With the assumption that you are a line manager working for the given company, you have been asked by senior management to prepare an essay to be used as guidance and further development for other junior and less experienced employees on the following topics:
1.Identify and explain at least three motivation theories relevant to Tesco. The answer should include theoretical explanation of each of the theories, application of the provided theories on the given company and supported by use of different examples, identification of advantages and disadvantages and followed by recommendations for the company.
2.Compare and contrast between two different managerial and leadership styles relevant to the given company providing their main advantages and disadvantages, use of variety of examples from the given company/ and other relevant, and followed by recommendations for the company based on the comparison.
3.Identify several factors influencing individual behavior as well as effective teamwork supported by relevant examples from the given company. You are expected to include concepts/theories/models delivered in the module as well as application on the given company. Provide recommendations for the given company based on the findings.
Harvard referencing system should be used (Citation and references list at the end). The quality and credibility of references provided such as relevant text books, annual reports, and relevant journals are expected to be included in the assignment.
Tesco began in 1919 with one man, Jack Cohen, a market stallholder selling groceries in London. TESCO was formed out of a merger with T.E. Stockwell from whom he purchased tea for sale on the stall. The first store opened in 1929.
Since then, Tesco has expanded across the world. It now has over 2,200 stores including hypermarkets and Tesco Express outlets to meet different customer needs. As a conglomerate Tesco also offers alternative goods and services such as insurance, banking and online shopping. With net profits of around £3.4 billion Tesco has become the largest British retailer and one of the world's leading retail outlets on three continents. Tesco's growth has resulted in a worldwide workforce of over 468,000 employees.
To support its growth, Tesco needs staff that are motivated, flexible and well-trained and who recognize customer needs. In turn, Tesco's employees are supported by the company in their various roles and at different levels - from customer assistants in stores to department managers; from warehouse employees to office and logistics staff. Tesco recognizes that employee motivation is important for the continued growth of the company.
With increasing competition, every organization is looking to initiate innovative strategies for maximizing the utility of the resources. Appropriate use of all the internal resources allows organizations to improve the effectiveness of the operational procedure. Moreover, it also help to minimize the cost associated with the operational procedure, which eventually help to achieve competitive advantage in the market (Chuang, Jackson and Jiang 2016). It has enhanced the significance of using appropriate leadership style within the workplace, as it can help to keep all employees motivated towards their roles and responsibilities. The report aims illustrate the strategies initiated by one of the most popular retail organization of the entire globe Tesco. The report will focused on highlighting the significance of keeping the entire employee motivated towards their responsibilities for avoiding any type of operational challenges. For that reason, the report will include different motivational and leadership theories for highlighting the success factor of Tesco. In addition, the report will also focus on highlighting the significance of using effective teamwork technique for achieving all the business goals and objectives. The report has also focused providing effective recommendations for maximizing the impact on the overall business procedure.
Tesco represents a British general merchandise and multinational grocery that has focused on establishing its presence in the global market. Tesco was established in the year of 1919, with the objective of providing variety of products under a single roof. Presently, Tesco is the 9th largest retailer in terms of revenue and 3rd largest in terms of profit. The organization has achieved immense success from the beginning due to its high quality products and innovative customer services. Currently, Tesco has 6,553 stores located in 8 different countries, which established its success in the global market. The revenue level of Tesco was accounted around £55,917 million that is around 6% higher from previous year (tescoplc.com 2017). Increasing popularity of online sales platform has induced Tesco to make its footstep in online selling procedure as well. Tesco has made a conscious effort to keep all the employees motivated and satisfied with the provided responsibilities, which has allowed organization to keep comparative advantage in global market.
As per the article by Skudiene and Auruskeviciene (2012), keeping the motivation of the employees at the desired level is essential for completing all the requirements of the operational process in an effective manner. Over the years, several studies have been conducted on identifying the best possible way to keep the employee motivation at the optimum level. Tesco has also focused on initiating different strategies for keeping the employee motivation intact. Maslow hierarchy of needs, Herzberg two factor theory and Adams equity theory are most popular theory developed on the employee motivation subject. Tesco’s initiated strategies of keeping the employees satisfied are illustrated as follows:
Maslow theory illustrates hierarchical needs of the individuals for keeping them satisfied and motivated towards specific goals or objectives (L?z?roiu 2015). The theory has highlighted five needs including psychological, safety, love and belonging, esteem and self-actualization needs that every organization should focus on keeping all the employees motivated towards the responsibilities.
Psychological needs reflect the physical requirements of any individual for survival. Now, management of Tesco has always focused on providing best possible benefit and support services to all the employees so that they can lead a healthy life (Graves, Sarkis and Zhu 2013). The management of Tesco has made a conscious effort in maintaining all the rules and regulation of minimum wage law for providing maximum support to the employees.
The second step of Maslow theory is the safety needs where individuals look for satisfaction and physical safety from any accident or natural disaster (Boswell, Colvin and Darnold 2012). Now, in order to keep the safety needs of the employees, Tesco has focused on introducing advance technologies so that it can minimize the probability of accident at the workplace. Moreover, Tesco has also focused on providing medical insurance to all the employees and their family members in order to keep them motivated towards the provided responsibilities.
Love and belonging:
Third level of Maslow theory focuses on love and belonging needs of the individuals. As described by Dobre (2013) every employee looks for support at the various stages of their professional career for fulfilling the requirements of the organization. Now, management of Tesco has always focused on providing effective support to all the employees so that they feel an integral part of the organization. Tesco consciously provided employees the opportunity to become an integral part of the decision-making procedure for fulfilling the love and belonging needs of the employees.
Esteem needs reflects the individual needs of keeping the self-respect and self-esteem at the desired level. Improper fulfillment of esteem needs can induce individuals to suffer from inferiority complex within the workplace. It can hamper the overall performance level of the organization (Rajhans 2012). For that reason, Tesco has always focused on measuring the performance level of all the employees in order to recognize hard work of the employees. Moreover, it also allow Tesco to identify training needs of a particular employee or group of employees, which eliminates any possibility of inferiority complex at the workplace.
Self-actualization reflects a situation where individuals able to understand their full potential (Manzoor 2012). Now, internal strategies of Tesco have always focused on providing specific atmosphere to all the employees so that they can able to work to the best of their potential. In fact, timely training and development program has allowed employees of Tesco to go beyond their present capabilities, which ensures success of the organization in future.
Herzberg has mentioned that organizations need to focus on utilizing hygiene and motivators comprehensively for maintaining the motivational level of the employees at the desired order. Herzberg theory has mentioned that individuals are not satisfied with the fulfillment of lower order psychological needs at workplace. In fact, employees look for the gratification of the higher level needs in order to keep them motivated towards the provided roles and responsibilities (Muogbo 2013). Now, management strategies of Tesco has always focused on providing best possible support services so that employees do not feel demotivated about their roles and responsibilities.
Maslow Hierarchy of Needs
Herzberg motivators include factors like recognition, challenging work, opportunity to perform important task, responsibility, involvement in decision-making process that can have major impact on the overall motivation level of the employees. Now, Tesco has always focused on measuring the performance level of the employees to understand the exact potential of each of them (Basford and Offermann 2012). As a result, it has allowed Tesco to provide recognition and responsibilities in an appropriate manner. On the other hand, Tesco’s leadership structure has always focused on providing enough opportunities to the employees to share their perspectives about the crucial decision-making procedure. For that reason, it has allowed Tesco to maximize the utility of the motivated workforce for completing all the responsibilities associated with the business procedure.
It includes salary, job security, working condition, fringe benefits, vacations and paid insurance, as it can also encourage employees to perform all the provided responsibilities in an effective manner. The management of Tesco has developed clear and specific guidelines for the employees that they need to maintain at the workplace (Korzynski 2013). As a result, employees able to understand the kind of activities will be considered as the punishable offence. Otherwise, Tesco reflects a very strong brand, which is likely to achieve continues success in global market as well. Therefore, it assures employees regarding the working condition and job security aspect.
As mentioned by Vaitkuvien?, Balvo?i?t? and Stoškus (2015) Adams equity theory focuses on employee perspective of keeping balance between input and output at the workplace. It highlights the fact that the amount of support and guidance employers will provide to the employees, the performance level of employees will be equivalent to the input. Thus, Adams equity theory emphasizes on the fact that employers will have to be extremely careful at the time of selecting the amount of investment it will make on the wellbeing of the employees. Now, management of Tesco has always focuses on keeping the employees satisfied and motivated towards the provided roles and responsibilities. For that reason, it has consciously developed fair working atmosphere where each of the employees are provided with equal treatment. It has also focused providing such working environment where employees can able to interact and trust with each other (Vaitkuvien?, Balvo?i?t? and Stoškus 2015). It has allowed Adams Equity theory to keep the employees associated with the organization for longer timeframe, which eventually created positive impact on the overall performance level. The equity theory has mentioned that if employees can keep their flexibility and adaptability at the workforce, it will result as recognition and other employee benefits. Therefore, it will keep the employees satisfied and motivated towards their provided roles and responsibilities.
As described by Avolio and Yammarino (2013) leadership is another critical aspect of achieving success within the workplace. However, there is no clear-cut way of using effective leadership style for fulfilling all the requirements of the operational process. For that reason, organizations focus on developing innovative leadership strategies for maximizing the utility of the available resources in a comprehensive manner. Tesco aims to develop unique leadership style for keeping their position in the global market. Over the years, different theories and models have constituted on leadership styles. The leadership styles of Tesco illustrated as follows:
Herzberg Two Factor Theory
As illustrated by Shanafelt et al. (2015) strategic leadership reflects the ability of leaders to influence other to make decisions voluntarily for ensuring long-term success of the organization. Leadership approaches affects the mission, vision statement of the organization, and eventually direct the path where organization is moving forward. Appropriate use of strategic leadership concept is extremely critical for the organizations to deal with the changes in the operational procedure. Now, Tesco have gone through several changes in the operational process for keeping the position in the market intact. For instance, introduction of online selling or e-commerce sector has completely revolutionized the way retail activities are conducted in the global market (Choudhary, Akhtar and Zaheer 2013). However, appropriate use of the strategic leadership has allowed Tesco to introduce online selling platform successfully. Therefore, evolution of e-commerce sector has not affected the sales volume of Tesco significantly.
As per the article by Bucolo, Wrigley and Matthews (2012) strategic leadership activities are conducted based specific principles. Firstly, it focuses on distributing the entire responsibilities among the entire workforce. Now, leadership style of Tesco has focused on providing specific task to individuals so that everyone can perform their responsibilities effectively. Moreover, it has also allowed Tesco to provide job as per the specialty of the employee, which has increased the effectiveness of the operational procedure. Secondly, strategic leadership focuses on remaining honest with all the provided information so that employees can perform all their responsibilities without facing any confusion. The leadership strategy of Tesco has always focused on providing accurate and on time information. The organization always publishes its key financial numbers so that employees can understand the current situation of the organization (Choudhary, Akhtar and Zaheer 2013). Thirdly, strategic leadership style of Tesco has also focused on developing long-term plan for countering all the probable challenges in an effective manner. The utilization of long-term planning has allowed Tesco to identify all the threat factors appropriately, which is likely to create positive impact on the overall business procedure (Goh, Chan and Kuziemsky 2013). Moreover, Tesco have used strategic leadership style for structuring the organization in such way so that it can able to create a systematic procedure for the successful completion of all the activities associated with the operational procedure. Therefore, it has helped Tesco maintaining the position in the market comprehensively (Hollander 2013). Moreover, strategic leadership of Tesco has focused on identifying further business opportunity for maximizing the sales volume in the global market. For instance, the management of Tesco is looking to identify the suitable market apart from the present eight countries in order to reach maximum number of customers for enhancing the sales volume.
As per the article by Bass (2013) present competitive business environment has encouraged organizations to include employees from different culture in order to fulfill all the requirements associated operational procedure. Therefore, leaders often have to face challenges associated with maintaining diversified workforce. For that reason, effective use of cross cultural leadership style has allowed Tesco to utilize employees from different cultural, educational and geographical background comprehensively. As defined by Beheshtifar and Roasaei (2012) cross cultural leadership styles allows organizations to deal with global customers comprehensively, which is likely to create positive impact on the overall business procedure. Over the years, several theories and concepts like Hofstede cultural dimension and leadership across culture has been developed for highlighting the significance of including people from different cultural background for enhancing the effectiveness of the operational procedure. Hofstede cultural dimension has emphasized on the effective inclusion of people from all the background in order to keep the employees motivated towards the roles and responsibilities.
Adams Equity Theory
Tesco’s cross cultural leadership style has focused on developing appropriate atmosphere where4 employees from different cultural background can able to work collaboratively. For that reason, the management of Tesco provides enough opportunities to the employees to share their thoughts and perspectives among each other. As a result, it has helped to create strong bonding among the employees, which is reflected on the overall performance level of the employees. As described by Vaccaro et al. (2012), cross cultural leadership styles best go with the transactional leadership where managers implement give and take approach with the employees. As a result, it helps organizations to become culturally rich that will create positive impact on the overall operational procedure. Now, the vision statement of Tesco illustrates that it want to be the biggest organization in the retail sector across the globe. For that reason, it will have to focus on including employees along with different culture within the organization so that it can able to create maximum impact on the operational procedure (Von Krogh, Nonaka and Rechsteiner 2012). It has induced Tesco to focus on using transactional leadership approach in order to deal with the challenges in the global market comprehensively. In addition, appropriate use of transactional approach will also help the organization to position itself uniquely in the global market, which will help to get close to all potential customers.
As per the article by Parris and Peachey (2013), appropriate use of teamwork enables businesses to achieve all the goals and objectives more efficiently. As a result, it allows organization to stay ahead of all other competitors in the market. The business strategy of Tesco has focused on developing effective teams or departments based on their specialties in order to ensure all the employees working in the organization are happy with the provided responsibilities. Appropriate development of team allows organizations to minimize challenges at the time of initiating any changes in the operational procedure. For that reason, management of Tesco has look to initiate several strategies so that the bonding among all the employees remains at the desired level. Firstly, the leadership style of Tesco has focused on enhancing the relationship among the employees in an effective manner. For that reason, it has developed effective cross-cultural communicational structure for ensuring employees understand each other perspectives in an effective manner (García-Morales, Jiménez-Barrionuevo and Gutiérrez-Gutiérrez 2012). Secondly, Tesco focuses on enhancing the present accountability of each member with the team so that it can encourage employees to give their best at the workplace. In order to increase the accountability of a team, managers of Tesco has conducted several seminars and other parties where employees can able to talk about their personal lives as well. It has helped Tesco to increase the level of bonding among all the employees in a significant manner. The organization has never faced challenges associated with employee rigidity at the time of initiating any changes in the operational procedure. In fact, majority of the time employees have accepted the change readily as new challenge in the workplace, which has created major impact on the overall effectiveness of the business procedure.
Managerial and Leadership Styles
The above illustration has highlighted the fact that all the strategies initiated by Tesco has created desired amount of impact on the business procedure. It has not only allowed organization to keep the entire workforce motivated towards the provided responsibilities of the operational process but also encouraged them to take additional initiatives for the betterment of the business procedure. However, still some areas are present where management of Tesco will have to focus on improving even further for becoming the most successful retail organization of the entire globe. For instance, Tesco needs to conduct quarterly assessment program of employee performances instead of yearly, it will help to keep employees on their toes at all time. Therefore, it will allow Tesco to handle any complex market related challenges in an appropriate manner. Tesco will also have to conduct different program across departments so that people working in different departments can able to understand each other perspectives well. It will allow Tesco to increase the coordination among departments significantly, which will eliminate the probability of any confusion within the operational procedure. Moreover, the management of Tesco will have to assess the changing needs and wants of the customers in global market continuously in order to make necessary adjustment in the business procedure. Otherwise, it will be very difficult for the organization to keep its position intact within the global market. To conclude, it can be mentioned that effective utilization of internal resources is an important aspect of achieving success in the market.
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