Tesco Case Study: Organizational Structure, Culture, and Effectiveness

This report provides an analysis of Tesco's organizational structure and culture, examining how these elements contribute to the company's overall effectiveness. It identifies Tesco's use of a multidimensional organizational structure, which allows for localized adaptation while maintaining central control. The report also discusses Tesco's adoption of a role culture, emphasizing departmental efficiency and inter-departmental coordination. Furthermore, the report evaluates the effectiveness of Tesco's organizational culture based on involvement, adaptability, consistency, and mission, highlighting the company's commitment to employee value and customer satisfaction. The analysis concludes that Tesco's strategic approach to organizational structure and culture is crucial to its success in the competitive retail market.

Organizational Behavior
Activity 2

Characteristics of organisational structure
and culture
Organisational structure is the systematic
approach adopted by an organisation in
which the three crucial operations that are the
task allocation, supervision and the
coordination among the employees is
maintained. It has the significant impact on
the growth and development of the
organisation.

Continued...
Fundamentally there are three
types of organisational
structure used in the business
organisations.

Continued...
Functional
Organisation performing the slew of activities are divided on the basis of their
functional specialities among the employees in Functional organisational
structure. In retail section, companies are divided into departments such as
finance, marketing, production, logistics, human resource and research and
development.
Multidimensional
In this type of structure, organisations are divided into the small units which are
based on the variety of products or geographical location. Each unit perform
every core function at encompassing all the functions of different departments.
Matrix
Matrix structure is used in the organisation which are focussing on the
accomplishment of specific tasks and projects. In this structure employees are
acquainted with the high degree of knowledge about the project.

Impact of organisational
structure on Tesco
Tesco is using the multidimensional organisation structure in order
to perform all the operations. Headquartered at Herefordshire,
England Tesco is serving worldwide through having 6814 stores.
These stores are located at different continents and locations. With
the aim to function in the productive manner, the operations of
tesco are segmented into units. At each unit the core function of
the retail industry that are marketing, research and development,
finance, human resource, production and logistics are processed.
Controlled from the headquarter each unit is working
independently. In this way it is able to adopt the strategies and
policies as per the suitability with respect to the location.

Organisation culture
Organisational culture refers to the values
and principles possessed by an organisation
that makes it unique in context of social and
psychological environment. It is the manner in
which the employees of an organisation share
beliefs, assumptions and thought between the
vertical and horizontal hierarchy.

Continued...
There are three types of culture exists at organisations:
Power culture
The culture of an organisation which is focussed on achieving the goals and
targets in the rigorous manner is referred as power culture. Employees are
oriented towards implementing the strategies and policies framed by the senior
authorities.
Role culture
With the confined board of directors, emphasis is laid on maximizing the efficiency
and productivity of each department.
Task culture
This type of culture is adopted in the organisation in which there are series of
tasks or small projects are given. There focus is completion of those projects in
effective manner.

Impact of organisational culture
on Tesco
Tesco with the aim to provide maximum satisfaction to the customers
adopt role culture in their organisation.
It enables the organisation to focus on the each department in order to
increase the productivity.
There is good coordination level within the department and inter
department.
Along with improving the efficiency level of organisation, role culture
also enhances the sales and profits of the organisation.
It improves the employer-employee relationship.

Effectiveness of
Organisational Culture
Theory

Organisational culture theory
Organisational culture theory explains the
organisational events with the inculcation of
different components in it. It states that with
the adoption of appropriate organisation
culture an organisation is able to minimum the
cost incurred on the process and maximize
the profitability. It focusses on the impact of
values, attitudes and beliefs of all the
employees working in the organisation.

Effectiveness on Tesco
There are four traits on the basis of which the
effectiveness of the organisational culture is
assessed.
Involvement
Consistency
Adaptability
Mission

Involvement and Adaptability
Involvement and adaptability are the traits that predicts the growth level
of the organisation with the focus laid on the employee's operations.
Involvement: One important component of the organisational culture is
the manner in which employees of the organisation coordinate with each
other and linked with the organisation. In that regard, the degree of
involvement of the employees in the organisation is the crucial factor for
growth. In Tesco, employee value is placed at the priority level in which
each employee is worth considered. In reciprocation, considering
themselves as the important part of organisation they have active
participation in working of Tesco.
Adaptability: In the present time, market is becoming highly volatile
making the competition fierce in nature. In that respect it is imperative for
an organisation to bring flexibility in their operations and responsiveness
to the demand of changing scenario of market. In Tesco, due to dynamic
organisational culture, employees have the high degree of openness
towards the advancement in the market.