Tesco's Leadership and Management Styles: A Comparative Analysis

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Management and Operations
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Table of Contents
Introduction................................................................................................................................4
Background of organisation.......................................................................................................4
LO1............................................................................................................................................4
Define and compare the different roles and characteristics of a leader and a manager (P1). 4
Analyse and differentiate between the role of a leader and function of a manager by
effectively applying a range of theories and concepts and by using examples from your
chosen organisation (M1).......................................................................................................6
LO2............................................................................................................................................6
Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts (P2)..........................................................................................6
Apply different theories and models of approach, including situational leadership, systems
leadership and contingency (P3)............................................................................................6
Assess and evaluate the strengths and weaknesses of different approaches to situations in
your chosen organisation (M2)..............................................................................................9
Critically analyse and evaluate the different theories and approaches to leadership in your
chosen organisation (D1).....................................................................................................10
LO3..........................................................................................................................................10
Explain the key approaches to operations management and the role that leaders and
managers play (P4)...............................................................................................................10
Explain the importance and value of operations management in achieving business
objectives (P5)......................................................................................................................11
Evaluate how leaders and managers can improve the efficiencies of operational
management to successfully meet the organisation’s business objectives (M3).................12
LO4..........................................................................................................................................13
Assess the factors within the business environment that impact upon operational
management and decision-making by leaders and managers (P6).......................................13
Analyse how the relationship between leadership and management affects the business
environment and wider community of your chosen organisation (M4)...............................14
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Critically evaluate the application of operations management in your chosen organisation
and the factors that impact on the wider business environment (D2)..................................14
Conclusion................................................................................................................................15
References List.........................................................................................................................16
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Introduction
It is being identified that among the extreme competitive nature of the market all the
companies try hard to maintain their existence within the competitors in the market. In
addition to this, it has been found that focus of this study to have an in-depth knowledge of
the concept of the operation management. In addition to this, this study will focus on
differentiating between the manager and the leaders for identifying how their rules could
influence the growth and the productivity of the organization. Tesco has been selected as the
company of choice for successfully continuing the study. In addition to this, along with
defining operation management, this study will also highlight the concepts and methods of
operation management, along with identifying the strategies of implementation used by the
managers and leaders. Finally, strengths and weaknesses are elaborately discussed at the end
of this study for identifying how these factors are tackled in difficult situations.
Background of organisation
Tesco is considered to be one of the best leading retailer in the UK industry and in addition to
this, it has been identified that this company is the biggest retailer of eatables in the whole
wide world. In reference to the context of Swink et al. (2017), it can be said that Tesco was
founded in during the year 1919 and it started selling of groceries by buying them from a
small market within London. After this inn1930, the brand value of Tesco continued
increasing and rising. In addition to this, the head quarter of Tesco was built in northern part
of London and in 1932; the company became one of the private limited companies in
London. In addition to this, it has been found that in accordance to the report from the official
website of Tesco, the group of company has recorded the revenues of their companies
£42,641 million during the year of 2007, and raise 8.1% over 2006.
LO1
Define and compare the different roles and characteristics of a leader and a manager
(P1)
As influenced by the idea of Pardey (2016), it can be said that leadership is referred to as the
method in which a different vision or method is developed which in turn help in fulfilling the
dreams and the needs of the organization. In addition to this, it can be said that proper
implementation of leadership theories helps in helping the company for gaining competitive
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advantage in the market. In reference to the context of Nguyen et al. (2017), it can be said
that leadership can be said as the characteristics of any individual in the organization that is
successful in motivating and influencing the employees of the company. As influenced by the
idea of Mahadevan (2015), it can be said that with proper type of motivation, a company can
get the right types of the motivated employees who will always be there for working for the
welfare and success of the company. In reference to the context of Efferin and Hartono
(2015), it can be said that one of the mostly used tool for motivating employees and the
workers of any organization is by recognizing their efforts and encouraging them with awards
and incentives as prize for their small achievements. On the contrary, management of the
company helps by controlling and directing the team members in the right path for the
success of the company. In addition to this, it has been identified that proper management of
the company helps in developing a proper environment of culture and friendliness, which will
in turn help in achieving the entire short and the long-term goals. The following table will
highlight the characters or the roles played by the leaders and the managers of any
organization.
Characteristics Leaders of any organization Manager of any
organization
Function It is the duty of the leaders to
strive for introducing
changes and creating
innovative concepts.
As influenced by the idea of
Efferin and Hartono (2015)),
it can be said that it is the
duty of the manager to
uphold the status of the
company.
Approach towards taking
risk
It is the responsibility of the
leaders to take responsibility
in their work
On the other hand the duty of
managers is to control of risk
Subordinates There are many followers of
the leaders
All the employees are
controlled by the managers
of the company
Handling opportunities Leaders always search for
different opportunities
Assessing all the existing
opportunities is the duty of
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the mangers.
Table 1: Characters and functions of leaders and managers
(Source: Influenced by Efferin and Hartono, 2015)
Analyse and differentiate between the role of a leader and function of a manager by
effectively applying a range of theories and concepts and by using examples from your
chosen organisation (M1)
Roles are played by both the managers and the leader for establishing and making the
business prosper in the competitive market. In reference to the context of Donate and de
Pablo (2015), it can be said that in spite of many differences between the concept of the
management and leadership, many similarities have also been found. In addition to this it can
be said that one of the most common similarities in the concepts of leadership and
management is that both focuses on the making the company successful by fulfilling the
goals and the objectives of the organization. As influenced by the idea of Corbett et al.
(2017), it can be said that according the classical theory of leadership the duty of the leaders
is organizing, allocating, directing, controlling and recruiting employees. In addition t this, it
has been found that implementing this theory managers at Tesco motivate all the employees.
In addition to this, following the contingency theory the mangers at Tesco make all the goals
and the objectives understandable to the leaders as well as the employees (Tesco.com, 2019).
LO2
Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts (P2)
As influenced by the idea of Bird and Mendenhall (2016), it can be said that varying
circumstances in large and huge companies like Tesco, makes changes in the duties and roles
of the managers and the leaders. In reference to the context of Alonderiene and Majauskaite
(2016), it can be said that for the success of the Tesco it is very important for the leaders and
the managers to be present at the situation and be capable of handling the situation of
difficulties. In addition to this, being indomitable is also a character of the managers and the
leaders for making the company successful. A successful growth the company requires two
basic things form the leaders and the managers and they are flexibility and capability of
handling any situation. As influenced by the idea of Amanchukwu et al. (2015), it can be said
that, a leader or a manager also needs to be very efficient in developing their roles in
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accordance to the need of the situation. In addition to this, it can be said that adapting to any
situation for making the company grow is another requirement of successful business. As
stated by Bird and Mendenhall (2016), it can be said that it is the responsibility of any leader
to bring the much needed solution for the situation by taking into consideration all the needs
of the crisis period. In this situation it is also the duty of the leaders to examine the situation
and adapt the required style of leadership for going in accordance with the current needs. As
influenced by the idea of Alonderiene and Majauskaite (2016), it can be said that manger at
Tesco play vital roles and the leaders directly and indirectly effect the external and internal
functioning of the company. Moreover, it has been identified that the most significant roles
played by the leaders and the mangers during the period of financial crisis within the
company. As opined by Bird and Mendenhall (2016), it can be said that there are various
strategies followed by the leaders and the managers to handle efficiently the needs period if
crisis. This section of the study will focus on strategies followed by the leaders and the
managers for handling difficult situation or avoiding them.
Strategies used by leaders and mangers
Telling or directing The leaders and the managers communicate
with their employees for making them
understand how exactly they must perform
by this way.
Coaching Instructing, directing and supporting the
employees fall under this category.
Delegating Implementing this strategy mean checking
and monitoring the progress and the
performance of the employees.
Inspiring Rewarding the employees can inspire the
employees in the larger extents.
Table 2: Strategies used by leaders and mangers
(Source: Influenced by the idea of Alonderiene and Majauskaite, 2016)
Apply different theories and models of approach, including situational leadership,
systems leadership and contingency (P3)
Systems Leadership Theory:
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The leaders in an organisation to improve the situations use this leadership theory so that the
productivity of the employees can be enhanced. This theory has four basic factors- tools,
organisation, process and data. The leaders and managers use this theory so that the
employees are able to adapt easily to the changes and overcome the issues faced due to the
modifications in the peripheral factors. The systems leadership theory focuses on the
organisational and individual goals and objectives. When there are complex situations, the
leaders following this theory emphasise the issues along with examining it to have positive
outcomes so that the productivity and overall balance is maintained. The managers and
leaders of Tesco has imbibed the culture of interacting and helping others as it will contribute
to the holistic development of the organisation. The employees are encouraged to
communicate and interact with other employees and instead of working cooperatively; they
should work in a group. The leaders to overcome the situations that challenge the daily
activities and operations in the organisation provide effective solutions. Through this, the
employees are able to effectively solve the problems and enhance their performance and
productivity towards the organisation (Macdonald et al., 2018).
Situational Leadership Theory:
Paul Hersey and Kenneth Blanchard developed this leadership theory and the leaders in an
organisation use it to adapt to different leadership styles as per the demand of a situation. The
four principles of this theory are delegating, supporting, coaching and directing. Tesco has
implemented this theory in its operations to accomplish the business goals and objectives
successfully. The organisational productivity and performance of the employees are boosted
through this leadership style, as the leaders are able to motivate the employees by adapting to
different styles of leadership. This theory also helps in overcoming the crises, as the leaders
will adapt a leadership style apt for the current circumstance. The employees also feel that
they are being valued by the organisations and they will work more diligently to contribute to
the holistic organisational development (Thompson and Glasø, 2015).
Contingency Theory:
Fred Fielder developed this theory and according to this, the success of an organisation is
dependent on contingency. The external situations and organisational behaviours affect the
functioning and operations undertaken by the management. According to this theory, there is
no single manner in which the organisation can be led and managed and the desired course of
action is completely reliant and dependent on the external and internal organisational factors.
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Tesco has implemented this theory in its organisational functions as the success depends on
the contingencies due to the changing market situations. The leaders of the organisation
encourage the team members to contribute towards the functioning of the group and reduce
any kind of obstacles or disruption. Any hindrance in the operations can be managed by
improving the production process and maintain the stability of the organisation (Otley, 2016).
Assess and evaluate the strengths and weaknesses of different approaches to situations
in your chosen organisation (M2)
As influenced by the idea of Mahadevan (2015), it can be said that it has been identified that
situational leadership is extremely effective for the organization like Tesco. In addition to
this, it has been identified with the help of the implementing this style of leadership has
helped the company to manage the workforce and complete the entire task even during the
time of emergencies. In reference to the context of Pardey (2016), it can be said that in Tesco,
system approach is made for the development of adaptability. In addition to this, this
approach gives lots importance to the feedbacks and Tesco never fail to use these feedbacks
from the clients’ side for bettering the products and services. However, one of the biggest
limitations of this approach is does not follow the universality of principles concepts.
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Critically analyse and evaluate the different theories and approaches to leadership in
your chosen organisation(D1)
Tesco undertakes the contingency leadership and situational leadership styles within the
organisation. By following these styles, the leaders and managers of Tesco are able to switch
to different leadership styles as demanded by the situations to overcome the challenges and
improve the competency of their employees. The skills and capability of the employees can
be assessed with this method and they can accomplish the organisational goals and
objectives. The contingency approach enables the leaders to have specific solutions in place
in case of any contingent situation. Tesco emphasises on improving the employee-employer
relationship to gain effective outcomes and optimum productivity (D’Innocenzoet al., 2016).
LO3
Explain the key approaches to operations management and the role that leaders and
managers play(P4)
The different approaches to operations management are discussed below-
Total Quality Management- This refers to an approach where all the operations and tasks
undertaken by the organisation is checked and supervised to maintain the required level of
quality and its excellence to satisfy the customers. It involves the development and
implementation of quality assurance and planning, along with controlling the quality and
continuously improving it. Tesco undertakes the TQM approach to improve the performance
along with the quality of all its functional departments to provide excellent quality services
and commodities to the customers. It also focuses on the continuous enhancement of the
internal operations of the organisation (Ross, 2017). TQM has seven basic principles such as
continual improvement, strong leadership, the involvement of people, systematic approach to
management, the decision-making approach is factual, mutually beneficial relationship with
the suppliers and customer focus. By following these principles, Tesco can improve the
quality of its operations, services and commodities. The role upheld by the leaders and the
managers in this approach is that they ensure effective participation of all the team members.
The managers also develop ways to measure the performance of the employees (Obeidatet
al., 2016).
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Kaizen- It is the approach of continuous improvement in an organisation. It is applied to
improve the overall functions of the business. This approach emphasises to eliminate the
wastes in the departments and standardising the functions and operations of Tesco (von
Thiele Schwarz et al., 2017). The five principles of Kaizen are sustained, shine, set in order,
standardise and sort. By incorporating the Kaizen approach in the operations management,
Tesco will be able to overcome the barriers faced by the different departments. This will
enable the organisation to gain better quality of products and services. The managers and
leaders ensure that all the members in the team proactively partake in the process, along with
helping them in their issues (Pinto et al., 2018).
Just-In-Time-It is an approach, which is implemented in the operations of an organisation
such as Tesco. It increases the efficiency of the operations and ensures that the amount of
waste produced is reduced. The goods are received only when it is demanded for the
manufacturing process. The inventory costs are reduced because of this. By implementing
this approach in the operations management in Tesco, they can reduce the storage space
saving up on costs.
Furthermore, the goods are delivered only when required, thus reducing the wastage. The
managers and leaders use this approach to order for the raw materials when required, and the
amount is ordered after evaluating the demand in the market. Moreover, they ensure that
these raw materials are properly utilised and minimum wastes are produced (Kayvanfaret al.,
2017).
Explain the importance and value of operations management in achieving business
objectives (P5)
Leadership approaches and management is can be used to understand the value and
importance of operations management for accomplishing the business objectives of Tesco.
The transformational leadership approach can be undertaken as it focuses on implementing
the change within the organisation. It also enables the members of the organisation to
overcome the challenges and issues. A competitive advantage can be gained by using
transformational leadership as the organisation will be able to easily accept and adapt to the
changes according to the market. The operations management holds much importance in
achieving the business objectives, as by using the different approaches, Tesco will be able to
provide superior quality of goods and services to its customers and other stakeholders. They
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will also ensure that minimum wastage takes place in their storage and supply (Hawkins,
2017).
Operations management involves the “planning, organising, staffing, monitoring, controlling,
directing and motivating.” It is crucial that organisations undertake operations management in
to seamlessly carry out the activities necessary to accomplish the organisational goals and
objectives. Operations management contributes to the holistic productivity of the
organisation. The leader and managers also utilise operations management to maintain a
positive organisational culture, business ethics and values as it becomes easy to achieve the
tasks and objectives of the business chain (Kerzner and Kerzner, 2017). Corporate
governance is undertaken by Tesco to enhance their corporate social responsibility. It also
helps the team members to follow the ethical code of conduct for carrying out different
operations. By understanding the needs of the stakeholders, the organisation will be able to
maintain a sustainable development along with achieving its objectives.
Furthermore, capacity management is a function included in the operations management, and
this emphasises on the capability of the manufacturing process to ensure that goods are not
produced in excess. It also ensures that the quality of the goods produced are standardised
and meets the expectations of the customers. Tesco has undertaken various CSR policies to
contribute positively to the community and the environment. Some of them include reducing
the food wastage by donating surplus food to charities. The sugar content in the soft drinks
manufactured by the organisation will have 5% less sugar every year to reduce the obesity
rate in the UK. Children visiting the UK stores are provided with free fruits, and they have
raised 13.7 million pounds for the National Charity Partnership with the British Heart
Foundation and Diabetes UK. Tesco reduces their carbon emission every year by 3.1%, and it
has become the first retailer in the UK to collaborate with the Sustainable Agriculture
Initiative. The Code of Conduct was redesigned, and an awareness campaign was undertaken
for the “Protector Line whistle blowing hotline” (Tescoplc.com, 2019).
Evaluate how leaders and managers can improve the efficiencies of operational
management to successfully meet the organisation’s business objectives(M3)
The leaders and managers can make the operations management more efficient such that the
business objectives are achieved successfully by empowering the employees and encouraging
communication among the different departments of Tesco. If the employees feel empowered,
they will improve their performance towards the organisation and help in the achievement of
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