LCBB4003: Tesco's Organisational Structure and Culture Report

This report provides an analysis of Tesco's organisational structure and culture, examining how these elements contribute to its overall performance. The report begins with an introduction to the modern workplace concept, followed by an overview of Tesco's structure and culture. The main body delves into the organisational structure, discussing functional, divisional, and matrix structures, with Tesco primarily employing a matrix structure. The report then examines Tesco's organisational culture, applying Handy's cultural model, which includes power, task, role, and person cultures. The analysis highlights how Tesco's task culture fosters flexibility, innovation, and employee morale, ultimately enhancing the company's performance. The report concludes by emphasizing the importance of aligning organisational structure and culture to achieve both short-term and long-term objectives. The report also includes the benefits of matrix structure and task culture for the company, and how it can adopt other cultures to improve performance. This report is a valuable resource for students studying leadership management and organisational behaviour.

LCBB4003 Introducing
the Modern Workplace -
Assignment 1

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Describing culture and structure of organisation along with analysis of the ways both
contributes to performance of organisation.................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Workplace is specific location where executed employment activities. In other words, it
is said to establishment at particular place involving one or more areas to work. Modern
workplace is said to employment location where most advanced technologies are used, embraces
automation, adapt shifting work attitudes and promotes ethics along with equality (Battistella,
2014). In current era, all organisations aim to introduce aspects of modern workplace that
includes flexible working hours, supports communication addition to collaboration and utilise
modern techniques while performing activities. To gain understanding about the concept, Tesco
is chosen which is multinational general merchandise as well as grocery retailer having
headquarters at Hertforsdshire, United Kingdom since 1919. the present essay is based on
structure and culture that is followed at organisation and the ways they both contributes to
performance of company. It also includes relevant theories as well as models associated with
culture and design of organisation.
MAIN BODY
Describing culture and structure of organisation along with analysis of the ways both contributes
to performance of organisation.
Tesco is a one of the company which performs key operations in retail industry. It was
established by Jack Cohen in 1919 as institute of market stalls. It has its shops, superstores,
supermarket, convenience shops and hyper market located in wide countries (Tesco, 2019). The
company has provided employment to more than 450000 people and earned revenue of £63,911
million, operating income of £2,206 million and net income of £1,320 million in the last year.
The business was started with specialisation in food and later was expanded in other areas
including commercial financial services, clothes, internet services and electronic goods. It has
Tesco Extra, Tesco Express, Tesco Metro and Tesco Superstore.
Organisational structure is said to the system that a business concern follows to manage
addition to control operations as performed by manpower. It identifies all the jobs, functions
together with authoritative positions to whom people will report. Organisational structure is
developed for establishing the ways a company will operate as well as assists in obtaining
objectives to allow future growth. For running business in accurate ways, it is essential for entity
like Tesco to implement effective suitable structure within the workplace. It determines the
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aspects of roles, responsibilities together with power are assigned, coordinated and controlled at
particular job location. Structure of organisation depends on predetermined objectives and
strategies. It is the important are that needs more emphasis by top level management in order to
ensure that all the tasks and activities are properly executed to reaching towards business goals in
set time frame. In present era, various kinds of organisational structures exists that companies
follows as per their requirements to achieve set goals. With these structures, all the workings are
properly managed and coordinated in appropriate manner. Some of the organisational structures
are as described:
Functional structure of organisation is considered as common structure that most of
business concerns follows for implementing operational activities in proper format. Through this,
top level administrators segregates departments as per the workings or jobs. They are groups in
accordance with specialization area (Bratton, 2015). It helps entities to attain growth easily by
setting high specialisation degree for work force so that productive results are achieved. For
example, If Tesco plans to introduce new product in competing market then functional structure
can be used. Through this, segregation of all departments will be done as per functions so that
distinct activities including financing, marketing, customer relationship management, selling and
administration can be performed efficiently (Tatli and Medalia, 2018). Within the structure, each
department or functional unit has own managers or superiors to assure to tasks can be attained
successfully. However, major drawback is it is that it lacks proper communication among
departments that may result in challenges like inappropriate business execution.
Large sized businesses mostly prefer divisional organisational structure for attaining
horizontal goals. Within the structure, various divisions of business can enjoy autonomy addition
to executes activities properly. Specific resources are allotted to all departments so that they can
work effectively in groups as well as teams for achieving common objectives. The divisions in
the structure are generally provided high flexibility to perform predetermined activities or
operations in proper aspects. Tesco can also adopt it when workings are done to achieve
particular long term project wherein involvement of several department is mandatory. It can
assure growth together with success of operations that are needed to be completed within defined
time frame. However, it can create roadblocks or obstacle for manpower to communicate with
others as all belongs to different divisions (Dillon, 2019). For Tessco, it is foremost suitable
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choice as they operate various stores, hyper markets along with subsidiaries at global and
domestic level.
Matrix organisational structure is one structure which is combination of divisional
along with function organisational designs. Within the structure, an individual has to report two
managers as well as both will supervise, direct and analyse the workings in order to influence the
person to make changes addition to modifications in work (Módis, 2018). Due to this, activities
that are performed by the individual are cross checked twice in order to reduce or eliminate error
possibilities that may occur in coming durations. With the help of this, an employee is provided
with huge opportunities to communicate with various people working at organisation. In Tesco,
it can be used to reach long term objectives through completing all operations on time. It also
removes barriers in communication as well as interactions for workers that results in
enhancement of knowledge addition to skills of all (Glăveanu, 2017). However, the drawback
behind using this structure is that it creates more confusions among employees due to difficulties
in making decisions about whom they will report first.
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Illustration 1: Tesco Matrix structure. 2019
(Source: Tesco Matrix structure. 2019)
As per the above discussed organisational designs or structures, Tesco managers are
following matrix structure that helps in improving interactions and communications at inter
department level. When challenges like decrease in productivity arises then all departmental
devise strategies collaboratively for reaching to appropriate solution and implementing effective
decisions. Similarly, this structure is used at Tesco so to guide manpower for reporting two
superiors in order to check the working twice for reducing possibilities of errors and problems
for future. When all operations are effectively coordinated, properly managed and effectively
implemented then it will improve organisational performance to great extent. In addition, matrix
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structure guides managers to ensure whether staff members are performing all activities
appropriately or not in order to reach business goals. When Tesco will achieve its objectives then
major changes will be noticed in enhancement of its performance that will maximise the
profitability also. At same time, it may also create conflicts among managers as different
managers have different viewpoints for the activities performed by subordinates that may result
in confusions for an individual to modify their activities or doing some changes.
Organisational culture is termed to collective assumptions, values and opinions which
are generally shared at particular company. It is specific collection of norms with values that
people and groups share at workplace. It reflects personality of a particular business. It is very
essential to have proper understanding of organisational culture as it governs the behaviour of an
individual employed at company in context to the internal as well as external business
environment (Haferkamp, 2017). The manpower engaged with organisation like Tesco enjoys
huge synergies the superiors due to strong alignment among personal addition to organisational
values. Hence, it impacts on entire performance of entity such as Tesco.
In relevance with case scenario of selected business, Handy's cultural model has been
considered as it facilitates determining the ways Tesco's culture contributes to success.
According to the model, cultures that may influence an entity are power, task, role and person
(Brenyah and Obuobisa-Darko, 2017). Key feature of the model is that it emphasis on cultural
aspect along with shows the ways organisational structures are connected with the identifies
types.
Within Role culture, the authority of company is generally delegated in distinctive
aspects. It increases awareness among employees about their roles and responsibilities that are
based on key specialisation addition to skills they possess (Brenyah and Obuobisa-Darko, 2017).
Organisations following this type of culture emphasis more on rules. Tesco can adopt role
culture so to maintain stability as well as enable huge formalisation addition to specialisation
level that are driven by positions that are within superiors and subordinates of entity.
In Power culture, few individuals only have some powers at organisation. Senior
management basically influences spreads throughout the business. In this, top administrative
authorities formulate rules and regulations by their own. It is described as set of powers that are
spread from central to distinct nodes of company (Bratton, 2015). With this culture, politics are
prevalent that are direct outcomes of persuasion practices that are followed within business
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concerns. Due to this, employee performances are judged as per their achievement despite of
their behaviours. Tesco could adopt the culture for enabling quick decision making as workplace
as various people are holding such privilege within organisation.
In context to Task Culture, project oriented approach that is followed across all levels of
company that boosts matrix as well as project based design of company. As it is job based,
allocation resources is done according to tasks that are provided to various teams. This culture is
formed when organisational teams are made for addressing particular issues and progressive
projects (Hayes, 2017.). For Tesco, the adaptation of task culture will enable in unifying powers
of teams that can show improvements in efficiency, innovations as well as flexibility for warding
off competition in successful manner.
In Person culture, the objectives of a person are basically prioritised over objectives of
entity. As a result, business exists for serving purposes to deliver assistances for achievements of
individual goals. In present era, person culture is usually found in Professional Partnerships in
which influences are mutual addition to powers are based on expertise driven. This creates high
specialisation degree at workplace that helps workforce to achieve growth in the manner they are
aspired (Kolker, 2015). Tesco can adopt this culture when they aim to encourage the employees
for pursuing their own aspirations as well as helping in providing well established platform to
achieve growth.
In modern era, Tesco works by following task culture wherein the managers enable
flexibility in daily operations as well as invitable to manpower. With the help of such culture,
selected entity has inculcate environment that is further illustrated in different task groups. With
this, business concern is able to improve specialisation power that helps in making prompt
decision along with ensuring employee morale do not falter during set time period. Moreover, as
the culture aims to induce flexibility, Tesco enjoys wide systems associated with business
procedures which are easily adopted within continuously changing environment of business. In
addition, the selected entity also combines right matches for leadership, skills, knowledge and
personalities that motivates the employee to work in environment where they can foster their
innovation by generating new ideas together with acknowledgements.
Organisation design and culture enable a business to promote its production level
significant (Young and Ghoshal, 2016). As corporate performance is closely associated with
efficiency level, Task culture in Tesco helps to cater all its customer requirements in proper ways
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along with gains excel against rivals. Thus, it enables a company to experience better
performance through creative together with innovation manner.
CONCLUSION
As per the above discussion, it has been concluded that structure and culture of
organisation are essential components on which more focus is required by business concerns to
achieve all their short along with long term objectives. To analyse business culture, Handy's
cultural model can be implemented. The model includes four elements that are person, role, task
and power. Organisations adopts the culture as per their needs and essentialism. For assessing
structure or designs on organisation, distinct types of structures are needs to be analysed. They
are matrix, divisional and function structures. All depends on institutions to adapt the effective
one among them as well as changing existing ones as per the project requirements that they are
undertaking or will undertake in future as success factor is highly depend on adopting of
effective structure and culture.
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REFERENCES
Books and Journals:
Battistella, C., 2014. The organisation of Corporate Foresight: A multiple case study in the
telecommunication industry. Technological Forecasting and Social Change. 87. pp.60-
79.
Bratton, J., 2015. Introduction to work and organizational behaviour. Macmillan International
Higher Education.
Dillon, M., 2019. Introduction to sociological theory: Theorists, concepts, and their applicability
to the twenty-first century. John Wiley & Sons.
Glăveanu, V. P. ed., 2017. The Palgrave handbook of creativity and culture research. Springer.
Haferkamp, H. ed., 2017. Social structure and culture. Walter de Gruyter GmbH & Co KG.
Hayes, A. F., 2017. Introduction to mediation, moderation, and conditional process analysis: A
regression-based approach. Guilford Publications.
Kolker, R. P., 2015. Film, form, and culture. Routledge.
Saxe, G. B., 2015. Culture and cognitive development: Studies in mathematical understanding.
Psychology Press..
Young, C. and Ghoshal, S., 2016. Organization theory and the multinational corporation.
Springer.
Brenyah, R.S. and Obuobisa-Darko, T., 2017. Organisational Culture and Employee Engagement
within the Ghanaian Public Sector. Review Pub Administration Manag. 5(233). p.2.
Tatli, M. and Medalia, O., 2018. Insight into the functional organization of nuclear lamins in
health and disease. Current opinion in cell biology. 54. pp.72-79.
Módis, L., 2018. Organization of the extracellular matrix: a polarization microscopic approach.
CRC Press.
Online:
Tesco. 2019. [Online]. Available through: <https://www.tesco.com/>
Tesco matrix Structure. 2019. [Online]. Available through:
<http://pdpaperikmk.almasoderberg.com/tesco-matrix-structure-dozezosoq2565.html>
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