays a vital role. It is important for each
and every organisation to focus on the communication. It is seen that in relation to Tesco the
management focuses on effective communication. It is seen that by communicating organisation
is able to understand the roles and responsibility, know about conflict and solve them. There are
various reasons that help the organisation to operate effectively if proper communication is part
of their culture.
Management style
Autocratic Management: it is leadership style in which the leader takes all the decision.
They are solely dependent for taking all the decisions in the organisation. There is no
involvement of employees in the decision making process. They feel themselves as capable of

taking right decision that will be beneficial for the organisation and it growth. There is lack of
motivation in the employees of the organisation.
Laissez-faire management: It is seen that in this type of management style the leaders have
less involvement (Choi, Martins and Bernik, 2018). It is noticed that all the decisions are taken
by the employees. The authority is given to the teams and they are responsible for all the
activities that are done in the organisation. All the team members are motivated and able to work
effectively as they have responsibility as well as authority to take decisions as well as work for
betterment of the company.
Democratic Management: It is vital to note that the democratic style comes in between
autocratic and Laissez-faire management as the leader takes the decision with the involvement of
the employees. This helps to bring the best ideas and employees also feel personal touch that
benefits the organisation.
In relation to Tesco it is analysed that the company uses democratic style of management. It
helps to enhance the effectiveness in the organisation. All the employees work effectively and it
helps to achieve the goals and objectives (Wilkinson and et.al., 2018). Employees are always
involved in decision making. In Tesco the employees are motivated and that helps to provide
good services to customers that are also beneficial for the organisation.
It is important to note that Tesco uses hierarchical organizational structure. Positions and
responsibilities are divided into various pieces in this structure to guarantee that work is
completed efficiently and seamlessly. The people at the top of the corporate ladder have the most
responsibility and power.
It is important to note that all the employees are involved in decision making of Tesco.
It is clear that it helps to work effectively. It helps in proper communication in the organisation.
It strengthens the working of the organisation. It is also seen that it brings creativity and
innovative ideas in the organisation.
Evaluation of the Role of Culture on Employee Motivation
Motivation is the process of guides, initiates and maintains the goals oriented behaviour. It
plays a vital role and in the workplace. As it drives the employees to work effectively and
achieve goals and objectives (Meissy, 2019). It is seen that in relation to Tesco the company
keeps the employees at priority. There are two types of motivation that are used by the

organisation to motivate the employees. The discussion related to motivational factors in regard
to Tesco is discussed below:
Intrinsic Motivation: It is defined as a sort of motivation that incorporates motivation
derived from an individual's inner feelings. It is this type of motivation that is advantageous to
the organisation since it does not require the organisation to grow its resources in order to deliver
motivation.
Extrinsic Motivation: Extrinsic motivation occurs when a person's motivation gets dried up
by numerous external factors. Individuals receive monetary and non-monetary rewards and
incentives as a result of these circumstances.
Content Theory: Maslow's need hierarchy

Maslow's Needs Hierarchy includes five different stages of individual wants is
motivational theory. The theory is given by Professor Maslow. According to theory, there are
five categories of needs in a person's life that must be met in order to boost motivation. These
requirements are mentioned below:
Psychological needs: Psychological needs are one of an individual's basic wants, which
include food, shelter, and a variety of other tiny items that must be met in order for an individual
to survive (Masvaure and Buitendach, 2019). In relation to Tesco the company can meet this
requirement by paying its employees a fair wage, which will allow them to meet their
psychological requirements.
Safety needs: These needs develop after psychological requirements have been met. It
comprises a person's safety and security requirements. Unilever can meet a business need by
providing permanent employees, as well as proper health insurance and other safety-related
benefits.

Belongingness and love needs: It includes those needs that arise after the above-mentioned
requirements have been met. Include interpersonal relationships, friendships, and other personal
relationships in order for an individual's love, affection, and other needs to be met (Bawuro,
Danjuma and Wajiga, 2018). Tesco can create official and informal groups and teams within the
organisation where an employee can establish personal and professional relationships.
Esteem needs: They include an individual's desire for prestige and a sense of success. After
reaching a certain level within an organisation, an employee can fulfil these needs. In respect to
Tesco they can meet these objectives by providing a variety of services to its employees,
allowing them to assist the organisation by taking on demanding tasks.
Self-actualization: These are the demands that comprise realising one's full potential,
including engaging in creative activities throughout one's life. It is the highest need in the
hierarchy.
Process Theory: Vroom Expectancy theory
Victor Vroom proposed this motivation theory in 1964. This theory is founded on three
pillars, each of which is directly tied to an individual's demand for increased motivation. It is
assumed that the performance of the employees is based on the factors like skills, personality,
experience, knowledge, and abilities of the individual.

Valence: According to this section of the expectancy theory, it is critical for an individual to
place a positive value on expected outcomes. For the valence to be positive, the individual must
prefer achieving the outcomes to not attending them. In regard to Tesco they motivate the
employees and provide the recognition as well as financial reward that help to make the
employees valuable and achieve all the goals and objectives.
Expectancy: It believes that greater efforts will lead to increased organisational
effectiveness (Alanoğlu and Karabatak, 2020). It is founded on three basic pillars in the context
of Tesco, which are having the proper resources in the organisation, having the proper skills to
accomplish the task, and receiving the appropriate support to get the task done. The expectancy
helps to achieve the goals and objectives and is beneficial to motivate the employees and keep
them working in the organisation.
Instrumentality: It contains the concept that an individual's performance is directly tied to a
valuable outcome within an organisation after they have worked (Waribo and et.al., 2020). It
expresses the direct relationship between the first and second levels of outcome. In Tesco the
perception of employees is understood and they are given reward based on the expectations it
helps them to work effectively.
As per the above theories it is seen that if the organisation provides good working
environment to the employees as well as the salary and wages that they deserve then they are
motivated towards their work. It is important to note that if the expectancy of the employees is
analysed and they are given rewards and recognition for their good performance then they work
effectively and try to achieve better goals and objectives.
Benefits of Maslow's Hierarchy of Needs
 The theory is easy to understand as well as relative to the employees that increases
its use.
 Another benefit associated with theory is that it understands the basic human nature
of employees and it says that the demands increased by satisfying the lower needs.
 Along with that this theory is relevant in all the fields of work.
Disadvantages of Maslow's Hierarchy of Needs
 It is important to note that all the individuals or not same so the needs and wants of
all the employees are also different and this is a drawback of the theory.

 There are cultural differences and theory does not find any motivation for the
employees in that case (McCormick and Donohue, 2019).
 It is not possible to measure the satisfaction level of an employee and judge when his
or her need is fulfilled.
Benefits of Vroom Expectancy theory
 It is noticed that the employees get motivation by rewards as well as incentive so
the advantage is that employers come to know about the motivation level of
employees and provide them what they want and it helps in success of the
organisation (Fahlevi, Zuhri and Ekhsan, 2019).
Disadvantages of Vroom Expectancy theory
 As per the theory there is emission that all the work is done without the
participation of managers. But in reality the leaders have to work with the
employees so as to motivate them as well as to monitor their performance

Conclusion and Evaluation
From the above report it can be concluded that organisational behaviour is one of the vital
function of an organisation. It is seen that the company that is able to manage and know about
area of employees after working in the organisation are able to achieve the goals and objective in
an effective manner in the above report there is discussion related to organisational behaviour of
Tesco.
It is seen that the culture of organisation plays a vital role as to get success. It is analysed
that the company should understand the nature of employees and formulate the culture in the
same way. In relation to Tesco the company always give importance to their employees so that
they feel motivated toward the work and work in an effective manner. So it can be said that the
culture of organisation helps in success and profitability of the company.
Communication plays a vital role in the organisation. It is seen that the company that
communicate effectively with all the employees and tell them roles and responsibilities
effectively are generally more successful. In relation to Tesco It is seen that the company in was
all the employees at the time of decision making and follows democratic way to manage the
employees. All the employees are free to ask the problem and communicate effectively. It helps
in achieving success as all the things are clear and the employees know about their work.
Whenever, the employees face any problem that is solved by the superiors. A good work in
environment helps to bring healthy relations that motivate the employees and enhances their
productivity. On the other hand if the organisation has an effective communication then the
employees will be motivated and will not work effectively full stop this will reduce the
performance of the organisation as well as may increase the level of absenteeism of employees in
the company that is problematic for the organisation.
From the above report it can be analysed that motivation is one of the prominent factor that
impact the performance of employees full stop the company should use best possible policies to
motivate the employees as it helps to to enhance their performance and achieve the goals and
objective effectively. There are a number of benefits of motivating the employees as it leads to
overall benefit of the organisation

REFERENCES
Books and Journals
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organisational justice on the relationship between principals' management style and
teachers' organisational citizenship behaviour: Turkey sample. KEDI Journal of
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Bawuro, F.A., Danjuma, I. and Wajiga, H., 2018. Factors influencing innovative behaviour of
teachers in secondary schools in the north east of Nigeria. Traektoriâ Nauki= Path of
Science, 4(3).
Choi, S., Martins, J.T. and Bernik, I., 2018. Information security: Listening to the perspective of
organisational insiders. Journal of Information Science, 44(6), pp.752-767.
Fahlevi, M., Zuhri, S., Parashakti, R. and Ekhsan, M., 2019. Leadership Styles Of Food Truck
Businesses. Journal of Research in Business, Economics and Management, 13(2),
pp.2437-2442.
Griffin, R.W. and Griffin, R.W., 2019. Organisational behaviour: Managing people and
organisations. Cengage.
Masvaure, P. and Buitendach, J.H., 2019. Validation of the work engagement, job satisfaction,
psychological empowerment, and organisational citizenship measures in a mining
sector setting in Zimbabwe. Journal of Psychology in Africa, 29(3), pp.223-229.
McCormick, L. and Donohue, R., 2019. Antecedents of affective and normative commitment of
organisational volunteers. The International Journal of Human Resource
Management, 30(18), pp.2581-2604.
Meissy, M., 2019. The importance of organisational behavior on company development at CV
Mega Fashion Global (Doctoral dissertation, Universitas Pelita Harapan).
Paillé, P. and Meija-Morelos, J.H., 2019. Organisational support is not always enough to
encourage employee environmental performance. The moderating role of exchange
ideology. Journal of Cleaner Production, 220, pp.1061-1070.
Selamat, N., Nordin, N. and Fook, C.Y., 2017. Organisational Justice and Organisational
Citizenship Behaviour: Evidence from A Developing Country. Global Business &
Management Research, 9.
Waribo, and et.al., 2020. Examining employees’ behavioural outcomes within the context of
organisational justice. Contemporary Social Science, 15(4), pp.430-445.
Wilkinson, and et.al., 2018. Voices unheard: employee voice in the new century.
Wong, Y.W. and Wong, Y.T., 2017. The effects of perceived organisational support and
affective commitment on turnover intention. Journal of Chinese Human Resource
Management.