Analysis of Organizational Design, Motivation, and HR at Tesco

This report examines Tesco, a multinational grocery retailer, focusing on its organizational design, employee motivation techniques, and emerging HR developments. It explores the importance of organizational design theory, particularly the application of the McKinsey 7's model, to align structure with strategic goals. The report analyzes both financial and non-monetary motivation techniques, highlighting their impact on employee performance and the significance of human capital theory and knowledge management. It further investigates contemporary HR developments and their relationship to organizational design and change management, providing a comprehensive overview of Tesco's strategies for achieving organizational success. The report uses research and contemporary knowledge to support evidence for emerging HR developments. The report covers the Tesco's structure, strategy, systems, shared values, skills, style, and staff, and how these factors contribute to the company's success.

36 Value and contribution to
organisational success

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 The importance of organisational design theory...............................................................1
LO 2.................................................................................................................................................4
P2 Analysis the different approaches and techniques for motivating employees..................4
LO 3.................................................................................................................................................7
P3 Conduct research and use contemporary knowledge to support evidence for emerging HR
developments..........................................................................................................................7
LO 4.................................................................................................................................................8
P4 Poster presentation............................................................................................................8
CNCLUSIONS..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Value ads are the real contribution for make organisation success. This will be effective
and valuable for company and its growth factors in order to achieve goals and objectives. The
present study will be based on “Tesco” is a multinational grocery and general retailer in United
Kingdom. It is well known 3rd largest company in the world. The study lays emphasis on
evaluation the importance of organisational design theory in organisational structure and
fulfilling the strategy. The report wills analysis the different approaches and techniques for
motivating employees. The study will conduct by research and use contemporary knowledge
which is support evidence for emerging HR development. It will also highlight by the
relationship between organisational design and change management.
LO 1
P1 The importance of organisational design theory.
Introduction of Tesco
Tesco is the British multinational groceries and general retailers company at United
Kingdom. The company is founded in 1919 by the jack Cohen as a group of market stalls. The
company has expanded globally with operations in 11 other countries in UK. Tesco is diversified
into the various areas such as books, clothing, furniture, financial services, toys, telecoms
services and internet services (Anderson, 2016). They have 450000 numbers of employees who
are hardly contributed for success of company in order to achieve goals and objectives of
company. The core purpose of Tesco is to make what matters better, together.
Introduction of organisational structure of Tesco
The organisational structure is refers systematic outline of certain activities which are
directed in order to achieve goals of company at marketplace. These activities include various
rules, roles, polices and responsibilities. This help to determine how important information is
flows between the different levels of department within the company. The Tesco is well-known
British multinational grocery company. The company follows a hierarchical organisational
structure. In this structure, position and obligations are divided into various parts and department
in terms of ensure the work will done in effective manner (Banerjee and Srivastava, 2017).
1

In the hierarchical organisational structure employees are divided into the various levels
of departments which are help to done work in effective manner. At the every stage have
chained, person have a number of workers who are directly under them, within the span of
control. As per the illustration 1, one of the top of the business pyramid have various
responsibilities and authority for handle the whole staff members in organisation. Tesco's board
of director is consisted 10 members and significant changes which are take place in board
meetings.
Concept of organisational design and relation with structure of Tesco
Organisational design is the best process of aligning structure of an organisation with its
aims and objectives of company. With the help of prefect organisation Design Company is able
to achieve better customer’s services, increased profitability, clear strategy for managing and
growing business, improve efficiency and time cycle as well as reduced operating cost
(Bortolotti, Boscari and Danese, 2015). Well design organisation ensure the matches its purpose
and strategy in order to meet various challenges or business and significantly increased collective
efforts of employees will be in successful work.
In order to analysis the importance of organisational design theory is related with
organisational structure to fulfilling strategy. Here, is select McKinsey 7's model.
2
Illustration 1: Tesco organisational structure
(Source: Hierarchical organisational structure, 2017)

This framework for organisational effectiveness has 7 internal factors of a Tesco in this
need to be aligned in order for it to be successful. This classified into hard and soft elements. The
hard elements easily identified and soft elements are more intangible and influenced by corporate
culture.
Hard
elements
Strategy The strategy is plan which is developed by Tesco for remain
competitive in its industry and market. This is an ideal
approach which is established a long term strategy. For
example: manager of Tesco build strategy for establish long
term goals, in this role of board manager to communicate this
strategy with employees for better work.
Structure The structure of work is made up its chain of command and
divisional make-up of outline the operations and functions.
For example: If manager of Tesco is communicated all
strategy to employees with operations and functions of work
like planning and responsibilities of work, then work is run in
effective manner (Brockbank and Ulrich, 2016).
System System of Tesco is refers the daily work like sales of products,
keep products in supermarket, workflow and decisions of
company. For example: Tesco manager is take care of their
daily work like products arrange in supermarket and best
customers services, then it is help to achieve goals and
objectives of company by relating its mission and objectives.
Soft elements
Shared values Shared values are common concept which is influence the
behaviour of entire staff and management. For example:
manager of Tesco company is share prefect and correct
information with employees in order to achieve goals of
company. In this board of company shared information with
managers, manager’s share with team leaders and team leaders
are share with their team members as per structure.
Skills Skills of employees and management, which is help to
3

determine types of achievements and works. For example: is
employees have proper skills and talent of work which is help
to make good result (Cameron and Green, 2015). Employees
are come with assess its available skills and decide to make
changes in their strategy as per structure work.
Style Style of work like leadership and management style of work.
For example: Tesco take their decisions by own as per
autocratic leadership style and motivate to employees. In this
they are not take views of employees.
Staff Staff is refers the human resources of company. For example:
for improve performance of employees, to that employer have
to provide training for achieve objectives as per strategy and
structure of company.
As per the above, manager of Tesco have to use McKinsey 7's model which is best to link
and related with organisational structure in order to achieve goals and objectives of company.
With the help of this, manager improves communication of employees, increased productivity
and boost innovation.
LO 2
P2 Analysis the different approaches and techniques for motivating employees.
Motivation is important part of the employee life in Tesco or for achieves goals and
objectives of company. There are two types of motivation techniques which are used by HR
manager of Tesco in order to achieve goals and objectives of company (Child, 2015). Those are
financial and non-financial motivation as follows:
Monetary motivation technique
The extrinsic motivation is generated from when employer motivates to employee the
best performance. In this type of motivation techniques employer of Tesco motivate their
employees to acquire new skills and knowledge. For example: employee of Tesco done work
with the best result in this employer give motivation by providing bounces, cash price to their
employees. With the help of this, employees are motivated towards give their hard contribution
4

for achieve goals. But this can give negative impact on employees if employer is not give fair
and performance based price. By this it can give negative and positive impact in employees and
their performance.
Non-monetary motivation
Intrinsic motivation involves engaging of people’s behaviour because it is personally
rewarding, essentially and performing a various activities in Tesco. In this type of motivation
techniques employer motivate their employee by boosting their skills and morale (Hatch, 2018).
For example: if employee done their task with best result of wok, in that employer and HR
manager has to give motivation to them in order to motivate them. For that, HR manager give
best and special comment to them in front of whole staff members and also promote them in
other position in organization. By these employees are highly motivated and their hard
5
Illustration 2: techniques of motivation
(Source: Techniques of motivation, 2018)

contribution for work. Other hand, employer not appreciates them, and then they are de-
motivated and not work done in correct manner. This can affect employer and employee.
Those are the techniques of motivation both are help to motivate employees in order to
achieve goals and objectives of company which are best for Tesco success. The motivation is
supportive and effective in competitive advantage. This will help to give effective and valuable
contribution in competitive era. For example: employer of company is organizing the motivation
program for their employees where they are give appreciation and funds increments to their
employees (Hayes, 2018). By this employees are highly motivated and ready to give hard
contribution for work, when employees are motivated then they are able to give their hard
contribution for face competitive advantage. Other hand, they are not motivated by employer and
manager of Tesco then they are not work in effective manner. By this competitors are gain
advantage with Tesco.
Furthermore, low motivation can create issues for company which are affecting to the
company growth. These can create issues are outcomes of result is not correct, environment of
workplace is not good and competition is generate between employees or can leave office and
company. For that, employer has to give motivation to employees in effective manner by
monetary and non-monetary motivation as per requirement.
Human capital theory
Human capital is best and effective which are assets of organisation they are in form of its
employees. It takes into account values knowledge, skills and experience of employees adds to
organisation. Skills of employees are very important part of organisation because with the help
of this employees are give best performance in organisation which is help to achieve goals and
objectives of company in effective manner. It is the stick of skill, knowledge, habits and social
attributes (Heijnen, van der Velde and Hagelaar, 2018). Human capital theory is highly related
with the study of human resource management in different practices in Tesco.
The main roles of human capital theory are discussed in economic development,
productivity analysis and innovation in company. Human capital can be development in many
ways but that are related with the human skills and values. Ability of employees are measured by
employer by employee performance in that employer give training to employees which are help
to increase ability of employees. The human capital developed growth of organisation in order to
6

achieve goals and objectives of company which are help to management by employee’s
contribution.
Knowledge management
Knowledge management efficient handling of information and resources within company. It
is the process of creating, sharing and using the knowledge and information of organisation. This
help to achieve goals of Tesco in effective manner by hiring best eligible employees for work
(Klopotan, Mjeda and Kurečić, 2018). It is very important to manage by employer and employee
of organisation.
LO 3
P3 Conduct research and use contemporary knowledge to support evidence for emerging HR
developments.
Developing knowledge is very important and essential part of employee life in organisation
in order to achieve goals and objectives of company. A range of skills, experience and
knowledge developed in during research employment which is valued in other contexts. There
are various skills which are highly important and effective for HR development of Tesco
Company. The contemporary research is new concept which is used for done best research skills
that are helpful in future of HR manager. As per the research most important skills of HR are as
follows:
Employee relation
Successful business secure by employer and employee relationship and effective
professional support. With the help of this skill, HR is able to identify and resolve employee
concerns by creating satisfying work environment for employee (Lozano, Nummert and
Ceulemans, 2016).
Worker’s compensation
Worker’s compensation is best skill for performing in Tesco. As per this skill HR
manager of Tesco is able to handle any incident at workplace. Like employee is injured at the
time of work in that role of HR is to compensate against of employee injury.
This skills are linked with global environment of Tesco because each country have their
own culture and rules which has to follows by HR. Like culture of other country is different, in
that HR of company is talk and covey messages to employees by using their country language.
7

These skills are very important and required for HR future. Advanced technology is affect to the
functions of HR practices. Like recruitment and selection is the best Hr practice which is
influenced by technology advancement, because with the help of this they can hire local
employees as well as international skills in manner to achieve goals (Maduenyi and et.al., 2015).
This can impact to the cross culture because every country have technology and software of
work. There are various challenges which are faced by HR which are as follows:
Compliance with laws and regulation
There are various laws and regulations which are different from country to country. This
is the main challenge which is impact to HR of Tesco. For that, it is important to make sure
about the local, state and every laws.
Workforce training and development
Investing in training and development of lower level of employee is other common
problem which is faced by HR of company (Functions of HR for future, 2017). It is very
important to HR manager to train employees in effective manner for better.
Those are the challenges which can face by employer of Tesco by cross culture
differences. This is very important for HR manager to grow their skills and knowledge or make
solutions for those challenges of company. For that, here is recommended to use technology for
research on different HR skills and knowledge.
LO 4
P4 Poster presentation.
Changing environment is impact to Tesco and its decision making process. Decision making is
help to designed and managed changes in organisation either it is local or international changes
and culture. Environment of organisation can impact to business process because take time to
understand those changes in organisation as per requirements (North and Kumta, 2018). In order
to analysis change management here is use Lewis change management theory is as follows:
Lewis change management theory
It is one of the best and most effective change model approaches and it is easy to use and
see the why? This process has three stages which unfreeze, make change and refreeze.
Unfreeze the process where have to need change. This means is analyse every steps
which are currently run in the Tesco structure. The structure of organisation is divided
8

every responsibility of employees in effective manner as per different strategy. This
applies on the upcoming changes which are natural. Like changes in government
regulations have to apply by Tesco by Unfreeze their process.
Make changes is the process where manager of Tesco is learn and tries for understand
those regulations and make changes in their current policies. This will help to make
strategy as per requirements.
Refreeze the changes have effective concept which is fix those strategy and changes that
is made by manager and higher authority as per regulation changes. This process is
circulate in whole staff and share with whole employees.
This is fantastic because it fixed as per business needs and situation. Other hand the
transformational changes theory which is also helps to fix the changes in organisation.
Transformational change theory is best an effective which is shift as per culture of
business of an organisation resulting from a change in underlying strategy and processes which
are used in past (Nurmi and et.al., 2016). This change are includes the radical changes in
business model and often required and necessary changes of company.
New technology is occur transformational changes. Like new technology is introduced in
the company in that manager have to understand the uses of technology and give
instructions to their employee.
Product restructuring is another way of Tesco transformation. In this Tesco is wants to
change in their product. In this manager have to analysis market first because with the
help of analysis market needs they are able to make new product as per requirement.
In the change management HR manager plays important roles which are help to communicate
that change in whole staff members. In this roles of HR manager is to provide best training to
their employees as per requirement and also communicate those changes to them. This is
effective and valuable for employee’s growth factor. Hire best eligible employee for their
company which is help to address those change.
Barriers to change management
Changes are occur in organisation, then barriers are also occur which are create problems
for employees and management. This can occurs by negative attitude of employees and lack of
management support to understand those changes (Tracey, 2016). Poor communication and also
failure to involve employees in change process. By this Tesco is facing various problems in
9

changing products. It is very important to overcome those barriers in order to achieve goals and
objectives of company. Recommendations for overcome those barriers are as follows:
Provide best training to employees.
Use best raw material and technology to reduce efforts of employees.
Collect proper information and convey to employees.
Give proper instruction to employees for better work.
Build proper structure of work and also strategy.
CNCLUSIONS
From the above study it had been concluded that the values or contribution of human
resource to organisational success has very important and essential for business and its growth
factor. It had been concluded that hierarchical structure has helped to divide work and
responsibilities equally in each employees and team members. It had been also concluded that
the motivation has important for attracting and developing skills of employees in order to
achieve goals and objectives of company. There have various skills like employee relation and
workers compensation has important to understand by HR manager for future success off
company. Change environment and management can influence the business and its growth in
that management have to make strategy for solve those changes in effective manner.
10

REFERENCES
Books and Journals
Anderson, D. L., 2016. Organization development: The process of leading organizational
change. Sage Publications.
Banerjee, S. and Srivastava, D., 2017. Innovation, Organisational Structure, and Culture: Its
Impact and Linkage on Organization-A Review. International Journal of Civic
Engagement and Social Change (IJCESC). 4(1). pp.1-22.
Bortolotti, T., Boscari, S. and Danese, P., 2015. Successful lean implementation: Organizational
culture and soft lean practices. International Journal of Production Economics. 160.
pp.182-201.
Brockbank, W. and Ulrich, D., 2016. HR Business Partner model: past and future perspectives:
international waters-HR strategy. HR Future. 2016(12). pp.16-21.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Child, J., 2015. Organization: contemporary principles and practice. John Wiley & Sons.
Hatch, M. J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives.
Oxford university press.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Heijnen, M., van der Velde, G. and Hagelaar, G., 2018. Applying motivation techniques in.
Klopotan, I., Mjeda, T. and Kurečić, P., 2018. Exploring the motivation of employees in a firm:
A case-study. Business Systems Research Journal. 9(1). pp.151-160.
Lozano, R., Nummert, B. and Ceulemans, K., 2016. Elucidating the relationship between
sustainability reporting and organisational change management for sustainability. Journal
of cleaner production. 125. pp.168-188.
Maduenyi, S. and et.al., 2015. Impact of organisational structure on organisational performance.
North, K. and Kumta, G., 2018. Knowledge management: Value creation through organizational
learning. Springer.
Nurmi, J. and et.al., 2016. Relations between autonomous motivation and leisure-time physical
activity participation: The mediating role of self-regulation techniques. Journal of Sport
and Exercise Psychology. 38(2). pp.128-137.
11

Tracey, W. R., 2016. The human resources glossary: The complete desk reference for HR
executives, managers, and practitioners. CRC Press.
ONLINE
Hierarchical organisational structure. 2017. [Online]. Available through:
<https://www.learnmanagement2.com/hierarchical%20structure.htm>
Functions of HR for future. 2017. [Online]. Available through:
<http://www.whatishumanresource.com/human-resource-management>
Techniques of motivation. 2018. [Online]. Available through:
<http://www.yourarticlelibrary.com/motivation/monetary-and-non-monetary-factors-of-
motivation/32391>
12