Analyzing Ethical Leadership & Performance Management at TESCO

This report examines the ethical dimensions of leadership and performance management at TESCO. It identifies key issues such as differentiation among employees and unethical leadership, analyzing their impact on HRM practices. The report critically evaluates TESCO's current approaches, including reward systems and policy formation, in light of ethical theories like Utilitarianism. It also explores the potential negative consequences of these approaches, such as a focus on short-term goals and the failure to address unethical behavior. The report concludes by suggesting recommendations for TESCO to adopt more ethical practices in performance management, aiming to improve employee morale, reduce turnover, and enhance overall organizational performance. This document is available on Desklib, a platform offering a range of study tools and resources for students.

LEADING AND MANAGING
ETHICALLY

Table of Contents
INTRODUCTION.....................................................................................................................................2
TASK..........................................................................................................................................................2
Describing issue, practice or policy which represents a potential ethical issue........................................2
Critically analyze and examine current approach of TESCO regarding performance management issue
and its management of ethical problem...................................................................................................5
Suitable suggestions on the basis of how organization could adopt a more ethical approach in area of
performance management........................................................................................................................7
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................10

INTRODUCTION
In recent time, it is quite important and beneficial for management to lead and manage
everything related to their business ethically, which made them capable to obtain several benefits
in term of retaining key stakeholders such as workers. Without doing this, a company is unable
to sustain within specific market for so long as it arises several issues that put negative impact on
productivity and performance as well as brand image of a brand. The current assignment will be
based on TESCO, which fall under the category of leading supermarkets in the UK. It aims is to
enhance the satisfactory level of customers and retain them forever with purchase of quality
items that accessible at supermarket in term of variety. Supermarket operate and manage its
business activities and operations within retail industry, by selling quality grocery, apparel and
other category of goods. It efforts to make change within workplace due to several reasons and
pandemic is the one. The study will explain a problem, which presents a potential ethical
dilemma. Furthermore, it will evaluate existing method to company regarding chosen area and
that is performance management. Lastly, the report will justify two or more justified
recommendations as to how firm could adopt ethical ways in selected area related to HRM.
TASK
Describing issue, practice or policy which represents a potential ethical issue
Performance management is one of those areas that relate to human resource
management as wide term, which effort to increase the productivity and performance level of
workers as well as a company for which they perform (Robert, Giuliani and Gurau, 2020). It may
consider as ongoing procedure of interaction between, HR manager and workers that occurs
throughout year. It defines as business administration tools that use to monitor and effectively
evaluate work conduct by the individual person that perform in workplace to achieve common
aim. It is one of the most challenging and necessary procedures that HRM may take into their
consideration and conduct their practices that affect positively upon it.
In the world of business, there are several ethical concepts and theories related to
performance management as practice of HRM accessible such as Utilitarianism theory (Häyry,
2021). It is a concept of morality that define actions that may contribute to foster pleasure and
happiness at workplace. This theory may also advocate opposes activities that cause unhappiness

or issue. According to this concept, an action is appropriate when its outcomes may present in
form of happiness of majority of people. It can be said that ethical practices and actions related to
performance management may drive sales and operational effectiveness of firm at top, through
which it may obtain competitive edge. Utilitarianism theory of business ethic may encompass
three key principles such as pleasure or happiness, action and equality (Three Basic Principles of
Utilitarianism, Briefly Explained, 2020).
By referring to this, human resource management action and practice regarding
performance management area may present a potential ethical issue that directly impact
employee’s performance and their behavior at workplace within TESCO.
Differentiation among candidates-
It is the main reason behind issue that arise in the context of performance management.
As an action conduct by HR at workplace in TESCO may arise problem of poor performance
management (Van Waeyenberg, Peccei and Decramer, 2020). By making differences between
existing and new workers, they may contribute to emerge this challenge that may put negative
impact on productivity and attribute of individual candidate who may effort to achieve strategic
aims and objectives of company. It is one of those ethical issues or unethical practice, which
always provide negative outcomes that is not acceptable for any brand or management.
Differentiation among workers within supermarket may recognize as an ethical problem, when
people may prefer to switch their job that increase high employee turnover ratio and put negative
impact on brand image in market. This action may present potential ethical issue in regard to
chosen area of human resource management, which may lead to decrease organizational as well
as employee’s productivity. It not included in category of ethical practices that HR may conduct
in worker’s context. This issue it quite serious because it may lead to decrease organizational and
operational management efficiency. It may potentially affect overall performance of business
within retail industry and expectations of stakeholders who may expect to expand business and
enter into new profitable market at global level.
When a manage and a leader in firm may make differences among staff members, their
behavior towards them may consider in list of workplace discrimination that bring several issues
further including current one.

Unethical leadership-
It is another ethical issue that related to performance management area and may put
negative impact of Human resource management practices in TESCO. It can be said that
effective and ethical leadership style support to manage the performance and efficiency of
individual worker at workplace, which directly or indirectly contribute to increase the sales and
profitability of a company (Khaltar and Moon, 2020). But in case of chosen company it may not
possible due to unethical leadership that driven the effort to leaders such as human resource
teams to behave unethically and provide lack of strategic directions that lead to decrease
initiatives of each candidate toward aim achievements. It refers to action and attribute to leader
that is violate or illegal regarding existing moral standards of supermarket. Just because of this,
issue related to performance management in supermarket may arise, which recognize as an
ethical problem. The main reason considering this in ethical issue it lacks of commitment
towards employees at workplace regarding aim achievements. Furthermore, they may do not take
any kind of initiative and commit to reach at expected outcomes, because of unethical leadership
and behavior of human resource managers and their team members.
This issue is critical because it let management in complications in regard to retain
talented and experience workers who may perform effectively and productively and support to
gain competitive advantages (Mishra, Ghosh and Sharma, 2021). It may potentially impact
everyone from individual candidate to high authority in term of decreasing operational
effectiveness and performance of brand that may lead to unable management in regard to give
tough competition to rivals that has operated in same industry by using their key resources, and
competencies. It may affect human resource management effort to build productive workforce at
workplace in TESCO who may contribute to expand business and successfully operate its
functions in new market where profitability and success chances may accessible in bulk.
Due to unethical leadership style adopt by the HR teams and conducting practices
accordingly, human resource department may face legal issues that affect overall performance
and strategy administration practices. High employee turnover, market share loss, decrease in
visiting number of customers, etc. are the potential consequences that might be arise due to
above discuss ethical issue. This issue might not be resolved up to now, because there were no
such effective approaches may use in regard to it. Without any effective plans, strategies and

methods implication at workplace, it is quite impossible for human resource management to
solve above discuss ethical problems that they may face regarding specific area of their field and
that is performance management.
Critically analyze and examine current approach of TESCO regarding performance management
issue and its management of ethical problem
Tesco is one of those supermarkets brands in the world that has provided quality services
and products to target market in each nation or region where it has operated its business
functions in effective manner. It may effort a lot to increase its venture productivity, performance
level, customer’s satisfaction and profitability more than other companies that exist within
similar sector and manage organizational performance at same market. In regard to chosen areas
of human resource management and that is performance management, TESCO may take
initiative in term of developing and using specific approach that is reward system, which is the
main part of its performance management program (Noorazem, Sabri and Nazir, 2021). This
method is quite beneficial and essential for the continuous growth and success of brand in retail
industry where competitive business environment may reach at its high. With this, company may
obtain positive outcomes in term of driving the attention of individual candidate towards making
achievable commitments that they effort to fulfill by working hard and performing in unexpected
manner more than last few weeks or years.
Employee rewards responsibility is the main accountability of HRM as they attempt to
measure the performance and hard work of each worker at workplace, which made them capable
to take better and appropriate decision. It can be critically evaluated that this approach may
contribute to retain talented and knowledgeable individuals in firm that have power to influence
other at workplace and achieve task on time without making any kind of mistake that may
negatively influence final outcomes of their effort. Reward system is the best technique that
TESCO may utilize as strategic approach for performance management (Harmen, 2021). It helps
to gain the attention of skilled people and support to create positive working environment at
work area. Along with these benefits, employee reward system may assist to maximize
productivity. On the other hand, it may affect negatively in several terms that may lead to
minimize operational efficiency of supermarket. For example, employee reward system may
affect in negative manner, when people may obtain rewards by focusing on short term aim

achievement. It may drive their attention towards short term goal instead of long term oriented
objectives which may allow them to develop further plan to gain competitive edges. It may arise
issue related to cost, because for performance management purpose, HRM may reward
individual that increase cost of incentives, etc.
Furthermore, just like in the context of performance management area of HRM, TESCO
may take some methods in its consideration regarding ethical issues that identify and discuss
above in detail. For example, differentiation among employees and unethical leadership are those
ethical problems that affect negatively upon strategic management practices and current
activities of human resource in supermarket.
It may take effective approach into its consideration and that is formation of policies
and rules that drive the attention of manger and leaders towards conducting those activities that
include in list of ethical business practices. With the help of specific policy and rule, firm may
drive the concentration of individual person at workplace towards understanding the importance
of ethical practices and ways through which they do so in appropriate and systematic manner. It
may provide positive results in term of reducing workplace discrimination and creative
productive atmosphere where workers either they are new or old may perform effectively and
productively and do so forever without facing any issues or challenges that may decrease their
morale or demotivate them (Nguyen and et.al., 2020). This practice or approach of TESCO may
relate to the ethical theory that is Utilitarianism, as it stated that good and appropriate actions in
return provide effective outcomes and formation of above terms as a right actin may allow
company to get desire results such as it may reduce high employee turnover, low morale and
provide outcomes in term of increasing productivity, commitment level and employee retention.
By following rules and policies at workplace human resource and other departments at
workplace as well may conduct ethical practices and suggest other to do so, which is important
and beneficial for brand success for long run.
On the other hand, instead of providing and putting benefits, this approach may affect in
negative manner when some people may do not accept to follow terms and conditions or may do
not conduct ethical practice, which may decrease the performance of other people and make
change in productive behavior of individual (Schiff and et.al., 2020). It can be critically analyzed
that this approach of TESCO in the context of determine ethical issue may outcome negatively

and let people away from their strong and effective commitment that contribute to make brand a
productive one. It is a kind of those action that cater negative results as stated in chosen ethical
theory, which may spread negativity at workplace among people and may unable brand to grow
continually. In the context of these consequences, it is so important for management to use the
best techniques and create idea through which they may make everything better.
Suitable suggestions on the basis of how organization could adopt a more ethical approach in
area of performance management
 In regard to unethical behavior and action or practice of HRM related to performance
management, TESCO can take right decision in term of considering, adopting and
implementing appropriate recommendations as an ethical approach. For example, firm
can take initiative to involve all the workers in goal setting procedure to enhance
ownership and manage their performance accordingly as this process allow them to
understand what employer may expect and seek to achieve through their hard work and
efficiency (Maltseva, 2020). Instead of making differences between old and new
employees, human resource management within supermarket can take action to accept
everyone and efforts to provide benefits to each person that capable to contribute to aim
achievement and increase organizational productivity for which HRM also effort. They
can attempt to manage performance of individual person at workplace by following
ethical business practices and other concepts related to this term. It can be said that
employee’s involvement in decision making and aim setting procedure can provide desire
results to organization as it effectively help in performance management.
 Manager in company can develop aims with inputs that they can collect from varied
candidates. Employee engagement is the key element of performance management as it
provides chance to both workers and employers to know each other appropriately and
understand their expectations. When people in firm can highly engage in decision making
and goal setting, they can work even better and in productive manner. They can
contribute to enhance organizational productivity and strengthen brand to give tough
competition to rivals that run in same sector such as ASDA, Morrison’s, Sainsbury, etc.
 Just like above, in the business world there are more ethical approaches that TESCO can
take into its consideration and be more ethical brand as opposite to competitors. For
instance, usage of ethical leadership style at workplace it the best solution that firm can

accept or adopt forever and handle issues that arise due to some unethical practices
(Jameel and Ahmad, 2020). Use of appropriate leadership style in company can decrease
ration of high employee turnover and increase productivity as well as performance level
of individual candidate, which is important to maximize for human resource management
as they accountable to do so systematically. By using situational and transformational
leadership styles, HRM can contribute to behave ethically and conduct productive
environment which enhance performance extent and manage employees accordingly.
Without doing this, organization cannot be able to build productive teams of players that
play vital role in continuous progress and success of brand (Top, Abdullah and Faraj,
2020). With specific or both style, human resource manager can manage staff’s
performance by providing appropriate directions and guidelines to each other them
without making differences between them on the basis of age, color, height and other
factors that may put negative impact on mental and physical well-being of candidates. It
drives the attention of worker towards achieving set goals and objectives and providing
positive outcomes to brand. leadership style use in company within ethical manner may
promote high performance standards through which management can take decision to
achieve further success and develop plan to gain competitive advantages in the future,
which bring several benefits for each stakeholder that connect with TESCO.
 Organization along with above two, can also adopt more ethical way in area of
performance management. As it can make investment in training and development
programs that help to enhance performance level and manage it successfully. By
investing in this kind of system, firm can take imitative to appropriate manage staff’s
performance which is necessary for its rapid growth and continuous success in market
where many other brand already available and effort to gain key benefits by developing
plans and strategies. Training and developing session at workplace play significant role in
term of performance management because it allows individual candidate to learn some
new skills and gain knowledge regarding those subjects which they may use in the future
and complete work on time without making any common or minor mistake (Haryono,
Supardi and Udin, 2020). Human resource manager can develop plan to do so by
considering the needs and expectations of workers which made them able to train people
accordingly. It helps to build strong workforce at workplace and permit company to

conduct some innovative approaches by having these kind of excellent workers. It helps
to obtain long term results and give much efforts to achieve set aims.
CONCLUSION
On the basis of overall discussion, it has been concluded that organization has overcome
the ethical issue related to performance management in effective and excellent way by
developing appropriate approaches and following above suggestion that it valid and suitable
according to problem. It has obtained competitive edge and retained talented, productive, skilled,
experienced and knowledgeable candidates that has contributed to achieved goals and set
objectives of company. Furthermore, from above analysis, it has been determined that by using
excellent approaches in ethical manner in term of utilizing leadership style and engaging worker
in decision making as well as aim setting, human resource management has successfully
managed the performance of their employees in firm. Their initiatives and decisions has driven
the attention of organization towards entering into productive market at global level where it has
also gained key benefits in several terms. Efforts of human resource manager in term of
accepting the principles of ethical theory has enabled them to get positive outcomes that
enhanced business performance and allow to generate revenue more than other supermarkets.

REFERENCES
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Online
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< https://www.thoughtco.com/basic-principles-of-utilitarianism-3862064>