Tesco: Leadership, Motivation Theories, and Group Behaviour Analysis

This report provides a comprehensive analysis of organizational behavior within Tesco, focusing on leadership styles, motivational theories, and group dynamics. It examines the impact of different leadership approaches, including Laissez-faire, autocratic, charismatic, bureaucratic, transactional, and transformational styles, on employee motivation during periods of change. The report also discusses the application of various motivational theories, such as Alderfer's ERG theory, Herzberg's Two-Factor theory, equity theory, reinforcement theory, and McClellan's Acquired Needs Theory, in the context of Tesco's operations. Furthermore, it evaluates the usefulness of Maslow's Hierarchy of Needs for managers at Tesco, exploring its implications for both employees and management. Finally, the report explains the nature of groups and group behavior within Tesco, distinguishing between formal and informal groups and assessing their impact on organizational objectives. The analysis highlights the importance of understanding these factors for enhancing employee performance and achieving organizational goals.

ORGANISATIONS AND
BEHAVIOUR

INTRODUCTION
The study of organisational behaviour highlights the effectiveness of behaviour of employee
and group members on the effectiveness of objectives of Tesco. Tesco is a retail joi9nt and number
one in the UK market. The company is generating excellent customer service earning customer
support throughput the world (ERG motivation theory Alderfer. 2013). The research discusses on the
use of leadership style by the company. Maslow and various motivational theory are studied to
identify their application in business activities of Tesco. Discussion are done on various factors that
affect the team's work and effectiveness. Tesco's use of technology is also analyse to identify the
positive and negative impact on the behaviour of employees working in the retail joint.
TASK 3
3.1 Impact of different leadership style on motivation in periods of change in Tesco.
Different leadership style have both positive and negative impact on the motivational level
of employees. Leadership is a relations between two people. This influence is exerted on the goal
achievement ability of employees.
Source: (Leaders Principle, 2012) Laissez-Faire/ Delegative Leadership style- In this type of leadership style the leaders
offers minimum guidance to the team members. The leader transfers the decision making
process to the member's of the team (DeOrtentiis. and et.al., 2013). The group members are
responsible for any change they make regarding the task of Tesco. This style posses negative
effect on the work environment during the period of change in Tesco. Poor leadership
Illustration 1: Different Leadership Style

hinders the production capacity of the employees and the team members feels demotivated. Autocratic Leadership style- In this style the leader only makes all the decision without any
input from the team members. The leader has all the authority regarding the task and
functioning of Tesco in the period of change. The group members feels negative and non-
capable about their role and responsibility (Mcleod. 2014). The members cannot challenge
the decision of the leaders thus this decreases the sense of motivation in the employees
during change. Thus this style has a negative impact on Tesco. Charismatic Leadership style- This leader has a enthusiastic approach towards the working
of Tesco. The leaders take decision and involves each member in the decision making
process during change. The members feel motivated as they are in control of their work
skills. The are highly motivated to work more then their capacity in Tesco (Cacioppe and
Stace. 2009). These leaders generate positive work environment in the period of change
among the employees and mangers of Tesco. Bureaucratic Leadership style- These leaders follows authors and other leaders. They prefer
to read procedures from the book itself and try to make the employees of Tesco to work
appropriately as per other leaders guidance. These books and guidance is not successful in
smooth of the team in the period of change. They lack in innovation in the team members
thus it brings a declining affect on the motivation of employees in Tesco. Transactional Leadership style- This style is highly efficient in raising the motivation as the
leader provides rewards to the employees on successful completion of the task. The mangers
reviews the performance of the employees and provides feedback based on the performance
criteria (Michael. 2013). The employees feel energetic and motivated to complete the task
with excellence. The employees do not resist to change if leaded by transactional leader.
 Transformational Leadership style- These leaders constantly motivate the employees to
increase their productivity and efficiency in the period of change. The leader enhances these
skills by constantly communicating between the management and the mangers of Tesco in
the process of change (Richardson. and Watt. 2010). The employees leaded by
transformational leaders are highly motivated.
The leader influences the behaviour of the subordinate by various leadership style. This
leadership style are very influential in motivation employees of Tesco.
3.2 Discussion on application of different motivational theories in Tesco
Application of motivational theory help to review development and growth of the employees
working Tesco. Tesco motivates employees by generating their skills and enhancing learning power
in the employees. The employees are constantly motivated and supported by the mangers and the
leader to generate maximum level of productivity.

1. Alderfer's ERG theory- Alderfer's classification of needs of employees i.e. growth needs,
existence needs, relatedness needs are helpful in generation of motivation among the
employees of Tesco (Harackiewicz. and et.al. 2014.). The retail joint tries to fulfil these
basic needs of employees to generate feeling of morality among the employees. Tesco's
mangers tries to recognize these needs in evaluation of motivation among the employees. By
fulfilling these formal needs of the employees the manger's at Tesco are able to increase
motivation among the employees.
2. Herzberg's Two Factor theory- According to Herzberg, motivators and hygiene factors are
responsible for raising motivation among the employees of Tesco. Hygiene factors
prevailing in the company for example, pay scale, company policies, work conditions, etc.,
can generate de motivation among the employees of Tesco. To bring out the motivation
among the employees Tesco focuses on growth opportunities of employees (Ankli and
Palliam. 2012). Recognition and promotional activity raise self confidence of employees and
improves their work efficiency.
3. Equity Theory- This theory propagates the idea of fair distribution of income to the
employees. Tesco believes in providing equatorial resources to the employees working in the
company. According to the level of input and output an employee generates, the mangers
strike to provide them with fair wage and remuneration (Dahl and Smimou. 2011). By
application of this theory employees feels justified in working with their peers and
colleagues. Thus this justified feeling generates sense of motivation among employees.
4. Reinforcement Theory- Employees behaviour is responsible in reinforcement of rewards and
incentives. Positive reinforcement strengths the motivation among employees working in
Tesco. Reinforcement generates feeling of positive involvement in the workplace of the
retail joint. These reinforcement's are done in various time intervals decided by the top
engagement and mangers of Tesco. Whereas punishment and extinction being part of
reinforcement decrease the morales of employees. The feel de-motivated due to extreme
pressure of punishment and extinction.
5. McClellan Acquired Needs Theory- As per this theory there are various needs of
achievement and accomplishment that help to raise the motivation if employees. The
employees at Tesco are affiliated towards excellence and brilliance. This habit generates
positive motivation among the employees (Ankli and Palliam. 2012). They feel powered
about their designation in return generate greater productivity in Tesco. These needs have to
measured by the mangers and leaders to review their requirement among the employees.
The application of these above mentioned theory increase the performance of employees.

The employees work mope efficient and help Tesco in implementing any new change in its
strategies.
3.3 Evaluation of usefulness of Maslow's Hierarchy for Mangers in Tesco
Source: (Elstad. Christophersen and Turmo. 2012)
Evaluation of Maslows hierarchical needs helps to ascertain the fulfilment of needs and
generates motivation among the employee. According to Maslow people are motivated after
fulfilment of their basic and fundamental needs. Maslow created a hierarchy of these needs. The
hierarchy shows the level of needs, after each level of needs gets fulfilled employee seek to fulfil
the next level of needs. Maslows theory is divided into five level i.e. Physiological needs, security
needs, acceptance needs, esteem needs and self actualisation needs (Teh and Sun. 2012). Usefulness
of this theory in Tesco is explained as-
 Usefulness toward the Employees-
This theory is useful as it helps employees yo ascertain their capacities and skills. The theory
facilitates the employees to recognize their needs that are helpful in motivation among them. The
employees are able to generate an plan as to which needs of the employee working Tesco are
important and which needs are least important. As a employee, fulfilment of these needs is
important as a job that provides complete satisfaction and self actualisation (Suppiah and Sandhu.
2011). The employee will feel participative in the operation of Tesco if these needs are duly and
completely satisfied. Usefulness toward the Mangers -
Illustration 2: Maslow's Hierarchy Theory

Mangers use this theory as a tool to understand the needs and requirement of employees in
Tesco. The managers seek these level as the guide to ascertain level of motivation to be delivered
among then employees. Managers after evaluation of these needs stand in a better condition to
provide motivation among the employees (Hosie and Smith. 2009). Mangers evaluate performance
of employees after fulfilment of all the needs of employees. These evaluation helps the managers to
ascertain the rewards and incentives planned for the employees. Performance analysis provides
study for mangers regarding the weakness and threats the employees are facing in the organisation. Usefulness toward the Top level management-
Top level management of Tesco seeks help of this theory to plan for various strategic
implementation that are beneficial for the employees. Top level management idolises the use of this
theory as it provides them with a catalogue to ascertain the requirement of needs of employees
working in Tesco. The management uses this theory to identify the level of satisfaction in
employees are receiving for working in Tesco (Oplatka and Stundi, 2011). The identification then
provides the management to see the gap among motivation in employees. Final assessment of
identification then lets management to formulates strategies and plan to be implemented in the
organisation. This plan helps to increase motivation and raise morales of employees.
These needs are helpful in achievement of self actualisation among the employees of Tesco.
TASK 4
4.1 Explanation of nature of groups and group behaviour in Tesco.
A group is a collection of two or more employee in an organisation. These employees work
in synergy and harmony to achieve a goal or objective. Groups helps the organisation to accomplish
objectives.
Nature of groups are explained below-

1. Formal Group- These groups are generally formed to fill a corporate or official purpose in
Tesco. These groups can be permanent as well as temporary. They work in vertical or
horizontal line of structure. They may be commanded by a leader or a manger. The formal
group made up of superior, subordinate and mangers. Success is achieved by the
performance of members in the group. The group members have a code of conduct which is
to be duly followed (Gilley. Gilley and McMillan. 2009). The code of conduct is formulated
by the manger of Tesco. In Tesco formal group is formed by mangers or top level
management to fulfil any assignment or productions activity.
2. Informal Group- These groups are just opposite of the formal group, they emerge without
any official order by Tesco. They mat be interest groups or friendship groups. They develop
naturally or automatically among the employees. They do not follow any structure and are
rigid in formation. There formation is not time bound they may be formed in the breaks,
lunch or while meeting. Any organisational change, situation and rumours help in the
formation of informal group (Tasa. Taggar and Seijts. 2007). The employees can talk to each
other anytime they want. Tesco does not create any formal groups, employees within the
organisation form informal group while relaxing, to talk, to discuss about personal motives
and etc.
Group Behaviour
To achieve the goals and objectives of the organisation groups behaviour is very relevant.
Nature of Group
Formal Group Informal Group
Illustration 3: Nature of groups

The way in which groups behaves and relate to the work environment provides the company to
ascertain the output of the task. Effective management of the work and the target can only be done
after the evaluation of groups behaviour. A group behaves in certain way if all the members agree to
a same thing. This encompasses synergy in the group. Whereas lack of synergy disrupts the working
of the group as a whole.
For example in the sales department of Tesco a group of 8 employee was given a task to sale
80 products. Each group member is different from each other, the company formed a group to
complete (Salas. Cooke. and Rosen. 2008). All the employees were able to perform the sale target
except one. This employee could only sell one item. To adjust his/her target all the rest employees
thought to cover the rest 7 items sales. Each individual employee sold one extra item thus
completing the groups target. This objectives helps the group to perform in co-operation generating
a co-operative sand participate group behaviour. The management of Tesco can use this behaviour
to incorporate goals and strategies in the organisation. Group behaviour is also relevant as it
generates team participation. Involvement and participative style if a group helps the group to raise
the productivity which in return increases the efficiency of employees working in Tesco.
Groups behaviour helps in directing, and motivating employees in the group. A good leader
can influence group behaviour to work more efficiently in Tesco.
4.2 Discussion of factors that promote or reduce the development of effective teamwork in Tesco.
Factors affect the development of effective team work in Tesco. The retail joint is affected
by both positive and negative factors that promote and reduce the effectiveness of team work.
Factors that promote development in effective team work are- Diversity- Team work gets more effective when the team members are diverse to each other.
Diversification include diversity of culture, value, personality and talent (Boyatzis. R. E.,
2008). This diversity promotes development and innovation among the group members of
Tesco. Communication- A good communication system helps the group to achieve the task in
minimum time period. Open, clear and fair communication system in the group helps the
members to ease the work and they are able to perform their targets and responsibilities.
Thus this helps to effectively mange the team work in Tesco. Mutual Trust- Trust is responsible to generate harmonious relations among the peers
working in the group (Haslam. van Knippenberg. Platow and Ellemers. 2014).
Establishment of mutual trust among the employees gen rates integrity among the group
members and raising the effectiveness of team work of Tesco. Homogeneity- It is the extent to which group members similarity and differentiation from
each other. The team members are able to find a balance among work due to homogeneous

mixture of group members. This homogeneity based on education, qualification, culture etc.
generates effective team work in Tesco.
 Cohesiveness- Team members of Tesco are highly cohesive towards work commitment.
Their motive is to work excellently to generate brilliance in the work (Mullins. 2007). Team
cohesiveness generates work affection and thus increases effectiveness of team in Tesco.
Factors that reduces development in effective team work are- Poor Leadership Style- Lack of appropriate leadership style affects the morales of
employees. For example an autocrat leader who does not involves employee in decision
making affects the team work in Tesco. Fair Remuneration- Fair wage, incentives and remuneration policies helps the team
members to work dedicatedly towards their goal. In case the retail joints discriminates on
basis of remuneration it creates de-motivation and directly hampers team effectiveness
(DeChurch. and Mesmer-Magnus. 2010). Lack of discipline- ill disciplines members of Tesco working for a task will not create
excellence in the work. They will affect the work team is doing and will not let the team
members to achieve their goals and targets. Individual Commitments- If the employee pay more attention to individual commitments
and goals, the work of team will be affected. As the team members will not work effectively
a s group and will pay attention to fulfil personal goals and motives. This will destroy the
work harmony at Tesco.
 Large Team Size- A group should be concise as large number of members in a team disrupts
and create chaos in the work of Tesco (Teh and Sun. 2012). To generate efficiency the team
has to be small and must contain members who exactly suit to the task's description.
These factor impact in providing the team effectiveness. After analysing the effectiveness of
these factors on team work managers at Tesco can work to eliminate these from the work
environment.
4.3 Evaluation of impact of technology on team functioning on Tesco.
Technology is a necessity to the survival of business in this century. With positive impact
technology brings various negative issues to Tesco. They are as followed.
Positive Impact of Technology in Team functioning.
1. Production and Quality- Technological advancement in Tesco raise the product quality. The
retail joint is able to serve to various different categories of products. This happens by
increase in the production level of the company (Dahl and Smimou. 2011). This factor
creates good impact of technology on productivity.
2. Globalization- Technology helps the company to create a brand image in the global market.

The company can provide its services and goods in the international markets as well. Tesco
is able to generate its presence among other countries with the use technology.
3. Innovation- Technology generates innovation in the products and ideas of the employees
working in Tesco (Suppiah and Sandhu. 2011). Innovation in return attracts more customers
and lowers the pricing of products. Innovation generates sustainability in the market.
Negative Impact of Technology in Team functioning.
1. Expensive Procedure - Technological advancement is a expensive process as it requires the
company to introduce to technological skills in Tesco. This in return raises the pricing of
goods and services which hampers the sale sand revenue of Tesco.
2. Resistance to change- Technology pro-founds feeling of resistance to change in employees.
Use of a certain technological tools by a time period creates longevity among the employees
for the use of the technology (Salas. Cooke. and Rosen. 2008). Thus the team members
working Tesco may generate resistance to change.
Employee Morale- Use of new technology may decrease the morales of employees if they are
unable to adopt to the requirements of the new technology. Whereas the company may use
technology to track to work of employees. This may create a feeling of discomfort among the
employees thus demotivating them.
CONCLUSION
From these study of organisational behaviour of Tesco it can be concluded that employee
and group members behaviour effects the business of Tesco. These factors may promote
development in the work effectiveness of Tesco. On the other they can reduce the effectiveness as
well. It can be said that motivation is a major requirement to generate productivity of employees
working in Tesco. The employee feel secured and commit to work if they leaded well by a efficient
leader. From the study it was found that Tesco pays attention on the importance leader and
motivational theory in the smooth working of the company.

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