Analyzing Leadership and Management Effectiveness at Tesco: A Report

This report provides a critical analysis and evaluation of leadership and management practices within Tesco, assessing their effectiveness on the company's overall performance. It begins with an introduction to leadership and management, differentiating between the two concepts, and then provides a brief overview of Tesco's operations and market position. The analysis delves into academic theories and models, including transformational and transactional leadership, scientific management, Theory X and Theory Y, and motivational theories such as Maslow's hierarchy of needs and Herzberg's two-factor theory, to compare and contrast leadership and management styles within Tesco. Key performance metrics like employee turnover, costs, quality, market share, and profit are discussed to evaluate organizational performance. The report also examines how Tesco's leadership and management strategies impact employee satisfaction and organizational outcomes, offering a comprehensive view of the company's approach to these critical areas. The report is a valuable resource for students studying leadership, management, and business strategy.

Developing leadership and
management skills

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
Analysis and comparison between leadership and management.................................................4
Key performance metrics of organizational sector, market and industry....................................6
Organizational leadership and management performance...........................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

EXECUTIVE SUMMARY
In this report critical analysis and evaluation of leadership and management within Tesco is done
and also the assessment of the effectiveness of the overall performance with regard to Tesco also
a brief about Tesco will be given. Then academic theories and models to analyse and compare
the leadership and management in Tesco. Transformational and transactional theories are being
used to do the same for leadership and scientific management theory and theory X and Theory Y
are used in case of management. Key performance matrix of Tesco like employee turnover, cost,
quality, ma,ret share, profit etc. is also discussed. Maslow’s need hierarchy theory and
Hertzberg’s two factor theory and expectancy theory was also taken into account to determine
the employee satisfaction and organizational performance.

MAIN BODY
INTRODUCTION
Leadership is the ability of an individual or a group to influence or guide others. This
element paves the direction for further actions. They develop the vision and mission, make
efforts and it is all about mapping out where the organization need to go to "win" as a team or an
organization. Leaders are the people who focus on doing the right things and also their leadership
is dynamic, exciting, and inspiring. Management is the process of planning, organizing, staffing,
directing and controlling the activities of the organization. It is the backbone of all the
organization. Leadership is an inseparable part of management and plays a vital role in
managerial operations, while technical as well as social processes have management as their
main component. In the report critical analysis of leadership and management within Tesco will
be done and also assessing the effectiveness of these on Tesco’s overall performance. Tesco is a
UK based supermarket which has its headquarters in London, England. It is regarded as the third
largest retailer in terms of gross revenues. It has the following segments like supermarket,
hypermarket, and superstore and convenience shop. It was founded in 1919 by Jack Cohen. This
supermarket has worldwide shops and has covered a global market has original product range of
grocery and general merchandise. Apart from supermarket it has also diversified into other areas
such as books, clothing, toys, petrol, software, financial services, telecoms etc. it is also listed on
London stock exchange. Tesco has also diversified itself on online platforms and started loyalty
card for regular or premium customers to boost sales. Their primary aim is “to serve the
customer” and also keeping the customers happy. The also moved their focus on ‘one stop
shopping’ which means the customer can get all the products under one roof.
Analysis and comparison between leadership and management
Transformational leadership is a leadership theory which aims at moving the followers
to make them aware about what is important and away from their own self-interests. It was
developed by James Macgregor. This theory is based on processes and control. It motivates and
inspire workers by influencing them rather than directing them (Ma. and Jiang, 2018). The focus
of transformational leadership is on goals. The leaders of Tesco are generally passionate,
energetic and enthusiastic etc. the leader works with the followers or team to determine if there is
any changes needed and also leader’s behaviour influences the behaviour of followers and also

motivate them to do well. The leaders in this theory are concerned about their followers. It is
proactive in nature and also works on the principle to change organizational culture by
implementing new ideas. The objectives are attained through higher ideals and morals by the
employees. It emphasis on undertaking ethical work which have clear values and standards. It
gives importance to cooperation, effective and open communication and authenticity.
Transactional leadership is also a leadership theory which aims at moving the followers
to complete their roles as agreed with a leader in exchange for a reward. This theory focuses on
inspiring others to innovate and make changes that helps the Tesco’s grow. In this type of
leadership in which leaders make the followers work and be motivated by both the rewards and
punishments. It is effective in emergency situation (Prasad. and Junni, 2016). They are not good
where innovation and creativity is at most priority. It depends upon people who are self-
motivated and who can work well in structured and directed environment. The focus of
transactional leadership is vision. This leadership generally uses management by exception
which means until a negative or very bad exception comes the leaders don’t involve if the things
are going as per the plans. The leaders in this theory are less concerned about their followers as
the leader directs and is goal-oriented. The practical approach and directive behaviour of the
leader is overall effectiveness of transactional leadership. To perform such leadership depends
upon some circumstances. This leadership also encourages productivity and also provide easy to
understand structure. Transactional theory is responsive in nature and it also works in the culture
of Tesco.
Scientific management theory- This theory was given by Frederick Winslow Taylor and
also known as classical management theory. The focus is on productivity and also it is the art of
identifying and understanding what is to be done in the way which is best and cheapest. It helps
find out the cause and effect relationship between variables in a particular situation (Waring,
2016). This theory has four major elements or principles such as: replacing the rule of thumb by
scientific methods- as per this principle there is only one best method to maximise efficiency,
harmony not discord – as per this principle there should be harmony between the workers and the
management, cooperation not individualism – in this principle he suggested that competition
must be replaced by cooperation and both management and workers should realise each other’s

importance, and lastly development of each and every person to his or her greatest efficiency and
prosperity- training is essential for development of workers of Tesco.
Theory X and Theory Y – This theory was given by Douglas McGregor as he examined
the behaviour of individuals at work. It shows dual aspect of human being and has grouped this
into lower-order needs and higher order needs. In this theory X determine that employees are
naturally lazy and unmotivated and also dislikes works which gives the leader authoritative type
of leadership. It also assumes that employees avoid responsibility and these type o employees are
supervised on a regular basis (Daneshfard. and Rad, 2020). In this Tesco works on a carrot and
stick basis and this approach is best suited in large scale production operation. On the other hand
theory Y determined that employees are active and motivated to work. They are also creative and
take responsibility and achieve the given goals. In this case the decision making power also rests
with the lower levels unlike Theory x in which the decision making power is centralized at top
level. In case of theory X the work is repetitive in nature but in case of Theory Y they work on a
project that widens their skills and knowledge. Also in theory Y employees keep their innovative
and creativity ideas in front of leaders and this approach is best suited for work which requires
knowledge and professional services.
Key performance metrics of organizational sector, market and industry
Key performance metrics are discussed using employee turnover, costs, quality, market
share, growth or profit of Tesco
Employee turnover- Employee turnover is a tool which measure the number of employees who
leave organization in specific time. Tesco show positive employee turnover rate because they
treat its staff with respect whether they are male or female or any age group they treated all
equally. They support and provide training to all its employees to develop the basic skills which
include literacy, doing relevant work, qualifications etc.
Costs- Costs are the price which are paid and it measures in money terms. Tesco maintain proper
cost because they provide product which are cheap as compare to competitors without
compromising on quality. They manage this because they have such suppliers which give raw
materials at low costs because they purchase in bulk (Gandolfi and Stone, 2018).
Quality- Quality show the characteristics or nature of product. Company believes that one
should never compromise on quality no matter what. Quality is the legacy for Tesco which they

always maintain. Nowadays consumers are concerned about quality more than price. They are
ready to pay more price for good quality of product.
Market share- Market share is the percentage of market space of the company. Tesco have good
market share. Company capture market share of every country because they make such products
which are demanded by the customer. Tesco believes in innovation. They think that to survive
for the long term in the market you should timely come up with innovation and provide what
customer want.
Growth or profit- Growth is the process of development of the company. Company's growth is
good because they make good profit. Sales growth is the most important aspect for the success.
Company should track its expenses properly and calculate the profit by considering expenses and
income. Unnecessary costs should cut so that more profit can be achieved. Company can even
raise prices to increase revenue.
Organizational leadership and management performance
Maslow's hierarchy of needs is a motivational theory which include five models-
Physiological needs- Tesco provide good working environment to its employees. They give
timely and fair salary to the workers. Tesco have canteen facility in the premises and also
provide locker facility to everyone.
Safety needs- Tesco is providing health insurance to its employees. They are also having
contract of employment which is helpful for employees. Company should also provide other
benefits and insurance facilities so that employee get motivated and its performance will increase
(Fiaz, Su and Saqib, 2017).
Belongingness and love needs- Tesco make sure that everyone is working happily and if
working in a team than they have no problem with their members. Company give offers for
water parks, gyms etc. so that employees feel valuable and will also feel that they are getting
attention from the organization.
Esteem needs- Tesco celebrate for the achievement of the employees and also appreciate
employees for the hard work. Company give respect to every employee and make sure that
everyone is respecting each other.
Self-actualization- To reach the higher level Tesco give personal development plan which help
the employee to enhance the skills. At this stage self-fulfilment plays a vital role.

Hersberg's motivation theory states that two factors are there that is present in the
organization which influence motivation.
Motivating factors- Tesco make sure that they praise their employees for their achievements.
By doing this employee will feel proud and valued. Company also provide recognition to its
every employee and appreciate for the success (Al Khajeh, 2018). Superior should also give
recognition to the subordinates. Company should come up with interesting project so that
employee will feel challenge in the work which will motivate them. Company should give
responsibility to the employees regarding the work assigned to them. Employee should get
opportunities for promotion. Company ensures that everyone gets equal growth.
Hygiene factors- Company have clear and fair policies. Can look at competitor's policies also
while formulating the policies. Supervision should be proper and good. Employees should give
reasonable authority. Company want to provide healthy environment within every stage in
organization, nobody should bully anyone. Hygienic and safe working environment should be
provided by the company. Fair remuneration should be provided by the company to its
employees. Organization should take care of the status of its employees, which will motivate
them. Company should make employees feel that their jobs are secured so that they work without
any pressure.
Transformational leadership- It is a leadership style in which leaders encourage and motivate
employees so that they can do innovation and bring the change which will help to grow the
company in the future. This can be done by providing good culture and freedom at the
workplace. They give authority to the trained employees regarding their task. This is
management technique which will help employees to be more creative and innovative at the
same time. Employees are trained to become transformational leaders and serve the company.
This will help employees to feel motivated which will increase in the level of performance and
increase the productivity at the same time.
Hersey and Blanchard situational leadership include four models-
Directing- Company focus on directive behaviour than supportive behaviour. Here leaders are
concern with the task only ignoring the personal needs of the employees. Task should be clearly
communicated and process should be easy to follow. Proper direction should be provided by the
company so that organizational goals can be achieved.

Coaching- It is also called as the high supportive leadership style. Here leaders should motivate
and provide training for shaping skills of the employees so that they willingly take more
responsibility. Leaders should be supportive with their subordinates so that they work
enthusiastically.
Participating- Proper interaction should be there between leaders and team members. Leaders
should listen and praise their followers. Here leader trust on the employees for the day to day
activity as a result subordinates grow (Gandolfi and Stone, 2017). Leaders will give feedback to
the employees so that they will motivate to work more in the future and will also increase
productivity.
Delegating- It is the final style which involve low support and directive behaviour. Here
subordinate work independently and also take responsibility. Leaders follow autonomy, while
maintaining that they are not giving much responsibility to followers. In this leader should
proper monitor them.
CONCLUSION
Through this report it can be concluded that comparison between leadership and
management is done. Employee turnover, quality, costs, profit etc. are very important aspect for
measuring the key performance of the organization. Company can grow only if they will take
care about their employees, work life balance for employees are very essential so that
performance will improve. Company should also consider customer demand and timely
innovation should have done to beat the competitors. Management performance are evaluated by
using motivational theory like Maslow's hierarchy of needs which include five needs if those
needs are followed properly by the company than their employee turnover ratio will improve,
Hersberg's motivation theory has two aspects that are motivation and hygiene, Transformational
leadership and hersey and Blanchard situational leadership which include four models.

REFERENCES
Books and journals
Al Khajeh, E.H., 2018. Impact of leadership styles on organizational performance. Journal of
Human Resources Management Research. 2018. pp.1-10.
Fiaz, M., Su, Q. and Saqib, A., 2017. Leadership styles and employees' motivation: Perspective
from an emerging economy. The Journal of Developing Areas. 51(4). pp.143-156.
Gandolfi, F. and Stone, S., 2017. The emergence of leadership styles: A clarified
categorization. Revista De Management Comparat International. 18(1). p.18.
Gandolfi, F. and Stone, S., 2018. Leadership, leadership styles, and servant leadership. Journal of
Management Research. 18(4). pp.261-269.
Ma, X. and Jiang, W., 2018. Transformational leadership, transactional leadership, and employee
creativity in entrepreneurial firms. The Journal of Applied Behavioral Science. 54(3).
pp.302-324.
Prasad, B. and Junni, P., 2016. CEO transformational and transactional leadership and
organizational innovation. Management Decision.
Waring, S.P., 2016. Taylorism transformed: Scientific management theory since 1945. UNC
Press Books.
Daneshfard, K. and Rad, S.S., 2020. Philosophical analysis of theory x and y. JOURNAL OF
MANAGEMENT AND ACCOUNTING STUDIES. 8(2).