Analyzing Leadership and Management Skills at Tesco for Performance

This report examines the impact of leadership and management skills on Tesco's organizational performance. It begins with an introduction to the importance of these skills in achieving organizational goals, particularly in dynamic environments. The report analyzes and compares leadership and management, highlighting various leadership theories such as contingency, situational, transformational, transactional, great man, and behavioral theories. It identifies Tesco's key performance indicators (KPIs) like sales, profit, and customer recommendations. The report further discusses how Tesco's leadership and management practices, including continuous learning, vision sharing, and employee training, contribute to enhanced employee performance, profit margins, and market growth. The conclusion emphasizes the necessity for Tesco's leaders and managers to adapt to global economic changes and leverage their skills for organizational success. Desklib provides access to this and other solved assignments for student learning.

Developing Leadership and
Management Skills

Executive summary:
The main purpose of making this report is to know the impact of leadership amd management
skills on organisational performance. For this report the researcher has taken the helpmof
secondary source to collect the data. By the help of data the basic objective to understand the
qualities is been fulfilled.

Table of Contents
Executive summary...............................................................................................................................2
Introduction...........................................................................................................................................4
Main body.............................................................................................................................................4
Analysis and comparison of leadership and management..................................................................4
Key performance metrics of organizational sector/market/industry...................................................7
Organizational leadership and management performance..................................................................8
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12

Introduction
From a very long time it is been noted that leadership and management skill is very
important in the organisation if they want to achieve their goal effectively and efficiently.
Management is not about managing the administration or executing the operations it includes
all the other things like planning, directing and controlling the workforces and task so that a
smooth function can be happen (Wright, 2021). In this uncertain it is important that manger
should also posses the advanced leadership skills so that they can handle the situation in
much more border way. They also need this leadership quality so that they can influence the
individual to do work and also gain competitive benefit i this fast growing pace. The above
two term Management and leadership is different but both work for development of skills.
Leadership is the fundamental part of the management (Ritter and et. al, 2018).
If a person has leadership sill but does not possess the management skill then they
cannot function well. Mangers also cannot acquire there result if they do not have leadership
skills to. Many of the study reveal that most of the organisation does not succeed because of
lack of management and leadership skills as there manger doesn’t able to response the
uncertain conditions effectively (Filyasova and Khrebtovich, 2019). In this report the
organisation which is being selected to see how there mangers has developed their
management and leadership skills and if these skills help them in motivating their employees
and their performance is being enhanced is Tesco. Tesco plc is a multinational British retail
company. It’s headquarter is in Welwyn garden, England. It was founded in 1919 by Jack
Cohen. The company diversify in many fields like books, clothing, furniture, toys and
financial services. So as the company diversify in different area so it is very important for
them to posses the leadership and management skills (Hosier and Touma, 2019).

Main body
Analysis and comparison of leadership and management
Basis Leadership Management
Definition Leadership is the quality that
an individual posse by which
they can motivate the other
person to do something in
very effective way.
Management is the process
of planning, staffing,
controlling and directing the
group of people so that goals
can be accomplished.
Orientation They are the people oriented While management is about
task orientation
Focus group Leading the people by their
way of conduct
The main focus is how they
can manage the work in more
efficient manner
Outcomes With the leadership they try
for the achievement of
objectives
Management is all about
getting the best result.
Organisation In this leaders try to make
other person to follow them
Here mangers have there
subordinated to whom they
guide and manage
Powers They develops the power
within them
In management mangers
exercise there power to the
lower employees
Reaction By their leadership skills
they create changes in the
organisation
By their management skills
they react to the changes
Function There main purpose is so that
they can motivate the
individual of the organisation
There main purpose is to
gives direction to their
subordinates.
Communication skills The leaders has best
communication skills then
They posses less
communication skills then

the managers leader.
Methods They uses the passionate and
stirs emotion to boost
employee.
They uses the formal and
rational method to mange
things.
Management and leadership are two different methods through which people of the
organisation are motivate and organised. Leadership is all about setting a new direction for
the people who follow them and management is all about controlling and directing the people
and resources so that they can working according to the goals that are established (Maccoby,
2020).
There are so many leadership theories that manger need to apply:
 Contingency theory:
This theory says that there is not a one leadership style for each and every situation rather
all the situation has to be solve by various other leadership quality. So the leader should
choose the right course of action depends upon the problem they are facing. One researcher
that is white and Hodgson says that “effective leadership is about maintain the right balance
between the needs, context and behaviour “. Every individual motivation is boost by applying
the style which is suitable with their problem. What is apply in past does not apply for the
present. So if the individual want to become the best leader then they should acquire all the
styles within them (Weathersby, 2019).
 Situational leadership theory:
This model is created by Paul Hersey and Ken Blanchard. This theory is somehow similar
with contingency theory. This theory says that there is no single style that iis good. Instead
type of leadership and strategies are built according to the best suited task. This theory is also
known as two- factor theories. In this leaders need to focus on two elements the task
behaviour and the relationship behaviour. The leadership also varies from job, function and
the needs. The main difference between contingency and situational leadership skill is that
the later focus on number of people rather then individual (Kotterman, 2018).
 Transformational leadership theory:

This theory is also known as Relationship theory. This theory says that the leaders should
focus on how they can build an effective relation with the leaders and followers. This theory
says that the leaders should be charismatic and inspirational so that they can encourage their
followers to do the task in more better way. The leaders in this not only focused on team
performance but also on individual team member so that they can push them to work
according to their potential. If this practice is applied by the individual then there skills and
knowledge will also be sharpen (Welte, 2018).
 Transactional theories:
Transactional theory also referred to as management theory or exchange theory. The main
focus on this practice is that it revolves around the role the supervisor, organisation and
teamwork of the company. The action that is applied by the leader to motivate the employee
is giving reward and punishment of the basis of their performance. Many big organisation are
adopting this theory as a fundamental skill because by the action they adopt many of the
employees morale can be boost.
 Great man theory of leadership:
This is the most oldest theory and this is based on the assumptions that the leaders are
born rather than made. The leadership quality that is posses by the leaders are charm,
confidence, communication, personality, skills, aptitude and many more. These all quality a
human posses by the birth but realise after some time (Bush, 2012).
 Behavioural theory:
The theory gives more emphasis on behaviour and action rather than the traits and
qualities. Leader behaviour and action speaks more than what they posses as a skill or
quality. The more sound their action the more followers will follow them.
Key performance metrics of organizational sector/market/industry
Key performance metrics are those elements of the organisation that tells that what
the company want to achieve and how much time it will take to get success. By this the
company get to know about their outcomes so that they can meet their goal and objectives. In
this whole report the organisation which is selected to see how there management and
leadership skills helps them in their overall performance is Tesco. Tesco is operating in retail

sector where they provide grocery services to the customer (Albats, Fiegenbaum and
Cunningham, 2018). With the time the Tesco has enhance their market and diversify their
area in different sector like finance and fashion. The company has more than 6500 stores and
around 475000 employees. The company uses the Corporate Steering Wheel to measure their
key performance indicator but now the company replace this strategy by the six KPI. The top
key performance metrics of the organisation is Financial, Customer and operations. These
KPI are:
 Sales
 Profit
 Operating cash flow
 Customer recommendation
 Colleague recommends
 Trusted partnership
The company has reduced their key performance so that they can create more focus on what
matter most for them rather than the others. The company also want to reduce their
complexity as using Steering wheel is much complex that has so many indictors. These six
KPI need to be carefully communicated by the Tesco so that they can acquire Buy – in and
engagement right across the whole company. Tesco is UK based food sector company the
company Key performance indicator are measure in quantity so that company can measure
their performance against their competitor and then apply some leadership and management
skills in their organisation in much more effective way. The company also measure there KPI
annually so that an assurity can be made that they are accurate in their theories and skills
(Siau and et. al, 2019).
Organizational leadership and management performance
The business game has changed a lot with the dramatically turn in the global
economic and this change will happen over the years. So it is becoming imperative fotr the
leaders and mangers of the Tesco to accept the change and start using their leadership and
management skills so that they can enhance the performance of the organisation in much
effective and efficient manner. The leaders of the organisation are using their golden rules so
that they can succeed in their role and can manage the workforce in better way. The golden
rules that the leaders of the Tesco are applying in their practices are. Leadership is that

process of learning new things and developing their knowledge. They also think that their
power is not a position but a tool that they used to increase their productivity and then
enhance their sales and profits (Brouwer and et. al, 2019).
Tesco managers and leaders always be in the state where they continue learn new idea
so that they can apply in their organisation and can achieve the goals and objective that they
set. The effective and efficient performance of the Tesco is developed because they have the
potential were they can make unparalleled success and can grow their business. Tesco leader
are so ambitious that by their skills they built the strong company were the brand itself say a
lot and leave a good imprints in the individuals mind. Mangers of the company manages their
human and material resources in such a manner that they are gaining competitive advantage
from it. The company with their individual skills can succeed in this dynamic condition were
everything is uncertain (Qi Liu, Wei and Hu, 2019).
Here are some of the guides that the leaders and manger of Tesco set which impact their
organisational performance:
 They on continuous bases assess their bench strength so that accidents and unplanned
events can be solved by their potential skills.
 They share their vision, mission and business philosophy with their follower and
subordinate which help them to survive and built an environment full of trust.
 They give training and coaching to the future leaders and mangers so that they can
work in sound way in the upcoming future.
They apply the strategy of learning things while doing. This strategy left such a impact that
there verbal communication of information are made strong (Hsieh and Liou, 2018).
In this report this part covers that how the leadership and management skills helps the Tesco
to boost their organisational performance. By this there profit margin and market growth is
also expand over the time.
 Enhance employee performance: the Tesco leaders and manager treat each and every
employee fairly on the basis of the position they are doing job. This help the
organisation to retain and attract the employees for longer period of time. The
employee loyalty towards there mangers and leaders also increased because their
skills are so good that the communication gap is being reduced. They also gives the
reward to their employee by following the transactional theory. By doing so the

employee attitude toward the work increases. Tesco employee believe their leader and
mangers inn such a way that in the real life they try to implement their skills in day to
day operation ( Moon, Choi and Armstrong, 2018)
 Helps in creating the performance strategy: it is very important for the Tesco
employee that was their team is headed over. So as a leader it is their duty to tell the
employee what need t be done to get end result. As manger they need to see all the
resources are managed and control. So Tesco leader and manger perform their skills
in such a better way that they did not need to step back for managing their
organisational performance. This employee is on track and with their ideas and task
acquire the goals. This help the entire team of different department to be focused
toward their ends (Rehman, Bhatti and Chaudhry, 2019).
 Increase sale: The company sales are increasing day by day with the help of the
strategy that their leaders and manger adopt. The leadership theory that is acquired by
the leaders is consistency theory. So with the help of this they solve the business
problem and enhance the morale of the employee with the situation that arrives.
Mangers also use the theory of behaviour was with their behaviour and action they
made available all the things on time. So all this skills help the Tesco by increasing
their sale over the passing time. They with the time also review the performance of
the employee and then uses those theories which they suits are best for that particular
individual or condition (Abubakar and et. al, 2019).
So it is very important for the organisation to keep their hand on management and leadership
skills.

Conclusion
From the above overall report it is being concluded that the leadership and management skills
sets the standard for the employee performance standard which help the organisation to
enhance their overall performance. It is also being concluded that the Tesco company is able
to achieve their six key performance metrics by the helps of their leaders and mangers. They
both helps the organisation a lot by which the company in present expanded it business in
various sector and is one of the big retailing company in the UK. With the help of the
strategic performance that is measure in quantity the firm leaders also decide that were they
need to motivate their employee and mangers get to know about the area were training and
development is needed.
The leaders know best that who they can communicate their employee so that motivation can
be increased and they will work with their full potential. Those leaders and mangers who
does not posses the skills were they are powerful, can dominate others, has effective
communication skills then that organisation is not in that position where they can survive
with the uncertainty that occurs while they are operating. The development of leaders and
mangers is the key if the organisation want to be in profitability. It is also been concluded that
whether the companies are small or big having effective leader and manger is important so
that they can survive in such a dynamic environmental conditions.

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