Various Theories of the TESCO Company


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To manage people and staff properly in an organisation is very essential so as to properly manage the activities that is being carried out in an organisation which help in achieving the success and growth of the organisation (Baines and, 2013). This report is based on the topic of managing people in an organisation and it is based on the case study of Tesco. They are the multinational grocery and merchandise retailer. The main aim of the report is to develop the skills and knowledge that are needed to manage people successfully in an organisation. Various motivation theories that are practised in Tesco will be analysed so as to learn that how these theories help in managing the people in an organisation. Its advantages and disadvantages will help in effective implementation of the theories. There are also different managerial and leadership style that exist in the mentioned company which helps in developing good leadership styles, which is required by company for the administration and management of people. Several factors has also been analysed which influences the behaviour of the particular individual. This is needed for the effective and efficient teamwork in an organisation, so that the various activities that is being carried out in an organisation can run smoothly with the coordination of people (Basu, 2014).

Background of TESCO

Jack Cohen who is a market stallholder and sell groceries in London, alone started a Tesco in 1919. He merged with T.E. Stockwell from whom tea has been purchased by him to sell it on stall. The first store of the Tesco was opened in 1929. From that time, Tesco has expanded itself in the world. Currently it has 2200 stores which includes the hypermarkets and Tesco Express outlets which are there to meet the needs of various customers around the world. Tesco also offers the alternative services and goods to its customers which includes banking services, insurance and online shopping. Its net profit is around £3.4 billion which has made it the largest retailer in British and has the leading retail outlets on three continents. It has the worldwide workforce of 468,000 employees (Botha, Bussin and De Swardt, 2011)

For the support in the growth of Tesco, it needs such staff which is flexible, motivated, well trained and who will be able to identify needs of the customers. Support to the employees of the Tesco is also given regarding their different roles and levels like support from customers in stores to department manager, from logistic staff and warehouse employees, it has been recognised by Tesco that for the growth of the company, employee motivation is very important.

Motivation Theories

Motivation relates to motivating the employees by giving them incentives such as rewards and praises.

Maslow- Hierarchy of Needs

The Maslow need hierarchy theory was given by Abraham Maslow and he said that human beings are motivated in Tesco on the basis of five needs that are essential for the human beings. He made a pyramid in which he defined the five basic needs that are needed and are called 'hierarchy of needs'.

The Basic or the Physical needs of Tesco includes the place of the work for the employees, the pay scale of the employees and the facilities that are essential for the employees such as lockers for the personal belongings of the employees.

The security/safety Needs of Tesco includes the formal contract of the employment of the employees and the security of the pension and the sickness scheme for the employees. It also insure the safety and the healthy work environment for the employees at the workplace (Basu, 2014)

The social needs of Tesco include the promotion of the various group and team working at various levels. The wheel that is designed for the company access on the individual and the group works and it also ensures that the members of the store staff work and coordinate in a team. The working conditions of the employees encourages them to work for long in the service.

The Self Esteem needs of Tesco emphasis on the concept of self respect for others and themselves in the organisation. The self assessment of the employees as to encourage them towards the work. The appraisal of the employees and the 360 degree feedback for the employees them them to know that how much an individual had devoted towards the work and its achievement and to praise him for the initiative taken by the employees and the celebration of the achievement towards the company.(Bush and Middlewood, 2013.)

The Self actualization Needs of Tesco offers the plans for the personal development of the employees in the organisation. The recognition of the talents and the skill of the employees, the plans for the career development of the employees. The decision of the career leads to planning of the meetings at Tesco. The fast track management programmes are held to offer the capable staff with the specified knowledge to reach at the higher level and to achieve success.

Advantages and Disadvantages of Maslow Theory


  1. The theory can easily be applied in the organisation.
  2. There are higher growth needs in the organisation are appeared to be uniquely human.


  1. There are certainty in some issues that makes the theory difficult to apply in organisation.
  2. The people in the organisation will not be motivated by the goals that are at the higher level in the organisation.

Herzberg- Two Factor Theory

The herzberg theory was given by Frederick and he gave two theories that applies to the factor of motivation. He divided his theory in the two factors as Satisfiers or Motivators or the Hygiene Factors (Coventry and et. al., 2011). The satisfiers factors deals with the employee's achievement of their work, their recognition at the work place, the responsibilities of the employees towards the work and the factors that are responsible for the promotion and the growth of the employees in the organisation. The hygiene factors include the job security, personal life of the employees and the present status of the employees and in the contrast these factors created dissatisfaction among the employees if these factors were absent. The dissatisfaction can be removed by improvements in the hygiene factors but these factors alone could not provide the motivation to the employees in Tesco.

The herzberg theory reveals that to motivate the employees the should create the conditions that are essential and important for the employers to feel satisfied at the work place.
Tesco aims that the motivation of the employees can be by both the factors that are the satisfiers and the hygiene factors (Fisher, 2011.)

Example: If the employer of the organisation motivates his employees by continuous feedback about the work done and delegating the authority and the responsibility of the employees and also involving the staff in the decision making processes. This shows that the employer at Tesco recognises the work done by his employees and reward should be given to the employees for the work done by them.

Advantages and Disadvantages of Herzberg Theory


  1. The factors that demotivate or motivate the employees at the workplace are controlled by the managers of Tesco.
  2. It includes the broad issues that need to be managed or addressed in general.


  1. The theory is based on interviews of the employees by the Experts or the engineers.

Adams- Equity Theory

The Adams theory of Tesco focuses on the equal distribution of the resources between the employees of the organisation. The equity is measured in Tesco by measurement of the contribution and the benefits of the employees in the organisation. The equity theory focuses on the concept that the employees should bring equality between the input and the output they received. The inputs includes all those factors that they brings at the work place and the output will be as the desired results of the input (Bush and Middlewood, 2013). The equity can motivate the employees at the workplace because he is being treated equally in the work place, fairness is maintained in the organisation as there will be no personal bias in the organisation, strong relationships will be maintained between the co-workers and the overall employees of the organisation. The structure of the equity is based on the level of the inputs and the desired output by the employees in the organisation. The inputs indicate the contribution that are made by the employees towards the organisation.

Advantages and Disadvantages of Adams Equity Theory (Stark, 2015.)


  1. The retention of the employees for long term in the organisation.
  2. The equity motivates the employees towards the achievement of the goals for the organisation.
  3. The equity helps in attracting the talents of the employees at the workplace.


  1. The inequality at the work place de motivates the employees of the workplace ans as a result they does not work well to achieve the goals of the organisation.

Leadership Styles

Managers manage the process, ensure control and stability and always tries to solve problems quickly. Leaders, in contrast tolerate disorder and lack of structure and understand the issues more effectively to solve problems. Organisations require both leaders and the managers to get successful, but to develop both them it needs the different strategies and focus in favour of the environment so that it will be helpful in the growth of the business (Bourne, 2011). In Tesco, both leaders and managers are there that contribute in the success and growth of the company. Managerial culture in a company helps in emphasizing the control and rationality. The energy of the manager are directed towards the resources, goals, people, organisation structure and a manager is there to solve problems. Leadership, on the other hand, must have a control on himself or herself so as to control others, he or she should be practical which will be helpful in managing work and people in an organisation.

There are various managerial and leadership style that is being practised in Tesco for the improving the reputation of the employees and for the effective management of the employees so as to keep them motivated for achieving the goals and the objectives (Bush and Middlewood, 2013). These styles are vary essential as they play main role in the success of the organisation, with the help of these styles, managers and the leaders of the Tesco can improve the way to manage people which will eventually help in the increased productivity. One of the most interesting thing about these styles are that the managers and the leaders by having flexibility in the styles will be able to get best and effective outcomes from their staff and employees. These styles are not about the right wrong or good bad, these styles depend on the task, situation and people to be managed.

Management Styles

Directive Style: In this style of management clear rules and objectives have been set up for the subordinates and it is being ensured that the directions and the expectations are defined clearly and made understood. It includes that the employee should do it in a way which is told by the manager, it helps in controlling the employees and the motivation is done by threat and discipline (Clark, Silvester and Knowles, 2013).


  1. It is very effective when there is a crisis or disputes.
  2. It is practised when the deviations are risky.


  1. In this style employees are not developed and they have very little learning.
  2. When the employees are having high skill then due to this style they become resentful and frustrated because of micromanaging.

Authoritative Style: In this style procedures and the policies have been dictated by the managers to their subordinates, decisions are being made on the achievement of goals and objectives, and the control & direction is being given to the activities without any participation of the subordinates. In this the manager have full control on team and leaves low autonomy in the group (De Souto Barreto and, 2015).


  1. In this the manager is firm but fair.
  2. Clear direction has been given to employees.
  3. Motivation is through encouragement and the feedback is given on the performance of task. 


  1. Employees are generally underdeveloped, they guidance on everything what they are doing.
  2. If the leader will not be credible than the employees will not follow the vision if the don't have a belief in it (6 Management Styles and When to Use Them. 2017).

Leadership Styles

Strategic Leadership Style

Strategic leadership style can be defined as the potential of the manger so as to make strategic vision and mission for an organisation, or for a part of organisation. This type of leadership helps to motivate employees for achieving the vision that has been made. It can also be said as the utilization of the strategies for the administration and management of the employees. It defines the leader's potential to influence change in the organisation (Dworzynski and, 2014). They create the structure of the organisation, helps in the resources allocation and defines strategic vision. The aim of such leader is strategic productivity.


  1. It helps in the effective motivation and control of the employees.
  2. It is about perception, inventiveness and planning which assist the individuals in the realisation of the goals and objectives.


  1. It is not at all effective when there is no coordination between the employees.
  2. It will not work properly if there will be a crisis, because then there will be no time for meeting.
  3. In this close supervision will be required for the effective implementation of the strategies (Edmonds, 2011).

Cross-Cultural Leadership Style

This kind of leadership helps in understanding how the people from different culture communicate with each other. Cross cultural leadership has developed many ways which helps to understand leaders who work in the globalized market. Organisation require such leaders who will not have any difficulty to get adjusted in the different environment quickly and can work properly with the employees and partners of different cultures. There are two types of leadership style across culture and these are transactional and paternalistic. In paternalistic style of leadership there is a combination of strong discipline and authority . It refers to the hierarchical leadership in which interest has been taken by leaders in workers personal and professional life. Transactional leadership is defined as charismatic leadership that includes employees to achieve a common goal with support and enthusiasm (Fisher, 2011).


  1. Employees are competent and highly motivated.
  2. It helps in working with people of various culture.


  1. It is less effective when the workload wants support from others.
  2. It is also not effective when coordination, coaching and development is not there.

As a line manager of the company, it have analysed that these are the managerial and the leadership style that is being used in the Tesco for the management of employees. On the basis of above comparison it is being suggested to the company that the best management style for the Tesco will authoritative style, because in this policies and procedures will be clearly defined to the employees so that there will be no problem regarding the communication of goals and policies which are based on the various policies (Hotho and Champion, 2011). For example if a company wants to take a new project for its growth and for that the team has been made, for the effective implementation of the project a responsible manager will be required who will be able to manage its team properly by clearly defining the goals and objectives related to the project. If it is been talked about the leadership style, then it is recommended that the best style for this will be strategic style and cross cultural both , because these styles will help in making various strategies in a company which will be helpful in the achievement of goals and objectives. Strategies will also be there for the management of the employees (Dworzynski and, 2014).

In Tesco there are many employees who are from different region and culture, in such case, cross cultural leadership theory will be very helpful as it will help in understanding the people of different culture and will also help to maintain coordination among people. For example, suppose a company wants to make a new idea for attracting customers of different culture, then this style will be very helpful for analysing the needs of people from other culture, with the help of it idea will be generated according to the customers need so as to satisfy them.

Effective Teamwork

Teamwork can be defined as the coordination and cooperation between various people who are working together for a particular task or activity (Kramar, R., 2014). It is basically understood as the willingness of the people's group to work with each other for the achievement of the common goals and objectives. Teamwork is the very crucial part of the company or business as it is generally important for the employees to work together and effectively, and it helps in the better productivity of the company. There are several characteristics of a effective teamwork in Tesco, which helps in creating the productive team in an organisation:

Commitment to a Goal: A team is basically formed to accomplish a goal. An effective team is committed to complete a goal with the help of team resources. It does not mean that people in a team share same point of view, it means that the when the goal is defined to a team, they come together and work solely to complete task (Lewis, 2012).

Participation: In an effective there should be a participation of everyone to create a solution. Each and every member is responsible for the success of the team and when the task is being assigned to a team, every member know about its responsibility.

Open Communication: There is the open and effective communication between the members of the group or team. Issues in the team can be handled by the face to face communication. Members of the team has respect for each other and they do not talk on each other's back, which involves the open communication on various issues.

Decision making: An effective team has a system of decision making that helps it to respond effectively and quickly in all situations. The group members are respected for the various areas in which they are experted, and it the ability of the group leader to have opinions of the group members for the formulation of the various decisions (Manville and, 2012).

Efficient and Effective Use of Ideas: Brainstorming is the way by which groups come with the solution of different problems. An effective team will gather information from the different team members and will use that information in the process of decision making. More effective and efficient ways will be used by the organisation for the better performance of the various activities.

Organisation are formed on the basis of individuals, who are engaged in some activities to achieve common goals and objectives. Their behaviour can be affected by the environmental and innate factors (Marin-Lamellet and Haustein, 2015). In the case of Tesco, there are many factors which influence the individual's behaviour and also affects the working in an organisation in many ways.

These key factors which influence attitude of an individual can be defined as:

Personal Factors

Physical Characteristic: These are those characteristics which are related with skin, height, shape, size, weight etc. All these factors have impact on the individuals performance. It is said that eyes betray person's character, certain ideas that can be formed like slim and tall people expected to dress well and behave in good manner and fact people are of jolly nature.

Age: The relationship between the job performance and the age is issue in increasing job performance. Young people are innovative, ambitious and energetic whereas old people are less adaptable and conservative. There is declination in the performance as age increase because people have less stamina and memory (Parry and Tyson, 2011).

Gender: The traditional view was like man are tough and woman are very emotional and thus there is a difference in the performance of the job. Gender has impact on absenteeism, woman because of many household work remains absent from the work and it impacts there performance.

Religion: Culture based on religion and religion plays important role in the determination of the factors which influence individual behaviour. People who are very religious have high moral like they are honest.

Marital Status: Marriage put many responsibilities on people and thus it affect the working of an employee, for them job become very important and valuable. They have less absenteeism, more satisfaction from job and less turnover.

Personality: It does not mean physical appearance, it is considered as the dynamic concept which describes the development and the growth. It refers to the personal traits like aggressiveness, dominance and various qualities which reflects the behaviour of the person.

Ability: It defines the capability and capacity of the person to perform task in job. It is of two types intellectual ability and physical ability. If individual perform mental task, he should have intellectual ability which includes the aptitude, perceptual speed etc. Whereas physical ability includes stamina and strength to perform job (Pryjmachuk and, 2012).

Intelligence: It is an inherited quality of an individual which affects the performance of an individual in Tesco. It can be enhanced with the hard work , effort and motivation which will increase the performance of an individual.

Environment Factors

Economic Factors: These kinds of factors consist of several things like level of employment which includes the job opportunities, wage rates which is the major consideration for each and every employee, general economic environment and the technological development.

Socio-cultural Factors: The social environment includes the relationship with the friends, supervisors, colleagues and family members. Need of the work ethics, reward expectations and the values are the cultural factors which have impact on the behaviour of the individual (Renz, 2016).

Political Factors: These factors affect the individual's behaviour in indirect way by various other factors. The country's political ideology affect the behaviour of the individual by relative freedom which is available to the citizens. If the country will be politically stable then there will be steady employment level and capital investment will be of high level.

Legal Environment: These includes the various rules and regulation, which is enforced by the law system. Laws are in relation with the members of the society, for e.g. murder is crime which is punishable by law. Observation of the laws voluntarily help in predicting individuals behaviour.
Organisational Factors :

Physical Facilities: Physical environment includes the arrangement of people at the workplace so that the people will have positive influence. Factors which influence the behaviour of individual are heat, noise level, cleanliness, nature of job etc.

Organisation Design and Structure: It is concerned with way in which organisation's departments are set up. It includes the reporting system , communication lines on different level of organisation. The behaviour of the individual is influenced by how person fits in the organisation (Sorensen and, 2013).

Leadership: The leadership system has been established for providing assistance, coaching and direction to individual in Tesco. The behaviour of the individual is influenced by the behaviour of the leaders and superior.

Reward System: The performance and the individual behaviour is also influenced by the reward system which is established by the organisation so as to give compensation to the employees. 

Effective team is very necessary in an organisation, which helps in the achievement of goals and objectives. There are various factors which affects the working of a team in an organisation. It is necessary to analyse the factors that influence the effective team working. A team that works together understands the weakness and strength of each team member. One of the benefit of the strong and effective team work is that because of the effective team leaders and the members become very proficient in dividing tasks so that they can be done by the experts and the qualified people (Stark, 2015). Team-working provides the efficiency to the working and develops a system that helps in achievement of the tasks effectively and efficiently. If the working will be there in team then it will also help in the developing various new ideas and plans for the efficient working, when the team works together, staff member feel comfortable to give various suggestions. There are many challenges each day in an organisation, if there will be a strong team then it will provide support to the staff members, which will help increasing the performance of the employees and will improve the development.

There are five factors that affect the effectiveness of the team in Tesco :

Individuals: A group is being formed by the individuals, and if the individuals will be dedicated and aware of their roles and responsibilities for the accomplishment of the goals and objectives of the organisation, then that kind of group will be very effective. It is necessary that all the members of the organisation should share the accomplishments of the group, and the enthusiasm related with the group activities (Stone, 2013).

Group Size: It is difficult to determine the group size but the size of the group depends upon the complexity of the problems which should be addressed by the group. Small groups are more effective and efficient from the large ones. It has been recommended that in Tesco, to solve complex problems, high quality decisions has been required, so there should be a group of seven to twelve members. When the consensus in the situation of the conflict is important, then there should be three to five members. When both the consensus and the quality are important then there should be five to seven members in a group which seems appropriate.

Group Conditions: These can be defined as the informal guidelines regarding the code of conduct and behaviour that give various orders to the operations an the activities (Tansley, 2011). These guidelines should be followed by each and every group member, it helps in learning that the behaviour of the individual are very necessary to make operations in a group effectively. These group conditions may include the performance, attendance, dress code, interpersonal interactions etc. Rewards can also be given to people who follows the group norms properly, to those people, leader should listen to them in respectful manner and they can also be made group leaders. A group can also take action against those who do not follow the group norms. They can get expelled from the membership group (5 Factors Affecting Team Effectiveness In An Organisation. 2016).

Synergy: It means that two plus two gives five, to achieve effects related to the synergy, the collective performance must be there to give better and effective results. For this it is very necessary that there should be right people in a group, managers should recognise that such kind of group will help in bringing synergism in regards with power of the market, technology and operating skills.

Leadership: To have a effective team it is necessary that there should be proper leadership and the managerial activities in the company. Formal groups have supervisors and the managers as their leaders and the informal group chose their leaders with the help of consensus. In both the groups the leadership quality influence the quality of the group. The leader should have patience, he should be knowledgable and respectful. A proper guidance should be given to a group and helps in supporting the group in not just achieving the organisational goals but also helps in the achievement of group and individual goals in a group (Thomson and Thomson, 2012).

Cohesiveness: It refers to the strength and degree of the interpersonal attraction among the different members of group. When there is high degree of cohesion then it is highly motivating as it helps in the achievement of the various goals. It is identified by the attitudes like group loyalty, friendliness, group norms etc. The extent of the cohesiveness is based on many factors, which includes the compatibility of the group and individual goals. When the more and more members are attached with each other and there are more group align with the goals of individual, then there will be more group cohesiveness.

The factors of the effective team and the factors which influence the individual behaviour should be taken into consideration by the managers of the Tesco, which will help in forming the effective team in a company and with the help of that company will be able achieve desired goals and objective that is being made in a company. If these factors are not considered by the Tesco then they will lack in making the effective team in an organisation (Zou and Sunindijo, 2013).

Findings And Recommendation

From the above report, it has been analysed that the Tesco should take care of the various theories and strategies which is required for the management of people in an organisation. To manage people properly is very necessary as it help in motivating them, and also increase the productivity in a company. It is analysed from the report that Tesco is making use of the motivational theories like Maslow need hierarchy theory, Herzberg two factor theory and Adams equity theory for motivating the people in an company. They also use various managerial and the leadership styles like strategic and cross cultural leadership style. These styles of leadership help the managers and the leaders of the company to practice leadership properly in an organisation. In Tesco, there are various teams that has been mad in for the effective working, various factors which help in influencing the individual and team factors is also analysed for increasing the productivity in the company.

It has been recommended that the company must also follow the democratic style of leadership, which will be very helpful in the promoting leadership activities. With the help of leadership style company can take various suggestions and recommendation from the employees in relation with any idea or plans. Preference to the employee's suggestions will be given which will help in motivating them and they will feel their identity in the company. This will help in managing the people of the organisation effectively and efficiently, and will also improve the productivity of the company which will help in the growth and goodwill.


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