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