Tesco's Performance: Influence of Organizational Structure and Culture

This report examines the influence of organizational structure and culture on Tesco's performance, highlighting the interplay between hierarchical structures, task-oriented and role-based cultures, and their effects on employee behavior and overall business outcomes. It analyzes how a hierarchical organizational structure at Tesco enhances productivity through clearly defined roles and responsibilities, while also acknowledging potential drawbacks such as impacts on financial performance due to ineffective structure implementation. The report further explores how Tesco utilizes task and role-based organizational cultures to foster teamwork, accountability, and employee engagement, ultimately contributing to improved performance. Additionally, the report discusses various internal and external factors, including leadership, culture, personal life, environmental conditions, and organizational structure, that significantly impact individual behavior within the workplace, emphasizing the importance of a positive working environment and effective leadership in driving employee motivation and organizational success. The analysis concludes that a well-defined organizational culture and structure are crucial for Tesco's success, creating a positive work environment and enhancing business performance.

1 – Organizational structure and Culture

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Describing how organizational structure and culture can influence the organizational
performance.................................................................................................................................2
How different factors can influence individual behavior............................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In this competitive era, most of the businesses are implementing different strategies in
order to improve the overall performance of a company. Similarly, the present study also assists
to shed a light upon importance of culture and structure within a business and its role over the
performance. The chosen firm for this report is Tesco, which is one the top retail organization
who deal at different sectors in order to sustain a brand image. For that, the report will describe
how the organizational structure and culture affect the organization performance. Along with
this, the report will also analyze different factors that affect the individual behavior within a
quoted firm.
TASK 1
Describing how organizational structure and culture can influence the organizational
performance
Organizational structure is that system which outlines different activities that are directed
in order to attain the define goals of a firm. Thus, the activities include rules, roles,
responsibilities etc. There are different organization structures that opted by the businesses as per
their work like hierarchy, functional, matrix and flat structure. Tesco follows the hierarchical
organization structure where positions and roles, responsibilities are divided into many parts in
order to ensure about the work is done efficiently and smoothly (Rassa and Emeagwali, 2020).
Also, many results show that there is a positive impact identified upon using appropriate
organization structure. Such that the productivity of employees enhanced by using hierarchy
organization structure because each roles and responsibilities are divided in each department so
that there will be no interference within the inter-departments. This in turn helps to attain the
defined goals of a company by using effective resources so that it creates a direct impact over the
business performance.
In addition to this, Hongal and Kinange (2020) explained in their study that due to strong
management hierarchy, company can easily manages policies and procedures. As a result, it
helps to encourage standardization and mechanization which in turn helps to improve
productivity. In the context of chosen business, it can be also stated that each roles and
responsibilities are divided equally. This in turn helps to improve the overall performance of

employees and makes them motivated as well. Further, with the help of hierarchical organization
structure employees will easily reach towards a senior positions and due to top to down structure,
they can easily improve their own performance. On the critically note, it has been identified that
due to adopting wrong organization structure, company’s financial performance got affected.
Along with this, the sales as well as profit affected due employee’s performance. So, it has been
identified that there are both positive as well as negative impact identified upon organization
performance due to structure.
Apart from this, it has been identified that a poor organization structure has a direct
impact over the employee performance such that there will be low productivity and less
delegation of work where managers did not take centralized decision (Chausoy and et.al., 2021).
Thus, it can be stated that organization structure plays an important role in the success of a
company as well its financial performance.
Organization culture defined the way to behave within an organization and it consist of
different shared beliefs and values that are established by leaders and further communicated
through different methods as well as shape up the employee’s perception. Thus, it also plays an
important role in the performance of a company because having a positive culture always leads
to cause a direct impact over the business performance (Hussain and Talpur, 2021). Also, it helps
in increase retention and elevated productivity which means that employees can meet the defined
goals. However, on the other side, within organization culture, there may be an ethical dilemma
due to which cultural leadership may be regarded as an imposition of culture. So, having a
positive working environment within a business may also lead to high engagement in an office.
As per the Handy’s culture model, it has been identified that there are four types of
culture which a business can be followed which include task, role, power, person. In the context
of Tesco, it uses task as well as role as an organization culture (Handy model of organization
culture, 2021). Such that under task, organization formed teams in order to attain the targets and
also solve critical problem. Also, in such organizations individuals with common interest can
come together in order to accomplish the defined goals so that all the employees can equally
contribute. Further, this in turn reflected that with the help of this organization culture,
employees are consider themselves as a part of corporate environment and it creates a positive
impact over the employee performance. On the other side, through such organization culture,

company is able to improve the productivity and all the businesses goals are supported so that
performance of Tesco can be improved.
In addition to this, with the help of role as an organization culture, each employee
delegate role and responsibility as per their specialization so that they can extract best out of it
(Oppermann and Nault, 2021). During this type of working culture, it has been examined that
employees are willingly accepted the challenge and that is why, each individual is accountable
for the work which has already assigned to them. Therefore, power comes with responsibility in
such work culture so that employees may enhanced their working performance. Raub and
Borzillo (2020) also examined that strong working culture always drive a force to improve the
performance of an employees. This in turn also contribute to raise the financial performance of a
company because it enhances self-confidence that reduce the job stress and improve ethical
behavior as well. So, it can be stated that organizational commitment has also positive effect
over the job satisfaction and company’s performance.
Besides this, employees who live by organization’s culture will definitely improve the
financial results. Further, a strong organization culture contributes to productivity and
performance so that it increases a firm’s value and make decision for the welfare of a business as
well. That is why, Tesco opted two strong organization culture which helps to improve the
performance of a company. Also, it has been identified by Church and Waclawski (2020) that
there are many factors which includes total quality management, business process re-engineering
that definitely influence business performance. That is why, culture as a predictor of short term
performance, but there is a strong relationship between each other. Also, there are positive
relationship identified between financial performance and organization culture because it plays a
promoting role in the organizational success. Thus, it can be stated that there is a positive and
negative impact identified upon the business performance due to culture. So, to minimize the
negative impact, there is a need to implement strategies that does not cause any negative impact
over business performance.
How different factors can influence individual behavior
In the context of behavioral approach, there are different factors that affect the overall
performance of an employee. Also, individual behavior refers to the way in which individual
react as well as behave at their working place. Therefore, behavior is considering one of the

greatest influencer within a workplace. This may include internal as well as external factors that
affect the overall behavior of the employees that may cause direct and indirect performance of an
employees. These factors are as mentioned below:
Leadership: Managers and leaders are recognizing as one of the top factors that affect the
behavior of an individual. Also, it is the responsibility of a leader in order to understand the
behavior of employees so that it does not cause direct impact over the business performance
(Bravi and et.al., 2020). Thus, having a right mentor within a workplace will always assist to
provide correct direction for team members. On the other side, if the leaders are not inspired their
employees then it causes opposite impact over the behavior of an employees. That is why, it
included under the factor that have a direct impact over the behavior of an employees.
Culture: It is another factor that affect the behavior of an employees at workplace. It is so
because workers always need to feel comfortable at the working area in order to stay ahead and
feel happy towards a work. Also, rules and regulations should not be varied from person to
person so that employees will be automatically encouraged. This is possible when there is a
transparency at all levels, otherwise it causes affect the employee behavior at negative manner
(Khan and et.al., 2020). Moreover, having a strong and positive working culture at Tesco will
also provoke employees to improve the performance and attain the defined aim. This further
assist to create a sense of strong relationship with the employees for a longer term and retain the
employees as well.
Personal life: It is another external factor that always affect the employee’s behavior,
such that if the family background is problematic then it affects the behavior of a worker at
inverse manner (Factors affecting employee behavior, 2021). That is why, employers must
understand that they should provide proper space so that there will be no clashes between
personal as well as professional life. Apart from this, it is also necessary for the employees not to
share any personal problem at workplace, otherwise it affected their behavior in adverse manner
(Prasetyo and et.al., 2020). This is because conflicts in personal life always lead to stress and
irrational behavior that affect the working environment. Overall, it further contribute to affect the
working performance of a business in negative manner and this in turn cause adverse impact
upon their both personal and professional lives.

Environmental factors: this factor also have a direct impact over the employee
performance. This factor might include employment level, wage rate, economic environment or
political factor that somehow indirectly affect the overall performance of an employees and can
switch their employee’s mood as well. For example, monetary compensation is the key factor
under wage rate that might affect the behavior of an employee. That is why, effective tools and
efforts should be taken in order to make employee feel motivated so that effective results can be
generated (Elhoushy and Lanzini, 2021). Apart from this, due to stable economic and political
factor of a company, individual develop different opportunities that helps in the steady job
positions. This in turn helps in their career progression and job designs that makes them happy.
Organization structure: It is another influencing factor that affect the individual
behavior in both positive and negative manner. Such that behavior of individual is depending
upon the hierarchy structure where jobs and responsibilities are assigned for each other
employees. This in turn promotes them to perform the work in an effective manner so that
performance of a company did not affect (Takhsha and et.al., 2020). In addition to this, by
adopting the flat structure, limited employees may work and this in turn affect their motivation
level. Therefore, it has been examined that with the strong organization structure, employees can
easily improve their working performance and this in turn generate the best outcomes for the
company as well.
Overall, it has been analyzed that there are different factors which affect the individual
perception and views. That is why, it is necessary for the company to make action immediately
while findings any factors cause negative impact over the business performance. This is so
because it helps in play effective role in the business performance and provide strong working
environment to their employees as well.
CONCLUSION
By summing up above, it has been concluded that organization culture and structure plays
a crucial role in the success of a company. Such that with the help of effective organization
culture, company provide a strong working environment and this in turn causes positive impact
over the business performance. Further, it has been also summarized that hierarchical
organization structure assists to improve the overall performance of Tesco. Apart from this, it has
been also summarized that there are many factors that also affect the individual behavior which

includes organization structure, environmental factor, personal life, culture etc. Therefore, it is
necessary for Tesco to understand the factors that might affect the overall performance and
develop strategies to improve the same.

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