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Leadership management varies in different organizations, which affects the working within an organization. The role of leadership in change management requires an individual to help people understand the vision of the organization. This type of communication needs to happen consistently in order to manage different issues that may happen every day. This study will analyze critically the challenges faced by an organization due to its diverse nature. Later it will also discuss different leadership styles and management skills that can be effective in the overall functioning of an organization. In task 3 different theories will be used that can be useful in leadership and management. Factors that motivate managers and the impact of Brexit and Covid on an organization are discussed later in this study.
Various challenges are faced by different organizations from time to time because of the diverse nature of cultures within the organization. Similarly, Tesco, which is a leading multinational retail organization in the UK also faces similar challenges to other organizations in the market due to a diverse working culture (Saunders et al. 2019). A diverse working culture also brings a lot of benefits with it, as it can bring different perspectives, opinions, and ideas that may eventually lead to different innovations and possess better problem-solving abilities. Here it is important to discuss various challenges in detail to take measures in order to solve them accordingly.
During the Covid-19 pandemic, Tesco used a leadership strategy called faster delivery service which helped them to boost their personal economy during the crisis situation. Tesco using this strategy has shown today that even when the UK was struggling economically after the pandemic, Tesco through its unique leadership was able to stand firm through a such crisis (Browning, 2018). During the pandemic, people mostly preferred to buy their grocery items through eCommerce grocery sites, as it was seen that eCommerce grocery sales increased more compared to other sales in the market (Veysehet al. 2022). Tesco leaders decided to use this opportunity to increase their sales by providing consumers with the fastest service for grocery items. Tesco’s one-hour Whoosh delivery service was used strategically to cater to the needs of different consumers. This service now operates over more than 100 stores. Tesco has also made a partnership with Gorillas to start faster delivery of service.
Tesco has also reported that their group sales increased by 2% compared to the same period in the previous years (Internetretailing.net, 2022). On a like-for-like basis, it has stripped out the effect on the store and different business openings and closings, but it was seen that they were 9.9% ahead of the budget during the same period in 2019. Online sales were lower compared to the year 2020, as in 2020 people were restricted from going out of their houses which prompted them to buy necessary grocery food items from online eCommerce websites that delivered products to their homes.
This change in management helped Tesco earn great profits during the pandemic situation but after the pandemic the year later it was seen that the figures dipped a little as consumers bought more food and which was mostly bought online.
The Tesco leaders also conveyed that even if the market environment will be more challenging every day, their main focus will be to give value for the hard work that their employees put in and also value the amount of dedication with which they work. These leadership traits help an organization build a good working environment within the organization that will help employees to express themselves to a greater extent, and it also helps them to outperform the market (Gautam, 2019). Tesco will also provide low prices on certain items every day and Clubcard prices will ensure that consumers will not need to shop elsewhere.
Leaders in the Tesco organization found it difficult to separate the significant impact after the 2020 year’s pandemic. It impacted a lot of people financially which restricted them from buying more products from the market this had a significant impact in terms of economic growth. After the pandemic, the prices of different products increased (Soccolichet al. 2022). Therefore, the cost of living also increased which affected a lot of families in the UK. Therefore, Tesco leaders decided to work more with their suppliers and partners to reduce the cost of living for the people and try to ensure that they not only meet the required demands but also help people lead a comfortable life by providing reasonable costs.
Leaders are always creative and influence their followers, and taught them many learning skills. The leadership strategy helps an organization to improve and promote new skills. Strategic leaders always inspire employees and also help to reach their goals. The leaders of Tesco are so creative and innovative person, they are always helpful to their employees. Tesco company have so many business strategies, and this company is famous for its strategy and leadership skills. During the pandemic, every company suffered many challenges and then this company applied so many new strategies, and it ensured to minimize all negative things and it is successful to follow this new strategy (Albertazziet al. 2018). Five changes in this company's management and leadership skills are discussed here.
Managers use different theories which help them to manage and show leadership qualities in an organization. Here it is important to discuss the four most important theories that help managers in managing the organization.
Leaders in the Tesco organization tend to follow these important theories which not only help to lead the organization effectively but also allow them to manage the organization efficiently.
Tesco company changed its management strategy to improve the future of the company. Management strategy change is important for business growth because it is easy to understand the employee's commitment and effort in the workplace. Tesco company changed all types of transformational changes which is one kind of change in the organization. As a result, the organization has completely changed and the company environment and its technology have fully changed at that time. Many management strategies will improve the company target and the company environment (Sachs et al. 2019). It ensures control of the problems and creates new planning. Many changes in management are shown to improve business transformation. These are-
The Tesco company managers follow the new strategy to improve the company target and fulfilled the company vision and mission. But employees do not accept this change easily, and as a result, some steps are followed to motivate other employees. This company will not grow without the effort of the employees. Therefore, some tactics are used by leaders who are effective in their work, to motivate employees. Some tips are-
Good communication: A good community is built for the change of the management strategy, and employees are happy so a good bonding is created between the employees and the managers and, the entire team members (Pingaliet al. 2019). Good communication is the main object that helps to improve productivity. Employees are always too busy with their work in their workplace.
These steps are followed by the managers and leaders for the development of the company business. The Tesco company managers follow these steps and also motivate the employees so all the changes in the management process are successful.
Brexit and the covid-19 both affect the UK economy together, however, the initial economic shock from Covid-19 was much larger than the effects of Brexit. The impact of covid was both domestic and international because of the global lockdowns. In the case of Brexit, the relationship between the UK and the European Union has changed and raised questions about the UK’s financial condition. Both situations left an impact on individual organizations, and Tesco is one of them (Sulistiyaniet al. 2020). However, this supermarket giant of the UK was fighting the effects of Brexit and the covid 19 added some more pressure on it.
The management change of the Tesco company is good for the success of the company works. A huge impact is created by Brexit, the s given by the united kingdom. The chairman of the Tesco company has been told that after Brexit any food price change is moderate that struck the agreement with the UK and the European Union. Brexit has been guided to a decrease in crops and many products that are grown at home on the ledge of the supermarkets in Britain. Tesco company facing many challenges when its management strategies are changed. In the present situation, Brexit will be forced directly on Tesco (Fyshchuk and Evsyukova, 2020). It is proposed that the United Kingdom will have paid tax on every essential good that is carried from the European country.
Tesco company is a reputed company so many supply chains are situated in other areas. Brexit has disrupted the company supply chains so that supplied products are in shortage day by day. Then, Brexit gets the results to the workforce of Tesco. In the present situation, many employees of Tesco company’s are the inhabitant of the other European Union (Alqatawenah, 2018). As a result, many employees of the company did not work in the UK and were not allowed to live.
Tesco company was not able to deliver the products to north Ireland when Brexit makes. It is reported that fruits and meals are ready but not delivered. A total of 20% of the products like food and others are not delivered from the European Union. As a result, a bad effect became the economy of the United Kingdom. The UK economy is low in that situation and Tesco company’s turnover is low for this reason. Company of Tesco is able to grow its business in other countries in the European Union, so it is free to expand its business. The shoppers in British are worried about not delivering food and other products. The price of the food store will be increasing in 2021.
The Covid-19 pandemic had a massive impact on the growth of the organization despite having good sales in the year 2020 the cost count fell to fifth in the overall market rankings. Tesco is regarded to be one of Britain’s biggest supermarkets and reported pre-tax profits of £825m for the year 2020 till 27th February, 19.7% lower than a year earlier (Hr.economictimes.indiatimes.com, 2021). Although the like-for-like sales grew by 7.7%. The headline sale figures also dipped from the fuel sales which went down by 38% compared to previous years. This happened because people travelled out very less compared to previous years. During that year online marketing saw an increase of 77% compared to previous years.
Despite the shifts to online, Tesco’s larger supermarkets enjoyed healthy sales growth of 1.5%, and the convenience stores were up by 3.9%, which was helped by the trend of shopping closure to their homes. Tesco had been affected by spending a lot of funds on the healthcare of their employees through the crisis situation. Tesco also benefitted from restaurants and pubs being closed which meant consumers had to eat and drink food by buying them from the stores. This made Tesco hire around 50000 temporary workers during the pandemic among them approximately 20000 became permanent members. Brooker sales also grew as the demand from small retail organizations grew by 41% (Hr.economictimes.indiatimes.com, 2021). Since Covid, there was a decrease in the quality of service. This impacted greatly economically as it failed to understand the new trends and different cultural differences in other countries. Profits were weighed down by 892 million pounds worth of COVID-related costs that were needed to hire staff to cover for workers impacted by the virus.
Different cultural intervention strategies can be applied that can be used to positively deal with organizational change in a multinational organization. Here I would like to suggest a few strategies or tips that can help a multinational organization like Tesco manage different organizational changes in the effective functioning of the organization.
To learn about the employee's families in a team: If an organization makes effort to know about the type of family from which an employee belongs to. It helps the organization to act accordingly with a particular individual. This will help organizations to understand different cultural beliefs, values, and ethics of the employee which will be very helpful in order to communicate with the individual effectively. It will help organizations to bring out the best in an employee, as it will eventually help an organization to produce better quality products.
Work with cultural mediators: It is important for different organizations to work with different communities which will give them experience and knowledge about different cultures within an organization. I personally think that working with different communities will provide experience in how to deal with different individuals within an organization belonging to different cultures. This will remove a lot of misunderstandings between individuals working in the organization and will also help to create a sense of unity, bonding, and solidarity within the team.
Learn different use of words: I personally think, different words, and behaviours are taken differently by different individuals belonging to different cultures. Therefore it is vital for organizations to understand which words can be used for different individuals in order to avoid misunderstandings in the near future.
Offer alternate ways of input: I think it is important for organizations to encourage families of employees to give their personal suggestions for better work culture within the organization. This will not only help organizations to build better work culture but will also be helpful for employees to work with self-satisfaction within the organization. If an employee is able to work with self-satisfaction then it will help the employee to work happily and efficiently, which will eventually lead to better work culture and better quality of the product within an organization. If the family does not feel comfortable interacting publicly then it is the responsibility of the organization to provide a service provider that knows the family best and speaks to them appropriately.
To plan list guests carefully: I personally think that it is important to conduct meetings including the family members so as to get feedback on how to improve the work culture within an organization. I think there will be situations where families will not agree to join such meetings it will be important to give a brief on the topic of the meeting that will be discussed. It will also be important to reduce the number of professionals in the meetings, until and unless they ask for some. This will be helpful for Tesco to understand the expectations of the families from the organization and will thereby be able to meet the required expectations. It will also help organizations manage and deal with organizational change effectively.
Work with an interpreter: If a family is a non-English speaking family then it will be important to have an interpreter who will be able to understand their language and will be able to explain various things that they want to convey to different families. I think is important to work with interpreters to determine different family concerns, priorities, and resources that will help to determine the next step in the process. This will Tesco leaders to convey their messages clearly and precisely so that there does not occur any sort of misunderstandings in the near future. This cultural intervention will again help to deal with organizational change within an organization.
Plan comforting rituals: I personally would like to suggest organizations give importance to incorporating practices that will be comfortable for the families. This includes serving Tea or coffee as per user preference, taking time to get acquainted before beginning a particular meeting, and getting to the extremely formal part of the meeting or conducting the meeting in a highly formal manner. This will help families get accustomed to the surroundings and will feel comfortable while attending the meeting.
Develop goals to achieve to meet priorities: I think it is important to set goals, objectives, and outcomes for a team that will be focused on giving importance to the family's concerns and priorities. I think it is important to understand the priorities of different families and work accordingly. For instance, a family might expect an organization to provide better work culture within the organization so that their children can work efficiently or may want a salary increment based on work performance. The goals should be made so that it gives importance to the priorities of the family members. This will make sure that the organization provides a sustainable environment for the employees to work for the betterment of the organization. This will also help the organization deal with organizational change as they are now meeting the demands of the employees later when there will be a change in the organization there will be no misunderstandings among the employees.
Different individuals have different priorities, and it is not possible for an organization to meet all the priorities but I think they can take the majority of the priorities and set the changes accordingly so that there are no grudges or emotional dissatisfaction among the minds of the employees. I think it will also be important to maintain the health-related issues of all the employees especially those sustaining disabilities physically. It is seen that most families tend to be very particular about health-related issues so I think it is important to focus on health-related issues that will satisfy the families more often than not.
Get family feedback: According to me, feedbacks play a very important role in cultural intervention strategies. It is because feedback reflects the expectation that is set by different families, so in order to meet the expectations it is very important to get various feedback. This will help organizations to set certain goals for various teams that will eventually help them to meet such expectations to satisfy the needs. According to me, this strategy can be achieved by doing face-to-face interviews, hiring agencies to give an annual report of various feedback, and finding different systems that will be appropriate to serve different families. I would also suggest preparing short questionnaires that will have questions related to different preferences.
Conclusion
From this study, it becomes very clear that the practical role of leadership is very important that helps in effective change management. There will be challenges in the context of the diverse nature of an organization but they need to overcome those challenges as a diverse nature brings in a lot of benefits that can help an organization work efficiently. In task 4 it is seen how important change management is in a business transformation. Brexit and Covid are also seen to have a major impact on leadership changes. Overall, it is to be concluded that transformation and change in leadership play an essential role in a global context.
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