PGBM70: Analysis of Tesco's Organizational Performance Report

This report provides a comprehensive analysis of Tesco's organizational performance. It begins with an introduction to the organization, outlining its functions, activities, operations, and business environment. The report then delves into the methodology used to assess performance, emphasizing a detailed analytical approach. It examines the performance management system employed by Tesco, identifying areas for improvement and decision-making processes to enhance performance. The analysis includes a discussion of Tesco's functional areas, operational measures, and the impact of employee engagement on business outcomes. Furthermore, the report offers specific recommendations to improve performance management within Tesco. The study uses various approaches, including behavioral, results-oriented, and quality-focused methods, to evaluate employee and organizational performance. The report also highlights the importance of adapting to changing trends and incorporating advanced techniques for measuring productivity and overall organizational success. It emphasizes the need for continuous improvement and alignment of business goals with human resource objectives to achieve competitive advantages.

UNDERSTANDING
ORGANISATION
PERFORMANCE

Table of Contents
Introduction of the organization with functions, activities, operation measures and business
environment.....................................................................................................................................3
Detailed methodology of analytical approach that demonstrate the critical understanding of
performance measurement...............................................................................................................4
Performance management system used by enterprise with identifies for improvement and
decison making process required to improve performance.............................................................6
Recommendation to bring performance management within enterprise. .......................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................11

INTRODUCTION
Organization performance can be defined as analysis of firm performance as compared to
goals and objectives (Syed and Ozbilgin, 2019). There are core three components as financial
performance, shareholder value performance and market performance. High level of employees
engagement within an enterprise can be linked to business performance, inclusive of increase
profitability, productivity and employee.
The present study is based Tesco, it is global leading enterprise that deals in product and
services of grocery marketing and it is supermarket chain that deals in grocery service.
Furthermore, report will be based on critical understanding on business activities, operations
and business environment. Henceforth, detailed will be given on performance management that
used by entity to identified areas for improvement, decision making to bring improvement. Lastly,
recommendation will be given to bring improvement in organizational performance.
MAIN BODY
Introduction of the organization with functions, activities, operation measures and business
environment.
Tesco plc trading is a British multinational groceries and general merchandise retailer that
has headquartered within Welwyn Garden city, England, United Kingdom. This was founded in the
year 1919. This is the enterprise that deals in varied department as cash & carry warehouse club,
department store, discount store, supermarket etc. Therefore, quoted enterprise mainly aims to
achieving profit, investing, and deals in offering product and services to customers. This has wide
number of stores within the 14 countries across Asia, Europe and North America. Therefore, the
functional areas of the all companies and there are different task that must be carried out regularly
in terms to reach the business and objectives. This is the enterprise that mainly takes the ways to
develop innovative commodities for the customers as this attracts the varied number of the
customers (Rana, 2019).
Therefore, functional area is defined as individual, area, department that carries out the
business functions such as marketing, sales, production and research and development etc. Thus,
main object of having functional areas in business that ensures about crucial activities that can be
carried out effectively and efficiently. The main aim of business activities of the finance department
that is must be record of the business transaction clearly. Therefore, quoted enterprise operations
includes cleaning, shelves filling etc. Therefore, higher management of the quoted enterprise set
differ kind of the objectives that in relations to category of choice, people and price.
Therefore, quoted enterprise employs 286,394 staff within the UK and all over the 460000 at

the worldwide level. In this, to serve the better bigger markets that to well trained staff. In addition
to it, there are at the three values such as value, normal and finest. Current trends of the enterprise
indicates that British customers that move towards one- stop and bulk shopping that due to variety
of the social changes. However, chosen enterprise is defined as consumer centered organization.
Additionally, stated that it is the enterprise that has aggregate market share of 30.5% with ASDA. In
addition to it, there are production components of the Tesco in which activities are service oriented.
Henceforth, this can be stated Tesco is taking various initiatives with terms to gain competitive
advancement.
Detailed methodology of analytical approach that demonstrate the critical understanding of
performance measurement.
Measuring the performance of employees can be defined as backbone to system
management. Additionally, effective approach to performance management leads to bring better
workforce environment (Christensen, 2015). Management defined as process of using resources of
organization to accomplish objectives of organization objectives by conducting the functions of
planning, staffing, leading and controlling in terms to accomplish organization goals. Furthermore,
controlling is termed out as process that guides varied set of variables in order to accomplished
preconceived goals and objectives. Therefore, management control system defined as system that
aids to achieve goals, enhance profitability and it also bring issues such as lack of employees
morale changes can also impact the performance of enterprise.
Performance management is termed out as strategic and integrated approach that assist to
enhance the effectiveness of enterprise by improving performance of the people. There are number
of components that plays crucial role in determining the productivity of employees and also
supports to bring overall organizational development. Effective performance system within the
system helps to bring out the desired workforce and also build competitive advancement. This can
be stated that performance appraisals, performance review and appraisals forms are the effective
terms that aids to carry out the better course of actions within the enterprise. Therefore, organization
needs to undertake the performance management system on the regular basis so that better plan and
actions can be undertake to bring out the better results.
As per the view of Lunsford, Benefitfocus com Inc, (2017) Stated that one of the oldest
techniques of performance management is to behavior approach and this consist of five to ten
vertical scales. This is one of the effective measurement approach that offers specific descriptions
along with frequency in relation to employees. Henceforth, Sylvia, 2015) stated that the another
approach that aids to measure out the performance of the organization is simple and straight

forward concept in which the rate of enterprise employees based on employee performance results.
It is approach that can be defined as the balance scorecard system. Hence, this is approach that is
mainly focus on four perspective as financial, customer, learning & growth and this also helps to
bring better management within organization performance. Therefore, the another method is termed
out as productivity measurement and evaluation system. This is one of the effective technique that
helps to motivate the employees in order to enhance the productivity and helps to measuring out the
feedback.
Additionally, White and Mackin, (2015) stated that the one of the main advancement of this
approach is to convert the plan of action into operational process that bring out the holistic view of
the enterprise. Quality approach is termed out as process that put the major consideration on to
bring improvement in the customer satisfaction with help of reducing the errors and also helps to
accomplishing continuous service improvisation. This is defined as approach that taken into the
consideration with help of undertaking regular feedback of the the employees on the personal and
professional traits of the employees from managers. Enterprise needs to use these approaches that
help together effectively that brings evaluation in the employees performance. Thus, the Tesco
currently focused on result approach system that helps to identify the performance gap of the
employees so that corrective actions needs to be taken so that effective measurements must be
taken. The main aim of adopting this approach is to reduce unfairly cost that incurred by the
company. Within the recent years this enterprising has increased security over the suppliers of own
label commodities.
Thus, employee performance helps to enhance the communication between supervisor and
employees to discuss duties of job and work related issues to conduct the effective and healthy
environment. With the help changing trend, the more recent and advanced technique and
approaches that are needed to be formulated to measure out the productivity of employees and
organization performance. There are strength and weakness of the performance management system
that inclusive of communication, expectation, performance standards that helps to bring positive
working environment. This is the firm that put major focuses on lean manufacturing that helps to
undertakes the activities that helps to maximize the sales of enterprise.
Henceforth, it can be concluded Tesco Plc must be ensure that the stores always maintain the
effectiveness so that the wide ranges of the customers can be attracted. Additionally, this is
considered as to be large enterprise, this has to continuously ensure that the commodities are
available to customers at the better quality. Higher management of the Tesco has varied objectives
in relation to category of choice, people and price of the commodities. This can be said that
performance management is process that is undergoing with the lot of changes across the industries

and companies.
As per the view of Gerber and Roscoe, (2012) stated that traditional performance
management system is inclusive of the establishing the aims early in the years and present it to the
employees who are responsible towards to accomplish it. Thereafter the management works as to
put their core focus to undertake evaluation in terms to meet out the set expectations within the
enterprise. On the other hand, the second approach that used by entity progressive approach to
performance management. This is the approach that leads as to take continual feedback, use
effective method to motivate employees and also helps to enhance the employees learning to
undertake the better course of actions. This kind of the approach can be helpful to bring out the
better course of actions. The effective approaches to the organization helps to facilitates the good
working conditions.
Performance management system used by enterprise with identifies for improvement and decison
making process required to improve performance.
The performance management for the Tesco is as medium that aids to ensure about the
business aims that are meet by the enterprise, Henceforth, the one of the main strategic goals to the
entity is to put their core consideration on employees and organization as a whole. Employee
performance system is termed out as aligning the organization sims with employees, competency
requirement, effective delivery of results and developments plans (Prause, 2018. ). For Tesco, the
performance management system is a place that has an all inclusive process that encompasses the
enterprise strategic that aids to bring effective group performance and competencies objectives. It
mainly put major consideration in terms to accomplish business plan of action and this leads to
create high performance. In order to creates the excellent work and perform the business activities
helps to regulates the better performance management. Effective performance is defined is about the
leadership, interpersonal relation, constructive feedback and teamwork.. Therefore, performance
management is termed out as ongoing communication process that can be effectively between the
supervisor and employees through the year. Additionally business process can defined as formal
and also touches the variety of functions. Therefore, the main following components of the
performance management for the Tesco defined in following context as are-
 Performance planning that is the most top component in order to set the effective
performance system. By planning about the all activities helps to facilitate the more better
working conditions that leads to impacts the profitability and productivity of the enterprise.
 By undertaking the performance appraisal system of the employees the entity can aids to
enhance the employee retention rate and brand image of the organization can be developed

within the market (Imken and Shaffer, 2019).
 The Tesco has adopted the feedback mechanism to undertake and set the better relations
with managers and employees. This is the approach that helps to measure out the gap
between actual and planned performance to take corrective actions.
 The quoted enterprise also make performance improvement plan for the employees and this
is also inclusive if the need, training, coaching and mentoring. It helps to build better
relations with the customers.
 This is the enterprise that also focus over the future or potential appraisal of the employees
that is inclusive of the promotion and future growth plan of the employees to undertake the
better course of actions (Imken and Shaffer, 2019).
The key performance of the performance management system for the enterprise as to
synchronize the need of the business goals with the human resource organization. Effective
performance management facilitate the better working conditions that bring out competitive
advancement. Tesco is to Therefore, performance management system is inclusive of the following
actions as are-
 Goal setting- the right way- The staple of traditional performance system is relate with
centering around goals. At this level, Tesco sets the aims and objectives to accomplish
desired goals (Smith, 2005 Sylvia, 2015). With help of it, the entity need to set the direction
to get long term profitability and productivity. They mainly do this as this creates high
degree of transparency, clarity and impartiality etc. The main aim of the organization needs
to be developed prior so that strategic plan can be made in proper direction. This kind of the
things helps to enhance the competitive advancement within the market.
 Collaboration and communication- In order to set the better performance management
system the Tesco uses the effective motivating components and better communication
strategies that aids to facilitated the better working condition. It is the enterprise that works
as to motivate employees to share information, assist in highlighting the activities in order to
make the individual successful and use them as a references in order to have attractive
workforce (Prause, 2014). It is the enterprise that has large number of the departments to
make the better collaboration this entity needs to take the efforts so that all things can be
done effectively.
 Feedback- To have the effective performance management system in the eyes of the
customer, this entity is taking steps to undertake the feedback from the customers about the
progress of the commodities so that if there is any deviation they takes the corrective action,

this aids to enhance the customer retention rate and also allows to maintain productivity
level of the enterprise (Gerber and Roscoe, 2012).
 Recognition- Effective performance management to the enterprise must be linked to the
recognition. In terms to create the positive sense of achievement that need to care about the
individual who capable to bring effective level of advancement within the enterprise.
 Development- In this, organization mainly puts their core focus on bringing development
within the product and services. In the current scenario, the rate of heath conscious
customers are continuously enhancing to run the organization effectively they needs to
produce healthy products (White and Mackin, 2015). By producing low calories food and
organic food items helps to attract the customers. With help of undertaking development
within the organizational activities helps to bring out the better and effective performance
within the enterprise.
Recommendation to bring performance management within enterprise.
Performance management is defined as the one of effective framework that helps to
undertake better course of actions and also assist to enhance the competitive advancement within
the market ( Lunsford, Benefitfocus com Inc, 2017). On the basis of report, the following measures
to bring effective performance are defined in following manner as are-
 Tesco should take the initiatives to measure and evaluate the current performance of the
employees within the enterprise. This aids to determine the type of employees that firm
required and also defines the type of the recruitment within the organization. By hiring the
right and skilled labor-workforce the entity can able to undertake the all activities effectively
and efficiently.
 The quoted enterprise should take the initiatives to undertake course of actions that helps to
identify the suitable measures and procedures that brings out the better course of action
within the enterprise. This kind of the facilities can increase the profitability and
productivity.
 Tesco should bring innovation in the product and service they renders to customers. By
bringing up effective and creative commodities aids to attract customers. This is an of the
effective technique that can help to maintain the customer retention rate as well as
profitability and productivity.
 Tesco should decide and frame out the strategies that can assist to undertake better future
events. The success of the organization is largely dependent on the plan of actions as this

helps to decide the future course of actions in more effective manner.
 The quoted enterprise should take the steps to facilitate better communication between the
leader and employees. It is the term that helps to build more positive working environment
that creates the positive working environment as all employees within organization works
collaboratively.
 The enterprise should take the initiatives that can based on the high level of consistency that
helps to identifies good and performance. By undertaking evaluation in the proper manner
aids to carry out the whole process within the enterprise in more effective manner.
 The organization should also adopts performance management software that is time consider
and this helps to streamlines the core functions of the enterprise systematically. Henceforth,
the technique as 360 degree method and KPI aids to review the performance of the entity
and this also helps to foster the employees development as this support to run activities
smoothly and efficiently all the times.
CONCLUSION
Hereby, it can be conclude that In terms to undertake the organizational
development the performance improvement plays the crucial process in which the
managers and governing body of knowledge plays the crucial role to bring out the
better performance within the organization. It is termed out as the approach that helps
to improve organization process and also assist to accomplish the strategic aims to the
enterprise.
The present study is based on the business activities of the Tesco, it is global
leading enterprise that deals in product and services of grocery commdities and deals
in supermarket chain.
Additionally, report will cover the following activities as introduction and
overview of the operational performance and business environment of the chosen
organization, analytical approaches to performance management system has been
defined to undertake effective working performance. Thus, better performance
management system has been defined that aids to undertake better decision and
effective performance within the organization.

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