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

TABLE OF CONTENT PAGE

 BBCG 3103 ORGANIZATION BEHAVIOR

1 INTRODUCTION 3

2 EMPLOYEE MOTIVATION LEVEL AND WORKING ENVIRONMENT 4

3 ANALYSIS OF EFFECT OF MOTIVATION ON ORGANIZATION 6

PERFORMANCE

4 RECOMMENDATIONS ON HOW TO INCREASE EMPLOYEES 10

MOTIVATION IN TESCO

5 CONCLUSION 13

REFERENCE 14

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
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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.

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
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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 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

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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).

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

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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.

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

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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.

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.

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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
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

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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.

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
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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.

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.

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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.

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

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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.

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

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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

REFERENCE

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

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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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