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Organisational Behaviour & Efficient Business- Tesco

University: Kensington College of Business

  • Unit No: 12
  • Level: Undergraduate/College
  • Pages: 19 / Words 4814
  • Paper Type: Assignment
  • Course Code: BUS 501
  • Downloads: 712
Organization Selected : TESCO


Organizational behaviour is a formal study that helps to keep interacting with people in small as well as large groups. The main purpose of this study is to create more efficient business so that it will help to enhance the production level of a company. Moreover, it is also applied to the management of a workers too. The aim of present study is to abolish the influences of the organizational culture as well as motivation upon the behaviours and their performance in the workplace. Report is based upon a case study of TESCO which is one of the leading and largest retail company in UK who provide high quality products to their customers.

Report is divided into two part. In Part 1 it covers how organization's culture, power and politics affect the performance of an individual as well as team by applying Ravan power and Handy's model. Further it explain content as well as process theory of motivation by using Adam's equity theory that help a team of TESCO to achieve the goals of a company. In part 2 report uses Tuckman's model that helps to makes an effective team that opposed to an ineffective team. Further, report also describe concepts and philosophies of Organizational behaviour by using Path Goal Theory.

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P1 Presenting how organization's culture, politics and power can influence individual and team behaviour

Organizational Culture: It is concept that cover values as well as behaviour which further help to contribute the unique social environment of a business. It also influences the way people interact and create knowledge (Wilson, 2018). In TESCO to enhance the efficiency of their employees there is a need to to create a positive working culture and by applying Handy culture it can be influence the team as well as their team performance.

Charles Handy Model of Organization Culture: According to Charles, there are four types of culture which an organization is follow and this are mentioned below:

Power: In UK, there are so many organization, where the power remain only in few hands and they have a right to take a decision for the welfare of a company but in the case of TESCO, it is not. If such type of power is used then only few person enjoy some special privileges at their working area. In this situation they are consider the post important person and their subordinate have no option to strictly follow their rule. Even the manager of such type culture can be partial for someone.

Task Culture: this type of culture is followed where the team are formed in order to achieve the targets and they can able to solve some critical problem (Handy's Culture Model, 2018). In this, teams are also formed in order to achieve the defined goals of a company and it is a responsibility of every person to help or contribute at equal level.

Person Culture: In this type of culture, employees feel that they are more important for a company but in the same time, staff members are more concerned about themselves as compared to organization. As a result, company has to suffer and it will not easily achieve the target of a company.

Role Culture: This type of culture is actually followed by the TESCO because in this, all employees have their own responsibility and roles. In this type of culture, employees also decide by their own what best they can do for their company and they are also accountable for some wrong if happened by their own. As a result, power is also comes through such type of responsibility in a working culture.

Organizational Politics: It is a process or a method which is involve in human interactions that is further involve in power as well as authority. It is a tool that is used to influence the team as well as individual of a TESCO for their better performance. It is further divided into two types that affect the performance of employees and this are as mentioned below:

Positive Politics: If the organization can uses positive politics of an organization then it will be helpful for the company in order to raise their employees productivity level as well as maximizes the profit level (Elvira, 2018). In addition to this, it also help to prevent employees of TESCO from unnecessary conflicts. Hence, TESCO is also uses positive politics in order to raise their team efficiency so that it will help them to maximizes level of production.

Negative Politics: This type of politics directly affect the organizational culture in negative sense. Due to lack of communication, it will also affect the company's overall financial performance in negative aspect. Hence, disruptive politics in a working area can also involve through the opinion of others employees. Hence, it creates negative impact such as reduce the efficiency level of employees and also decreases the profit level too.

Organizational Power: It is a process that is exercise of the authority as well as delegated the authority of the employees. Further it is also means that power that influences the system of an organization. If the power of the company is strong then it will help them to achieve the well defined goals of a company. According to Raven, power is of five types and this are as mentioned below:

Legitimate Power: This type of power provides the ability in order to link some feeling of their obligation so that the responsibility of the management can be defined. For example, rewarding and punishing the employees for their work can be consider as a legitimate power. In this type of power most of the managers are also apply this into their working area so that they can easily convince their people for their better performance.

Coercive Power: This type of power are not helpful for the company because it means that to force people against their will, hence it main objective is compliance (Maiorano, 2018). As per Raven, the power can only be used in TESCO in positive manner when the manager will not uses coercive power in order to force them against their will because this may lead to faces many problems. Moreover, if leader may use different style in order to threat their employees for their better performance.

Reward Power: This power creates positive impact upon the employees of TESCO. Because by providing them rewards in the form of monetary then it will automatically affect the employees performance and this is further based upon an idea in which a manager of the company can easily influence them by promotion, popular form of raise and providing them compliments too. But in the other way, if the employee did not get any reward system for their better performance then it will be demotivate them.

Referent Power: it is another type of power that is based upon management and the skills which are used to convince the people for their advance performance. If the leader in a company follow this type of power then they consider as a role model. Responsibility in this type of power is quite heavy and there is a chances to lost of their power as well as position too. But in the other side, if the power is actually possessed by the leader then they has a good appreciation and also leads to lot of influences.

Expert Power: This type of power is possessed by those leader who have a good knowledge and have in depth information. This type of leader are quite intelligent and have trust to fulfil the roles and responsibility (Gray, 2018). The expert type of power is actually useful for those leader who have an expert knowledge in order to deal with the problems and also get appreciation as well as reward for their better work which is based upon their type of leadership.


Culture, power and politics all are directly influence the team behaviour as well as individual performance and in this way, they all are directly affected the performance of a company. If employees of the company work in positive politics with expert power then it will be beneficial for them to raise the working performance. On the other side, if the culture is also as per the role culture then the employees of TESCO will easily understand the roles and responsibility by their own.

P2 Presenting content and process theories of motivation

Content Theory: This type of theory are helpful for a people because they look for cause, sustain as well as behaviour. The main purpose of using this theory to motivate their employees (Mostafa, 2018). This is further apply to those who have a unique source of motivation. Content Theory are Abraham Maslow, Alderfer, Herzberg etc. This type of theory are mentioned below:

Maslow Hierarchy of Needs: This is most common form of theory and also describe the basic needs of the people such as they help to achieve the life as well as needs of the people. It is based upon five level of hierarchy which are as mentioned below:

Physiological need: This are the basic needs of the people which is needed for the survival. If this needs are not fulfilled then their actual motivation will not be raised. Such that if a person is lacking food, safety and love and they remain unsatisfied then it will be difficult for the person to survive and they are also overruled by this needs (Acevedo, 2018).

Safety and Security needs: If the physiological needs are fulfilled then there is another needs arises which are related to safety and security such as they all needs to be protected when they are working in their job. This needs also includes personal security as well as financial security and if this needs are also not be fulfilled by them then it will also demotivate them.

Social Needs: This are the another need of a person which is another important point and if a person is fulfilling from the physiological needs as well as safety and security needs then they are also need some social needs such as love and belongingness and if the people are remain unsatisfied then they may not create power (De Vito and et.al., 2018).

Esteem Needs: If a person in a society will get some respect and honour from other they it will be helpful for them to motivate them. Maslow is also divided this into two version such as lower as well as higher. Hence, it is most stable and the healthiest self- esteem which is also based upon from the respect from others.

Self- actualization needs: It is also reflect that the desire of the individual is used to grow and develop some more opportunities in order to their fullest potential and hence they also like to choose their own future opportunities for their own development.

Process Theory: This type of theory are helpful in order to explore how the behaviour of their employees are affected through motivational theory. This type of theory are actually helpful to an individual which are based upon this theory (Li, Hardesty and Craig, 2018). Therefore, the managers of a company are also uses this theory in order to raise the motivation skills by their own. This theory also supported by the research But on the other side, vague goals are not helpful to motivate employees. This theory are also helpful to achieve the direct goals of the company Its is of many type such as Equity theory, expectancy theory etc. and some of them are as mentioned below:

Adam's Equity theory: This is one of the most usable theory in Process theory such that it helps to keep motivate the employees only if they are treated at equal level and also receive the best and fair result. According to Adam theory, which states that if people are compare according to their work then they also get best benefit against and it may in a form of money as well as promotion (Sinha, 2018). If TESCO uses this theory in order to motivate their employees then it will be beneficial for them because if the employees are motivated then they will also help to maximizes their production level and the ratio of input and output will not be in inequitable.

This theory also work only in those working area where there is no discrimination and in TESCO the working culture is positive and in the same way, if an employee do their best in order to attain the goals of a company then in return they also get best result in a form of output such as promotion, provide them rewards. But on the other side, if there is an inequity exist, then it reduce the efforts, as well as quality of the work (Jonsson, 2018). But on the other side, if the person remains quite even in adverse situation also then it shows that the authority are not helpful them and it also creates negative impact upon many employees.


If this motivational theories are applied in TESCO then it will be helpful to raise the working efficiency of the company and as a result, it will further help to raise the production level of a company (Haines, Scamell and Shah, 2018). Moreover, as Adam equity theory also states that through this motivational theory there may be positive as well as negative outcomes and it can also affect the company's overall performance.

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These motivational theory are directly linked with positive culture, politics as well as power such as if the needs of the employees are fulfilled then it will be helpful for them to succeed in their future. The positive politics will help to keep motivate the employees and get the result in more effective way.


  • TESCO should apply Adam Equity theory in their work place because it will be helpful for them in order to raise the working efficiency of their workers.
  • The role culture of TESCO should be properly maintained such that it will help to assign job roles to each and every employee of a company.


P3 Presenting what makes an effective team to opposed ineffective team

Effective team: An effective team will help to improve the quality of services which are provided in TESCO. Benefits of an effective team is such that they are open in communication, takes decision fairly and are quite creative in order to address some goals. An effective team also help their team members to support and trust with each other.

Ineffective Team: This type of team are not successful in order to drive the efficiency and even not able to maximization in production level. They create less team focus and as a result, they also have lack in unity and even no self analysis because of less analyse and monitoring (Purwanto, Zuiderwijk and Janssen, 2018). Such an ineffective team are also have an unequal membership and the result are also do not achieves as per target.

Tuckman's stage of group development: By using Tuckman's stage of group development which also help to improve the efficiency of the group team development. If TESCO uses this model into the working area then it will be helpful for them because an effective team will be more efficient to complete the goals and attain the defined objectives in more effective way. In addition to this, there are four stages of team development which are as mentioned below:

Forming: It is the first stage of Tuckman's stage of group development in which there are different types of people are come in order to meet out the challenges and they all are agreed to share the common goal and also to tackle the task. In this stage an effective team members are behave in an independent manner and they are further motivated and are also uninformed to their future issues. An an effective team of the members are ready to share the issues then it will be helpful to create positive environment in the business culture (Thompson, Johnstone and Banks, 2018). On the other side, during an ineffective team who will not accept any changes in regards for the welfare of a company. The major aim of this stage is to concern with an orientation and discussions should be done and to grow from this stage, each members will also try to make their extra efforts in order to attain all goals of a company.

Moreover, in this little agreement on teams are to be done with an aim of provide clear and fair decision. Team members also ask many questions which should be answered by leaders and at the same time the process are also be ignored. Hence, it is cleared that through this stage, TESCO will try to make an effective team and also test the tolerance system of their leader.

Storming: In this stage the groups are sorted and also gain the trust from each other. In this stage the people will start performing their work and there may be a chances to create some conflict and can be identify some different hierarchies of their status in the group. If the environment of the team will be polite and positive then people are also pleasant towards each other. In this stage, leader of a team are actually describe different task to their subordinates. The purpose of the team making is clear in this stage but there may be chances for an effective team to arises some uncertainties. On the other side, in ineffective team they also avoid to face the problem in well manner (VandeWalle, 2018). The tolerance power in an ineffective team are also not up to the mark and without this, the team will fail and as a result, the goal of the company cannot be achieved.

Norming: In this stage, conflicts are not resolves and it may also lead to create some clashes and the spirit of their team members are also decline and it is quite necessary for the team members of a company to be aware related to their competition and through some effective team only they can share a common goal. On the other side, all the team members are actually responsible for their better work success. In an effective team, the leaders of a team are actually accept peoples in the same way as they are and makes extra effort to move on. The negative aspect of this stage is such that it may creates conflicts which as a result, create some controversial ideas.

Performing: It is the last stage of Tuckman's stage of group development under which an effective team of the company are actually perform their work and can reach through an expectedly high level of success (Ntoumanis and Sedikides, 2018). If the team perform well during their performance and be able to handle the decision making process without their support of the team leaders. Then it will be definitely achieve the target which are assigned to them. Even leader are also participate in order to see the actual performance level of their team. If the effective team of TESCO perform at high level then they will also help to enhance the level of production.


Using Tuckman's stage of group development which is helpful for the effective team of TESCO in order to achieve all defined goals of a company. Moreover, this theory also help a system to face many challenges and tackle problem for the welfare of company. In addition to this, if the team is effective then their working efficiency will also be raise and as a result, the production level of the company also enhances and can attain goals.

P4 Describing concepts and philosophies of organizational behaviour

Organisational behaviour is a subset of activities of management that is being concerned with understanding, predicting and also in influencing behaviour of individual in organisational setting (Coccia, 2014). It is also known as branch of social science that seeks in building theories that can be applied in order to predict, understand and also to control behaviours of individual in Tesco. Thus, the concept and philosophies of organisational behaviour within Tesco has been discussed as per below context-

Concepts of organisational behaviour:

  • Unity of command- the statement of this principle is that employee of Tesco must have one supervisor to whom they are directly responsible. Any employee must report to more than one people in organisation. This may lead to confusion or conflicts due to priorities from several supervisors at once.
  • Scalar principle- this refers to that line which is defined clearly as the line of authority that includes all employees in Tesco. If the cited company grows in size, then they tend to go taller as many stages of management are been added to them. This leads to increase in cost and also adds more communication layers. It may also affect the decision making as it consumes time that may lead to loss of customers and their contacts. It has been suggested that there must be clear chain of command in Tesco with authorities of high levels that includes top manager also.
  • Delegation- this means transferring of authority in downward that is from management to authority (Moerdyk and et.al., 2015). Thus, it leads to empowerment and employees that are involved has freedom in order to contribute ideas and also in doing jobs in the best and possible ways. Further, this involvement helps in increasing the satisfaction towards job of employees that later results in better job performance. In addition to this, having ability to delegate plays essential role in the success of the cited company Tesco.
  • Philosophies: It has been analysed that if the culture of the company is according to the employees then it will be helpful for the company to achieve the company's target. Such as by using path goal theory of leadership, the leader of TESCO will change their behaviour as well as fit for the working environment.
  • Path Goal Theory: It is the theory that is actual suitable for the leaders who can opt different leadership style in order to achieve the defined goals. The goal is to increase the employee's motivation and empowerment and satisfaction so that their production level of the company also raise (Gray, 2018). This theory is also helpful to detailed process such as through this, the employee characteristic can be determine and through different leadership style which can be helpful for the company to motivate themselves. Even, through this, the employee also focus on some motivational factors which help the employee to succeed. For example, if the leader also provide the structure which they actually need and they become less motivated.

It describe the four basic leadership style such as:

Directive: In this leadership style, the leader provide the guidelines and provide guidance to their subordinate and their better performance and leader also provide the reward for their well performance. Hence, this type of style is consider as a task- oriented one.

Supportive: In this type of leadership style, the leaders of TESCO are actually, supportive and displays some personal concern and for this type of leadership style also known as people- oriented leadership (Maiorano, 2018). Through this, leader of a team are supportive and and also display the needs of their company so that they all work together in order to achieve the common goal.

Participative: In this type, leaders are take decision with their team members and also involve their members also for effective work. They all share the information with each other in order to prevent them from any problem.

Achievement: In this, leaders are set their target in order to achieve the exact goal of a company and also motivate their employees for their extra effort and accomplish the challenges which are faced by their employees. Moreover, if this leadership style is opt by the company then the leader of a company believes that their employees are actually responsible for achieving the defined goals. It is also known as goal setting theory.

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Path goal theory help the people of TESCO to achieve the goals of a company in an effective way so that it will be helpful for them in order to raise the efficiency. If the concept of the organizational behaviou is achieve then it will assist TESCO to sustain its brand image in market. Moreover, this will further help to to influence the team in psoitive way (Elvira, 2018).


TESCO is also uses path goal theory and it will also help the company to raise their working performance and this further influence the working behaviour of their team members also. Hence, it has been critically evaluated that if the team of the company will be effective then it will be raise the financial position of the company and even all defined goals of the company are easily achieved.


By summing up above report it has been concluded that organizational behaviour is helpful for the company's growth. As the report concluded that organizational culture and power directly influence the performance of the company's employees and TESCO usess role culture in which every employee of the company have their own roles and responsibility which needs to be fulfilled as per prescribe time. Moreover, report also concluded that through Maslow theory of motivation the leader of a company will be easily motivated and can help to accomplish the goal in well defined manner. On the other side, through process theory the company can also provide some reward to their employes and if they put exact input then the output should be provide so that they will automatically motivated.

In addition to this, report also concluded by using Tuckman's theory, the team of the company can be developed and it will help to oppsed an ineffective team. Further report also concluded that through path goal theory, the leader of a company may opt different leadership style which are helpful for them in order to lead a team in positive way.

Work specialisation- the main and important concept of organisation is this that is been based on fundamental principle where employees of Tesco may work more efficiently if allowed in order to specialise themselves (Kitchin, 2017). This is also known as division of labour. Here, workers of Tesco perform task that is related to function that is specialised. Many of them are moving away from this principle or concept in behaviour of organisation. Because too much of specialisation may also leads in making employee isolated and also perform tasks that are small, narrow and boring. Further, if that particular worker of Tesco leaves the job, their knowledge in terms of specialisation may also gets disappear with time. Therefore, Tesco is enlarging jobs in order to provide greater challenges and also create teams that leads in rising interest towards employees and they can rotate among several jobs.
Chain of command- it is the line of authority that is unbroken and which links all person of Tesco. This also defines about who will report to whom. There are two principles underlying in this chain that includes unity of command and scalar principle.

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