2
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 andconsideration of employees’
opinions for enhancing the job satisfaction of the employees.
3
Table of Contents
ABSTRACT ........................................................................................................................................ 2
LIST OF FIGUERS AND PIE CHARTS .................................................................................................. 5
CHAPTER 1: INTRODUCTION ........................................................................................................... 6
1.1 Introduction .......................................................................................................................... 6
1.2 Aim and objectives of the research ...................................................................................... 7
CHAPTER 2: LITERATURE REVIEW ................................................................................................... 8
2.1 Introduction .......................................................................................................................... 8
2.2 Employee motivation ............................................................................................................ 8
2.3 Theories of motivation .......................................................................................................... 8
2.4 Job satisfaction .................................................................................................................... 13
2.5 Factors effecting employee job satisfaction in UK retail sector ......................................... 13
2.6 Significance of employee motivation in UK retail industry ................................................. 15
2.7 Importance of employee motivation on job satisfaction in retail industry ........................ 15
2.8 Case study of Tesco, UK ...................................................................................................... 16
CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY ................................................................. 18
3.1 Introduction ........................................................................................................................ 18
3.2 Research philosophy ........................................................................................................... 18
3.3 Research approach .............................................................................................................. 18
3.4 Research Design .................................................................................................................. 19
3.5 Research strategy ................................................................................................................ 19
3.6 Data collection methods ..................................................................................................... 20
3.7 Sample selection ................................................................................................................. 20
3.8 Data analysis ........................................................................................................................ 21
4
3.9 Ethical issues ....................................................................................................................... 21
CHAPTER 4: DATA ANALYSIS AND DISCUSSION ............................................................................ 22
4.1 Introduction ........................................................................................................................ 22
4.2 Qualitative analysis ............................................................................................................. 22
4.3 Quantitative Data Analysis .................................................................................................. 24
4.4 Identifying gaps ................................................................................................................... 32
4.5 Summary ............................................................................................................................. 33
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS............................................................... 34
5.1 Introduction ........................................................................................................................ 34
5.2 Conclusions ......................................................................................................................... 34
5.3 Recommendations .............................................................................................................. 35
5.4 Research limitations ............................................................................................................ 36
5.5 Recommendations for future researches ........................................................................... 36
REFERENCE .................................................................................................................................... 38
APPENDIX ...................................................................................................................................... 42
5
LIST OF FIGUERS AND PIE CHARTS
List of figures
Figure: 2.1 Maslow’s Theory of Motivation /Satisfaction ………………………………….9
Figure: 2.2 Herzberg’s Two-Factor Theory ………………………………………………..10
Figure 2.3: Vroom’s expectancy theory …………………………………………………….11
List of pie charts
Pie chart 4.1: Gender of the survey respondents ..........................................................25
Pie chart 4.2: Age class of the survey respondents ......................................................26
Pie chart 4.3: Working experience at Tesco Plc ............................................................27
Pie chart 4.4: Parameters that influence employee's job satisfaction levels .................28
Pie chart 4.5: Satisfaction among employees in concern to Tesco ambience ..............29
Pie chart 4.6: Strategy adopted at Tesco for motivating employees .............................30
Pie chart 4.7: Issues at Tesco plc ..................................................................................31
Pie chart 4.8: Recommendations to Tesco ....................................................................32
6
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
7
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 andoverwork
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.
8
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.)
9
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.
10
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
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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.
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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 thatthere 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
13
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
14
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
15
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
16
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
17
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.
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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
19
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.
20
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.
21
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.
22
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
23
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:
24
“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
25
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
40%
60%
Gender
Female
Male
26
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
20%
50%
20%
10%
Age
Below 26 years
26 - 34 years
34 - 42 years
above 42 years
27
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?
30%
40%
20%
10%
Working experience at Tesco Plc
< 1 year
In between 1 - 3 years
In between 4 - 6 years
> 6 years
28
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?
20%
30%20%
20%
10%
Parameters that influence employee's job satisfaction levels
Company policies
Recognitions and rewards
Job security and workingatmospheres
Personal growth through trainingand development programmes
Others
29
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?
30%
50%
10%10%
Satisfaction among employees in concern to Tesco ambience
Highly Satisfactory
Satisfactory
Unsatisfactory
Poor
30
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?
30%
20%20%
10%
10%10%
Strategy adopted at Tesco for motivating employees
Staff discounts card
Health benefits
Pension schemes
Training and motivationalprogrammes
Competitive salary
Others
31
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?
30%
30%
30%
10%
Issues faced at Tesco plc
Long working hours and workpressure
Lack of salary increments
Sudden variations to companypolicies
Others
32
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
30%
10%
20%
30%
10%
Recommendations to Tesco
Increase training programmefrequency
Personally evaluate individualperformances
Take monthly individual reviewsand impart training for thoseessential
Provide increments accordingindividual capabilities and risingwork pressure
Others
33
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.
34
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
35
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
36
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
37
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.
38
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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 ✓ on your choice.
1. Gender
• Female
• Male
2. Age
43
• 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
44
• 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.
Full name:
Email:
Telephone No