Tesco's Leadership and Management Styles: A Report

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Management and Operations
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Executive Summary
Tesco has become successful as a largest retailer by adopting different leadership styles and
operations management. It is observed that Tesco leaders act according to the situation by
following both contemporary and traditional leadership theories. The report highlights the
importance of leaders and mangers in upgrading the market performance of Tesco.
Different operations management has been adopted by the organization so that employee
satisfaction and organizational performance are maintained together. The organization has
realized the value of both employees and external resources for business success. Therefore,
efficient management as well as leadership styles has helped the organization to expand its
business in other countries.
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Table of Contents
Introduction......................................................................................................................................4
LO1. Differentiate between the role of a leader and the function of a manager.............................4
P1. Define and compare the different roles and characteristics of a leader and a manager........4
Company Background.................................................................................................................4
LO2. Apply the role of a leader and the function of a manager in given contexts..........................5
P2. Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts........................................................................................................7
P3. Apply different theories and models of approach, including situational leadership, systems
leadership and contingency..........................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11
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Task A
Introduction
Tesco is the largest retailer of the UK that offers customer-oriented business. The organization
holds a mission to provide quality services to the customers. By developing cost-effective
strategy, the organization wants to satisfy their existing customers as well as attract new
customers. In order to do so, the company has adopted numerous strategies to remain erect in the
competitive market. Tesco has developed efficient management as well as leadership styles that
can be effective for the business operations in the end. Although managers and leaders have
different roles, yet it is seen that some qualities of leaders must be present in the managers. This
facilitates them to upgrade the organizational environment so that employee performance is
enhanced and thus, it affects the organizational performances.
The report outlines the different leadership styles adopted by Tesco at different times so that they
can provide quality services to the customers. Moreover, operations management is regulated by
the managers so that Tesco can understand the importance of operations management in
achieving business success. A clear relationship is drawn between the leadership styles and
management so that organizational performance is enhanced and economic benefit is enormous.
The decision-making styles must contain the qualities of both the leaders and the managers so
that effective decision is taken that will turn positive for the organization.
LO1. Differentiate between the role of a leader and the function of a manager
P1. Define and compare the different roles and characteristics of a leader and a manager
Company Background
Tesco is a renowned multinational merchandise retailer as well as groceries, which is founded by
Jack Cohen is based in the United Kingdom’s and is headquartered in Welwyn Garden City,
Hertfordshire, England. It is has occupied third position in terms of largest retailers in the world
as per its gross revenues. Besides, it has occupied the ninth largest position in terms of retailers
in the world in terms of revenues. Tesco is seen to be operating in 6,800 shops with 450,000
employees and is located in United Kingdom, India, Ireland, Thailand, Malaysia, Hungary,
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Poland and Czech Republic. The company is known to have chain of supermarket, superstore,
hypermarket as well as convenience shop. The net income as well as operating income of the
company is 1,320 million Pounds and 2,206 million pounds respectively (tescoplc.com. 2019).
Tesco’s mission is to ensure creation of values for customers for building customer loyalty,
which will be long lasting. Tesco has incorporated two major decisions in its business. The first
decision includes ensuring each and every customer is being treated equally as well as
effectively. Secondly, it has taken resort to treat its customers in a delicate way. The company’s
objectives have been set in accordance with the philosophical thought, which states foundation of
customer oriented business (Qureshi, 2017). In this section, the leadership as well as
management style applied in Tesco will be discussed in details.
Tesco has been able to be a successful retail chain store organization in United Kingdom in
specific and in various regions of the world in general. The driving force behind the success of
the company has been found out to be the effective leadership as well as management system.
However, differences exist between the leadership as well management style of the company.
Management is considered as the act, which ensures effective delivery of tasks. However, on the
other hand, leadership is related to providing people with inspiration (Panaccio et al., 2015). It is
the responsibility of the leaders to ensure inspiration of employees for the creation of a good
environment. This leads to enhancement of production as well as quality services On the other
hand; Tesco follows an autocratic style of management for monitoring the employees effectively.
According to the management of Tesco, employees undertake their tasks after being coerced,
which necessitate the supervision of the tasks.
LO2. Apply the role of a leader and the function of a manager in given contexts
Leadership in Tesco
Tesco has been able to be a successful retail chain store organization in United Kingdom in
specific and in various regions of the world in general. The driving force behind the success of
the company has been found out to be Mr Tery Leahy, who is the CEO of the company and has
been identified as a visionary leader since he has been able to direct the company for bringing
strategic organizational change. As stated by Lorinkova and Perry, (2017) an organization is
influenced by effective leaders must have the abilities of having a clear vision and direct others
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in accordance with that. Herdman et al., (2017) has stated that a leader needs to have the ability
to motivate the team for achieving the goals of the company. Likewise, Mr.Tery Leahy has been
able to direct as well as motivate the working team for delivering success in order to enable them
in achieving goals. He has been able to motivate his team. As opined by Bertoldi et al., (2018) a
proficient leader needs to have the ability of focus on customers and take resort to customer
oriented leadership, which would enable the company in achieving success. Likewise, leaders
have been able to focus on their customers for recognizing the closer link that employees as well
as customers have within each other. He works in accordance with the philosophy, which states
that fair treatment of employees will enable the latter in delivering more quality production. It
implies with increasing quality production, customer satisfaction will also increase. This will
lead Tesco to gain more profit. Leadership style will thrive with enhancement of employee
satisfaction, which is strongly believed by the CEO of Tesco. Hence, he believes in allocating
tasks to employees, which will be highly interesting. Moreover, this will enable the employees in
assisting the leader in taking crucial decisions (Sharma and Bhatnagar, 2017).
Leahy was entrusted with a formal authority as soon as he joined Tesco, which is why it has
become possible for him in leading his team through exercising the powers, which the company
has granted. The leadership style adopted by the company is seen to be participatory since it
grants the employees with the authority of taking part in the process of decision-making. This
will enable the leader in motivating them to make themselves feel that they form an integral part
of the company (Smith et al., 2017). Hence, in Tesco leaders have been able to appoint leaders
for bringing organizational change, which will lead to enhancement of the management process’s
effectiveness.
Management in Tesco
Tesco has the vision of opening more business opportunities in the United Kingdom as well as
across Europe. Tesco has incorporated management system in accordance with its organizational
structure consisting of five functional departments including finance, human resource,
administration, development as well as marketing and research. Tesco has taken resort to the
management style, which enables the managers in managing distinct departments differently
(Srivastava and Dhar, 2016). The concept of management in accordance with the objectives is
utilized by Tesco. The reason behind this is the time bound objectives, which indicates to the
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dependence on employees’ performance appraisal (Metz AL., 2017). This is the reason why line
managers in duty of Tesco give distinct duties to the managers. For instance- an objective
including increase in customers after a period of time might be set by the line manager
accordance with which, the managers need to work.
Tesco Managerial Integration
Focuses on increasing satisfaction of the clients’ needs have been incorporated by Tesco. The
company aims to enhance customer loyalty for increasing customer satisfaction. An effective
logistic system, which is known as the Integrated Logistics Management System has been
adopted by Tesco, which has enabled Tesco to reduce the expenses as well as costs along with
the enhancement of the performance of the business. Integrated Logistics Management System
has been found out to be an effective practice strategy ensuring the products of the company’s
sustainable distribution (Legood et al., 2017).
P2. Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts
The leadership styles as well as managerial functions enable an organization in bringing changes
in its strategies as well as policies for improving the operations along with reducing the
manufacturing cost. This will enable an organization fulfilling its objectives.
The managers as well as leaders of Tesco function in order to enable it in fulfilling its targeted
goals. Several functions of management along with distinct traits are there, which enables
managers in performing effectively. Recently, Tesco faced with an allegation of utilizing
controversial “fake farming” branding with a food charity on own brand meat products, which
misled shoppers. In accordance with the report, Tesco since 2016 used the name of a genuine
farm named Woodside Farm for its value pork range (theguardian.com. 2017). This kind of
situations necessitated effective management as well as leadership skills. These kinds of
controversial situations demand implementation of plans and strategies, which will help in the
rejuvenation of the reputation of the company and increase in its revenues. Several theories of
management are there, which leads to the growth of the company. Tesco’s department of
operational management is seen to be focusing on the management theories and combining
leaders’ efforts for cutting down the manufacturing cost. Tesco applies contemporary theory of
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management for dealing with the controversial situation of utilizing name of another brand on its
own products. Strategies can be planned including selecting suppliers, who will be able to
provide quality raw materials by the managers, which will enable the company in producing
genuine quality products (Reina et al., 2018). Traits are used by leaders of Tesco in motivating
their employees for adopting advanced technologies for producing quality products as well as
eliminating the resistance of changing among employees through the creation of a trustworthy
environment through communicating skills.
P3. Apply different theories and models of approach, including situational leadership,
systems leadership and contingency
Management of an organization deals with the joint efforts of the managers and employees for
accomplishing goals. The managers need to collaborate with their employees for setting the
performance standards (Batool et al., 2016). On the other hand, duties are delegated to the
employees by the leaders for motivating then in performing proficiently.
Tesco applies Classical Management Theory through which, policies are made by the managers
for the enhancement of productivity. KAIZEN strategy has been developed by the managers for
improving the production activities with the help of joint efforts of both the management as well
as the staff (Paraschivescu and COTÎRLEȚ, 2015). This participative leadership style applied by
Tesco will help in the improvement of production by incorporating inputs from both the workers
as well as the managers.
Tesco applies Behavioral Theory of Management, in which, policies considering the skills as
well as the abilities of the employees along with the leaders are followed by the managers
(Greve, 2015). Besides, transformational leadership style is applied by the company, which leads
leaders in communicating effectively with the employees and incorporating their point of view
while taking crucial decisions (Hoch et al., 2018).
Contingency Theory concentrates on bringing changes within strategies in accordance with
changes in situations. A pivotal role is played by the leaders in influencing employees in
bringing changes in the proceedings for meeting the challenges, which are seen to be prevailing
in the market (Otley, 2016). These leadership as well as management theories is applied by
Tesco effectively, then it will enable it in overcoming its controversial situation.
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Situational Leadership is referred to the form of leadership, in which, the leadership style is
dependent on the capabilities as well as skills of the employees, which in turn will influence
leaders in completing the task effectively (Thompson and Glasø, 2015).
This kind of leadership can affect Tesco’s operation management since distinct leadership styles
in accordance with distinct situations will be applied by the leaders. The company’s prevailing
situation where the company is seen to be facing legal threat, situational leadership will be able
to play a pivotal role in enabling it in overcoming the chaotic situation.
Tesco applies Systems Leadership, in accordance with which, the workings of the employees as
well as the company’s situations are controlled and communicated by the leaders for making the
employees work in accordance with the company’s needs (Macdonald et al., 2018). For instance-
changes within its operations are needed to be made by Tesco for which, effective strategies are
needed to be made by the company for making improvements in their activities regarding the
manufacturing of quality products. A crucial role is played by the management of objectives in
solving the operational issues effectively through sharing with the employees the decision
making process. The joint effort of the employees as well as the management of the company
will enable the company in conducting operations effectively and produce quality products at
cost effective prices. Motivation can be brought among the employees by the Management by
Object Approach, since it will enable the company in making them feel that they form a crucial
part of the company. This will enable them in performing effectively for the fulfillment of the
company’s goals. Tesco by applying chaos theory will enable the managers and leaders in
strategizing effectively in accordance with the changes.
Conclusion
It is evident from the report that situational leadership, contingency leadership and system
leadership are adopted by Tesco at different times so that they can maintain a healthy working
environment. Moreover, the organization has become successful by adopting Transformational,
Charismatic and Action-Centered Leadership style. Operation management is significant that
uplifts the organizational performances by creating immense level of efficacy. Several
approaches to operation management include Six Sigma Approaches, Lean Production, etc. Lean
production is adopted by Tesco to manage its business operations. Additionally, it is also seen
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that the organization has also adopted Six Sigma Approaches to facilitate operational
management. The company has adopted Lean Production so that it can cut costs by initiating
effective business management within the organization. Tesco have developed efficient
leadership strategies that guide the employees to provide excellent performances for the
betterment of the organization. The operational management approaches taken by the
organization helps to reduce those activities that are not in favor of the organization. The
organization adopts numerous operational schemes to maintain the company sticks, maintenance
of valuable products and controlling conflict environment. Thus, efficient leadership styles as
well as effective management along with operational management tactics have helped Tesco to
build a global image.
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References
Batool, S., Khattak, S.R. and Saleem, Z., 2016. Professionalism: A Key Quality of Effective
Manager. Journal of Managerial Sciences, 10(1).
Bertoldi, B., Giachino, C., Rossotto, C. and Bitbol-Saba, N., 2018. The role of a knowledge
leader in a changing organizational environment. A conceptual framework drawn by an analysis
of four large companies. Journal of Knowledge Management, 22(3), pp.587-602.
Greve, H.R., 2015. The Building of the Behavioral Theory of the Firm Continues. Journal of
Management Inquiry, 24(3), pp.334-335.
Herdman, A.O., Yang, J. and Arthur, J.B., 2017. How does leader-member exchange disparity
affect teamwork behavior and effectiveness in work groups? The moderating role of leader-
leader exchange. Journal of Management, 43(5), pp.1498-1523.
Hoch, J.E., Bommer, W.H., Dulebohn, J.H. and Wu, D., 2018. Do ethical, authentic, and servant
leadership explain variance above and beyond transformational leadership? A meta-
analysis. Journal of Management, 44(2), pp.501-529.
Legood, A., Thomas, G. and Sacramento, C., 2016. Leader trustworthy behavior and
organizational trust: the role of the immediate manager for cultivating trust. Journal of Applied
Social Psychology, 46(12), pp.673-686.
Lorinkova, N.M. and Perry, S.J., 2017. When is empowerment effective? The role of leader-
leader exchange in empowering leadership, cynicism, and time theft. Journal of
Management, 43(5), pp.1631-1654.
Macdonald, I., Burke, C. and Stewart, K., 2018. Systems leadership: Creating positive
organisations. Routledge.
Metz, I., Kulik, C.T., Cregan, C. and Brown, M., 2017. The manager as employer agent: The role
of manager personality and organizational context in psychological contracts. Personnel
Review, 46(1), pp.136-153.
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