Unit 12: Organizational Behavior

Contents
Introduction ..................................................................................................................................... 3

Task 1 Influence of culture, politics and power and Evaluation of motivation in Tesco Plc ......... 3

LO1: Influence of culture, politics, and power on the behavior of others in Tesco Plc. (P1, M1)
..................................................................................................................................................... 3

LO2: Evaluation of a mechanism to motivate individuals and teams to achieve a goal. (P2 &
M2) .............................................................................................................................................. 5

Task 2 Effective Cooperation, Concept and philosophies of organizational behavior ................... 7

LO3: Demonstrate an understanding of the system to cooperate effectively with others. (P3 &
M3) .............................................................................................................................................. 7

LO4: Application of concepts and philosophies of organizational behavior in Tesco. (P4 & M4)
................................................................................................................................................... 11

Conclusion .................................................................................................................................... 12

References ..................................................................................................................................... 13

List of Figures
Figure 1: Modules of organizational Culture .................................................................................. 3
Figure 2: Motivational Theories ..................................................................................................... 5
Figure 3: Maslow’s hierarchy of needs pyramid ............................................................................ 6
Figure 4: Herzberg’s two-factor theory .......................................................................................... 7
Figure 5: Application of Tuckman’s Team building in Tesco Plc.................................................. 9
Figure 6: Team development Theory by Belbin ........................................................................... 10
Figure 7: Implementation of path-goal theory in Tesco Plc ......................................................... 11
Figure 8: Implementation of Social Capital theory in Tesco ........................................................ 12

List of Table
Table 1: Comparison between the effective team and ineffective team ......................................... 8
Introduction
Organizational behavior is one of the integral parts of any business. It includes culture, beliefs,
reward system, communication flow, motivational approaches, monitoring, and control system. It
ensures the suitability of the organization by customer satisfaction and employee commitment
toward a business. To maintain competitive advantage quality and standard organizational culture
and behavior are very significant. Tesco plc is the market leader in the grocery industry in the UK
as well as it is diversified into seven other countries. In this paper, Tesco plc's organizational
behavior from different dimensions is discussed along with the critical analysis of theories and
philosophies.

Task 1 Influence of culture, politics and power and Evaluation of

motivation in Tesco Plc

LO1: Influence of culture, politics, and power on the behavior of others in Tesco
Plc. (P1, M1)

Influence of Culture
Organizational culture is a vital part of an organization to accomplish the target effectively and
efficiently. This culture is the combination of employees, values and policies, reward and
communication system, organizational structure and leadership style of that organization. In
supporting variations, innovation in strategies and approaches organizational culture of Tesco Plc
is playing a significant role.

Figure 1: Modules of organizational Culture

Source: (Alblas and Wijsman, 2019)
Tesco as a role model in the grocery industry has a reputation for cultivating the best organizational
culture within the organization. As a multinational organization Tesco maintaining cross-cultural
difference awareness to integrate cultural variety within the organization. Through the supportive
organizational structure and philosophies, the company is diversified its shops across different
nations by almost 7000 shops (Magala, 2013). Though the culture of any organization plays as a
strength for the organization to accomplish toward growth, sometimes malfunctioning of the
cultural element results negative impact over the entire business. In Tesco's perspective practice
of bureaucratic leadership hinders reaching the target proficiently along with employees'
satisfaction. On the other hand, the reward and compensation system of Tesco Plc is attracting
employee commitment toward the organization and increase job satisfaction among employees.
However, in the 21st century, Tesco is focusing more on tuning the communication system to
exploit the advantage of globalization.

Influence of politics
Organizational politics is the combination of influential strategies and direction of the juniors
toward a single goal for both personal and organizational welfares. It can be practiced for both
administrative prosperity and individual gain. Employees of Tesco consider organizational politics
as privileged action. In Tesco organizational politics is adopted to benefit individual prosperity
only. Employees from Asian subcontinents are deprived of due rights whereas those rights are
exercised by the employees of the European region. Employees of the Asian region are paid below
the standard as well as they were not appreciated enough as a contributor to Tesco's progress. Such
kind of preferential behavior diminishes the commitment level among employees toward the
organization. It will cause severe loss of work interest and rise of work-stress among employees.
Reduction of productivity, an increase in employee turnover and loss of Asian market can be the
possible negative outcome of such practices in Tesco. However, the organization is adjusting this
organizational politics for industrial welfare.
Influence of power
Power can be defined as the ability, capability or right to be able to control people or things for
attaining a specific target or goal. It is an important concept, dynamic or element in the
organizational culture (Stack, 2013). This power helps organizations to accomplish the firm's
target by practicing teamwork. In Tesco Plc both formal and informal power is practiced. The
exercise of personal power in Tesco leads preferential treatment toward specific employees and
it leads to an adverse ambiance at the workplace. It hampers the employees’ productivity and
commitment level toward the company. It also hinders the employee relationship with higher
authority. Introducing several training sessions to improve employees' emotional aptitude and job
commitment can be possible with formal power exercise. It can lessen the hostile effects of
perceived managerial politics.

LO2: Evaluation of a mechanism to motivate individuals and teams to achieve

a goal. (P2 & M2)

Motivation is the best and easiest approach by an organization to drive both an individual and a
team toward a single organizational target. Motivation theories demonstrate two dissimilar
magnitudes of motivation. Intrinsic motivation is an attitude among employees that is came from
job satisfaction through realizing the company's objective. However, Extrinsic motivation theory
suggests promotion, rewards, bonuses, etc. are key elements to motivate organizational employees.

Figure 2: Motivational Theories

Source: (Archer and Cameron, 2013)
Due to cultural diversity as a multinational organization, Tesco practices different employs several
approaches to motivate its staff to fulfill the company's goal proficiently. Tesco mostly follows
Maslow’s theory of needs. As per Abraham Maslow’s hierarchy of needs theory Physiological
needs, Safety needs, Social, Esteem, and self-actualization are the key scales of an individual's
needs. The administration of Tesco offers a different level of requirements to their employees
based on their position in the organizational hierarchy. To meet employees' physiological needs,
Tesco offers an average salary of ₤32,049 a year (Robbins, 2012). The company has a good
reputation in the market to cover the safety needs of employees by offering safety and health
principles, protection equipment and training programs to control the hazardous workplace. It
ensures employees' awareness and commitment toward the firm and enhances the productivity
level among employees of Tesco. The company is also marinating a competitive image in the
grocery industry by offering cooperative workplace, teamwork, social networking, and community
linkages.

Figure 3: Maslow’s hierarchy of needs pyramid

Source: (Burnes and By, 2013)

Annually 3.5% Colleague Bonus Plan of base salary and 10% colleague discount after 6 months'
service are the example of esteem needs fulfillment by Tesco. It improves job satisfaction levels
and the degree of loyalty of employees to Tesco. With the philological needs satisfying employees
efficient productivity and the company’s growth can be expected easily. However, besides
employees' needs employment satisfaction and dissatisfaction are also very important in an
organizational context. For this purpose, Tesco also uses the two-factor motivation theory of
Herzberg. Appropriate recognition and compensation system enrich job satisfaction among
employees along with the commitment and loyalty level. Internal competition and job challenges
within Tesco boost productivity and efficiency. Proper promotional program and reward
mechanism in an employment increase job attractiveness and motivate employees to perform with
full potential. On the opposite side, Tesco is also ensuring better cooperative working conditions
and suitable supervision models by practicing accountability and transparency among the labor
force of Tesco.
 Figure 4: Herzberg’s two-factor theory
Source: (Mullins and Dossor, 2013)
Tesco’s administration evades poor supervision including stringent strategy and unnecessary
pressure. It maximizes the optimization of all factors of production including human resources
toward the company's long term objectives and sustainability. However, the company is improving
the distribution of responsibility among the workforce and poor security issues which can stimulus
the yield of the personnel most.

Task 2 Effective Cooperation, Concept and philosophies of

organizational behavior
LO3: Demonstrate an understanding of the system to cooperate effectively with
others. (P3 & M3)

Components of an effective team and an ineffective team (P3)

Teamwork is one of the vital prerequisites for the growth of any organization. In Tesco's context,
active, well-organized and striving team members, as well as cooperative teamwork, are the crucial
motive behind the gigantic achievement of Tesco Plc. Through regular monitoring the workforce
the company differentiate effective team from ineffective ones and take initiatives to ensure the
company's growth
Inefficient team objectives are so precise that all the personnel carry that and perform in to comply
with the objective. But within in incompetent team objectives are unclear and usually controlling
associates have many outlines. In Tesco the administration focus on the precise and understanding
of objectives by each team member for the firm's development. Conversation and participation of
each member in a team are encouraged by an effective team whereas this practice is judged
destructively and interrupted an ineffective team. Therefore, brainstorming of team members are
rarely possible and so new innovation within business is criticized in ineffective team
Tesco's administrators encourage the conversation and once in a month through executive meeting
every one of a team gets the platform to share ideas. This practice also ensures the company’s
better workplace environment and effective team management.
Moreover, an effective team focusses on the informal working environment for assurance of
relaxing and comfortable conduction of performance. On the other hand, ineffective teams practice
a formal working environment where team members get stress to do their job (Kim, 2013).
Discussion in an effective team is typically concentrated and members are spontaneously
contributed to the argument.

But in inefficient team discussion is avoided or less focused and domination by a particular party
is practiced. The ability to handle conflict is a comparatively higher ineffective team mechanism
than the ineffective team. Tesco believes that conflict within the organization is the ultimate effect
of discouragement of conversation. Therefore, the company encourages open discussion and
provide a comfort zone for all to share ideas. On the opposing, inefficient team system discouraged
or violently suppressed disagreements. This practice is severely discouraged by Tesco as it
hampers the entire organizational harmony of performance.

Table 1: Comparison between the effective team and ineffective team

Source: (Fisher and Fisher, 2016)
Team and group development theories to support the development of Tesco (M3)

Tesco Plc is one of the most diversified and dynamic grocery retailers in the world. The application
of team and group development theories in the practical situation of Tesco is very significant for
the prosperity of that organization.

Figure 5: Application of Tuckman’s Team building in Tesco Plc

Source: (Employment agencies and businesses, 2020)

For a dynamic and diversified organization like Tesco Plc Tuckman’s theory of team building is
considered as revolutionary approaches. According to this theory, performance and team efficacy
is the key parameter of judgment teams. Tesco classifies each team into five crucial segments
based on their functions. In the first phase, the Forming stage includes the only high impact of
the performance. The following stage storming of Tesco expresses the low impact of both
performance and team effectiveness. At this stage, Tesco mainly focuses on training and
development programs to enriched the human resource of their organization. After that at the
Norming stage, Tesco is expecting an exceptional outcome from the potential team. The impact
of performance and team efficacy is at the élite position in the performing stage. Team members
come forward with innovations and ideas. Tesco seldom maintains any adjourning stage where
the team is broken. Generally, Tesco encourages the team up to the performing stage to gain
maximum from the team performance.
 Figure 6: Team development Theory by Belbin
Source: (Geller, 2015)
Team development theory by Belbin typically categorizes the responsibilities of each team
member that a group eventually needs. In this theory, nine different types of team members are
enlisted into three major dimensions. The thinking segment of Tesco is comprised of three different
members.
The plant is playing a crucial role by explaining organizational objectives and set targets for a
specific period. Monitor evaluators regularly criticized the notions generated and practiced in the
shops of Tesco about the products and services. Specialists primarily have the responsibility to
perform their specialty to collaboration among the chain of shops of Tesco. Action division
comprised of the livewire peoples. Implementers optimizes the motivation and puts the ideas into
the functioning level for other colleagues of a team in Tesco. Complete finisher delivers all
concluding touches and rechecks the quality of products and services whether those meet purposes
and standards or not. People Management of a team is built with resource investigator, who
usually finds and manages required resources for the idea continuity. Resource investigators are
responsible for resource availability for the smooth functioning of the organization. They are a
crucial part of People Management of a team. On the other hand, the coordinator ensures a
friendly work environment and takes care of team members to maximize their productivity.
LO4: Application of concepts and philosophies of organizational behavior in
Tesco. (P4 & M4)

Tesco is considered as the market giant as groceries retailer around the world because of its
philosophical Ideologies. This philosophy is founded on different theories and concepts of
organizational behavior including the following.

Figure 7: Implementation of path-goal theory in Tesco Plc

Source: (Roberts, 2013)
Path goal theory is principally concerned about the productivity of a team based on the behavior
of a leader. As per the Path goal theory, the result of leadership behavior could be positive or
negative is depended on the external issues like subordinate and environmental contingency
aspects. Tesco Plc administrators demonstrate instructive and supportive leadership behavior
which indicates that most of the leaders are focused on achievement rather than being strict. With
the environmental contingency factor, an informal team structure is formed and the maximum
flexibility of functioning is allowed to the team in Tesco. But on the other side of the coin,
subordinate contingent factors increase the control over personnel production (Rollinson, 2017).
Tesco Plc has a good image of offering platforms to its employees to share ideas and innovations
as well as use their experience in the job. It helps the company to reach its customers more
efficiently and remain at a competitive advantage position.
 Figure 8: Implementation of Social Capital theory in Tesco
Source: (Levi, 2016)
The social capital theory can be practiced within Tesco’s organizational structure to eradicate the
disreputable status of the firm for not treating their staffs appropriately. To gain the loyalty and
faith of the employees' social capital can be optimized. For the promotion of a sense of belonging
employees of Tesco can be offered different incentives and promotional packages. Diversity in
the workforce as a multinational organization is a famous attribute of Tesco and the administration
encourages the collaboration of innovative ideas from a diversified workforce. The practice of
Values, norms, and ethics increases the faith and dependency of employees of Tesco on its
organizational culture. Reciprocity and participation are commonly practiced among the team
members of Tesco to augment maximum output. To move forward to the growth and maintain the
sustainability of this organization branding and promotional actives are very important. In will
help to expand the market of Tesco.

Conclusion
Tesco plc encourages cultural dynamism and diversity as British international groceries and the
third-largest retailer. Moreover, the giant company practices different motivational theories and
processes to motivate a large employee base. Currently, Tesco plc is serving their customer with
more than 450,000 employees globally and climbing to the height of the grocery industry (How
we do business, 2020). To maintain growth, the company considered the customers and employees
as the most valuable asset. For this purpose, the company is introducing different training and
development programs for their employees’ prosperity. Besides that, proper communication and
reward systems with appropriate allocation of authority and power can result reach the target.
References
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Fisher, J. and Fisher, J., 2016. How To Run Successful Employee Incentive Schemes.

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<https://www.tescoplc.com/about/how-we-do-business/> [Accessed 15 March 2020].