Organisational Behaviour Report: TESCO's Performance and Productivity

This report analyzes the organizational behavior of Tesco, a major UK-based retailer, focusing on how its practices affect employee performance, productivity, and overall efficiency. It delves into the impact of organizational culture, politics, and power dynamics on individual and team behaviors, examining concepts such as Hofstede's cultural dimensions and French and Raven's power models. The report explores various motivation theories, including content theories like Maslow's hierarchy of needs and Herzberg's two-factor theory, as well as process theories such as Vroom's expectancy theory and Locke's goal-setting theory. Furthermore, it investigates effective and ineffective team dynamics using Tuckman's model of group development. The report concludes with an overview of the core concepts and philosophies of organizational behavior, providing a comprehensive understanding of how Tesco manages its workforce to achieve its business objectives.

Organisational Behaviour

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1Organisation culture, politics and power impacts on individual and team behaviour.............3
LO2..................................................................................................................................................5
P2 Motivation theories.................................................................................................................5
LO3..................................................................................................................................................7
P3 Effective and Ineffective Teams.............................................................................................7
LO4..................................................................................................................................................9
P4 Concept and Philosophies of Organisational Behaviour........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Organisational behaviour is the process through which a business's administration
assesses the behaviour of employees during their operations with the intention to increase overall
performance, productivity and efficiency (McShane and et.al., 2018). This report analyses the
effects of organisational behaviour upon the performance and productivity of UK's grocery and
merchandise retailer TESCO which operates from its base at Hertfordshire, England. TESCO
having been in the retail markets for close to 101 years, having been founded in 1919, has had
ample opportunities to grow and expand its operations to global markets and in the process has
grown to become the world's third largest retail business. Currently, TESCO operates in 11
distinct countries with servicing through 6800 different establishments.
LO1
P1Organisation culture, politics and power impacts on individual and team behaviour
Organisation culture refers to shared values, belief of people working in the organisation
as different people have different culture and preference so firm has to choose such culture that
motivate and influence each individual. It also includes reward system that influence people
behaviour on day to day to work hard for particular goals and objectives. Culture helps in
defining the way employees can work together for achievement of firm objectives. Tesco is huge
firm that hire and select large number of employees on continuous basis that have different
culture and preference. Thus, Tesco use innovative and transparent culture so that employees of
company are highly satisfied and motivated for growth and success of company. Culture and
better working environment condition helps in retaining large number of employees and reduces
chances of absenteeism within Tesco. Firm has defined role and responsibilities, task to be
performed by each employee in order to reduce confusion and overlapping of work. Culture of
Tesco can be explained through Hofstede’s dimensions of culture theory as follows:
Hofstede’s dimensions of culture
This model helps in understanding culture of different people that are living across
different nation thus helps company in forming appropriate strategies and culture to motivate
employees.
Power Distance Index: It explains the extent of inequality and power within firm such as high
power distance index state that culture of organization is highly in-equal as top management only

take various decision (Fandrejewska and Wasilik, 2018). Whereas Tesco has low power distance
index that means manager take active participation of employees in decision-making of firm.
Collectivism vs Individualism: Employees of Tesco work collective within firm in order to
meet demand of customer's quickly and effectively. Individualism is most avoided as it hinder
growth of Tesco in global market.
Uncertainty Avoidance Index: This index of Tesco is high as employee's of firm have strong
interrelationship due to digitalisation and uses of updated technology by company so it helps in
continuous communication and avoid conflict between people.
Femininity vs Masculinity: Tesco uses Femininity dimension as it does not discriminate among
employees on gender, caste and religion basis and focus to maintain quality of products and
services.
Short term vs long term orientation: Tesco focus is to achieve long term goals thus follow
ethic and values while performing various function in order to satisfy needs of employees and
customer's.
Restraint vs indulgence: Firm rewards and recognized performance of individual that have
work hard in previous years thus it motivates them to increase their performance.
Power
It refers to capabilities and ability of individual to influence and impact on operation's
and functioning of company. Power to order other people to work in specific manner so that
goals of firm can be achieved in an effectively manner (Riis, Hellström and Wikström, 2019).
Power divided among employees within Tesco can be illustrated through French and raven
models:
Coercive Power: Such types of power individual is forced to perform specific task in particular
manner thus create dissatisfaction and unhealthy behaviour among employees working in the
firm. It is not used by Tesco as it reduce employee's performance and productivity which impact
on firm profitability.
Reward Power: In such types of power Leader rewards and recognized employees on basis of
their performance and productivity within company. Therefore, motivating individual as well
others employees to work hard in order to be recognize and rewarded. Leader of Tesco motivate
employee's by reward their hard efforts through social media and program organised by firm at
end of year.

Legitimate Power: It mainly depends upon roles and responsibilities, capabilities of individual
to perform specific task thus as per role power of individual within firm is determined to
influence other employees. It is also followed within Tesco as per roles and responsibilities of
individual firm assigned particular task and authority to take decision so that needs of customers
are fulfilled within limited time.
Referent Power: Sometime a person get power by its popularity among people because of it
charming nature while communicating with other employee's. Thus, on such basis leaders get
power to influence people to work in particular manner. Some of the leaders gain powered
through references of other people working in Tesco.
Expert Power: Some people have expert knowledge and skill related to particular job so that
individual uses its knowledge and skill to persuade employees that trust and respect such person.
Leader of Tesco have highly knowledge, skill and experience to perform various activities in
particular manner.
Politics:
It refers to policies and procedure followed by company or various individual that
influence behaviour of employees within firm. Tesco has definite and appropriate policies and
procedure so that people can easily communicate and effectively work within firm so that it can
gain competitive advantages in the industry (Bos-Nehles, Renkema and Janssen, 2017).
Effectively policies encourage new people to come and join Tesco as well as motivate existing
employees to work hard so that firm can enhance its profitability and sales volume. Better
policies had lead to increase in employees satisfaction and retention within firm and increases
their productivity and performance thus helps in growth and expansion of business's across
nation.
LO2
P2 Motivation theories
Employees are the most important resources of company as they help in effective
utilization of other resources of company. Therefore, they need to be motivated and influences
on continuous basis so that they can improve their performance for achievement of company
goals (Simmonds, M., 2018). There are two theories of motivation such as content and process
theory that are used by Tesco in order to influence and motivate employees to work effectively to
motivate employees that are explained below:

Content Theory: It focuses on needs and demand of employees working within firm such as
Maslow and Herzberg's two factors theory to motivate and influence different people within
firm.
Maslow's Hierarchy of needs model: As different people have different needs and preference so
firm has to find appropriate needs in order to motivate employee's to work hard for success and
growth of company. Therefore, Maslow's has classified needs of people into various level such
as:
Physiological needs: It refers to basic needs to individual such as clothes, food and shelter so
manager of Tesco ensures that it provide appropriate compensation to people that they are able to
meet their basic requirements. It also provides various incentives so that individual put that extra
effort for growth and success of firm. Therefore, it is able to attract new as well as existing
employees to work hard for achievement of company goals.
Safety Needs: It refers to safety and security needs of individual thus Tesco takes various
measures to ensure health and safety of employees (Selvarajoo, 2019). Insurance of employee's
is another benefit provide by company to meet requirements of people.
Social Needs: It includes association, friendship and interrelationship between employees as
manager of Tesco has build strong relationship among employees helps in reducing conflict and
creates felling of belongingness. Employee's turnover and absenteeism has been reduced to large
extents as they are highly motivated and comfortable to work as a team.
Self -esteemed needs: After fulfilment of all needs employee's demand for respect and
recognition by other people in the firm. Tesco is able to meet needs of employees by rewards and
recognizing efforts of individual within firm.
Self actualization: It is stage where person evaluates its performance and things that it have
achieved within recent times . Thus, company by promoting employees is able to full fill
requirements of people to work more better so that company can expands its business's across
nation.
Herzberg's two factor theory:
It is classified into main two factors such as Hygiene and motivating factors such as some
factors motivate one employee's but it may not satisfy needs of other employees within firm.
There are various factors such as working condition, policies and rules, regulation, wages of
employees may dissatisfied needs of employees. But recognition, reward and personal

development of individual motivate it work hard for growth and success of firm. Thus, Tesco by
using such theory is able to provide good working environment and culture so that different
employees are motivated to work effectively (McClelland, 2019). Tesco is earning large profit
margin so it has provided attractive compensation and incentives in order to improve
performance of individual. Firm has also recognized and reward hard-working employees so that
other people also make effort to reach such stages and take active part in increasing productivity
and market share of company.
Process Theories of Motivation: Various process theories of motivation assess the behavioural
and psychological factors that Tesco management can use in order to increase the motivational
levels amongst their workforce. Process motivational theories detail how an employee's needs
tend to impact their organisational behaviour and performance. Main process theories for
TESCO to focus on are:
Vroom's Expectancy Theory: According to this motivational process theory, Tesco employee's
motivation is directly dependent upon the choices they make to minimise pain or to maximise
their pleasure (Todd, Jones and Ross, 2019). The theory maintains that an employee's
performance and efforts are closely related to one other and that positive performance should be
rewarded by the management in order to encourage a healthy professional working environment
and to increase workforce motivational levels.
Locke's Goal Setting Theory: This theory maintains that Tesco's workforce performance is
directly related to its management setting challenging but realistic goals for them to achieve. The
clearer the goals are the bigger a boost in performance Tesco's management can record. In order
to improve workforce motivation, management should set end goals that prove difficult yet
stimulate the employee's skills and talent and instil a feeling of success and triumph onto the
workforce upon achieving the set goals and objective.
LO3
P3 Effective and Ineffective Teams
Creation of an effective team within Tesco can have significant impact on its
productivity, performance and efficiency. Tesco's administration needs to focus on Tuckman's
model of group development in order to create an effective team within their organisation with
the intention to increase their performance and efficiency.

Tuckman's Model of Group Development: Tuckman's model can detail Tesco's management of
the general issues and problems organisational team's usually face during their forming,
operating journey and adjournment. It assesses how an effective team matures and develops in
skills, ability, social relationships and leadership approaches and how these affect the
performance and efficiency of a given team (Black and et.al., 2019). Initially the model
described 4 phases that every organisational team has to go through, with Tuckman himself
adding a fifth stage called adjournment later to his model which details the final process when a
team has to dissolve. These stages are:
Forming: First stage of an effective team development which describes team's formation and
resulting dynamics. During this phase, team members are dependent upon the leadership for help
and guidance. Team members are unclear about their personal duties and responsibilities with the
leader having to answer many queries. Team members generally do not agree with each other on
most topics.
Storming: During this phase team members challenge each other in order to dominate the team.
There is some clarity amongst members in relation to their tasks and duties but some still remain
unsure. Conflicts tend to arise and management should expect power struggles within the team's
dynamics.
Norming: At this stage team members start to find consensus amongst each other and have
acclimated properly to their roles and responsibilities. All major decisions are taken together by
the team members and leadership with smaller decisions often being tasked to individuals or
subgroups (Natvig and Stark, 2016). Team's social relationship improves with members forming
meaningful professional relationships.
Performing: Team becomes strategically aware of their progress and responsibilities and possess
a shared vision of end objectives and to achieve them. Leadership provides team members
freedom and allow for creative thinking showing trust in the member's skills and abilities. Team
members aid each other in operations to increase overall performance and efficiency.
Adjourning: Final stage of team development added later by Tuckman details how an effective
team disbands after having achieved their end goals and objectives. Members are valued and
recognised for their work and feel sad to that team has to dissolve having created amicable
relationships.

LO4
P4 Concept and Philosophies of Organisational Behaviour
Organisational behaviour approach encourages Tesco to implement Path Goal Theory
leadership style to its administration approaches in order to increase its performance,
productivity and efficiency. The path goal theory maintains that an organisation with a flexible
approach that changes based on the professional situation in the workplace, shall record better
performance, productivity and efficiency than an organisation with inflexible leadership style.
Path Goal theory approach at Tesco would arm its management with tools necessary to increase
workforce productivity and motivation metrics and can be implemented by:
Directive Leadership: Under this leadership approach, Tesco management informs and instructs
the workforce of their duties and responsibilities and appraises their work progress through
supervision in order to increase the workforce performance and efficiency (Farhan, 2018). This
leadership style is best suited to professional situations where the existing workforce isn't highly
skilled or experienced and need to be guided by the leaders through their professional skills and
experience in order to increase business's productivity and performance. This approach can
reduce workforce motivation and job satisfaction metrics as employees feel undervalued and
increases leader's operational burden.
Supportive Leadership: This leadership approach mandates Tesco's management to take an
active interest in the life of their employees and try to create a safe and healthy professional
working environment in an effort to increase the organization's productivity and performance.
This leadership style is best suited to professional situations which place the employees under
significant emotion, psychological or physical stress and affects their personal lives and
relationships with others. This leadership approach can decrease organization's productivity if
used carelessly as it reduces the leader or manager's ability to flex their professional power in
order to control the situation.
Participative Leadership: In this leadership approach Tesco's leaders need to consult their
subordinates and take in their ideas and suggestions during the decision-making process. This
style of leadership is suited to professional situations where the existing workforce is highly
trained, skilled or experienced enough to contribute to the decision-making process. This
approach increases workforce motivation and job satisfaction metrics but makes the decision-
making process lengthy as it encourages bureaucracy.

Achievement Oriented Leadership: According to this leadership approach, the leadership sets
and informs the employee's of challenging end objectives and goals which they need to achieve.
The management shows trust in their workforce abilities to solve problems and demands the
highest level of performance (Yang and Lim, 2016). This approach is suited to professional
situations where the achievement of a set task or goal is of paramount importance and the way it
is achieved is of little significance, such as sales, research or entrepreneurship.
CONCLUSION
This report analyses the concept of organisational behaviour and its effects on Tesco's
performance, productivity and efficiency. The report assesses the impact of organisational
power, politics and culture on Tesco's performance and employee behaviour. The report then
evaluates various motivational theories Tesco's administration can apply to their operations in
order to increase their workforce motivation. Then the report analyses how Tesco's
administration can create an effective team within their organisation to improve their
performance and efficiency. Finally, the report assesses ways through which concepts and
principles of organisational behaviour can influence employee behaviour to increase
performance and efficiency.

REFERENCES
Books and Journals
Black, S. and et.al., 2019. Team Development Over Time. Organizational Behavior.
Bos-Nehles, A., Renkema, M. and Janssen, M., 2017. HRM and innovative work behaviour: A
systematic literature review. Personnel review.
Fandrejewska, A. and Wasilik, K., 2018. Cultural differences and barriers in communication and
functioning of an international organisation. Handel Wewnętrzny, (1 (372)), pp.203-215.
Farhan, B. Y., 2018. Application Of Path-Goal Leadership Theory And Learning Theory In A
Learning Organization. Journal of Applied Business Research (JABR). 34(1). pp.13-22.
McClelland, S. E., 2019. Single-cell approaches to understand genome organisation throughout
the cell cycle. Essays in biochemistry. 63(2). pp.209-216.
McShane, S. and et.al., 2018. Organisational behaviour.
Natvig, D. and Stark, N. L., 2016. A project team analysis using Tuckman's model of small-
group development. Journal of Nursing Education. 55(12). pp.675-681.
Riis, E., Hellström, M. M. and Wikström, K., 2019. Governance of Projects: Generating value
by linking projects with their permanent organisation. International Journal of Project
Management. 37(5). pp.652-667.
Selvarajoo, K., 2019. Large-scale-free network organisation is likely key for biofilm phase
transition. Engineering Biology. 3(4). pp.67-71.
Simmonds, M., 2018. Instilling a culture of data security throughout the organisation. Network
Security. 2018(6). pp.9-12.
Todd, S. Y., Jones, C. W. and Ross, W., 2019. Process Theories of Motivation Inside Tour
Operations Staff. Case Studies in Sport Management. 8(S1). pp.S52-S55.
Yang, L. C. and Lim, V., 2016. Empirical investigation into the path-goal leadership theory in
the central bank fraternity: leadership styles and job satisfaction (No. wp14).
1

2