TESCO Case Study: Analyzing Organizational Culture and Effectiveness

This report provides an in-depth analysis of TESCO's organizational behavior and culture. It begins by identifying TESCO's organizational culture using Handy's model, focusing on power and role cultures. The report then explores how these cultural aspects enhance organizational effectiveness,...Read More

ORGANIZATIONAL
BEHAVIOUR

Executive summary-
Organizational behvaiour is sim of practices and behaviour of management as well as
leaders, which put influence upon staffs performance in varied terms. The current study is based on
tesco. It has been identified from this assignment that by taking varied initiatives to motivate
workers, in term of creating effective organizational culture, company has grabed competitive edge.
Furthermore, firm has conducted ethcial business practices which is quite beneficial for its business
growth.

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
1- Identifying organizational culture in line with a theoretical model.............................................3
2- Exploring how culture improved organizational effectiveness with a focus on communication4
3- Evaluating role of culture on workers motivation.......................................................................6
4- Evaluating how TESCO could utilize the culture of its company to further enhance its success
.........................................................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES ..................................................................................................................................10

INTRODUCTION
Organizational behavior is defined as set of actions and behaviors of individual person,
towards management and overall organizational functioning. It impacts productivity and
performance of workers within a company. In term of study, it is related to group of people who
work together and perform in a team. The current assignment will be based on TESCO, which falls
under list of leading supermarkets in the world. Organization aim is to provide better services and
products to customers. It also takes initiative to enhance work place environment and create it in
positive manner. The study will explain how organizational culture enhances its effectiveness with a
concentration on communication and will also define role of company culture in the context of
employee motivation. Furthermore, lastly the report will justify how firm could use this element to
further enhance its success.
MAIN BODY
1- Identifying organizational culture in line with a theoretical model
In the world of business, organizational culture play vital role in success and unexpected
growth of companies (Oh and Han, 2020). There are varied types of models and concepts available
that has been utilized in the context of many firms, to define their specific culture. Handy's model
of organizational culture is the best and most effective concept. It encompasses four types of
culture that a company may adopt according to management behavior and its organizational
structure. Here, this model is applied in regard to TESCO.
Power culture-
This type of culture drives the attention of individual person to utilize their power in
effective and systematic manner, which made them able to enhance performance of each worker in
productive manner (Handy's culture model, 2021). This kind of culture mostly found within large
and small companies, where power related to decision-making is on hand of only one person
whether it is owner or manager. Leader and managers may adopt this culture while performing in
TESCO, because it is quite difficult for both of them to run a wide company and manage everything
according to plans.
Role culture-
Just like above form of organizational culture, it also adopted by many firms to achieve
their strategic goals and objectives and to gain desire outcomes. It is a kind of culture where leader
had given roles and accountabilities to each applicant according to their education level,

qualification, abilities, competences and efficiency. It drives the attention of workers towards
making their work done in systematic manner, without making any mistakes as they are able to do
so and get on the basis of their skill so there is no room for errors.
Task culture-
According to this culture, leaders and managers take initiative to concentrate on particular
task and project, for which they target those people who may conduct effective practices and hard
work to complete it. They brought individual person into work on each activity as and when they
are needed. It is quite different from the other types of cultures that most of the companies has
adopted, just to obtain better outcomes more than expectations and even better than rivals. TESCO
may adopt this culture and apply at workplace in the context of its employees.
Person culture-
It is quite complex to adopt and implement this culture into practical manner, because it
drives the attention of individual candidate towards achieve own aims, objectives and completing
their own work on time. It made them able to focus on increasing own abilities, instead of
supporting other to do so. It is not that easy for TESCO to use this organizational culture and
manage their performance of staff accordingly. According to this culture, people prefer to work in
freedom and act independently, which make them happy and comfortable, they take less initiative to
support other candidate who perform with them at same workplace.
As discussed above, four types of organizational culture are available and used by the
companies in the world of corporate. TESCO may utilize power and roles culture, which made it
able to obtain a lot of benefits in varied terms and strengthen management to gain competitive edge,
which is quite essential to get for company while operating venture in retail sector where
competition level is high. By adopting these two forms of organizational culture, firm may sustain
for longer period and stands in market to be competitive.
2- Exploring how culture improved organizational effectiveness with a focus on communication
Culture in a company is described by how firms are run, how personalities or workers
within companies interact with each other and also by how organizational structure is set out (Porcu
and et.al., 2020). When TESCO adopt power and roles cultures, it may play vital role in the context
of improving its organizational effectiveness and efficiency, which is quite important and beneficial
to improve. For example, according to power culture, when leader takes initiative to use their power
in fair manner, without conducting any unethical practices, they may boost morale of each worker
and drive their attention towards performing much better, which directly or indirectly improve

company effectiveness in term of increasing sales, productivity level and operational capability. It
made management able to deliver on time and quality services to customers, which in return help to
increase buyers satisfactory level above expectations of manager.
By using reward power in positive and equal manner, leader may play significant role to
enhance organizational effectiveness (Alghamdi, 2020). For instance, with the help of power culture
and their usage in ethical manner, TESCO management may enhance performance and productivity
of employees, and made them capable to work hard throughout they may contribute to achieve aims
in competitive business environment. This culture is used in manner of providing rewards and
appraisal on the basis of hard work and productive nature of workers instead of taking favor of
specific group of people. Fair decision taken by leader and manager according to power culture,
always provide desire outcomes. Furthermore, it also creates environment where people may
communicate with each other freely without any threat, which boost their growth and give them
reason to retain with TESCO for longer time period.
Not only this, role culture may adopt by TESCO also supports to enhance company
effectiveness in term of increasing efficiency, performance and boosting morale of candidates who
conduct many attempts daily just to make their firm successful and permit standing strong in form
of the biggest competitor in retail sector (Metz, Ilieș and Nistor, 2020). It improves supermarket
effectiveness by improving performance and increasing productivity of each applicant, which made
them much stronger than even in the context of completing daily task given by authority.
When manager assign a specific duty to workers on the base of their skills and competences,
they may support directly and indirectly to enhance their morale, which drive them towards making
everything possible for firm in term of achieving competitive edge and reaching at global level. It
helps to increase or improve operational effectiveness, which in return increase sales and customer
satisfactory level.
Along with all these benefits and contributions, organizational culture also play vital role to
encourage communication. For example, when management create environment where people may
work together and interact with each other, it may lead to conduct effective communication
practices between all of them which help to enhance performance and other growth elements, that is
quite beneficial for Tesco and its staffs.
Organizational effectiveness and communication at workplace is improved when culture
help to motivate people, which is important for each stakeholder. Supportive and collaborative
culture provide unexpected results to supermarket, as it help company to sustain for longer time
period in retail industry. Culture is the only source that boost communication process in company
and support to make it better than the other things, which is quite good.

3- Evaluating role of culture on workers motivation
It can be said that culture as a key component support to reduce work stress, depression and
motivate workers, who perform in productive manner, to achieve strategic aims and objectives of
companies such as TESCO. Along with reducing work related tensions, at the same period,
organizational culture enhance the extent of motivation, which falls under category of another
source that contribute to retain people for longer in supermarket and help to improve firm
effectiveness (PAAIS and PATTIRUHU, 2020). By using power and role as organizational culture
forms, leader may create supportive environment that leads to develop a harmonious atmosphere
among applicants.
High performing and pleasant culture increase productivity and potential felt by workers and
assist reduce emotional pressure, inertia and economic pressure as well. Furthermore, TESCO run
its venture successfully, and the main reason behind it is initiatives to encourage employees to take
part in decision-making process, which help to motivate workers. Firm provide performance based
rewards to everyone who work for them, in competitive environment just to make aims and
objectives achievable. By referring to Maslow's hierarchy of needs as employee motivation model
(Guterresa, Armanu and Rofiaty, 2020). Performance appraisal are one of those needs for which an
employee demand and expect to get after performing productively. When manager fulfill this kind
of workers need, they may play vital role to motivate them and create environment where each
applicant felt positive.

Psychological needs- When company create a culture where basic needs of its staffs is
considered they may motivate individual person in systematic manner, which is quite important and
useful in the context of Tesco. It included shelter, food and water, that provide satisfactory feeling to
employees and allow to show their loyalty with brand, in term of supporting TESCO to gain
competitive edge and even it attempts to provide quality services to people during pandemic.
Security and safety needs- Furthermore, culture in company where people felt safe and
secure also contribute to make them highly motivated. It may be so, when leader take action and
develop tactic to provide security needs, which help to boost morale and performance of each
applicant.
Love and belonging needs are also included in list of Maslow's hierarchy of needs, which
drives the attention of management and leaders to create productive culture at workplace where
number of workers perform together. It helps to encourage staff members, and retain them forever.
Firm may fulfill this need when its leaders pay attention to on boarding and training needs of
employees. It can be said that by encouraging open lines communication between workers and
management as well as leader, supermarket may motivate people and achieve its desire outcomes.
Illustration 1: Maslow's Hierarchy of Needs
(Source: Maslow's Hierarchy of Needs, 2020)

Open lines communication let staff felt comfortable and supportive, which is not that easy for
leaders to let people feel like this as it require a lot of attempts.
Esteem needs- TESCO create its organizational culture which motivate workers when
rewards and recognition benefits give by leader in fair manner, without making any differentiation
between existing and new workers. When leader provide awards to employees for their milestones
achievements, without judging them on the basis of their physical appearance and attributes, they
may encourage staffs to work better than last few weeks or months.
Self actualization needs- at last coming to this stage, leader may successfully motivate
workers by creating an effective and positive culture in TESCO. Self actualization gives people
power to conduct innovative practices in term innovating ideas, which firm may use in future to get
competitive benefits.
4- Evaluating how TESCO could utilize the culture of its company to further enhance its success
Organizations culture put strong influence on workers and let them perform according to
values and rules, which drive sales of companies like TESCO higher and allow supermarket to
enhance further success in retail sector. In this term, it can be said that organizational culture is used
to grab further growth chances (Bendak, Shikhli and Abdel-Razek, 2020). Organization has strong
business culture that is compatible and supportive with environment that drive better financial
outcomes as compare to rivals that has also operates in same industry.
It refers to a firm's mission, expectations, objectives and values that direct workers to
perform accordingly, which is beneficial for them as well as venture as it allow company to achieve
its aims and be competitive in the future where business environment get affected due to varied
factors such as pandemic and intense competition. By having strong and the most influencing
culture in firm, management motivates people and encourage everyone to do their best and above
expectations of employers who select them on the basis of their competences and abilities not on the
base of their physical appearance, and other key features in term of discrimination.
TESCO may use its culture to further enhance its success, by increasing employee
engagement. For example, a work atmosphere that poss company's culture is driven by clear
expectations and purpose, it may encourage and inspire applicant to be more committed in their
work, responsibilities and roles and allow them to interact with others (Mesfin and et.al., 2020). It
leads to high extent of staff engagement, which in return drives their productivity and performance
level even better than last weeks.
Company can use its organizational culture to achieve above aim, by decreasing employee

turnover and increasing staff motivation when, which may be done when leader takes initiative to
identify exact needs and requirement of workers as it help to retain talented people who may
support supermarket further to enhance its success by working in effective manner. When initiatives
provide unexpected outcomes in term of making individual worker happy, company can be
competitive for its rivals and stand strong to give touch competition to its competitors.
TESCO culture is a powerful that management could utilize in systematic and ethical
manner, because it affects sales, profitability, employees morale, their performance and attempts,
which they conduct for achieving common goal. Company culture is quite beneficial element
because it helps to enhance workflows and guides decision-making procedures that also drive
towards achieving further success and enhancing ability to do so. It plays vital in current and further
business environment of retail sector where Tesco is operating and managing its venture activities.
CONCLUSION
From above analysis, it has been identified that by creating positive culture at workplace,
organization has successfully motivated each applicant, which in return has provided benefits to
management in term of building strong workforce. Furthermore, from above study, it has been
determined that company has motivated their staff members and enhanced their effectiveness's by
using organizational culture in term of making people free to communicate and interact with each
other. By supporting workers and taking part in their daily activities, leaders has also contributed to
enhance productivity and performance of applicants as well as boost their morale. By summing up
above discussion, it has been summarized that positive and productive culture at workplace has
helped firm to grow even better than other organizations that has operated in similar sector from
longer period just to gain competitive edge that are accessible in retail sector.

REFERENCES
Book and Journals
Alghamdi, S.A., 2020. The Impact of HR Strategy on Organizational Effectiveness. American
Journal of Theoretical and Applied Business. 6(4). pp.91-97.
Bendak, S., Shikhli, A.M. and Abdel-Razek, R.H., 2020. How changing organizational culture can
enhance innovation: Development of the innovative culture enhancement
framework. Cogent Business & Management. 7(1). p.1712125.
Guterresa, L.F.D.C., Armanu, A. and Rofiaty, R., 2020. The role of work motivation as a mediator
on the influence of education-training and leadership style on employee
performance. Management Science Letters. 10(7). pp.1497-1504.
Mesfin, D. and et.al., 2020. Perceived organizational culture and its relationship with job
satisfaction in primary hospitals of Jimma zone and Jimma town administration,
correlational study. BMC Health Services Research. 20. pp.1-9.
Metz, D., Ilieș, L. and Nistor, R.L., 2020. The Impact of Organizational Culture on Customer
Service Effectiveness from a Sustainability Perspective. Sustainability. 12(15). p.6240.
Oh, S.Y. and Han, H.S., 2020. Facilitating organizational learning activities: Types of organizational
culture and their influence on organizational learning and performance. Knowledge
Management Research & Practice. 18(1). pp.1-15.
PAAIS, M. and PATTIRUHU, J.R., 2020. Effect of motivation, leadership, and organizational
culture on satisfaction and employee performance. The Journal of Asian Finance,
Economics, and Business. 7(8). pp.577-588.
Porcu, L and et.al., 2020. The antecedent role of a collaborative vs. a controlling corporate culture
on firm-wide integrated marketing communication and brand performance. Journal of
Business Research. 119. pp.435-443.
Online
Handy's culture model. 2021. [Online]. Available Through:
<https://www.aqa.org.uk/resources/business/as-and-a-level/business-7131-7132/teach/
teaching-guide-handys-culture>
Maslow's Hierarchy of Needs. 2020. [Online]. Available Through:
<https://www.simplypsychology.org/maslow.html#gsc.tab=0>