People Management: Leadership, Motivation, and Diversity at Tesco

This report provides a comprehensive analysis of people management strategies within Tesco, specifically focusing on its operations in Saudi Arabia. It delves into various aspects of leadership, evaluating different leadership theories such as trait theory, behavioral theory, skills theory, contingency theory, path-goal theory, transactional theory, and transformational theory, emphasizing their significance in motivating employees and fostering an ethical approach. The report also explores motivational techniques and theories, including Maslow's hierarchy of needs, Alderfer's ERG theory, and the two-factor theory, highlighting their application in meeting employee needs and enhancing job satisfaction. Furthermore, the report examines the importance of change management, presenting and evaluating models like Lewin's change management model, McKinsey 7 S model, and Kotter's change management theory, essential for adapting to the dynamic global business environment. The study also includes a critical evaluation of diversity management theories and their effective implementation in a cross-cultural context, crucial for Tesco's international operations. Finally, the report emphasizes the importance of promoting a professional and ethical approach within organizations, ensuring overall organizational growth and success.

People Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1.1 Explanation, evaluation and justification of the techniques used in providing motivation to
employees....................................................................................................................................1
Evaluation of theories of leadership, motivation and change management:..........................1
Understanding and critically evaluating the theories of managing diversity & their effective
implementation in a cross cultural context..................................................................................7
Promoting an approach to organisations which is professional and ethical..............................10
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In order to attain the organisational growth, it is important to manage the people of entity
in an effective manner. Management of them involves their work activities and efficiency. In the
present study, people management in TESCO, Saudi Arabia has been discussed (Kearns, 2013).
This learning deals with the strategic international business management of TESCO, Saudi
Arabia. It is an international brand and hence, it is crucial for the firm to possess an ability to
deal with the employees of different cultures. Thus, theories of diversity management are
explained in this study. Further, in order to motivate the employees, this study consists of
leadership and motivational theories which should be implemented in an global establishment.
TASK
1.1 Explanation, evaluation and justification of the techniques used in providing motivation to
employees
Evaluation of theories of leadership, motivation and change management:
Motivated employees are the key requirement of an organisation to achieve the desired
goals. There are various techniques which can be used to enhance the motivation level of an
employee such as better communication, making the work environment positive, work-based
incentives and rewards, verbal appraisals, etc. Also, leaderships plays an important role in
motivating the employees.
There are some theories of effective leadership and they are as follows:
Leadership theories- Trait Theory- This theory states that traits of a leader plays a crucial role in their
leadership. Some qualities that are present in a good leader are responsibilities,
creativity, intelligence, etc. This theory aims on the analysation of mental, physical and
social characteristics (Kinicki and et. al., 2014). Behavioural theory- In contrary to trait theory, this theory aims to analyse the behaviour
of leader. For a good leader, it is essential to behave nicely with the employees and
juniors so that they would feel comfortable in working with the leader. Skills theory- For getting effective leadership in the entity, it is significant for leaders to
possess required abilities and skills. This theory states that acquired knowledge is the
real key to enhance leadership by enhancing the performance of leader.
1

 Contingency theory- This theory states that effective leadership is not only based on a
single factor but it relies on the different steps taken in different situations (Li, Jiang
and Lin, 2014). This theory somewhere depends on the trait theory, as different traits of
leaders makes them took variable decisions. Path-goal theory- This is the most critical theory in achieving organisational growth.
This theory is based on specifying a style of leadership which is best suitabke for the
employees and the environment of work. The goal of this theory is to enhance the
motivation of the employees. Transactional theory- This theory motivates the employees through their self-interest ,
there are exchanges take place between a leader and its followers. These exchanges took
place to achieve the day to days objectives. These exchanges involves four dimensions,
Contingent rewards, active management by exception, passive management by
exception and Laissez-faire.
 Transformational theory- In this type of theory, there is a high level of interaction set up
between leaders and employees which create a trust factor in between them both
(Manning and et. al., 2014). It is the most effective way to motivate employees.
These theories play a vital role in making an effective leader who can influence and
motivate the employees. They should have essential knowledge of the culture they are working
in. Being a leader of modern workplace, there are some duties which are to be followed to attain
the ethical approach. Ethical approach of leadership involves the areas of corporate social
responsibilities, social and community duties, etc. Thus, a modern leader should follow ethical
approach
It is also important for the organisation to have completely motivated and satisfied
employees as they act as the catalyst in attaining desired goals. It is mainly the role of a leader to
catalyse the various work processes in an organisation (Rakodi, 2014). in order to increase the
motivation levels of employees, there is a requirement to fulfil their needs related to their job.
There are many theories on motivation that can help leaders in motivating workers by fulfilling
their needs. Some of the motivational theories are as follows:
2

 Maslow's hierarchy of needs- This theory was proposed in the year 1943 by Abraham
Maslow. According to this theory, there are some needs of employees and the fulfilment
of same results in enhancing their motivation. There is a pyramid of hierarchy in this.
There are 5 levels of hierarchy namely physiological, safety, belongingness/social,
esteem and self-actualisation. In this pyramid, the more focus is given to lower level such
as self-actualisation as this tool highly impacts the employees. Alderfer's theory of ERG- In this theory of motivation, the needs are categorised into
three parts which are growth, relatedness and existence. It is similar to that of Maslow's
3
Illustration 1: Maslow's need hierarchy theory
(Source: Maslow’s Hierarchy of Needs: Theory,
Needs, Pyramid, 2017)
Illustration 2: ERG theory

hierarchy model till some extent. The existence needs are same as that of physiological
and safety needs of employees. Relativity as defined by Alderfer’s theory of ERG is
similar to social needs given by Maslow’s theory (Weaver and et. al., 2014). Similaryly,
growth in ERG theory corresponds to esteem and self-actualisation needs according to
Maslow’s theory. For example, Tesco implies effective systems which ensure their
employees about their safety and protection rights are implied. This way all the individual
physiological needs are assessed.
 Two factor theory- The two factors of this theory are hygiene and motivators. Hygiene
factors are those whose absence motivates the employees. In contrary to this, presence of
motivators helps in motivating the workforce at workplace. In presence of hygiene
factors, people feel dissatisfied. The absence of motivators however don't dissatisfy
people but just get failed to motivate them. For example, Tesco will be required to take
care of aspects such as salary, security and also they need to assure that proper working
conditions such as working-hours are assessed.
 Equity theory- This theory states that the motivation-level of an employee is coordination
with his level of perception in context to equity along with justice as well as fairness
practiced by an organisation’s management staff (van Hooft and et. al., 2015). Adding
more to this, the employee are usually in concern with their rewards and also with those
of others.
Changes are the only constant thing of nature. In context to TESCO which a global
entity, changes are the most common thing. In order to get prevent from any unwanted errors in
proper functioning of organisation, it is essential for them to have an effective change
management system. There are some change management models that can help entities and they
are as follows-
4
Illustration 3: 2 factor theory
(Source: Life Coaching, 2017)

 Lewin's change management model- This is the most popular model for managing
changes which was proposed in 1950 by Lewin. There are three stages of change
management in this model namely unfreeze, change and refreeze. In unfreeze phase of
this model, preparation of change plan takes place. This step also comprises of explaining
the reason of changes to people. Further, organisation looks into their core management
aspectsto examine change factors (Thomas, and et. al., 2014). The secondstep of Lewin’s
change management model, namely change, is that stage at which the real transition takes
place. This phase demands for various things such as development time, good leadership,
etc. In order to bring an effective change in the organisation, it is crucial for employees
and leaders to have effective communication between them. Last stage of process is
refreeze where the change which was accepted in the above step is implemented by
organisation. In this stage, employees again become stable. this is the reason that the last
phase is known as refreeze.
 McKinsey 7 S model- In this model, there are 7 stages with 'S' initial. It is the most
systematic model for change management. This model provides an understanding of the
organisation and its activities. Both emotional and practical change components are
integrated in this model. These stages are listed as below:
 Strategy: Strategy will further assist to formulate the planning procedures that will be
implied within the premises of organisations. Also this will further assist to carry the
overall practices in an organisation in a more strategic manner thereby assessing the key
objectives & targets.
 Structures: This will be assisting in determining the organisational structure and also to
find out the entities involved in reporting about various carried processes.
 System: This includes the diversified processes as well as activity-set which facilitate
members of staff to get engaged in doing a job.
 Shared Values: These tend to be known as subordinate-goals since they depict the
company values whose evidence is found in the corporate-culture thereby making the
work more ethical (Sobal, 2017).
 Style: This depicts the leadership-style which is to be adopted.
 Staff: This factor depicts the possessed capabilities within the employees working in an
organisation.
5

 Skills: The skills as well as competencies within the employees who work for a company
are usually included in this aspect. Kotter's change management theory- This theory is easy to follow and incorporate,
thus, it is the most adopted theory. This theory aims on accepting the change rather than
changing itself. In this theory, there are eight stages of change management and they are
as follows- Increase urgency- This step inspires people to move towards the objectives which are
realistic, relatable and attainable. Build the team- This stage is about getting appropriate candidate at the right place at
correct time. Depending upon the individual's skills, knowledge and seriousness, a team
is formed. Get the vision correct- The selected team is then responsible for preparing correct as well
as simple vision and strategy. Communicate- The communication regarding change and its need is done with the people
in this step (Renz, 2016). Effective communication is also an important part of the change
management. Empower action- In this step, empowerment of work activities is done by removing
hurdles in the way. Feedback is implemented in the formative way. Concentrate on short-term goal- In this stage, segmentation of goal is done. The
segmented goals are then aimed to complete. When the process of next goal is started , it
is necessary to assure the completion of previous one.= Don't give up- Continuity is the key requirement for attaining success in desired goals. It
is important not to give up during the process of chain management.
 Make change stick- Along with change management process, it is also important to
support the changes that are been made.
Understanding and critically evaluating the theories of managing diversity & their effective
implementation in a cross cultural context
Diversity management accounts to be a relatively new theory in context with
organisational-management. This theory was basically formulated because most of the leaders
within organisations are not very much skilled for managing the diversified population as well as
the workplace & marketplace in current scenario. With the advancement of complexity &
6

globalization in a business, the diversity-management begins to play a crucial role in context
with workplace (ARSTEIN, 2015.). With the growing level of complexity and global ization in
Tesco's business at Saudi Arabia, the need for implying the diversity management theories was
clearly justified. Henceforth, in context to Tesco, the various theories have been briefly analysed
as below :
General Approaches in accordance with Diversity Management
Institutional Theory:-
As per this theory, in order for determining the organisational structure, the aspect of
social-environment could not be separated in context to Tesco environment. For proper
understanding of the organisational structure, employee behaviour within the premises of
organisation possesses limiting-factors for example, laws, rules, legislations as well as norms
that are both professional & social (Brocke and Rosemann, 2014). In addition to the employee,
behaviour of organisations as whole is also included in this. Many of the organisations are often
found to be linked similar set of legislations, regulations and norms as well. So, there is a major
possibility that all these organisations would tend to follow a similar administrative-structure.
This characteristic depicts that all the organisations are often found to be thorough with the
existing norms. So, the norms and legislations that are followed at Saudi Arabia by Tesco tend to
be followed by other companies as well (Corbett and et.al., 2014). Henceforth, this assist in
halting of the legitimacy in context to company's procedures or operations that are carried out
currently. The proving up of the associated legitimacy by aid of their diversified processes these
organisations tend to clearly depict what their priorities actually are. This further assists in
accumulation of the resources from associated stakeholders that is suppliers or their entities.
Overall, it could be stated, in order for effectively becoming diverse, organisations need
to satisfy individuals both inside and outside their premises that all the associated laws as well as
norms are strictly being followed. In case, it is found that laws have been violated, then the
various operations that are carried out by the organisation come within the circle of questioning
(Daft and Marcic, 2016). Also, termination process shall be implied in context to violation of the
laws.
Resource-Based Theory:-
7

When the aspect of diversity is implemented within an organisation then, its various
sources are affected as well. So, this affecting is clearly explained via aid of Resources based
theory. Contextualising upon the types of resources, there are namely 4 categories : financial-
capital, corporate-capital, human-capital and physical-capital. All the sources coming within the
aura of these 4 categories either limit the operations thereby inhibiting them (Elliott and et.al.,
2016.). Also, the operations within organisations could be helped by such type of sources. Tesco
utilises these type of resources in order improving their business practices on a consistent basis.
This diversity of Tesco makes it gain ample of advantages than those organisations which are
found to be of homogeneous nature. Also, with the aid of this approach, whenever firm plans to
implement an innovative-strategy then, racial-diversity often leads to enhancement of existing
financial-resources.
Man recent study conducted by various researchers have led to the fact that, lesser
amount of turnover are experienced at companies where the principles of diversity management
are strictly implied (Erisman, 2015). Moreover, the productivity is also enhanced by the positive
impacts of diversity management practices. The reason behind this enhancement is the effective
coordination of implied innovative strategy with diversity-management practices.
Specific Approach in context with Management of Diversity
→ Mainstream Approach:
The Mainstream-approach usually takes in consideration 2 theories which account to be
self categorization and social identity. According to Erisman (2015) The theory of self
categorization accounts to be that concept which clearly gives an explanation about the situation
in which individual within an organisation tends to perceive the other people's collection overall
as a group. This also includes the associated consequences which usually add up during this
perceiving process. As per the views of Eshkoor and et.al., (2015) Emphasizing upon the theory
of social identity, the existing membership as well as behaviour in accordance with the groups,
are described. These 2 approaches are mainly responsible for managing the diversity within an
organisation both at micro and macro levels.
Coming towards the managing of diversity at macro-level that is at organisational-level,
diversity management tends to make the existing relation in between performance and workforce
more moderate. Tesco implies the principles of Ely's and Thomas model in order to manage their
8

diversity which is one of the most popular theory among many of diverse organisations.
According to the set of perspectives formulated by Ely and Thomas, it was found out that
majority of the work-groups function at their best level under the perspective of integration &
learning (Furlong, 2016.). This particular perspective helps in creation of positive relations
among the various existing inter groups. Also, this model helps in creating the feeling to value
and respect members of other groups. Also, this aids the employees in an organisation to have
positive feelings regrading their possessed racial-identity.
Contextualising upon the micro-level of diversity management, that is employee-level,
deals with the managing & understanding of diversified discriminations, stereotype as well as
prejudice. However, Gemino, Reich and Sauer, (2015) asserted discrimination is ought to get
eliminated by effective control upon aspects of stereotype & prejudice.
→ Approach of the Practitioner or Consultant :
The positive aspects in coordination with increasing productivity makes the workplace
more diverse. As per the views of Hamari, Sjöklint and Ukkonen, (2016), this approach lets the
organisation to emphasize upon the benefits entertained by their business practices thereby
enhancing the diversity. The most accountable issue tends to be finding of qualified workers who
readily satisfy the criteria necessary for the job. Henceforth, to assess the need, organisations
have to examine all the possible means which would assist them in getting such deserving
workers.
In addition to the employees, employers are also able to easily understand their
requirements regarding the diversified customer-base. If employers are successfully able to
create a level of diversity within their workplaces then, success in economic terms would be
easily translated by aid of employees. And if the workplace is found out to be of diverse nature
then, diverse-employees would be able to easily understand the needs and wants of consumers.
Besides enhancing the overall production process, this particular approach aids in enforcing
innovative methods as well as mitigation costings.
Promoting an approach to organisations which is professional and ethical
Every organisation formulates a certain set of goals and vision which they plan or wish to
achieve in their future. According to Hamari, Sjöklint and Ukkonen, (2016), the achieving of this
goals plays an important role in enhancing their sales and profits. Focussing upon these key goals
9

also leads towards building up of effective relationships at the premises of organisation. This
also involves the necessity that there has to be ethical-conduct which is to be followed by the
employees. The following of a particular ethical conduct assures that the reputation build up by
business is properly maintained. Tesco also implies various elements that come under the proper
and systematic approach towards organisations. They regularly train their employers as well as
employees in order for increasing their efficiency. So the professional and ethical approach
which organisation needs to follow covers the following aspects : Training the employees : The employees need to be properly trained in order to let them
know about ethical code of conduct currently implied at the organisation. In accordance
with this, regular training sessions need to be organised which will guide them towards
existence of ethical dilemmas within the staff members as argued by Johns and et. al.,
(2016). The organising of more training sessions will make sure that the organisation as
whole functions in properly formulated ethical manner. Rewarding the ethical behaviour : Rewards always encourage the employees and other
authorities within an organisation to carry their behaviour as per the set ethical conduct.
Reward acts as a motivation for the employees. So, if employees are rewarded for their
undertaken ethical decisions then, proper suit is definitely going to be followed by them.
 Using an example for leading : According to Kamoche and et. al., (2013) an employee
usually follows the examples set by company. This arises the necessity of placing the
managers at higher ethical-standards thereby making them credible for effectively
communicating the staff-members to follow the same.
Conclusion
From the report it can overall be concluded that motivating the employees plays an
effective role in enhancing their efficiency. In order to do so, the role of leadership, motivation
and even chain management plays an effective role. Also, with increasing globalized and
complex operations, Tesco has successfully assessed the managing diversity theories in context
to their cross-cultural context. Also, in order for ensuring that a proper ethical code of conduct is
followed at organisation, consistent approaches of employee-training, rewarding prove to be
highly beneficial.
10