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Diploma Of Business Management Answers Assessment Answer



Business management in an organization is the activities associated with proper planning, organizing, leading and controlling the business operation. The organization chosen for this study is Tesco in Ireland. Tesco Ireland is the Irish arm of Tesco Supermarket Group ( 2016). It operates full sized supermarket under the main “Tesco Brand” ( 2016). As per the record of 2012, Tesco controlled 28% of the total grocery market of Ireland ( 2016). The study will describe the role of management within the organization in term of P-O-L-C. The study will also analyze the role of human resource department, recruitment technique and appraisal technique for the organization. Apart from that, a range of controlling and monitoring technique of TESCO will also be evaluated within this study.

Role of management within the organization (P-O-L-C)






·         Better shopping experience to everyday customers

·         Growing business with full of opportunities

·         Earning faith and loyalty from customers, employees and communities

·         Innovative, modern and full of ideas


·         To be champion by improving the quality of customer’s life

·         Provide great value an great product in an efficient manner

·         Serving customers is at everything to be done


·         Focus on market dynamics

·         Creating strong brand image

·         Work smartly towards product customization

·         Accountable with every action and inaction


·         To be globally known organization

·         Strive for innovation and sourcing great quality and affordable products

·         Helping communities through financially supporting them


Organizational Structure

·         Delegation of authority to capable employees

·         Departmentalization depending on types of operation

Resource Allocation

·         Using 30% of group profit to open up 50 new franchise stores in all over the world

·         Managers are given authority to use resources where necessary


Leadership style

·         Top managers takes administrative decision

·         Departmental managers controls their immediate subordinate


·         Employee motivation through fair salary, incentives, bonus and profit sharing

·         Competition among employees itself motivates them


·         Transparent communication among all the hierarchy level

·         Low level managers easily approach high level managers


Reporting system of sales persons

·         Each sale person should report to market developer

Evaluation system of sales person

·         Evaluation of salesperson is done on quarterly basis

Table: Management role in organization

(Source: 2016)

Personnel Management

Role of Human Resource department Recruitment

The human resources department of TESCO is responsible for recruiting right employees for right jobs. The HR managers of the organization are to forecast the balance between human resource demand and supply. This department also sources competent candidates from external sources, who will have matching skills needed by the job.

Employee Relation

The managers of human resource department are highly responsible for maintaining unionized work environment within the organization. TESCO highly focuses on building flexible work environment within the workplace. Therefore, the HR department is always concerned with mitigating the employee issues immediately. The department never gives the scope of employee confliction. Apart from that, the HR managers also take care of employee job satisfaction and motivation through fair wage, benefits and safety measures.

Training and Development

In order to provide unique and dynamic want of customers, the employees of TESCO have to be expert in their respective fields. According to Back, Parboteeah and Nam (2014), the HR managers identify the skills needed by the employees for achieving organizational goals. On the other hand, the managers provide all the necessary equipment to the employees for enhancing their skills towards organizational development.

Tools and techniques used to recruit staff 

Applicant Tracking System (ATS)

TESCO uses advance online technology for their recruitment purpose. ATS is such a technology that effectively track al the incoming CVs in the organization. With the advancement in technology, the organization also matches the skills of the candidates with the vacant position. Thus, it effectively assists in recruitment process and saves the time of HR managers.

Interview technique

Both video interview and face-to-face interview are used by TESCO in recruiting employees. In case of face-to face interview, the candidates come to TESCO campus and give interview in taken by HR mangers. The shortlisted candidates are given welcome notice after cracking the interview (Nedelko and Potocan 2013). On the other hand, in video interview technique, the candidates give interview at their convenience without coming to campus. The shortlisted candidates are given welcome notice over the mail through passing the interview.

Tools and techniques used to appraise employees 

360-Degree Appraisal

TESCO use modern 360-degree appraisal technique for appraising their employees. In this technique, the employees are appraised based on reviews given by their colleagues, supervisors, subordinates and peers (Beadles et al. 2015). Peers, colleagues, supervisors and subordinates can provide better information regarding the employees to be appraised as they spend huge time with them.  Therefore, the HR can get authentic information regarding the performance level of the employees through this technique.

MBO approach

In this appraisal technique, TESCO set the goals and standards of appraisal jointly with their employees. Goals are the output that each employee is to achieve over a period. On the other hand, HR managers also set the standard for measuring the performance level as an agreed term with individual employees (Rees and Smith 2014). Thus, the HR manager can easily evaluate the actual performance level of the employees while it deviates from set standard.

Techniques used resolve conflict within the organization

Win-Win Technique

TESCO is an employee centric organization, which care for employees benefits. At the same time, the organization also has to look after its profit factors. Therefore, the organization uses Win-Win technique for resolving the employee confliction (Ouimet and Zarutskie 2014). The mangers never keep the scope, where employee confliction may lead to major employee dissatisfaction. In Win-Win technique, the HR managers of this organization come to mutual beneficial results with the employees. The mangers keep partly interest of the employees and partly interest of organization.


TESCO also uses compromising technique in their confliction management technique. In this techniques, the HR mangers keeps the demands of the employees, while task are to complete within given within time boundary.

Management and Leadership

Difference between Management and Leadership

Management and leadership go hand in hand, but still there are some differences. According to Schumacher et al. (2015), Management of TESCO frames the strategies and policies, which the employees are to follow. On the other hand, Ji et al. (2012) opined that Leaders guides and motivates employees to follow the strategies and policies. Management of this organization are more focused with systems and structures, whereas, leaders are more focused with developing people up to the  standard set by the management. According to Randle, Leisch and Dolnicar (2013), the managers of TESCO generate good ideas for furthering their business. On the other hand, Espinilla et al. (2013) opined that leaders are implementing the ideas generated by management.

Four Classic Leadership styles

Democratic leadership

TESCO can use democratic leadership styles for getting out more from teams. Ideas will move freely among the team members and superiors in this leadership styles. The leaders will provide scope for the employees to share their views in organizational success. Thus, the managers can get diverse set of solution to solve complex problems in dynamic situation. For instance, the leaders of Wal-Mart use democratic leadership and give employees enough freedom to share their concern regarding organization. This leadership styles has created flexible work environment and creative employees for the organization.

Autocratic leadership style

Autocratic leadership is characterized by leaders’ control over the decision making process and less input from the followers. Leaders just pass the decision to the followers and the followers are to follow the instruction as per the decision (Dusterhoff, Cunningham and MacGregor 2014). TESCO can use such leadership style, where decisions need to make quickly and get work accomplished effectively. It can down the morale of employees, as they are not involved in decision making process, but can also increase the productivity through adequate control over work structure. For example, IBM has used autocratic leadership style to get more control over the employees. Thus, they have become successful in creating an organized business with full of opportunities.

Laissez-Faire Leadership

In Laissez-Faire Leadership, the leaders do not much interfere in the work and decision making process (Boddy 2014). The decision making power is completely delegated to the employees. TESCO can use this leadership style, where their team members are extremely knowledgeable in their respective field. This leadership styles will create trust among the employees and they will show more creativity in their work. For instance, the leaders of Coles Australia have implemented this leadership style in their workplace. Thus, they are now able to motivate their employees towards adopting new changes.

Charismatic leadership

Charismatic leadership is implemented by employing such a person as a leader, who can be seen as an inspiring personality. These kinds of leaders should have expert and extraordinary knowledge in their field (Sonnentag, Unger and Nägel 2013). TESCO can apply this leadership style, where the employees need help of an expert hand to accomplish their job. It can also motivate employees by delegating them some authority in their work. For example, implementing Charismatic leadership in Infosys has improved the quality of their products, as the employees can perform accurately by getting expert help from the leaders.

Standards and objectives for individual or group

Monthly Target

TESCO sets monthly target for each employee working in the organization. Each employee within the organization is to achieve specific set of goal at the end of every month. It is used as the standard for the employees, which they are to achieve. Based on their ability to achieve those set of goals, the employees are assessed. It will provide the progress level of the employees regarding their performance.


TESCO set timeline for the task assigned to each employee. Timeline act as the standard for the employees, where they have to be able complete their task within the set timeline of the organization (Green et al. 2012). The strength and weakness of the employees are measured in terms of their accountability in accomplishing task within set time.

Monitoring and controlling techniques

Monitoring Techniques

In order to monitor the success and sustainability of the organization, Tesco has thought of setting up five monitoring techniques, which can be referred to be performance indicators.

Serial Number

Monitoring Techniques



Customer retention

·         Tesco has thought of retaining 70% of its consumers each year

·         Delivery of service through employees is thought to be the core factor of customer retention


Gaining loyal consumers

·         Tesco has thought of enhancing the consumer base by reaching up to 29.1% of new consumers

·         This benchmark is supported by experienced marketing professionals from different nations


Customer shopping across channels

·         59.7% of the loyal consumers must try out multiple channel of products from Tesco

·         New multichannel offerings must entertain all types of target market ranging from sized stores to grocery and online services


Family brand shopping

·         Multichannel multibrand strategy covering interest of 64.3% of loyal consumers, who buy categorized items from Tesco only

·         This helps in identifying creation of value across channels and brands


Loved by customers

·         Beyond functional measures, Tesco believes in customer advocacy involving emotional connection with products

Table: Tesco performance monitoring techniques

(Source: Simonet and Tett 2013)

Controlling Techniques

Gap Analysis

According to Fugate (2012), Tesco is one such multinational organization that constantly believes in addressing employee grievances and issues. Qualified service can only be delivered through satisfied employees and therefore, any issue from employees is instantly addressed.

Figure: Gap Analysis

(Source: Fugate 2012)

Based on the above diagram, Tesco determines the amount of expectancy level at each financial year. The difference between present outcome and expected outcome will help in determining the gap. Such gap between management and employees are eradicated at every six months.

Budget controlling using variance technique

According to Ali (2013), the difference between expected budget and actual budget is termed as variance. Tesco controls its budgetary variance by increasing its amount of profit at each year. This is indicated by increase in sales revenue than budgeted. Plugge, Bouwman and Molina-Castillo (2013) pointed out that Tesco spots adverse variances quite before the actual happenings and reduces the same by cutting down wastage and thereby reducing costs. Termination of low performing employees and enhancing online promotions are the common ways that Tesco has taken till now for controlling budget.

Non-budget Control Technique

At present, Tesco follows seven non-budgetary control techniques. These are as follows:

Serial Number




Statistical data

All available and needed collectable data are presented in graph, table and charts. The representation helps in performance assessment.


Special report and analysis

Particular performance areas are intruded through reports. Special staffs are appointed to collect such data and based on that gap is analyzed.


Break-even analysis

Interrelationship between sales and expenses is analyzed. Volumes of revenues against expenses are also analyzed, helping financial stability.


Internal Audit

Internal deviations are identified through this technique and necessary steps are taken. This is the most traditional technique that Tesco has taken.


Network Analysis

Project evaluation and review technique through network diagram is analyzed. Sequence of events through critical path is determined against which operations are carried out.


Standard Costs

Standard costs are calculated through labor and material cost against each unit’s standard overhead cost.


Ratio Analysis

Proper mix up and interrelationship of factors with each other is analyzed. The factors are net sales to inventory, administrative expenses to sales, net sales to working capital, quick ratio and break-even point.

Table: Non-budget Control Techniques of Tesco Plc.

(Source: Ouimet and Zarutskie 2014)


While concluding the study, it can be said that the role of management in TESCO are to plan, organize, lead and control the entire business operation. The mission of the organization is to be champion through improving the quality of customer’s life. The organization maintains transparent communication with the workplace among all hierarchy level. The role of human resource can be found in recruitment and employee relation. TESCO uses applicant tracking system and interview technique for recruiting capable employees for the organization. Along with maintaining effective organizational objectives, the organization concern for employees’ interest as well. They use Win-Win technique and compromising technique for resolving employee conflicts.

Reference List

Ali, A., 2013. How to differentiate between ‘Leadership’and ‘Management’Function in Organization: A Review of Scholarly Thoughts. International Journal of Economics Business and Management Studies, 2(1), pp.38-44.

Back, Y., Parboteeah, K.P. and Nam, D.I., 2014. Innovation in emerging markets: The role of management consulting firms. Journal of International Management, 20(4), pp.390-405.

Beadles, I.I., Aston, N., Lowery, C.M. and Johns, K., 2015. The impact of human resource information systems: An exploratory study in the public sector. Communications of the IIMA, 5(4), p.6.

Boddy, C.R., 2014. Corporate psychopaths, conflict, employee affective well-being and counterproductive work behaviour. Journal of Business Ethics,121(1), pp.107-121.

Dusterhoff, C., Cunningham, J.B. and MacGregor, J.N., 2014. The effects of performance rating, leader–member exchange, perceived utility, and organizational justice on performance appraisal satisfaction: Applying a moral judgment perspective. Journal of Business Ethics, 119(2), pp.265-273.

Espinilla, M., de Andrés, R., Martínez, F.J. and Martínez, L., 2013. A 360-degree performance appraisal model dealing with heterogeneous information and dependent criteria. Information Sciences, 222, pp.459-471.

Fugate, M., 2012. The impact of leadership, management, and HRM on employee reactions to organizational change. Research in personnel and human resources management, 31(1), pp.177-208.

Green Jr, K.W., Zelbst, P.J., Bhadauria, V.S. and Meacham, J., 2012. Do environmental collaboration and monitoring enhance organizational performance?. Industrial Management & Data Systems, 112(2), pp.186-205.

Ji, L., Huang, J., Liu, Z., Zhu, H. and Cai, Z., 2012. The effects of employee training on the relationship between environmental attitude and firms' performance in sustainable development. The International Journal of Human Resource Management, 23(14), pp.2995-3008.

Nedelko, Z. and Potocan, V., 2013. The role of management innovativeness in modern organizations. Journal of Enterprising Communities: People and Places in the Global Economy, 7(1), pp.36-49.

Ouimet, P. and Zarutskie, R., 2014. Who works for startups? The relation between firm age, employee age, and growth. Journal of financial Economics, 112(3), pp.386-407.

Plugge, A., Bouwman, H. and Molina-Castillo, F.J., 2013. Outsourcing capabilities, organizational structure and performance quality monitoring: Toward a fit model. Information & Management, 50(6), pp.275-284.

Randle, M., Leisch, F. and Dolnicar, S., 2013. Competition or collaboration? The effect of non-profit brand image on volunteer recruitment strategy. Journal of Brand Management, 20(8), pp.689-704.

Rees, G. and Smith, P., 2014. An introduction to the organization, its environment and human resource management. Strategic Human Resource Management: An International Perspective, p.3.

Schumacher, D., Schreurs, B., Van Emmerik, H. and De Witte, H., 2015. Explaining the Relation Between Job Insecurity and Employee Outcomes During Organizational Change: A Multiple Group Comparison. Human Resource Management.

Simonet, D.V. and Tett, R.P., 2013. Five Perspectives on the Leadership–Management Relationship A Competency-Based Evaluation and Integration. Journal of Leadership & Organizational Studies, 20(2), pp.199-213.

Sonnentag, S., Unger, D. and Nägel, I.J., 2013. Workplace conflict and employee well-being: The moderating role of detachment from work during off-job time. International Journal of Conflict Management, 24(2), pp.166-183. 2016. Retrieved 12 August 2016, from


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