You are on page 1of 40

LSE (London

School of
Economics)

University of Birmingham University of
Durham University
Southampton University Reading

Doctorate in Business Administration
(DBA)
DBA INTERPERSONAL LEADERSHIP:
Part1: Company Report (Tesco)

Part2: The Evidence Review

Part3: Reflection for employability enhancement & leadership

For Assignment writing or Dissertation Help, Please Contact:

Dr. Sajid Saeed
+447762198474 (WhatsApp/Viber/imo)
Email: todrsaeed@gmail.com
TABLE OF CONTENTS
Page #
Section 1: The Company Report

1 Introduction 1
2 Terms of reference 2
3 Domain for the consultancy project 3
3.1 Leadership 3
3.2 Internal marketing (IM) 3
3.2.1 Multi-factor leadership questionnaire (MLQ) 4
3.3 Identification of leadership styles for Tesco 4
4 Leadership development plan 9
5 Benefits of leadership development plan 10
6 Conclusion 11

Section 2: Literature review in the form of proposal 12

The impact of the leadership styles on the internal marketing:
A case study of Tesco 12

1. Chapter 1: Introduction 12

1.1 Justification for the research 12
1.2 Aim of the study 13
1.3 Objectives of the study 13
1.4 Hypotheses 14
1.5 Research questions 15

2. Chapter 2: Literature review 16

2.1 Leadership 16
2.2 Leadership theories 16
2.2.1 The traits theory 16
2.2.2 Contingency theory 18
2.2.2.1 The Fielder's contingency theory 18
2.2.2.2 The autocratic vs. democratic theory 19
2.2.2.3 Situational theory 19
2.2.2.4 Path-Goal theory 20
2.2.3 Transactional theory 21
2.2.4 Transformational theory 21

3. Chapter 3: Methodology 23

3.1 Research approach 23
3.2 Research strategy 23
3.3 Data collection methods 23
3.4 Choice of method 24
3.5 Ethical issues 24
3.6 Resources required 24
3.7 Gantt chart 25
Section 3 Reflective report 26
1 Knowledge gained 26
2 Challenges faced 27
3 Employability skills 28

References 30

Appendix 1 Multifactor leadership questionnaire 33

Appendix 2 Leadership development plan 34
Executive Summary

The current report is divided into three sections such as company report, literature
review in the form of proposal and reflective report. The consultancy report is focused
on investigating the leadership issues that the Tesco is facing. From the initial analysis
it has discovered that the internal marketing system of Tesco was not operating well
that is why of the external customers are not satisfied. For finding the exact reason the
analyst has collected the primary data through MLQ from the 25 employees of Tesco
who are working in different departments of Tesco. The result of the analysis has
shown that the managers of Tesco are adopting the transactional leadership style that
has de-motivated the employees of Tesco because the employees are just following
the instructions of the managers as the managers can punish the employees who are
not achieving the targets. Higher level of de-motivation resulted in the poor
performance of employees in the past five years. It is suggested to the management
that the managers should adopt the transformational leadership style so that the
managers can act as leaders and influence the employees for enhancing the
motivation level of the employees. This will result in high productivity and ultimately
enhance the performance of the employees. Leadership development plan is
generated (provided in appendix 2) for the next three years that will assist the
managers of all levels to change their perception and practices from transactional to
transformational leadership style.

The section two of the report is the literature review in the form of research proposal.
The main reason to generate literature review in the form of research proposal is that
it can become the potential topic for the research that will be conducted at the end of
course work. This section is divided into three chapters. Chapter 1 has provided the
justification of research, aim, objectives, hypothesis and research question for the
proposed research. Chapter 2 has provided the literature review that has covered the
explanation of leadership, internal marketing and different leadership theories.
Chapter 3 has provided the details about the research design that will be used by the
researcher. Furthermore, ethical consideration, resources required and Gantt chart is
provided to get the complete idea about the proposed research.

The third section of the report is the reflecting report. The reflective report has provided
the reflection of the entire activity. The main points that were discussed in the reflective
report are the knowledge gained during this exercise, challenges faced during the
completion of this report and the employability skills that are gained by the learner
through the completion of this report.
Section 1 The Company report

1. Introduction

The current work is focused on exploring the leadership issues that Tesco is facing
from the last five years. Tesco was doing well till the end of 2011 but after that Tesco
is struggling to perform well. In 2011 Sir Terry Leahy has resigned from Tesco as CEO
and after that Philip Clark became the CEO of Tesco. During his tenure Tesco was not
able to perform well and Tesco has faced lot of leadership problems. Due to this
reason at the end of 2014 Philip Clark has resigned and Dave Lewis has taken over
from him as the CEO of Tesco. The following table is highlighting the financial
performance of Tesco from 2011 to 2015 that is clearly explaining the performance of
Tesco in the last five years.

Table 1 Five year performance of Tesco
2011 2012 2013 2014 2015
Sales 67,074 71,402 70,712 70,894 69,654
Operating profit 3,917 4,182 2,382 2,631 (5,792)
Net profit 2,671 2,814 24 970 (5,766)
Share price 403.45 336 334.35 189 149.5
Market share 32.3 30.6 29.9 29.1 28.3
Source: Annual report of Tesco, 2011 – 2015; The Guardian, 2016 and Tescoplc.com

From the above table it is clear that the revenues are fluctuating in the last five years,
operating profit, net profit, share price and market share is declining. Furthermore,
2015 has proved the worst year for Tesco as Tesco was in loss in that year. In 2011
Tesco was operating in 14 countries but now it is only operating in 11countries.
Furthermore, lot of important events have occurred during 2011 to 2015 that were
directly related to the leadership and the poor performance of the employees at all
levels. The detail is as follows

 In 2012 Tesco has issued first profit warning in the last 20 years.

1
 Tesco announced 1 billion pound revival plan in 2012 due to customer
complaints that 2800 stores are cold and employees are not helpful.
 Tesco has announced fall in profit after 19 years in 2013.
 Tesco announced 250 million pounds of overstatement of profit in 2014 but after
the investigation Financial Reporting Council has confirmed that it is of 263
million pounds overstatement of profit. As the result Chairman along with 8
board members have resigned in 2014.

After examining the above issues it is clear that the leadership and the internal
marketing system of Tesco have failed in all aspects. This report will examine the
leadership and the internal marketing system of Tesco so that the situation can be
improved in the near future.

2. Terms of references

The main objectives, which will be achieved through this report, are

 To investigate the leadership and internal marketing issues those were faced
by the Tesco in the last five years.

 To collect the primary data through multifactor leadership questionnaire (MLQ)
for exploring what leadership styles the top and middle management has
adopted in Tesco in the last five years.

 To generate consultancy report for the management of Tesco that will explain
the leadership issues through primary data collection and analysis, leadership
development plan and the potential benefits that leadership development plan
will provide to Tesco.

 To provide the explanation that how Tesco will implement the proposed
changes for improving the performance.

3. Domain for the consultancy project

2
As discussed before that this consultancy report is focused on identifying the
leadership and internal marketing issues that are faced by Tesco in the last five years.
For the identification of the issues the researcher will collected the primary data
through the MLQ. The analysis of data will provide better understanding of the issue
that were faced by Tesco in the last five years.

3.1 Leadership

The leadership can be described as the activity for influencing the individuals so that
they can work together for achieving the common objectives (Armstong, 2001). The
influencing the individuals is the key factor on the leadership.

3.2 Internal marketing (IM)

The main issue which the Tesco is facing from the last few years is that the employees
of Tesco are not able to do well in satisfying the needs of the customers which result
in the poor performance of Tesco. The head of departments (HOD) are responsible
for this issue because it is their responsibility that the employees will perform business
tasks efficiently so that the customers of Tesco will be satisfied. In addition, the role of
HOD is not only to influence the workers but it is to manage the internal operating
activities efficiently. Even though leadership has an important part to play in IM
activities but the literature is also highlighting the integration of IM and leadership. Due
to this reason current research is conducted to investigate that how various leadership
styles influence the IM activities of Tesco. For this reason multi factor leadership
questionnaire (MLQ) is used to explore the leadership style that different HOD’s are
adopting in Tesco.

3.2.1 Multi-factor leadership questionnaire (MLQ)

3
The main reason for using the MLQ is to identify the transactional, transformational
and Laissez-faire leaders. Different points related to transformational leaders are
included in MLQ such as idealised behaviours, idealised attributes, intellectual
stimulation, individualised consideration and inspirational motivation. The main points
related to transactional leaders are both types of contingent reward management by
exception such as passive and active. The MLQ version 5X contains 45 questions and
it is further sub divide into nine scales with three possible outcomes. Different
researchers have also used MLQ to identify the entire range of leadership models
(Bass and Avolio, 1993; Avolio and Bass, 2004). This particular tool for testing and
verifying the leadership qualities is used by the researcher from 1985 and it is still used
by the researchers around the globe. Recently MLQ was also used by the researchers
to measure the ratio of leadership styles.

Also the MLQ measures hierarchical construct of transformational style instead of
measure separate transformational leader behaviours.

3.3 Identification of leadership styles for Tesco

MLQ (a copy of MLQ is provided in the Appendix 1) will be used to identify the
leadership style of the management of Tesco. The data is collected from the 25
employees of Tesco that are working in different departments of Tesco. In this way it
is clear that the data is collected from the sample but not from the entire population.
The data is collected from the employees who are working in the Dunstable branch
Luton. This branch is selected because it is Tesco Extra branch and lot of employees
are working there. The response of the respondents was processed and the following
information was extracted after the analysis of the data.

Out of 25 respondents, 21 have stated not at all, 3 have stated once in a while and
only one has stated sometimes, which shows that managers have not idealized
influence (Attribute).

4
Figure 1 Idealized influence (Attribute)

25

20

15

10 Series1
5

0
Not at all Once in a Sometimes Fairly often Frequently if
while not always

Out of 25 respondents, 23 have stated not at all, 1 has stated once in a while and only
one has stated sometimes, which shows that managers have not idealized influence
(Behaviours).

Figure 2 Idealized influence (Behaviours)

25

20

15

10 Series1
5

0
Not at all Once in a Sometimes Fairly often Frequently if
while not always

For this question out of 25 respondents, 15 have stated not at all, 4 have stated once
in a while, 2 have stated sometimes, 3 have stated fairly often and only 1 has stated
frequently if not always. These responses have shown that managers have not
inspirational motivation.

5
Figure 3 Inspirational motivation

16
14
12
10
8
6 Series1
4
2
0
Not at all Once in a Sometimes Fairly often Frequently if
while not always

The response of 23 respondents was not at all and 2 respondents have stated once
in a while, which shows that managers have not intellectual stimulation.

Figure 4 Intellectual Stimulation

25

20

15

10 Series1
5

0
Not at all Once in a Sometimes Fairly often Frequently if
while not always

The response is quite favourable for this question as no respondent has stated not at
all and once in a while. 3 respondents have stated sometimes, 10 have stated fairly
often while 12 have stated frequently if not always. From these responses it is clear
that the managers are individualized consideration.

6
Figure 5 Individualized consideration

14
12
10
8
6
Series1
4
2
0
Not at all Once in a Sometimes Fairly often Frequently if
while not always

From the above analysis it is clear that the managers of Tesco are not transformational
leaders because the managers of Tesco are only practicing the individualized
consideration attribute among different attributes of the transformational leaders.

The response is quite favourable for this question as no respondent has stated not at
all, once in a while and sometimes. 7 respondents have stated fairly often while 18
have stated frequently if not always. From these responses it is clear that the
managers are contingent rewards.

Figure 6 Contingent rewards
20

15

10
Series1
5

0
Not at all Once in a Sometimes Fairly often Frequently if
while not always

Highly favourable response has received for this question as no respondent has stated
not at all and once in a while.1 respondent has stated sometimes, 5 respondents have
stated fairly often while 19 have stated frequently if not always. From these responses
it is clear that the managers are management by exception: Active.

7
Figure 7 Management by exception: Active

20

15

10
Series1
5

0
Not at all Once in a Sometimes Fairly often Frequently if
while not always

Highly favourable response has received for this question as no respondent has stated
not at all, once in a while and sometimes. 3 respondents have stated fairly often while
22 have stated frequently if not always. From these responses it is clear that the
managers are management by exception: Passive.

Figure 8 Management by exception: Passive

25
20
15
10 Series1
5
0
Not at all Once in a Sometimes Fairly often Frequently if
while not always

From the above analysis it is clear that all the managers of Tesco are practicing
different attributes of transactional leadership. For this reason it is stated that the
managers of Tesco are transactional leaders.

All the respondents have stated frequently if not always when it was asked from when
that the managers are taking decisions or not. On the basis of their response it is
stated that the managers of Tesco are not following Laissez – Faire style because

8
normally the Laissez – Faire leaders are not taking any decision by themselves but
giving opportunity to the subordinates to take decisions.

Figure 9 Laissez - Faire

30
25
20
15
10 Series1
5
0
Not at all Once in a Sometimes Fairly often Frequently if
while not always

From the above analysis it is clear that the managers of Tesco have adopted the
transactional leadership style. The advantage of transactional leadership style is that
the subordinates are putting their best efforts to achieve the objectives because they
know that the managers have the power to reward and punish. But the main
disadvantage of this style is that the subordinates are not motivated to the work
because the leaders are not influencing them but it is the fear of the punishment due
to which the subordinates are completing their tasks.

4. Leadership development plan

From the above analysis it is clear that the managers of Tesco are following the
transactional leadership style and as discussed that transactional leadership style is
not able to motivate the employees. This is the main reason for the poor performance
of the employees of the Tesco and the failure of their IM system. The analyst is
suggesting the management of Tesco that they should change their leadership style
from transactional to transformational leadership so that the IM system will motivate
the employees and the Tesco can perform better. The management should adopt the
leadership development plan that is provided in Appendix 2.

9
According to the plan that is provided in Appendix 2 three months crash course should
be started for all levels of management so that everyone should realize the need for
change in leadership style at all levels. The crash course for top management will run
once a week for middle management once in two weeks while it will be run once in a
month for operating employees. Once the crash course will finish three members from
the top management will join any university to complete the post grade course in
leadership development. After every year 3 members of the top management will enrol
in the degree till all the top management members complete the degree in leadership
development.

After the completion of the crash course 5 managers from the middle level
management will enrol in leadership development course that will take 3 months to
complete. This course will run till all the middle managers will complete this course. 10
managers from lower management will also complete the one week leadership course.
This course will also run till all the lower managers will complete the course. For the
operational employees in house seminars will be offered once a month so that the
operational employees also realize the importance of leadership. In this way in the
next three years all the employees will be trained and Tesco will not face any
leadership problem in future. The total budget required for leadership development
plan is forecasted at 1 million pound in the next three years. But if the management of
leadership is not spending that much money on leadership development plan than the
opportunity cost will be quite high in the long run that the Tesco will face in the form of
poor performance.

5. Benefits of leadership development plan

The following benefits can be achieved through leadership development plan

 Through this initiative the employees of all levels will realize the importance of
leadership in enhancing the performance of the company.

 The top and middle management will able to influence the employees that will
helpful to improve the performance of Tesco.

10
 Through effective leadership practices the managers can motivate the
employees, which will increases the productivity of the Tesco in near future.

6.0 Conclusion

The company report is focused on investigating the leadership issues that the Tesco
is facing. From the initial analysis it has discovered that the internal marketing system
of Tesco was not operating well that is why of the external customers are not satisfied.
For finding the exact reason the analyst has collected the primary data through MLQ
from the 25 employees of Tesco who are working in different departments of Tesco.

The result of the analysis has shown that the managers of Tesco are adopting the
transactional leadership style that has de-motivated the employees of Tesco because
the employees are just following the instructions of the managers as the managers
can punish the employees who are not achieving the targets. Higher level of de-
motivation resulted in the poor performance of employees in the past five years. It is
suggested to the management that the managers should adopt the transformational
leadership style so that the managers can act as leaders and influence the employees
for enhancing the motivation level of the employees. This will result in high productivity
and ultimately enhance the performance of the employees. Leadership development
plan is generated (provided in appendix 2) for the next three years that will assist the
managers of all levels to change their perception and practices from transactional to
transformational leadership style.

Section 2 Literature review in the form of
proposal

11
The impact of the leadership styles on the internal
marketing: A case study of Tesco

Chapter 1 Introduction

1.1 Justification for the research

The function of different head of departments (HODs) in critical for the success of any
organisation. Harris and Ogbonna (2001) have developed an attribute model for the
HODs in the retail industry. They have stated that the responsibilities of the HODs in
the retail industry include effectively running the operating affairs as well as provide
excellent services to the customers. Through this the main role which HODs have to
perform is to effectively running the affairs of the business rather than performing the
policing function. The HODs should act as the strategists for their business and should
adopt the essential changes and participate fully in the learning and development
initiatives for them and their subordinates so that the performance can be enhanced.

The HODs should manage the operational and other internal activities of the business.
The effective performance of operational and other internal activities leads to the
improved performance of the business. The HODs are also responsible to influence
the employees so that the employees can fully involve in operational and internal
activities of the business. If the HODs are able to influence the employees then it
shows that the HODs have leadership qualities in them because influence factor is
consider as one of the vital factors in leadership studies.

Furthermore, HODs are not only responsible to influence the employees but they are
also responsible to promote the internal activities of the business. For this reason it is
important that the HODs should utilize the concept of marketing in performing the
internal activities of the business. Internal marketing (IM) can be described as the
utilization of marketing concept for promoting the internal operating activities by the
workers of the business (Kotler and Armstrong, 2011). For the success of the business
it is important that the workers will adopt the IM concept because this concept will help
the worker to treat the different stakeholders of the business in an efficient manner.
12
But the prerequisite for the implementation of IM concept is that the business should
treat its workers as their internal customers and satisfy the needs of the workers
effectively so that the workers will put their efforts to satisfy the external customers
(consumers) of the business. This can be achieved if the business will provide
monetary (fair salary, pay rise and bonus) and non-monetary (training, promotion and
praise) rewards to the workers and by developing the consumer orientation behaviour
within the workers (Armstrong, 2001). Only those organisations can satisfy the
external customers who are able to satisfy their internal customers because external
customers have direct interaction with the internal customers (Gronroos 2000; Kotler
& Armstrong 2011). The main issue which the Tesco is facing from the last few years
is that the employees of Tesco are not able to do well in satisfying the needs of the
customers which result in the poor performance of Tesco. The head of departments
(HOD) are responsible for this issue because it is their responsibility that the
employees will perform business tasks efficiently so that the customers of Tesco will
be satisfied. Due to this reason current research is conducted to investigate that how
various leadership styles influence the IM activities of Tesco.

1.2 Aim of the study

The aim of this study is to investigate the influence of leadership style on the internal
marketing system of Tesco.

1.3 Objectives of the study

IM is defined as the implementation of marketing concept within the organisation for
satisfying the external customers. Pulendran, Speed and Widing (2000) have stated
that IM is a process of developing, attracting and retaining effective employees that
can satisfy the customers’ needs. Under this philosophy the workers are treating as
the customers so that the workers can satisfy the needs of the external or end
consumers of the business. Through IM approach the company want to enhance the
market share, create positive brand image, corporate culture and gaining competitive
advantage. In the previous studies the researchers have also emphasised the internal
factors linked with IM such as establishment of the customer oriented behaviour,
change management and human resource management.
13
The objective of this study is to investigate the relation between the leadership style
and IM system of Tesco. Furthermore, this study will establish the impact of leadership
styles that is adopted by HODs and its impact on IM system.

1.4 Hypotheses

The following hypotheses have generated for the proposed study.

H1 No significant difference is there between staff perception of leadership style
and length of services of staff in retail industry.

H2 No significant difference is there between staff perception of leadership style
and staff education level.

H3 No significant difference is there between staff perception of leadership style
and core skills of staff.

H4 No significant difference is there between staff perception of leadership style
and gender of the staff.

H5 No significant difference is there between staff perception of leadership style
and age of the staff.

14
1.5 Research questions

The following research questions will be tested

RQ 1 Does significant difference exists between staff perception of leadership style
and length of services of staff in retail industry.

RQ 2 Does significant difference exists between staff perception of leadership style
and staff education level.

RQ 3 Does significant difference exists between staff perception of leadership style
and core skills of staff.

15
Chapter 2 Literature review

2.1 Leadership

Lot of researchers have conducted their research on leadership as compared to any
other topic and concept (Gibb, 2008). Lot of definitions have been developed by
different researchers of leadership. Bass (1990) has stated that leadership is the
interaction among the individuals for achieving the common goals. Leaders are
considers as the change agent and affect other individuals more as compared to other
individuals affect them. Yukl (1999) has stated that it is a systematic process in which
an individual influence the others by motivating them to achieve the common goals
and assist the individuals to gain confidence and skills that are required for achieving
the objectives. The leadership can be described as the activity for influencing the
individuals so that they can work together for achieving the common objectives (Gibb,
2008). The latest research on leadership has explored that influencing the individuals
is the key factor on the leadership (Narver, Slater and Tietje, 2005). Leadership is a
logical process to influence the members of a group for achieving the common
objectives (Behling & Rauch 1985).

2.2 Leadership theories

Different leadership theories and their strengths and weaknesses will be provided in
the following section.

2.2.1 The traits theory

The traits theory has emerged in 1900s when different researchers have given the
idea that the leaders are not made but they are born (Bass, 1990; Bryman, 1992;
(Narver, Slater and Tietje, 2005). The assumption of this theory is that the leaders are
born with some in born qualities or traits such as self-confidence, intelligence and
appearance that differentiate the leaders from others Narver, Slater and Tietje, 2005).
Gibb (2008) have identified eight different qualities that the leader should have such
as intelligence, insight, alertness, initiative, responsibility, self-confidence, sociability
16
and persistence. But Yukl (1999) has stated that the leaders have different attributes
such as motivating power, values and personality. Daft (1999) has divided different
leadership qualities under four types such as ability, social, physical and personality.
Yukl (1999) has stated that leadership qualities of leaders are differentiating the
leaders from the followers. The above discussion made it clear that this theory giving
more emphasis on the qualities that the leaders have and due to these qualities the
leaders can become a role model for the followers.

Figure 10 Trait theory

Source: SlideShare (2016)

Even though lot of researchers have contributed to the trait theory but this theory have
some weaknesses as well. Laurie (2004) has stated that leaders are not successful
only possessing different qualities but they have to practice it effectively so it create
difference for their organisation. Daft (1999) has also confirmed the findings of Laurie
(2004) study and has stated that effective utilization of the leadership traits is vital for
the success of the business. The main criticism on trait theory is provided below

 This theory is not identifying a specific set of quality that the leaders should
possess for become an effective leader.

17
 Different researchers have given their own list of different leadership traits,
which is highlighting the difference in opinion among these researchers.
 The theory is focused more on traits rather than utilizing the traits in specific
situations for problem solving.

2.2.2 Contingency theory

The focus of the contingency theory is on the assumption that the leader should read
the situation first and then act in that way which is appropriate in that situation (David,
2002; Yukl, 1999). So it can be stated that the effectiveness of the leader can be
checked that how he read every situation effectively and solving the problem
appropriately. The main focus of this theory is adopting the right leadership style in
every situation by the leaders. Different contingency theories have developed by
different researchers and the following section is providing the details of different
contingency theories.

2.2.2.1 The Fiedler’s contingency theory

This theory is focus on the interconnection of different situation and the behaviours of
the leader in these situations (Armstrong, 2001). It is based on the assumption that
the efficiency of the leader is dependent on his relation with the followers, use of power
and the task’s nature that have to be performed. It is highlighting that the adaptation
of leadership style is based on the situation in which the leader is at a particular time.
It can also be explained as the practices of the managers are linked with the situation
and different factors that are linked with the situation. Under this theory the leaders
can be divided into task and relationship oriented. The task leaders are more
concerned with the performance of organisational tasks while the relationship leaders
have the belief of having good relations with the subordinates.

18
2.2.2.2 The autocratic vs. democratic theory

The main difference between the autocratic and democratic leaders is the power and
the use of power. The autocratic leaders hold power with them and the leaders are
also taking the decisions by themselves while the democratic leaders are delegating
powers to their subordinates and decision making power is also not centralized. The
delegation of power and decision making is related with different factors such as the
belief of leader in delegation, participation and confidence on subordinates, the
understanding and ability of the subordinates to work alone and in team to achieve the
common goals and it is also associated with the company and its culture.

Furthermore, this theory is explaining that autocratic leaders have the task oriented
approach while the democratic leaders have the relationship oriented approach. This
relationship of autocratic and democratic leaders with task and relationship oriented
approach is explained by different researchers in their work (David, 2002).

2.2.2.3 Situational Theory

This theory is established by Hersey and Blanchard in 1969 and it is widely accepted
by different researchers (Bratton and Gold, 2001). Lot of researchers have also made
vital amendments in this theory. The two main points that are considered under this
theory are situations and the features of the individuals that explain the effectiveness
of leaders. The vital factor of this theory is the situation and the awareness of the
leader about the situation in which he is working. The effective leaders are scanning
the situation for getting the proper knowledge of the situation and then behaving in a
particular way that is most suitable for that situation (David, 2002).

This theory is closely linked with the contingency theory because this theory is also
focused on studying the situation and then adopting the most appropriate behaviour
in that situation. It is the duty of the leader that they give guidance to their subordinates
as well about the situation and the entire team take a common decision. It is also
possible that the leaders will adopt different leadership styles together if the situation
demands the use of different leadership styles at one time.

19
Figure 11Situational Leadership

2.2.2.4 Path-Goal Theory

This theory is established by House and Mitchell in 1974 and it is stated that the
leaders should able to influence the followers effectively (Bratton and Gold, 2001). The
main factor for this theory is that the leaders should guide all the employees to the
common path which is helpful for achieving the common goals of the organisation
(Torrington, Hall and Taylor, 200). Bratton and Gold (2001) have stated that the
behaviour of the leader can guide the members if the behaviour of the leader has
positive impact on the followers for achieving the goals of the firm. The main part which
the leader is playing under this theory is to guide the followers to that path, which is
helpful for achieving the common goals. Once the followers are following the path for
the success the leaders are just removing all the barriers that come in the path so that
the goals can be achieved by the subordinates. Normally the leaders are adopting
directive, supportive, achievement and participative styles under this theory
(Torrington, Hall and Taylor, 2005). The explanation of these styles is provided below:

 Directive leaders are clarifying the direction on which the followers have to
move forward for achieving the goals.
 Supportive leaders have more belief on providing the continuous support to the
followers for achieving the goals.
 Participative leaders are delegating decision making powers to the followers so
that the followers can take decisions.
 Achievement-oriented leader are showing higher confidence on the followers
for enhancing the performance of the company.

20
2.2.3 Transactional theory

Transactional theory is focused on the fact that the leader is using rewards and
punishments for achieving the output from the subordinates (Laurie, 2004). If the
subordinates are performing well then the leader is providing proper compensation to
the subordinates for their work as they have achieved the output in the given time. But
if the subordinates are not able to achieve the task in a given time period then the
leader is using his punishment power and that is how the organizational tasks can be
performed.

The strength of this theory is that the subordinates are achieving the objectives
because they know that the leader can punish them. The weakness of this theory is
that the leaders are not able to motivate the employees because the relationship
between the leaders and subordinates is not quite good. So every time the leader has
to use the reward and punishment power (Laurie, 2004).

2.2.4 Transformational theory

This theory was established by Downton in 1973 (David, 2002). This theory is stating
that if the managers will learn different leadership traits then they transform
themselves from managers to leaders. In this way the managers can become leaders
and they able to influence and motivate the subordinates instead of using the reward
and punishment power for giving instructions to the subordinates and get the work
done from them (Bass, 1985). Furthermore, the leaders are able to maintain the good
relations with the subordinates instead of managers who do not able to maintain
healthy relations with their subordinates. This influence, motivation and friendly
relations are assisting the managers to achieve the targets which they want to achieve
(Daft, 1999).

This transformational leadership takes the company in the better situation and it
assists the company to improve the performance (Bennis and Nanus, 1985). The
leaders are concerned with the commitment, vision, strategy and culture instead of
using the reward and punishment power. Bryman (2004) has also stated that
transformational leader highlight the need and motivation of the workers. This
21
leadership style composed on five elements such as idealized behaviour, idealized
attributes, intellectual stimulation, individualized consideration and inspirational
motivation.

22
Chapter 3 Methodology

Explanation of the research design will be provided in this section of the report.

3.1 Research approach

Two approaches can be used by the researchers for conducting the research such as
the inductive and deductive (Saunders et al., 2013). In deductive approach the
researcher is starting from the theory and hypothesis and then getting the answer of
the hypothesis while in inductive approach the researcher is starting from the data
collection and trying to generate the theory (Saunders et al., 2013). For the proposed
research deductive approach will be adopted by the researcher as the researchers is
not going to generate the new theory.

3.2 Research strategy

Saunders et al., (2013) has stated that there are different research strategies available
for the researcher to complete his research. It is the duty of the researcher that he
should use the appropriate strategy from the available strategies. For this reason the
researcher will use the survey methodology because the researcher will collect the
primary data. For the data collection the researcher will use the MLQ so the survey
methodology is suitable for the proposed research.

3.3 Date collection methods

Researcher can collect the primary or secondary data for the completion of research
(Saunders, et al., 2013). For this study the researcher will collect the primary data as
the required data is not available. For this reason the researcher will collect the data
through MLQ from the 25 employees of the Tesco so that the researcher can
investigate the impact of leadership practices on the internal marketing system of
Tesco.

23
3.4 Choice of method on the basis of nature of data

Saunders et al., (2013) has stated that the data can take two forms such as
quantitative (numeric) or qualitative (non-numeric). For the current research the
researcher will collect the qualitative data because the researcher is willing to
investigate the impact of leadership practices on the internal marketing system of
Tesco.

3.5 Ethical issues

For the proposed research the researcher will collect the primary data so different
ethical issues surround the data collection process. But the researcher will ensure that
he will take permission from the individuals before collecting the data. Furthermore,
the researcher will not conduct any experiment for data collection that has harmful
effects on individual or on his property. The data will also not collect from any disabled
or under age. In this way the ethical issues will be eliminated from the data collection
process.

3.6 Resources required

For the completion of the research the researcher need access to different text books,
online journal articles, internet, computer and software. All the required resources are
available in the library of LSC so the researcher will not find any problem to get access
to the required resources.

24
3.7 Gantt chart

The following Gantt chart is providing the timelines of different research activities

Activities Month Month Month Month Month Month Month
1 2 3–4 5-6 7-8 9 - 10 11 - 12
Reading the literature aaaaa
Introduction aaaaa
Review of literature aaaaa
Methodology aaaaa
Collection of data aaaaa Aaaaa
Processing of data Aaaaa aaaaa
Analysis and aaaaa aaaaa
commentary of results
Recommendation & aaaaa
conclusion
Review & Submission aaaaa

25
Section 3 Reflective report

The current report is divided into three sections such as consultancy report, literature
review in the form of proposal and reflective report. The consultancy report is focused
on investigating the leadership issues that the Tesco is facing. From the initial analysis
it has discovered that the internal marketing system of Tesco was not operating well
that is why of the external customers are not satisfied. For finding the exact reason the
analyst has collected the primary data through MLQ from the 25 employees of Tesco
who are working in different departments of Tesco.

The section two of the report is the literature review in the form of research proposal.
The main reason to generate literature review in the form of research proposal is that
it can become the potential topic for the research that will be conducted at the end of
course work.
The current section of the report is providing the reflection of the entire report and it
will provide the details about the knowledge gained, challenges faced during
completion of this report and employability skills.

1. Knowledge gained

For the completion of this research I read different text books, journal articles and
reports that are related to the leader, leadership styles, leadership theories, leadership
traits and internal marketing, importance of internal marketing system, how to conduct
the research and writing a research proposal. This in depth reading of different
learning resources has enabled me to complete this report because it is the first time
I have generated the research proposal. Without this intensive reading I was not able
to complete the proposal. Furthermore, the intensive reading has enabled me to
critically review the literature on the leadership, leadership theories and internal
marketing.

The most important thing, which I have learnt through this report, is how to generate
the research proposal. I have learnt that all the components of the research proposal
should be based on the aims, objectives and research questions because these

26
sections are providing the details that why the research is conducted by the
researcher. I have also learnt that the researcher should provide the complete details
of the research design that he will adopt to complete the research.

Another important thing that I have learnt first time is the collection of primary data. In
the last assignment I have learnt how to collect the secondary data but I have never
collected the primary data before in my life this is the first time when I have learnt how
to collect the primary data. For data collection I have used MLQ and collected the data
from 25 employees of Tesco.

2. Challenges faced during learning phase

The main problems that were faced during the learning phase are as follows.

 I am not rating myself as a good reader but from the last three months I have
developed the habit of reading because I have to complete one assessment in
one month. Still I feel board when I am reading the books for long time but with
the passage of time I feel I am developing the reading habit.

 Generation of proposal was the main challenge that I have faced during the
completion of this report because I have never generated the proposal before
in my life. First of all I read different book on research to understand how a
proposal can be generated and after that I am able to generate proposal for this
report.

 Another challenge that I have faced during the completion of this report is the
collection of primary data. I was not aware that how primary data can be
collected but I read from the research books that how primary data can be
collected through questionnaire and I have collected the data for this research
report.

It was very challenging to overcome these issues but due to proper planning and
continuous efforts I am able to complete the report.

27
3. Employability skills

After the completion of this activity I can realise that I have learned few new skills,
which are really important for getting the employment in future. I plan to pursue a
career in academics and for this reason research is one of the important skills, which
I have to learn. Due to this report I have learnt how to generate the proposal and I
have also understood the entire research phase. This understanding of research and
the research skill has made me highly employable in the near future.

Another vital skill that I have learnt is how to collect the primary data through
questionnaire. As explained before that I want to work in any university as a faculty
member in my country so this research skill has also open new doors for me to get job
in my desired area.

Lastly I have learnt how theoretical knowledge can be implemented in the real world
through this assessment. This skills is also vital in the professional life because all the
knowledge, which I am getting now I have to implement in the real life after getting the
job. In this way this assessment has helped me to learn how the knowledge can be
implemented in the real world.

The other employability skills that I have learnt during the completion of this report are
 Ability to understand a problem in a clear way and identifying the key
issues.
 Ability to plan work to meet deadlines and achieve goals within the time
period.
 Ability to collect process and analyse the qualitative data.
 Improve the communication and soft skills.
 Working with peoples to collect the data.
 Ability to understand the subordinates in clear way for achieving the
company's goals.
 Handle the conflicts and problems in an appropriate manner to reach at
the best solutions.

28
 Understand how the manager can act as leader and influence the
employees for enhance the motivation level of the employees; ultimately
enhance the performance of the employees to achieve of the company
targets.
 Understand the benefits of leadership development through the courses,
seminars, workshops that will increase the performance of company.

29
References

Armstrong, M. (2001), A Handbook of Human Resource Management Practice, 8 th
edition, Kogan Page, London

Armstrong, G. and Kotler, P. (2011), Marketing and Introduction, Global Edition,
Pearson Education, London

Avolio B., and Bass, B. (1995),You can bring a horse to water, but you can’t make it
drink: Evaluating a full range leadership model for training and development. New
York: Centre for Leadership Studies, Binghamton University, State University of New
York.

Bass, B. (1996). A new paradigm of leadership: An inquiry into transformational
leadership .Alexandria, VA: US Army Research, Institute for the Behavioral and Social
Sciences.

Bass, B., and Avolio, B.J. (1989b). “Potential biases in leadership measures: How
prototypes, leniency, and general satisfaction relate to ratings and rankings of
transformational and transactional leadership constructs.” Educational and
Psychological Measurement, 49, pp.505–527

Bass, B. and Avolio, B. (1994).“Transformational leadership and organisational
culture.”International Journal of Public Administration, 17, pp.541-554.

Bass, B. (1990). “From transactional to transformational leadership: Learning to share
the vision.” Organisational Dynamics, 18, pp.19-31.

Bass, B. (1998). “Transformational leadership and organisational culture”.Public
Administration Quaterly, 17(1), pp. 112-117.

Bass, B., (1985). Leadership and performance beyond expectations. New York: Free

30
Bass, B., and Avolio, B. (1990).Transformational leadership development: Manual for
the Multifactor Leadership Questionnaire. Palo Alto, CA: Consulting Psychologist
Press.

Bennis, W. and Nanus, B. (1985).Leaders.New York: Harper and Row.

Bratton, J. and Gold, J. (2001), Human Resource Management: Theory and Practice,
2nd edition, McMillan Business, Suffolk

Bryman, A. (2004), Social Research Methods, Oxford University Press, New York

David, B. (2002), Management: An Introduction, 2nd edition, FT Prentice Hall Pearson
education, New York

Gibb, S. (2008), Human Resource Development: Process, Practice and Perspectives,
2nd edition, Palgrave Macmillan, Hampshire

Gronroos, C. (2000), Service management and marketing: Managing the moments of
truth in service competition, Lexington, MA: Lexington Books.

Harris, L.C. & Ogbonna, E. (2001), Leadership style and market orientation: An
empirical study, European Journal of Marketing, Vol.35, No.5/6, pp.744-764

Laurie, M. (2004), Management and Organisational Behaviour, 7th edition, FT Prentice
Hall Pearson Education, London

Mind Garden Inc. (2016), Sample Items from the Multifactor Leadership Questionnaire
(MLQ) Form - 5X Short, Accessed on 26 March 2016, Available at
www.mindgarden.com

Narver, J.C., Slater, S.F. & Tietje, B. (2005), Creating a market orientation, Journal of
Market-Focused Management, Vol.3 (2), pp.241 - 255

31
Pulendran, S., Speed, R. & Widing II, E.R. (2000), The antecedents and
consequences of market orientation in Australia, Australian Journal of Management,
Vol.25, Issue 2, pp. 119 - 144

Saunders, M., Lewis, P. and Thornhill, A. (2013), Research methods for business
students, 7th edition, FT Prentice Hall, London

The Guardian (2016), Tesco Suffer Worst Sale for the Decades, Accessed at 25 th
March 2016, Available at
http://www.theguardian.com/business/2016/feb/04/tesco-suffers-worst-sales-in-
decades

Torrington, D., Hall, L. and Taylor, S. (2005), Human Resource Management, 6 th
edition, Prentice Hall Financial Times, London

Western Morning News (2015), Tesco Timeline: Troubles since 2011 Arrival of Philip
lark, Accessed on 25th March 2016, Available at
http://www.westernmorningnews.co.uk/Tesco-timeline-Troubles-2011-arrival-
Philip/story-26371253-detail/story.html

Yukl, G. (1999). “An Evaluation of Conceptual Weaknesses in Transformational and
Charismatic Leadership Theories.” The Leadership Quarterly, 10(2), pp. 285- 306

32
Appendix 1 Multifactor Leadership Questionnaire

Source: Mind Garden 2016

33
Appendix 2 Leadership development plan
Training Managerial Contents In house Off the Resources Time lines Cost Evaluation
level training job
training
Leadership Top, middle & Once a week Company No Learning Once a week for 1,000 Filing a
crash course lower level for three trainers material top mgt. per questionnaire
months but such as Once in 2 weeks session
individuals books & IT for middle mgt.
will rotate equipment Once a month for
lower mgt.
Leadership Top Post graduate No Any Learning 15 months 13,000 Filing a
development management degree in university material per questionnaire
degree leadership such as person & providing a
that offered books & IT detailed
by any equipment report
university in
London.
Leadership Middle Three months No Course Learning 3 months 1,500 Filing a
development management in depth offered by material per questionnaire
course course that any such as person & providing a
cover leadershi

34
leadership p institute books & IT detailed
theories & in London equipment report
styles
Leadership Lower One week No Course Learning 1 Week 500 per Filing a
offered
concept management intensive material person questionnaire
by any
course that leadershi such as
p institute
covers the books & IT
in London
basis of equipment
leadership &
management
Leadership Operational Once a month Company No Learning 3 hours session 100 per Filing a
employees workshop trainers material person questionnaire
such as
books & IT
equipment

35