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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.
Issues related to communication: It is very common due to different cultures within an organization, and there is ought to be some sort of communication barrier among the employees and different staff working in the organization. There can be language barriers, styles of communication can be different, and every individual tends to have different preferences in terms of likes and dislikes (Kouret al. 2021). Organizations need to address this matter closely otherwise it may lead to problematic situations. Barriers due to communication can also lead to a lot of misunderstandings among different individuals working in an organization as there can be many misinterpretations of different words that can be problematic to deal with later.
Cultural misunderstandings: People working in an organization comes from various places around the world that have diverse cultures. For instance, giving a thumbs up, or patting someone on their back to appreciate their work can be treated as offensive behavior in different cultures. This can be treated differently by different individuals as it may hurt their sentiments, and this may lead to a team getting divided thereby reducing the unity and solidarity among individuals in the team (Vevere and Sannikova, 2018). If a team breaks down it will have a direct impact on the organizations working culture as the quality of products may decrease due to non-cooperation among different individuals.
Figure 1: Challenges with diverse nature of organization
Decision-making: Decision-making can be slow due to diverse working culture. Diverse working culture can bring about different perspectives, opinions, and ideas that can be great for creativity and innovation, but it can make decision-making slower as it will become difficult to choose a single idea from a variety of different ideas that are both creative and innovative (Tong, 2019). Due to slower decision-making, the overall time required to complete a particular task will also be increased therefore may miss the deadline to meet consumer needs. Here the person who takes the final call becomes vital as his or her decision is full and final.
Discrimination: In a diverse team there will be people belonging to different castes, races, values, and ethics. It is often seen that people belonging to different castes tend to discriminate against lower-class people in terms of their overall position in society, their skin color, and their values (Daniëlset al. 2019). In fact, it is seen that majority of the people are abused and discriminated against in the workplace based on their age, race, and gender. This may hurt the sentiments of such individuals and may lead to unforeseen circumstances in the near future.
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.
Prepare new organization: Tesco company change its strategy and become a huge change in its business. Therefore, a new organization is prepared with two-phase. In the first phase, the company manager aims to help other employees and help them to understand why changed the strategy (Vial, 2021). Even, many challenges create problems in building a new organization so company managers and leaders are aware of this and learn from other employees.
Change vision and plan: Mangers of Tesco are managed so much work in the company regarding work, so managers decide the plan and vision to build a new organization. Many goals are fixed to build a good organization that changes the organizational work (Ateljevic, 2020). The strategic goals, every employee's performance, and all project stakeholders are changed to build a new vision and new planning to improve the company’s work.
Improve strategy changes: The right plan is created for the manager and after the planning, many new steps are followed to improve company turnover and processes, and company structure. Employees are the main part of building company improvements, so the behavior of the employees is essential to build company growth (Han and Ahn,2020). The leaders of Tesco taught many skills to the employees of this company band also taught them how to develop their behaviour with the team members.
Import the culture of the company: The Tesco company managers changed all strategies, then it is important to change an organization and build its culture and work process. The company’s new culture is difficult to accept (Wreford et al. 2019). This company's culture, structures, and manage to control are so difficult for the new employees, so it is overcome with the help of tools.
Explain review results: After the change of the plan and strategy, it can improve the business volume, and it is a valuable lesson for the success of the future. Tesco company changed its strategy, and as a result, many problems are faced but last, it is successful and improved its turnover.
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.
Contingency theory of leadership: This theory is often known as the situational leadership theory. It suggests that different leadership style suits different situations. In this type of leadership theory leaders must be able to adapt to different situations based on the requirement, this type of theory increases innovation and effectiveness within an individual (Dinevaet al. 2022). This theory makes individuals very versatile and able to adapt to different situations quickly, it also helps them to tackle difficult situations easily
Transformational theory of leadership: This theory focuses on leaders that can maintain healthy relationships with their team members. This type of leadership theory has a great influence on their teams and are able to focus on achieving their business goals (Hanowski, 2022). This type of theory is believed to bring about a positive change in the organization. It also helps to develop a b bond between their leader and their teams.
Transactional leadership theory: This type of theory revolves around giving rewards and punishment based on employee performance. Basically, when a team member performs well in an organization they are entitled to some kind of reward, on the other hand, if an employee does not perform as per expectation then they are entitled to some sort of punishment as decided by the organization (Monte, 2021). This theory does not allow managers to share any bond or connection with any employee. This theory helps employees to be on their toes and work sincerely. It is very much the opposite of the transformational theory of leadership.
Figure 2: Different theories used in leadership and management
Great man leadership theory: Great leaders have some unique traits that are very much different from others. This theory focuses on such people who are born with such traits. These traits mainly include being a charm, confident, able to stay cool under pressure situations, and having a good social aptitude (Li et al. 2022). This type of leader tends to inspire a lot of people who wants to be an effective leader within an 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-
Better business process: Tesco company work process is not ending just changing time by time. The management change is particularly designed for the company improvements and extra design and the implementation of the entire process (Sachs et al. 2019). Tesco company changed its work process and day by day it is working for the future improvements of the Tesco company. This is a benefit of the management change.
Good workflows: There are many ways to improve the workflow of the employees. Employees are used many tools to improve company service. Employees are the main part of continuing the company's business (Kohnováet al. 2019). Tesco company is followed the same process. Many new technologies are used the Tesco for better services. The leaders of Tesco taught good training and many skills that are developed by company employees. Employees redesigned their work strategy to use the new management strategy.
Loss of project overhead: The management of Tesco can lose its project overhead with the help of changed strategies. Many problems are overcome with the help of the changes and give good support to obtain the employees. The project of this company will have so many headaches but the new strategy reduces most of the parts to control the project's problems.
Company culture improvements: Many company cultures are different from one another, but Tesco company follows some cultures that are changed for the management strategy. Every part of the business follows some rules that improve the company's success (Dwivedi et al. 2020). The experiences of the employees and customers are improved by the management change.
Workers are happy: Employees are the main part of the company's development so it is very careful to keep the company employees comfortable. A new business strategy works for the employees as a better result (Haneltet al. 2021). Employees are engaging in their work most of the time and unproductive time are used the productive time and employees are happier with their work.
Attractive workplace: A attractive workplace is created for the change of the management strategy. It is more effective to encourage the Tesco company employees and their work effort is double for this. Many benefits get the employees and the workers so the company’s target and planning are successful in the workplace.
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.
Greater support to employees: Tesco company changed its management strategy to improve the company’s success. This change aims for better results for the company, but it does not work without the employees. Therefore, a good organization of the employees is needed for the development of the company. Employees do not accept easily these changes, and as a result, it occurs a huge problem. As a result, employees occurs so many problems. These problems are controlled if the managers and the leaders always help the employees. Therefore, employees are happier and they work on the change strategies and problems will be solved.
Skill development of employees: Employees are the backbone of Tesco company so employees should have a clear direction for the company’s work so many skills are developed by them. The leaders of the Tesco company taught employees so many skills that are developed for the success of the company (Ali and Anwar, 2021). The company has short or long-term goals that improve step by step. Leaders and managers are supported by the employees and if employees are skillful in company work, then do not complain about any changes.
Apply Risk management plan: Tesco company is a reputed company for its services and good quality. As a company manager, a risk management plan is used for employee support and to reduce the challenges that occur the changes the management. Employees are supported if their managers and leaders are supported to control any issues that employees created. As a result, a risk management plan is used by the managers to control any challenges or risks (Anweret al. 2019). Therefore, employees are a clear vision that the effectiveness of the management changed.
The development of the career: The employees of the Tesco company needed the development of their careers. The company managers are supported to develop employees' careers so that they are improving their job life (Klein et al. 2022). Employees are also careful about the changing process because managers and leaders also help them. Therefore, employees do not disrupt the changing process so all problems are solved.
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.
Figure 3: Effects of Covid-19 on Supermarkets
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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