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Organizational behavior is a combination of study that analyzes attitude and employee understanding level and their behavior in different situations. It also reflects how managers and leaders can motivate their followers for better productivity and organizational development. The present is thus made with an attempt to ascertain different organizational cultural and structural aspects along with need of diverse leadership theories and styles. Furthermore some managerial styles are also mentioned which impacts behavior of employees and directs them to work in adequate manner. The research is based on in-depth analysis of Tesco which is a largest retail organization in UK market with 320,000 employees all around the world. Reward is playing crucial role in managing motivational needs of employees and this also results in employee retention, thus the concept is being mentioned in the present study. Later effectiveness of teamwork and management of change has been included. Tesco has been facilitating innovation and creativity in the business with many techniques which all are mentioned in the study. Lastly the has briefly evaluated dissimilar approaches to organizational decision making along with an assessment of management approaches to risk and uncertainty in decision making.
Leadership theories are essential in Tesco since the business is working on a broader scale and also due to large pool of people employed in Tesco. The theories of leadership can be categorized into many ways such as trait theory, participative theory, contingency theory, situational theory; hence amid all such theories, Tesco has been using some which are mentioned as under:
Trait theory: Trait theory of leadership states that leader posses some inherent traits which leads him to become leader in the organization. However on the other side these traits can also be build in a leader through personal observation, guidance and training. As per the views of Allport (1965), personality and capability of leader defines his traits and ability to lead (Skinner, 2013). The author has also given many criteria for matching the traits of leader. On Allport’s study, some authors supported that leadership is a unique characteristic which needs to be observed by psychological changes in behavior of leader.
Situational theory: Hersey Blanchard here stated that leaders needs to develop coordinative relationships with followers so that to develop mutual understanding with them. Here leaders must ascertain the ways through which proper delegation of authority and management of work processes can take place. The leaders must change the way of managing people and it should be based on different situations (Richards, 2013). This type of theory could assist the leader of Tesco to manage different situations in suitable manner and the chances of conflicts and disputes between subordinates and leaders can be minimized.
Participative theory: Likert has given participative theory in which higher authorities must involve employees of different departments in decision making process and here proper coordination is must (Bhatt, 2002). The particular theory is highly suitable for motivating and encouraging employees to produce better results for higher productivity.
Managerial styles are similar to leadership styles since it assists firm to increases organizational capability. With the help of different managerial styles, manager of Tesco is able to manage workforce engagement in different practices and this is also the adequate way to motivate and encourage employees for optimum results (Hiriyappa, 2009). The categories of managerial styles are segregated into following manner:
Autocratic: As per autocratic style, manager of Tesco maintains decision making process in hierarchical manner and usually the style avoids taking guidance from other employees. The style is sometimes considered as ineffective due to man norms and foundations. In such type of managerial style, subordinates only get supervision from their manager and that is also mandatory to follow (Miner, 2012). Manager is the only responsible person that manages the entire workforces and work processes. The style is highly useful for financial and other departments of Tesco since it manages work processes in adequate manner.
Democratic: In this approach, employees of Tesco are allowed to give their opinions and suggestions but the responsibility remains with the manager (Pirraglia, 2013). The manager although allows subordinates to present advices and opinions but instead of that, he himself is accountable to undertake final decisions. As apparent from the name, prior to reach towards any decision, it is required for the manager to consult all his subordinates.
Laissez faire: The subsequent style is considered as the most effective way of managing people and this also assists in improving the morale of workforces. The subordinates in the style can plan and schedule their actions and duties as they are allowed to work freely. They can use the resources as per the necessity of the job roles; however doing so requires authority from managers (Guzman, 2013). As per this theory, Tesco can undertake critical business actions integrated with employee efforts. The main advantage of using this style is to encourage the employees for better productivity.
Motivation is a crucial step which should be there in the firm so that workforce can manage their work accordingly. With the help of different motivational theories, Tesco can analyze at what level of satisfaction the employee is on.
Maslow’s theory of motivation: The theory is based on different hierarchical needs and employee satisfaction can be rated by putting the employee on specified pyramids. The manager needs to provide basic amenities to the workforces since it is the first need that generates hierarchical pyramid (Riley, 2012). Afterwards Tesco has to provide safety, security, social, self esteem and self fulfillment needs. The person can move to next level only in the case if he has satisfied subsequent need.
Herzberg two factor theory: Herzberg theory states that there are basically two factors which motivates or dissatisfies individuals i.e. hygienic and motivator factors. Tesco has been emphasizing on both the aspects so that productivity of employees and organization both can be maintained. The business has been retaining many employees by liberalizing the company policy and regulation, proper salary and remuneration practice, effective supervision, ensuring job security to employee etc. Hence with the help of Herzberg theory, Tesco has been eradicating all those forces that lead to employee dissatisfaction. The theory has been applied in the organization with help of taking advices from different managers.
Elton Mayo theory: The theory of Elton Mayo states that managers need to maintain greater communication and good teamwork in the organization for augmenting productivity level (Denton, 2006). Theorist believed that there should be creativity and innovation amid the work processes for making the employees highly efficient. This also eradicates feeling of boredom which is crucial for organizational development.
Social relationship and interaction is must in the business and Tesco has been using different theories for the same purpose. Managing work relationships in adequate manner helps Tesco to boost coordination and team work within the business:
Social learning theory: The theory is entirely based on learning ability of employees and how well he interacts with other members of business (Booth, 2004). It has been observed that effective work relationship can be developed strongly by observing other’s way of working. The theory is crucial for the subsequent organization since it creates learning environment amid employees.
Power theory: Power theory can also be used by Tesco; however here employees need to build up good relationships with each other (Booth, 2004). Here the leaders and managers both must develop collaborative relationships with the peers. Thus all such efforts develop not only greater interaction, but also it augments organizational productivity.
Social constructivism theory: Social constructivism theory works for enhancing problem solving skills by social interaction with people. Here employees work in coordinative manner so as to get appropriate solution for managing good relationships at workplace (Smith, 2003).
Organizational structure refers to the technique and way of delegating authority and duties to all workforces of an organization. And as apparent, the categories of organizational structure can be divided into different types such as divisional, functional, geographical and matrix. Amid all the mentioned styles, Tesco has been managing organizational processes with hierarchical structure where in the top management is liable to take all the decisions for employee upliftment. It is the structural aspects of Tesco that helps the business to maintain disciplinary acts in the business and at the same time that also assist in maintaining work processes in adequate manner (Bhatt, 2002). Hierarchical structure is effective since through this, employees are maintaining only ethical and legal practices in operation.
Culture reflects the mentality, work ethics and values that a company follows so as to provide a fair and suitable environment to the employees. Hence it is essential for the firm to maintain eco friendly environment at workplace so that all can perform their job roles adequately. Amid all the cultural categories, Tesco has been following normative culture where employees are requisite to follow all the rules and regulations since it depicts standard of the business. This is the way through which employees have been maintaining coordination and team work and thus it develops opportunities for competitive advantage. The roles and responsibilities of employees are concise and clear and they have to maintain job standards.
Structure and culture both are important as well as influencing aspect of an organization and the impact of these terms changes the performance of business simultaneously (Analoui, Doloriert and Sambrook, 2013). The major aspects that affect the performance and productivity of Tesco are communication, leadership and work environment and all get influenced by the structural and cultural aspects. It is the cultural that helps the business in determining organizational structure and it manages different processes and activities. Since Tesco is following hierarchical structure where in the power lies to only superior level, so here the company’s culture likely reflects freedom and autonomy at lower levels which further changes the mindset and behaviour of employees and thus posse’s impact on organizational productivity. In many cases, it is being observed that culture plays crucial role in affecting the motivational degree of workforces.
Being a largest retail firm, Tesco has been using different approaches for decision making process which are mentioned as under:
Simons bounded rationality: Here Tesco focuses on long term planning for meeting corporate objectives. It is highly useful in economics field since it showcases feasibility of decisions.
Incremental bargaining model: This emphasizes on social and political forces so that decision can be taken in structured manner. With the help of subsequent model, Tesco is able to diagnose problems in decision making process (Miner, 2012).
Well managed model: Well managed model states that organization has taken crucial decisions for business growth and success and it also facilitates proper management.
Tesco has been using diverse approaches for risk and uncertainty management which is also significant for employees since it safeguards workforces from health hazards (Denton, 2006). Employees are provided with training and coaching session so that they can accurately deal with different techniques and mechanisms. Prior employing any of the employees at workplace, the managers and leaders guides them about their job roles and protective measures. The business has undertaken risk assessment process whereby it identifies the areas that are concerned with risks and hazards. For performing job roles appropriately, employees of Tesco are provided with all sorts of amenities which also prevent them from danger and risk. Hence adoption of risk assessment methods has been reducing the degree of accidents and apart from that it increases concern of organization towards employee benefit (Marques, 2007). Appropriate support is being provided to all the employees wherein they are accountable to share ways of doing work processes which in turn reduces errors and uncertainties from organizational activity.
Tesco is the largest retail organization in UK market and the firm has been taking all the decisions in adequate manner which further assists in enhancing market share. The business is emphasized towards effective practices which can be seen by its customer base and also by customer loyalty ratio. All the decisions are accurately taken by the top management with the coordination of all the employees. The organization is concerned towards its employees as well as for the customers and hence for such purpose, several policies and strategies have been developed. Managers of Tesco direct all the employees to undertake only ethical and legal practices into account so that business sustainability can be enhanced (Latham, 2007).
It has been observed that in order to retain employees, Tesco has developed many sessions for enhancing efficacy of employees and that helps them to get recognition from the management. Moreover for customer benefit, the firm has maintained a legal policy where in employees must follow all the legal rules and framework. Hence from the above discussion, it is evident that Tesco is undertaking effective decisions and that also aids in acquiring competitive advantage. Effectiveness of decisions can be analyzed by looking towards the management practices. In all situations, the management considers interest of employees which results in employee satisfaction (Hoffmann, 2007). Risks are managed in adequate manner at Tesco with the help of certain policies and strategies. This also reduces the chances of accidents and employee interest can best be managed into workplace.
From the above research, it can be evaluated that leadership and management both are crucial aspects of organization and both changes behavior of employees. From the present research, it is clear that Tesco is managing change processes (mergers and reorganizing) in adequate manner.
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