OUM BUSINESS SCHOOL

SEMESTER JANUARY 2015

BBCG 3103

ORGANIZATION BEHAVIOR

NAME : TEO SEH GUAN

MATRICS NUMBER : RF 147257003

NO. KAD PENGENALAN : RF 147257

TELEPHONE NUMBER : 013 - 8977369

E-MAIL : teosehguan @ oum.edu.my

LEARNING CENTRE : OUM KOTA KINABALU

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TABLE OF CONTENT PAGE

1.0 INTRODUCTION 3

2.0 EMPLOYEE MOTIVATION LEVEL AND WORKING ENVIRONMENT 4

3.0 ANALYSIS OF EFFECT OF MOTIVATION ON ORGANIZATION 6

PERFORMANCE

4.0 RECOMMENDATIONS ON HOW TO INCREASE EMPLOYEES 10

MOTIVATION IN TESCO

5.0 CONCLUSION 13

REFERENCE 14

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1.0 INTRODUCTION

In a company the way function are organized can be as the organizational structure. Mainly
this structure will be aligned with the culture that the company operates within and also as
per how things are done inside the company. When it comes to human resources
management in an organization this company culture and its structure can be considered as
the main considerations where the respective organization will have to carry out its
processes carefully to comply with the way it works. In this assignment it will mainly focus
on different leader ship styles that are used, organizational theories practiced, human
resources management and its procedures of a worldwide retailer Tesco. In this assignment
it will also pay attention to the culture and structure of it, by comparing with another
company , and also leadership styles , theories, motivational factors, which are related the
Tesco and also their culture will also be analyzed based on the nature of groups and their
behavior.

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2.0 EMPLOYEE MOTIVATION LEVEL AND WORKING ENVIRONMENT

According to Podmoroff (2005,p 80) a key success in any of the organization can be seen
as the motivation level of employees. In the Tesco different motivational theories are used
in different ways along with interest levels of employees in the company. As per Herzberg
dual factor theory hygiene factors and motivational factors needs to be given to the
employees of the company to motivate them really well.

2.1 Effectiveness of Different Leadership Styles That Are Being Used By Tesco

The main objective of Tesco as give the best value to their customers while making
sure people or employee will work for the best of the company at their best.
Considering that we can see mainly management and participative styles are being
carried out by the organisation, where this gives them the chance to utilise the
maximum out of their employees towards the work of organisation. According to
the latest annual report published by the Tesco we can see that this leadership
concept is somewhat different to what other retailers are following in the
environment that they operate. As per Hendry (2011,p 380) , the main target of
Tesco is to make sure that they will be able to empower and let each other to follow
to develop themselves to achieve targets and enables the company to meet as long
term objectives. In this another thing we can see that trustworthiness and openness
are being considered as the key values and this actually gives everyone a good
chance to take part in all the companys activities.

2.2 Organisational Theories Practiced At Tesco

As per annual reports of Tesco recently published, the main successful factor at their
stores can be seen as employee participation through which they get really
motivated in performing their main activities without forcing and they make
themselves work towards achieving goals that ultimately help the company to
achieve their objectives. The employees at Tesco are usually coordinated to operate
in groups mainly in the form of matrix structure. In this the managers are given a

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chance to gain more experience through other subordinates by looking at the way
they handle works, giving to the customers and carrying out the different operational
activities. In this the learning are coming from experiences which will more
embedded into the strategies which will then enable the customers to get a good
shopping experience at their stores. Also in this way Tesco has will be enable the
management to respond immediately to the changing customers retirements and
marked dynamics.

2.3 Evaluation of the management used by Tesco

In the Tesco employee participants and increasing the customer satisfaction level to
the maximum level can be seen as the main values in the culture of this organisation.
Also management styles that are being used by Tesco is helping to settle the
organisational culture. Also a consultive and a participative management styles is
being used let employees work well with others in different levels. The employees
are mainly divided to number of groups under many functions inside the firm and
managers get to work well with the others in amore collaborative way (Thompson
2005, p 194).

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3.0 ANALYSIS OF EFFECT OF MOTIVATION ON ORGANIZATION

PERFORMANCE

According to the Annual Report recently published for Tesco stores, Tesco can be identified as the
largest supermarket chain in UK, where main focus is on delivering the best customer service and
enable a culture that is based on the customers. The whole culture of the organisation is based on
the customer values and employee participation. In this all the employees without considering their
position in the company are asked to work in a more collaborative environment which is to increase
the value which is delivered to the customer. As per Smith (2012, p 120) the culture at Tesco can
be identified as mainly a customer centered task culture.

3.1 Influence of structure and culture on Tescos performance

Tesco being a main competitor in the world retail industry they mainly focus in offering
quality to the customers at an affordable price than their other market players. As per the
Tesco website, (2014) it is mainly considering this theme of giving the best quality product.
To make sure that they will provide the best quality service it is very important for Tesco
to be closer to the customers identifying their needs and requirements effectively giving to
them which enable a customer oriented culture at Tesco. The hierarchical informal company
structure at Tesco is solely focusing on giving the support to its employees to easily
collaborate with each other and to take and implement the decisions they will add value to
the customers. According to Steward (2004, p.230) all the employees are working together
without considering their levels at the organisation keeping the objective of increasing the
company performance adding value to the customers in the services they consume.
Therefore because of this customer oriented employee driven culture within Tesco the
employees always motivated in carrying out their operation which then increase the services
that are being offered to the customers. So the customers get loyal towards the company
allowing Tesco to gain a good profit.

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3.2 Factors that influence individual behaviour in the workplace at Tesco

The customer oriented employee driven culture at Tesco enables to get closer to the
customers giving them a better service and in getting higher levels of customer satisfaction.
As described by Berman (2007, p 350) the main values at Tesco, customers satisfaction and
employees working together are at their best of all the employee. In this employees without
considering their roles and levels at the organisation are working together in making
together in making the companys overall targets are a reality. This can be seen as the secret
behind Tescos success over the last few years in continuously increasing its profitability
and increasing its market base.

The employees are working together in different groups sharing the experiences at work
which will help them to improve in their underperforming areas by easily identifying them.
Tesco management understands the employee involvement is a more important thing in the
super market chain where they are continuously rewarding its employees motivating them
to more improve their services. As per the Annual report for Tesco stores, (2013) they
clearly recognise the employee participation as a main part in their organisational culture
which has proven to be.

3.3 How different leadership styles may impact employee motivation at Tesco in periods
of change

As describe by Sims (2002, p 248) successfully managing the human resources can be seen
as the main force for success in any company. Restriction for change is a usual behaviour
in any company where the employees are not willing to get out of their daily routines and
works. According to that managing human resource can be very crucial. As Tesco followed
a more authoritative culture with their employees. As per Beer and Nohria (2000, p 165) in
earlier periods the company went through a huge financial crisis where the company had to
make a loss of several periods. In that situation the senior management decided upon
changing the organisation structure and the culture in which the employees will be driven
by following a participative and a consultative leadership style and in which creating
customer values will be at their best of the culture. Tesco was successfully able to
implement this new strategy within the organisation as the employees were motivated with
regard to the authority and the decision making power they will get along with
implementation.

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3.4 Organisational structure and culture of Tesco

In creating the customer value by encouraging the employees it is important for the
company to properly identify the different factors that will surely motivate the employees
to carry out their operations with the objective of delivering the best towards the customers.
In that light the different motivational theories can be used effectively to specifically
identify the motivating effect.

3.4.1 Maslows Hierarchy of needs

This theory identifies need of the individuals in the form of a hierarchy where the employees
will get motivated to achieve the needs in the next level which they have not yet been able
to fulfill (Goble, 2004, p.24)

Tesco needs to maintain a better and strong relationship with employees in

understanding the exact needs and the requirements of them which then can be
effectively used in motivating the employees to willingly perform their operations.
The basic needs are anyway being provided by Tesco so that by allowing the
employees to fulfil their psychological needs and self-fulfilment needs by giving
them promotions and rewards, chance to work in groups and actively take part in

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decision making processes, they could be motivated to provide a better service to

the customer.

3.4.1 McGregor Theory X and theory Y

Tesco consists of diversified employees where there will be employees who are not
willingly taking part in organizational activities and who will be lazy and reluctant
to carry out the allocated operations. As per this theory these people will be the
theory X people where the management will have to be authoritative towards them
in managing them. According to Gordon (2007, p.63) theory Y people will be
motivated to perform their operations provided that they are allowed to actively take
part in the decision making processes of the organization. Tesco management could
motivate such employees by allowing them to actively take part in the decision
making processes of the organization.

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4.0 RECOMMENDATIONS ON HOW TO INCREASE EMPLOYEES MOTIVATION IN

TESCO

4.1 Usefulness of the motivational theories and the applicability of the Hertzberg
theory for the managers at Tesco

As per Riley (2006, p.127) motivational theories play a vital role in understanding
the factors that will enable a firm to motivate its employees to achieve the company
objectives and goals. The above mentioned motivational theories can be effectively
used by the management of Tesco to identify the factors that already being fulfilled
by the company and the factors that are not yet been fulfilled by the company. For
example the Maslows hierarchy of needs can be used to identify the levels of needs
that the company should allow its employees to fulfil achievement of which will
motivate them in providing a better customer service. As explained in the Hertzberg
dual factor theory the management should effectively identify the hygiene factors
and the motivating factors within the organization which can then be used in order
to motivate the employees. According to Mukherjee (2002, p. 152) the hygiene
factors are the basic requirements of the employees such as a convenient working
environment, a good salary and recognition which have already being fulfilled by
Tesco.

4.2 Nature of groups and group behaviour within Tesco on how that will influence
employee behaviour

As per Mullins (2004, p.354) groups can be identified as a set of individuals that
may or may not have a specific mission to be achieved. On the contrary a team can
be identified as a group with a specific mission to be achieved. Tesco within its
informal, wide and flat organisational structure is actively promoting behaviour as
an important part of its employee driven customer centered culture. The group
behaviour of the employee of Tesco enables the managers to maintain a closer
relationship with the employees getting their ideas and experiences in giving to the
customer requirements and in carrying out organisational processes.

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Apart from that the group behaviour within Tesco enables the employees to increase
their productivity and improve the problem solving procedures as more issues can
be effectively solved with the views and the ideas of different employees with lesser
input and effort. As per Brooks (2002, p.28) the levels of creativity among the
employees will improve due to this group behaviour and most importantly the
information flow will get efficient and fasten enabling the managers to quickly
respond to the changing customer requirements and market dynamics.

4.3 factors that will promote or inhibit the development of effective teamwork
within Tesco

As per Macmillan (2002, p.120) the group behaviour is actively promoted with in
Tescos culture where the management should pay specific attention on the factors
that are promoting and inhibiting the effectiveness of the teamwork within Tesco.
One of the main factors that limit the effectiveness of the team behaviour can be
identified as the group thinking where the entire team will agree on a particular
decision which may not particularly benefit the organisation. In that light the
management should closely monitor the decisions that are being taken prior to
allowing the employees to go ahead with that decision. As per Markowski (2008,
p.120) the intra group collisions may also inhibit the effectiveness of teamwork
where the different views and ideas among the different group members may clash
with each other. So the management and the team members should be mindful to
quickly solve those conflicts without allowing them to go more. Sometimes the
groups may tend to take unnecessary risks to protect the image of the teams and
groups. In such situations also the management must closely monitor these team
behaviour in order to guide them in the correct direction. Apart from all the above
factors considered, attainable and reliable short term and long term targets, rewards
and incentives will particularly promote the group behaviour within Tesco.

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4.4 Impact of technology on team functioning within Tesco

According to Eason (2005, p.220) technology will play a crucial role within any
company. Within Tesco different technology implications play a major role in
enabling the company to perform their activities in a better and efficient way.
Customer value creation is at their best of Tesco and therefore the identification of
the changing customer requirements and the market trends is very much important
for the management of Tesco. The group behaviour within the organisational culture
is promoted actively in order to fasten the information flow in order to fasten the
decision making process. In the context the different technologies such as emails,
video conferences, mobile and group messages can be effectively used within the
groups in order to improve the communication processes. As per Rippin (2002,
p.48) the different teams within the different functions can be connected via
communication technologies so that the information flow within the whole
organisation will get improved. The emails, mobile technologies will enable the
team which will improve the group efficiency. Also new mobile computing devices
can be used in effectively carrying out different work inside the organisation mainly
in group work. Planning different work well which will enable the company and
different groups to achieve their targets effectively and also easily to achieve the
overall organisational objectives.

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6.0 CONCLUSION

Organisational structure and the culture are considered as the main factors which runs an
organisation towards the success. The human resources of a company needs to be handled carefully
by recruiting and managing according to the organisational structure and culture. Tesco with its
customer oriented and employee driven culture, they have been able to thrive number of targets
successfully by giving a better service to the customers which automatically enable the output to
be on a high. Through different motivational factors in the Tesco they have been able to improve
the decision making process of the company and also the functioning of different groups inside
company. This enabled the Tesco to come closer to their customers by identifying their exact needs
and requirements. This enabled the Tesco to deliver a better service to the customers by gaining
customers satisfaction which also enabled them to gain a competitive advantage in the market.

Number of words: 2915

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REFERENCE

Berman, (2007), Retail Management: A Strategic Approach, 10/E, 1st Edition, Pearson
Education India, p350

Brooks, (2002), Organisational Behaviour, 1st Edition, Pearson Education India, p28

Eason, K.D. (2005), Information Technology and Organisational Change, 1st Edition,
CRC Press, p220

Goble, F.G. (2004), The Third Force: The Psychology of Abraham Moslow, 1st Edition,
Maurice Bassett, p24

Gordon, J. (2007), the Pfeiffer Book of Successful Leadership Development Tools,

Illustrated, John Wiley & Sons, 63

www.tesco.com

Blog of Tesco leadership programme (online)

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