Tesco PLC: Leadership Approaches and Organisational Culture Report

This report provides a comprehensive analysis of Tesco PLC's leadership styles and approaches, with a focus on how CEO Ken Murphy uses these strategies to drive profitability and sustainability. It examines democratic, action-centered, and situational leadership styles within the organization, illustrating their impact on performance and practice. The report also delves into motivational theories like Vroom’s expectancy theory and Adam’s equity theory, highlighting their influence on leadership power and control. Furthermore, it explores Tesco's organizational culture, its functions in guiding employee behavior, and the role of leaders in shaping this culture. The analysis extends to diversity management policies, including anti-discrimination, anti-harassment, inclusion, and equal payroll policies, assessing their effectiveness in managing a diverse workforce and complying with legal and ethical standards. The report concludes that effective leadership is crucial for Tesco's success in a competitive market, emphasizing the importance of employee motivation and a positive organizational culture.

REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Different leadership styles and approaches used by an organisation..........................................1
Analyse the organisational cultural and diversity policies..........................................................4
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Leadership defines as an ability to influence and guide other or a group of followers and
subordinates within an organisation (Goldsmith, Stanton and Reider, 2020). Within an
organisation those person holds the leadership qualities is highly effective to ascend the position
of CEO, Manager in business enterprise. This report is based Tesco plc. that is one of the leading
and famous supermarket company in UK and also having world wide presence. It is British
multinational grocery company headquartered in Welwyn Garden City, England. The CEO of
Tesco is Ken Murphy who works for earning high profitable results within marketplace by using
leadership styles and approaches. To enhance firm profitability and sustainability this leadership
report critically analyse the leadership styles and approaches used within the Tesco by the CEO
Ken Murphy. Further it also examine the organisational culture and several diversity policies
that they holds to attain high market position and maintain positive working culture at
workplace.
MAIN BODY
Different leadership styles and approaches used by an organisation
Leadership style defines as a behavioural concept that leaders of business is to be adopted
mainly to influence the behaviour of followers. It reflects leaders methods that offers directions
to motivate people (
Cukier, 2020). In terms of Tesco plc there are several leadership styles and
approaches are adopted to maintain decorum at workplace so that activities are performed
smoothly.
Leadership styles
In terms of Tesco plc further demonstrated styles are to be used:
 Democratic style leadership- The statement of Sunder Pichai, CEO of Google “diverse
mix of voices leads to better discussions, decisions and outcomes for everyone. As per
this statement leadership is based on taking best decisions with collective approach that
includes employees and leaders. The statement of Sunder Pichai represent democratic
style of leadership that helps in encouraging and satisfying people towards work so that
productive outcomes is to be enjoyed for longer time period. In case of Tesco plc, this
leadership style is adopted where leaders take suggestion from employees on specific
1

goals and make decisions on the basis on those suggestions by choosing best alternative
(Bush, 2019). It impact positively on performance and practice of business.
 Action centred leadership approach- This approach of leadership helps in evaluating the
Faye Wattleton statement “the only safe ship in a storm of leadership”. This statement
shows that leaders offers responsibilities and activities to team members by analysing
potential and skills of individual leader to attain best result. If leaders are not following
this rule while lead subordinates then they cannot satisfy employees due to this
performance of individual is affected. In this style leaders bifurcate the task into team
and individuals so that goals are attained timely (Frasier, 2019). In case of Tesco Plc.
Leader ensures that they done proper communication, motivate workers towards attaining
targets by providing responsibilities as per capabilities. This develops performance of
business for longer time period.
 Situational leadership- To evaluate the Peter F Drucker statement “Management doing
the things right, leaders is doing the right things” is effectively understand by situational
leadership. As per this style theory there is not single style of leadership fit in every
situation. It mainly focus on concept of leadership style that should be selected on basis
of task and situation. In this four several leadership styles are presented that is mainly
used by Tesco Plc to complete the targets on time.
◦ Directive- Within this leaders does not interact with team as they just provide
guidance to perform the action. This situation occur when company trap under some
critical situation which needs frequent response.
◦ Coaching- In this leadership style team get both direction and supportive
environment. It occurs within Tesco when conflicts are raised at workplace (Bartsch
and et. al., 2020).
◦ Supporting- In this style lower directing and high supportive behaviour is presented.
◦ Delegating – It done when company focus on innovative changes.
To effectively understand leadership within Tesco some examples are presented below
using leadership styles and approaches so that performance and practice of company is
improved.
 New product launch- In Tesco plc manager focus on launching a new product where
leaders develops an effective team with directive attributes and strong relationship. In
2

terms of this situation leader of Tesco adopts the coaching style of leadership because
using this style leader effectively exploit the use of team member and make positive
relations between them that helps in launching the new product appropriately within
marketplace.
 Innovation project- Tesco plc is mainly focused on innovation program by regulating
new business strategies (Jackson, 2020). In this leaders hold high power that helps
employees to highly committed towards the team. Within this situation situational
leadership is highly effective to attain desired goals on set time frame.
Theories of motivation that influence leadership power and control
In every business organisation employees satisfaction and encouragement is essential and
to effectively done this companies adopts the use of motivational theory. Motivation helps
leaders to control the activities of employees and show power prominently. Leaders ensures that
they use suitable motivation theory as per company needs and requirements (Hill and Sibbald,
2020). This selection is mainly based on type of leadership style in firm. Some theory of
motivation is presented below that influence leaders power an control in Tesco Plc:
Vroom’s expectancy theory- This theory is presented by Vroom that states that
individual person performance is mainly affected by their potential and pleasure options offers to
them. Therefore, individual employee performance is depends on their own personality,
knowledge, ability etc. This demonstrate three elements of motivation:
 Expectancy- This aspect of motivation represent that individual within organisation get
effective expectancy support. As every employees have different expectation and level of
confidence on what they are capable of doing. This helps leaders to control and handle
the employees on individual basis so that targets are attained efficiently.
 Instrumentality- it is mainly based on perception of employees that helps in clear
understanding the opportunities with the previous outcomes. As per this element leaders
of Tesco plc make sure that their team is clear about what they perform, outcomes and
benefits so that it become easy to hold power by satisfy employees towards working.
 Valence- According to this element leaders exploit true and positive information related
to task so that they get benefits and rewards accordingly. This is to be deliver to
employees after achieving the targets. Due to this employees performance is to be
increased.
3

Adam equity theory
This theory defines that people within organisation maintain fair relationship between
rewards and performance by comparing with others. As per this theory individual make
contributions to attain some rewards. In context of Tesco this aspect influence leadership control
and power. In this leader show their power at the time of allocating task and employees are
accepting it to gain rewards (Tasi, Keswani and Bozic, 2019). This helps organisation to enhance
their operations and profitability.
Analyse the organisational cultural and diversity policies
Functions of culture- In every organisation culture play a crucial role because it depends
on set rules, ethics, regulation, productive environment, motivation etc. in context of Tesco Plc
functions of culture serves a sense making mechanism that helps in guiding employees attitudes
and attributes. It is essential for leaders to develop this function at workplace so that
performance of employees are developed and brand image is maximised.
Organisational performance culture- It shows that environment at which workers in
concerned company accomplish the task by proper coordination and interaction that generate
values, style etc. within this context, leaders of Tesco are highly responsible towards employees
performance and business practice. In this leaders adopts suitable style and approach so that
organisation performance culture is developed and company gain high profitable results.
Leader influence culture – It is true that leaders influence the company culture (Goldring,
Rubin and Herrmann, 2021). If they control and influence employees effectively than culture of
company is to be maintained effectively. Therefore Tesco deals in international market so it is
quite tough for leaders to handle diversifies workforce with dignity, equity etc. To positively
influence the company culture leaders focus on observing the behaviour and attributes of
employees so that they develops the culture accordingly that helps in gaining profitable
outcomes.
Cultural change in the working practices - In an organisation changes are developed
mainly by external factors and according to this leadership styles are motivated. Due to changes
occur in culture working practice of team, leadership approaches and styles are also affected. For
instance- due to pandemic attack of COVID 19 organisation implemented several changes in
business strategies that is used by leaders to maintain position within marketplace. In this
4

situation leaders of Tesco focus on adopting situational style leadership so that workers are
satisfying and accepting change effectively due to which business practice positively.
Analysis of Diversity management polices and impact of the external environment along with
leadership decision-making
Therefore current market condition is regularly develops with the concept of global
business. Tesco is working on international level due to this they have diversify nature of
employees based on local and foreign country (Rosen and et. al., 2019). Therefore due to this
company composed different nature employees that are related to ethics, culture, gender, place.
To manage and control diversify business environment it is very essential to focus on eliminating
conflicts that is essential to manage diversify policies so that leaders take decisions effectively
and analyse environment properly.
Anti discrimination- Mainly political and legal factors influence leaders decision making
due to this policies related to team management is affected. In terms of Tesco business leaders
coordinate with rules and code of conduct of employment so that culture and performance within
organisation is maintained. In this anti discrimination policy is followed by leaders in Tesco to
support equality in diverse environment. Company adopts this policy helps in generating
valuable results in terms of performance and efficiency.
Anti harassment- Every business organisation should focus on workplace anti harassment
policies by connecting changes rules and regulations of Alberta Human rights act. As per this
law no individual within organisation can harass from their seniors and colleagues. This helps in
generating positive and friendly environment in diverse employee environment. This helps
leaders to take decisions that does not harm any employees so that performance of workers are
developed in company favour.
Inclusion policy – Therefore business organisation having diversify employees and to
maintain the motivation and positive relationship leaders of Tesco develops the inclusive policy
by including several interested policies and programmes. The inclusion policy involves diversity
celebration, aid of several festival celebration. In this leaders focus on developing policies using
technological factors because it is useful to understand the different culture effectively and useful
for leaders to make decisions and facilitates guidelines for team members so that they enjoy
every culture festival effectively.
5

Equal payroll policy- As per this legislation company set salary of employees according
to changing guidelines based on wages and salary (Cummings and et. al., 2020). To keep the
employees satisfy leader focus on managing equal payroll policies by developing clear decisions
as per changing law. By implementing this policies clear information helps in preventing the
issues related to salary.
CONCLUSION
From the above report it is to be concluded that leadership within organisation is presents
as an effective angle in relation to success of company within competitive market position. This
report helps in understanding the leadership term effectively and efficiently because in this report
use of leadership models and styles are done that helps business enterprises to complete the
targets on time and in sustainable manner. Leadership within organisation is works when
employees are getting proper motivation from manager. Therefore getting motivation is leaders
to hold power and control prominently. Further in this report impact of leadership on company
culture and diversity is demonstrated within Tesco that helps in considered and follow high
quality culture at workplace.
6

REFERENCES
Books and Journals
Bartsch, S. and et. al., 2020. Leadership matters in crisis-induced digital transformation: how to
lead service employees effectively during the COVID-19 pandemic.
Journal of Service
Management.
Bush, T., 2019. Models of educational leadership.
Principles of Educational. Leadership and
Management, pp.3-17.Cukier, W., 2020. Return on investment: Industry leadership on upskilling and reskilling their
workforce. Public Policy Forum.
Cummings, G.G. and et. al., 2020. The essentials of nursing leadership: A systematic review of
factors and educational interventions influencing nursing leadership.
International
journal of nursing studies, p.103842.
Frasier, N., 2019. Preparing nurse managers for authentic leadership: A pilot leadership
development program.
JONA: The Journal of Nursing Administration,
49(2), pp.79-85.
Goldring, E., Rubin, M. and Herrmann, M., 2021. The Role of Assistant Principals: Evidence
and Insights for Advancing School Leadership.
Wallace Foundation.
Goldsmith, L.T., Stanton, J. and Reider, D., 2020. Building State Capacity for Leadership in K-
12 Computer Science Education: A National Summit. Evaluation and Research
Report.
Education Development Center, Inc.
Hill, J. and Sibbald, T., 2020. NCTM VIRTUAL LEADERSHIP REPORT.
Gazette-Ontario
Association for Mathematics,
59(2), pp.54-55.
Jackson, C.J., 2020. Transformational leadership and gravitas: 2000 years of no
development?.
Personality and individual differences,
156, p.109760.
Rosen, C.C. and et. al., 2019. Boxed in by your inbox: Implications of daily e-mail demands for
managers’ leadership behaviors.
Journal of Applied Psychology. 104(1). p.19.
Tasi, M.C., Keswani, A. and Bozic, K.J., 2019. Does physician leadership affect hospital quality,
operational efficiency, and financial performance?.
Health Care Management
Review,
44(3), pp.256-262.
7