Organizational Behaviour Report: Tesco's Culture and Motivation

This report provides a comprehensive analysis of organizational behavior within Tesco, a leading UK retailer. It begins by examining the influence of organizational culture, politics, and power on individual and team behavior and performance. The report then delves into content and process theories of motivation, such as Maslow's hierarchy of needs and Adams' Equity Theory, and explores how motivational techniques can be effectively applied to achieve organizational goals. Furthermore, the report assesses the characteristics of effective and ineffective teams, highlighting key factors that contribute to team success. Finally, it applies concepts and philosophies of organizational behavior to a specific business situation within Tesco, providing insights into how these principles can be used to improve organizational outcomes. The report references various academic sources to support its analysis and concludes with a summary of key findings and recommendations.

Organizational Behaviour

CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1. Analysis of organization’s culture, politics and power that can be influence individual
and team behaviour and performance..........................................................................................1
LO2. How content and process theories of motivation and motivational techniques, enables
effective achievement of goals in an organizational context.......................................................3
LO3. Understanding of what makes an effective team as opposed to an ineffective team.........6
LO4. Applying concepts and philosophies of OB within an organizational context and as per
the given business situation.........................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
BIBLIOGRAPGY..........................................................................................................................14

INTRODUCTION
There are different types of issues that are faced within the organization. It is important
that the management understand these issues and take appropriate steps so that they are able to
improve the performance (Belschak and Hartog, 2010). Present report is focused on Tesco which
is one of the top retails in UK and aim at understanding their customers and providing them
services accordingly. This report covers organization’s culture, politics and power that influences
the individual’s behaviour and performance. Further, it covers applying concepts and
philosophies of organizational behaviour within the given situation.
LO 1. Analysis of organization’s culture, politics and power that can be influence individual and
team behaviour and performance
There are different types of cultures that are followed at various firms. These are highly
effective enough to carry out the business and in maintaining healthy environment in the
organization. Culture within the firm can be determined to be the system of shared values, beliefs
and assumptions that governs how people act or behave within the organization (Perkins and
Arvinen-Muondo, 2013). These have strong influence on people and provide them understanding
to dress, perform and act in accordance with their job. There are different types of cultures that
can be followed within the organization. In this context, it includes power, role, task and person.
Power: As per this culture, power is given to a person and they are responsible to make
sure that employees are able to achieve their goals and objectives. For example Google is the
best example of power culture. It may help in taking better strategical decision for the
functioning of the company. Further, decentralization of power so that it do not lie in the hands
of a single person. People working at lower level management can be given some responsibilities
so that they can have some sense of belongingness to the entity (Zaleznik, 2017).
Role: Each person is provided with specific set of roles that has to be performed by them.
It enables to reduce the rate of issues or confusion and helps to focus more on work given. Tesco
follows this culture. It helps Tesco in better functioning as all the duties being extended to the
employees are distributed in the well defined manner. It is ensured that the management and
employees coordinate and cooperate so that the best can be delivered to the customers in the end
(Perkins and Arvinen-Muondo, 2013).
1

Task: In this culture, employees are given with specific tasks that they have to complete
within the speculated time period. For example, HSBC follows this organizational culture
(Perkins and Arvinen-Muondo, 2013). A team of 2 to 4 members is formed having different
abilities in order to achieve the objective of the task effectively. The division of the team clearly
relies on skills and capabilities that are being possessed by the members so that goals can be
achieved effectively.
Person: Each and every person has their own set of capabilities, they are provided with
roles as per their preference. It helps them in performing in the best possible manner. It also
increases job satisfaction level of the employees further boosting up their morale to perform a
particular job. They tend to perform the duties where they can use their capabilities and
knowledge. It is has a positive impact on sales and profitability of the organization as well
(Wood and et.al., 2016).
Hofstede cultural dimensions theory can be determined as a framework for cross culture
communication. From the findings, there are four dimensions that distinguish it from other
culture. The model is highly effective for the Tesco to set their culture in which employees are
able to perform with their full efficiency (Parikh, 2010). With time, there are many changes that
have taken place in which changes are identified in the type of environment that should be
carried. There are six dimensions of culture that have been discussed in this model. These
dimensions are as follows:
 Power Distance Index (high versus low): The dimension discusses regarding unequal
distribution of power at the workplace where people having power utilize it to fulfil their
own interest. In case of Tesco this dimension of model is applicable as power is
distributed as per the role of the individual in the company (Sweetman and et.al., 2011).
 Individualism Versus Collectivism: Every individual at the workplace tends to work for
their own goal rather than working in collective manner to achieve the organizational
goals.
 Masculinity Versus Femininity: The work distributed based upon the gender of the
employees as some of the organization thinks that males are more capable to perform a
task rather than females (Christina, Daniels and Waterson, 2014). The dimension is not
applicable on Tesco.
2

 Uncertainty Avoidance Index (high versus low): People with these characteristics think
that future is uncertain and which lies in the hands of God. Hence, they do not put
adequate amount of efforts in their functions.
 Pragmatic Versus Normative: These people are involved in long term planning and
plan their strategies in such a manner so that they can achieve their long-term goals.
These types of people help Tesco to opt for their goals and achieve success in the
industrial market.
 Indulgence Versus Restraint: The concept is followed as it helps in encouraging
relatively free gratification of people's own drives and emotions. It includes, enjoying
their life and having fun.
Politics and power at Tesco
Organizational politics can be determined to be unofficial, informal and the efforts that
are made behind the scenes that improves the performance level. Further, there are changes that
take place in respect with personal, structural and organizational changes due to which business
performance gets negatively affected.
Power can be focused on the individual property viewpoint in which the individual and
relationship highly influence the requirements. There are certain set of expectations that people
have towards the work that is given to them (Perkins and Arvinen-Muondo, 2013). When they
are able to attain their power increases.
From the study conducted, it can be stated that Tesco should make use of power culture,
in which the employees follow directions from one person as it will help the firm to raise their
performance level in effective manner. In addition to this, it can be interpret that Tesco following
all rules and regulations in systematic way at workplace. The company operating creative
operations through they will easily concentrate on different areas to expand their operations.
Furthermore, all rules and regulations carefully followed by the company to operate systematic
work performance. Moreover, all different kinds of activities has been performed by the selected
enterprise which make effective functioning. In this way, individual develop their activities on
concentrate to make structural changes in the business.
3

LO2. How content and process theories of motivation and motivational techniques, enables
effective achievement of goals in an organizational context
There are many factors that influence an employee towards raising their motivation level.
Among all these, it is important for a person to have motivation as this enables to make sure that
the work that is provided is being performed with their willingness (Belschak and Hartog, 2010).
According to content theory, it provides information to why there is requirement of change as per
change in time. On the other hand, process theory focuses on providing information regarding
the behaviour for directing, sustaining and energizing. Apart from this, there are other set of
strategies that are applied by the business so that they are able to raise motivational level of
employees. In this context, it includes intrinsic and extrinsic motivation. Intrinsic motivation can
be determined to be the behaviour that drives internal rewards. On the other hand, extrinsic
motivation is determined to be the rewards that are given to employees like fame, grades, money,
etc. (Eid and et.al., 2012).
All these aspects are highly effective to make sure that workers are boosted up and they
work with their full efficiency. Firms also make use of motivational theories like Maslow’s
hierarchy of need, Theory X and Theory Y, etc. All these are focused on raising the motivational
level of employees. Apart from this, there are other strategies like incentives, providing holidays,
informal meetings, etc. that are also provided by the organizations so that they are able to
develop interest among workers (Zaleznik, 2017).
4

Figure 1: Maslow’s Hierarchy of Needs Theory
(Source: Maslow’s Hierarchy of Needs Theory, 2014)
From the above figure, it can be stated that this motivational theory covers all the aspects
with the help of which workers can be boosted up.
Further, it is also identified that the rate of employee’s turnover is high at Tesco. There
are many reasons that are identified for this reason. In this context, one of the main reason for
this is lack of motivation. When workers do not have the interest or willingness to work, then it
affects the business and this becomes the reason due to which employees leave the firm (Saks
and Gruman, 2011). It is important for cited firm to make use of Maslow’s hierarchy of need so
that they are able to cover all the essential areas with the help of which workers within the
business can be motivated.
Further, there are certain set of roles that has to be performed by each of the employee
and when they are not able to perform their set of roles in effective manner, then it affects the
business negatively. It requires to have skills that focus on performing the given roles effectively
and efficiently. Motivation also gets influenced with the type of leadership that are followed. It is
5

important for the business to make sure that there are effective leaders who are able to support
the employees and understand the issues that are faced by workers (Žydžiūnaitė and Lepaitė,
2011). These are highly effective to boost up the moral and performance level of employees.
Process Theory: Adams’ Equity Theory
The theory was developed by John Stacey Adams in 1963. It concentrated on the fact that
there are few desires that are required to be fulfilled by the employees. They tend to put extreme
amount of effort to some work with the hope to get adequate return. However, employees get de
motivated if they feel that the input and efforts they put in the particular project is more than they
are able to generate return from it. It also leads to increase in the staff turnover ratio of the
company as well (Carmona, 2016). Some of the common inputs put by employees includes,
commitment, efforts, loyalty towards work, Trust in top level management, hard work, acting
skills, ability, adaptability, flexibility, support of colleagues, acceptance of peers, determination,
enthusiasm, and personal sacrifice. The output they get to achieve from the efforts being put in
the project may be in the form of monetary and non monetary terms. Monetary can be through
salary, hike in salary, financial incentives, rewards, bonuses, etc. However, non monetary
benefits includes, recognition at the workplace, sense of belongingness, chances to contribute
towards the success, fringe benefits etc. They also expect job security, praise, responsibilities,
reputation, etc. in return of the efforts being put by them in order to achieve the task.
Hence, Tesco must have adequate rewarding policies in the organization so that the staff
can be kept happy and motivated towards the tasks. Further, it also helps in accomplishing the
goals in a well defined manner. This will help the employees to motivate themselves to work and
achieve the goals. It will further help in achieving the organizational goals as well. High
performance working environment can be created in the organization which can lead to increase
in the market share of the company as well (Eid and et.al., 2012).
Importance of Soft skills for managers and teams
It is a combination of character traits, career attributes, social intelligence, emotional and
intelligence quotients which helps an individual to easily navigate in the environment. It is
important that the individual must possess adequate amount of soft skills such as team work,
6

appropriate communication skill set, problem solving techniques etc. These skills help in
development of internal relationships between the employees and management (Zaleznik, 2017).
Further, it plays an important role development of the career of subordinates as well. It is
important to make use of soft skills while delegating authorities and strategic decision making
in the organization. Tesco gives training to its top level management to generate soft skills so
that effective management can be initiated at the work place. A crucial role is played by soft
skills who are at the managerial posts and for those who wants to reach at that level. The way a
person communicate, attitude towards the work, emotional intelligence helps in achieving
success in its career (Belschak and Hartog, 2010)
LO3. Understanding of what makes an effective team as opposed to an ineffective team
There are various roles that have to be played by the employees and the work that is
given to them requires to be completed within the time given. When a task is given to be
performed by single employees, then to total time that is taken will be high when compared with
a group that performs same task. Each and every person has their set of skills and capabilities.
When employees work in a team, then they are able to perform their set of roles in effectively.
Further, they are able to develop the skills and performance level (Sweetman and et.al., 2011).
Further, there are different type of organizational teams that are focused on perform various type
of roles so that the business operations can be performed in efficiently. In this context, it includes
“problem solving team”. This is a type of team in which there are people involved who have
diverse set of capabilities and they all work together so that the issues that are faced by the
business can be solved quickly and easily. They tend to focus on one or the other problems that
is arising in the organization and functions as and when required. The team is then dismantled as
and when the purpose of the team gets solved. Therefore, the existence of the team is not forever
(Zaleznik, 2017). Further, it includes “functional team” in which all the employees involved in
the group have common functional expertise and they all share same objectives. There is a
manager of the department of functional team under whom various other subordinates work. The
decision making authority lies in the hands of the manager and helps the team to achieve the
personal goals as well as organizational objectives. Apart from this, it also includes “project
team” in which members belong to different functions, work together so that the given work can
be implemented without any issue. Further, there is no manager subordinate relationship between
the people working in this team. However, they belong to different departments having varied
7

skills and abilities so that objectives of the project can be efficiently achieved. Another type of
team that can be there in the organization is “Virtual teams” which are being framed digitally.
These are the people who contact with each other through video conferencing, phone calls and
other digital media to achieve the goals. Consultancy services are received by the organization
through these types of teams which are not physically present at the workplace but have adequate
involvement in the functions.
With time, there are many changes that have taken place in which advancement in
technology has helped in connecting with people around the world. This is helpful enough to
develop strong relationship with other employees in effectively. In virtual team, employees are
able to get connected with each other with the help of online communication. There are
collaborations technologies and conference that take place and discussions are done with
workers. Tesco adopt these type of teams as and when it is required as per the prevailing
situation in the environment. It helps in making the functions easy for the company and
appropriate actions can be taken without any delay.
There are a good deal of research that are conducted on team working, so as to
understand the behaviour that are carried out by individuals within a team. In this context, it
includes Belbin’s typology that is helpful to make effective team (Eid and et.al., 2012). Further,
it also includes Tuckman’s team development model. Both these models are highly effective to
make sure that employees are able to identify their set of roles that has to be played by them. As
per Tuckman, there are four different type of steps that are involved in order to form a team. The
four main steps of Tuckman's theory are:
 Forming: At this stage, people belonging to different background and interest are
brought together to form a team. They tend to share different opinions but now on they
have to perform a similar task to achieve common objectives and goals of the team.
 Storming: At this stage, different opinions of the individual are put together which
creates conflicts between them. Every individual have its own way to conduct a particular
task and hence they are not able to reach to a common strategy for performing a
particular task.
 Norming: At this stage, when all the team mates have already been involved in the
conflicts, they reach to a common strategy for which everyone agrees. Hence, an opinion
8

to perform a particular task is formed so that every individual of the team can perform in
that area (Wood and et.al., 2016).
 Performing: After deciding the common strategy, the plan of actions is then
implemented. Hence, they start acting in that direction to order to achieve the common
goal.
On the other hand, Belbin’s state that each employee possess different set of capabilities
and each of the roles played by them enable to improve the performance level and to support
each member within the team.
One of advantage in a team is that, employees carry different type of perception and these
are effective to understand the issues and take up appropriate steps to solve the conflict
(Sweetman and et.al., 2011). Tesco need to identify employees who are skilled and take up tasks
so that it can be completed effectively.
Conflict resolution is an important aspect of any organization. It helps in bringing the
peace back to the workplace. The common method that is used by the top level management for
conflict resolution is through communication and taking decisions after listening to the
perspective of both the parties involved in conflict. Some of the common skills that need to be
possessed by the management for conflict resolution includes the following:
 Management of stress at the workplace
 Free flown of communication so that it can be communicated as and when issue in the
organization arises.
 Assessment of agreement and disagreement points in the conflicts.
 Prioritizing the areas of conflicts
 Implementation of conflict resolution plan
LO4. Applying concepts and philosophies of OB within an organizational context and as per the
given business situation
Each and every employee has their own set of understanding and performing the given
task. It is important for the business to understand them and provide them roles accordingly. In
9

this process leaders play vital role in providing appropriate guidance and direction to others
(Parikh, 2010). In order to improve the performance within the team, it requires to have proper
understanding of each members. For this process, there is in need to proper interaction and
communication with each member so they are able to work in effective manner. Further, it
includes path goals theory that is based on leadership styles. This is highly effective to develop
healthy environment and to make employees to reach their goals. Main aim of this theory is to
increase the empowerment, satisfaction and motivation level of workers. All these are helpful to
make the workers productive manner of the organization (Perkins and Arvinen-Muondo, 2013).
As per this theory, there is leadership style that has to be selected and it is important and
effective to direct the employees in efficiently. Further, it is also important that there is proper
monitoring of employees take place so that the areas in which is required can be identified.
When the areas in which improvement is required, then training and development should be
provided. This way, it becomes helpful enough to raise the performance level and to improve the
skills for the type of roles that has to be played by the workers.
Further, it consists of contingency theory which states that there are no best way through
which proper corporation can be organized. This is dependent on the type of leadership and the
willingness of the employees towards supporting the business (Belschak and Hartog, 2010).
Employees are the face of organization as they have direct interaction with customers. It is
important that they perform their roles and responsibilities effectively. When customers are
satisfied, then it becomes favourable enough to raise sales and profitability. All these steps are
highly effective to make sure that Tesco is able to improve the working condition and to get
proper support from the side of employees so that they can attain the goals and objectives in
effective manner.
Path Goal theory of organizational culture
Path goal theory of organization culture was proposed by Robert House in 1971. It shows
that there are different roles of the leaders that need to be performed by him (Peng and Zhang,
2016). The leader to adjust its leadership style based upon the prevailing situation in the team.
Adoption of this theory helps in improving productivity and performance of people. The leader
himself takes all the responsibilities so that every member of the team is motivated enough to
10

perform their tasks. Tesco adopt this organizational culture to enhance its productivity. It is also
motivating and inspiring employees to perform their work in effective and efficient manner.
Contemporary barriers to effective behaviour
There are different barriers that arises in the organization which can affect the working of
a team and hence of the overall entity to the core. The barriers that can be faced by Tesco are as
follows:
 Perception of employees: There are various perceptions that are framed by the
employees which have directly linked to their behaviour. It can become relatively
difficult for the team leader to cope up with different perspectives that arise in the team
which can ultimately reduce its effectiveness (Eid and et.al., 2012).
 Emotions barrier: Team mates may not feel comfortable in discussing their problems
with top level management. They have the perception that their vulnerability will be
treated as an excuse which can lead to loss of job for them as well. Hence, team managers
at Tesco try to maintain healthy relationship with their employees so that problems can be
sort out easily (Christina, Daniels and Waterson, 2014).
 Communication: Adoption of inappropriate communication process can have direct
impact on the attainment of goals. In that case, free flow of communication must be
adopted in the environment so that the barrier of communication can be reduced (Moss,
2016).
 Cultural and social barrier: The perspective regarding culture and social
responsibilities may be different for every employee in the organization. It can act as a
barrier in effective functioning of the organization.
Adoption and consideration of these techniques can help in effective implementation of
strategies that can help the managers to achieve their objectives. Further, it will be suggested to
Tesco that it must opt for appropriate leadership style so that prevailing situation can be solved
and lead to its effective functioning. It helps in taking right action in the conditions when
decision making is difficult (Perkins and Arvinen-Muondo, 2013). It also helps in resolving the
11

conflicts that arise in the organization time to time. It is important for the leader to take
appropriate judgement when any conflict arise in the environment. It will help in better
management and will promote growth in the organization.
CONCLUSION
From this report, it can be stated that motivation plays vital role in improving the
performance level of workers. When employees are not motivation, they are not able to perform
in efficiently. Further, working is team is helpful to improve the quality of work done and to
complete the work within time. In addition to this, there issues that are faced by employees and
should be focused so that employees are able to work with their full efficiency.
12

REFERENCES
Books and Journals
Belschak, F. D. and Hartog, D. N., 2010. Pro‐self, prosocial, and pro‐organizational foci of
proactive behaviour: Differential antecedents and consequences. Journal of Occupational
and Organizational Psychology. 83(2). pp. 475-498.
Carmona, E. A., 2016. Social Environment and Decisions, Factors in Organizational Behavior of
a Business School in Mexico.
Christina, S., Daniels, K. and Waterson, P., 2014. How organisational behaviour and attitudes
can impact building energy use in the UK retail environment: a theoretical
framework. Architectural Engineering and Design Management, 10(1-2), pp.164-179.
Eid, J. and et.al., 2012. Leadership, psychological capital and safety research: Conceptual issues
and future research questions. Safety science. 50(1). pp. 55-61.
Moss, S., 2016. Organizational citizenship behavior.
Parikh., 2010. Organizational Behaviour. Tata McGraw-Hill Education.
Peng, J. and Zhang, J., 2016. How can core self-evaluations influence job burnout? The key roles
of organizational commitment and job satisfaction. Journal of health psychology. 21(1).
pp.50-59.
Perkins, S. and Arvinen-Muondo, R., 2013. Organizational Behaviour: People, Process, Work
and Human Resource Management. Kogan Page Publishers.
Saks, A. M. and Gruman, J. A., 2011. Organizational socialization and positive organizational
behaviour: Implications for theory, research, and practice. Canadian Journal of
Administrative Sciences/Revue Canadienne des Sciences de l'Administration. 28(1). pp.
14-26.
Sweetman, D. and et.al., 2011. Relationship between positive psychological capital and creative
performance. Canadian Journal of Administrative Sciences/Revue Canadienne des
Sciences de l'Administration. 28(1). pp. 4-13.
Wood, J.M., and et.al., 2016. Organisational behaviour: Core concepts and applications. John
Wiley & Sons Australia, Ltd..
Zaleznik, A., 2017. The Unconscious Life Of Organizations: Interpreting Organizational
Identity.: By Michael A. Diamond. Westport, CT: Quorum Books, 1993, xiv+ 251 pp.,
$59.95.
Žydžiūnaitė, V. and Lepaitė, D., 2011. Aspects of social processes within a business organization
for a positive development of organizational behaviour. Verslo ir teisės
aktualijos/Current Issues of Business and Law. 4. pp. 103-121.
13

Online
Maslow’s Hierarchy of Needs Theory. 2014. [Online]. Available through:<
http://www.researchhistory.org/2012/06/16/maslows-hierarchy-of-needs/> [Accessed on 30th
October 2017].
14

BIBLIOGRAPGY
https://www.entrepreneur.com/article/249174
https://www.scribd.com/doc/28706347/Example-2-Culture-and-Structure
https://www.mindtools.com/pages/article/newLDR_66.htm
15