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Impact Of Employee Motivation On Their Job Satisfaction: A Case Study Of Tesco, UK

ABSTRACT

This study analysed the impact of employee motivation at Tesco on enhancing job satisfaction of its employees. For conducting the research study, secondary information were gathered from various external and internal secondary sources. Primary information was collected by conducting individual in-depth interview with manager and self-administered survey with employees of Tesco, UK.  The study findings revealed that, Tesco implemented various motivations programs like training and development programs, rewards and recognitions programs and staffs discounts for enhancing employee job satisfaction. Most of the employees were satisfied with motivational programs of the company. However, over work pressure, sudden changes in company policies, long working hours and lack of salary increments created employee dissatisfaction. The researcher recommended for the adoption of effective training and development programs, increment in salary and incentives and consideration of employees’ opinions for enhancing the job satisfaction of the employees.  


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CHAPTER 1: INTRODUCTION

1.1 Introduction

Due to high competition in the market, employee job satisfaction is necessary for retaining potential staff in the firm. As per Ali and Ahmed (2009), employee motivation is an important strategy applied by many organizations for improving job satisfaction of employees. Incentives, effective working environment, reasonable pay and effective training and development programs are the commonly used motivation programs for enhancing the job satisfaction and thereby performance of employees (Saleem, Mahmood and Mahmod, 2010). However, Spanier (2015) observed that, presently most of the retail and fast food organizations like KFC, Asda, Primark and McDonald’s face high number of employee turnover due to over work pressure, lack of effective communication, gender and racial discriminations and unequal pay. Such issues in the firms demotivated the staffs and it negatively affects the employee performance. In this context, the present study will investigate the impact of employee motivation on job satisfaction by focusing on the retail sector in UK. 

Measurement of job contentment is a complicated task because the description of work satisfaction varies according to different organizations and also from each individual to another within the company suggests Aziri (2011). Retail industry is most sophisticated in terms of segmentation, integration and concentration. It employs almost 3 million personnel’s i.e.; over 11% of the total workers and the retail sector contributes to almost 8% GDP of the UK (Akter, 2012). Also Akter (2012) states that innovative management schemes and cultures are utilized by these retailers to enhance and ensure efficiency at all levels of its development. One of the important tools for HR and management control is the reward system.

Tesco PLC, world’s second largest retailer in terms of revenue and third largest in terms of profits, is a general merchandise and multinational grocery retailer headquartered at England, UK. With 28.4% market share, Tesco has its stores across 12 countries (Tesco, 2015). Having its outlets at various cultural domains, motivation of the employees on continuous basis is vital for preserving job satisfaction among the employees and thus realizes the aims and objectives of the business venture. Hence this study investigates the impacts of employ motivation on job satisfaction, considering Tesco, UK as a case study.

In the competitive business world, job satisfaction of employees is necessary for the retention of potential employees in the firm. Employee motivation programs play an important role in enhancing job satisfaction and performance level of staffs. However, unfair wages and overwork pressure in retail sector demotivated employees and it reduces employee performance (Singh and Tiwari, 2011). Being one of the leading retailers in UK, Tesco offers career development and training programs, high basic pay packages, pension and incentive schemes to motivate and improve the satisfaction level of its employees (Rangaraju and Kennedy, 2012). However, Tesco has recently been accused of poor labour relations with its employees for sick leave regulations, cutting down pay for employees working in holidays and overtime and anti- labour union policies (Lowery, 2016). In this context, the present study is significant for evaluating effectiveness and issues associated with the motivational strategies of Tesco and it offers suggestions for improving the strategies.     

1.2 Aim and objectives of the research

The present study mainly aims to analyse the role of employee motivation on enhancing the job satisfaction of the employees by considering the case of Tesco in UK.

The main objectives are:

  • To analyse the major factors affecting employee job satisfaction in retail sector.
  • To investigate the significance of employee motivation in retail industry
  • To assess the role of employee motivation on enhancing employee job satisfaction at Tesco.
  • To provide recommendations for improving the employee motivation programs of Tesco for enhancing job satisfaction.

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

Employee motivation and its various influential factors such as incentive pay, reward system and working environment have been a common theme for academic practitioners and researchers from marketing disciple (Hameed and Waheed, 2011).

2.2 Employee motivation

Hameed and Waheed (2011) defined employee motivation as an internalized process which stimulates the performances of employees, through making alternation on their attitude and behavior that works well for the amelioration of the organization.  In essence, Furham, Eracleous and Chamorro-Premusiz (2009) highlights employee motivation as the central theme of organization that encourages employees to perform tasks assigned to them with great commitment and additional effort.

2.3 Theories of motivation

  • Maslow’s Theory of Motivation /Satisfaction

The main aspects of motivation includes interesting, challenging work and  experiencing new opportunities which is developing professionally and personally for providing valuable contributions to the work.  Maslow’s (1968) theory was proven to be the best theory on motivation. Even though this theory was not focused on work incentives, the effect can easily be identified and can draw keen attention, states Pullen (2014.)

Figure: 2.1 Maslow’s Theory of Motivation /Satisfaction

Source: Pullen (2014)

According to Maslow, there are five types of grades allocated to classified needs. The dissatisfaction of one will affect the other needs also. When all the needs are satisfied it will lead to individual satisfaction and thereby initiating motivation, says McKenna (2012).

The hierarchy of needs is mostly illustrated using a pyramid with the fundamental needs at the bottom and the self actualisation needs at the top.Maslow classified these needs in to different sections that are, social needs, self-actualization, for respect and the safety and physiological needs. In physiological needs covers the needs for oxygen, food, clothing and water .These are the prime needs specified by Maslow. Next is the safety need, every person have the right to work in a safe condition. The next need is the social need. It covers the need for appreciation, respect, success, status and fame. The final need in the top of the pyramid is the self actualization need which aims the dreams and hopes of the employee.

McKenna (2012) identified that, it is difficult to use qualitative measurements in these dimensional needs specified by Masglow. This in turn affects the timing and satisfaction of the next level needs, reports McLeod (2014).

  • Herzberg’s Two-Factor Theory

According to this theory job satisfaction and dissatisfaction are independent of each other. Motivational factors and hygiene factors are one of the two factors that affect the satisfaction and dissatisfaction and also linked with higher and lower human needs. Company policy, work conditions, interpersonal relationships, job security, salary and social status are coming under hygiene factors. Hygiene factors are the fundamental factors that should be provided by any organization before they think about motivational aids, views Whitehead (2015).Motivational factors associated with nature of work, progress, responsibility, sense of personal growth, achievement and recognition.

Figure: 2.2 Herzberg’s Two-Factor Theory

Source: Whitehead (2015)

As observed by Herzberg, dissatisfaction can be prevented by incorporating Hygiene factors while motivational factors support job satisfaction. This theory was widely criticized for this particular view. Since some of these Hygiene factors can also act as the motivational element. The difference between the factors of motivation such as hygiene facts, preventing discontent, proffering satisfaction do not depict how the various variables act in job satisfaction states De et al. (2014).

  • Vroom’s Expectancy Theory 

Motivational behaviour defines the procedure that forces an individual to make economical and logical choices while performing certain voluntary deeds states Parijat and Bagga (2014). The individual chooses the action on evaluating the options and on verifying whether the selected action brings him advantages. According to the study of Robbins et al. (2014) an individual should make choices only after assessing the perceived cost and the probability of achieving the success.

 In accordance to the observation of McKenna (2012) expectancy theory point out how the cognitive elements such as thoughts and beliefs influence motivation. If an employee is capable of establishing notable performance, then his performance will be recognized and will be rewarded. The figure that is given below depicts the Vroom’s expectancy theory. 

Figure 2.3: Vroom’s expectancy theory

Source: Parijat and Bagga (2014)

The Vroom’s Expectancy theory focuses on the three main variables as expectancy, instrumentality and valence. Parijat and Bagga (2014) observe that Valence gauges the perception of an individual towards a particular reward he has achieved. The author also observes that there are three different types of valence such as positive, neutral and negative valence. Positive valence occurs when an individual desires to achieve a better reward, neutral valence occurs when he is unconcerned in accomplishing the reward. In negative valence the individual do not wish to achieve the reward.  

In accordance to the study of De et al. (2014) the probability of achieving precise outcomes by an individual is defined as Instrumentality. The author also states that if an individual believes that receiving reward for a performance depends on the effort that he made to achieve it then, he infers that his effort has higher degree of instrumentality in persuading the compensation. In instrumentality the second level effects occurs as an outcome of first level effects. The individual believes that high instrumentality brings first level outcomes thereby achieving better compensation.

McKenna (2012) has observed that Expectancy is purely dependent on the belief of an individual and it is referred as that belief the individual makes on enhancing the performance through increased effort. The author also observes that the expectancy level identifies the performance of an individual in achieving precise outcomes and the values ranges from 0 to +1.

2.4 Job satisfaction

Accoring to Furham, Eracleous and Chamorro-Premusiz (2009), the level of gratification an individual feels about his or her job is known as job satisfaction. The superior- subordinate relationship, working environment, nature of work, salary and other benefits and internal communication influences the job satisfaction level of the employees. Ali and Ahmed (2009) mention job satisfaction as the measurement that dictate up to what extent the employees are happy with their current job. Employee job satisfaction is directly connected with the employee performance. Study of Zaini, Nilufar and Syed (2009) noted that, employee job satisfaction is necessary for enhancing the employees’ loyalty towards the organization and to improve the organizational performance

2.5 Factors effecting employee job satisfaction in UK retail sector

According to Edrak et al. (2013) both intrinsic and extrinsic motivation plays vital role in influencing the job satisfaction of employees.  Various factors effecting job satisfaction of employees in an organization under extrinsic and intrinsic motivation includes:

 Extrinsic motivation

  • Security

Offering the assurance of job continuity in organization enhances the commitment level and confidence of employees (Furham, Eracleous and Chamorro-Premusiz, 2009). Survey conducted by ORC International (2015) identified that 75% of employees in UK gives more emphasis to job security.

  • Rewards and recognition

Appreciating the works of employees by offering them with effective reward system directly influences their desired behaviors and level of commitment towards organization (Ali and Ahmed, 2009). This in turn reduces employee absenteeism and employee turnover up to high extent. 

  • Polices of company

Employee may feel reluctant to accept polices of company that are changed without consultation or prior communication (Furham, Eracleous and Chamorro-Premusiz, 2009). For improving the job satisfaction of employees, company polices must be economical in accordance with standard labor rights (Zaini, Nilufar and Syed, 2009). 

  • Interpersonal relations

The development of special bond with in organization creates positive ambience in work place, mentions Edrak et al. (2013). This interpersonal relationship plays key role in motivating the employees to stay within organization along with high commitment.

Intrinsic motivation

  • Recognition

Psychology of praising the works of employee enhances their job satisfaction and their by stimulates their further commitments towards the tasks assigned. Once the employee feels that their works are valued, the productivity and growth of firm will be eventually increased along with higher employee participation (Furham, Eracleous and Chamorro-Premusiz, 2009). 

  • Workplace environment

The level of productivity and satisfaction of employees is dependent up on the work place set by organization. The work place of organization need to be folded with focused goals, specific tasks and effective coaching and support (Hameed and Waheed, 2011).

  • Personal growth

Job satisfaction of employees is influenced by the level of training and developmental programs offered by organization. Moreover Hameed and Waheed (2011) mentions that effective training and developmental programs is essential for improving the skill inventory level of employees which in turn improves performances of employees and thereby organizational effectiveness.

2.6 Significance of employee motivation in UK retail industry

Attracting and retaining staffs through high investments on employee retention strategies remains common in UK retail sector (Spanier, 2015). The overall background of UK retail sector was seemed as diverse and tech savvy with less employee engagement. The survey conducted by ORC international (2015) by considering 7,000 employees revealed that only 37% felt as valued in organization, among them half of them were encouraged to stay innovative. The major reason for lowered employee engagement were found as due to complicated working hours and the absence of fair payment conditions.

It is essential for the organization to improve employee engagement for improving customer satisfaction.  According to Ali and Ahmed (2009) customers are the centric part of business demanding for quality services and assistance for meeting their instant desires and expectations. Therefore it is in this context the organization recognizes the importance of engaged employees.  Hameed and Waheed (2011) mentions that organization need to provide motivation to employees both in terms of monetary and non monetary for increasing manpower along with reduction in employee turnover rate and absenteeism.

2.7 Importance of employee motivation on job satisfaction in retail industry

The studies of Ali and Ahmed (2009) and have found positive relationship in-between motivation and job satisfaction of employees.   It is the net outcome of motivation and satisfaction that the employees present in organization as in the form of productivity. Thus the degree of productivity could be referred as the degree of motivation received by employees from organization.  Ali and Ahmed (2009) identified the role of motivation, both in terms of intrinsic and extrinsic as pivotal in enhancing job satisfaction of employees. According to Hameed and Waheed (2011) the performances of employees is dependent up on various factors and basically it includes fair rewards against work done, recognition, appraisal, fair working conditions and payments and perks. Moreover the employees may seek out ways to achieve potential career growth from their workplace itself and therefore it is significant for the firms to offer quality training and development programs to employees for improving their level of skills sets. Previous studies of Saleem, Mahmood and Mahmod (2010) indicated that employee turnover rate and absenteeism are more in the firms that offers lowered level of employee motivation.

2.8 Case study of Tesco, UK

Tesco is a leading retailer in UK with more than 468,000 employees serving the stores located across 13 countries.  The manpower of Tesco is impeccable to differentiate while analyzing the productivity of the firm at every year. According to Ali and Ahmed (2009) Tesco have been recruiting more than 11000 talents every year for meeting the long term objectives of firm with high commitment and skill set. In order to improve the growth and productivity Tesco have been offering training and developmental programs to employees at various levels. According to Furham, Eracleous and Chamorro-Premusiz (2009) Tesco considers employees as unique factor for its growth and achievement and hence offers rewards and work life balance through   options to attain company share, staff discounts, discount gym membership, health   benefits and competitive salaries.  Various benefits offered as Tesco to the hard works of employees include availability of save you earn at high interest rate, pension schemes, and free shares after one year, discount cards, free phones with O2, free health checkup, pay slip vouchers, holiday discounts and gym membership.

In-store or in-house training is offered by Tesco to its employees for developing their core skills. Moreover the reports of Saleem, Mahmood and Mahmod (2010) indicates that Tesco have been offering more than 4.5 million training to their employees at each year. Besides, the firm also conducts review on annual performances of employees to understand their contributions towards specific goal set by Tesco.  Moreover the firm implemented a program knows as Tesco Week In Store Together (TWIST) for identifying the impact of policies have on staffs at floor. Furham, Eracleous and Chamorro-Premusiz (2009) mention that Steering Wheel program of Tesco as highly effective in monitoring, controlling and coordinating the performances of employees.

But on contrary, the statements of Elder (2014) indicated the employee turnover rate in Tesco has been increasing year over year.  The reports of Neil (2011) indicated that Tesco has implement new contract and polices that forces employees of the firm to work in disruptive hours and in the way of unsociable.  This complicated changes in polices led number of employees to drop from Tesco and this situation led the firm to face lowered productivity with increased employee absenteeism.

2.9 Summary

In the above literature review, researcher analysed employee motivation and factors that influence employee motivation in an organisation. Also the significance of employee motivation in UK industry is analysed with the help of case study on Tesco, a retailer in UK. Moreover, the researcher also analysed various strategies adopted by Tesco, UK. Researcher also conducts studies based on employee performance with respect to employee motivation. Researcher also analyse in detain the major issues in Tesco in relation to its motivational programs. Also the significance of employee motivation in attaining job satisfaction is analysed and evaluated by the researcher in this section.

CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

According to (Kumar, 2011) research methodology is the process of collecting and analysing the appropriate data for the present research. Data analysis plan, ethical issues, research design and methodology are the key features of this section.

3.2 Research philosophy

Research Philosophy consists of three types of philosophies they are positivism philosophy, Interpretivism philosophy and realism philosophy. The main aspect of positivism philosophy is objectivism. This study is based on realistic knowledge gained from the observations. It is based on knowledge, nature of reality and beliefs, says (Kothari, 2013).

Interpretive philosophy has been used by the author for this present research study, because individual aspects are closely analysed in this method. However the main aim of interpretivism philosophy is to study the core of the research .It also analyses how the individuals are socially interacted. This helped the researcher to understand the issues revolving around motivation and job satisfaction at the work place. Finally individual aspects of the present research were thoroughly analysed in realism philosophy. This Philosophy also links external reality with the purpose of existence and social behaviour of the individuals. It also reviews the research issues on the basis of real world’s situations. Such comprehensive analysis had to be based upon argumentative facts as suggested by previous authors.

3.3 Research approach

Jonker and Pennik (2010) state that deductive reasoning is largely a theory testing technique that tends to move from a general to a specific approach. On the other hand, inductive research is essentially a theory building process that moves from specific to a general approach.

Secondary data analysis has been used here for understanding various elements of motivation and its impact on job satisfaction. So it was necessary to include inductive research approach, says Cresswell (2013). Furthermore, qualitative research data helped to conduct an in-depth as well as a comprehensive exploration of the challenges faced at Tesco (UK) in terms of motivating its employees and the impact of the same on their job satisfaction. Thus by adopting inductive research approach helped the author to analyse how the employee job satisfaction can lead the company to accomplish its goals.

3.4 Research Design

In the opinion of Dawson (2009) academic research mainly uses explanatory, descriptive and exploratory designs. However, the choice of the most apt design depends on the overall complexity of the research under consideration, along with the kind of data to be used.

A descriptive based study was incorporated to study the theories associated with motivation and job satisfaction. Descriptive research is used when research problem is known and objectives, aims and questions have been designed appropriately. As such, it enabled the researcher to evaluate and explore the research problems from various angles, especially into the ‘how’, ‘why’ and ‘when’ of the research questions states, (Kumar, 2011).

3.5 Research strategy

Research strategy referred as the activities incorporated to find out the exact information to accomplish the concerned research. In the view point of Creswell (2013) interview, case study and survey are the main classification of research strategy. Interview and Survey provides direct responds from the participants whereas case study is a handles complex issues associated with the existing situation using real life implications.

Interview aims to provide direct and fresh data which is crucial for this particular research. It can be implemented in informal, structured and semi-structured manner. So the researcher conducted semi structured (flexible structure with open ended questions) interview with a manager of Tesco and also survey of employees in order to present facts, opinions, views and arguments. The researcher adopted survey strategy to collect data from a massive population. It is an effective method for reducing cost and time when information from a large group is considered. The author surveyed the employees and gathered needed information regarding the motivational programs of the firm and how it helped them for better performance. Moreover the author understood their satisfaction level and also the needed changes which they want to be included in the company strategy of motivation. However the researcher identified the impact of motivation and employee’s job satisfaction on achieving the strategic goals of the organisation. The questionnaires for survey and interview were prepared according to the objectives of the research and the outcomes helped the researcher to revolutionize enough recommendations for improving the job satisfaction level of Tesco employees.

3.6 Data collection methods

Data collection method includes both primary and secondary methods. Primary data consists of original as well as direct information from the individuals or groups. On the other hand facts and information taken from other researcher’s study are referred as secondary data views, Walliman (2010). Qualitative and Quantitative methods can also be used to collect primary as well as secondary data.

Primary and secondary data collection methods were effectively utilised by the author for accomplishing the objectives of the study. Qualitative as well as Quantitative data were used in this study for collecting primary data. Inorder to collect qualitative data the researcher interviewed the manager and Survey of employees provided the necessary quantitative data. This helped to explain various motivational needs and job satisfaction issues faced by Tesco UK. As such, the researcher integrated extracted reports from Tesco’s website to analyse the business performance of Tesco in the UK. This secondary data analysis also added value to the primary data. In addition to that the author also used secondary sources like journals, newspapers, online sources and books. for adding more accuracy for the research study.

3.7 Sample selection

(Yin, 2009) says it is difficult to carry out a research problem on the basis of number of groups or individuals. Implementing sampling method is effective for achieving the objectives of the study in a short period of time. The main sampling methods are probability sampling and non-probability sampling.

The researcher incorporated convenient sampling method for the present study. This is a no-probability sampling, which helped the author to conduct the study according to the convenience of the manager as well as employees of Tesco UK. The whole population of Tesco cannot be taken for the study because it was difficult and time consuming task. So only selected outlets in London were chosen for the survey. So samples were selected adopting the convenient sampling technique. This study was based on the semi-structured interview of one manager and survey of 20 employees of Tesco, UK. The researcher visited three outlets of Tesco located in Bedford Street, Notting Hill Gate and War wick Way in order to survey the employees of the firm. This method was useful for completing the research in a simple and fast way states Walliman (2010).

3.8 Data analysis

The researcher adopted descriptive method for understanding the collected information for the present research study. With the aid of qualitative and quantitative data primary information were gathered says, Kumar (2011). The researcher interviewed a manager of Tesco UK. Whereas survey of 20 employees provided with quantitative data. The qualitative data reviewed manually and the quantitative data have been processed using pie charts, tables and bar charts. Interpretation and review of the collected data gave the helped the author to understand the current research issue.

3.9 Ethical issues

Permission from the higher authorities of Tesco UK was taken by the researcher before conducting interview and survey. The participants were given freedom for deciding whether to cooperate with the research or not. No compulsion was given to anyone. The Informations collected were kept confidentially and the objectives of the study were discussed with the participants. The researcher strictly followed the data protection act for the present study.

CHAPTER 4: DATA ANALYSIS AND DISCUSSION

4.1 Introduction

This chapter of the study deals with data analysis and discussions. Through this chapter, the collected primary information are analysed and interpreted by the researcher. The researcher has conducted self- administered survey with employees and individual in-depth interview with managers of Tesco for collecting primary data. Thematic approach and descriptive analysis method were used by the researcher for evaluating the collected interview and survey findings. Identified gaps between secondary and primary data were also discussed through this chapter.

4.2 Qualitative analysis

The researcher has conducted individual in-depth interview with one manager of Tesco for gathering qualitative data for the study. The interview questionnaire and major findings were discussed in this section;

1.    Can you please mention how important is employee motivation in retail sector?

Manager 1:

“Due to high competition in the retail sector, retention of skilled and potential staffs in the organization is necessary for improving organizational performance. Effective employee motivational programs positively influence the job satisfaction and performance of employees. Highly productive employees will improve the service quality and productivity of the organization. So, employee motivation is significant in retail organizations for enhancing organizational performance”.

2.    What all factors are considered by Tesco for enhancing job satisfaction of employees?

Manager 1:

“Our company has given higher priority for satisfying our employees. Tesco offers effective rewards and recognitions to employees on the basis of their abilities and performance, effective working environment, job security and effective training and development programs for enhancing the job satisfaction of the employees. Before implementing new organizational policies, our firm always considers the opinion and suggestions of our employees for avoiding employee disputes and job dissatisfaction”.  

3.    What are the major employee motivational techniques used by Tesco and how effective are these strategies for enhancing employee job satisfaction?

Manager 1:

“The major employee motivational techniques of Tesco are training and developmental programs, rewards and recognitions programs, offering of competitive salary, staff discounts, health benefits like discount on gym membership and free health checkup; pay slip vouchers and holiday discounts. These motivational strategies help us to improve the job satisfaction level of employees to a great extent and it positively influenced their job performance”.

4.    Do you agree with the statement that employee motivation can enhance job satisfaction? How correct is it with Tesco?

Manager 1:

“Employee motivation plays a key role in enhancing job satisfaction of the employees. Effective motivational techniques improves the job satisfaction and thereby loyalty of employees towards the firm. Effective training and development programs of our company help the employees to improve the job skills and it makes them capable of performing all organizational tasks efficiently.  Health benefits like discount on gym membership and free health checkup; and staff discounts on company products enhanced the job satisfaction of Tesco staffs to a great extent. Compared to other retailers, our company provides competitive salary for our employees and it also helps the company to improve the job satisfaction level of its staffs”.

5.    Many reports find that high rate of employee turnover is the main issue faced by Tesco. What are the key reasons for the high employee turnover in your company?

Manager 1:

“Due to high competition in the UK retail sector, our company is forced to make some changes in our contract and polices for attaining competitive advantages from business. Some employees are not ready to adjust with the new changes and this resulted to the employee turnover. Now we are given much attention to retain our potential employees by offering effective training programs, rewards and motivational programs”.

6.    Can you suggest actions to improve employee motivation in Tesco and thereby its employee job satisfaction?

Manager 1:

“In my opinion, the company needs to consider the opinions and suggestions of the staffs before changing the existing policies or implementing new policies. This will be helpful for increasing job satisfaction of the employees. Tesco should offer reasonable incentives for the overtime works of the employees. This will motivates the employees to work more efficiently. By offering more rewards and recognitions programs and by providing higher salary for the potential workers, the company can enhance the job satisfaction of the staffs”.  

4.3 Quantitative Data Analysis

In this portion of dissertation, inferences from the survey findings obtained by researcher are included. Researcher obtained these quantitative information’s by surveying 20 employees at Tesco, UK.

1. Gender

Pie chart 4.1: Gender of the survey respondents

Source: Created by author

The above statistics reveals the percentages of women and men participated in survey organized by researcher at Tesco outlet. It points out that comparatively more male employees were interested to participate in this programme and hence expressed their opinions.

2. Age

Pie chart 4.2: Age class of the survey respondents

Source: Created by author

The above pie chart represents the numerical statistics obtained regarding age categories of the survey respondents. It is transparent from the figures that, most of the respondents belong to 26-34 years. This indicates that incredibly experienced hands at Tesco organization comparably less participated in this survey programme.

3. Working experience at Tesco Plc

Pie chart 4.3: Working experience at Tesco Plc

Source: Created by author

The above figure depicts the working experience of survey participants at Tesco, UK. A major fraction of the respondents (40%) possessed the working experience in the range 1-3 years. This indicates that experienced hands at Tesco Plc comparatively less participated in this venture due to their busy schedules or personal outlooks. However, the survey statistics with increased employee counts possessing 3 years experiences indicates that employees with poor working experiences are less. This supports Elder (2014) reports that, Tesco faces an increased employee turnover which has been observed during literature studies. Further it also supports manager’s prospect in that the organization had faced slightly increased turnover due to the policy changes company had to implement for achieving competitive advantages in the current market scenario.

4. In your opinion which among the following parameters highly influences an employee’s job satisfaction levels?

Pie chart 4.4: Parameters that influence employee's job satisfaction levels

Source: Created by author

The above pie chart clearly represents an employee’s outlook towards contentment at an organization. As per employees opinions most of them feel satisfied at obtaining appropriate rewards and recognitions. An equally important percentage also opines that working ambience, job security, organizations administration and policies, training, development and motivational strategies initiated at organization plays an essential role. This indicates that suitable recognitions and salary increments are necessarily required to motivate employees and this is parallel to the findings of Hameed and Waheed (2011) that fair reward increases job satisfaction which thereby motivates and inspires an organization’s workforce.

5. Are you satisfied with the working atmosphere and employee relations at Tesco?

Pie chart 4.5: Satisfaction among employees in concern to Tesco ambience

Source: Created by author

The above survey inferences reveals that majority of the Tesco employees (50%) are satisfied with the working ambience at organization. Only a minor portion is unsatisfied or highly discontented at Tesco atmospheres. 30% also states that they are highly satisfied with Tesco environments. These inferences are in line to the manager’s opinion that they provide the best working atmosphere to their employees. However, this inference contradicts the Neil (2011) studies that Tesco provides unsociable milieu to its employees that drive them to drop their employments.

6. Which do think is best strategy adopted at Tesco for motivating the employees?

Pie chart 4.6: Strategy adopted at Tesco for motivating employees

Source: Created by author

The above diagram depicts the various motivational strategies adopted by Tesco and its evaluation from employee’s perspectives. Most of them opines that the best strategies implemented by Tesco Plc is the staff discount cards, health benefits such as gym membership, free check up’s and also their pension schemes. These inferences are supporting the studies of Furham, Eracleous and Chamorro-Premusiz (2009) and also manager’s transcripts that Tesco considers employees as their key elements and hence provides them best facilities for encouraging and motivating. However, the survey findings that training programmes and salary policies at Tesco are least favoured by their employees indicates the mismanagement in these regards and hence contradicts the manager’s interview statements that they provide efficient training- development orientations and also provides competitive salaries. Further, Saleem, Mahmood and Mahmod (2010) studies that sufficient and effective training has been provided also contradicts this inference gathered.

7. What are the issues faced at Tesco plc?

Pie chart 4.7: Issues at Tesco plc

Source: Created by author

The above diagram depicts the problems faced by Tesco employees and it comprises elongated working schedules, inappropriate salary schemes and no increments, sudden variations to organization policies without prior consents and increased work pressures. These problems contradict mangers opinion in that Tesco provides best employee motivation strategies and hence is in line to the reports of Neil (2011) that these issues lead to increase employee turnovers.

8. How would recommend Tesco to enhance the prevailing strategies?

Pie chart 4.8: Recommendations to Tesco

Source: Created by author

The recommendations provided by employees to enhance the prevailing Tesco strategies are represented in the above diagram. It is evident that most of them opine to enhance salary policies and effective training programme frequencies at Tesco. Also a reasonable fraction opine that monthly reviews on regards to individual performances and thus enhancement of training to those required, would inspire and revitalize the Tesco workforce. This indicates the necessity in advancing Tesco strategies and hence contradicts the manager’s opinions that Tesco provides best salary schemes according to competitive advancements.

4.4 Identifying gaps

The interview findings revealed that, Tesco considered the opinions and suggestions of its employees before implementing new policies to avoid employee disputes and employee job dissatisfaction. However, the study finding of Neil (2011) revealed that, employees of Tesco were dissatisfied with the newly implemented contract and polices of the company and it increased employee turnover and absenteeism in the company. The contradictory view points of interview and existing literature revealed the gap in the study.

From the interview analysis and study finding of Furham, Eracleous and Chamorro-Premusiz (2009), researcher identified that, Tesco provided competitive salary for the employees for enhancing their job satisfaction. But from the survey analysis, it was found that, only least number of employee considered offering of competitive salary as effective motivating strategy of Tesco. This dissimilarity between the findings shows the gap in the study.

The survey findings revealed that, majority of the employees of Tesco were satisfied with their current job in Tesco. However, in the literature review, studies of Elder (2014) and Neil (2011) reported that employee turnover rate at Tesco was very high due to long working hours and frequent changes in company policies. These contradictory viewpoints revealed the gap in the present study.

It was understood from the interview analysis that, Tesco provided effective working atmosphere for the employees for enhancing employee job satisfaction. However, the survey findings revealed that, over work pressure and long working hours as the main issue faced by the employees of Tesco. So, there exists a gap between interview and survey findings.

4.5 Summary

The information collected through conducting individual in-depth interview with manager and self- administered survey with employees of Tesco was discussed in this chapter. The researcher used pie charts and bar charts for analyzing the quantitative data. From the study, researcher identified that, employee motivation played an important role in enhancing job satisfaction. The researcher was also able to identify the scope for the improvement in employee motivational strategies of Tesco as many employee suggested for its improvement.

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter concludes the primary and secondary data findings on the basis of research objectives. On the basis of the findings, the researcher also provides suggestions for Tesco to improve its motivational strategies. Limitations of the study and recommendations for the future studies are also covers in this chapter.

5.2 Conclusions

This segment concludes the key findings of the study on the basis of research objectives

Objective 1: To analyse the major factors affecting employee job satisfaction in retail sector

From the interview and survey analysis, researcher identified that, effective working environment, training and development programs, rewards and recognitions, job security and consideration of employees’ opinions before the adoption of new policies were the major factors influencing the job satisfaction of the employees. Similar to the research findings, Furham, Eracleous and Chamorro-Premusiz (2009), Saleem, Mahmood and Mahmod (2010) and Ali and Ahmed (2009) also mentioned about these factors in their studies. So, the researcher identified this objective successfully.

Objective 2: To investigate the significance of employee motivation in retail industry

The interview findings revealed that, employee motivation is significant in retail sector for retaining the potential employees in the firm and to enhance the job satisfaction. It was also found that, effective motivational strategies enhanced the employees’ loyalty towards the company and this improved their job performance. The potential staffs improved the quality of customer services and thus it enhanced the organizational performance. In the literature review, studies of Ali and Ahmed (2009), Hameed and Waheed (2011) and Saleem, Mahmood and Mahmod (2010) also mentioned the significance of employee motivation in retail sector for enhancing the job performance of employees. By identifying the similarity between primary and secondary data, the researcher was able to successfully reach at the second objective of the study.

Objective 3: To assess the role of employee motivation on enhancing employee job satisfaction at Tesco

The interview findings revealed that, employee motivation programs of Tesco played a key role in enhancing the job satisfaction of its employees. Tesco has implemented many motivational strategies such as training and development programs, staffs discounts on company products, health benefits like gym discounts and free checkups; offering of competitive salary, holiday discounts and pay slip vouchers for increasing the job satisfaction of its staffs. It was also understood that, these motivational strategies of Tesco were highly effective for improving the performance level of its employees. It was found from the survey analysis that, staffs discounts, pension schemes and health benefits were the effective motivational strategies of Tesco and majority of the employee were satisfied with their current job in Tesco. However, long working hours and work pressure, lack of salary increments and sudden variations in company policies created job dissatisfaction among the Tesco employees. The studies of Saleem, Mahmood and Mahmod (2010), Furham, Eracleous and Chamorro-Premusiz (2009), Elder (2014) and Neil (2011) also identified the effectiveness of motivational programs of Tesco for enhancing job satisfaction of its employees. Thus the researcher identified this objective successfully.  

5.3 Recommendations

The researcher offers following recommendations for improving the employee motivation programs of Tesco for enhancing job satisfaction:

  • Offer competitive salary

It was identified from the research findings that, lack of salary increment was the main issue faced by the employee of Tesco. So, by offering reasonable salary and incentives, Tesco can improve the job satisfaction of its employees.

  • Implementation of effective training and development programs

It was understood from the study that, training and development programs of Tesco were not much effective for enhancing the job performance of the employees. The researcher recommended for the adoption of training sessions by considering the capabilities and skills of the staffs for improving the job performance of the employees.

  • Considerations to employees’ opinions and suggestions

The study findings revealed that, the main reason for the high rate of employee turnover in Tesco was the lack of consideration of employee opinions and suggestions before the implementation of new company policies. Thus, the researcher suggested for the consideration of employees opinions for avoiding employee disputes and minimize employee turnover.

  • Quick solution for the employee grievances

Quick solution for the complaints of employees will be beneficial for the firm to retain the potential staffs in the organization and to enhance the job satisfaction of the employees.

5.4 Research limitations

The researcher was not able to select adequate sample size for the study due to cost and time constraint and it was the main limitation of the study. For carry out the study, the researcher only investigated the case of Tesco, UK and it created restraint for reaching at a general conclusion on the research issue. Lack of reliable secondary studies on the research topic also created barrier for the collection of secondary data for the study. The main problem of the survey questionnaire of the study was the non-usage of likert scaling. The researcher has only visited few stores of Tesco for conducting interview and survey. So the scope of the study was limited.

5.5 Recommendations for future researches

The future researchers need to review more existing studies related to the research topic for gathering adequate secondary data for the study. The future studies should select adequate sample size for avoiding sampling errors in the studies. Future researchers can analyse the case of two or more retail firm for making a comparative study on the research topic. Instead of adopting descriptive analysis method, future researchers can select regression analysis method for analyzing the collected quantitative data. The researcher also suggested that, future researchers can analyse the case of another retail organization for evaluating the research problem. The usage of likert scaling in the questionnaire will be beneficial for the future researchers to collect reliable data for the study.

REFERENCE

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APPENDIX

Interview questions for the managers of Tesco, UK

1.    Can you please mention how important is employee motivation in retail sector?

2.    What all factors are considered by Tesco for enhancing job satisfaction of employees?

3.    What are the major employee motivational techniques used by Tesco and how effective are these strategies for enhancing employee job satisfaction?

4.    Do you agree with the statement that employee motivation can enhance job satisfaction? How correct is it with Tesco?

5.    Many reports find that high rate of employee turnover is the main issue faced by Tesco. What are the key reasons for the high employee turnover in your company?

6.    Can you suggest actions to improve employee motivation in Tesco and thereby its employee job satisfaction?

Survey analysis with the employees of Tesco

Dear employee,

Please answer the following survey to give your opinion on the employee motivation strategies of Tesco. The objective of this survey is to understand the effectiveness of employee motivation of Tesco for enhancing employee job satisfaction. You will only need to spend around 10 minutes of your time to answer this survey. Please note that all the information collected from you will be used for academic purposes and that it will be handled in accordance with Data Protection Act 1998.

Please answer the following questions by placing ü on your choice.

1. Gender

  • Female
  •  Male

2. Age

  • Below 26 years
  • 26-34 years
  • 34-42 years
  • Above 42 years

3. Working experience at Tesco Plc

  • < 1 year
  • In between 1-3 years
  • In between 4-6 years
  • > 6 years

4. In your opinion which among the following parameters highly influences an employee’s job satisfaction levels?

  • Company policies
  • Recognitions and rewards
  • Job security and working atmospheres
  • Personal growth through training and development programmes
  • Others

5. Are you satisfied with the working atmosphere and employee relations at Tesco?

  • Highly satisfactory
  • Satisfactory
  • Unsatisfactory
  • Poor

6. Which do think is best strategy adopted at Tesco for motivating the employees?

  • Staff discounts card
  • Health benefits
  • Pension schemes
  • Training and motivational programmes
  • Competitive salary
  • Others

7. What are the issues faced at Tesco plc?

  • Long working hours and work pressure
  • Lack of salary increments
  • Sudden variations to company policies
  • Others

8. How would recommend Tesco to enhance the prevailing strategies?

  • Increase training programme frequency
  • Personally evaluate individual performances
  • Take monthly individual reviews and impart training for those essential
  • Provide increments according individual capabilities and rising work pressure
  • Others

Thank You

I express my heartfelt thankfulness to all the manager and employees who participated in the interview and survey analysis for helping me to collect important information’s for completing the research study. I also express my gratefulness to everyone for spending your valuable time for achieving success in the research study. I also hereby ensure you that the data collected will be treated with confidentiality without revealing the respondents identity in the research study.

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