This content explains the divisional organisational structure, highlighting its focus on products, regions, or markets. It outlines key advantages such as flexibility and innovation, alongside challenges like resource duplication and limited collaboration.
Organizational structure refers to a system that define how rules, responsibilities and roles are directed in an organization to attain the goals and objectives. Two organizational structure are divisional and matrix structure.
Divisional structure refers to a framework in which departments are build on the basis of products, region and territory. Within this structure, each unit has a divisional manager, who is accountable for authority and performance over their division. The structure furnish a targeted emphasize on products, market and regions correspondingly enhance agility and efficiency. The structure is suitable for the companies with wide range of products and operations in the diverse markets (Joseph and Gaba, 2020). Within this kind of structure, each division have a teams with particular skills, expertise around there particular area of focus. The advantage of the structure includes rapid adaptability as with the aids of this kind of structure, division can respond to market changes rapidly as they have high degree of autonomy. Another advantage is greater innovation as divisional structure have great freedom to test new ideas, make experiment and drive product innovation to particular market and customers. The structure is beneficial in enhance risk management as company have more control over risk when they are operate as separate division. Contrary to this, some of disadvantages of divisional structure are limited cross-functional collaborations as a result confined knowledge sharing. One of major disadvantage is duplication of resources as each department has their separate administration function like sales, marketing as a result increase cost.
Matrix structure implies an organization structure where teams report to multiple leaders. It consist elements of functional and divisional structure. In context to this, employees report to boss of function are as well as one of product and project manager. The organizational structure is beneficial for remain open communication within teams as well as aids organization to build more innovative services and products (Gutterman, 2023). The advantageous of the structure includes enhancing cross-disciplinary collaborations, leads to allow the company to maximize on it existing resources instead of hiring team members from outside. This structure benefits in enhancing efficiency, adapting market trends as a result responsible for better innovation. On the other hand, the use of the structure have some drawbacks as report to multiple manager can create a problem of slow decision-making. Also, the structure leads to increase workload on employees as they have to handle project and regular duties, sometime become reason for conflict.
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Organizational strategy implies well-defined plan as well as approach that enable the company to attain its objectives and goals. Tesco use a customer-centric organizational strategy, it includes furnishing quality products at cost effective price. In current era, all customers require products and services at low cost according to their taste and preference (Yuan et al, 2020). For example, in present time the customer become eco-conscious and health conscious as a result they required more healthy products. Thus, to satisfy the customer needs Tesco add healthy products in their product range as a result more shoppers able to fulfill their requirements at the affordable prices. Tesco make its organizational strategy considering Ansoff model. It aids in recognizing opportunity for increasing revenue and satisfying customer demands. According to model, Tesco focuses on market development to cater the needs of customer located at different geographical locations.
The organizational strategy of Tesco catering customers whenever, however and wherever they want to be. The strategy allows Tesco to rapidly adopting changing customer behavior and shifting to better channel of distributions to meet the requirements of the customers. In context to the strategy, Tesco provides effective online services to its customer, it online shopping app aids the customer to build shopping list, evaluate stock levels in store as well as book deliveries with ease. The customer-centric strategy enables the organization to make on time deliveries of products leads to enhance customer shopping experience.
In addition, to meet the demands and needs of the customers, Tesco use emerging technologies such as AI, automation for the purpose of product recommendation and product developments. With the help of technology, customer get recommendation according to their previous purchases leads to make ease for customer to shop their daily requirements (Iftikhar et al, 2022). Moreover, the customer-centric strategy of Tesco includes providing effective after sales services to its customers, it includes repairs as well as replacement of faulty products, addressing customer requirements, grievances in the prompt manner. Thus, the strategy of Tesco ensures that customer needs fulfilled by providing products and services as per the market trends and shopper`s needs.
External factors defined as an elements that remain outside the business but significantly influences company`s operations. In current time, the rate of interest majorly impacts the Tesco. Presently, interest rate in UK declines from 5.25% to 5% (Bank of England cuts interest rates, 2024). According to PESTLE evaluation, the cut off in interest rate positively influence company as it aids in increase revenue and profitability as well as provide opportunity for the business expansion. Now, company borrowed fund from bank to expand operation, product range. Due to factor, Tesco has opportunity to prioritize making investment in technologies such as AI and automation to operate its business smoothly, providing better online services, it aids in gain competitive advantage in the industry. This leads to make long positive impact on business.
In addition, economic factor inflation impacts Tesco. At present, the rate of inflation within UK was 2.2% in 2024 July, which is increase from last month (Inflation rate in the UK 1989-202,. 2024). This changes leads to influence the demand for the company`s product as increasing inflation leads to reduce purchasing capacity of customer correspondingly demands declines. In turn, this leads to become the reason of excess inventory and dead stocks as a result company lost revenue for the business. It acts as a threat to company profits and goals. This leads to build priority for the Tesco to contracts its supply of food items as the less demand increase chances of loss and wastage for the company (Dalirazar and Sabzi, 2023). Declining in inventory stock aids Tesco in reduce the chances of loss within a company.
According to PESTLE analysis, social factor majorly impacts the Tesco. Currently, customer shopping behavior change as they prioritizing bulk shopping as well as one-stop shopping. In addition, customer become more alert about the health issues as a result their demand for food changing rapidly and constantly (Rosnizam et al, 2020.). At this time, Tesco should prioritize increasing the number of non-food items for the purpose of sale to support bulk shopping behavior of customers. In addition, must include more organic product range including food, clothing. Thus, by prioritizing on this factor company will able to gain competitive advantage in the industry.
In the era of digitalization, the use of AI and automation increase in each industry, it leads to enable the company and people professional to manage its work and business operation in the efficient and effective manner.
Within the Tesco, AI and automation use for the purpose of inventory management, demand forecasting, developing better marketing campaign, smoothening work as well as making product recommendations. Within Tesco, AI driven tools such as chatbots and virtual assistance used to effectively response to the queries and complaints of the customer, prompt responses aids in enhance customer shopping experience (Razza, Quach and Thaichon, 2022). The introduction of AI tool makes working easier for the Tesco, with the help of addressing customer grievance company make changes accordingly.
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In addition, within Tesco, the AI technology is used to optimize the supply chain operations, with the help of this company effective make demand forecasting. This enable the organization to streamline its logistics and decline cost of operation. Moreover, currently people professionals within the company also use AI to enhance HR operations such as talent management, recruitment as well as declining administrative tasks. HR of the Tesco use AI for hire best candidate in less time. In context of this, selection criteria are selected and according to this profiles of best candidate filters. This help in recruit better candidate in less time helps in overcome the problem of workforce shortage.
The introduction of AI and automation brings several benefits to Tesco, it aids in increasing company efficiency and profitability by effective manage stock level, providing better services and conducting smooth business operations (Oosthuizen et al, 2021). On the other hand, job displacement is one of the major risk as introduction of technology declines the demand of manpower as manual work done by Robots. Thus, AI is aids in better and smooth operation within the company but make threat on job of employees.
Organizational culture defines as a system, values and belief that impacts employee behavior in the organization. Charles Handy`s organizational culture model outlines four kinds of culture namely power, role, task and culture. Each kind of culture differently influence behavior and motivation of employees. Four kinds of culture are as follows:
The Handy`s cultural model assist in motivating and bringing best from the employees. Tesco used role culture in the organization where each employee clear about their role and responsibility correspondingly they know about to whom they need to take order and to whom they have to report. Thus, the model enable people professional to build a better culture that empower employees and aid business to attain its goal.
David Rock SCARF theory is framework for effectively understand and evaluate the social aspects that activate several reward and threat responses in human brain. The model is used to influence the human behavior, it is a psychological motivation theory. The model have a five social aspect such as:
Considering the model, people professionals can understand the human behavior (Beard, 2021). Referring to the model, professionals can take corrective actions to positively influence human behavior by reward them appropriately as well as by effectively overcome the threat blocks.
Employee development refers to a practice of progressing employees in their career by providing them opportunities to enhance their skills and abilities. This leads to develop the knowledge of employees regarding new technologies, relevant subject matter of industry and aids in grow individual competencies among diverse areas. The employee development positively influences the organizational culture. The people professionals use several practices such as training and development, mentorship programs to build a positive organizational culture where all employees able to enhance their skill and knowledge appropriately. For instance, people professional of Tesco conducts training and development programs to develop the capabilities of its employees according to the changing environment (Paais and Pattiruhu, 2020). It provides training regarding to use of different technological tools, equipments and software. This practice leads to enable the company`s employees to become more productive as well as motivated. In addition, employee development declines the rate of turnover, absenteeism in the company as a results company able to focus on product innovation and remain competitive in the market. Effective employee development practices of the Tesco aids in build a trustworthy, collaborative environment leads to enable individual working in company to be fruitful.
In addition employee development also influences the organization behavior. Employee development aids Tesco in retaining as well as attracting the best employees. Training leads to develop the employees personally as well as professional manner, aids them to be more encouraging and high-yielding as a result boost high level of employee satisfaction. This leads to provide feeling of encouragement and engagement among employees correspondingly enable them to work with their full potential, leads to aids in boost the profits of Tesco. Tesco provides training to its employees including on-job training, off-the-job training, mentorship, job shadowing and so more. This aids the people professional of Tesco in knowing significantly the requirements of its employees to be remain productive and encouraging (Wood et al, 2024). Thus, the practice of employee development aids the Tesco in attains its objective in the significant manner. Further, employee development is helpful in increasing productivity, retaining current employee, as well as attracting new one .On the other hand, it is time-consuming and expensive for the organization.
The COVID-19 leads to change the working pattern as at that time most of employees work remotely. The employees of Tesco also work remotely due to the health risk. Presently, the company planned a change in working pattern, now it wants that its employees do hybrid working means wants that employees work at least two days a week on site.
To bring the change effectively at the workplace, company can use Kotter`s change management model. According to the model, to bring change of hybrid working within organization, Tesco has to follow 8 stages. These are as under:
The change of hybrid working within the Tesco significantly impacts the experience of the employees. The Kubler-Ross change curve model aids the organization in forecast about how employees react to the intended change. Each individual or employee reacts to a change according to the personality and experience. The stages are as under:
Workplace wellbeing refers to the various aspects of working life such as safety and quality of the physical environment, how employees feel about their work and so more. In other words, workplace wellbeing is a mixture of overall workplace feature such as supporting healthy behavior at the workplace, enhancing health outcome as well as strengthening workplace culture (Weziak-Bialowolska et al, 2020.). Workplace wellbeing plays an important role in improving productivity of employees. Within the Tesco, people professionals emphasize on using various strategy that focus on employee’s physical health, mental status as well as financial wellbeing.
At the workplace employee wellbeing plays a significant role as it leads to aids in decline absenteeism by preventing the causes related to poor wellbeing like stress, sickness and burnout. This leads to aids in protect the mental and physical health of employees correspondingly make them more productive. In addition, the wellbeing aids in enhancing the morale of employees. For instance, by introducing the employee wellbeing initiatives like mental health workshops, fitness competition, results in enhancing morale of employees. Also, enhancing morale is equal to high retention of employees. Workplace wellbeing aids in make more focus and attentive workforce. When individual feel more happy and healthy then it less likely to be distracted employees from work. Thus, investment by the company in maintain workplace wellbeing aids in represent fair and genuine care as well as support to healthy work-life balance to the employees as result beneficial in increasing productivity.
Good work implies a work that is rewarded in fair and just manner. It also includes furnishing opportunities to employees to enhancing their skills and capability. For instance, Tesco rewards its employees in the fair and equitable way according to their performance as a result employees feel motivated, the lack of bias at the workplace aids in remain the employees stress-free correspondingly aids in positively support wellbeing of the employees (Obrenovic et al, 2020). The company rewards its employees both in monetary and non-monetary manner as a result enable them to work with the full potential as a result positively impacts wellbeing of the employees. Effective workplace wellbeing aids in build a fertile environment that recognizes as well as supports the mental health of the employees. These become a reason for prevention of work-related stress and job satisfaction.
Employee life cycle model explains the key stages that an individual progress via when engaging with a company as an employee. The model aids in understand and creating better employee experience. The six stages of employee lifecycle are as under:
People professionals of the Tesco play a vital role at each stage of the employee life cycle. At the recruitment stage, HR is responsible for creating a job description for the vacant job position. Develop a recruitment plan to grab and attract the right candidate. After this, make screening and shortlist resume and then take interview of the potential candidate to make the right and better choice. At recruitment stage, on the basis of interview HR select and hire competent and skill employees.
In addition, HR professional of Tesco at the development stage furnish various learning opportunities to the employees. For this, HR implement training and development program in the form of on-the job, off-the-job, mentorship and so more, Moreover for the overall development of the employees HR professionals provides rewards and recognition to employees in terms of monetary and non-monetary manner (Sato, Kobayashi and Shirasaka, 2020). Also, professionals of Tesco at development stage use 360 degree feedback to evaluate and measure employee performance and accordingly provide them progress within the organization.
The role of people professional at the separation stage is crucial. At this stage, HR ensures that off boarding remain smooth for the leaving employee as well as organization. HR of Tesco conducts an exit interview to effectively understand the reason of employee leaving correspondingly able to make better actions. Also, fulfill duties regarding making final paychecks, collecting equipments, completing paperwork and so more.
Tesco`s organizational strategy includes offering quality products at affordable prices, whenever and wherever it is required by customers. The vertical integration implies a integration of the activities of HR with the strategy of HR and business. To attain the organizational strategy of the company, the HR use people practices to support the company strategy effectively. For instance, the people professionals of Tesco recruit the skilled and competent candidate who have expertise related to product development, innovation and good knowledge of the market trends, leads to assist in achieving strategy of providing quality products at less price. Further with the help of people practice of training and development, the HR able to sharpen and polish up skills and capabilities of its employees (Jones, Chesley, and Egan, 2020). For instance, the proficient skills of employee’s aids in decline cost of operation as a result company able to offer better quality products at less price. It assist a company in gain competitive advantage in the industry as well as in increasing revenue and profitability.
In addition, horizontal integration refers to integration of HR activities with each other, leads to enhance the impact. Tesco focus on the wider people strategy such as overall development, growth. Equity, inclusion, diversity and feedback for the employees. The people practices such as recruitment, development, talent management supports wider people strategies via horizontal integration (Nunes, 2021). For instance, to develop the employees company combines HR activities of training, compensation, talent management and so more. When the employees get training regarding using technologies, software it leads to assist in sharpen their competencies and skill. Moreover, the fair and equal opportunities to each individual bring equity within the organization. HR of the company recruit candidate without considering any biases related to age, gender, race or language correspondingly brings inclusion and diversity.
Thus, the vertical integration aids the Tesco in attain and support the organizational strategy to make the company more profitable and productive. On the other hand, diverse people practices support wider people strategies via the horizontal integration, leads to development and growth. The achievement of two strategies through two integration aids in overall satisfaction of employee and profitability of the company.
The internal customers of the Tesco include employees and managers who perform particular task to attain the goals of the organization. The people professional can use different processes to consult and engage with internal consumers to effectively understand their requirement of five day to four day working in a week. For this the best process is stakeholder analysis. This includes a process of recognizing the people involved in the decision, grouping them accordingly based on interest and influence and then communicate to each stakeholder. To consult and engage with the internal customers people professionals first develop relation with concerned people, explains their objectives, collect data to effectively understand their need. Tesco`s people professional includes all stakeholders mainly managers and employees in the decision-making process (Saks, 2022). First, for this, the people professional ask open question to the employees and communicate about the needs of the change from five day working to four day and take feedback and suggestions from the all individual. After, this the HR strive to evaluate the feedback to understand the problem regarding to more mental pressure, workload, lack of time for personal work and so more and accordingly take initiative for better solutions. When the professional give importance to open communication and feedback, it aids in better connect and consult with the employees.
Another process that can use by the people professionals to consult and engage with employees and managers are focus group procedure. Under this process, six to ten employees together share their interest and requirement of four day working in front of the expert by sharing their perception, reason and opinion regarding the change. After attentively listening to the internal customers need, the expert or people professional of Tesco evaluate the requirement of the change by discussing it with the top management and other professionals (Jonsson and Abukar, 2023). This aids in find a better solution as well as satisfied the needs of the customers. Thus, the process of stakeholder analysis as well as focus group aids the Tesco to effectively engage and consult with the managers and employees to understand their requirement of five day to four day working in the week.
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