Organisationa Behavior: A Case Study of Tesco

Introduction of Organisational Change & Innovation in Tesco

Change is a general transition or a getting into a new phase, it is an act or a process of becoming or making something different. Organizational change is defined as the modification in the technology, structure, or workforce in an organization or any kind of shift in behavior all are part of organizational change (Georgaliset. al. 2015)

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There is a requirement for change in every organization because there is a light of hope for development and enhancement given sustaining the position of the company in a competitive market. change is important in improving the satisfaction of people's economic requirements (Lau et. al. 2015) Change plays an important role in enhancing the profitability of the organization and helps in promoting employee satisfaction and ensuring the well-being of the workforce.

The report is made to discuss the importance of change in an organization. The report has been conducted to recognize the importance of innovation in an organization and how it affects the working of the organization. To develop a detailed understanding of the innovation, the report is considering Tesco as the case company.

Figure 1: TESCO

For the understanding role of innovation with effects on organizational behavior, the report is considering Tesco as a case company. Tesco Plc (Tesco) is a popular multinational retailer company of general products.Tesco is headquartered in Welwyn Garden City, Greater London, and the UK. The company runs its business in multi-format stores and also on online platforms. Tesco focuses on operating stores in several set-ups illustrate by the several range and size of products sold in stores (Aielloet. al. 2020). Tesco provides a wide range of food products and also products that is not related to food like household goods, grooming, cosmetics, consumer electronics, clothing, pet’s products, bakery products, etc. The company also deals in providing consultancy services, insurance services, and retail banking through Tesco Banksestablished the UK.

(Source: Forbes, 2016)

Selection of Change

For understanding the importance of change report is considering innovation as the selected change. Starting with understanding the meaning of innovation and its importance. Innovation is the most important than ever in today’s world, for every company to be different from all its competitors (Souto, 2015). Every business leader needs to focus on the most important factor which is an innovation which further helps in keep evolving the demand in the market. There are lots of companies in the market that may have been the industry leader decades ago but their refusal to adopt change and technological advancement turn the companies into a big flop. Innovation is simply the creation of something new and different, innovation can be of so many kinds like

• implementation of new ideas
• launching new products or services
• updating their current products(Visnjic al. 2016)
• solving existing problems in the business
• working on customer experience

Perception of Change in Organisation and Effects on Organisational Behaviour

Perception refers to the ways a person look towards the world and interprets the information they gathered. It is the intuitive thing that every individual brain does and depends on the capability to pay attention to the surrounding. In the case of organizational behavior perception often helps in shaping the employee's personality and the ways of their actions in certain situations. Perception of employees can affect their reaction to any situation which further reflects in their performance and also in their thinking and decisions(Besteret. al. 2015). Management of being attentive to personality behaviors in employees could help to regulate the person's work strength and ethics. Innovation also plays a very important role in changing the perception of people in an organization, as innovation brings new ideas out of the people and encourages them to change their perspective regarding working culture and also their behaviors.

• The link between people's perspectives and the innovation

Innovation affects the ability of people in expressing their competence to interact with others, the ability of people in being active rather being passive, and also influence people. People’s perspective is the view in which the individual sees the change, this comes from the personal point of view of an individual which is shaped by their life experiences, values, state of mind, and also assumptions they take regarding a particular situation. Innovation has played a very important role it helps in the improvement of skills of the individual which helps in decision-making and gaining promotions in the organization. It also has made communication easier than ever before, shifted the ways the organization's workplace environment looks, and the most important change that innovation has bought is that it allows top management and employees working in the organization to be more organized and encourages them to work efficiently. Innovation plays a very important role in business

• Staying ahead of disruption – innovation means keeping the track of the competitors and also tracking the market's direction given potential disruption or alteration in the demand of consumers (Chenhalland Moers, 2015). Innovation allows businesses to be on top of consumers' information and lead the market.
• Improving brand image – now a day every consumer does research before buying a product, so having a good brand image is very important for every company. Utilizing digital marketing strategies for boosting the reputation of the company in the market.
• Attracting and retaining top talent – companies that have a good image in the market of being innovative also help the company to attract top talents from all over the world.

• Employees will behave differently because of the change because of differences

Innovation has a great impact on employees' behavior and their work. Innovation has reliably changed the ways of employees' jobs across every industry. Innovation affects both the personality as well as the perception of employees. Some factors that the innovation has affected are as follows:

• Personality: in today's life employees need to adopt innovative skills along with professional skills. These skills help in the improvement of the personality of employees which also reflects in their performance. Innovation advancement in the personality of employees is as follows:
• Promotes smooth collaboration

• Effective communication (Attiq al. 2017)
• Enhance the problem-solving capabilities of the employee
• Helps in improving time management skills

• Perception: perceptionin humans are the procedure where sensory encouragement is translated into organized knowledge. Every employee has a perception regarding the innovation whether is good or bad for them or thatthere is various innovative advancement that might result in the loss of their jobs, this innovation may be like more involvement of robots and machinery in the workspace (Khalili, 2016). Employees in the organization have the following perspective regarding the innovation change:

• Change in innovations is part of societal change also
• Innovation helps in changing the opinions of the individual
• The most effective effect of this change is that it helps in improving communication

Discuss the Change that has happened and the benefit to the organization

The case company Tesco has so many competitors companies like Sainsbury's, Asda, Morrison, and Iceland, these companiesalways looks forward to launching new and different products for attracting customers. But the management of Tesco is always planning of introducing something different and out of the box, the company looks forward to introducing an innovation that might in form of innovation could decrease the staff, save time and cost for the organization, and able to provide efficient services in process of attracting the customers. So after analyzing all the related matters and considering them the Tesco innovation managementdepartment has announced an innovation in the forms of online ordering and self-checkout, these devices are part of the innovation that Tesco has made and also new technology.

Tesco is the first organization in the retail business that introduced online ordering and self-checkout tills. It was the biggest innovation in Tesco and also in the retail industry, and with the help of this innovation the company becomes the 3^rdbiggest retail company in the world. The two major innovations that change the perspective of the company as well as its customers are

Self-checks outs tills

Tesco is the foremost organization that presentedself-checkout tills in the retail chain industry. The major benefit of these tills is that customers could easily scan their purchased them without any involvement of the staff and these tills were used for small and large orders (Wongaussawarit and Patterson, 2018).The company also provides the convenience of automated checkout machines for the customers, by which customers now can easily use tills which further saves the customer time and the cost of hiring staff. This innovative idea of the management team is very helpful in attracting customers and helps in increasing profits.

Figure 2: Self-checkout at Tesco

(Source: Ian Quinn, 2022)

Instances of Online ordering

The instance search refers to the process in which if anyone writes" Tesco" in the search Google the result of that search will show all the relevant detail of the company will be shown like offers, Bog, Voucher, Menu, Coupons, Club card, Home electrical, etc. all the new as well as the old customers can easily select the field of their choice and can get all the appropriate information which connect to the customer to the company (Coe et. al. 2017). The website of the company also provides its customers a very easy way of ordering online, provides the location of the nearby stores, feedback system, food guide, events, information regarding memberships, and also information relevant to business, etc. The websites like Tesco.comdescribes how Tesco is providing facilities to its customers. For example, if any customer enters the postal code on the website of the company they can easily get the information of their nearest store, phone number, address, and also information about the special offers.

Cause of the Change

External (PESTEL Analysis)

External factors are the factors that are outside the business which have a huge impact on the working of the business and its success. The impacts of external factors are both kinds positive and negative. Every business has no control over the external factors, they just work on strategies to deal with them and make decisions accordingly (Muscaluet. al. 2016). For measuring the impact of external factors organization uses PESTEL analysis, it includes political, and economic. Social, technological, environmental, and logical factors have huge impacts on organizational strategy. Some more important external factors which have effect on the organization are as follows:

Internal factors

The internal factors of an organization comprise factors that are present within the organization and that impact the success and goals of the organization (Rosnizam, et.al 2020). The organization has full control over these factors. Some of the important internal factors are as follows:

• Designing new products and services – The Company is looking forward to designing a new application for grocery shopping; The Company’s internal team is already working on this project.
• Low performance and morale – The Company always try to boost the morale and performance of its staff and worker by motivating them. Encouraged employees are more likely to focus better and are less likely to make mistakes which helps boost employee morale.
• High stress and staff turnover – Staff turnover of the company is quite impressive as the figures display the average number of individuals employed by Tesco in the UK from 2012 to 2022 was around 326 thousand. It is very difficult for the company to manage such high staff, so the company has divided various sectors accordingly.
• New management team – Company has the strongest team of management which is provided by the overall management process which has a huge impact on the company. The management team impacts the directive, authoritative, and participative in the company.
• Inadequate skills and knowledge base- Company provides training and knowledge to all untrained employees, for improving their productivity. Employees of the company need to have adequate skills and knowledge.
• Innovation in the manufacturing process – the company is continuously investing in technology to develop its manufacturing process. The company is focusing on full digitalization

SWOT analysis

Strength

Strength refers to the positive things of an organization; it helps to compete with the competitors of the organization. Company’s strength might attract customers (Sharmaa et. al. 2020). This strength provides a good profit and also helps the company to retain for a longer time in the market. Tesco has a very good strength which makes the company in a good position in the market. The strength of Tesco are:-

• A huge parking space
• Gives good offer
• Cheap price product
• Good Infrastructure
• Easy to accusable
• Online Shopping available
• Available all over
• Club card system
• Self Check out machines

Weakness

Things that competitors have but the Tesco do not and are not able to use, which can be a weakness, and the factors that affect negatively the business. Therefore, an organization needs to find out its weakness and work on them to achieve goals and to run a smooth business. Tesco's key weakness are .

• Is the use of technology
• Unskilled Staff
• Poor Infrastructure

Opportunities

SWOT analysis provides a company to find out the opportunities within the market as well as in the organization. It provides a clarified vision of the company's particular state (Moura, 2021). So it is very easy to plan on making strategies regarding decision-making for the achievement of the desired goal for the company the main opportunities for Tesco are as follows:

• Expansion in various regions of overseas countries like the US provides great opportunities to expand the company’s business
• Globalization provides all the opportunities by covering all untouched areas of the world.
• Online platforms are the best opportunity for Tesco as the company can sell its products everywhere.

Threats

Threats refer to the factors that can cause a problem for the company. threats include competition, leakage of information, mismanagement, and less production than demanded in the market is also bug threat for the company, and fluctuation in the exchange rate is also a threat for the company.

The internal factors of an organization comprise factors that are present within the organization and that impact the success and goals of the organization (Rosnizam, et.al 2020). The organization has full control over these factors. Some of the important internal factors are as follows:

• Designing new products and services – The Company is looking forward to designing a new application for grocery shopping; The Company’s internal team is already working on this project.
• Low performance and morale – The Company always try to boost the morale and performance of its staff and worker by motivating them. Encouraged employees are more likely to focus better and are less likely to make mistakes which helps boost employee morale.
• High stress and staff turnover – Staff turnover of the company is quite impressive as the figures display the average number of individuals employed by Tesco in the UK from 2012 to 2022 was around 326 thousand. It is very difficult for the company to manage such high staff, so the company has divided various sectors accordingly.
• New management team – Company has the strongest team of management which is provided by the overall management process which has a huge impact on the company. The management team impacts the directive, authoritative, and participative in the company.
• Inadequate skills and knowledge base - Company provides training and knowledge to all untrained employees, for improving their productivity. Employees of the company need to have adequate skills and knowledge.
• Innovation in the manufacturing process – the company is continuously investing in technology to develop its manufacturing process. The company is focusing on full digitalization.

Resistance to the innovation change

Individual

It is normal for individuals in the organization to be resistant to change, specifically in their work life. Employees in the organization value the steadiness and the foreseeable nature of the daily work schedule and also be attentive to the adaptation of anything new in the organization, especially in case of any kind of innovation. The individual in the organization has the threat that all these innovation changes may make them lose their jobs, as a part of innovation involvement of machinery and online services are increasing which is reducing the human workforce at the organization. For minimizing this attitude of employees to resistance to change companies and individuals need to work on proper planning which focuses on increasing communication skills and adaptation skills which helps individuals to learn about innovation going on in the organization.

organizational

resistance shows the inflexibility of organizations in accepting the change which is required to keep up with the market. in an organization causes behind resistance to changeare internal factors, poor decision-making by the management, etc. for preventing this resistance the management of the organization can consider showing value through several training programs, gathering inputs from employees regarding the change, and valuing the opinions of employees in the innovation plan.

Influence of motivation oninnovation

Organizational innovation is the process of profitably creating innovation in organization management. Innovation offers several benefits in terms of product, and expenditure, and also has an impact on the long-term goals of the organization. For encouraging innovation in an organization motivation plays a very important role, it is the main force through which an individual allocates their efforts and implements innovative ideas. Motivation plays an important role in organizational behavior which further helps in promoting innovation in the organsiation's working. Motivation focuses on all those managerial actions in which the importance of innovation is communicated and also innovation that is related to behavior might encourage and reinforced (Fischer et. al. 2019). In the case of Tesco's motivation influence, the innovation in the organization as like many other companies Tesco is also affected by resistance to change its employees are at threat of losing their jobs. Here the company has used motivational techniques like training, effective communication, and encouraging employees by considering their opinions in decision making all these have a great influence on innovation.

Conclusion & Recommended strategies to Implement change

Lewin’s Change Model

Change is the foundation for every organization's development, most employees prefer the current situation in comparison to change. The report recommends one of the best change management models for the case company Tesco. The report recommends Lewin's change model also known as Kurt Lewin's Force Field Theory which talks about the restraining forces which have a great impact on a group as well as an individual's performance and also help in determining the destiny of change (Bartunek and Woodman, 2015). The model suggested that it is quite critical to balance the forces with effective communication and involvement of employees, it can be done through training the employees to bridge the gap between skills.

Stage 1: Unfreeze

The model states that perception management aims in driving stakeholders for future changes in the organisation. In this stage change leader, needs to look out for methods and plans to improve the company's planning for the forthcoming changes. In this, the most essential role is played by communication which helps in getting the desired team and also supports the management.

Stage 2: Change

This stage refers to the change implementation. In this manager needs to consider an agile and reiterative aspect that integrates employees' feedback to smoothen the transition. By this, the company can ensure that there is a continuous flow of information for gaining the support of team members.

Stage 3: Refreeze

This stage is of acceptance and stabilization in which the employees move forward from the phase of change. However, if the change leader fails to apply the change in the organization, it willaffect the employee's behavior (Burnes, 2020). For securing this manager is required to gather employees' feedback on regular basis and provide them training and support.

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