Effective Management Impacts on Organization Success, Research Paper Example

Introduction

For the business that needs to be successful, it is mandatory for them to have concept of effective management not just in terms for maintaining customer’s satisfaction but also to measure and to control organizational performance in the required level. The use of effective management can establish organizational success (Ayodele, Abdallah, & Issaka). Nowadays, organizations are finding new ways in doing business to stay competitive in this world market place (Haerifar 2011). Not only effective management practices are the reasons for success of the organization, but this also include the skills of employees who contribute their approach of quality management in order to deliver better value to external and internal customers (Humby & Hunt 2004).

Overview of Tesco

The purpose of this study is to present the impact of effective management, leadership styles, to discuss PLOC (planning, leading, organizing and controlling) in Tesco. This study also focuses on making decisions for the growth or success of the organization. The industry I have selected for this research is Tesco, which is a global grocery retailers (Humby & Hunt 2004). Tesco initiated business in retailing of groceries but today they are selling utensils, home entertainments, stationary and other various products (Nwagbara 2010). Only in UK Tesco has a huge business with around 2,200 stores which includes, Tesco Metro, Tesco express, Tesco superstores etc (Haerifar 2011).

Missions, ethics and value of Tesco

The Tesco’s aim is to lead in the retail market all around the globe and by emphasizing on this, it establishes the long term objectives and to make strategic decisions in achieving the goals (Humby & Hunt 2004).  Tesco’s mission is to create value for the customers so that they can earn lifetime loyalty, they understand their customers, to be answerable to the communities, and they also are the first to satisfy the needs of customers (Ayodele, Abdallah, & Issaka). They always value their customers on first place and what they believe that if customers like what Tesco offers, then they will come to shop again (Haerifar 2011). In order to achieve the mission statement, Tesco has introduced the club card services where their loyal customer gets special points and vouchers (Nwagbara 2010).

Tesco’s culture and its structure

Organization’s structure depends on the size, the sector, the number of people they hire and the physical resources. Tesco has mainly two organizational structures, one for the whole company which involves board of directors (Haerifar 2011). The second structure is within each of the stores. The second structure is very easy to perceive with each control level is shown clearly (Xie & Allen 2013). Tesco having simple store structure allows the employees to easily observe that who is in charge of the departments or who their manager is (Humby & Hunt 2004).

When Tesco started the business, it had the culture of cheap affordable products, but they have never compromised on the products quality. Tesco’s culture can easily be seen by outsiders in languages, symbols or architecture (Ayodele, Abdallah, & Issaka). They have adapted the culture of relaxed environments and ease of access. Tesco is customer centric and this is seen by employee’s approach towards customer. It has created the foundation on norms, morals, religious and societal awareness and has adapted the mix culture environment (Humby & Hunt 2004).

Leadership style

Tesco adapts the leadership of democratic style because it has the flat structure which allows every staff as the part of organization’s success (Nwagbara 2010). The leadership and management style in Tesco has shown the efficacy in the growth of organization (Haerifar 2011). They are devoted in helping their staff to find the best job, and to support their needs (Xie & Allen 2013). No matter if it is religious requirements, or support for illness or other reasons, the management is always there to understand and they try to be flexible to handle employees in any strategic change (Ayodele, Abdallah, & Issaka). Tesco, who focuses on continuous growth, their managers use autocratic leadership style just to make sure that the employees are giving bests in achieving the tasks (Humby & Hunt 2004).

Motivational style

Motivators such as achievement, personal growth and recognition helps in enhancing the employees satisfaction and which will increase the performance of them (Nwagbara 2010). Tesco is a renowned organization which has international standards (Haerifar 2011). So hygiene factors are in the company resulting less in dissatisfaction as poor hygienic factors will cause dissatisfaction of employees (Humby & Hunt 2004).

Tesco’s overall measurements and Things leading to success

Tesco’s strategy is to maintain relationship with the existing customers and also to attract the new one (Xie & Allen 2013). Tesco has made the experience of shopping more thrilling for the customers. Its factor for successfulness is its rapid growth in customer base system. In this age of technology, it is important for all organizations to improve their technologies (Haerifar 2011). Today Tesco is not just the largest food retailers but it has the successful internet supermarket (Nwagbara 2010).

Strengths of the Tesco

Tesco firmly believes that the success can be achieved through motivating employees and customers. Tesco’s success depends on the skills and commitment of their employees (Humby & Hunt 2004). Tesco provides continuous training to make sure that the employees clearly understand the customer’s objectives (Haerifar 2011). One of the strength in Tesco with respect to employees is that they are encouraged to get involved in financial partnership such as share plan, profit sharing schemes and option of savings related shares (Xie & Allen 2013). Tesco is doing research in improving the services and quality, Tesco is continuously using modern instruments and technology to provide best services to their customer (Ayodele, Abdallah, & Issaka). Tesco is continuously bringing up the new offers for their customers keeping situation and time in the minds.

Contribution of PLOC for company’s success

Tesco’s manager is doing planning, organizing, leading and controlling. By using these factors the manager can make better plans, they can make faster decisions, they can define the jobs to the workers who has to monitor and perform the activities (Ayodele, Abdallah, & Issaka). In Tesco workforce planning allows the company to identify how needs can be acquired through training and recruitment (Nwagbara 2010). The factor leading in Tesco can be found in customer assistants and administrators who clearly know their timescales and responsibilities (Haerifar 2011). Each of them has to face different sort of decisions making. The managers of Tesco adopt directive style by providing clear visions and communications to the employees that what goals they have to achieve (Humby & Hunt 2004).

Controlling is the important factor in Tesco management, here managers know whether the goals are achieved or not (Haerifar 2011). If managers didn’t control than they will never know what actions to be taken in future. Organizing factor in Tesco provides proper methods and control to support the employees. In this part, admin managers make an ideal system for highly motivated staff to follow proper procedures and to monitor the work (Xie & Allen 2013).

Challenges Company can face in next five years

Tesco may face challenge in international expansion as international growth is really expensive. Tesco entering in new markets with new brands will require heavy marketing and investments (Ayodele, Abdallah, & Issaka). And they has to bear the land prices, operation expenses and extra distribution charges as well (Haerifar 2011). Tesco is facing intense competition from Asda, as Asda is more focusing towards the compete prices and innovating the range of goods. Similarly, Wal-mart also decides to flourish its buying power and this could result the death of Tesco’s brand dominance in near future (Xie & Allen 2013).

Conclusion

Tesco has a complete organization having different departments who smoothen the operation of daily activities (Humby & Hunt 2004). Every employee in Tesco knows their duty and to perform it well. Manager’s comprehensive planning is essential to receive maximum output or result from the employees (Nwagbara 2010). In doing this assignment we learned that principles of affective management are just not related business it is also applicable in our daily lives (Haerifar 2011). Considering the example of autocratic style of leadership which is mostly practiced in Tesco. Applying this affective management can ease us in completing the tasks which is being assigned (Ayodele, Abdallah, & Issaka). This will ultimately results in success of the organization if the management principles are well implemented.

References

Ayodele, A., Abdallah, N. M., & Issaka, Y. Using Tesco As A Case Study.

Haerifar, P. (2011). Performance Management in Tesco.

Humby, C., & Hunt, T. (2004). Scoring points: How Tesco is winning customer loyalty. Kogan Page Publishers.

Nwagbara, U. (2010). Managing Organizational Change: Leadership, Tesco, and Leahy’s Resignatio. E-Journal of Organizational Learning and Leadership, 9(1), 56-79.

Xie, Y., & Allen, C. (2013). Information technologies in retail supply chains: a comparison of Tesco and Asda. International Journal of Business Performance and Supply Chain Modelling, 5(1), 46-62.