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    Leadership Styles And The Motivational Theory Of TESCO

    University: The College UK

    • Unit No: 3
    • Level: Diploma
    • Pages: 12 / Words 2891
    • Paper Type: Assignment
    • Course Code: BMA701
    • Downloads: 585
    Question :

    There are many types of organisations and each have different operations. The operations of the organisations are planned according to the goals that the organisation is planning to achieve.

    The manager of the business development is planning a workshop on “Introduction to Business” to help young people in setting up their own businesses. You are required to prepare materials for the same. For this, you are required answer the below mentioned questions with the help of TESCO company.

    • Explain different types of organisations, its structure and their impact on the business environment.
    • Explain accounting importance, functions of the HR department along with the key features of the employment legislations.
    • How to interpret the accounts of profit and loss.
    • Analyse the role of team leaders and the employees in an organisation and also explains the stages for the development of team.
    • Explain leadership styles and the Motivational Theory.
    • What are the impacts of customers’ service on the success of business and state the benefits a business has of Customer profiling.
    Answer :


    There are different types of organisation in private and public sectors and their organisational structures are also different. Various economic environment factors affects the business. H R department of an organisation has many functions such as recruitment, selection, training, compensation, etc. Accounting plays an important role in the success of a business. Through different motivational and leadership strategies company can motivate their employees. Customer service and satisfaction have an impact on business success.

    TASK 1

    AC 1.1 Types of organisations in UK

    Business organisation refers to an individual or a group of persons working together to achieve the same commercial interest (Ward, 2016). Below described are some of the types of organisations found in UK :

    • Sole Proprietorship: Sole proprietorship refers to that business owned by only one person. Owner faces unlimited liability, quick decisions are made and all profits go to sole proprietor.
    • Partnership: Business owned by two or more persons is known as partnership. Partners contributes resources, capital, skills and workloads.
    • Franchisee: Licensing arrangements where an individual or group buy the right to sell or produce under a well known brand.
    • Private sector: It is an business enterprise which is run by the private individuals or groups.
    • Public sector: An organisation owned and operated by the government.


    Sole Proprietorship



    Private Company

    Public company


    One owner

    2 or more partners



    Shareholders and government




    Small part of large organisation

    Medium and large




    Mostly unlimited




    Profit sharing



    Franchisee and Franchisor



    AC 1.2 Different structures within businesses in UK.

    Organisational structure is a system used to define a hierarchy within an organisation. It defines the jobs, its function and where to report within the organisation (Bryman and Bell, 2015). The organisational structures are been described below :

    • Functional Organisational Structure : In this structure organisation is been divided into smaller groups with specific tasks or roles. Such as marketing, finance, production, etc.
    • Line and Staff Organisation Structure : Most businesses in UK adopts Line and Staff structure as it is flexible. Relationship is between different levels are direct and vertical. Staff is mainly advisory in nature and doesn't possess any command authority.
    • Divisional Organisational Structure : In this structure departments are formed in organisation on different basis, such as function, product, project, etc. Each department has its own manager who directs and manage employees under him or her. Provides flexibility to larger companies with many divisions.
    • Matrix organisational structure : It is an organisation designed to achieve specific results by using teams of specialists from different functional areas in the organisation.
    • Project Organisation : This organisational structure is formed temporarily for particular projects for specific time period.

    AC 1.3 Impact of business environment on Tesco.

    Tesco is one of the largest retail giants across the globe, it has more than 6000 stores. Despite its successful operations its faces number of economical challenges whether at local, national or at global level which are been discussed bellow :

    • High Unemployment rates : Unemployment rates is one of the factors which affects the economy of Tesco as it affects the profitability, cost of its products and services, etc. as unemployment reduces demand for its products and services. On local and national level it will have a great impact, while at global level it would not affect much.
    • Substitutions : Availability of substitutes for Tesco's products and services forces reviewing the prices due to substitutes, as it affects the demand of products and services. Less impact at Local and national level but huge impact on global level.
    • Competition : Tesco has to face a tight competition from its rivalries, as a result it has to face low profit margins. Less impact at Local and national level but huge impact on global level.
    • Innovations : Tesco's market shares have reduced due to innovations and new technologies. Therefore, Tesco is been forced to refocus and adjust the products prices. To ensure better position in market and operates in international market without any major losses. Less impact at Local and national level but huge impact on global level.

    TASK 2

    AC 2.1 Importance of accounting for Tesco's success.

    Accounting is referred as the process of identifying, measuring and formulating economical data to help its users to make informed judgement and decisions (Laszlo and Cescau, 2017). Importance of accounting for Tesco is been discussed bellow :

    Tesco uses accounting statements to take important business decisions. Using statements like balance sheet to determine the financial condition of the business and determines liquidity and solvency through the use of financial ratios. Income statement helps to determine the performance and profitability and measures the amount of spending of the company. Accounting prevents misuse of assets, increase production and profit, controls costs and helps increase the efficiency of the overall management for achieving success and goals. Accounting helps to achieve target or goals of business by coordinating various activities of different departments. Preparation of various budgets is essential for the success of business.

    AC 5.1 Functions of HR department in Tesco.

    Efficient HR department can manage Tesco's most valuable resources – its employees and can provide organisation with structure and ability to meet business needs through managing them. Following are the functions performed by the HR of the Tesco :

    • Recruitment : Recruitment refers to hire the best available options to perform the job. For this Tesco advertise their available vacancies in different ways. It is the main function of the HR department to study various job in the organisation and prepare job description and specification for the various jobs and to do recruitment and selection process accordingly (Trevino and Nelson, 2016).
    • Training and Development : Tesco's HR department provides employees with training needed for their success to help them transition into new organisational culture. HR department also provides leadership training and professional development. Professional development for employees looking for promotional opportunities.
    • Job safety : HR department is required to provide safe working environment for employees. HR is to support workplace safety training and appointing a safety and risk specialist.
    • Compensation and benefits : Tesco's HR functions include setting compensation structures and evaluating competitive pay.
    • Labour law compliance : HR has to compliance with labour and employment laws. HR department must be aware of federal and state laws.
    • Employee Retention : Employee relations in HR discipline concerned with strengthening employer-employee relationship through measuring job satisfaction, employee engagement and conflict resolving (Crane and Matten, 2016).

    AC 5.2 Key features of Employment legislation.

    Employment legislation is a governing body of law for employer/employee relations and rights of employees and employers in workplace (Charter, 2017). Following are the employment legislation of UK :

    • Employment Rights Act : This act is entitled to itemised pay statement, national minimum wage, protection against unfair dismissal at work (Beckmann, Hielscher and Pies, 2014). Due to this business in UK have to provide all the benefits to their employees under this act.

    Benefits : Right against wages, holidays, work hours, dismissal, etc.

    • Equal Pay Act, 1970 : Women and men should receive same pay for doing same work. In UK due to this Act both women and men gets equal opportunities.

    Benefits : no discrimination on the basis of gender, caste, religion, etc.

    • Safety, Health and Welfare at work Act, 2005 : make further provision for securing the safety, health and welfare of persons at work. Businesses in UK have to consider the health and safety of their workers.2

    Benefits : It provides a safe and healthy environment to work.

    • National Minimum wage act, 1998 : Under this act minimum wage of a worker is been determined by the government. UK's businesses have to plan their wage policy according to this.

    Benefits : minimum wage is given.

    TASK 3

    3.1 Interpretation of profit and loss account

    From the above profit and loss account of Tesco we can see that the revenues are slightly declining, the operating expenses after an increase have also decreased at a lower rates. Due to which the net income of Tesco have increased after facing loss of 40 million Euros and earned a profit of 1206 million Euros.

    TASK 4

    AC 4.1 Analysis of own role as team leader and others' role within a team.

    Role of a team leader :

    • As a team I have to create an environment of trust, creativity, open communication and team effort.
    • I have to provide team with vision of project objectives.
    • I have to motivate and inspire team members and maintain healthy group dynamics.
    • I have to recognise and celebrate accomplishment of team members.
    • Lead the team by setting good example.
    • Have to solve the problem of the members.

    Roles of team members in a team :

    • Working in time and within the cost constraints
    • work together as at team
    • Understand the purpose and objectives of the project.
    • Create a positive motivation.
    • Report progress against plan. To support future training events

    AC 4.2 Stages of Team development

    Process of learning to effectively working together is known as team development. Bruce Tuckman has identified a five-stage development process that most teams follow to become high performing. Following are the five stages :

    • Forming stage : It involves period of orientation and getting acquainted. Interactions are social as members get to know each other (Rayna and Striukova, 2016).
    • Storming Stage : It is the most critical stage to pass through as it is a period marked by conflicts and competition. Performance of the team decreases in this stage.
    • Norming Stage : In this stage consensus develops around who the leader or leaders are, and individual member’s roles. As members learns to cooperate team performance increases.
    • Performing stage : Team becomes mature, organised and well functioning. Members are committed to the team's mission and problem solving.
    • Adjourning stage : Most of team's goal have been achieved. As the team goal is achieved, individual members may be reassigned to other teams, and the team disbands (McDonald and Wilson, 2016).

    AC 4.3 Motivation theories

    Motivation styles vary for different situations and topics but nonetheless, drawn on all the time, especially when trying to learn something challenging. Motivational style can identify the situations that best satisfy needs. Some of the most important theories of motivation are as follows :

    • Maslow's Need Hierarchy theory : This theory is based on human needs in hierarchical manner from lower to higher order. Which are physiological, safety, social, esteem needs and self-actualisation.
    • Herzberg's motivation hygiene theory : This theory states that some factors(motivating) that cause job satisfaction and motivation and some separated factor(hygiene) cause dissatisfaction (Drutman, 2015).
    • McGregor's Participation Theory : Two distinct views of human being based on participation of workers, i.e., negative labelled Theory X and positive labelled Theory Y.

    AC 4.4 Different types of leadership styles

    There are different types of leadership style followed in different organisations. In this context, following are some of the leadership styles :

    • Democratic Style : In democratic style, the managers allows the employees to take part in the decision making. It is a two way communication (Ward, 2016).
    • Autocratic style : Autocratic style means that the managers of alone makes all the decisions without considering the subordinates.
    • Paternalistic Style of working : It's where the manager decides what is best for the employees and for the organisation.

    Impact of different leadership styles on employees :

    Participative style of leadership have a positive effect on employees' performance in which they feel power and confidence (Bryman and Bell, 2015). In autocratic style leaders only have the authority and employees feel inferior in doing job and decisions. And in democratic style employee have some extent of power to make decisions.

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    TASK 5

    AC 6.1 Impact of customer service on business success.

    Customer service should be one of the main priorities. Keeping them happy is key to run a successful and profitable business (Laszlo and Cescau, 2017). With good customer service in Tesco more customers are likely to do business again, which increases customer retention and increases the profits. Enhanced customer loyalty results in increased sales, returns and profitability. It enhances the reputation of business in the market.

    AC 6.2 Benefits of customer profiling to a business.

    Customer profiling is done by Tesco to understand customers' buying behaviour, interests and attitudes. Benefits of building customer profiles are:

    • Better communication : It makes communication easier as business knows more about their customers.
    • Greater opportunities : Easier to develop opportunities as they provide feedbacks and suggestions.
    • Reduce competition : Through strong relationship with customers it reduces competitions.
    • Bring in more customers : When organisation knows about current customers it is easier to attract more.
    • Customer service : It helps to provide services to targeted customers as the organisation knows their customers details and behaviour, and use them for quality services (Trevino and Nelson, 2016).


    From this report we get to know about the various organizational types and organisation should adopt line and staff structure for better hierarchical communication. Economic environment has a severe impact on the business. Accounting is a very vital function of a business for its smooth running. There are five stages of team development – forming, storming, norming, performing and adjourning stage. An organisation should use different leadership and motivation styles in different situations for business success. An organisation should create customer profiling to know there customers more and to provide them services accordingly.

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