Leadership And Power Analysis: Tesco

2017 Words9 Pages
Tesco is the UK’s biggest supermarket chain with more than 7000 stores in 12 markets across the world. It biggest market is in the UK with revenue growth’s contribution of 68%. The second big market is Asian countries with a revenue growth’s contribution of 16%. Remaining market is in the Europe. Its bank contributes of 2% to the revenue’s growth. In term of employees, there are more than 500,000 employees working for the company. During the period of 2009 to present, as many businesses, Tesco has been affected negatively by the global financial crisis. Its financial performances have been bad since the last three years. After a good financial performance in the year of 2011/2012, its group sales reduced from 72.0 million in the
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Leadership and power analysis
There are various definitions of leadership. Nevertheless, the term of leadership in this study refers to the process of influencing people in order by creating directions, aligning, inspiring and motivating people in working as well as coping with problems or changes (A.G. Sheard, 2002). There are many types of leadership such as Autocratic, Democratic, and Laissez-faire specified in Lewin 's Leadership Styles; Transformation leadership; and Six emotional leadership styles - Visionary, Coaching, Affirmative, Democratic, Pacesetting, and Commanding (A.G. Sheard, 2002).
In this study, I strive to apply theories of leadership to figure out the leadership of Tesco presenting in setting goals and directions, aligning and inspiring people, and leading them to cope with changes. Power is not significant trait of Tesco since it has launched Every little helps the concept, which show the company’s respect and fair treatment to all of the stakeholders.
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In details, Taylor promoted a fair payday for a fair work day. This idea is applied in Tesco. Tesco is rated high with its compensation and benefits as results of job reviews on Glassdoor.
Tesco is aware of the importance of its employees as valuable assets. Thus, the company has invested heavily in its employees mostly by remuneration strategy. This strategy aims to attract the right people, motivate them, recognize their contribution, align them in the same page with the company’s strategic goals, and retain them as loyal employees. The reward strategy consists of four principles – competitive, simply implement, fair and sustainable. As an evaluation of the Payscale (2014), Tesco typically pays 3% higher than the average of the market.
In another hand, Tesco is also using the Steering Wheel balanced scorecard system with precise KPIs to examine the employee’s performances. These KPIs become directions for its employees rather than a simple management tool. Based on the performances, Tesco will reward and promote its employees fairly. In addition, Tesco always fosters the effective communication to avoid all of the problems and conflicts amongst employees and between the employees and the managers. Such mentioned approaches increase the employee’s motivation within this

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