Behaviour in Tesco and Sainsbury - Case Study Example

Self Evaluation Having come up with a comprehensive evaluation of Tesco and Sainsbury's organisational structure, the now embarks on the task of examining their human resource departments. Previously, it was identified that the two organisations exhibit a very different form of organisational structure. Tesco was seen to have a much devolved system of making decision and governance. Decision making was shared between the top management and the lower one. The workers were given a chance to voice their opinions. However, in Sainsbury, decision making was seen to be much centralised. The top managers are the ones who make the most crucial decisions of the organisation. The workers and the customers have no say in the decision making process. The writer now looks at the ways that the workers of these two organisations are motivated by the human resource personnel. This will help the writer in identifying the weaknesses and strengths of each motivation procedure. This is very important considering the fact that the business that the writer wants to embark on will be in the line of these two organisations. Tesco and Sainsbury are the competitors that the writer's grocery store will be up against. In this light, it becomes very important to study the dynamics of two organisations that are at extremes; one a success while the other can be described as a kind of a failure. The writer will examine the motivation that the Tesco management uses on their workers to motivate them to be one of the best in the industry. He will also embarking on checking why Sainsbury workers are not as motivated. At the end of the examination, the writer will have a very good idea of how to motivate his workers. He will combine the best aspects of these two different giants while avoiding or modifying the places that the two had gone wrong. The first task will be to examine the motivation theories that the two sets of managers use to motivate their workers. The strengths and weaknesses of both will be noted. This will be made possible by an examination of the leadership styles employed by the two companies. The second task will be to identify the structure, nature and functioning of groups within the organisations. This is because groups and group dynamics is very important to the operations of an organisation. The writer will note the opportunities and threats that these groups and how they are handled poses to the organisations. Lastly, the impacts of the technology on the functioning of the groups will also be examined. Task 1: An Examination of Motivational Theories in Leadership within Sainsbury and Tesco Companies There are many leadership styles as there are leaders. The style that a particular leader opts to employ will depend on his personality, believes and convictions and also the situation under which he is operating. The type of leadership employed is very important since it is going to determine the fate of the organization: whether it will succeed or not. The different forms of leadership styles that are employed by different managers in motivating their staff account for the varying performance that is found between two or more organizations that employ different approaches to leadership. And this explains the different picture that is Tesco chain of stores and Sainsbury, both in Europe. They are both giants, as far as retail market share is concerned. But Sainsbury is more of a small giant in comparison with Tesco. The latter is the market leader in U.K. But Sainsbury comes a distant third, after Asda. It is not far fetched to claim that the difference between the two performances has been partly as a result of the different leadership styles that are employed by their leaders in motivating their employees. Task 1a: Leadership Style in Tesco and Sainsbury Tesco The word leadership in Tesco's context brings to mind the leadership style that is practiced by Sir Terry Leahy (Heller: 2005). This is the chief executive who has been on the helm of this giant since 1997 (Heller: 2005). Under his stewardship, this company has grown tremendously. It is important to note that when Leahy took the reigns of this company, it was making profits of approximately UKL 750 millions (Blyth: 2007). This is no small profit margin for any company. But then, good leadership takes the company from one level of greatness to the other, and this exactly what Leahy has done. In 2005, the profit that the company was making was well above the UKL 2 billion mark. One wonders then, what is the trick that Leahy uses to take Tesco from one glory to the other The trick is the kind of leadership that he employs, which have also been adopted by all the managers in Tesco. Leahy aptly defines leadership as it applies to Tesco Company. He says "(leadership in Tesco) is to cause to act, think, feel or behave in a certain way" (Heller: 2005). He goes further and says "I don't believe one can lead by central control or dictates. This does not apply to Tesco" (Heller: 2005). This captures the form of leadership that is practiced at Tesco. The style of leadership that is evident in Tesco is that of democratic or participative leadership. This is whereby all stakeholders are given a chance to articulate their views when a decision is about to be made (Mullins: 2008). But the person who makes the final decision is the manager at the top. However, when he is making this decision, he is informed by the input from the other people. The stakeholders may include the teams that are to be found within the organisation. These teams meet regularly and come up with suggestion which they put forth to the managers. The customers can also be consulted when making decisions. This is done through the feedback that is captured from them through the use of tools like customer satisfaction surveys. But perhaps the most important player in the decision making process is the worker. This is the person who is supposed to implement the decisions after they have been made. Including him in the decision making process is very important since he feels that he owns the decision making process and has some control over his work. And that is exactly what Leahy and his team in Tesco does: "We don't settle for one leader; we want many of them" (Leahy) (Heller: 2005). The managers at Tesco delegates most of their duties to the junior managers. The departmental managers have the powers to make decisions that affect the operations of the branch in which they operate (Blyth: 2007). This decision does not have to be sanctioned by Leahy or the top brass managers. Staff in every branch meets at least once per week. During these meetings, they are given a chance to air their views concerning the operations of the branch and what they think can be done to make the company even better (Blyth: 2007). Crucial decisions on the operations of the branch are made at these meetings. This democratic form of leadership that is practiced by Leahy and the top brass at Tesco has many advantages. First, the workers feel that they are not alienated from the company and they own part of it. This increases their productivity (Mullins: 2008). Since these workers are the ones that are in contact with the clients or customers, who are the beneficiaries of these decisions, they are able to make decisions that reflect the wishes of these clients. This is because the clients make their wishes known to those people of the company whom they come into contact with; the junior staff at the branch. Delegation of duty to the lower cadre managers also frees the time of the top managers. This means they are able to concentrate on other crucial matters to the business. This is why Tesco has been succeeding where others are either struggling or failing. But this form of leadership as practiced by Leahy and his stalwarts has one weakness: decisions sometimes take very long to be made (Cullinane: 2008). This is because the manager has to consult a lot of people before he comes up with a decision. Also, not all people are satisfied by the decisions that are finally reached at. This is because it is very hard for the manger to accommodate the wishes and whims of everyone. Those who are left out feel disillusioned and can derail the performance of the company. Sainsbury The form of leadership that is evident in Sainsbury can only be described as autocratic or authoritative. In this form of leadership, the top managers have immense powers over the operations of the company (Blyth: 2007). Power is concentrated in the hands of a few individuals. Employees have little or no control of the decision making process. The top managers make the decisions, which are then passed down to the workers who are supposed to implement them without asking questions. This can be seen as an extension of the family business practice that was carried out by the owners of Sainsbury before the 1990's. This was a family business, and as such, only the family members were to make crucial decisions that affected the performance of the company. This might have changed since the arrival of Justin King as the chief executive in 2004 (Seth, Pringle-Pattison & Randall: 2005). However, a closer analysis of the leadership structure will reveal that all Justin did was modify the autocratic structure of the company. A lot of power is still held by the managers of the company. They make most of the decisions affecting the day to day running of this giant. The workers are not given any chance to articulate their views. In 2005, the company held a refresher programme for its 1000 top managers (Blyth: 2007). If the leadership style was anything less of autocratic, the training should have been carried for all the staff, not just the managers. This was under the tutorage of Justin, an indication of the fact that he was inclined towards using the few top echelons managers to make decisions. The advantage of this form of leadership is that decisions are made faster as there are few people to be consulted. It is also a very good means of leading and inspiring new recruits, who are not yet qualified to make decisions. But the downside is that the workers feel alienated. They do not own the decision making process, neither does the customers. 1b: Motivation Theories Theory X and Theory Y This was proposed by Douglas McGregor in the year 1960 (Sandra: 2008). It is used to explain the motivation of workers in carrying out their work. These can be seen to be two theories in one. Theory X is of the view that people naturally are averse to work (Sandra: 2008). They will do anything to avoid work. The workers, for example, will take sick leaves and other form of excuses that will keep them away from the work place. As such, there is need to control them and prod them to work by issuing threats (Sandra: 2008). There are disciplined if they fail to show up for work. Some companies deduct the days that the worker was away from the work place when been paid. That is why managers who use this method threaten their staff that they will lose their job if they do not tow the line. Humans have an inherent desire to be directed, further postulates this theory. This is because they do not like taking responsibilities. The managers will thus come up with decisions that will be communicated to the workers for implementation. On the other hand, theory Y postulates that humans have a natural liking for work and to expedite their energy. They enjoy working and are motivated naturally (Sandra: 2008). A cashier in a supermarket will be motivated to wake up each morning and go to work because she likes it. People are not motivated to work by the threats and control measures emanating from their managers. This theory further states that if the job is satisfying enough, the managers have nothing to fear from the workers. The workers will be committed to the work as a result. People seek out and like taking responsibilities. The imagination of the workers can be very useful in solving problems that are related to their work. Reactance Theory This is another motivation theory that was proposed by Jack Williams Brehm in 1968 (Sandra: 2008). This theory is of the view that when an individual feels that his freedom is threatened "a motivational state referred to as psychological reactance is aroused" (Sandra: 2008). The individual will react to the threat posed on his freedom. Workers will react to rules that govern the number of days and hours they are supposed to be at work. According to this school of thought, the more the individual feels that certain behaviour is been limited, the more it becomes appealing. If on the other hand the individual identifies or feels that a particular form of behaviour is been imposed upon him, he will strive to do the opposite. For example, if a worker feels that the manager is trying to force him to stay in the workplace for six days a week, he will do anything to achieve the opposite. He will go to the extent of taking sick leaves such that he ends up working for five days a week. Simply put, people hate to be controlled and hate to have their freedom curtailed at the work place. This control and curtailing of freedom motivates the workers negatively (Sandra: 2008). 1c: Application of the above Motivation Theories in Management Practices at Sainsbury and Tesco I: Theory X and Theory Y Theory X can be seen as the form of leadership theory that is employed by Justin King and the other managers at Sainsbury. They are tough on their employees. Since they believe that their employees desire to be directed and they do not like to take responsibilities, they have opted to make decisions for them. All that the staff does is to implement the decisions that have already been made. This has been successful in one hand, considering the fact that prior to the 1990's, this company was making profits. It was been led at that time by one of the Sainsbury's, who was very autocratic. But it seems to be working against the company nowadays, given their lacklustre performance. On the other hand, Tesco seems to have adopted theory Y under the leadership of Leahy. They are giving their workers responsibilities over their work. This is by giving them the chance to make decisions in the work place. The managers trust the competency of their staff and know that they are motivated to take responsibility. That is why the staff and the lower cadre managers are allowed to make decisions that they feel are important to the running of the organisation. It can be said that the adoption of this theory by these managers has been a success. One just needs to look at the performance of Tesco to realise this. Ii: Reactance Theory Leahy at Tesco seems to have realised the negative effects of curtailing the workers freedom, whether in decision making or in any other part involving their work. The managers give the workers a chance to express themselves and take part in the decision making process. The workers feel that they are in control and are not been forced to do anything. As a result, they will be motivated to do what they feel is right. This seems to have borne fruits for Tesco, and can only be described as a success. The customers, since they feel that their inputs are important, and they are not been forced to consume Tesco products, have continued to be loyal to the company. On the other hand, the freedom of the workers at Sainsbury is curtailed, to say the least. This means that they feel as if the managers are trying to force them to do something that they do not want. Decisions that are made by the managers are forced on the workers and the customers. The workers are demoralised and they will try to do the opposite to prove to themselves that their freedom is still intact. That is why managers are likely to report higher cases of absenteeism. On the other hand, the customers feel that they are been forced to buy from Sainsbury, since their decisions are not taken to heart by the management. They will tend to do the opposite; shunning Sainsbury for Tesco and Asda. Task 2: Working with Others: Team Work, Groups and Group Dynamics in Tesco and Sainsbury Belbin Team Role Theory Before looking at the different groups that are to be found within Tesco and Sainsbury, it will be important to note Belbin team theory. This theory is very important in understanding the dynamics of any type of group within an organisation. This especially teams that are formed and tasked with the performance of a particular role. For instance, there are teams like the accounts department team, the management team and others. Belbin identified nine roles that individuals can perform within the team environment. These roles are determined by the behaviour pattern of the individual, such that an individual with a certain behaviour pattern is well suited to perform some roles than others within the group or team. When a person becomes aware of his strengths and weaknesses, he will be better equipped to understand the roles that he can perform within the group (Morgan: 2005). The upshot of this is that roles within the group will be performed by the better qualified individuals, leading to an enhanced performance of the team. Belbin identifies people who are better qualified to act, for example implementing and shaping the group's resolutions. For instance, a goal oriented individual will be very well adapted to shape the decisions that are made by the group (Morgan: 2005). The second set of individuals is those who are people skills oriented (Morgan: 2005). These are the ones who are able to organise and co-ordinate activities of the team. The third category of individuals in the group is those who are good at intellectual or cerebral roles (Morgan: 2005). These are the thinkers and problem solvers of the group. 2a: Groups and Group Behaviour The Johari Window Diagram This diagram is going to show how a working relationship can be developed between the individuals and groups. This is very important for a better performance of any group within an organisation. This diagram shows that trust can be developed between team members by been open with their colleagues. Feedback from others within the group is very important for self-understanding. The open area quadrant shows what the person knows about himself and also known by others about him. For example, Leahy knows that he is a qualified manager, and this is known by everyone in Tesco. The second quadrant referred to as blind spot represents what the individual does not about himself but others know it. For instance, Justin may not know that he is an autocrat, but the rest of the Sainsbury staff knows that. The third quadrant referred to as hidden area represents what the person knows about himself but others do not. A team member could be having domestic problems with his wife but the others do not know about it. The last quadrant referred to as unknown area is what the individual or the others around him do not know about himself. The people at Tesco may not know that Leahy is a very successful manager because he has a fear of failure, neither does Leahy know this. Tesco Organisations like Tesco are made up of individuals. It is these individuals who come together to form the organisation. Individuals, been social animals, tend to form groups. This means that within an organisation, one is likely to find several groups. There are different forms of groups that are to be found within Tesco. Workers come together to form groups on various grounds. There are those groups that are formed by the workers simply for socialising (Morgan: 2005). These are for example the groups that Tesco workers form as they take tea breaks. This might be a peer group, which is formed by people of the same age or who work in the same department. Others are more formal, for example the command groups that are formed within Tesco. These are made by the managers and their subordinates. They are to be found at departmental levels. For example, the IT department has a team that is led by a supervisor and his subjects. There are other form of groups found within an organisation and are referred to as task group (Morgan: 2005). For example, when a team is formed to solve the problem of workers strike, this is a task group. Other groups are the teams that are formed in the organisation. There is the management team, the IT team, the human resource team amongst others. The nature of the relationship and interaction between these teams is very formal. They interact especially during formal meetings, as opposed to casual and socially oriented interactions at tea breaks. The same applies to Sainsbury. The type and forms of groups that are formed within Sainsbury closely resemble those of Tesco. Workers meet and talk during tea breaks and lunch breaks. There are task groups formed to solve various problems within Sainsbury. This is for example the group that was formed in 2004 to pick a new chief executive in order to avert the looming take over (Heller: 2005). The nature of this group is that their interaction is also formal. But the groups that are formed during tea breaks are informal. There are also teams within Sainsbury. For instance there is the management team led by Justin King. These also interact formally. 2b: Factors Affecting Team Work There are factors within an organisation that leads to an effective team performance while other factors threaten the success of the team. Compatibility of the team members will lead to effective teamwork (Morgan: 2005). If the team members are able to get along with each other, they will succeed in their endeavours. If Leahy is able to get along with his assistant and other members of the management team, Tesco will be taken far. Another factor is the leadership quality of the group's leader (Morgan: 2005). If he is qualified in matters of leadership, he will lead to effective performance of the team. For instance, when the sports team of Tesco supermarket, like the one that attended the London marathon, had a qualified leader, they would have won the marathon. The qualification of the workers also affects the performance of the team. If the workers are qualified in their fields, they will perform highly. If the management team of Sainsbury is qualified, they will succeed in taking Sainsbury to the next level. If the team members are incompatible, the team will not perform. When Justin King cannot get along with his assistant, he will make the team fail. Again, if the leader of the team is not qualified, the team will not perform. And when the team is controlled so much such that they are unable to make their own decisions, they will be derailed (Morgan: 2005). This is what happens when the team is getting undue influence from the managers. If Justin King decides to lay down strict rules that the human resource team have to operate within, this may lead to negative performance. Also, the workers find it easier to communicate their dissatisfaction with the work environment via facebook and e-mails. 2c: Effect of Technology on Team Performance in Tesco and Sainsbury Technology impacts on the way that people operate in any given situation. This has been the same to the team performance within Sainsbury and Tesco. With the introduction of internet, the top management teams can now stay in contact via e-mails, facebook and such social networks. This is a positive effect as it has led to faster decision making process and cheaper one since people from different branches can now be in contact in real time. Leahy can conference via the internet or phone with his managers in America and Asia. However, this can be misused by the workers. It has been reported that many workers spend a lot of time on social networks like facebook and twitter. This is the negative effects of technology on the functioning of the team. The marketing team has made use of the technology advancement to place their products and brand in the market. Tesco advertises on facebook, on television and other medium. This has had a positive impact of raising the company's sales. But it has a negative impact of increasing the expenses of the organisation, since it is very expensive. References Blyth, A. N. Leadership Focus: Leadership And Sainsbury's Success, 2005. Retrieved fromhttp://www.personneltoday.com/articles/2007/04/24/40229/leadership-focus-leadership-brings-sweet-rewards-for-sainsburys.html; on 23rd June, 2009. Cullinane, W. M. Business Leadership: Styles and Cultures. Cambridge: Cambridge University Press, 2008. 187-234. Heller, R. M. "What is Leadership: A Profile of Sir Terry Leahy". The Path to Leadership: Developing a Sustainable Model in Organisations, 2005. Retrieved from http://209.85.129.132/searchq=cache:tsPuj8QjrXYJ:www.harveynash.com/pdf/2007/group_media_centre/P2L%2520.pdf+leadership+styles%2Btesco&cd=6&hl=en&ct=clnk&gl=ke&client=firefox-a; on 23rd June, 2009. Morgan, F. N. "The Individual, the Group and the Organisation". Journal of Personality and Social Psychology, 23(98), 2005. 42-47. Mullins, L. L. Essentials of Organisational Behaviour. New Jersey: Prentice Hall, 2008. Sandra, F. P. Motivation Theories. 3rd ed. New Jersey: Prentice Hall, 2008. 456-459. Seth, A. L., Pringle-Pattison, C. P. & Randall, L. G. The Grocers: The Rise of the Chain Stores. 4th Ed. London: Kogan Publishers, 2005. 174-185. Read More