Availability of resources is of concern in order for the employee to perform the task. Each store of Tesco has a store manager who can make certain decisions concerning their store. A five stage model of group characterizes group according to the following stages (Robbins, 2010): Forming: The group members do not know each other really well and there is uncertainty as to how to carry out the group work. If the company does not have the adequate resources available then performance will be affected in achieving the desired outcome. Non-Financial Methods to Improve Employee Performance and Motivation, Internal and External Influences on Corporate Objectives, Social Change: Consumer Lifestyles and Buying Behaviour, Edexcel A-Level Business Calculation Practice Book, Advertise your teaching jobs with tutor2u, Decisions are made closer to the customer, Decision-making is not necessarily “strategic”, Better able to respond to local circumstances, More difficult to ensure consistent practices and policies (customers might prefer consistency from location to location), May be some diseconomies of scale – e.g. Senior functional managers are responsible for allocation of resources but the responsibility for the total product is not allocated to one person but rather to a senior management group. Adequate base salary is not enough, and the company will have to use other approaches such as increased participation and teamwork to give them a sense of belongingness. If a member has the trait of conscientiousness, he/she will be working more independently and will take ownership of work rather than relying on members. An example of a decentralised structure is Tesco the UK supermarket chain. Factors that may promote teamwork effectiveness are (Kreitner and Kinicki, 2008): Shared leadership: When leadership is shared, it means that there is a formal leader, but the leadership functions are shifting from time to time. Also, managers will plan resources accordingly to ensure that employees have the necessary resources required to motivate him/her to perform a certain task. Hotel chains are particularly keen on using decentralised structures so that local hotel managers are empowered to make on-the-spot decisions to handle customer problems or complaints. Get the latest and the greatest news delivered for free to your reader or your inbox: Social Media Marketing suggests the Power of Word Of Mouth, Reform taken in India to restore economic growth. The store manager is responsible to a regional manager. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. Marketing: Cultural, Social, personal, and now Neuroscience? Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs. Norming: At this stage, the members have developed a mutual understanding and are defining group norms. It will also help in avoiding any discriminatory practices or biases that promotes inequity in the organization (Jex and Britt, 2008). duplication of roles, Consistent with aiming for a flatter hierarchy. Each store of Tesco has a store manager who can make certain decisions concerning their store. Attitude is another factor that affects the individual behaviour of a person. Each supermarket has a store manager who can make certain decisions concerning areas like staffing, sales promotions. Learn How to Order Essay Online. in a crisis)? Your email address will never be published. For instance, the sales department at Irish Tesco will be operating within the larger system of organization. Coordination occurs through agreed organisational procedures, detailed specifications and regular meetings both ad hoc and structured. The diagram below shows three different ways that organisations make decisions; centralised organisation, vertical decentralisation and horizontal decentralisation. Empowerment makes it easier for people to accept and make a success of more responsibility. Along with that, managers will be able to better design performance-based reward systems on the basis of expectancy theory, if low performance has been due to low expectation of a reward. An example of a decentralised structure is Tesco the UK supermarket chain. In other cases, where groups keep on performing on continuous basis, this stage is not relevant to those groups. Such leadership style will help in clarifying roles of employees in the organization and make their job descriptions more clearly by structuring the tasks required. Good examples of businesses which use a decentralised structure include the major supermarket chains like WM Morrison and Tesco. However, in some industry such as the banking industry, many financial information and client information are confidential. West Yorkshire, According to this theory, the motivation of employee depends on his/her expectancy about being able to do a certain task and achieve the outcome desired. We’ll occasionally send you promo and account related emails. If an individual gets so wrapped up in trying to fit the mould of what they interpret their role should be in terms of organizational theory, they may start to neglect other areas of business. The two factor theory states that motivation is based on either the hygiene or the motivators. They also help in deciding when to have a monetary reward system and when to use non-monetary rewards such as appreciation letters. One example of following organizational theory in the financial sector would be an employee or manager who wants to know how to achieve goals by having a set structure to follow. Empowerment can be defined as giving the employees the responsibility of what they do. Irish Tesco always had intense competition with Pepsi, so implementation of new strategies to benchmark Pepsi along with proper leadership style can help in improving performance. Impact on Performance in Tesco Every member of the team is willing to take ownership and participates in active decision making, which helps in abiding team norms and achieving desired output effectively. In this approach it is assumed that systems are man-made. Action is based on behavior outside so organization needs to integrate with the environment and it is implied that no action can be universal, it varies from situation to situation. The group behaviour also largely depends on the stage of group development. Divisional organisations are commonly divided into smaller units of operation with each division being aligned to a sales or production unit with supporting sales, production, finance, HR, and marketing resources operating under a departmental manager but responsible to the unit manager and then upwards. 214 High Street, The team members can communicate with each other through emails, instant messaging, videoconferencing, groupware, etc. Individual behavior at Irish Tesco is affected by factors existing within him/her such as personality, attitudes and perception. Decision making is a form of empowerment. Highly conscientious people set higher goals and are more committed to work than others. Likewise, cross-cultural teams are also formed, which may help in promoting diversity and expanding operations of the organization across the globe. Structuring will help individuals understand what is expected of them in the job they have been assigned and how they need to go about it (Nelson and Quick 2007). In addition, a centralized structure allows a faster, easier to undertake organization-wide activities. The store manager is responsible to a regional manager. Decision making is a form of empowerment. Attracting Motivating And Retaining Generation Y Management Essay, Importance Of Wellness Programme In Organization, Analysing Project Leadership Teams and Group Dynamics, CustomWritings – Professional Academic Writing Service, Tips on How to Order Essay. Many people strive to adhere to the theory to help them become better at their jobs or more successful in life, although this may lead to them having to sacrifice some of their personal principles in order to succeed. Technology has helped in the creation of virtual teams within Irish Tesco that might have its operations nationally located. Who provides strong leadership when needed (e.g. In the same way, management theory may also underpin the personal values of some individuals. An example of a decentralised structure is Tesco the supermarket chain. Various motivational theories exit that assess the impact of different motivational variables on employee performance: The Maslow’s hierarchy of needs theory addresses the needs of employees one by one, the physiological needs have to be satisfied first, before the employee shifts on to the next need levels, which will be safety need, sense of belongingness, self-esteem and finally the self-actualization need. Traits ultimately affect behavior of an individual. Organizational Structure Matters – Tesco embraces idea of Decentralization, Uncovering the Truth on Apple’s Supply Chain, “It is uncomfortable, but what makes our job interesting is that it’s not routine.” – Carlos Ghosn. For instance, the sales team of Tesco can be physically dispersed in different cities and can plan on promotion strategies to meet global competition. Are they actually putting 100 percent effort into their work? Empowerment can increase motivation and hence increase the labour output. This will need to consider how fairly the company is treating the employee and how ‘fairly’ the employee is treating the company, i.e. These groups are formed as a result of social interaction occurring within the organization such as a friendship group or an interest group. This approach emphasizes on greater productivity through motivation and good human relations. Good way of training and developing junior management, Harder to achieve tight financial control – risk of cost-overruns.