Tesco Management and Leadership: Roles, Theories and Models Report

This report provides a comprehensive analysis of leadership and management within Tesco, a leading retail company. It begins by defining and comparing the roles and characteristics of leaders and managers, highlighting their distinct responsibilities and qualities. The report then illustrates how these roles are applied in practical scenarios within Tesco, using examples to demonstrate the application of leadership and management functions. Furthermore, it delves into various leadership approaches and models, including situational, system, and contingency leadership, explaining how these models can be utilized to guide decision-making and improve organizational effectiveness. The report also examines key approaches to operation management and the crucial roles of managers and leaders in this area, emphasizing the importance of operation management in achieving business objectives. Finally, it explores the factors within the business environment that influence operational management, providing a holistic view of leadership and management within the context of Tesco's operations.

MANAGEMENT &
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Define and compare various roles and characteristics of leaders and manager.....................1
LO 2.................................................................................................................................................3
P 2 Examples of how the role of a leader and the function of a manager are applied................3
P 3 Various approaches and models like situational, system and contingency leadership........4
LO 3.................................................................................................................................................6
P 4 Key approaches to operation management and role of managers and leaders......................6
P 5 Importance of Operation Management in attaining business objectives..............................8
LO 4...............................................................................................................................................10
P 6 Factors within business environment that influence operational management..................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management and operations are important business practices that generate the highest
level of skilfulness within organisation. These departments are mainly concentrated on
converting labour and material into services and goods so that profits can be maximized. It has
some major responsibilities like project management methods, implementing structure of
information technology networks and determining size of manufacturing plants.
Major things involved are minimal waste, use of raw materials at highest levels and
various other operational issues (Thompson and Glasø, 2015). Management organizes resources,
maintains staffing and plans actions. In this report, responsibilities and traits of leader and
manager of Tesco will be described. Importance and value of operations management will be
illustrated and various theories and models will also be described that could be use by the
management of Tesco for decision-making.
LO 1
P1 Define and compare various roles and characteristics of leaders and manager.
Introduction of TESCO: It is one of the leading retail company and branded company
in UK who offer best variety of products to their customer at cheap rates. It establish its unit in
more than 20 countries and having a brand image in market. The quoted company is consider the
third largest retail company in world as per their total revenue generated. It has around 6500
shops in all over the world.
Leader of Tesco is man who has his own vision and influences others to achieve
specified goals. In order to achieve goals, he makes strategies and posses good qualities like
creating valuable team, innovation, motivating subordinates along with foresightedness.
On the other hand, manager of Tesco is responsible for the entire management.
Employees are under their control and all work is managed by manager. They are responsible for
mission and vision of an organisation.
Manager Leader
1. Manager is a person who takes
responsibility of complete organisation and has
authority to fire and hire employees (Dentchev,
1. A leader is a person who encourages the
entire team to work together and provide
support to accomplish activities and tasks on
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van Balen and Haezendonck, 2015). time.
2. Management functions include planning,
organising, commanding, coordinating and
controlling of Tesco.
2. On the other hand, leadership traits and
functions include setting goals and policies,
organizing and shaping of an organization so
that it can operate towards achieving its goals,
initiating actions and creating link between
management and subordinates of Tesco.
3. Management theories are Scientific,
Bureaucratic, Human Relations and System
theories. Scientific theory uses measurements
and data to make firm more effective.
Bureaucratic management forces on
management and employees based on
hierarchical level (Higgs and Dulewicz, 2016).
Human relations aim at accelerating
management so that potentiality of the workers
can be brought out. System theory identifies
entire objectives of Tesco.
3. Leadership theories are behavioural,
contingency, transformational and situational
leadership. In behavioural theory, leaders try to
motivate their employees and carry out
activities effectively. Contingency theory
focuses on organizational culture, policies,
fulfilling peers’ expectations, and their
behaviour. Situational theory aims at quality of
decisions taken by leaders and determining
availability of information.
4. Management skills involve hard and soft
skills. Hard skills involve typing speed,
machine operation, computer programming.
These can be listed on resume of employee.
Soft skills involve communication skills,
flexibility in working, leadership traits,
motivation, persuasion, proper teamwork, work
ethics and time management. Employees
should focus on both soft and hard skills while
applying for job.
4. Leadership skill involves active listening
from workers side, concision, correspondence,
having clarity, articulating, explaining,
expression, non-verbal communication,
presentation of projects effectively, minimizing
ambiguity, mentoring of employees,
convincing properly, understanding
employees’ differences and then finally
providing challenging and productive work
(Mone and London, 2018).
5. There are various types of management
styles like autocratic, consultative, persuasive,
5. On the other hand, leadership styles are
autocratic, democratic, strategic,
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democratic, and laissez-faire. transformational, cross-cultural, transactional,
charismatic, visionary and coaching leadership.
6. Manager tries to organize people in firm and
finds out solution of any problem
5. Leader aligns people according to their
qualities and roles assigned to them.
7. Manager aims at the processes and
procedure running and looks at its loopholes.
6.Leader focuses on employees' work and its
efficiency.
8. Manager aims at fulfilment of objectives and
accomplishment of end results. He is more
result oriented and takes care of activities and
tasks carefully and tries to avoid conflicts and
makes proper decisions on time.
8. While, a leader focuses on development and
growth of his employees and tries to promote
change rather than reacting on it. He uses
various leadership styles like transformational
and sets direction for his employees.
LO 2
P 2 Examples of how the role of a leader and the function of a manager are applied
Role of a Leader
There are some situations that arise in the firm as new employees’ appointment that
cannot adapt to changes so quickly and promptly. They need some time to get familiar with all
types of policies and environment of the firm. Employees appointed in Tesco needs to be
explained about products, planning and activities of organisation (Lakhiani and et.al., 2017).
They need to get adjust with existing employees and understand all financial performance,
price-fixing, sales and profitability of the firm. They have to go through change management.
In this situation, leaders should be familiar with new employees and try to build
relationship with them. They should convey messages between higher authority and newly
appointed employees so that no confusion is created in the future. Therefore, situational theory
can be applied here by leaders. Workers must be adapted to the situation of Tesco and it is the
responsibility of leaders to run operations smoothly so that result can be achieved within time
limit.
Change happens in every organisation but some employees cannot adopt it completely
and leave the firm (Evans and Lindsay, 2014). This affects functioning of it and various projects
remain uncompleted. Therefore, leaders must be strong and manage the work properly with
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employees so that they get familiar with their work. Their should be transparency and positivity
in their role.
Functions of a Manager
Another example can be taken as improvement in practices of project management that
can be attained by Chaos Theory. Managers should learn to execute planning and identify up-
front and every set of practice team in more creative and productive way. Thus, fluctuations in
stock market arise is an example of chaos theory (Conger, 2015). As the value of stock decrease
or incease people automatically sell of buy the stock. This influences the prices of it, which leads
to its increment and decrement chaotically. Managers should organise shares of Tesco properly
at this time because system often become chaotic as feedback of share market is unpredictable,
which effects organisation financially.
For example:
 if two employees of the company have conflict and at that time, leaders as well as
manager solve their problem by listening each other. Managers also provide the best
solution in order to resolve the conflicts.
 If the leaders of TESCO develop the strategy in order to expand their current business
and on the other side, managers of the company assign duties to various department so
that it will help to introduce the system into market.
P 3 Various approaches and models like situational, system and contingency leadership
Various approaches include relationship -oriented leadership, Management by Objective (MOB)
and Chaos theory. Leadership theory includes situational, system and contingency models.
Relationship-oriented approach: This approach meets the expectation of every employee
involved in the assignment and understands the significance of processes and activities in Tesco.
Various incentives are offered to workers like giving mediation to them on workplace and
offering bonuses (Drohomeretski, E. and et.al., 2014). Productivity is primary thing that has to be
focussed and positive environment has to be build up. Dissatisfaction with job, personal conflicts
are some problems that has to be stayed at minimum level.
Management by Objective (MOB): Management by Objective is a management that is
managed by personnels in an organisation where employees and managers work as a team and
monitor and record objectives for specific time period. Major concept of MOB is planning in
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which members react to problems and events and measure them accordingly. This approach
provides a source to recognize and then plan to attain for achievement of goals. It is some kind of
disciplined and proactive behaviour. Objectives should be measurable so that they can be
adjusted and assessed easily.
Chaos theory: Chaos theory is mainly applied when the firm sees random changes from normal
equations and because of the complexity of the system fluctuations arises. Organisations are
broken down into small parts and models of organizational practices and policies are build to
yield better information (Swain, Cao and Gardner, 2018). But chaos theory changes decision
making processes in business. For example, at the time of weather conditions, rise and fall of
stock market chaos theory can be applied. It can be referred as dynamical instability and also
randomness and lack of order.
Various Leadership Models are as follows:
Situational Model : This model focuses on four core areas : diagnosing every employee's
performance, adapting leaders behaviour based on analysation, communication with followers in
such a manner so that they can understand and accept terms and condition and finally creating
advancement by managing situation towards higher performance (Antony, 2015). It is a
framework that is maintained by genuine relationship between leaders and manager of Tesco. It
analyses and performs functions, specific tasks and objective. Then, based on the diagnosis,
communication of tasks is done to followers to support their advance developments and needs.
For example: TESCO will play this theory in order diagnosing every employee's
performance, adapting leaders behaviour based on analysation, communication with followers.
Therefore, to sort out the problem and at that time leader of the company adopt different
leadership style in order to sort out the problem which is based upon the situation.
System Model: It is a systematic approach towards leadership and it is determined according to
leader's work and dedication to accomplish tasks with its team members. But here leader's
determination is categorised according to the relationship he maintains with and among external
environment (Suárez Barraza and et.al, 2018). Without followers he is unable to exercise
leadership and cannot ensure conviction on his/her basis which he/she should provide to the
organisation. Several elements work together so that objectives could be achieved within time
frame. Complexity is justified and a proper framework is offered to build up ideas upon which
work can be initiated.
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Leaders of TESCO apply system theory in order to accomplish tasks with its team
members. Such that this theory is basically used by the leader in order to complete all task in
proper time. As the company's leader also the theory in order to complete the work in such a way
that it help them to uses different ideas.
Contingency Model: Contingency model is one of the best style of leadership. According to this
model Leader should identify his role so that management can assist him/her to attain
organisation's goals in a particular condition. Main element of this theory is least preferred co-
workers (LPC) scale which helps in measuring leadership and manager's orientation. Another
variable considered is acceptance of employees by leader and description level of the employees'
job and finally the authority that which the leader possess for his/her position in the firm
(Carnerud, Jaca and Bäckström, 2018). In this model, employees are influenced by leader and
management maintains tasks in detailed manner. This theory says that various internal and
external factors influence organizational structure that includes leadership style, technological
use, changes in strategy etc. it is applied in various steps which starts with identification of
leadership style, situation, then finally deciding most effective leadership style.
TESCO uses contingency model in order to state that there is no style is best because it
will help them to identify their role so that management can assist him/her to attain organisation's
goals in a particular condition. By using this model, employees get affected by leader. This
theory says that various internal and external factors influence organizational structure that
includes leadership style etc.
LO 3
P 4 Key approaches to operation management and role of managers and leaders.
Key approaches of Six sigma, Lean Production and Queuing theory. Use of different
management approaches are done through Principles of Total Quality Management, Just-in time
Inventory and Continuous improvement (Kaizen).
Six Sigma: TESCO uses this approach to measures quality and is data-driven and disciplined
approach that terminates defects from manufacturing level to transactional level. It is an
improvement system for existing processes and follows two methodologies: DMAIC and
DMADV. By applying this, company can lowers costs, improves customer's experience and is
finally labelled as quality program. The manager and leader of TESCO uses this approach in
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order to continue the improvement if their product and services by eliminating the defects of
their product during manufacturing process.
Lean Production: TESCO uses this approach in eliminating waste and is implemented in all
aspects from designing to distribution. Wastage in organisation can be considered as defects,
overproduction, waiting, transportation, excess processing and inventory excess (Caillier, 2014).
It can be considered as systematic manufacturing and reduces waste so that value is increased
and costs is reduced. It also concentrates on the processes and activities that add value in various
other aspects and when all the wastes are minimized then system becomes optimum and lean.
Through this, TESCO entire wastage can be minimized. TESCO manager and leader uses this
application in order to reduce the cost of waste at the time of manufacturing process.
Queuing Theory: Queuing theory deals with the problems that includes waiting and involves
random processes. It is full of arriving, waiting, in-service and departing customers. Customers
have to wait for sometime to avail the service.
Total Quality Management (TQM): Total quality management is a process that is customer-
focussed and includes all employees for continuous improvement. Data, strategy and effective
communication are mainly used to integrate quality into activities and culture of the firm. It
follows some principles like total employee involvement, customer-focussed, process centred,
systematic and strategic approach, continual approach and fact based decision making. TESCO
uses Total quality management in order to continuous improvement in their product quality.
Just-in time Inventory: It is a strategy and is also known as lean manufacturing which is used
to increase efficiency (Dubey, Gunasekaran and Ali, 2015). This procedure is only used to
receive and order inventories for production and customer sales and help companies to lower
down inventory carrying costs and decrease waste. It is very much accurate in prediction of
demands of products.
Continuous improvement (Kaizen): Kaizen referrs to continuous improvement in all activities
and functions of organisation. It is also applied to different types of procedures such as supply-
chain department, purchasing and logistics. It eliminates waste and improvise standarize
programmes and processes. It also modifies s the workplace and teaches others how to perform
experiments to make their work more better. Like this, it increases productivity and nurture
employees' of Tesco.
Role of Manager Of Tesco
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1. Manager of Tesco must accomplish all managerial functions and should act as the head of
team in the firm (Kerzner and Kerzner, 2017). These functions include planning, organizing,
commanding, coordinating and controlling of departments.
2. Manager must oversee and administer all operational areas that he/she is responsible for.
He/she must be capable of managing tasks with situations because day-to-day requirements may
vary so he/she should be able to alter present activities.
3. He/she should be able to delegate workload of every department and monitor progress
effectively (Wheelen and et.al., 2017). He should be aware of potential of each and every staff
and must know what exactly they are capable of performing.
4. Manager should be professional with his/her work every time and must share his/her opinions
with employees.
Role of Leader of Tesco
1. Leaders clearly monitor participation of members and train them regularly to get valuable
feedbacks.
2. Leaders go through the work assigned to the and innovate various ideas. They inspire their
staff and keep motivating them so that tasks can be accomplished and goals can be achieved
within time limit.
3. Leaders communicate vision and organizes all employees' efforts so that long term plans can
be achieved and daily activities could be related to it (Hitt, Xu, and Carnes, 2016).
4. They manager business operations and create reports so that company's progress remain
updated.
P 5 Importance of Operation Management in attaining business objectives
Operation Management is system that includes planning, organizing, managing,
controlling and supervising the manufacturing and production processes. It helps in converting
raw material into goods and services and provides surety of delivery of products successfully. It
manages regular activities of departments seamlessly and better use of resources like money,
raw material, labour could be taken. For overall productivity it is a very essential aspect.
Efficiency of manager and employees are properly measured and discipline is focussed in the
best possible manner through existing resources (Wiengarten and et.al., 2015). Products are
properly aligned according to customer's needs and demands and if they are catered to
customers according to their needs then they are sold at fast rate. This increases profitability and
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so business is also increased. Thus, Tesco maintains its position in the market. Enormous profit
is achieved through optimal utilization of resources. It handles operations, design and
maintenance of the system which is used for the production of goods and services. Various
functions of Operation management are
Control and Distribution System: This system is usually distributed in entire organisation with
centralised controllers and is located at central control room. It minimized installation costs by
localising control function and increased reliability with remote supervision and monitoring. It
operates all machines are connected by fast-speed communication network (Smith, Maull, and
CL Ng, 2014). It increases organization's safety and is cost-effective in nature.
Transformation of raw material into finished goods: This is the main function of operation
management. Entire system focuses on converting input into valuable ouput out so that return on
investment can be achieved. It includes various types of costs, expenses, input of goods and
finally goods and services are produced which should meet the requirements of customers then
only sales could be increased. It needs right material, right components, right workers at right
and right information at right information at right time.
Process design: It is the activity which determines the equipment needs, workflow and
application of particular process (Lawton and Rayner, 2016). Numerous tools are included for
designing like process simulation software, scale models, flowcharting etc. Process is designed
to know the objectives and entire shape and nature of the process and finally details have to be
examined to fulfilled effectively.
Capacity management: Capacity management is a process in which there is availability of
resources to meet the needs of customers. Capacity management is required to improve
performance in organisation. It avoids overspending and there are various firms which don't
trust their ability to do capacity management which results in over placement of employees. It
should be done so that there is continuous growth in business, optimization of cost is there,
business activities goes at peak level and agility in performance is maintained. There are three
types of it namely service capacity management, business capacity management and component
capacity management.
Logistics and inventory management: Logistics and Inventory management is a critical
function executed in Tesco. It involves facilities, people working in the department and supplies
(Valavanis and Vachtsevanos, 2015). Logistics can be described as coordination of physical,
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information and financial flows to and from consumers and trading partners. Inventory
management is apparently a part of logistics and considers various variables like cost, location,
transport, risk and service levels. This can be solved through supply chain partnering and
business process improvements.
HR department: This department of the company is actually select best candidate for
the company and by hiring them into the working are will be effective and beneficial for them.
HR also develop new strategy and apply them into the working area so that it will help to
expand the sale of a company.
Finance department: This department of a company will actually assign duties to
different department and also monitor the exact cash flow during the particular period.
Production department: This department produces the products which are needed by
the customers and satisfy their needs.
Marketing department: This department sales out the products into a market and then
let people know about all new offers which TESCO introduces in a market.
LO 4
P 6 Factors within business environment that influence operational management
Factors that contribute in influencing operational management are as follows:
Corporate Social Responsibility (CSR) : CSR is self regulating business model which
promote organisation socially to itself along with its stakeholders and public. There is
relationship of management with corporate social responsibility. It is a probable strategy that
strengthen up relationship between employees and organizations. CSR activities and dimensions
of Tesco involves building employee relationship includes commitment, trust, controlling
mutuality and satisfaction (Connell, Page and Meyer, 2015). CSR focuses professional
backgrounds and personal aspects. Many firms have adopted CSR programmes to grow and
develop and maintain its sustainability. It also helps in community welfare from organization's
point of view. It has set moral behaviour while competing, for its peers and industries.
Professional, corporate, national, religious are some cultural aspects that influence when
functioning of the organisation. Its is related following sub factors:
Culture: Regardless of size of organisation building of CSR culture aims at contributing welfare
of society and environment widely. It is litigious and evolving paradigm. CSR activities
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fluctuate in various department of organisation and from higher to lower level all authorities are
engaged in its initiatives. Integrating organisation culture into CSR widely affect employees'
values, attitudes and values (Harrison and Lock, 2017). This intangible practices results into
development of its tactics, strategies and operations. It is addition to company's activity for the
benefit of workers.
Value: CSR leads to value creation of organisation by employing qualified employees and its
retention, maintaining brand reputation and social conscience consumer purchasing behaviour.
It helps in creating awareness for responsible products and provide leverage to manage
stakeholders so that firm's competitive edge and value can be created in the market.
Ethics: Ethical investment and performance is another factor needed by Tesco to behave socially
with other partners and stakeholders (Chang, 2016). Certain standards of behaviour are observed
when the company is involved in capital market. Some investors just have goal to increase cost
of capital and meet long run success while others argue and represents proponents of ethical
investing through sensible investment strategy (Higgs and Dulewicz, 2016). Therefore, Tesco
follows ethics in market to become socially responsible because mostly businessman behave as
good citizens and obey marketing and production practices in such a manner that avoids
environmental pollution and activities that harm nature and are against community. They have
the fear of media, environmentalist and consumer pressure so now they have become more
responsible because they know they could pay in long run.
Sustainability: Business sustainability is another important factor that influence operational
management. In order to adhere with the concept of sustainable development it should meet the
requirements of current situation without compromising the demands of future generation
(Monczka and et.al., 2015). High authority should have relevance of sustainability to risk and
strategy. CSR is a process that includes opportunities, considerations and new issues.
2. Relationship with stakeholders: Relationship with stakeholders yield business success
and long term profit. These include suppliers, customers, communities, government
agencies and partners. Relationship with customers, communities help business to build
long term customer loyalty. This also involves follow through all service and product
commitments and honesty in promotions. Maintaining strong relationship with employees
directly influence operational management and company culture (Thompson and Glasø,
2015). It is important to appreciate employees' performance and recognize them.
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Nowadys, organisations are showing value to their employees' as people through reward
system and non-monetary ways. Development and sustainability of Entrepreneurs are
important because it generates new business, brings social change and helps in
community development. On the other hand, intrapreneurship development is necessary
because they increase productivity of business, they are considered as innovators, they
are passionate and take risks easily, they valuable employees and take businesses to
another level.
PESTLE of operational management:
Political: This factor affect the system of the operational management into adverse way
such that new policies of the government affect the system into negative way and if not coping
with these then it affect the overall performance of the company.
Economical: If the economy of the country is decline then it also affect the profitability
of the company and as a result, it also affect the company financial position.
Social: People changes their perspective and it is quite necessary for the firm to cope up
with the factor and thus this social changes affect.
Technological: New innovative technique are directly affect the company's overall
performance and therefore, it is necessary for the firm to adopt this.
Legal: new and legal law directly affect the company's overall performance and hence it
is necessary for apply all the laws.
Environmental: the system adversely affect the company's position so it is necessary to
make strategy in order to overcome the problem.
Recommendations:
 In order to maximizes the sales of a company, there is a need to use online system so that
it will help to generate more profit.
 By hiring the best candidate for the company will be helpful for them to to achieve the
best outcome for their future growth.
 TESCO needs to improve the operational management so that their production level will
be enhanced.
 Using TQM and Six sigma will also help a company to raise the sales and future growth
of a company.
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CONCLUSION
Thus, it is concluded that Tesco operates it Management and Operation department in
well organised manner and understand the importance of manager and leader effectively. It
follows various approaches including Six Sigma, Lean Production Theory and other models like
Contingency and Situational Leadership style to maintains its growth and development. It also
considers its internal factor that influence operation management in which corporate social
responsibility related to values, ethics, sustainability is major part and effectively maintains
relationship with stakeholders.
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