Analysis of Leadership and Management Theories in Tesco PLC

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Management and Operation

Table of Contents
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1 Define and compare the different roles and characteristics of a leaderand a manager..........2
M1 Analyse and differentiate between the role of a leader and function of a manager by
effectively applying a range of theories and concepts [D1]........................................................4
LO2..................................................................................................................................................7
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts........................................................................................................7
P3 Apply different theories and models ofapproach, including situational leadership, systems
leadership and contingency..........................................................................................................7
M2 Assess the strengths and weaknesses of different approaches to situations within the work
environment.................................................................................................................................8
D1 Critically analyse and evaluate the different theories and approaches to leadership in given
contexts........................................................................................................................................9
LO3................................................................................................................................................10
P4 Explain the key approaches to operations management and the role that leaders and
managers play............................................................................................................................10
P5 Explain the importance and value of operations management in achieving business
objectives...................................................................................................................................11
M3 Evaluate how leaders and managers can improve efficiencies of operational management
to successfully meet business objectives...................................................................................12
LO4................................................................................................................................................13
P6 Assess the factors within the business environment that impact upon operational
management and decision-making by leaders and managers....................................................13
M4 Analyse how these different factors affect the business environment and wider
community.................................................................................................................................14

D2 Critically evaluate application of operations management and factors that impact on the
wider business environment......................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

List of Figures
Figure 1: Corporate Governance Structure chart of Tesco Plc........................................................2
Figure 2: Organizational structure on the basis of store structure...................................................3

Introduction
Operation management in an origination is referred to as supervision of different business
processes for increasing the productivity of converting the available resources such as human
resources and finance etc. to some useful product with a motive to enhance the business profit.
Currently, the report discusses about operations and management with considering of Tesco.
Tesco is a multinational organization having more than 6,569 grocery stores and offer services of
general merchandise retailer. Tesco Plc is among the third-largest retailer measured in terms of
gross revenues. The organization presently has about 460,000 that work for serving the
organization and the customers with the finest product and services. Being a very large
organization, management and organizing the available resources within the organization is a
complex task. Therefore, Tesco Plc employs managers and leaders for different department and
units according to their skills and experience for managing, organizing and supervising the
resources accordingly for enhancing the productivity and profitability.

LO1
P1 Define and compare the different roles and characteristics of a leaderand a manager.
Mangers and Leaders of an organisation performs various task within the organisation for
managing and organisation different business process and functions with the support of other
employees for achieving the business targets and goals (Tesco, 2019). In case of Tesco, the
leaders and managers works responsibility for ensuring that all the business activities are
effectively performed by the stuff as instructed by higher authorities.
Tesco’s Organizational chart
Hierarchical organizational structure is followed by Tesco as shown below. In this type of
structure, all the obligation and positions within the organization are effectively divided into
different parts or units for smooth work flow and attaining high work efficiently. The personnel
occupying the top level of the structural pyramid has high authority and maximum
responsibilities. Organizational structure of the Tesco has five committees that indicates the wide
business scope of the organization and are responsible for reporting directly to the Tesco PLC
Board.
Figure 1: Corporate Governance Structure chart of Tesco Plc
Tesco’s Organizational structure on the basis of store structure

Figure 2: Organizational structure on the basis of store structure
(Source: Author)
The organizational structural chart of Tesco has been illustrated above considering its store level.
In the present structure have four management layers within a store. The decision and controls
are flowed effective among all the level for effective functionality. And as per the determined
plans of the higher level the managing and controlling of the functions is done effective through
proper supervision. This structure may generate bureaucracy that may be annoying effecting
upon the collaboration and coordination between managers.
Classification of leader and manager
Leadership can be stated as a process that is effective in influencing others. Leaders are the
influencer who guides or command the team or group with a common objective to achieve the
determined goal. Management on other hand is referred to as a process for manipulating and
deploying various resources like technological, financial, human resources, for achieving
operational execution (Alexander, 2013). Thus, the manager is a person having various liabilities
for controlling and monitoring the organisational operations along with resources.
Store Director
Regional Manager
Store Manager
Personnel
Manager
Personnell/
Admin
Assistant
Support
Office
Ambient
Manager
Ambient
Team Leader
Team
Assiatant
Fresh
Manager
Counter
Manager
Bakery Team
Leader
Resturant
Team Leader
Non-food
Manager
Clothing
Team Leader
Electrical
Team Leader
Non Food
Assiatant
Training
Manager
Stock Control
Manager
Stock Contrl
Assistant
Security
Manager
Security
Assistant
Customer Services
Manager
Customer
Services
Assistants
CS Desk

Comparison between a manager and leaders:
Table 1: Comparison between a manager and leaders
Parameters Leader Manager
Approach Leader has the role in setting
directions. For example, leader
completes strategies along with
resources for attaining the outcomes
timely (Bens, 2017. ).
Manager plans details. For example,
HR manager of Tesco need to make
plans for arranging the resources and
for strategic execution
Attribute Leader has foresightedness. The
leaders mainly work for fore sighting
the cautions, precautions,
circumstances and prudence for
directing the resources for achieving
goal.
Manager makes decisions considering
the available data and capabilities.
Example: manager of Tesco plans
strategies for defining the
resources(Bens, 2017. )
Subordinates and
style
Leader has followers, transformational
leadership is used by the leaders for
achieving all the desired outcomes
(Onorato, 2013)
Managers have employees. The
manager implements transactional
approach for optimising his
contribution in the business operations
Challenges Leader accepts the changes. In the
organisation, leaders uses creative
solutions and innovation for solving
issues
Managers avoid conflicts. The
managers of the organisation stay
away from unethical behaviour and
conflicts
M1 Analyse and differentiate between the role of a leader and function of a manager by
effectively applying a range of theories and concepts [D1].
The managers and leaders of an organisation implements different concepts and theories of
leadership and management for seamless performance of different functions for organising and
supervising the resource according to the objective and standards of the organisation. as per the
discussion made above, it can be stated that leaders of the organisation prefer implementing
innovative and creative ideas for bringing changes and modification in different business

processes (Bratton, and Gold, 2017). Managers on other hand perform activities related to
administrative department. Considering the prevailing situations and circumstances the leaders
of the organisation prefer implementing different style leadership for motivating, encouraging
and organising the employees for performing various activities. On the other hand the manager’s
uses different management theories for gaining support to manage, control and organise
workforce and their activities. In Tesco Plc, focus of the business is to offer best services to the
customers by maintaining long term relationship with employees.
Management by objective: Peter Drucker has designed these management disciples. According
to this theory objective and guiding for achieving the objectives are liable to the organization.
And accordingly plans are designed and communicated with employees for maintaining activity
sequence and priority of processes. In Tesco, managers are responsible for setting up priorities
for different process and activities and processes for the employees for attaining organisational
aims and objectives.
Management roles theory
Fayol’s theory: Henri Fayol has stated this theory for management, and according to this theory
the manager has six different roles in an of an organisation including organising, forecasting,
coordinating, planning, commanding and controlling with a motive to satisfy the objective of
management (Hunt et al 2013). Managers are assigned with different departmental duties so that
the process of decisions making become faster. In Tesco, The training manager is reliable for
offering and conducting effective programs for developing skills and proficiency of the
employees to serve the customers more effectively.
Organizational theory: As per this theory, in an organisation bureaucracy can be supportive in
effective management of different business process and tasks. The theory mainly focuses on
distributing different level authority to different subordinates instead of offering the power of
decision making directly (Pescosolido, 2002). In Tesco, the managers of different department are
responsible for controlling and managing their unit.
Style of Leadership

Authoritarian leadership style: This style of leadership is effective in offering view of all the
stakeholders and various function assigned. Leader using this style of leadership are mainly
responsible for commanding and forcing employees to execute various business operations even
in worse situations (Kessler, 2013). In Tesco, the managers of different department assign the
subordinated with roles and responsibility according to skills, interest and performance.
Participative leadership: The leaders of Tesco prefers implementing participative or Democratic
Style of leadership where the voice of stakeholders are heard before making any decision for
business process or introducing new plans. In Tesco, opinions and concerns of the employees
are considered by the leaders and managers of the organisation for motivating them.

LO2
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts.
Situation 1: Tesco is presently is facing issues related to employee’s turnover. That is impacting
the overall efficiency and productivity f the organisation.
Leaders implement effective style of leadership like situational in this type of situation for
motivation and encouraging the existing employees. The leaders also chose to implement
participative style for updating skills of employees for meeting the organisational with the
limited resources (Nanjundeswaraswamy,. and Swamy, 2014). The managers apply Henri Fayol
management style for offering proper direction and establishing coordination among employees.
Manager emphasis on implementing various rewards system to keep the employees motivated to
work harder as per organisational standards.
Situation 2: Tesco has set target to become one of successful international retailer and thus the
organization is planning to expand its business in Asian and African countries. For enter into a
new market the organisation need to increase their employees.
The HR manager of Tesco implements the Henri Fayol management style for solving the
situation. The manager plans and create a effective plan for organising resources, time
management, directing employees using commands and coordination with marketing team for
identifying and understanding the new target market. The manager appoints skilled employees
for controlling and managing the new store. So that risk can be controlled for supporting
expansion. Leaders of the organisation use the approach of situational leadership for effective
distribution of roles among the employees considering the situation. Leaders conduct program
for skill analysis, and considering that roles and responsibilities are distributed for task
completion with proper resources management.

P3 Apply different theories and models ofapproach, including situational leadership,
systems leadership and contingency.
Situational leadership theory: This style of leadership is used in Tesco by its leaders for Martin
handling different business situations (Hill, et al 2014). Using this theory, the leader receives
different suggestions according to the situational demand. Through this theory, different
strategies are defined for the leaders for effectively handling changes.
Example: Tesco needs high sales outcome over a limited time period along with restricted
resources availability. According to the prevailing situation in Tesco the leaders are expected to
bring in their style of leadership from autocratic to participative. Leader conducts different
official meeting and conferences for discussing situation for attaining different solution.
System leadership theory: This leadership theory can be implemented by the leaders of Tesco
for supporting the organisational growth and expansion. Leaders focus mainly on different
interest of stakeholders associated with the organisation while using system leadership approach
(Dalkir, 2013). In this theory, all the stakeholders are considered to be important assets of the
organisation and their support will be helpful in achieving the organisational aims and objectives.
Example: from the analyses it has been observed that recruitment and selection process Tesco is
not effective in appointing skilled and trained employees. Thus, leader of Tesco mainly focuses
on modifying the process of selection and recruitment that emphasis on enhancing process of
internal recruitment. This modification will be effective in motivating the employees.
Contingency leadership theory: The leaders of Tesco use this theory to enhance the
productivity of the business along with business growth (Giltinane, 2013). The employees of the
organisations are motivated by the leaders of the organisation due to their contingency leadership
approach for leading and guiding the team, motivation encourages the team for be more
productive and efficient while performing different tasks.
Example, Tesco focuses to improve the quality of service offered to the customer for increasing
its popularity by increasing its customer base. Therefore, for achieving this target, leaders of
chooses to train the employees effectively to enhancing their professional skills. This indirectly
will support in increasing the overall productivity and rate of sale.