Tesco Plc Leadership and Management Styles: A Comparative Analysis

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Management and Operations
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Executive summary
In this report, the role of a manager and leader of an organisation and its differences
has been discussed. The organisation has been chosen for the report is Tesco Plc.
Several approaches that can be considered by the leaders and the managers have
been discussed. These approaches have been identified with the help of the theories.
Importance of the function of the leaders and management has also been highlighted in
this report.
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Table of Contents
Introduction...................................................................................................................... 3
1. An introduction to the organisation and management structure...................................3
2. Definition and roles of both managers and leaders, highlighting the differences
between management and leadership.............................................................................4
3. The different roles of management and leadership in application to different
organisational situations, supported by theories and concepts........................................9
4. How classical theories (for example, scientific management) and behavioural theories
(for example, Elton Mayo’s Hawthorne Effect) apply to the organisation and how these
have supported growth and sustainable performance...................................................12
5. Conclusions on how managers and leaders have made an impact on the organisation
and recommendations for future improvements.............................................................14
Conclusion..................................................................................................................... 16
References.....................................................................................................................17
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Introduction
The present report consists of the role of a leader and the managers of an organisation,
different situational leadership approaches. Tesco Plc. is the chosen organisation and
the management structure, differences between the role of a manager and leader will
be the center of discussion. The respective organisation has applied certain theories of
different approaches in its business operations. Leaders and managers are two key
prospects for the growth of the organisation. Their activities in the workplace make an
impact for maintaining the good work environment.
1. An introduction to the organisation and management structure.
Tesco Plc. is a multinational retail organisation in United Kingdom. It is headquartered in
Welwyn Garden City at Hertfordshire in UK. Tesco is one of the largest retail
organisations in UK. It was founded by Jack Cohen in 1919. The organisation has over
6800 shops in seven countries. It has Over 440000 employees. The organisation deals
with the retailing of grocery products, clothing, books, furniture, electronic appliances,
toys etc. It has been providing the financial, internet and telecom services. The main
competitors of Tesco are ASDA, Morrisons and Sainsbury.
The management structure of Tesco comprises of Board of Directors, which is
constructed with 10 members. Changes have been made in the management structure
of the organisation during 2014/15 financial year. John Allan had been appointed as
chairman of the board. The appointment of Dave Lewis as Chief Executive Officer and
Alan Steward as Chief Financial Officer has made certain changes in the Board of the
organisation. In 2015, Dave Lewis made an announcement of costs reduction over the
functions of head office by 30%. The structure of governing body of the organisation has
been constructed with five executive committees in which there are members of 11
personnel led by Mr. Lewis.
Figure 1: Management structure of Tesco Plc.
Source: (Tesco plc. 2019)
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2. Definition and roles of both managers and leaders, highlighting the differences
between management and leadership.
P1 Define and compare the different roles and characteristics of a leader and a
manager.
The management of an organisation comprises of the managers and leaders. Both play
an important role for the development of an organisation.
Leadership defines the setting of new vision for a team or group that the members need
to follow (Mayo et al., 2016) Leaders are those who build a team, lead the team to fulfil
the specified work. A leader always influences the followers for achieving certain goals.
It is the responsibility of a leader to develop innovative strategies, build trust among the
team members. Leader can be a guide who encourages the team to support each other
for accomplishing the specified task. A leader is an important part for the development
of an organisation.
Managers control the group of people in an organisation. They manage all the types of
work in an organisation. They need to take the responsibility of planning, direction,
control and coordination. They have the rights to hire and fire the employees. There are
several types of managers such as general manager, project manager, and functional
manager.
Differences between a leader and a manager
Leader Manager
1. Leader influences the team members
to work together for achieving the goals.
1. Managers manage the entire work
culture of an organisation.
2. Possess the quality of vision. 2. Possess the skill of intelligence.
3. Sets a direction. 3. Makes plans and strategies.
4. Has followers. 4. Has employees.
5. The focus is on people. 5. The focus is on process.
6. Do not avoid the conflicts. 6. Always avoid the conflicts.
7. Aim is to build and develop a team. 7. Aim is to develop an organisational
work environment.
Table 1: Difference between roles of managers and leaders
(Source: created by author)
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The organisation has the strong management structure and a good leadership
management. They both are different in the nature of the work but have made a huge
impact for the growth of the business operation of the concerned organisation.
P2 Examine examples of how the role of a leader and the function of a manager
apply in different situational contexts
Effective management and leadership is necessary for the success of the organisation
(Yang, 2015). Leaders are those who motivate the employees of the organisation. The
organisation selects a leader for building a teamwork culture in the organisation and
employs a manager for managing the different situations regarding the workforce.
When a team or group of workers does not feel motivated, the team leader needs to
motivate them. The leader has to set up a direction or goal to which the members need
to follow. The growth of an employee depends on the level of motivation and skill he or
she has. The leader provides the support to the employees so that they perform in the
workplace efficiently (Shao et al., 2016). One of the main responsibilities that managers
need to take is productivity of the organisation. Managers of the organisation monitor or
supervise the work quality and quantity for maintaining the good productivity level.
When the productivity level is low, that can be a major concern for the managers. They
have to identify the issues by asking the team leader or reviewing the work level of the
team. They help them to overcome the issues by providing the proper training.
The employee turnover of the organisation has high costs with planning, recruitment,
selecting and training to replace the employees who leave the organisation. In order to
reduce the employee turnover cost the manager needs to provide the best work
environment to the employees. They need to recruit the right candidate for the
respective position as well so that the quality and quantity of work can enhance.
The managers and the leaders of the concerned organisation i.e. Tesco has been
maintaining the good work culture over the years. Managers are providing the best
training and develop programme and the leaders are guiding the team members to the
right direction. In this way, the productivity level of the organisation has enhanced.
P4 Explain the key approaches to operations management and the role that
leaders and managers play.
Operations management involves in planning, organising and monitoring the
procedures and make possible changes for the improvement of the profitability of the
organisation.
There are few key approaches that operations management has performed for the
growth of the concerned organisation.
Design: Before starting the plan, the operations management analyses the
requirements and demands in the market. During planning, the management has
considered the technical requirements for the business operation. In most of the cases,
planning has been done for designing the products. The management needs to make
plans for the recruitment also. They have identified the requirements of the position in
the organisation. Then, they have to design a proper job description for the respective
position.
Management/Organization: The operations management organises the process of
making the plan successful. This is the starting base for improving the efficiency of the
operation. The management supervises the process of making the design of the
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products and as well as the job description. In order to enhance the productivity, the
management has focused on the maintenance of the materials and equipments. On the
other hand, the human resource management is an important activity for the
organisation. The activity of operations management has made an impact on
employment level of the organisation.
Six Sigma: Six sigma simply means a measurement of quality which strives for the
perfection. Six Sigma is a data-driven approach or a method in which defects in any
procedures can be eliminated. It is a disciplined method. The operations management
of the organisation has maintained the efficiency in production and services through this
approach.
Roles of a leader in the organisation are as follows-
● Identify and interpret the work environment
● Motivates the team members and provides the support as needed
● Make strategies and execute those in an effective way
● Make the adjustments and monitor the outcome
● Build the capabilities of the organisation
Roles of a manager in the organisation are as follows-
● Interpersonal role
1. Figurehead role
2. Leadership role
3. Liaison role
● Informational role
1. Monitor
2. Spokesperson
3. Disseminator
● Decisional role
1. Disturbance handler
2. Negotiator
3. Entrepreneur
4. Negotiator
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Figure 2: Role of a manager
Source: (Shinde and Fleck, 2015)
P5 Explain the importance and value of operations management in achieving
business objectives.
Operations management process is essential for the development of the organisation.
Through the process of operations management several attributes of operation like
people, information, technology, equipment and others can be managed. The
importance of the operations management are-
Quality enhancement
Operations management has focused on the enhancement of the work quality in the
organisation. It enables the improvement of product and service quality as well. The
operation management has maintained the good work environment. So, the
organisation has been able to produce the good quality products and services to the
consumers.
Customer satisfaction
The operations managements have been performing effectively on the productivity of
the organisation. They have understood that the satisfaction of the customer is
important in order to maintain the productivity. As far as the performance of the
operation management is concerned, they have ensured that the product and service
quality has met the needs of the community. Customer satisfaction must help in the
development of the business operation of the organisation
Employee satisfaction
In order to maintain a good work environment, it is necessary for the management to
provide the best to the employees (Bens, 2017). The management of the organisation
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has been providing the training and development programme for the staffs so that they
can be familiar with job as quickly as possible. Employees feel that they are valued and
respected. The management has introduced new legal policies to provide the facilities
to the employees. Issues regarding the work have also been solved by the
management. Satisfaction of the employee has made a huge impact on the productivity
of the organisation.
Increase of revenue
Operation management is important for increasing the revenue of the organisation. The
performance of the managements of the company leads to the improvement of product
quality and customer satisfaction. This has given the organisation a reputation in the
market. This helps the organisation to increase the revenue by expanding the market
share.
M2 Assess and evaluate the strengths and weaknesses of different approaches to
situations within the work environment.
Strengths
The different approaches of the operation management have several strengths. The
management has made an approach in creating design of products and job description.
In that way, the productivity level of the organisation has enhanced. Employment level
of the organisation has increased as well. Situational approach has helped to build the
motivation and skill of the employees which has encouraged them to work efficiently.
Defects have been eliminated through the approach of the operations management. As
a result of that, the work quality has been improved in the organisation. This approach is
practical and easy to understand. This approach emphasizes the leader flexibility.
Weaknesses
The situational approaches of the operation managements have some limitations as
well. The situational approaches do not have the clear guideline that how subordinates
move to high levels of development from low levels of developments. It is also not clear
that how commitments change over the time for the subordinates.
M3 Evaluate how leaders and managers can improve efficiencies of operational
management to successfully meet business objectives.
Leaders and managers can improve their efficiencies in operational management in
certain ways.
Inventory control
The most complicated system in any industrial business is inventory (Chiu et al., 2017).
This can identify whether the investments and the funds are working for the growth of
the company or not. The management of the organisation needs to control the inventory
system more efficiently.
Focus on the customers
The operations management should focus more on the customers in order to maintain
the goodwill in the market (Hyde et al., 2015). At the time of planning for an operation,
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the management needs to identify the need of the community. They need to build more
efficiency in their performance by providing the best products and the service to the
customers.
Quality control
The management of the organisation needs to enhance the quality of the products and
the services. It is important for the organisation to maintain the good reputation in the
market by maintaining the control over the quality of the performance of the operation
management (Kiehtreiber et al., 2015). The management needs to enhance the quality
of rules and the policies so that the employees feel protected. The management can
make the workflow smoother by taking care of the employees.
Supply chain management
The management needs to improve efficiency in the supply chain management. This is
an entire process which includes purchasing, transportation, storage and delivery
(Suarez-Barraza et al., 2016). The organisation needs to build strong professional
relationship with the suppliers and factories. It is important to deliver the products to the
customers on time. In order to that, the management needs to improve its transportation
system as well.
3. The different roles of management and leadership in application to different
organisational situations, supported by theories and concepts
P3 Apply different theories and models of approach, including situational
leadership, systems leadership and contingency
Several theories are developed for the situational leadership process. It can be
identified that in what process leadership in any situation can be successful.
Situational leadership theory
This theory has been introduced by Paul Hersey and Ken Blanchard. This approach is
all about the matching of two essential elements appropriately. These two elements are
the leadership style of the leader and the maturity level of the followers.
The theory defines four essential approaches of leadership.
● Telling: It is an authoritative and directive approach. Leaders make the decisions
and ask the employees to follow.
● Selling: Leaders still make the decision but communicate and provide the
support to the employees rather than just directing them.
● Participating: Leaders do not make decision alone but work with the co-worker
for making the decisions together. Leaders encourage them.
● Delegating: Leaders give the responsibility of making decisions to the team
members but monitor their work.
There are four levels of the followers’ maturity as well.
● Level M1: Low competence - low commitment
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● Level M2: Low competence - high commitment
● Level M3: High competence - low confident and commitment
● Level M4: High competence - high confidence and commitment
Figure 3: Maturity levels of the employees
Source: (Lynch, 2015)
The key to a successful leadership is matching the leadership style of a leader and
maturity level of followers.
● Telling style works for the M1 level of employees
● Selling style works for the M2 level of employees
● Participating style works for the M3 level of employees
● Delegating style works for the M4 level of employees
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Figure 4: Match of the leadership style and maturity level of the employees
Source: (Nawaz and Khan, 2016)
The management of the concerned organisation has applied the theory to enhance the
growth of its business operation.
System leadership theory
System leadership process has enabled the leaders in the organisation to build the
environment where employees can do their work efficiently (Senge et al., 2015). It is
used to examine the human behaviour for organisational strategy, good leadership and
system design. It provides the leaders with the tools which helps them to predict the
behaviour of the employees in the organisation. It may lead to a realisation of the
purpose of the organisation. This theory was developed by Dr. Ian Macdonald. The
concerned organisation has utilised this theory in their workplace to maintain the good
relationship between the leader and the employees.
Contingency leadership theory
The contingency leadership theory defines that an effectiveness of a leader is
conditional upon the leadership styles that matches to the situation. The leader needs to
find out the situation and the own leadership style. This theory is concerned with the
followings:
● There is no best leadership styles
● A leader can be effective when the leadership style of the leader matches with
the situation
This theory has been developed by Fred Fiedler. The concerned organisation has
applied this theory for identifying the abilities of the team leaders in the workplace. The
management of the organisation has chosen those kinds of leaders who can adapt with
every situation.
M1 Analyse and differentiate between the role of a leader and function of a
manager by effectively applying a range of theories and concepts.
Managers are the member of the organisation who take the responsibilities of planning,
leading, organising and controlling. But all the managers can not be a leader. Some
managers can have the poor leadership skills. Managers’ duties are to make the
process of recruitment and selection, training and development, legal policies and
organisation structures efficiently. Main focus of the managers is to achieve the
objectives and goals of the organisation.
System management theory offers an approach to management and planning of the
organisation (Waring, 2016). According to the theory, the organisational success
depends on various criteria like interdependence, synergy and interrelations between
several subsystems. Employees are the most vital part of the organisation. Managers of
the organisation are required to assess the pattern of the organisation in order to
determine the best approach of the management.
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