BSM 202 Project Leadership, Teams and Behaviors
Individual Report
12/15/2023
TESCO – CASE Study
Talib Maqbool 2222884
Table of Contents
1.0 Introduction ........................................................................................................................................... 2
Section 01: A Comprehensive Analysis of Leadership Approaches for the Opening of a New Tesco Mega
Store in the UK ............................................................................................................................................. 2
Section 02: Critical Analysis of Individual Differences and Motivations at TESCO Megastore ................. 4
Section 03: Critical Analysis of Tesco's Organizational Culture and Strategic Adaptation for a Successful
Project ........................................................................................................................................................... 8
4.0 Conclusion ............................................................................................................................................. 9
Reference List ............................................................................................................................................. 11
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1.0Introduction
The global retail landscape is marked by dynamic shifts, economic challenges, and ever-evolving
consumer demands. As of the fiscal year 2022, Tesco, a retail giant founded in 1919, stands
prominently at the zenith of the industry, boasting a staggering annual turnover of €58.13 billion
(Retail-Index). With an extensive presence characterized by 4,673 stores and a workforce of
367,321 employees as of 2021, Tesco has solidified its position as a key player in the retail sector
(Retail-Index). Guided by Chief Executive Ken Murphy, Tesco has navigated the complexities of
the market, adapting to external pressures while maintaining a steadfast commitment to
providing affordable shopping experiences for its consumers (Tesco, 2023).
In the face of economic downturns, Brexit implications, and the challenges posed by inflation,
Tesco's resilience shines through. As articulated by CEO Ken Murphy, the organization is
proactively addressing external price pressures and undertaking measures to ensure accessibility
for consumers. This introduction provides a snapshot of Tesco's financial prowess, organizational
scale, and strategic responses to contemporary challenges, setting the stage for a comprehensive
analysis of the retailer's leadership, employee motivation strategies, and organizational culture in
the context of opening a new mega store amidst industry turbulence.
Section 01: A Comprehensive Analysis of Leadership Approaches for the
Opening of a New Tesco Mega Store in the UK
Leadership, a fundamental element in the organizational fabric, serves as the linchpin for
aligning diverse individuals toward a shared objective. At its core, leadership encapsulates the art
of unifying a group of people and guiding them purposefully toward the attainment of a common
goal. James B. Rieley (2006) provides a nuanced perspective, asserting that effective leadership
transcends mere direction; it is the creation of environments wherein the individual and
collective potential of company employees can be fully realized. Three primary types of
leadership have been delineated in the literature: authoritarian, democratic, and laissez-faire. The
authoritarian leader, synonymous with dictatorship, issues directives to subordinates, instilling a
sense of hierarchy and control. In contrast, democratic leadership fosters a participatory
environment, encouraging group involvement in decision-making processes. Lastly, the laissez-
faire leader, borrowing from the French term meaning 'do it as you like,' adopts a hands-off
approach, granting autonomy to individuals within the group.
1.1 Leadership Theories
1.1.1 Transformational Leadership
Transformational leadership, as conceptualized by Bass's Transformational Leadership theory,
stands out for its effectiveness in inspiring and motivating employees, as emphasized by Bass
and Riggio (2006). This leadership style goes beyond transactional aspects and focuses on
creating a shared vision, fostering innovation, and building a positive organizational culture. In
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the context of Tesco's challenges, this theory aligns with the pressing need for motivation during
economic downturns and the imperative to innovate in response to sourcing challenges and
changing customer needs (Bass & Riggio, 2006). The strengths of transformational leadership
make it particularly relevant for Tesco's environment, where the organization is confronted with
the need to adapt to industry shifts while maintaining a motivated workforce. Therefore, the
recommendation is to embrace transformational leadership, as advocated by Bass, as it aligns
with the organizational requirements of Tesco, providing a robust framework for fostering a
positive and motivated team during the critical phase of opening a new store.
1.1.2 Situational Leadership
The Hersey-Blanchard Situational Leadership Theory, characterized by its adaptive leadership
approach based on follower readiness, represents a model with inherent strengths, as it allows for
flexibility in leadership styles (Hersey & Blanchard, 1982). In the context of Tesco's challenges,
this model proves effective in managing the diverse array of obstacles encountered by
employees. The situational leadership theory aligns with the dynamic nature of challenges faced
by Tesco, enabling a tailored leadership approach that considers individual and team readiness
levels. As a recommendation, employing a situational leadership approach alongside
transformational leadership can be advantageous, offering a nuanced strategy that addresses the
specific needs of employees and enhances overall adaptability in response to the multifaceted
challenges posed in the retail industry.
1.1.3 Servant Leadership
Greenleaf's Servant Leadership Model characterized by its emphasis on serving and supporting
team members, emerges as a leadership theory with distinct strengths, prioritizing ethical
leadership and employee well-being (Greenleaf, 1977). In the context of Tesco's challenges, the
servant leadership model proves relevant as it explicitly addresses the critical need for employee
well-being during economically challenging times. The ethical considerations associated with job
cuts and pay cuts align with the values propagated by servant leadership, making it particularly
applicable to Tesco's organizational context (Greenleaf, 1977). The recommendation, therefore,
is to adopt a servant leadership approach, given its potential to contribute significantly to the
creation of a positive and cohesive work environment, ultimately aligning with the core values of
Tesco.
1.1.4 Transactional Leadership Model
The Transactional Leadership Model, characterized by its emphasis on clear structures, rewards,
and punishments, represents a leadership theory with acknowledged strengths in providing
stability, particularly in routine and stable environments (Bass & Riggio, 2006). In the context of
Tesco's challenges, the transactional leadership model may offer stability and structure during a
period of organizational change, providing clear rewards for achieving set goals. However, its
limitations in motivating during times of significant change or uncertainty, as noted by Avolio
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and Yammarino (2013), pose constraints in addressing the complex challenges faced by Tesco.
Therefore, the recommendation is to exercise caution in relying solely on transactional
leadership, as its inherent limitations in inspiring and adapting to uncertainty may hinder the
effectiveness of leadership strategies in the current context.
1.2 Recommendation
In light of the multifaceted challenges confronted by Tesco during the opening of the new mega
store, a nuanced and blended leadership approach is recommended to optimize organizational
effectiveness. Specifically, a strategic integration of transformational and situational leadership is
proposed. The transformational leadership style, as advocated by Bass's model, will infuse the
organization with inspiration and motivation, crucial for navigating economic downturns and
fostering innovation in addressing sourcing challenges. Simultaneously, situational leadership,
grounded in the Hersey-Blanchard model, offers the flexibility required to tailor leadership
strategies based on the varied readiness levels of individual team members and the collective
adaptability needed during times of change.
Section 02: Critical Analysis of Individual Differences and Motivations at
TESCO Megastore
2.1 Individual Differences
Individual differences form the rich tapestry of human diversity, encompassing a myriad of
distinct attributes, traits, and characteristics that differentiate one person from another. In the
realm of psychology and organizational behavior, the study of individual differences holds
paramount significance, recognizing that no two individuals are exactly alike. Understanding and
appreciating individual differences is fundamental in unraveling the complexities of human
behavior, influencing how individuals perceive, interact, and respond to the world around them.
Key Challenges
Job Insurity PayCuts & Job cuts Environment Challenges
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2.1.1 New Employees
New employees joining TESCO may encounter challenges related to unfamiliarity with the
company culture, potentially leading to a sense of alienation, and a steep learning curve
associated with understanding company policies, procedures, and technology. To address these
challenges, motivation considerations are crucial. Comprehensive onboarding programs play a
pivotal role in helping new employees acclimate to TESCO's culture and understand their roles
(Bauer & Erdogan, 2011). Additionally, mentorship programs, pairing new employees with
experienced mentors, foster a sense of guidance and support, facilitating a smoother transition
into the organizational environment (Ragins & Kram, 2007). Furthermore, recognizing and
acknowledging achievements during the initial learning phase can contribute to boosting
confidence and motivation among new hires (Harter, Schmidt, & Hayes, 2002).
2.1.2 Old Employees
Existing employees at TESCO face significant challenges, including concerns about job security
due to economic downturns and restructuring, as well as potential pay cuts that can lead to
dissatisfaction and decreased morale. To address these challenges and maintain employee
motivation, several considerations are crucial. Clear communication is essential, requiring
transparency about the reasons behind changes, potential solutions, and the company's
commitment to employee well-being (DePape & Higgins, 2005). Involving employees in
decision-making processes, especially those related to changes in compensation, can empower
and motivate them, fostering a sense of ownership and control over their work environment
(Eisenberger & Shanock, 2003). Moreover, providing skill development opportunities
demonstrates the company's commitment to employees' continuous growth and reassures them of
their value and future employability within the organization (Keskin, 2006).
Recognition & Rewards
Clear Communication
Skill Development &
Motivation Strategies
Training
Team Building Activities
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2.2 Motivational Theories and Models
Motivational theories and models play a crucial role in understanding and influencing employee
behavior, productivity, and satisfaction within organizations, including Tesco. Let's examine how
key motivational theories and models apply to the context of Tesco:
2.2.1 Maslow's Hierarchy of Needs
Abraham Maslow's hierarchy of needs, a foundational theory in psychology, delineates human
needs in a hierarchical structure encompassing physiological, safety, social, esteem, and self-
actualization needs, organized in ascending order of importance. According to Maslow,
individuals naturally strive to fulfill lower-level needs before progressing to higher-level needs,
and motivation is influenced by the satisfaction or frustration of these needs. In the context of
Tesco, Maslow's hierarchy is highly relevant to the organizational structure. Ensuring fair wages
and job security addresses employees' physiological needs, providing a healthy work
environment caters to safety needs, and fostering positive workplace relationships satisfies social
needs. Recognizing and addressing these fundamental needs is pivotal for enhancing employee
motivation and well-being within the retail setting.
2.2.2 Herzberg's Two-Factor Theory
Frederick Herzberg's Two-Factor Theory, a significant framework in motivational psychology,
introduces the concept of "hygiene factors" and "motivators" to understand employee
satisfaction. The theory distinguishes between extrinsic elements, such as pay and working
conditions (hygiene factors), and intrinsic factors like recognition and achievement (motivators).
Herzberg posited that the absence of hygiene factors could lead to dissatisfaction, but their
presence merely prevents dissatisfaction without promoting satisfaction. On the other hand, the
presence of motivators is crucial for job satisfaction and intrinsic motivation. In the context of
Tesco, Herzberg's theory is highly relevant to the organization's approach to employee
motivation. Ensuring hygiene factors like fair compensation and job security is essential, but
equally vital are motivators such as recognition and opportunities for career growth to enhance
overall job satisfaction among Tesco employees.
2.2.3 Expectancy Theory
Victor Vroom's Expectancy Theory, a cornerstone in organizational psychology, posits that
individuals are motivated to act based on their expectations of the outcomes associated with their
actions. Comprising three integral components—expectancy, instrumentality, and valence—the
theory asserts that expectancy is the belief that effort will lead to performance, instrumentality is
the belief that performance will result in a reward, and valence represents the value an individual
places on the reward. Applied to Tesco, the company's emphasis on goal-setting and performance
targets aligns with Expectancy Theory principles. By setting clear and challenging goals, Tesco
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can motivate employees by providing a sense of direction and achievement, especially in sales
and operational roles within the dynamic retail sector.
2.2.4 Goal-Setting Theory
Edwin Locke's Goal-Setting Theory, a cornerstone in motivational psychology, underscores the
significance of establishing specific and challenging goals to augment motivation and
performance. According to this theory, the presence of clear and challenging goals can stimulate
heightened performance, especially when individuals are committed to these objectives and
receive constructive feedback on their progress. The application of Locke's Goal-Setting Theory
is evident in Tesco's organizational practices, particularly its emphasis on goal-setting and
performance targets. By setting clear and challenging goals for employees, Tesco aims to
motivate its workforce by providing a sense of direction and achievement, particularly in roles
tied to sales and operations within the dynamic and competitive retail sector.
2.2.5 Self-Determination Theory (SDT)
Self-Determination Theory (SDT), developed by Edward Deci and Richard Ryan, offers a
comprehensive perspective on motivation, emphasizing the crucial role of intrinsic motivation
and identifying three fundamental psychological needs: autonomy, competence, and relatedness.
According to SDT, individuals are motivated when these basic psychological needs are satisfied,
leading to intrinsic motivation and overall well-being. In the context of Tesco, SDT's principles
align with the organization's work culture. By providing employees with autonomy in decision-
making processes, offering opportunities for skill development to enhance competence, and
fostering positive work relationships that fulfill the need for relatedness, Tesco can contribute to
intrinsic motivation and job satisfaction among its workforce.
2.2.6 Equity Theory
J. Stacy Adams' Equity Theory, a seminal contribution to motivational psychology, posits that
individuals engage in a comparison process, evaluating their inputs (such as effort and time) and
outputs (rewards) in relation to those of others, with a fundamental desire for fairness in these
social exchanges. The theory emphasizes that perceived inequity, whether one feels over-
rewarded or under-rewarded compared to peers, can lead to changes in motivation and behavior.
In the context of Tesco, Adams' Equity Theory is highly relevant to the organization's
commitment to fairness and equality. Ensuring that employees perceive fairness in terms of
rewards, recognition, and work conditions is crucial for maintaining high levels of motivation
and preventing feelings of inequity within the workforce.
2.2.7 Cognitive Evaluation Theory (CET)
Cognitive Evaluation Theory (CET), a sub-theory of Self-Determination Theory (SDT)
developed by Deci and colleagues, delves into the impact of external events, such as rewards and
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feedback, on intrinsic motivation. CET posits that specific external factors can either enhance or
diminish individuals' intrinsic motivation based on whether they support or undermine feelings
of autonomy. In the context of Tesco, CET is applicable to the organization's utilization of
external events, such as performance feedback and rewards, to motivate employees. When Tesco
ensures that external factors, like recognition programs or performance bonuses, align with
employees' sense of autonomy and competence, it contributes to fostering intrinsic motivation
among the workforce.
2.2.8 Job Characteristics Model
Richard Hackman and Greg Oldham's Job Characteristics Model is a pivotal framework that
outlines key factors influencing employee motivation by addressing aspects of job design. The
model identifies critical elements such as skill variety, task identity, task significance, autonomy,
and feedback. According to the model, jobs that exhibit these characteristics tend to result in
elevated levels of employee motivation, job satisfaction, and overall performance. In the case of
Tesco, the application of the Job Characteristics Model is pertinent to optimizing job design
within the organization. Tesco can enhance employee motivation, satisfaction, and performance
by strategically incorporating factors like skill variety, task identity, task significance, autonomy,
and feedback into various job roles, creating a work environment that aligns with the principles
outlined by the Job Characteristics Model.
Section 03: Critical Analysis of Tesco's Organizational Culture and Strategic
Adaptation for a Successful Project
3.1 Organizational Culture Assessment using Edgar Schein's Model:
Edgar Schein's Organizational Culture Model offers a comprehensive framework for
understanding the layers of culture within an organization. For Tesco, artifacts and behaviors are
evident in its customer-centric approach, employee uniforms, and store layouts. Espoused values,
as articulated in Tesco's mission and vision statements, emphasize customer satisfaction,
innovation, and community engagement. Underlying assumptions might include beliefs in
continuous improvement and employee empowerment.
3.1.2 Leveraging Existing Strengths and Alignment with Core Values:
Tesco's strong commitment to customer service aligns with the retail project's goal of ensuring a
positive shopping experience at the new mega store. This alignment is crucial as it taps into the
core values that have contributed to Tesco's success over the years (Tesco, 2022).
3.1.3 Communication and Training Strategies:
Effective communication is pivotal. Tesco needs to clearly communicate the project's objectives
and how they align with the organization's overarching goals. Training programs should be
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designed to equip employees with the necessary skills and knowledge for successful project
implementation. This approach fosters clarity and a sense of purpose (Denison Consulting,
2020).
3.1.4 Encouraging Adaptability and Leadership Role Modeling:
In a rapidly evolving retail landscape, adaptability is a key. Tesco's leaders should model the
behaviors they wish to see, emphasizing agility and innovation. Encouraging a culture that
embraces change positions Tesco strategically in the face of evolving customer needs and market
dynamics (NHS Leadership Academy, 2013).
3.1.5 Strategic Cultural Change:
If the existing culture poses challenges for the project, a strategic cultural change may be
necessary. Leadership commitment is foundational to this process. Research indicates that
successful organizational culture change requires sustained commitment from top-level
executives (Cameron & Quinn, 2006).
3.1.6 Employee Involvement and Communication Strategy:
Involving employees in the change process is critical. By seeking their input and addressing
concerns, Tesco can ensure a smoother transition. A well-crafted communication strategy is
essential to articulate the reasons for the cultural change, fostering understanding and buy-in
among the workforce (Cameron & Quinn, 2006).
3.1.7 Training and Development Initiatives and Celebrating Successes:
Tesco implemented the training programs focus on developing the skills and competencies
needed for the new cultural paradigm. Celebrating successes related to the cultural change,
whether through recognition programs or milestone acknowledgments, reinforces the new norms
and motivates employees to embrace them (NHS Leadership Academy, 2013).
4.0 Conclusion
Tesco's strategic position as a retail giant, with a substantial annual turnover and extensive
workforce, underscores its resilience in navigating the complexities of the global retail
landscape. The challenges posed by economic downturns, Brexit implications, and inflation has
been met with proactive measures, exemplifying Tesco's commitment to providing accessible
and affordable shopping experiences. The comprehensive analysis of leadership approaches,
employee motivations, and organizational culture in the context of opening a new mega store
reveals the multifaceted strategies needed for success. Transformational and situational
leadership, aligned with Tesco's challenges, are recommended for a blended leadership approach.
Motivational theories, including Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory,
Expectancy Theory, Goal-Setting Theory, Self-Determination Theory, Equity Theory, Cognitive
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Evaluation Theory, and the Job Characteristics Model, provide insights into addressing
individual differences and fostering motivation. Additionally, leveraging Tesco's existing
organizational culture, aligned with core values, and implementing strategic cultural adaptations,
is crucial for the success of the new project. Tesco's commitment to customer service, effective
communication, leadership role modeling, and employee involvement are key elements in
ensuring a positive organizational culture. The strategic integration of these recommendations
forms a holistic approach for Tesco's successful adaptation to the challenges of opening a new
mega store, positioning the organization for sustained excellence in the dynamic retail industry.
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