THE BUSINESS SCHOOL

Impacts of motivation on employee's performance- A Case Study of Tesco (UK)

Word Count: 3244 DISSERTATION PROPOSAL

Coursework 2

Sadia Asif

21704279

Contents
Abstract .................................................................................................................................................. 4

1. Background ....................................................................................................................................... 5
2. Introduction Of Company (Tesco) ................................................................................................. 6 3. Aims, Research Questions and Objectives ................................................................................... 6 3.1 Aims and Objective .................................................................................................................... 6 3.2 Research Problem ...................................................................................................................... 7 3.3 Selected Organisation - Tesco ................................................................................................. 7 4. Literature Review ............................................................................................................................. 8 4.1 Introduction ................................................................................................................................ 8 4.2 What is Motivation ..................................................................................................................... 8 4.3 Employees Potential ................................................................................................................. 9 4.4 Role Perception .......................................................................................................................... 9 4.5 The employer has to: ................................................................................................................ 9 4.6 Situational factor ........................................................................................................................ 9 5. Motivation Theories ....................................................................................................................... 10 5.1 Maslows Theory of Motivation .............................................................................................. 10 5.1.1 Esteem Needs .............................................................................................................. 11 5.1.2 Social Needs ...................................................................................................................... 11 5.1.3 Safety Needs ..................................................................................................................... 11 5.1.4 Physiological Needs .......................................................................................................... 11 5.2 Mars Model of Individual Behaviour ...................................................................................... 12 5.3 ERG Theory ............................................................................................................................... 13 6. PERFORMANCE ............................................................................................................................... 13 6.1 HOW DOSE MOTIVATION AFFECT PERFORMANCE ........................................................... 13 7. TESCO .............................................................................................................................................. 14 7.1 INTRODUCTION ....................................................................................................................... 14 7.2 TESCOS EMPLOYEE EMPOWERMENT .................................................................................. 14 7.3 HOW TO MOTIVATE WORKFORCE ....................................................................................... 14 8. Research Methodologies ............................................................................................................... 16 8.1 Proposed Research Method(s) ............................................................................................... 16 8.2 Type of Research ..................................................................................................................... 16 8.3 Data Collection Methods ......................................................................................................... 16 2

8.4 Research Design ...................................................................................................................... 17 8.5 Population Definition ............................................................................................................... 18 8.6 Sample Size and Selection Procedure ................................................................................... 18 8.7 Development of Questionnaire and Pre-testing .................................................................. 18 8.8 Data Analysis Technique ......................................................................................................... 18 8.9 Ethical Issues ............................................................................................................................ 19 9. Access and Planning ...................................................................................................................... 19 9.1 Introduction .............................................................................................................................. 19 9.2 Time Plan .................................................................................................................................. 19 References and Bibliography ............................................................................................................ 20

Abstract
This study elaborates impact of motivation which causes energetic effect on employees performance. Respective studies and research theories have been discussed to identify how motivation is important to enhance workability of organisations workforce. Primarily it has been observed that those employees are more beneficial and satisfied who are motivated rather than those who are less motivated and more likely to leave their job. Study has tried to identify those motivational or dismotivational factors which affect employees performance. Tesco has been found a market leader in UKs retail industry. Author exceptionally evaluated Tescos strategy and work environment regarding employees motivation as 472,000 workers are working in different stores. Research will be consists of both type of data quantitative and qualitative. Data would be gathered by interviewing and filling a questioner from the employees working in different branches of Tesco. Ethical issues will also be considered. The outcomes of this paper will be helpful in making efficient strategy regarding employees motivation which directly affects organisational performance.

1. Background
In organization mangers are the only ones who are responsible to be work done through their subordinates. In this context motivation plays a vital role and managers must know how to motivate their employees in order to get work done. In fact motivation is not an easy task and also quite difficult to act upon motivational secrets rather doing discussions. With the help of enormous research on this topic, motivation still remains poorly described and though poorly practised. Human nature is the basic element which needs to be understood thoroughly before initiating motivational procedure. In working organization managers must got this ability that they should better understand human nature of their employees so that they can accordingly motivate them for particular task. There is a famous saying that You can take a horse to the water but you cannot force it to drink; it will drink only if its thirsty so with people. People behave in same way, they only do what actually they want to do or they do for what they are motivated to. Either these are routine tasks or particular job assigned by their managers, employees should be motivated whether by their managers or through itself. Some people are self-motivated in their nature and some are not. So it is managers duty to motivate them accordingly which is absolutely important and an essential ingredient for the organisational success, yes employees motivation. Most commonly in business organizations managers seems to be leaders for their employees. Leadership and motivation are two well famous, loudly spoken and also wrongly interpreted words. Managers are heavily inspired by leadership theories and suppose them leaders. Most of them think and behave like knights of their army with extra ordinary qualities despite those qualities never smelled them ever. This instinct is quite dangerous both for workers as well as for that organization. Contrarily workers might have not that kind of views about their managers or so called leaders. Motivation is also widely misconduct among people How can i motivate the members of my team? this basically has vanished the concept of motivation which lies in performance rather than dictation.

We cannot ignore the significance of leadership in motivation and a pivotal link between them. Leadership is basically responsible for setting direction for organisation and stick employees with them. Leaders do have exceptional qualities in their personalities which are eloquent in attaining extraordinary targets for the organisation. These individuals are primary motivational source for the workforce (Torrington, Hall&Taylor, 2005).

2. Introduction Of Company (Tesco)

As I had selected TESCO as my case study, so in the light of above mentioned theories of Employees motivation, it is necessary to mention bit about TESCO. Tesco is a United Kingdom based international Retail Supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Establish in 1924. Tesco is the third largest retailer in the world next to Wal-Mart, Carrefour and is operating around 2,440 stores and employing over 400,000 people. Tescos market share of UK retailing is 30%. (Dave Hughes, 2011) Tesco has also diversified itself into several areas such as clothing, fashion, Finance, electronics, furniture, petrol and telecommunication. Tesco has its own website for online shopping meeting current requirement of Information Technology. This website is hugely recommended as one of the most actively viewed website where about 2440 orders been take place per week.

3. Aims, Research Questions and Objectives

In this chapter author has explained research questions to be explored and objectives associated with this research work.

3.1 Aims and Objective

The main aim of this research is to investigate how motivation has a great impact on employees performance which leads to success or failure of business organizations. In case of TESCO, how it gained a consistent place in the market in terms of employees motivation.

The objectives of this study are as follows; Research Objective 1: To explore the relationship between employees motivation and their performance. Research Objective 2: To identify impact of employees motivation on organizational performance such as TESCO. Research Objective 3: Evaluate factors which are crucial in employees motivation. Research Objective 4: Finally analyse the role of management in improving performance of employees by motivational factors.

3.2 Research Problem

This research will also depict how motivation of employees in Tesco affects the performance and delivery of good customer service. It also aligns some problems which caused by demotivation among employees and due to which customer service may affects badly. In short, motivation should cause such an environment in which employee must enjoy performing his/her duties and make sure that must linked to job satisfaction.

3.3 Selected Organisation - Tesco

As mentioned above in Background of this paper, there are number of motivational theories which have been discussed in past few decades. Recently this discussion get strong grip over known managements as TESCO. TESCO is the one of the largest retailer in the world and since few years it has gained consistently very strong position in the world share market. There is a lot of research has been made on TESCOs success story, but in this research I am very inspired to scratch TESCOs strategies in motivating its employees to get current status of World Market Leader.

4. Literature Review 4.1 Introduction

In this section some excerpt will be provided from the previous studies about motivation, role, impact and different theories about motivation. Furthermore, author has concluded some factors which involved in employees motivation which directly affect their performance and companies as well.

4.2 What is Motivation

Employees are as blood in human body as in any organization. They directly affect the performance of overall any business or organization. So managers supposed to be capable of motivation and should motivate employees accordingly in order to make their organization. Managers need to know attitude of each employee and those factors as well which really motivate them individually. Better they know the needs of their employees, better they can motivate them. Susan Velez describes motivation as a psychological phenomenon and says Motivation is an attribute which is essential to attain anything in life, without motivation distress overcome to you and youll lose in first attempt. So this is motivation that keeps a person tie with his/her goal and give him/her a stand in calamity (Susan Ve-lez, 2005).

In psychology Motivation is well researched and analysed. More often managing staff faces obstacles in motivating their employees. They find that some of the staff members use their good enough energy to perform their duties and others consume very little in order to do daily activities at workplace successful. (From http://www.accelteam.com/motivation/index. html accessed at 11/04/2011). Geller explains, motivation deduced from a Latin word movere means to move. Hence it described as how behaviour starts, energized, sustained, directed and stopped (Geller, E.S. 2001).

Stewart described motivation as a behaviour that moves a person to do something. Generally there are two factors which trigger our most of activities, a potential reward and outcome of not doing something (Stewart, 2004).

4.3 Employees Potential

In order to perform a successful task an employee must got certain abilities such as his/her propensity, skills, some borne characteristics and capability to learn while living in learning organisation. It is primarily very necessary to put right person on right place in order to make right work team.

1. Select intelligent staff. 2. Develop certain abilities necessary for their daily basis jobs. 3. Redesign job to make employees abilities appropriate.

4.4 Role Perception

Role perception is a behaviour which is necessary to get wished results. The employee needs to: 1. Understand that what jobs must done by him 2. Understand the importance of relative tasks. 3. Understand his/her preferred behaviours which are helpful to finish tasks.

4.5 The employer has to:

1. Provide thorough information regarding their role. 2. Provide employees performance feedback. 3. Provide necessary training regarding their job description.

4.6 Situational factor

There are few external or internal Environmental factors which constrain or facilitate behaviour. 1. Time
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2. People 3. Budget 4. Work facilities

5. Motivation Theories

5.1 Maslows Theory of Motivation

Abraham Maslows presents a motivation theory known as Maslows Hierarchy of needs or need theory, in 1954. In his book Motivation and Personality he sketched need theory as a pyramid which consists of four layers, on the top of the pyramid there is self-actualization while largest needs of human being are at the bottom. The basic four layers are consists of what Maslow called D-need means Deficiency needs such as Esteem, Friendship, love, sense of security and physical needs. He explained that if these D-needs are not justified to the employee he feels himself demotivated and tense. He used term Meta motivation, the people which walk past basic needs called meta-motivated (Maslows, 1954). The main crest of Maslows Theory of motivation is Self-actualization. Selfactualization is about to explore ones self at maximum level. All other lower level needs can be fulfilled but exploring him/herself, this need never be satisfied. There are always infinite growing chances psychologically. Self-actualized people have motivators as follows:

Truth Justice Wisdom Meaning

Maslow says there are bunch of people who approach this self-actualization. This bunches of people really motivate by truth, justice and wisdom.

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5.1.1 Esteem Needs

This is the primary need of an employee, when he/she performed hard in the interest of company; he/she loves to attain esteem needs. These E-needs can be classified into two, internal or external motivator. Below are few examples of Esteem needs.

Recognition (external motivator) Attention (external motivator) Social Status (external motivator) Accomplishment (internal motivator) Self-respect (internal motivator)

5.1.2 Social Needs

When an employee fulfilled his/her basic needs he/she feels higher level needs than the lower one. This higher level needs usually characterized as Social which is as follows.

Friendship Belonging to a group Giving and receiving love

5.1.3 Safety Needs

After getting social needs, safety needs comes up in employees mind. Which are as follow?

Living in a safe area Medical insurance Job security Financial reserves

5.1.4 Physiological Needs

Physiological needs are as under:

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Air Water Food Sleep

Source: A.H. Maslow, A Theory of Human Motivation, Psychological Review 50(4)

(1943): 370-96

5.2 Mars Model of Individual Behaviour

MARS Model of Individual Behavior actually talks about that behavior of an individual which comes up as a result of internal or external factors which influence separately or together on an individual. This model basically discusses an individual motivation, its capabilities, its role in organization and some other situational factors. In fact these four are the prime tools and reasons quite helpful evaluating ones behavior and results. This model can be used for several circumstances and situations but especially this is for the management, business industry and organizational behavior studies (Karin HB&Liber AB, 2007). According to Steven L. Mc Shane, MARS model describes a collective impact which affects performance of an individual in organization. According to MARS model for
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example, if sales force of any organization are full equipped with motivation and good product knowledge but with insufficient resources (Situational Factors), how they could perform well. (Steven, Mary A. Von Glinow, 2003).

5.3 ERG Theory

ERG theory basically initiated by Clayton Alderfer and it is actually extension of Maslows Theory of Motivation in which he tells about basic needs of individual. But in ERG theory Clayton suggest that those five basic needs explained earlier by Maslow can be grouped into following groups (Nancy Brokowski, 2011).

Existence Relatedness Growth

Name of that theory is basically collection of first letters of the E-existence, Rrelatedness and G-growth (Alderfer, C. P., 1972).

6. PERFORMANCE
Herzberg says, having fewer dis-satisfiers does not motivate a worker to do a good job, but only to stay in it" (Herzberg, 1959). Employees performance directly connected to their motivation level, more they motivated more they work hard.

6.1 HOW DOSE MOTIVATION AFFECT PERFORMANCE

Basically motivation is an internal process which results to that kind of behaviour which leads into success and fulfilment of needs. Here is the performance formula Performance = Ability Motivation Resources (2x2x2=8) Source :
Carter, S., Shelton, M., The Performance Equation - What makes truly great, sustainable performance", Apter Development LLP (2009)

Suppose there is no motivation, put 0 in above formula and get result 0. So motivation is core element which directly proportional to the success of any organization.

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7. TESCO

7.1 INTRODUCTION
Jack Cohen was a man who sold groceries goods on a stall in the street of London. This man is basically founder of Tesco. Jack purchased tea for his stall from T.E Stockwell and furthermore it merges with and Tesco come in being in 1919. Tescos first shop evolved in 1929. Now Tesco has more than 2200 stores all over the world. With the passage of time Tesco went diversified and now it deals in different goods and services like banking, online shopping through its own website, insurance, telecommunication and film making. Tesco is UKs largest retailer having 3.4 billion of net profit margin (Potter, Mark "Tesco to outpace growth at global rivals study". Reuters accessed at 12/04/2011).

7.2 TESCOS EMPLOYEE EMPOWERMENT

Tescos workforce consists of more than 468,000 employees worldwide. It has very clear strategy about employees as they provided full training and product knowledge and strong grip on customer service as it is now basic tool for getting competitive advantage. Tesco knows that employees training and proper information about customer service and product is core business process and with that they can grow consistently worldwide. Tesco motivates their employees in various ways to assure best customer service which is one of the Tescos characteristic and secret of getting strong competitive advantage in retail market.

7.3 HOW TO MOTIVATE WORKFORCE

Tesco believes very strongly that business confide in two groups of people, customers and their staff. They also believe staff must have unique and diverse lifestyle even when they not at work. To make sure this unique diverse lifestyle they provided different kind of rewards and schemes for the employees (Johnson, J.A.
2009).

Making sure working hours should be flexible.

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 To overcome employees health issue Tesco provide low or free health benefits. Tesco provide discounted or reduced gym membership Handsome salaries packages Tesco offers special staff discount at every store And also company share options. Each business must look after their activities and ensure they create respect and trust among their workforce (Ed, Rose, 2004), as they have been well identified by Tesco. Tesco has motivated their employee by creating a cooperative and healthy work environment, assigning sensible and realistic goals and offering above mentioned valuable rewards. A motivated employee works at Tesco accompanied with others to attain periodical individual and team goals. It means Tescos employee keen to provide vigorous customer service and devoted to get feedback from them. Tesco has a vibrant strategy regarding rewarding their employees, these rewards in actual act as motivational factors. These factors basically cement employees with their organization such as TESCO. Tesco provide multiple kinds of rewards to their staff so that they can be motivated and remains loyal to them. Tesco offers free company share to those employee who has worked for more than 1 year. Pension scheme for the employees. Offering multiple discount vouchers such as Christmas or pay slip vouchers. Health care reward is one of the attractive facilities among staff as it is free or at minimum cost. Gym membership. Holiday discounts.
(Kotelnikov, v., Effective Reward Systems Increasing PeCreating Happier Employees)

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8. Research Methodologies 8.1 Proposed Research Method(s)

A scientific study is to be needed in order to get resolution of the research issue which been mentioned earlier. Websters in 1985 argued that scientific research should be consolidating systematic planning and research must be led on different foots. At each stage of research, internal and external integration must be assured by researchers. On the top researcher must have such an adaptability to tune research programs and their technique accordingly when required.

8.2 Type of Research

In this research both quantitative and qualitative research would be contemplated. Research passes through various stages before it gets its anticipated aim (Zikmund (2000), Cooper and Schindler (2006)). Furthermore, in order to find out important directions of project, in depth literature review is required. On the basis of reviewed literature different aspects of research must be analysed. Findings of research needed to be analysed and for this purpose questioner are quite helpful. In addition to this as Cooper and Schindler 2006 contributed that research classification is also mandatory. On the basis of findings this research might be descriptive, crossfunctional or might be communication sort. Also a complete survey must be carried out which will filled by respondents.

8.3 Data Collection Methods

In order to led this research data will be collected in both types primary and secondary. Secondary data will be gathered from magazines, books, journals, websites etc. On the other hand primary data will be collected with the help of questioner and surveys while involving employees directly from different Tescos stores. Among them primary data is more important as it states the relevant data being collected for the research purpose.

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8.4 Research Design

Problem Identification Literature Review Proposal Development Proposal Submission

Proposal Acceptance

Revise

Start of Research

Qualitative Research Instrumentation

Quantitative Research Instrumentation

Data Collection Data Analysis

Data Collection Data Analysis Findings Report Writing

Report Submission

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8.5 Population Definition

In research, researcher indicates a totality of any peculiar object which refers to whole of the population involved. The reason of mentioning this reference is extract a subset which will be studied by researcher for finalizes this research. Further researcher instigates some sort of inferential statics in order to achieve a judgement which will be applicable for the whole of population which consists of all the employees of Tesco.

8.6 Sample Size and Selection Procedure

According to Cooper and Schindler, 2006, researcher will use both probability based and non-probability based options in order to select a sample. In the non-probability based sampling there are two main advantages one is cost and other is time saving. Hence non probability based sampling method will be used in this research. It is also suggested that researcher will use factor loading technique. Garson (2009) suggests that more than 100 employee is the right size to be used.

8.7 Development of Questionnaire and Pre-testing

In this research, as stated earlier a complete survey must be required using a comprehensive questioner. In different Tescos branches located in different areas, employees would be asked that questioner. Also this questioner must be go through testing phase which contains about four or five respondents before its official launching.

8.8 Data Analysis Technique

It is anticipated that despite using circumstantial statistical analysis, factor analysis technique would be used comprising of principle component method and varimax rotation. This called multiple data analysis technique and is widely employed. The data analysis will be made in MS Excel 2007 and MS Word 2007 would be used for report writing.

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8.9 Ethical Issues

The total data which been collected during the research should be kept and used confidentially and All the data collected during this research will be used confidentially and with anonymity as long as respondents will grant permission as mentioned by Bell (2005) as well. These both aspects must be considered most important during the any part of research.

9. Access and Planning 9.1 Introduction

This chapter briefly summarise the research plan. Furthermore, it also highlights the ethical issues that will be considered during this research.

9.2 Time Plan

Time plan for this research has been shown in the chart below;
Activities
W 1 W W 2 3 W 4 W 5 W 6 W 7 W 8 W 9 W 10 W 11 W 12 W 13 W 14 W 15 W 16

Session with Supervisor Completion of Literature review Research Design Conducting Interviews Analysis Write up of Report Binding and Submission

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References and Bibliography

Alderfer, C. P., Existence, Relatedness, and Growth; Human Needs in Organizational Settings, New York: Free Press, 1972. Carter, S., Shelton, M., The Performance Equation - What makes truly great, sustainable performance", Apter Development LLP (2009) http://www. apterinternational.com/articles/PerformanceEquationArticle0609.pdf Dave Hughes, http://www.reuters.com/article/2011/02/17/tesco-igd idUSLDE71F1LR20110217 [Accessed on 10 May, 2011] Donald R. Cooper & Pamela S. Schindler, Business Research Methods, 7th Ed. 2010, McGraw Hill. Derek Torrington, Laura Hall & Stephen Taylor, Human Resource Management, Prentice Hall, 2005. Ed Rose, Employment Relations, 2004, p69, Prentice Hall. Employee Motivation Theory and Practice accessed http://www.accelteam.com/motivation/index.html accessed at 11/04/2011. Geller, E.S. (2001). The psychology of safety handbook. Boca Raton: Lewis Publishers. Garson, D. (2009),Research Designs http://faculty.chass.ncsu.edu/garson/ PA765/design.htm accessed at 10/05/2011. Herzberg, Frederick (1959), The Motivation to Work, New York: John Wiley and Sons. Johnson, J. A. (2009) Health Organizations, Theory, Behavior, and

Development, 1st Edition, Sudbury: Jones and Bartlett, LLL MA

Judith Bell, Doing Your Research Project, 2nd Ed, 2005, Open University Press. Karin Holmblad Burnson & Liber AB, The Notion of General Management, Copenhagen Business School Press, 2007. Kavita Singh, Organizational Behaviour Text & Cases, 2010, Dorling

Kindersely p150-151

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 Kotelnikov, v., Effective Reward Systems Increasing PeCreating Happier Employees. Maslow, A.H. (1970). Motivation and personality. New York: Harper & Row. McShane, S.L., & Von Glinow M., A., (2005), Organization Behaviour, 3rd Edition, The McGraw Hill Companies, NY 140-147 Nancy Borkowski, Organizational Behaviour in Heath Care, Jones&Bartlett, 2011. Potter, Mark "Tesco to outpace growth at global rivals study". Reuters accessed at 12/04/2011. Steven Lattimore McShane, Mary Ann Von Glinow, Organizational Behaviour, 2003, McGraw Hill. Stewart Watkiss, motivation, A Study of Motivations for the member of a Volunteer Organization Published in 2004, for Rugby St. John Ambulance. Susan Velez, 2005 http://EzineArticles.com/945902 accessed at 13/04/2011. What is Motivation,http://www.cipfa.org.uk/students/nsf/download/nsf05_

motivation.pdf accessed at 12/05/2011.

Webster, M. (1985). Webster`s nith new collegiate dictionary. Meriam Webster Inc. Zikmund, W.G.(2000). Business research methods. 6th ed. Orlando, US: Dryden Press.

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