Impact of Organizational Culture and Change on Tesco PLC Performance

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This report critically examines Tesco PLC's organizational culture and climate, focusing on their influence on corporate branding. It analyzes the strategic human resource management (SHRM) concepts adopted by Tesco and their impact on the company's growth and sustainability. Furthermore, the report evaluates Tesco's organizational change management practices, detailing their effects on the company's structure, employee behavior, and overall performance. The overview includes the historical context, business overview, and competitive landscape of Tesco, highlighting its expansion strategies and market position. The analysis covers different types of organizational culture, the impact of organizational change on Tesco's operations, and discusses the importance of employee diversity and engagement within the company. Finally, it reflects on personal learning outcomes from the study of Tesco's organizational culture, human resource management, and change management, along with relevant learning theories and reflective practices.
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Running head: PEOPLE AND ORGANIZATION
PEOPLE AND ORGANIZATION
Name of the Student
Name of the University
Author Note
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1PEOPLE AND ORGANIZATION
Table of Contents
Introduction......................................................................................................................................2
Organization culture and climate influence corporate branding......................................................5
SHRM concept impact organization growth...................................................................................8
Change management influence organization structure and employee behavior and performance12
Personal learning...........................................................................................................................19
Conclusion.....................................................................................................................................22
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2PEOPLE AND ORGANIZATION
Introduction
The main aim of the research paper is to critically analyze particular companies chosen
organizational culture and as well as the climate which is known for influencing the organization
in corporate branding. The paper will also try to critically discuss how the key strategic human
resource management concepts and theories are hereby adopted by the chosen organization why
impacting its growth for future sustainability in the business. The next part of the paper will be
critically evaluating how the particular organization is practicing organizational change
management in the present date (Arditi, Nayak and Damci, 2017).
It will also discuss how the organizational change management has impacted the
particular companies’ organizational structure, employee behavior and as well as the
performance of the organization from the past till present date. The next part of the paper will be
critically discussing personal learning from this particular portfolio that is the learning outcome
from company organizational culture, Human resource management and as well as effect
organizational change. It will in the end discuss various relevant theories of learning and
reflective practice in order to illustrate the understanding of the subject matter in the research
paper.
Company Overview
Tesco PLC is a British based company which is known for having is largest food retailing
business in UK. it is also known for being one of the greatest and as well as the largest British
sellers which is known for holding the third rank in the retail industry just after the US based
company Walmart and France based organization Carrefour. Tesco is known for selling at
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3PEOPLE AND ORGANIZATION
around 4000 unique food products in the present day which helps it to gain a diverse range of
products and makes it a competitive company over its competitors in the market (Armstron and
Taylor, 2020)
Talking about the history of the company it can be said that Tesco had started with the
business of grocery retailing but now in the presented it is also known for selling various types of
stationery items, health and beauty products, clothing products, home entertainment, kitchen
utensils, seasonal goods like barbeque and garden furniture in the summers. Talking about the
annual profit which is earned by the company according to the year 2017 has been announced as
Euro 20 billion dollars soon after the announcement it had open various types of foreign stores in
countries like Singapore, Beijing, China, Greenland and many more.
Tesco in the presented as known for operating in more than 30 countries with all over 3275
stores out of which only 1050 stores are known for operating in UK itself, which is the company
is largest geographical market according to the author Garavan, (2018).Tesco has its own range
of products and services ranging from value, finest premiums and cheapest in order to game
market demand from a range of different income proof of customers in particular market.
Speaking about the direct competition in the retail market it can be said that Tesco is
known for operating in highly competitive field where it has to hold a disproportionate amount
of power in reflective years of operation. The company in the present that is known for sharing
its competition with three major competitors in the retail market which are Sainsbury, Asda and
Morrison. These are the three biggest joints of the retail industry which are known for having
great chain and collective mass of operation that influences the whole retail and fruit market as a
whole (Banfield, Kay and Royles, 2018). Along with this talking about the recent financial crisis
which has been put under the company Tesco, it is also trying to gain a customer advantage and
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4PEOPLE AND ORGANIZATION
demand its customers by seeking to reduce its expenses and switching over to cheaper alternative
supermarket products. When spoken about cheaper alternative supermarket products Tesco is
known for facing direct competition from Lidl, Asda and Aldi.
However it can be said that Tesco is known for having a strong brand image and as well
as a good market leadership. Tesco is the largest retail group not only in UK but also in most
other developing and developed countries from all around the world. The company in the present
day has increased its international market demand from 30 % to 56% as of the grocery market
report published in the year 2019 (Bratton and Gold, 2017). It has also gained the successful
business which in the present it is known for operating in more than 42 countries worldwide
beyond UK. The company with its expansion in the new market has gained advantage by
creating a new market demand in future alternative markets of South Korea so as by
manufacturing new product launches and services which makes the company easier to enter new
markets in the present date of operation. The group in the present it is known for having a
stronger market presence in most of the countries worldwide as compared among its rival
companies such as Walmart and Carrefour.
Therefore in the present that of operation tesco.com has also become one of the largest
online grocery stores as well as shopping services in the world. It has also become the fourth
biggest online retailer and grocery marketing company in UK just behind Amazon, Dell and
August as determined in a market research presented by the author Brewster and Hegewisch
(2017). In the year 2018 tesco.com sales continued to grow constantly when it achieved hike of
10% that is 20% in the first quarter to 30% in the second quarter of the year 2018. The company
in the present that has a very impressive brand image that is associated with the production and
manufacturing of high quality goods and services with huge range of assortment at the time by
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5PEOPLE AND ORGANIZATION
providing this prices (Sparrow, Brewster and Chung 2016). Since the year 2010 the company has
been known for investing in various types of overseas market and looking for new opportunities
to expand and as well as open newer ways of generating a long-term growth of shareholder and
creating a sustainable future for itself in the coming years of operation in Europe, Asia and as
well as American countries (Brewster and Farndale 2018).
Organization culture and climate influence corporate branding
Organization and culture system shared with the various types of assumption, value and
belief that governs the employees and as well as the people working in the particular
organization to behave according to the organizational grade. The culture of the organization is
known for setting guideline and boundary which will help the employee and as well as the
organization to perform their job in a correct manner and align their roles according to the
company policies (Brewster, Sparrow and Houldsworth 2016).
Therefore it can be said that the company in climate of the organization is fully ingrained
in the behavior of the members and employees who are working in the particular organization as
a whole. For this reason it can be said that culture can be thought of as the personality which is
represented by the organization itself. The unique culture and climate of an organization also
creates a difference in atmosphere which is mostly felt by the people and employees who are a
part of the organization (Chatman and O’Reilly 2016). However it can be said that organizational
climate can be defined as the way the members in an organization experience the particular
culture of the organization. The climate of the organization is subject to change and is mostly
dynamic because it is regularly maintained by the top managerial and as well as the upper
management of the particular organization (Chelladurai,and Kerwin 2018).
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6PEOPLE AND ORGANIZATION
According to the author it can be said that if culture is known for representing the
personality of the organization, climate will be representing the mood and changes in the
organization. It can be said that organizational climate is much more easier to experience where
is on the other hand the organizational culture is much more easier change in future
sustainability of the business organization. Generally there are four different types of
organizational culture which are:
Clan oriented culture - Clan oriented culture basically act like a family where it is known
for having its main focus on various points which are nurturing, mentoring, and doing
things together just like a whole family.
Adhocracy oriented culture – the adequacy oriented culture is known for its dynamic and
entrepreneurial focus on various types of innovation and creative process and as well as
taking various types of business risk so that the company can do things with care.
Market oriented culture - market oriented culture are the results of competition,
achievement and as well as good competition in the market. The market oriented culture
is mainly followed by those organizations which try to achieve things faster and deliver
better opportunities to the customers (Suddaby, and Foster 2017).
Hierarchy oriented cultures - the hierarchy oriented cultures are structure and as well as
controlled by putting men focus of the company on standard slide efficiency, team
building, stability and things in a right and proper manner.
Therefore it can be said that the organizational culture is known for determining success or
failure of the particular organization as because it directly impacts its core values and as well the
employees working under the company. For this reason only the organizations are known for
adapting their cultures current needs and forces. Tesco can be said that is an example of such an
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organizational culture which have undergone and has got implemented with adaptive culture and
strategic changes from the past till the present. With various types of secondary research it has
been found out that this cause success is fully linked with the organizational change it has made
from its past. Therefore such success of the company has been only possible due to its particular
focus on organizational change through growth strategies where its men focus on services on
core competencies like brand reputation and value added services.
With the help of the organizational change the company has initiated within itself it has
shown a white potential in order to capture the international retail market with its diverse
environmental, cultural and political factors. The organizational change throughout has also
ensure quick flow of information available in the top management as well as the bottom
management of the organization by providing it with best and enhanced customer and supplier
relationship program which are much unique in their structure. The company has also developed
strong communication skills and close relationships are maintained by each and every
department of the company so that trust and respect is increased among the employees and top
management of the company.
According to the research work which was initiated by the author Guest, (2017) in the year
2017 it has been found out that Tesco is the biggest retail business in UK which is known for
employing few of the biggest employees in the country itself. The company six employees from
diverse cultural background and from different sources which also includes various types of
government campaigns and government related programs. The recruitment system and selection
system of the company allows the employers to consider the employees to come from diverse
local groups and cultural background, and later on fit there into various types of particular job
depending on the capabilities and potential of the employees. with the organizational change the
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company has also make it sure that its managers work shoulder to shoulder with the workforces
initiated under the top management and is our on the technical aspects of the company operation'
operation. Therefore with this organization will change the company also provides its employees
handsome salary is based on the nature of work coma it also provides various types of additional
benefit and help which includes both monetary and personal form of flexible hours of working
and many more.
Therefore in order to conclude it can be said that the organizational culture and climate has
helped the company to gain heavy customer oriented organization having its focus fully on the
external environment affecting the company. With the up gradation in organizational culture and
climate the company has able to build a customer relationship between the products and services
offered by the company and with the needs and demand of the customers associated with it. The
company has asserted that it has shifted its core value of profit maximization to building up
customer relationship and customer value orientation to be the main goal of the company.
According to the author with the help of change in organizational culture disco has aligned
and integrated its culture into a corporate brand so as by making itself a powerful engine of
competitive advantage and growth among its competitor till the future. With the help of the
organizational culture the company will be able to cultivate a culture of achievement, excellence
and consistency within its operation while creating a strong purpose and commitment with its
share values to build up an environmentally and socially responsible brand like Tesco. It has thus
improved its efficiency, accuracy and quality in the present date and has moved the organization
closer to its vision.
SHRM concept impact organization growth
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9PEOPLE AND ORGANIZATION
Human resource management is known to be the strategic approach in order to gain
effective management of employees in a particular company organization which will help the
business to gain a competitive advantage over its competitors in the market. Human resource
management is designed in order to maximize the performance of the employees in terms of
service and help gain the employer’s strategic objective. It can be said that the effective human
resource management is mostly or is primarily concerned with the management of the people and
employees within the organization putting more focus on the organizational system and
organizational policies.
Also it can be said that the human resource managerial department is fully responsible for
checking out the employees benefit design, the recruitment process of the employees,
development and training of the employees, reward system management and as well as the
performances appraisal of the employees. The human resource management also concerns the
department with organizational changes and industrial relationship building in order to balance
the organizational practices along with the requirement arising from collective bargaining
procedures and governmental laws. Overall in short way it can be said that the main aim of
purpose of the human resource management is to ensure that the organization is able to achieve
success with the help of its employees and maintain the operations in a sustainable manner to the
future. Human resource department dolls manages the human capital and as well as
organizational goals in strategies which should have focus in implementing new policies and
processes.
Therefore in the present date more and more organizations are seeking to outsource the
services of human resource Management to recruitment companies. The main focus of the
human resources management has now moved to the strategic illusion of the employees and the
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measurable impact development program of the business. Companies in the presented are only
successful if they have an adaptive, resilient, and customer-centric and change directive approach
among the competitors in the market. With these types of working environment the effectiveness
of human resource management is also very crucial for business to gain success. According to
the author the human resource department known for establishing a system of best performance
development from employers, career best succession planning and development programs which
helps in keeping the employees happy, motivated and personally engage with the company in
order to gain and contribute success to the development of the company for a better future.
Therefore strategic human resource management can be directly defined as the linking of
human resources with the strategic goals and objectives of the company in order to improve the
manufacturing process and operational performance so as bi developing the company to foster
innovation and gain a competitive advantage. According to the author’s strategic human resource
components is a process which involves the use of over approaching approaches to the overall
development of the human resource strategies 10 vertically integrating a boost to the business
strategy among the competitors in the business. However talking about the key strategic human
resource management concepts which has been adopted by the company disco are helping it to
deliver a strong, sustainable long-term growth and expenditure in the external markets with
nonfood items and telecom communication. According to the author in spite of the economic
downturn in Tesco it is fully expanding its business and operation which can be seen increasing
every year profit. Does the key issue behind its successful growth is the strategic human resource
management policies.
Evaluation of discourse strategic human resource management policies
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11PEOPLE AND ORGANIZATION
Strategic human resource management policies has gained both popularity and as well as
credibility over the few past years as because it is known for having a good impact on the
organizational performance of the company. As in the international market Tesco has strategic Li
integrated its human resource into its overall business plans so that they can utilize in better
decision making skills and gain acceptance from the employees by offering each and every
employees the basic and extended training needs required. the help of strategic human resource
management policies the company is also committed in providing opportunities to people so that
they can get their jobs and career in to the company.
According to the research work it has been found out by the author Dhir, (2019) that in
the year 2019 the company had a commitment towards providing training and development
needs to a huge number of employees which were more than before. Therefore it can be said that
within increase need of higher value to make to get placed in Tesco organization it also has
provided few of the best performance to the employees with its strategic human resource
management schemes. According to the author Dhir, (2019) Tesco has the views for treating its
employees and as well as its customers just like how they get to be treated which helps it to be
different from all its competitors in the market. Tesco with the help of strategic human resource
management has realized that managing people and employees well in a culture of respect and
trust will intern help them by earning and boosting profit and increase customer awareness in the
market.
Therefore it can be said that the successful strategic human resource Management which
is followed by Tesco is one of the main reason why it has gained huge amount of success in the
present day so as by attracting and retaining and as well as motivating their staff and employees
to the core Tesco people strategy. Also by offering a very competitive payments and as well as
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