An Analysis of an International Organisation using HRM
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The name Tesco was first initiated in 1919 by John Edward Cohen who
invested in his small grocery in the East End of London as a market
trader. Cohen become a successful trader and he decided to brunch out
to the other market traders. In 1929 the Tesco store limited was officially
founded , where by the name originally was given to a private-label brand
of tea in which Cohen sold, created from the initials of T.E. Stockwell, a
merchant from whom he bought tea, and the initial two letters of his sir
name(Datamonitor 2004).
Company overview
Tesco is the one among the largest company in UK dealing with food and
grocery retailer which is headquartered in Hertfordshire, the company
has successfully operate inside Europe, US and Asia and employs over
472,000 people(Datamonitor 2010).
In general tesco deals with foods and non- food retailer in the world
including gasoline, clothing, electric goods, house wares and alcoholic
beverages , It also provides complete online services through its
subsidiary , Tesco.com including Tescodirect .com and tesco.net.
However, in recent the company has introduced the Clubcard loyalty
card called Clubcard Plus, a Tesco Visa Card, and a Tesco saving
account.(referenceforbusiness 2007).
Due to diversity of products and apart from the online service offered as
mentioned above, Tesco operates under the four banners which are
Extra, Superstore, Metro and Express(Datamonitor 2004).
In 1995 Tesco compete Srainsbury's as the UK largest supermarket with
the market share of 15.6% of grocery retail market up to 2001 and was
the market leader. holds the leading position among the Grocery retailers
in Great Britain with market share that exceeds to 28% in 2004 (tescoplc
2010).
Besides of the supermarkets the company runs its business in England,
Scotland and Wales, also the company operates many super stores in the
rest of Europe, US ,Asia such as in Northern Ireland, Republic of Ireland,
Hungary, Malaysia, Turkey, Poland, Thailand, Japan, Czech republic and
Slovakia both operates under the Tesco brand names.(Tescoplc 2010).
SWOT ANALYSIS
A SWOT analysis can help to analyse the effectiveness and performance
of the company,by examining the internal and external forces that occurs
in the company (Mullins 2007),
In SWOT ,analyses the strengths and Weakness of the company in
relation to threats and opportunities that can occur in the company, and
the impact of the said analysis, the company must put much effort to
overcome the threats and weaknesses with the basis of decision making
and problem solving and on the other hand, to create a room for
increasing Opportunity and Strengths for the survival of the company as
well as to be in competitive position.
According to Zain,M(2008) stated that. SWOT analysis help the company
management to formulate strategies, and those strategies will foster to
increase profit of company and at the same times makes the employees
to adapt changes .
Therefore, the internal forces within the company will lead weather the
strengths or weaknesses and the external forces will drives the
opportunity or threats of the company.
The following are the SWOT analysis of Tesco company, by (Datamonitor
2010)
WEAKNESSES
Leading retailer win back the lost market share to discounters except Tesco
High cost of growth in central European markets compare to competitors
STRENTHS
Building sustainable business model
Gaining market share in non-food
Retailing services
Investment in IT to operate efficiency
THREATS
Economic recession
Low growth market reduces sells in non- food product.
OPPORTUNITIES
Strong growth in Asia markets
Increasing market share through online channel
Strong private label portfolio enables the company to effectively differentiate
Focus on fresh produce and convenience store format.
Figure 1:SWOT analysis of Tesco company.
Strengths
Building a sustainable business model
Tesco has successfully maintain its strategy of building business model
through diversification of new geography to expand business market
areas, and innovation of new product and services that attract market
demand.
Tesco increases operating business 8%GDP in 2000 up to 53% in this
year 2010,on gain profit for the international business Tesco generate
1.8% in 1997 to 22% early this year 2010. this strategy made the
company to grow faster and improve shareholder returns. On the other
hand, Tesco maintain the sustainability through the customer as its
strategy, Tesco's customer attracted through the unique way of using low
price ranges, discount brands and club cards program which make the
sales growth partially by 150-200 basis point compare to year
ago(Datamonitor 2010).
Gaining market share in non food
Tesco has developed strategy as to be strong in Non - food product as in
food with the quality, and affordable price for the customers (Tesco plc
2010).and as being international retailer, Tesco was able to undertaking
new non - food merchandise with competitive prices, the company grew
its presence through continuous selling non- food products and maintain
competitive advantage over the others retailer in the UK market like
Morrison and Sainsbury,
Non- food product is the leading grocery will make Tesco improve its
market share and lead for the primary growth of the Tesco
company(Datamonitor 2010).
Retailing services
Since the customers are differ in their need and availability for shopping,
Tesco company had offer more than one way of shopping like Tesco
Personal Finance which dealing with Visa card, home insurance, motor
insurance, pet insurance and travel insurance. Other services called
Tesco Telecoms which include Tesco mobile and Tesco talk and also the
use of online services called tesco.com.(tesco plc 2010).By introducing
variety of retailing services will enable the customer to provide the
simplicity to a complex market and provide the services on real time
basis, on the other hand, the Tesco will drive margin and provides
incremental sells.
Investment in IT to operate efficiency
Tesco has invested Information technology system to provide great
performance to the customer services and cost efficiency by
implementing self-service checkout which lead to less waiting lines for
the customer as well as the using of loyalty card in their phones.
Furthermore, tesco implements an in-house designed supply chain
application. more efficient ordering system and designed in-store
monitoring system which enable to monitor the availability of product in
store and reduce warehouse stock. Also Tesco invested a "Tesco digital"
a kind of software placed in help desk to respond customer queries and
problem which crop up, so as to improve customer service and customer
experience, and enable Tesco to retain customer as a key competitive
advantage.
Weaknesses
Leading retailer win back the lost market share to discounters except Tesco
During the downturn in UK, Tesco company left in disadvantageous
position and was unable to gain the lost market share after the four
leading market in UK which is Asda, Sainsbury and Morrison boosted
their shares. The biggest gain came from Morrison, taking its main users
to 14.5% from 12.6% where as Tesco lost its share 0.2% to 30.9%
High cost of growth in central European markets compare to competitors
Tesco operates a high capital intensive model in Central Europe compare
to the other competitors which lead to lower capital turnover that
pressurize the Return on Investment Capital (Datamonitor 2010).
Opportunities
Strong growth in South Korea, Chinese and Indian markets
Due to the company analysis information via (Datamonitor 2010)has
reported that, Asia is estimated to lead the world in terms of growth
rates, the estimated retail sales seems to increases especially in China,
South Korea and India where by those said country Tesco has several
invests, and they may made presents strong opportunity for Tesco.
Example in china the retail sales rose to 17.9% in January and February
2010,the growth in India since owing large population is a factor that
makes the retail sales will grow from $353.0 billion in 2010 to $543.2
billion by 2014.
Increasing market share through online channel
Tesco online customers has graduals increases and made the Tesco to
gain popularity .Over one millions of customers uses online shopping due
to the busy live and sometimes the difficult of transport(Tesco plc 2010).
The online channel made the Tesco to be the profitable online retailer in
the world, and expected to increase the growth of $48.8 billion by
2013(Data monitor 2010).
The company uses Tesco direct and Tesco .com, and they are about to
established two news addresses for clothing and entertainment.(Data
monitor 2010 ).
Strong private label portfolio enables the company to effectively differentiate.
According to Datamonitor (2010:12) has stated that, Tesco continue to
innovate to private label segment with over 2,6000 new or improved food
lines, which are goods, better and best ranges, and sell to price sensitive
to customer base. However customer likes to switch over to the premium
range. Through the innovation of private label brands enable Tesco to
curve a niche in the market and effectively differentiate and hence, will
make Tesco to improve the revenue and create competitive advantage.
Focus on fresh produce and convenience store format.
Tesco has invested stores ranges from small local Tesco Express sites to
large Tesco Extras and superstores, for the purpose of satisfies customer
needs.
According to thetimes100 (n.d) has tried to show the ranges of store
according to the convenience of customers or how the customers are
benefited.
The following are the store format operated in Tesco retail company (Tesco plc 2010).
Express: for convenience and value, fresh food located mostly near
homes and offices
Metro: Convenience in town city centres lots of food lines, designed and
targeted towars busy customer
Super store: convenience for a wide non- food lines, such as DVD's and
book
Extra: A wide range of food and non food lines that varies from electrical
to home wares. health and beauty, including seasonal items such as
garden furniture
Since the customer behaviour changes times to times, trend of eating at
home from the scratch, health and nutrition, as well as fresh fruits and
vegetables, all are available at Tesco company with the best quality.
Tesco company won the 'Fresh producer retailer of the year' Award in
2009.(Datamonitor 2010).The store formats effectively address the
increasing popularity of convenience store.
Threats
Economic recession
Tesco company still faces the hard times of economic downturn,
especially with the company competitors like Morrison, Asda, Sainsbury
and even Waitrose by loosing the customer base. Tesco work hard to
maintain customers base by discount range and sharper promotions to
defend itself against formidable competition, on the other hand, the
company tends to loose market share(Data monitor 2010)
Additionally, bbcnews (2009) reported that,Tesco's share of the UK
market dropped to 30.6% in the 12 weeks to 19 April, from 31.1% during
the same period in 2008, due to the recession where as other "big four"
supermarkets, Sainsbury's, Asda, and Morrisons all gained market share.
Sainsbury's grew from 16.1% to 16.3% of the market and Morrison
increased to 11.5%, from 11.4%.
Low growth market reduces sells in non- food products.
The Uk retail market is expected to low growth rates in the short term. In
2009 the market reduced by 0.4% and in marginal growth of 1.3%.The
low growth market will shrink the Tesco's sells and revenue as well as
competition in which several players compete in a small market growth.
SUMMARY
The Tesco - SWOT Analysis company is the essential source for top-level
company data and information that enable them to make proper decision,
and to overcome the weaknesses and threats and increases the
opportunity in order to provide company performance in the rivalry .
In tesco, Analysis examines the company's key business structure and
operations, and products. In operation, it seems that the economic
recession is the major factor for tesco to drop in market share but in
slightly, not only Tesco company, but also its competitors, but due to its
discount's strategy, it might the reasons why the company loosed small
market share, as shown in the threats as reported in bbc above.
For Tesco and other major competitors ,Asda, Morrisons, and Sainsbary ,
Tesco's expansion outside the UK increasingly focuses on smaller grocery
retailing formats and through internet retailing, makes the tesco's major
opportunities, that makes higher position compare to other company.
CHAPTER TWO
ORGANISATION STRUCTURE
Mullins(2007) explained Organisation structure is the pattern and
relationship among position in the organization and among members of
the organization .It define tasks and responsibilities, work roles and
relationships and channel of communication
Organization structure is the way a business is organized into different
functions or operational units, with lines of managerial responsibility.
(The times100 2010)
Both two's definition above, stated the Organization structure organized
pattern where peoples do their roles according to their skills and
responsibilities , communicate each other to facilitate working relation
ship between various section of the organization, for the purpose of
achieving organization goal, hence, the wrong organization structure will
delay the success of the organization
The organization structure depends on the organization's objectives and
the chosen strategies required to achieve them
Since tesco purpose is to save its customer, therefore., Its organisational
structure has the customer at the top level of this structure as shown in
the fig.2 below (The times100 2010).
Customers
Work level 1
Work level 2
Work level 3
Work level 4
Work level 5
Work level 6
Figure 2: Organisation Structure of Tesco Company
The organization structure of tesco company is comprised by division of
work and grouping of peoples in which there are six work levels within
the organization, gives a clear structure for managing and controlling the
organization .
The following are the brief descriptions of each work level in Tesco
company (The times 100 2010).
Work levels
Description of Work level
Work level 1
frontline jobs working directly with customers. Various in-store tasks,
such as filling shelves with stock. Requires the ability to work accurately
and with enthusiasm and to interact well with others
Work level 2
leading a team of employees who deal directly with customers. Requires
the ability to manage resources, to set targets, to manage and motivate
others
Work level 3
running an operating unit. Requires management skills, including
planning, target setting and reporting
Work level 4
- supporting operating units and recommending strategic change.
Requires good knowledge of the business, the skills to analyse
information and to make decisions, and the ability to lead others
Work level 5
responsible for the performance of Tesco as a whole. Requires the ability
to lead and direct others, and to make major decisions
Work level 6
creating the purpose, values and goals for Tesco plc. Responsibility for
Tesco's performance. Requires a good overview of retailing, and the
ability to build a vision for the future and lead the whole organization
Therefore, these are the basic activities of Tesco company which
complete the productive process and hence produce the required end
result.
Decentralization of Tesco Company
Due to its geographical separation of different parts that tesco group
operates, Tesco uses Decentralization organization as sksowe (2009) has
stated in its online articles when try to explain the difference in decision
making between centralized structure and decentralized structure, "An
example of a decentralized structure is Tesco the supermarket chain.
Each store of Tesco has a store manager who can make certain decisions
concerning their store. The store manager is responsible to a regional
manager".
Therefore, the decision making power for Tesco company will spread
responsibility for specific decision due to its division of work and
grouping activities as well as geographical separation of companies
business in Asia, India, USA and Europe. Where as In a centralized
organization structure, the decision making power is concentrated in the
top layer of the management and tight control is exercised over
departments and divisions.
For the company likes Tesco which operates under Private limited
Company , Decentralization is easier to implement because there is a
great demand for the accountability of their operations, regularity of
procedures and uniformity of treatment, compare with the public sector
organization (Mullins 2007)
A decentralised organisational structure has the following advantages:
senior managers can concentrate on the most crucial decisions, decision
making empowers and hence motivates the staff and increases their
output, it gives people a better understanding of their work environment,
including the colleagues and the customers and increases their
knowledge and experience, responses to challenges and changes are
much faster in a decentralised organisational structure and
empowerment brings more responsibilities and brighter changes of
accepting them and carrying them out more successfully.
Span of control
Span of control is a term used to describes the number of subordinates
who report directly to a given manager or supervisor (Mullins 2007).
The span of control become difficult to supervise effectively, if superior is
in charge of many employees who lead stress on the manager and
resulting in slowness to adapt to change. On the other hand, If the span
of control is too narrow, may present a problem in coordination and
consistency in decision making (Mullins 2007).Additionally, for the
manager to supervise subordinates effectively, the number of
subordinates in organization structure, at most should not exceed 6,
according to Mullins, V. A. Graicunas has developed a formula for the
span of control which help to determine the number of interrelationship
for the manager or supervisor to be attention with. The formula is:
R = n (2n/2 + n - 1)
Where R is the number of interrelationships and
n is the number of subordinates
Since tesco organization structure presented in Pyramid shape as shown
in figure:2 above, usually, In Most of the Organization the pyramid shape
represents the combination of span of control and chain of command but
it is difficult to identify the exactly number of span of control as in
hierarchical structure format (Mullins 2007), with this scenario the Tesco
company it has the span of control since the company published the
organization structure in Pyramid shape, therefore, it is difficult to
identify the exactly numbers of span of control but the company has got
six (6) levels. The levels represent the chain of command
According to Mullins (2007 ; 578) has defined the chain of command,
refers to the number of different levels in the structure of the
organization, the chain or lines, of hierarchical command, sometimes
known as scalar chain. additionally, the chain of command establishes
the vertical graduation of authority and responsibility.
There fore, for this aspect, the Tesco organization structure have six (6)
chain of command or line of authority, as it shown in figure 2, that
contains six lines of work level. The line of authority is necessary for the
effectives of the operation and provide proper decision making of Tesco
company.
In every aspect of organization structure, the organization structure can
be Tall or Flat structure. The distinction of these two's structure is the
representation of layers of command. For tall organization structure, if
the organization structure have several layers of command or line of
authority, The number of layers decreases the span of control and each
superior is responsible for few subordinates where as Flat organization
structure means the structure have few layer of chain of command and
each superior has responsible for a large number of subordinates (the
times100 2010).
Tesco company operates in Flat /tallorganization structure
The store manager has span of control over all the deputies who have
span of control of their section. When some thing needs to be done the
store manager would ask his deputies who would divide the work
between other workers following the chain of command. Tesco controls
its own massive empire. This could leave some weaknesses due to the
huge span of control and can suffer from bureaucracy
Organisation strategy
According to Thompson ( 2002) has defined the Organisation strategies
are the means to ends, and those ends concern the purpose and
objectives of the organisation. They are the things that business do, the
paths they follow, and the decisions they take, in order to reach certain
point of success.
It is difficult to run the organization without strategy, the organization
strategies will help the clients to focus on business strategies for those
dealing with business arena (company)or organization strategies. The
correct implementation of business strategy is essential step of achieving
high performance of organization or company regarding as the design of
organization structure is relies with business goals or organization goals.
Additionally, According to the Accenture(2010) stated that, the impact of
a merger or acquisition is powerful and long-lasting. Designing an
appropriate post-merger organization will help organizations to reach the
longer-term effects of a merger and realize the predictable output. In
order for the organization to attain its objectives as well as organization
goal, it is necessary to develop strategies that lead the organization.
On the other hand, the company may have good strategies and designing
appropriate post - merger, but the company fail to achieve them due to
the bad execution , decisiveness, follow-through, delivering on
commitments. Fortune Magazine dated 21 June 1999 reported that 70.%
of 10 CEOs fails to achieve the desired result because of bad execution
(Charan & Colvin1999).
For the company operates in the company rivalry and to successful it has
to choose to the strategies which is distinctive to the other competitors.
According Markides, (2004) explained that, "A company has to decide on
three main issues: who will be its targeted customers and who it will not
target; what products or services it will offer its chosen customers and
what it will not offer them; and how it will go about achieving all this -
what activities it will perform and what activities it will not perform "
Tesco company strategy
Tesco company has well established and comes up with the the Growth
strategy (Tesco plc 2010). The Growth strategy has strengthen the
business starting in central Europe, and starts to expand its market share
to Asia and recently in USA for the purpose of delivering and maintain
long term growth.
The strategy for broaden the scope of business was started 1997.Through
its Growth strategy ,Tesco comes up with the following objectives (Tesco
pls 2010).
To be successful International retailer
To grow the core UK business
To be strong in non food as in food
To develop retailing services such as Tesco personnel finance, Telecoms
and tesco.com
To put community at the heart of what we do
Source: Tesco corporate website (Tesco plc 2010).
The strategic business unit organizational structure provides Tesco with
flexibility to expand its operations in many different directions - it can
expand its electronics line in the Non-Food SBU without disturbing the
policies, practices or resources devoted to the International or Core UK
strategy which allows it a large degree of flexibility and customization
capability within the organization. It also allows the company to be
successful internationally, as it can choose its market entry strategy to
account for the needs of the new market, rather than simply mimicking
the existing competitors or using the home country marketing, branding
and business operation techniques (Tesco plc 2010)
SUMMARY
ORGANISATION CULTURE
Organization culture is also among the one's which affect the
implementation of organization goals and objectives in addition with
organization Structure and Organization strategy, Organization culture
help to account for variation among organization and managers both
nationally and internationally, It helps to explain why different groups of
people perceive things in their own way and perform things differently
from other groups. Every organization have its own unique culture
therefore Tesco company have observed to have the following different
cultures. (Mullins 2007).
Furthermore, Mullins (2007) defined Organization culture as the
collections of traditions, norms, values, policies, believes and altitudes
that constitute perverseness context for every thing the organization do
and think.
Also, The article on Value Based Management (2010) cited Sheins
(1996 )who defined the meaning of Organization culture "as a basic tacit
assumption about how the world is and ought to be that group of people
share and that determines their perceptions, thought, feeling and their
avert behavior"
There are numbers of ways in which to classify different type of
organization culture. Mullins (2007)mentioned four types of culture as
shown below
Types of Culture
Culture description
Power culture
This type of culture depend on central power source with the rays of
influence, Power and influence spread out from a central figure or group
within organization. Within a power culture, control is the key element
which start from the center into key individuals
However, this culture has its problems, lack of consultation can lead to
staff feeling undervalued and de-motivated, which can also lead to high
staff turnover(learn Managment2 n.d). Power Cultures have few rules
and little bureaucracy. Power culture usually found on small
intrapreneurial organization and relies on trust.
Role culture
According to (Learn management 2 n.d) stated that the type of culture is
common to most organization, due to the hirachichal beaurecracy ,
organization is splits into various function and assigned to the individual
as a role.
The role culture has the benefit organization specialization, in which
each employees works and do the individual roles according with the job
description. and hence, provide the productivity of the company. Role
culture ussualy organized in large company.
Task culture
This based to complete particular task, like in the organization , they
provide a project to complete particular task on date. A task culture offer
some benefits for the staff to feel motivated because they are empowered
to make decisions within their team, and also feel valued because they
may have been selected within that team and given the responsibility to
bring the task to a successful end.(learn management 2 n.d).
Person culture
Is where the individual is the central focus and any structure exists to
serve the individual within it. In this Person Culture, survival can become
difficult in the organizations, since the group of people knows that it is in
their own interest to band together to do their own thing and share office
space or clerical assistance. Example a group of architects, doctors or
consultant.
On the other hand, in the organization culture there are three levels of
culture (Mullins cited Schein (1996)). as shown in the figure2 below.
Three level of culture (Schain)
Visual organizational structures and process
Artifacts
Strategies, goals and philosophy
Values
Unconscious taken from granted believes, perception, thoughts and feelings.
Basic underlying assumption
Figure 2: Three levels of cultures (Schain)
Source: Value Based Management (2010).
The description of each level in the figure 2 above can be describes as:
Level 1: Is the most visible level of the culture called artifact and creation
the constructed physical and social environment, such as Dress, tools,
appliance, Written and spoken language and the overt behavior of group
members.
Level 2: This level called espouse values, the culture reflects from
learning from someone's original values, solution of how to deal with
original task, solution from problem then can transform on belief. value
and belief can justify action and behaviors toward strategies and goals of
the organization.
Level 3: The last level categorized in Basic underlying assumption, these
are implicit assumption which guide behavior and determine how group
member perceive, think and feel about things
.
Tesco company Culture
In the context of globalization, and Tesco is a globally and a huge
company it is very important for Tesco to develop cultures in two aspects
of culture, the organizational culture and the culture outside the
organization since a company operates its business globally , also it has
adapt the local culture of outside country.
Generally, Tesco cultures apply to the way they deals with customers and
also to the employees of how the company treat their employees, the
company has the following cultures (Tesco n.d).
Tesco company offers training opportunity for their people so as to suit
with the skills and ambitions, and if the graduate choose to apply in the
Tesco company, there is a guarantee that there'll always be someone
there to support the new employee every step of the way.
Tesco company's rule is " like to treat everyone the way they would like
to be treated" .This means that the aim is to give support to each other
through sharing knowledge, working as one team, enjoying work and
celebrating success.
Tesco Company provides a working environment to their employees by
giving them the chance to make the most of employees potential. And
giving them the chance to build a rewarding career.
Also Tesco provide the culture to deliver customers and employees
promises in three easy steps, making everything Better, Simpler and
Cheaper:
Better - for the customers by helping them with their shopping
experience which in turn means they want to keep coming back to us.
Simpler - for the staff to make the work more efficiently and with less
stress
Cheaper - by keeping Tesco's customers loyal and their staff happy.
However, In order Tesco company to provide good performance and to
maintain the business growth internationally, the company have to adapt
different culture of different country in which Tesco has invested.
Mullins(2007) argued that, "with greater International competition, an
understanding of national culture has become increasing importance for
managers with". By this scenario Tesco also managed to accept other
countries culture to provide business Growth as one among its
International strategy.
Example, the tesco operated in Thailand, the company developed a
culture where customers used to shopping at traditional wet markets,
interacting with vendors and rummaging through piles of produce to
choose what they want. Rather than adopting the Western approach of
neatly packaged, convenient portions. The Rama IV store in Bangkok
tries to meet local customers' expectations.(Tesco Plc 2010).
Identify Tesco Culture with Edgar Schein three levels model of culture
From the figure 2 above which mentioned three levels of organization
structure, Tesco company also has identified that, there are culture
which are also have classified according to levels. These are:
Level 1:
Artifacts include tools, appliances and clothes
Tesco introduced the self-checkout system in 2002, in order to save staff
costs and brings convenience to customers.
Tesco pride themselves on their staff uniforms with employees' names on.
Tesco has a strong concept of category.
Every store, they used to wear orange color
They used Slogans for customer advertising and to motivate employees
with the words"Every little help".
Level 2:
Example of the Scenario of espouse value in the level 2, in the case study,
Tesco used to apply in selection process in which company cope from the
other large organization procedures of the selection processes.
Example, The selection process in Tesco company
During the process of acceptance for the new employees Tesco conduct
Psychometric test and interview, in which Tesco company has follow this
pattern by many large organization. More importantly for Tesco, is to test
the interviewee if fit for Tesco culture , there fore, The interviewee is not
undergoing a quantitative test, but they are certainly being assessed for
cultural fit.
Level 3:
These are the Basic assumption which describes deeper dimension of
human existence, such as activity reality and truth. In this case study, the
basic assumption is external culture.
Internal culture is not the only issue that Tesco should deal with, but also
the external culture. External culture is playing more important role in
companies' oversea expansion. International supermarket should adapt
the different local culture in the world. So they can save the work of
training staffs to adapt the local culture, and the aim of using local
manpower
SUMMARY
Tesco company emphasis that to know the Tesco culture in advance
before applying for the job in Tesco company is important thing that will
make successes in the application. as the Tesco recruitment page says
"We aim to make the selection process thorough and challenging for a
number of reasons. Firstly, to make sure we employ only those people
who are right for the role and, just as important, who will fit in with
Tesco culture."(Tesco n.d) . there fore through advertising,
CHANGE MANAGMENT
INTRODUCTION
Change Management is the study of why organization need to change,
how change affects, and how to respond to changes in the environment.
Change management is an organized approach to dealing with
transformation, both from the viewpoint of an organization and on the
individual level.
In any organization, changes can be happen so as to improve
performance of organization, change can be studied in term of its effect
at the individual, group, organization, society , national or international
level,
In this paper,
Forces of changes
According to Mullins, (2007) organization can perform effectively
through the interaction of external environment in which the structure
and functioning of organization can perform. There are factors that
interrupt the organization environment and hence lead to reduce the
performance of organization. There fore , The organization must be
responsible to change so as to ensure the survival and success of the
organization.
Mullins, (2007) has mentioned the factors which forces the changes from
disturbing external environment of the organization, these are:
Political interest
Globalization and fierce word competition
The level of government intervention
Rapid development of new technology and information age
Uncertain economic condition.
Further more Mullins added that there other forces of change other then
of those caused by external environment as mentioned above, Also there
are other factors which caused by external demand of the organization it
self, so for the successful and organization rivalry, the organization has
to adapt with those external demands, these are:
Increase demand for quality and high levels of customer service and
satisfaction.
The changing nature and composition of workforce
Greater flexibility of the structure of the work organizations and patterns
of management
Conflict from within the organization.
Also changes within organization can happen within the organization
itself due to the ageing of material resource such as buildings, human
resource get older, or skills and abilities become outdated
Effective Management of change
Within the organization change can be initiated by managers and it can
evolve slowly in the department(Mullins 2007), which require thoughtful
planning and sensitive implementation, together with consultation with,
and involvement of, the people affected by the changes, without proper
consultation the problem may arise. Additionally, for the manager who is
responsible for change, has to make sure that Change must be realistic,
achievable and measurable for the purpose of achieving desired goals.
(Chapman 2010).
I n order to secure effective change in the organization there are steps or
action should be followed, according to Mullins 2007 cited on Kotter and
Cohen, There are eight's steps for successful large scale change.
Create sense of urgency
This means that, what ever the nature or size of the organization, you
have to talk or convince among the relevant people, make the people
understand the need to change, talk to them the risk and opportunity
that may occur before and after change respectively. and also get the
advise from the peoples regarding change.
Build a guiding team
After accepting the idea of change, the process starts, you build a team
with credibility, connection, reputations and different skills and
experience, that help to provide change leadership.
Create visions
By having the organization goals , you develop visions which are sensible
and having a picture for the organization, clear and sets the strategies,
along with visions.
Communicate
After you create a vision, make the people understand about the vision by
explain to them, publicity the created vision and strategy in the
organization, in order to induce understanding and commitment.
Empower action
Make sure the important people support the change so as to make
change persist by bring the change manager in the organization. And
remove obstacles that stop people acting on the vision.
Produce short term wins
Set aims that are easy to achieve - in bite-size chunks. Manageable
numbers of initiatives. Finish current stages before starting new ones
Don't let up
Foster and encourage determination and persistence - ongoing change -
encourage ongoing progress reporting, highlight achieved and future
milestones
Make change stick
Reinforce the value of successful change via recruitment, promotion, new
change leaders. Nurturing a new culture and developing group norms of
behaviour and shared values.
The Kotter's ideas is helpful in understanding the pressures of change on
people, and people's reactions to change Each stage acknowledges a key
principle identified by Kotter relating to people's response and approach
to change, in which people see, feel and then change(Chapmen 2010)
What caused the change in Tesco
.
ere are some rules for effective management of change. Managing
organizational change will be more successful if you apply these simple
principles. Achieving personal change will be more successful too if you
use the same approach where relevant. Change management entails
thoughtful planning and sensitive implementation, and above all,
consultation with, and involvement of, the people affected by the
changes. If you force change on people normally problems arise. Change
must be realistic, achievable and measurable. These aspects are
especially relevant to managing personal change. Before starting
organizational change, ask yourself: What do we want to achieve with
this change, why, and how will we know that the change has been
achieved? Who is affected by this change, and how will they react to it?
How much of this change can we achieve ourselves, and what parts of
the change do we need help with? These aspects also relate strongly to
the management of personal as well as organizational change.
See also the modern principles which underpin successful change.
Refer also to Psychological Contract theory, which helps explain the
complex relationship between an organization and its employees.
Do not 'sell' change to people as a way of accelerating 'agreement' and
implementation. 'Selling' change to people is not a sustainable strategy
for success, unless your aim is to be bitten on the bum at some time in
the future when you least expect it. When people listen to a management
high-up 'selling' them a change, decent diligent folk will generally smile
and appear to accede, but quietly to themselves, they're thinking, "No
bloody chance mate, if you think I'm standing for that load of old bollocks
you've another think coming…" (And that's just the amenable types - the
other more recalcitrant types will be well on the way to making their own
particular transition from gamekeepers to poachers.)
Instead, change needs to be understood and managed in a way that
people can cope effectively with it. Change can be unsettling, so the
manager logically needs to be a settling influence.
Check that people affected by the change agree with, or at least
understand, the need for change, and have a chance to decide how the
change will be managed, and to be involved in the planning and
implementation of the change. Use face-to-face communications to
handle sensitive aspects of organisational change management (see
Mehrabian's research on conveying meaning and understanding).
Encourage your managers to communicate face-to-face with their people
too if they are helping you manage an organizational change. Email and
written notices are extremely weak at conveying and developing
understanding.
If you think that you need to make a change quickly, probe the reasons -
is the urgency real? Will the effects of agreeing a more sensible time-
frame really be more disastrous than presiding over a disastrous change?
Quick change prevents proper consultation and involvement, which leads
to difficulties that take time to resolve.
For complex changes, refer to the process of project management, and
ensure that you augment this with consultative communications to agree
and gain support for the reasons for the change. Involving and informing
people also creates opportunities for others to participate in planning
and implementing the changes, which lightens your burden, spreads the
organizational load, and creates a sense of ownership and familiarity
among the people affected.
See also the excellent free decision-making template, designed by Sharon
Drew Morgen, with facilitative questions for personal and organizational
innovation and change.
To understand more about people's personalities, and how different
people react differently to change, see the personality styles section.
For organizational change that entails new actions, objectives and
processes for a group or team of people, use workshops to achieve
understanding, involvement, plans, measurable aims, actions and
commitment. Encourage your management team to use workshops with
their people too if they are helping you to manage the change.
You should even apply these principles to very tough change like making
people redundant, closures and integrating merged or acquired
organizations. Bad news needs even more careful management than
routine change. Hiding behind memos and middle managers will make
matters worse. Consulting with people, and helping them to understand
does not weaken your position - it strengthens it. Leaders who fail to
consult and involve their people in managing bad news are perceived as
weak and lacking in integrity. Treat people with humanity and respect
and they will reciprocate.
Be mindful that the chief insecurity of most staff is change itself. See the
process of personal change theory to see how people react to change.
Senior managers and directors responsible for managing organizational
change do not, as a rule, fear change - they generally thrive on it. So
remember that your people do not relish change, they find it deeply
disturbing and threatening. Your people's fear of change is as great as
your own fear of failure. alan chapman 2005-2010
http://www.businessballs.com/changemanagement.htm