Operational Management at Tesco: Leadership Roles, Theories, Impact

This report analyzes leadership and operational management within Tesco, comparing the roles of leaders and managers and highlighting the application of various leadership theories such as behavioral, classical, contingency, and transformational leadership. It examines key operational management approaches like Just-in-Time (JIT) and Total Quality Management (TQM), emphasizing their importance in achieving business objectives and enhancing employee productivity. The report further discusses factors impacting operational management and decision-making, including the influence of external environmental changes, and how Tesco adapts its policies and leadership styles to maintain a competitive advantage. This includes examples of Tesco's reward systems, step-change programs, and quality management strategies.

Unit 4 - Management and
Operations

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Defining and comparing different roles of leaders and managers...............................................3
Application of different theories and models of approach...........................................................4
Key approaches to operational management and role of leaders and managers..........................6
Importance of operational management in achieving business objectives..................................7
Factors that impact upon operational management and decision-making by leaders and
managers......................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Operations management is the proper administration of business practice so that highest
level of efficiency might be created within the firm in smooth manner. Furthermore, the present
report is based on Tesco that is best known for selling variety of goods in various markets. Also,
the report will discuss the role of leaders and managers in conducting various operations within
the business. Furthermore, the study will provide the list of examples to explain the role of
leaders and will also use various theories and models so that better understanding might be
gained. Also, various approaches of operations management and its significance will also be
covered under this report. Lastly, factors affecting business environment that would impact the
decision-making will also be explained in this study in detail.
MAIN BODY
Defining and comparing different roles of leaders and managers
Leaders are the ones that helps the organization achieve various strategic goals in clear
and defined manner through motivating team members and taking certain decision in proper and
responsible manner (Cortellazzo, Bruni and Zampieri, 2019). Furthermore, in the context of
Tesco it can be said that participative leadership style is been used so that employees are able to
present certain ideas openly and in free manner. Moreover, using such type of leadership style is
good for company as it helps to collect the valuable outputs that are earlier unknown to the
management. Furthermore, the detail differentiation between the leaders and managers is been
presented as follows:
Particulars Leaders Managers
Motive Leaders in Tesco are
responsible for creating vision
for the overall firm through
suggesting the management
the ways through which the
current productivity among the
employees might be improved.
In Tesco managers are
responsible for creating the
best business goals either short
or long term so that right
direction might be provided.
Risk taking Leaders are ones that willing Managers on the other hand

to try new things within the
workplace. Also, they are
aware of the failures in the
future.
tries of control the risk and
minimize it to large extent.
Planning They are focused for the long
term planning and are efficient
enough to set big goals that
will help Tesco achieve
greater amount of success
Managers within Tesco are
mainly focused on the short
term planning and setting
small gaols so that motivation
level among the employees
could be maintained
Key features Leaders within Tesco are more
focused on building best
relationship at workplace so
that certain work could be
carried out in the best manner
(Gandolfi and Stone, 2018).
Managers within Tesco are
more concerned over the
building certain processes or
systems so that work within
Tesco could be carried out
with minimum wastage and
resources.
Functions They act as the change agent
that helps in creating the
required amount of innovation
within the workplace
Managers major function is to
assure that wok is carried out
smoothly across various levels
and also higher amount of
revenues are generated in the
future.
Examining how role of leader and function of a manager apply in different situational contexts
The role of the leader is very crucial in handling various organizational work situations in
most effective manner. Furthermore, it can be said that manager in any firm work out through
applying various theories that are been described as follows:

Behavioural theory of leadership: This theory states that how leaders could utilize their
skills in most efficient manner in handling any kind of the specific business situation.
Furthermore, it states that situations are handled best based on the behaviour of the manager.
Classical theory of leadership: It is one where manager distributes certain kind of work
based on particular tasks that has to be carried out and managers ensures that task is explained
carefully to each of the member so that efficiency could be increased on large level.
Contingency theory of management: This theory could be applied by any manager
based on the situation and circumstances (Al Khajeh, 2018). Furthermore, it states that only best
solutions could be found out depending upon the situation and thus no predefined plan or
strategies could be made in advanced.
Management by objective: this is the theory that is purely based on identifying the
process and objectives of the process management. Furthermore, it is technique that helps in
recording and monitoring activities of the organization that will help in the growth of the
organization. Thus, through using this theory Tesco would be able to evaluate the maximum
efficiencies that could help the firm in growth.
Transactional leadership: This theory is based on providing the right kind of
managerial direction through providing proper penalty or rewards for the work that is been
assigned to them (Gurr and Drysdale, 2020). Also, such kind of the leadership style would allow
the firm to recognize the best employees within the workplace and plan better things in the
future. For instance: In Tesco the firm had developed best rewards system that focuses on
providing incentives and bonuses to those employees that have performed extraordinary well in
some specific areas or fields.
Transformational leadership: it is one where leaders look towards the team to inspire
them to achieve the unexpected targets in way that does not demotivate them or make them feel
helpless. Also, this style of leadership would help the employees through organizing various
training and development programmes so that not many difficulties are faced in carrying out
certain work.
Thus, to conclude it can be said that for firm like Tesco where the business environment
keeps on changing it is very much essential that best policies and leadership styles are adopted
from time to time so that firm is able to achieve the unexpected profits in the future and maintain
the best competitive advantage across various regions (Seidel and et.al., 2019). Furthermore,

leaders together with management support would be able to devise changes within the firm in
way that would help the firm to achieve greater height of success.
Application of different theories and models of approach.
Leaders of Tesco is responsible for motivating the employees by analysing needs of
employees and providing incentives accordingly. This motivation helps in enhancing employees'
productivity and performance and overall growth and development of company. Leaders are also
responsible for evaluating changes in external environment and taking decisions accordingly to
make Tesco benefited by such changes. The leadership style mist be effective and efficient
which enhances performance of employees and provide employee satisfaction. Leadership style
opted by management in company is democratic or participative leadership style which provides
employees of company to share their views and ideas and participate in decision-making process.
The other leadership style and theories applied by company are:
Situational leadership theory
The situational leadership theory is based on the concept where leaders assign roles and
responsibilities to employees according to their skills and talent. This theory is also known as life
cycle theory of leadership which is based on two forces i.e. leadership style and individual or
group performance (maturity level). In leadership style the behaviour of leaders are categorized
into four division. The first is delegation where leaders segregate responsibilities in group and
monitor them but are not involved in decision-making process (Wuryani and et.al., 2021). The
next is participating where leaders work with the team and share their ideas and views. In selling,
leaders provide direction to their employees and in telling, leaders tell employees what to do and
how to do. The leadership style will depend on the behaviour and attitude of employees i.e.
maturity level of employees. Tesco has adapted situational theory for evaluating various
situations and taking corrective actions.
System theory
It is the leadership attribute that emphasis more on outcomes rather than steps or process.
The adaption of this leadership theory has enabled Tesco to promote creativity and innovation
within the company and encourage its employees to continuously engage themselves in
innovation. The system theory is adapted by company as it aims to change the perception of
customers towards products and services for welfare or organization as well as society (Harris,
Jones and Hashim, 2021). Activities of company are planned earlier and outcomes are matched

with result desired. The company has various departments and each department has its own goals
and employees of each department are motivated towards innovation to accomplish departmental
and organizational goals.
Contingency theory
Contingency theory is a situation based approach which believes that organizational
change is dynamic process. This leadership style focuses on different situations that arise within
Tesco and take decisions that can enable company to achieve success (Heller, 2019). The
strength of contingency theory is that it is an innovative approach which provides variety of
solutions. The disadvantage of this approach is that it requires high cost for research and the
growth of changes in slow.
Key approaches to operational management and role of leaders and managers
There are various approaches that are used by operational management to analyse the
situation of Tesco and to take corrective measures.
Just in time
Just in time is an approach which includes three main domains: elimination of waste,
continuous improvement in strategies and efficient involvement of employees in business
operations. Continuous improvement is an approach which involves continuous development of
products and services in which Tesco is dealing with. To ensure continuous improvement in
strategies company has developed its step change program. For instance, company has replaced
its shelves to reduce the time taken by employees in rearranging those shelves, company has
implemented self-service checkout which has reduced waiting time of customers while checking
out from stores, etc. For eliminating wastes, company has adapted full fresh program to ensure
that perishable goods are delivered twice a day to reduce wastage and to provide fresh items to
customers (Biswas and Sarker, 2020). JIT is also used as planning and controlling system in
Tesco as involves analysis of demand for products and also forecast the change in trends. The
aim of this is to reduce inventory cost and to make products available to its customers. JIT is also
used as inventory system where orders are from sales counter and orders placed are sent to
suppliers which has decreased storage cost to company.
Total Quality management
TQM is the approach which is used by company to plan for long term to achieve success.
Tesco has implemented this approach to ensure high quality products and services to its

customers which can increase customer satisfaction. The focus of company is on providing
standard products at reasonable rate to attract more customers and to increase market share. The
company deals in variety of products and some products are manufactured by company itself and
sold. Therefore, it becomes necessary for company to provide good quality products which can
help in building good brand image. Company has used concept of quality management to
maintain its leading position in supermarket industry (Erdil, 2020). Tesco has engaged skilled
and talented employees who ensure quality of products and products undergo various quality test
before they are delivered to customers.
Role of manager and leaders
Role of manager
The role of human resource manager is to recruit highly skilled and talented employees and
ensure that right person is hired at right time and at right place.
To segregate roles and responsibilities of employees according to their qualification and
available resources.
To monitor and control the activities to ensure timely completion of work and obtain desired
results.
Role of leaders
 The role of leader is to motivate its employees by analysing needs of each employee and
to enhance their productivity and performance.
 Leader is required to guide and direct its employees so that they can put all their efforts in
achieving goal and objective of company.
Importance of operational management in achieving business objectives
Operational management is very essential in an organization to ensure success and
growth of business.
Increase revenue: The operational management of Tesco helps company in enhancing
productivity and profitability by ensuring high quality of products and services to its customers.
The increase in profit enables company to expand its business using various expansion strategies
(Brown, Bessant and Jia, 2018). The expansion gives competitive advantage to company as it
help in development of good brand image and increases market share.
Survival: For expansion and growth of company it is essential for business to survive in
market and this can be done through effective research of market and its customers. Operational

management of Tesco makes good research of market and customers and evaluate the
requirements of customers and develop a product development plan accordingly. The production
of products according to customer needs and preference will ensure higher customer satisfaction
and build strong customer relationship. The development of loyal customer base enables
company to survive in the market and enable it long terms growth and development.
Satisfying customers: The aim of company is to provide high quality products to its
customers at reasonable rate which can give customer satisfaction. Operational management is
responsible for ensuring quality of products that are manufactured in company and are provided
to customers. The different approaches adapted by Tesco has enabled it in ensuring effective and
efficient production of products and delivery of products at right place and at right time (Reid
and Sanders, 2019). The products that are offered by company are in accordance to customer
preference and trend which ensures customer satisfaction and development of loyal customer
base.
Increase in sales: Operational management of Tesco implements various strategies
which helps company in offering variety of products to large number of customers which
ultimately increases sale of company.
Factors that impact upon operational management and decision-making by leaders and managers.
There are different type of factor which are impact on operation management as well as it
is affecting the decision-making of Tesco.
Global competition- As multinational retailer there are many varieties offered by
company to the respective customers there are large number of competitors worldwide with the
help of organisation. Also, without online shop it is necessary to focus on Asian market so that it
help for grab more customers to attract them effectively.
Material and capital security- both are most important ingredient in operation
management which are necessary to follow to complete need by secure them and it is important
to secure and make sure about the utilisation of material (Coccia, 2018). For multinational
company it can be typical for maintaining the capital security by focus more on all the aspect
which help for improving the availability of material. The availability of material is necessary for
completing the needs of customer as early as possible also it is impact on productions of goods.
Social responsibilities- In order to consider the social responsibilities it is necessary for
maintain good relationship with society as well as there are many social issues which are faced

by company due to improvement and damage the company's business conditions. Also, it is
mainly impact on different types of social responsibilities which is followed by organisation and
that is why leaders and managers are not able to focus on response.
Expansion of technology- Tesco using the best technology in order to focus on
manufacturing and processing as well as it makes the operation process easier. Also, for
employees it is necessary for advancement of technology that forces the company ins order to
target new markets and group as well as good customer base so that it help for expansion of
technology. Tesco need to make the technological advancement decision which is very carefully
use with the help of specific way (Edwards-Schachter, 2018).
Legal consideration- this feature is related to concern about the rules and regulation in
order to provide different type of formalities which are related tos tax, tariffs, vat. Export import
rate etc. Any kind of disobedience can affect business in terms of negative as well as it hamper
the business conditions. So that that kind of business decision taken for proper observation in
order to estimate the legal situation.
Business ethics- Tesco follow all the ethics related to business environment because it
might be practice the business operation in order to maintain the code of ethics in order to focus
on business policies which is not hamper adverse situation.
It has been justified that there are different type of factor which impact Tesco but majorly
Global competition affect company adversely. That is why it impact on business decision-
making by leader and manager. Also, it is necessary to focus on business environment which are
help for providing the view of competition.
In order to analyse the business environment it can be said that it is impact by different
type of issue which are influence the business directly and indirectly. Also, that are also related
to threat as well as challenges faced by company and it becomes complex in nature. In context to
geographical locations it impacts in the process of decision-making by considering change in
taste, preferences and requirements. In addition to this, it can be said that it is related to all the
resources which impact by natural resources such as change in situation and limited supply of
changes (Crilly and Firth, 2019). Also, in context to legislative measure are use for protected the
ecological environment by directly limit the scope of performance in business firm. For the
choose company its is iampcs bys change in environment such as pandemic impacts in operation
as well as productions of product by not getting enough supply of it.

CONCLUSION
It has been concluded that operation is on of the major part of business in order to focus
on alls the element which are related to production or run the business. Also, present report based
on Tesco that is multinational company that impact by various operation practices and decision
of leaders and manager. Analysed the differentiate between the role of a leader and function of a
manager by effectively applying a range of theories and concepts. Then, Assess the strengths and
weaknesses of different approaches to situations within the work environment. Further, the
importance and value of operations management in achieving business objectiveness these
different factors affect the business environment and wider community.

REFERENCES
Books and journals
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