Organisational Behaviour Report: Culture's Impact on Tesco's Success

This report provides an in-depth analysis of organizational behavior, focusing on the multinational grocery retailer Tesco. It begins with an executive summary and introduction, outlining the report's objectives, which include understanding organizational culture, its impact on effectiveness, and its role in employee motivation. The main body identifies Tesco's organizational culture using Handy's theory, specifically highlighting its role culture. The report then explores how organizational culture enhances effectiveness through communication models, such as the interactional model, and motivates employees using Maslow's hierarchy of needs. The report concludes by evaluating how Tesco can leverage its culture to enhance success, summarizing key findings and providing references.

Organisational
Behaviour

EXECUTIVE SUMMARY
Organisational behaviour play an essential role in understanding the behaviour of
different employees working in an organisation. It provide effective knowledge to company to
understand how employees are react towards particular situation and how they perform a task.
Organisation behaviour is a boarder term which includes leadership, training and development
and so on. Culture play an essential role in influencing the behaviour of a employee.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Identify culture of selected firm with the help of appropriate theory of organisation culture....4
Explain how culture of an organisation helps in improving organisation effectiveness. ...........7
Explain the role of culture in motivating employee of organisation. .........................................9
Evaluate how an organisation can use it culture in enhancing their success ...........................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDICES...............................................................................................................................12

INTRODUCTION
Main objective of this report is to understand the concept of organisational behaviour. It
refers to a term in which helps an organisation in understanding, prediction and management of
human behaviour for both individual and group inside an organisation. Organisation behaviour
includes the reaction of various employees in an organisation. For successfully working in an
organisation its very important to understand other behaviour. For maintaining a healthy working
environment its very important that every member of organisation needs to effectively adopt the
organisation environment and work towards achievement of common goal. Its very important for
organisation to understand the behaviour of their employees because it will affect the operations
of business. For this report Tesco company is taking into consideration. It is an multinational
groceries and general merchandise retailer company. Which is founded by Jack Cohen, in 1919
and its headquarter is in Landon, England, U.K. It is a public limited company which deals with
various supermarkets, hypermarket, superstores, convenience shop. Almost 423,092 numbers of
employees are efficiently working with it. This report includes various theories of organisational
culture, communication and motivation. Other than this it includes various points which helps in
improving organisational effectiveness. It includes various role of culture on employee
motivation.
MAIN BODY
Identify culture of selected firm with the help of appropriate theory of organisation culture
Culture refer to various characteristics and knowledge of group of people which includes
language, religion, cuisine, social habits, music and art and so on (Balwant, 2018).While
organisation culture refers to the proper way to behave inside an organisation. This type of
culture is includes various beliefs and values of leaders and effectively communicate and
reinforced by using different methods. Organisation culture helps an company to shape its
employee perception and behaviour. In context of selected firm, its organisation culture is
described below with the help of various organisational culture.
Handy theory of organisational culture-

This model is developed by Charles Handy and Roger Harrison in a practical way.
Through their research they analysed that how an employee in one company is treated totally
different in other. This model is based on four important types of organisation. This theory is
based on two dimensions which are the power was distributed and level of cooperation. Power
distribution means top level management use which type of approach for working such as
bottom-up and top-down approach. Bottom- up approach means the power distribution is very
high and organisation expect that their employees take their own responsibility and take
independent decisions. While in case of top-down approach power is not distributed and the
owner of company take all of its decision. In context of Tesco it has a hierarchical organisation
structure and they more focus on top-down approach. All important decisions related to selected
company is taken by higher authorities and very little amount of power is given to lower level
employees. This will help organisation in effectively performing their business operations (De
and et. al. 2018).
 Persona culture- It refers to a kind of people oriented culture and also known as
Dionysus culture. An organisation with this type of person culture, an individual person
seen himself as a unique and superior to the organisation. An organisation with having

person culture is just about collection of individual who is consider for working for same
organisation. In context of selected firm, there is a small group of these type of people.
While the level of power distribution is high but low level of cooperation and they take
their own decisions while performing any task.
 Role culture- It refers to an organisation culture which is based on rules which is also
known as Apollo culture (Erthal and Marques, 2018). In this type of organisation culture
power is determine by a person who performing a role of higher authority in organisation
structure. Role culture is developed through a hierarchical organisation structure which
includes a long chain of command. An organisation with role culture is very bureaucratic.
In this type of organisation culture both the power distribution and cooperation level is
low. All the decisions are taken by higher authorities. In context of selected company,
their employees are much secure and stable. In this type of culture rules, obligations,
agreements and procedures are strictly follow. According to role culture more preference
is given to clear hierarchy rather than performance.
 Task culture- In this type of culture both the power distribution and level of cooperation
is high. It is also known as Athena culture. In task culture employees of organisation are
highly experienced and problem solving oriented. They complete their task and project
without interference of other higher authority. In context of selected firm, they develop
temporary teams in which cooperation level is high. In task culture of an organisation
more importance is given to result rather than rules. In this type of culture expertise and
flexibility are central and coordination is depends on requirement of project.
 Power culture- In this type of culture the level of power distribution and cooperation
both are high. All the decisions are taken by higher authorities in power culture
organisation. The organisation having such type of organisation culture have a flat
organisation structure and directions is provided by charismatic leader. Power culture is
also known as Zeus culture, in this type of organisation culture relationship between
employees are determined by leaders. In this type of organisation culture the founder is a
great leader who efferently control the entire organisation (Geramian and et. al. 2019).
From above discussion it is identified that Tesco company have a effective role culture in
their organisation. All the decisions are taken by higher authorities and roles and duties of every
employee is clearly defined. This will help selected company to maintain high level safety,

stability, conservatism and predictability. In context of selected firm, they give more importance
to rule and regulation, which maintain a good working environment in organisation. Its role
culture in organisation helps in effectively and efficiently managing its business operations
(Jacobs and Manzi, 2020).
Explain how culture of an organisation helps in improving organisation effectiveness.
Culture of an organisation play an essential role in improving efficiency of an
organisation. Culture has a direct impact on performance of workers and growth of organisation.
The way a employee intact with other and outside the company describe the culture of an
organisation. Culture provide a different identity to an organisation which make it different from
other. In context of selected company, communication play an essential role in improving its
effectiveness. Effective communication is very important for creating a positive culture at
workplace which will maintain a good relationship between employees and management. In
context of selected company, its culture of free communication between employee and
management helps in reducing conflicts and disputes which will increase the performance of
employees. Tesco has a culture of essential morning meetings which helps in effective
communication and maintain a good relationship between employee and employer. In context of
selected company, importance of its culture in improving organisation effectiveness is explain
with the help of communication model is discuss below:
Interactional model of communication-

Communication refers to a process of transferring facts, idea, feeling, information and so
on from one person to another and make them understandable. The interactional model of
communication is developed by Wilbur Schramm in 1997. according to him communication
refers to a process in which there are two important participants which are sender and receiver
which generate the meaning of message by sending it and receiving feedback within a
physiological and physical context (Martínez and et. al. 2019). This communication model make
a two way process of communication by including feedback in it. Feedback refers to the
response of receiver to sender after understanding the message of sender. By including feedback
in communication model it leads to more complex to understand the role of participant in a
communication encounter. In comparison of other models of communication this model does
not have one sender, message and receiver rather than this it includes two sender and receivers
who exchange information. For a effective communication both the sender and receiver play an
important role.
In context of Tesco they select this model of communication for better flow and
understanding of information. Their organisation culture is include interactional model of
communication. They regularly communicate to their workers and take feedback from them so
that no misunderstanding is developed between them. Selected firm encourage employment
engagement by regularly communicating with them. Taking feedback increase employees
motivation and reduce all conflicts and disputes. Good communication culture of selected firm
helps in establishing good relationship between employee and organisation and it also increase
the performance of employee and organisation (Morales and et. al. 2019).
Explain the role of culture in motivating employee of organisation.
Culture play an essential role in motivating employees of an organisation. In context of selected
firm, various important role of its culture which helps in motivating their employees are
evaluated blow with the help of motivational theory.
Abraham Maslow's Hierarchy of needs-

This theory is given by Abraham Maslow in 1943. This theory is based on the concept of
human needs and divide the requirements and need of a person into five categories. In context of
selected firm these five needs are discuss below:
 Survival needs- It refers to the basic requirement of a person which are required for
survival of a person. In context of selected firm it provide fair wages to its employees
which help them to fulfil their basic need. Providing fair wages encourage employee to
do work with their full efficiency (Ogbu and et. al. 2020).
 Security needs- According to this theory it is analysis that once the survival need is
fulfil the need of security is developed. In this people wants to experience order and
control on their lives. It includes emotional needs, financial need, law and order, freedom
and so on. In context of Tesco, it has a culture of strong and ethical leadership and its
culture provide a workplace that does not have any kind of bullying and harassment.
Which will motivates their employee to do work with their full productivity and
efficiency.
 Belonging needs- After basic and safety needs are completed the third level of need is
social and a person wants a feeling of belongingness. In context of selected firm, they

have a culture of paying more attention on training needs and on-boarding which helps
in fulfil this need effectively. Encouraging employees by establishing a culture of open
line communication between employee and management help an organisation to
motivate their employees.
 Esteem need- Maslow say that this need is the most important for all age people and it is
divided into two important categories which are esteem for oneself and desire of
reputation from other. In context of selected firm, it has a culture of give awards to
employee on their achievement and they also share success story of their employees on
intranet. Which helps an organisation in motivating their employees (Rezaei, and et. al.
2018).
 Self-actualization need- This is the highest level need of a human being in maslow
hierarchy . It refers to realization of personal growth and peak experiences. In context of
selected firm, it has a culture of conducting wellness programs and corporate social
responsibility initiatives which helps employees in fulfilling their self-actualization need.
It will also motivate employee to do efficient work towards achievement of goal.
From above discussion it is analysed that selected organisation culture helps in
motivation their employees towards achievement of particular task and goal. A good
organisation culture play an important role in organisation which helps in motivating employees
and this is describe from various point which are discuss below:
Lower Absenteeism- In context of selected firm, its highly- engaged organisational culture
helps in motivating employees which will reduce its absenteeism and increase it productivity
(Rezaei and et. al. 2018).
Improve retention- In context of selected firm, its good environment culture helps in retaining
their good employees for a long period of time. Which show that their employers are satisfied
and motivated with their company culture (Varii and et. al. 2020).
Evaluate how an organisation can use it culture in enhancing their success
From above discussion it is analysed that selected firm have a good organisation culture
which helps in motivating their employees. For better success and growth of company it is
evaluated that company needs to adopt a proper selection process. This is because many times it
happens that managers are in hurry and select their employees only after conducting a interview
and analysing their skills and knowledge. Managers fill the vacant post in their organisation with

a high skills person but they does not know whether the candidate is stable for organisation
culture or not. In terms of this selected company needs to conduct a proper selection process and
ask question to a person at the time of interview regarding what he think about selected company
culture. This will help selected company to analysing the behaviour of that person and whether it
is capable in doing work with organisation culture or not. Selecting a right candidate whose
behaviour is match with organisation culture helps an organisation in achieving higher growth in
industry (Wood and et. al. 2019).
CONCLUSION
From above discussion on this report it is analysed that organisation culture play an
important role in success and growth of an organisation. Employee behaviour influence the
growth and culture of organisation most. In this report various motivational, communicational
and organisational culture theories are describe. Which helps an organisation in maintain a good
relation between employee and employer. In this report Handy model of organisation culture is
discusses which is divided into four important parts that are personal culture, role culture, task
culture, power culture. Other than this interactional model of communication helps in motivating
employees which leads to increase in organisational effectiveness. A culture of motivating
employees in an organisation helps in achieving higher growth and successfully achieving goal
of organisation. In last it is analysed that a culture of conduct proper selection helps an
organisation to achieve higher growth and success.

REFERENCES
Books and journals
Balwant, P.T., 2018. The meaning of student engagement and disengagement in the classroom
context: Lessons from organisational behaviour. Journal of Further and Higher
Education. 42(3). pp.389-401.
De Sanctis, and et. al. 2018. Resilience for lean organisational network. International Journal of
Production Research. 56(21). pp.6917-6936.
Erthal, A. and Marques, L., 2018. National culture and organisational culture in lean
organisations: a systematic review. Production Planning & Control. 29(8). pp.668-687.
Geramian, A., and et. al. 2019. Fuzzy logic-based FMEA robust design: a quantitative approach
for robustness against groupthink in group/team decision-making. International Journal
of Production Research. 57(5). pp.1331-1344.
Jacobs, K. and Manzi, T., 2020. Conceptualising ‘financialisation’: governance, organisational
behaviour and social interaction in UK housing. International Journal of Housing
Policy. 20(2). pp.184-202.
Martínez-Costa, M., and et. al. 2019. The effect of organisational learning on interorganisational
collaborations in innovation: an empirical study in SMEs. Knowledge Management
Research & Practice. 17(2). pp.137-150.
Morales-Sánchez, R, and et. al. 2019. How to improve organisational citizenship behaviour by
combining ability, motivation and opportunity. Employee Relations: The International
Journal.
Ogbu Edeh PhD, F., and et. al. 2020. Knowledge Management and Extra-role Behaviour: The
Role of Organisational Culture. Journal of Business and Management Studies (JBMS).
Rezaei, A., and et. al. 2018. Effect of organisational culture and organisational learning on
organisational innovation: an empirical investigation. International Journal of
Productivity and Quality Management. 23(3). pp.307-327.
Rezaei, A., and et. al. 2018. Impact of knowledge creation and organisational learning on
organisational innovation: an empirical investigation. International Journal of Business
Innovation and Research. 16(1). pp.117-133.
Varii, M.Y., and et. al. 2020. Role of Organisational Culture of the University in Formation of
Psychological Readiness of Students to Assertive Behaviour. Journal of Intellectual
Disability-Diagnosis and Treatment. 8(3). pp.497-504.
Wood, J., and et. al. 2019. Organisational behaviour: Core concepts and applications. John Wiley
& Sons Australia, Ltd..
APPENDICES
Interview
A) What form of culture is you select and which helps in enhancing your performance?
After conducting interview, it is analysed that in total of 30 candidate, 20 have a response that
inclusive culture in organisation provide various opportunities in sharing their views and also
take participation in decision making.
B) What do you think about a effective communication can helps you in assuring high

consistency within team dynamics?
Among 30 candidates 27 candidate have a opinion that effective communication between
employee and employer helps them in increase consistency in learning of team dynamics. This
will also motivate them.
C) According to you monetary and non-monetary form of motivation provide more
benefits?
From 30 candidates 25 have a response in the favour of monetary benefits. According to them
monetary benefits provide higher satisfaction to employees and motivate them to do work with
their full efficiency.