An In-Depth Analysis of Tesco's Management and Operational Framework

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This report provides a comprehensive analysis of Tesco's management and operational structure. It begins with an overview of Tesco, its hierarchical management structure, and the roles of managers and leaders, clearly differentiating between the two. The report then delves into the application of various leadership and management theories in different organizational situations, such as conflict resolution, change management, and improving employee working environments. It evaluates different leadership approaches, including situational, systems, and contingency leadership, within the context of Tesco's operations. The report concludes with recommendations for future improvements, emphasizing scientific human resource management and collaboration between managers and leaders to achieve organizational goals and enhance employee motivation. This report provides valuable insights into Tesco's management practices and offers practical recommendations for improvement.
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Management and Operations
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Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of the chosen organisation “TESCO”.........................................................................1
TASK 1............................................................................................................................................1
1. Overview of Tesco management structure..............................................................................1
2. Define managers & leaders with their roles and highlight the difference between leadership
and management..........................................................................................................................4
3. Different roles of the management and leadership in the context of different organisational
situations......................................................................................................................................6
4. Evaluation of the different approaches to leadership and management in the context of
leadership theory..........................................................................................................................7
5. Conclusion and recommendations for the future improvements taken by Tesco's managers
and leaders...................................................................................................................................8
TASK 2............................................................................................................................................9
1. Introduction to the key operations of the Tesco.......................................................................9
2. Roles and responsibilities of managers in the key operational functions................................9
3.Different approaches that is being used in management operation .......................................10
4.PESTLE Analysis...................................................................................................................11
5. Improvement of operational efficiencies by using management and leadership approaches 12
6. Conclusion and recommendations for the future improvements taken by Tesco..................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Overview of the chosen organisation “TESCO”
Tesco plc is a leading organization in the retailing industry which is working at the global
level. Company's headquarters is in England, United Kingdom (UK). It was founded in year
1919 by Jack Cohen. It has around 7000+ stores in whole world (Walker, H. and et. al., 2015).
Present report will highlight the management structure of the Tesco, different between
leaders and managers with their responsibilities and implementation of different leadership and
management theories on different organisational situations. It will also evaluate different
approaches in context of leadership theories. It will introduce the key operations of the Tesco,
roles of managers in that key operations and various approaches to the operational management
of Tesco. It will also tell about the improvement of operational efficiencies. It will recommend
for the future improvement of managers, leaders and organisation.
TASK 1
1. Overview of Tesco management structure
Tesco Company management structure is hierarchical structure in which various
management levels and layers of management are there. It is in the form of hierarchical due to
the huge size of the organisation.
In hierarchical structure, there are various authorities who are working at different level
with different roles, responsibilities and duties. Higher the hierarchical structure, higher the
chance for the span of control in the organization.
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Illustration 1: Tesco Structure Chart
Source: TESCO COMPANY ORGANIZATIONAL STRUCTURE CHART EXAMPLE, 2016.
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In Tesco hierarchical structure, there are 3 level of management with board of directors.
This hierarchical structure also consists store level also in which 4 layers of the management are
available (van Aken, Chandrasekaran and Halman, 2016).
Tesco Board of directors has 14 members which include Chairman, Chief financial
executive, Group Chief Executive and non executive directors. Out of members, 11 members are
non executive directors, 3 are executive directors and 1 is company secretary.
Tesco Hierarchical structure has various management teams of different departments in
which managers, employees and other staffs are working in various management layers for the
purpose of achieving the organisational goals.
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Illustration 2: Management Structure
Source: Management Principles of Tesco PLC, 2018.
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2. Define managers & leaders with their roles and highlight the difference between leadership
and management
DEFINITION OF MANAGERS AND LEADERS WITH THEIR ROLES
MANAGERS AND THEIR ROLES
Manager is a key employee for the organisation who is accountable for the operations of
the business. His main functions are as follows - planning, organizing, staffing, directing and
controlling the activities and people of the organization for the purpose to create co-ordination
and achieve the organizational goals.
Roles of the Tesco managers are as follows -
Managers are the one who has the responsibilities for the fulfilment of the legal
requirements in order to prevent the organisation from any legal actions.
Managers have the responsibilities to create the link between the top management teams
and employees. Managers are responsible for the allocation of funds, charge the employees and distribute
the organisational resources to the various departments of the Tesco company.
LEADERS AND THEIR ROLES
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Illustration 3: Store Level
(Source: TESCO COMPANY ORGANIZATIONAL STRUCTURE CHART
EXAMPLE, 2016)
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Leader is a key employee who is accountable for encouraging and influencing the
behvaiour of employees in the way so that they can achieve their organisational goals (Baxley,
and et. al., 2016).
Role of leaders in Tesco are as follows -
Leaders are the one who create vision for the company and tell organisation about how to
achieve that vision.
Leaders are the one who help managers, supervisors and employees in executing and
implementing various kinds of strategies. Leaders are the one who motivate Tesco's employees, improves their capabilities and
performance and help them to gain heights in their career.
DIFFERENT BETWEEN MANAGEMENT AND LEADERSHIP
BASIS MANAGEMENT LEADERSHIP
Meaning It is the process of managing
organizational activities,
resources and people with a
particular procedure in order to
co-ordinate between activities,
resources and people and
achievement of organizational
goals.
Leadership is a particular skills
through which leaders of the
company are able to influence
the employees for the
achievement of organizational
goals.
Purpose Management is done to control
the activities and people of
enterprise.
Leadership is done to influence
the activities and people of
enterprise.
Focus Their focus is only on the
stability of the organizational
culture, model and process.
Their focus is only on the
bringing change in the
organizational culture, model
and process.
Creation Management focus on the
creation of policies and
procedures of the activities
Leadership focus on the
creation of vision for the
achievement of organizational
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according to the mission,
vision, organizational goals
and objectives.
goals and objectives.
(Rosemann and vom Brocke, 2015)
3. Different roles of the management and leadership in the context of different organisational
situations
SITUATION 1
In Tesco, there is conflict between 2 departmental employees regarding not able to
achieve the departmental target due to no corporation between both department.
ROLE OF MANAGEMENT
In this situation, manager with the support of Human relation theory, will try to reduce
the conflict between employees of 2 department in Tesco. For that manager will take interviews
of both departmental employees to get to know the whole scenario and after that he will
implement the new policies regarding that 2 departments and observe the change in the
behaviour of employees.
ROLE OF LEADERSHIP
In this situation, leader will apply trait theory and accordingly judge the employees
according to their personalities and traits. After knowing personalities and traits, he will analysis
the strengths and weaknesses of the employees and accordingly try to motivate them to resolve
the conflict (Rosemann and vom Brocke, 2015).
SITUATION 2
Tesco is all set to bring new technology in the organisation and employees are refusing to
accept this change.
ROLE OF MANAGEMENT
In this situation, manager will adopt participative theory. According to this theory, he will
get to know about the reason behind the refusion of employees. Then he will conduct meetings
and talk to them, take their point of views and accordingly motivate them. He will also provide
them training too.
ROLE OF LEADERSHIP
In this situation, leader will create a vision in order to guide and motivate the employees
in for accepting the change. He will also explain the importance of bringing change in
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organisation by providing real example so that employees can get inspire and try to accept the
change. Leader will do this with the support of Transformational leadership theory.
SITUATION 3
Employees of Tesco are facing issues regarding their working environment and due to
this, employee turnover ratio is increasing.
ROLE OF MANAGEMENT
In this situation, managers of Tesco will analysis the environment of Tesco and try to find
out the reasons behind the dislike of employees towards their working environment. They can
conduct various events and activities so that employees can get to communicate with others and
their working environment can improve.
ROLE OF LEADERSHIP
In this situation, leaders of Tesco can motivate the employees to bring new ideas and
communicate with each other. Leaders also can use team shifting so that employees can get to
know about others employees. This will improve the working environment and reduce the
employees turnover ratio.
4. Evaluation of the different approaches to leadership and management in the context of
leadership theory
MANAGEMENT AND LEADERSHIP APPROACHES IN THE CONTEXT OF
LEADERSHIP THEORY
There are various leadership approaches through which leaders of Tesco Company
conduct their responsibilities in the different way according to the situations that arise in the
business. Various leadership theories and approaches are as follows :
Situational Leadership approach: This approach allows the leaders to take the decisions
regarding the team members and organization according to the situation which is occurring in the
organization. According to this theory, leader motivates their team members after analyzing and
evaluating the situations and the impact of situations on the employees and their capabilities.
Advantage of This leadership style is to help the leader and employees in taking the
accurate decisions according to situations. Disadvantage of this theory is wrong analysis of the
situation will lead employees and leader to take wrong decisions which impact the organizational
activities and goals.
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For Example – Company is bringing new technologies. It will scare the employees because they
don't know how to work through it. In that case, leader of the organisation will use Situational
Leadership approach and give them training regarding technologies and motivate them to work
through it,
System Leadership Approach
This leadership theory focus on combining of system which form by the people, activities
and process with the help of principles and policies make by the company's management team.
This approach allows the employees to create coordination between their work with other
employees and staffs for the purpose of deliver the effective and efficient work (Simpson and et.
al., 2015).
Advantage of this approach is that it allows the employees within the organization to
coordinate their work in order to achieve the main objectives of the firm, which improve the
efficiency and productivity of the organization. Disadvantage of this theory is that this approach
is not implemented successfully within the business then it may create the conflicts and
confusions among the employees.
For example – Company is facing conflict situation between employees. In that case, Leader will
use system leadership approach and try to focus on the team building strategies in order to create
co-ordination and communication between employees.
Contingency leadership approach: This leadership approach shows that the leader's
effectiveness is depending upon the adoption of leadership style according to the situations of the
firm.
Advantage of this theory is that It helps in widening the understanding of the leaders and
managers in different situations of the company which make them experts in their own field.
Disadvantage of this approach is that in case the leaders take wrong decisions during complex
situations then it creates a lot of problems for the organization regarding workforce and their
activities (Sterman and et. al., 2015).
For example – Company is facing employee turnover issues. In that case leader will adopt
Contingency leadership approach. In order to motivate the employees to stay in the organisation,
he will analysis the motivation drivers for the employees and accordingly adopt leadership style
in order to motivate them.
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5. Conclusion and recommendations for the future improvements taken by Tesco's managers and
leaders
It has been concluded that leadership and management theories helps managers and
leaders to perform their tasks in systematic way so that they can be able to achieve the
organizational goals.
For the future improvements, the recommendations for the Tesco's managers and leaders
are as follows -
Managers and leaders of Tesco can focus on the scientific procedures of human resource
management such as scientific approach to recruitment and selection so that they can get
the best candidates out of pools of candidates.
Tesco's manager and leaders can work together so that they can achieve their
organizational goals as well as they can motivate, guide and direct the employees in the
right way for the future of the organization.
TASK 2
1. Introduction to the key operations of the Tesco
There are various key operations in the Tesco company. These key operations are as
follows -
Just In Time (JIT) Approach
It is a kind of operation tool use by Tesco Company for the purpose of reducing time
within the production model of the company. In this approach, Company directly order the raw
materials from their suppliers to the production house for the purpose of reducing the production
time. It helps company to reduce their production as well as inventory costs too.
Kaizen
Kaizen can be define as the activity which is carried by the company to improve all the
business activities. It involves every staffs, employees, managers, leaders, supervisors and even
chief executive officer in the process. This approach helps company to increase their efficiencies
and productivity due to continuous improvement process (Spring and et.al., 2017).
Total Quality Management (TQM)
Total quality management (TQM) refers to the repetitive procedure for detecting and
eliminating errors or mistakes in production, supply chain system and streamlining in the
organisation. It involves feedback and experiences of customers in order to improvement in
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required areas. It also includes the continual training of the employees to make them updated
about changes and trends. It will help in increasing the productivity of the employees which lead
to increase in the quality of the products and services offered by the organisation.
2. Roles and responsibilities of managers in the key operational functions
Role and responsibilities of managers of Tesco in Just In Time (JIT) Approach
Manager of the Tesco company have following roles and responsibilities in Just-In-Time
approach which are as follows -
Manager uses Kanban which is considered to be a part of JIT. It will help manager to
track their supplies system. Thus, manager should check the system time to time and spend
money on their maintenance in order to make sure that they won't lost their tracking system.
Along with that Manager should provide proper training to their employees regarding the
system they use for the application of JIT on the organisation.
Role and responsibilities of managers of Tesco in Kaizen
Manager of the Tesco company have following roles and responsibilities in Kaizen
approach which are as follows -
Manager has the role of looking upon the 5S principles of the Kaizen and give guidelines
to the employees about how to implement the approach in the production of the organisation. If
there is something goes wrong, then it is the role of manager to look upon, measure the
problems, discuss it with another managers and try to solve them.
Role and responsibilities of managers of Tesco in Total Quality Management (TQM)
Manager of the Tesco company have following roles and responsibilities in TQM
approach which are as follows -
Here in this approach, the role of manager is to do planning and research on the quality
standards and how to achieve them without compromising the production. Another role and
responsibility of manager is to assist the employees in the implementation of TQM in the
organisation.
3.Different approaches that is being used in management operation
Operation management can be defined as dealing with the operations and processes of the
company. It is linked with the various processes that is used in company while manufacturing a
product it has to gone through different processes then it will come as final product. Techniques
that is used are :
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