entire responsibility for decisions and, having set objectives and
allocated tasks to employees, expects them to be carried out exactly as
specified. Employees are told exactly what, how and when work must be
started and finished. It is the kind of management style often associated
with a corporate culture centred almost exclusively around production.
Power is focused at the top, and the centralised decision making is geared
to getting the goods out of the factory and to customers. Little regard is
paid to any non-monetary needs of employees; they are not consulted or
involved in decision making.
Democratic: A democratic management style seeks to involve employees in the
decision-making process, either by consulting them directly or through
their representatives. This approach reflects a corporate culture which is
more human resource centred and recognises the organisational benefits from
meeting its employees’ non-monetary needs - such as a need for job
satisfaction and a sense of belonging. A consultative approach is
particularly important if an organisation is planning to change product
design or working conditions, methods and practices.
Laissez-faire style: This style gives people complete freedom to organise
and carry out their work. It is a very person centred approach. A laissez-
faire approach may still impose some constraints, such as completion dates
for certain key tasks or the earliest and latest arrival times for a
flexible hours working day. There is no formal structure for decision
making as decisions are taken by a variety of processes depending upon the
nature of the problem, the opportunity to be explored and the individuals
involved.
Consultative style: Leaders consult with others before decision are made.
There will be a group influence in the final decision, even though it is
made by the leader.
As diagram above shows, Tesco has many levels of staff: directors on the
top, and step by step to employees on the bottom, therefore I can think
that Tesco is a hieratical organisation, where each individual knows who he
must report to. Communication in a complex organisation such as Tesco will
be dependent on the organisational structure, but this will be discussed
later in my section on “Communication”.
I can see that Tesco has a centralised and decentralised form of
organisation because people on the top, who control the company, take the
majority of decisions and also the company’s Head office is centralised at
Cheshunt in Hertfordshire.
Tesco is very big organisation and has very many stores in different places
– this fact shows that Tesco is a decentralised organisation, with much
decision-making delegated on a regional and individual store level.
From the information I have managed to access I believe/consider that Tesco
has a very good democratic and consultative management style. It is a very
successful firm, as seen earlier, it is now the U.K. market leader with
positive leadership from above and a notable corporate culture.
The directors present their annual report to shareholders on the affairs of
the Group together with the audited consolidated financial statements of
the Group for the 52 weeks.
The principal activity of the Group is the operation of food stores and
associated activities in the UK, Republic of Ireland, France, Czech
Republic, Slovakia, Hungary, Poland and Thailand. A review of the business
is contained in the Annual Review which is published separately and,
together with this document, comprises the full Tesco PLC Annual report
Accounts.
Culture
Culture in organisations is often described as the set of values, beliefs
and attitudes of both employees and management that helps to influence
decision-making and ultimately behaviour within them. Each organisation has
a unique culture. This is what makes studying business behaviour so
fascinating. The business culture helps to determine how things get done in
firms and defines, quite simply, how the company works. The fact that
organisations are themselves organic, composed of workers constantly
interacting with each other and their environment, suggests that the
culture in firms is not static and constant – the way firms operate can
change, either intentionally through management action or more likely
through natural evolution.
Corporate culture
Corporate culture is a set of values and beliefs that are shared by people
and groups in an organisation. A simple way of explaining corporate culture
might be to say that it is the ‘way that things are done in a business’.
The corporate culture of a business can influence decision-making. It also
encourages low level managers to behave like entrepreneurs. Business
leaders are able to create a corporate culture to achieve a corporate
objectives and strategy of the company. It is important that the corporate
culture of a business is understood by all the people that work in the
organisation. It is usually transmitted to new members and reinforced
informally, by stores, symbols and socialisation, and more formally through
training.
Advantages of a strong corporate culture.
. It provides a sense of identity for employees. They feel part of the
business. This may allow workers to be flexible when the company
needs to change or is having difficulties.
. Workers identify with other employees. This may help with aspects of
the business such as team work.
. It increases the commitment of employees to the company. This may
prevent problems such as high labour turnover or industrial relations
problems .
. It motivates workers in their jobs. This may lead to increased
productivity.
. It allows employees to understand what is going on around them. This
can prevent misunderstanding in operations or instructions passed to
them.
. It helps to reinforce the values of the organisation and senior
management.
. It acts as a control device for management. This can help when
setting company strategy.
Figure 1.8: Types of business culture.
Culture, presented within Tesco plc.
Tesco has achieved its position as Britain’s leading food retailer by
offering excellent value and service to its customers. Underlying its
business success is a commitment to upholding certain values, working
principles and culture within the organisation, and to seek continuous
improvement in its ethical performance. As a measure of its achievement to
date, in 1997 the company came top in the Christian Aid league table for
ethical commitment.
Customers.
Tesco must serve its customers by providing the goods they want and the
service they expect. By meeting customer needs better than its competitors
do, Tesco earns profits and creates value for its shareholders.
Customer service is at the heart of Tesco business culture. The base line
is quality and value, but customers also look for a shopping environment
which is attractive, well planned, and enjoyable. They also expect staff to
be helpful, responsive to their needs, and sympathetic to their problems.
Tesco is constantly seeking new ways of meeting customer needs. These
include introducing Customer Assistants dedicated to helping customers at
every point during their shopping, establishing a Customer Service Centre
to deal with customer enquiries, providing facilities for customers with
disabilities, and organising customer question times when Tesco can hear
customers views.
Staff.
Tesco employs 154,000 people in the UK and 27,000 in Ireland and Europe. It
is constantly told by customers that its staff are the company’s best
asset. This means that the company must motivate and train its employees to
give the best possible customer service, and provide opportunities for all
members of staff to develop their talents to the full.
The company believes that the welfare and safety of its employees is of
paramount importance, and applies high ethical standards to protect
workers’ rights and reward employees fairly for their work. Full and part-
time staff have had their benefits harmonised, including salaries, purchase
discounts, pensions and profit-sharing. The company has a national
agreement with USDAW, the shop workers’ trade union.
The approach of Tesco to worker welfare goes beyond its own employees. The
company insists that its suppliers meet certain employment standards in
matters such as fair pay or minimum working ages. Tesco believes it can
play a positive role in influencing working practices around the world.
Like other large companies, however, Tesco recognises that its wider
reputation depends on other things, such as its staff relations, its
attitude to the environment, its support to the community, and its
relationships with its suppliers. Also, as a leading food retailer, the
company must ensure that it provides products, which are safe to eat or
use, as well as giving customers advice on matters such as healthy diets.
Health and safety
Tesco customers rightly expect that their purchases will be safe to eat or
use. The company applies the highest standards in meeting these
expectations and makes special provision for those with special dietary
needs. Following government recommendations on the nation’s diet, Tesco was
the first retailer to promote healthy eating.
Environmental policies
Tesco is committed to protecting the environment and to using its
commercial strength to put its principles into practice. In many cases, the
company’s standards far exceed legal requirements. Its environmental
policies cover matters such as recycling of packaging, working with
suppliers to minimise the use of pesticides, energy conservation, and the
siting and design of its stores. Tesco also works closely with
environmental organisations in areas relevant to its business.
Animal welfare
The company aims to set the highest standards of animal welfare in the
industry, and has introduced a code of practice on the treatment of animals
to which all its suppliers must adhere. The company is also funding
research to improve understanding of animal welfare, and will continue to
promote and implement high standards in order to improve animal husbandry
still further.
Relationships with suppliers
Tesco has relationships with thousands of suppliers in the UK and overseas,
and works closely with these suppliers in order to ensure that products are
of the highest quality and delivered in the best possible condition. By
working in close partnership with its suppliers, Tesco is helping them to
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