Wednesday 18 April 2012

Leadership Styles and Motivation to Employees At Tesco

Tesco is a familiar UK based organization which is providing grocery items and general commodities to customers all over the world. As a result of strong business strategies, Tesco ranked as third largest retailer when calculated in terms of profits. 

Tesco is under the administration of many skilled people who are best in the industry. As it is into various categories of businesses like electronics, food items, furniture, clothing, DVD rentals, internet services, books retailing and many more, different groups were developed to handle all the activities effectively. Even though Tesco created coordination among staff and different teams by strong management and leaders, few group coordination problems occurred in some stores. Different managers handle the problems in different ways, for example Berian is one of the managers in Tesco who is heading a team of 17. Letting the team members to decide a solution for problem is the leadership style followed by Berian. This kind of approach motivated the team members and provided very positive results to Tesco. 

Autocratic approach- decision making is completely in the hands of manager, Democratic approach- asking for team members opinions while taking a decision are the two important leadership styles in decision making process. Tesco managers used both of these approaches timely. Tesco uses Critical Success factor (CSFs) which guides the staff towards team work and customer focus. 

Decision making is one of the important processes to be executed by managers; In Tesco managers value the team members’ opinion and suggestions within agreed boundaries. 

To continued growth it is very important to motivate the employees, Tesco always motivated its staff by providing an opportunity to learn new things and by increasing job satisfaction through various incentives, rewards and proper recognition. Standards of working improved in order to meet the product quality and to satisfy the customers more effectively.   
Tesco encouraged its employees through various appraisal, incentive and reward systems. In 2006, Tesco shared its success with employees by offering almost 78million pounds worth shares as incentives. ‘Save As you Earn’ and ‘Buy As You Earn’ are the two different Tesco schemes introduced to benefit its employees. Tesco also provide pension schemes based on employee service and performance. Tesco identified the problem of staff by conducting a viewpoint survey and solved them very quickly by taking necessary actions. Tesco believes that “Happier staff means better customer service”.


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