Management and Operations: A Study of Leadership at Tesco PLC

This report provides a comprehensive analysis of leadership, management, and operations within Tesco PLC, a leading multinational retail company. It defines key concepts like leadership, management, and operations, emphasizing their importance in achieving organizational goals. The report delves into the five management functions: planning, organizing, staffing, directing, and controlling, highlighting their significance in Tesco's operational success. It further explores management theories such as behavioral and contingency theories, alongside the essential skills for effective managers, including communication, team building, problem-solving, and policy-making skills. Various leadership theories, including trait, behavioral, and contingency theories, are examined, and their application within Tesco is discussed. The report contrasts leadership and management, focusing on their distinct functions and focuses. Finally, it considers operational functions, leadership and management in the context of the business environment, and relationships with various stakeholders, concluding with a summary of the key findings and insights into Tesco's management strategies.

Management And Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of the chosen company................................................................................................1
LO1..................................................................................................................................................1
1. Define the concept and importance of operations in business.................................................1
2. Management functions.............................................................................................................2
3 Management theories and required skills for effective manager..............................................3
4. Leadership theory and skills....................................................................................................4
5 Leadership v/s management......................................................................................................5
LO2..................................................................................................................................................6
6 Difference between leader and manager...................................................................................6
LO3..................................................................................................................................................7
7 Theory of operations management............................................................................................7
8 Operations management approach............................................................................................8
LO4................................................................................................................................................10
9 Operational functions of managers.........................................................................................10
10 Leadership and management dimensions of business environment ....................................11
11 Relationship between leadership and management .............................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Overview of the chosen company
Tesco PLC is a multinational company who is leading in retailing industry. Its
headquarters is in England, United Kingdom (UK). It is kind of private limited enterprise. It is
considered to be third largest organization in the world. This company was founded by Jack
Cohen in year 1919. It has 6500+ stores at worldwide. This firm is serving its products and
services at the global level. It has give employment to around 4,60,000 employees. Currently its
key people are John Allan who is Non-Executive Chairman and Dave Lewis who is Group CEO
of enterprise (Tesco PLC (TSCO.L), 2018).
Present report will highlight the meaning of manager, leader & operations and
importance of operations in the organizational context. It will tell about the management
functions and management theories being used by organisation. It will also demonstrate about
the skills of effective managers. It will show the leadership theory and its skills as well. It will
describe the differences between leadership and management as well as differences between
managers and leaders. It will tell about the various theories of operations management and its
approaches. It will describe the functions of operational functions. At last, it will highlight
leadership and management in the context of business environmental dimensions and
relationship with various stakeholders.
LO1
1. Define the concept and importance of operations in business
Concepts
Leader
Leader is a person of organization who try to influence and motivate the organizational
employees and team members in order to achieve their personal as well as organizational goals.
Leader is the one who create vision for the organization and direct the employees to achieve the
goals through following vision.
Manager
Manager is a person of organization who handle and create the co-ordination between
employees, activities and procedures with goals and objectives in order to achieve the
organizational goals. Manager is the one who create policy, strategy and goals for the
organisation.
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Operations
Operations refers to the combinations of all the activities through which company is able
to transform their resources, data, information and materials into consumable goods and services.
This help organisation to create some values which is beneficial for all the stakeholders of the
company. Tesco has various operations such as Marketing, Finance, Human resources, Logistics,
Administration and Inventory management etc. (Akalin, Huang and Willems, 2016).
Importance of Operations in Tesco Organisation
With the help of various kinds of operations, Tesco is able to sale its products and
services which lead company to earn profitability and bear various kinds of costs. It helps Tesco
to manage its human resources requirements and fulfil their needs and wants which is beneficial
for the employees' personal development. It helps Tesco to build their brand image and employer
brand image. It also helps organisation to understand its hierarchical structure which lead to
completion of tasks on time and achievement of organisational goals.
2. Management functions
Management plays a vital role in the organization. It is an essential part of the company
that performs different activities to achieve desired objectives of Tesco. There are five functions
of management such as:
Planning:- It is the process of deciding in advance what to do, How to do and when to
do. It helps in deciding future goal of the business. It is a systematic thinking that an individual
plans for his starting to its future end goal. It is pervasive in nature. In Tesco planning is done in
advance to achieve the organizational goal. It helps in avoiding risk, uncertainties for future
course of action.
Organizing:- It refers to the process that helps in bringing physical, financial, human
resource and developing relationship between employees for achieving organizational goal of
Tesco. It includes various process such as identifying activities and then classify them into group
of activities and then assigning duties. Further authority is delegate and responsibility is being
created finally coordination occurred between relationship between its authority (Archer, 2017).
Staffing:- It is the process of hiring employees based on their qualification for Tesco at
both managerial and non- managerial levels. It includes process of selecting, training and
development, evaluating and maintaining employees in the company by providing incentives to
them.
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Directing:- It is the part of management activity that deals with organizational methods
for working achieving organizational purposes. Directing provides direction to do work
effectively and efficiently. It involves different elements such as supervision, motivation,
leadership and communication.
Controlling:- It is the process that helps in accomplishing the standards and goals that is
being achieved by Tesco. It checks whether the process is being carried out effectively and
efficiently and the proper use of resources is being taken into account. It involves following steps
such as to establishing standard of performance and then measure the performance on the basis
of actual performance, compare actual performance with the standards and lastly the correction is
being made for achieving Tesco objectives.
3 Management theories and required skills for effective manager
Management Theories used by Tesco
There are various management theories which is being used by Tesco's managers in order
to effectively achievement of organizational goals. These theories are as follows -
Behavioural Theory
This theory deals with the human relationships, movements and behaviours of the human
resource working in the Tesco. Manager (who understand and use this theory) focuses on the
motivation, conflict, expectations, team compromise and productivity. Here, manager views
employees as the asset of company, not as a machines and focus on their needs and wants of the
employees so that accordingly motivate the employees. Because manager believe that if
employees are motivated, this will help them to improve their productivity and work efficiencies
which make them satisfied and happy (Gillen, Jacquillat and Odoni, 2016). They will also
maintain good relationship with everyone and avoid conflicts. Overall, organizational as well as
employees' personal goals will be achieved.
Contingency Theory
Manager of Tesco who believe in Contingency theory understand that each organization
and its situations are unique and management approach and style which is being used by
manager should be suitable to the specific organizational situations. Managers of Contingency
theory believes that there is no particular and best way to manage the work, activities, procedures
and people who are related to the organization and take decisions regarding organization. To
understand the situations, managers will analysis the impact of internal and external factors of
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the organization and find the problems which lead company to face such situation. After that
manager will find the solutions to prevent the negative impact of particular situation on the
organization.
Skills of Effective Manager of Tesco
There are various skills which is required for the Tesco manager to become effective.
These skills are as follows -
Communication Skills
Communication skills are most important skills in managers because it helps managers to
understand their employees and communicate effectively with them. It leads employees to know
about what work they have to do. This will help organization to achieve its target.
Team Building Skills
One of the management function is to create co-ordination between human resources of
the company and procedures & activities of organization. This required team building skills in
managers so that he/she can bring everyone together and create co-ordination in the organization.
Problem Solving Skills
Tesco is a multinational company and also its organizational structure is complex which
lead company to face a lot of issues and problems. Thus, managers must have problem solving
skills in order to analysis the problems, comes up with the accurate solutions quickly and
implement the solutions to the problems (Mijumbi and et. al., 2016).
Policy Making Skills
Managers of the company should have policy and strategy making skills which can helps
him/her to create, implement and analysis the strategies in the context of organization in order to
achieve all the departmental and organizational objectives.
4. Leadership theory and skills
There are several theories of leadership such as trait theory, behavioural, Contingency
and transformational theory of leadership.
Trait Theory of leadership
This theory states people are having some trait or certain qualities that will be best suited
for leadership. It includes identifying personality and characteristics of person that is being
shared by leaders. This theory said that leaders are born not made. Researchers identify the
different traits that is being used in Tesco. These traits include extroversion and introversion, self
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- confidence, enthusiasm and aggressiveness. These traits are being used by leaders in Tesco to
achieve the organizational goals and objectives. As all the leaders is not having all traits of doing
work everyone differs from each other. This theory helps in providing detailed knowledge of
understanding different elements of leadership.
Behavioural Theory
According to this theory researcher said that if traits is enough to identify effective leader
later on it emphasize on behavior of employees in the company. This theory determines behavior
of the employee in Tesco. In this actual behavior of leaders is being identified so that it will help
in fulfilling goals and objective of Tesco. In this leader is using three skills such as technical,
human and conceptual skill that will enable in interacting with people in Tesco. Behavior of the
leader is depicting that whether it is good or bad. For achieving goals, motivating employees,
effective communication and building team spirit are considered to be successful leader. By
applying this theory Tesco can determine behavior of its leader in the organization
(Mohanadasan, 2018).
Contingency Theory
This theory states that there is no better way to organize a corporation, to lead a company
that will help in making decision for Tesco. It states that there is no best leadership style that will
be emphasize in Tesco. This theory consists of three factors such as leader member relation, task
structure and positional power. All these three factors combined together to form an effective
leadership style.
Therefore, all the above theory of leadership will help in coordinating and directing
activities of Tesco.
5 Leadership v/s management
Basis of Different Leadership Management
Meaning Leadership refers to the skill
which is used by Tesco
Company to motivate the
employees towards its goals
and objectives.
Management refers to the skill
and process which is being
used by Tesco Company to
manage employees, activities,
strategies and procedures of
organization in order to
achieve the goals and
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objectives.
Focus Leadership is focus on future. Management is focus on
present.
Functions According to the Transactional
leadership -
Leaders of Tesco set goals and
give direct to the employees to
achieve the goals.
Leaders focus on the
performance of employees and
give time to time feedback.
Leaders make sure that
employees follows existing
Tesco hierarchical structure
and maintain their work within
the structure (Morschett,
Schramm-Klein and Zentes,
2015).
According to the Transactional
management -
Managers of the Tesco make
policies and implement &
execute these policies with the
help of employees.
Managers focus on the
performance completion and
create co-ordination between
all the performance with the
another organizational
activities.
Managers make sure that roles
and responsibilities must be
fulfill by employees.
Skills Some leadership qualities are
creating vision, goal oriented,
lead by examples and ability to
take risk etc.
Some management qualities
are ability of direct, creating
policies, people focused and
strategic thinking skills etc.
LO2
6 Difference between leader and manager
A leader is a person who helps in guiding, coordinating, influencing people for achieving
goal of an organization. It possesses different skills and ability to perform its task effectively and
efficiently.
Manager is a person who manages the activities of the organization such as planning,
controlling, directing and staffing.
Leader Manager
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Leader influence people to work in the Tesco. Manager manages all the management
activities of business.
Leader uses the approach of setting direction
for future course of action.
In Tesco manager is setting plan in advance
regarding the activities in the organization.
It always thinks for future to achieve the goals
and objective.
They think according to the present situation in
Tesco.
Followers are the subordinate under the leader. Employees have to do work assign by the
manager (Reid and Sanders, 2015).
The aim of leader is to achieve growth and
development of Tesco.
Its aim is to wait for the desired result that is
come after taking proper action in Tesco.
Leaders mainly focuses people for achieving
goal.
This focuses on process and procedure that is
being followed by Tesco.
Leader helps in promoting changes in Tesco. If any changes takes place in Tesco managers
is reacted to that change in the company.
They align people in achieving objective of
Tesco.
Mangers helps in organizing people for future
course of action.
Similarities between leader and manager
The primary focus of both leader and manager is to utilization of resources in effective
manner. They also share a common goal for maximizing profit for Tesco. Both of them will
influence environment and work structure in the organization. Vision of leader and manager is
same for achieving future goal. They both involve with people and working together for
enhancing growth in the future. They are always ready to help their followers and employees in
case of any difficulty (Rudow and et. al., 2017).
LO3
7 Theory of operations management
Operations management theory refers to the strategies which is being used by managers
and organization in order to create high efficiency in the production through business practices.
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Tesco Company also uses various types of operational management theories which are as
follows -
Six Sigma
Six sigma is the quality management approach in which Tesco uses various statistical
tools and techniques in order to improve the efficiency and reduce the defectiveness. Tesco uses
six sigma by identifying business problem. After that, company will identify statistical problems,
do analysis of that problems by various statistical tools such as mean, deviations and variances
etc. and try to solve the problem.
Lean Production
Lean manufacturing is also known as lean production. Tesco uses this approach in order
to sustain its business in competitive environment. Here lean refers to the methods of minimizing
the waste within the production of goods and services without any compromise with their
productivity. For the application of lean production with business, Tesco has adopted Continuous
stock replenishment in which the focus is on availability issues which lead company to bear a lot
of costs and wastages of products (Rumble, 2019).
Queueing Theory
Queueing theory refers to the mathematical study. In this study, company focuses on the
delays of waiting in line. This approach helps Tesco to make decisions regarding efficient and
cost effective workflow systems, customer service, improve traffic flow, ship orders and design
of telecommunication systems within the organization.
Business Process Redesign
It is also known as Business process re-engineering. Tesco uses this approach as a
strategy in order to focus on the analysis and design of workflows and business process within
the organization. It is done by company to improve the efficiency of operations & customer
services, reduce the unnecessary costs and gain competitive advantages over its competitive.
Tesco use this by entire redesign the core business process according to the environment and
trend in the retail industry in order to achieve improvements in productivity and quality.
8 Operations management approach
Total quality management is the approach that is being used in an organization with the
aim of improving continuous quality of goods and services to meet the expectation of consumer.
Principles of Total Quality Management
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Providing quality work to customers:- In Tesco TQM aims in providing quality product to its
customers. In this continuous improvement will be taken to ensure that work can be done
effectively and efficiently. This principle helps in satisfying the needs and wants of customer.
Focusing on customer:- This aim in fulfilling the expectation of customers. It involves
designing, packaging of products and services that will satisfy the needs and wants of customer
of Tesco. Marketers use different strategy to identify expectation of customers (Schwarz, Hall
and Shibli, 2015).
Improving continuously:- This helps in improving the quality of product and services in
effective and efficient manner. It enhances in improving the quality of product on continuous
basis.
Employee involvement:- In Tesco employees are the internal customers of the company. There
involvement in the activities of business will help in enhancing growth and bringing more
opportunities in the company.
Communication:- It is formulated for the purpose of achieving vision, mission and objectives of
the company. If there is healthy communication in Tesco that will lead to increase improvement
in quality of product. Different communication channels will lead to provide the best product to
customers.
Principles of Just In Time
Just in time is an inventory management system that provides product and services before
time on immediate basis to the customers.
Elimination of waste:- This is an important principle of JIT that is being used in Tesco for
reducing waste by effective utilization of resources. As this will enhance in providing better
resources for company in future course of action. There are different types of waste that will be
identified by JIT such as waste of processing, waste due to defective products, through
overproduction, idle time etc.
Simplification:- This is another principle that emphasize on simplification of product by
utilizing minimum resources in production (Stambler and Barbera, 2015).
Cellular manufacturing system:- This will emphasize on dividing product that will be focused
on its manufacturing in simple form.
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Therefore, Tesco used the above principles of Just In Time and Total Quality
Management for the purpose of increasing efficiency and continuous improvement in supply
chain process of Tesco.
LO4
9 Operational functions of managers
There are various operational functions which is required to be done by managers of
Tesco Company for the achievement of organizational goals and create the co-ordination
between the activities of organization. These operational functions are as follows -
Procurement and purchasing
Procurement refers to the action of finding and negotiating with external sources for the
acquiring of goods and services for the organization. While, purchasing refers to the transaction
in which company has to pay some specific monetary value in exchange of fixed quantity of
goods and services.
Tesco operational manager has to look upon procurement and purchasing of raw
materials in order to achieve the target of production, availability of resources to all departments
and maintain the strong relationship with all the suppliers in order to retain them and do business
properly.
Logistics
Logistics refers to the flow of goods and services from the factories of the company to the
customers in order to fulfil the needs and wants of customers. In logistics management, company
will have to manage its goods such as raw materials, work - in - process goods and finished
goods. Supply chain management is also a part of this function (Sultan, Khan and Kanwal,
2017).
Tesco operational manager has to look at the supply chain and its logistic strategy in
order to make sure that company is able manage and reduce the gap between its demand and
supply of products and services. Manager also has to make sure about the accurate transportation
costs, storage costs and commissions of intermediaries through which goods and services are
being sold to the customers etc.
Resources and inventory management
Inventory and resources refers to the complete lists of items which is required to produce
goods and services of organization as well as operations of the organization too. There are
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basically 4 types of resources which is required by every organization. These 4 resources are
human, capital, money and information. There are some types of inventories such as raw
materials, work – in – process goods, finished goods, transit stock, buffer inventory, anticipation
inventory, decoupling inventory and cycle inventory etc. These all resources and inventories
must be properly managed by organization (Uhl and Gollenia, 2016).
Resources and inventory management of Tesco is the management of resources and
inventory in the form of ordering, storing and profiting from the unused resources and inventory
to the used resources and inventory at the right time, right amount and right level.
Scheduling and time planning
Scheduling refers to the process of deciding the schedule in the production process of
goods and services in order to optimizing and maintaining the work and workloads. Time
planning refers to the process of using time effectively and efficiently in the production process
in order to achieve the targets of units of goods and services at the daily basis and interval basis.
Operational manager of Tesco has to do scheduling and time planning in their production
process of goods and services in order to achieve the production targets with no issues regarding
the reach of goods and services at the stores / shops / malls on time.
10 Leadership and management dimensions of business environment
Different dimensions of business environment are as follows
Economic environment: - There are various factors that affect business environment from these
economic factors plays vital role in Tesco. It is further divided into three categories such as
economic system, economic policies and economic conditions.
Economic System
This provides an understanding in providing economic system in Tesco. It influences freedom
and openness into business. They are further more categories into three parts such as Socialistic,
Capitalistic and Mixed Economic system (Archer, 2017).
Socialistic:- Under this system business is controlled by government there is no role of
individual in governing business. In this approach an individual is not having right to participate
in the activities of business.
Capitalistic:- In this private ownership is given importance and it is also known as free market
economy.
Mixed:- In this business is governed by both individual and government.
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Therefore, Tesco is using socialistic approach as it runs under private sector.
Economic Policies
The economic policies will influence the functioning of Tesco. This includes export and
import, tax structure and public expenditure that will directly affect business operations (Rumble,
2019).
Economic conditions
These conditions are related to the economic development in country. Considering
economic conditions government is starting various programmes for welfare of people in the
country.
Political Environment
It includes various political factors such as taxes imposed by government their rules and
regulation in the country that will affect working of the business.
11 Relationship between leadership and management
Leader and manager are related to each other as stakeholders are the part of company that
will have right in managing various activities in Tesco. It will provide many opportunities to
business that will help in enhancing growth in Tesco. It builds relation with stakeholder. Leaders
are born not made that will emphasize in creating value for companies. It will help in introducing
various aspect of management in the country. Stakeholder is having right to take decision for the
company that will create growth and opportunities for business. Leaders helps in guiding people
for future course of action that will lead to influence its followers to coordinate with the business
activities of the company. Stakeholders are help in providing funding, managing operations as
well catering business needs for achieving goals of Tesco (Sultan, Khan and Kanwal, 2017).
CONCLUSION
From the above study it can be concluded that management functions plays an important
role in the company. These include planning, organizing, controlling and directing. Management
operations plays an important role in the business. There are various theories that will help in
managing business operations effectively and efficiently. Trait theory identifies different
personality and behaviour of the people in the company. This will also help in emphasizing
management theories in the business. Leadership theory will making business operations
smoothly and effectively. Leaders help in influencing, guiding, coordinating people for achieving
organizational goals in the company. Different management approaches that is being used in
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business are Total quality management, Just in time and their principles plays an important part
for running business. There is a relationship between leadership and management that will helps
in emphasizing growth of business. Operations are the key factor that will include in the business
as it will create better supply chain process in the company. Management and operations are
crucial pert without it business cannot be run properly and effectively. It can be observed from
above study that supply chain is the main operation that will be using in the business.
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REFERENCES
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Online
Tesco PLC (TSCO.L). 2018. [ONLINE]. Available through :
<https://www.reuters.com/finance/stocks/company-profile/TSCO.L>
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