Section
1.
Contents
1.0 Introduction
1.1 Introduction of the Employee motivation
1.2 Background of Tesco
2.
2.0 Contents:
2.1 Theories and Concepts in Workplace
2.1.1 Theories of Motivation in Workplace
2.1.2 Maslows Needs Hierarchy Theory
2.1.3 Taylors Motivational Theory
2.1.4 The Mayo Effect
2.1.5 Herzbergs Two-Factor Theory
2.2 Case Studies of Tesco Company
2.2.1 Maslows Needs Hierarchy Theory
2.2.2 Taylors Motivational Theory
2.2.3 The Mayo Effect
2.2.4 5 Herzbergs Two-Factor Theory
2.3 Problem Statement in Tesco Company
2.3.1 Attitude Problems of Employees in Tesco Malaysia
2.3.2 Organizational Problems
3.
Recommendations:
3.1 Suggestions on how the Theories that being used by Tesco can be
used more effectively in future.
3.2 Implementation of other Theories to Tesco Company
3.2.1 Implementation of Four-Drives Theory
3.2.2 Implementation of Learned Needs Theory
4.
Conclusion
5.
References
Page Number
1.0 Introduction
1.1 Introduction of the Employee Motivation
Motivation is the force within a person that affects the direction, intensity and
persistence of voluntary behavior in which a motivated person are willing to exert a
particular level of effort for a certain amount of the time in order to complete the task
given effectively. (McShane and Von Glinow, 2010).
In any organization, human capital is the most valuable asset. Employee is one of
the keys to lead an organization to success because only satisfied employees will lead to
satisfied customers.
Employee motivation is an important part of managing employees. This is
because motivation can be directly linked to job performance. Motivation is getting
people to do what you want them to do because they want to do. So, if the employees are
not motivated then there is no job satisfaction and this leads to reduced productivity.
Besides, a motivated workforce will work harder and achieve greater output in
less time, therefore reducing labour costs. It requires less supervision and demonstrates
pride in its work, making a greater impact on the customer. Motivated employees will
have greater concentration, hence, they are less likely to make mistakes, cause accidents
or be involved in conflict. They are also likely to show greater loyalty to the company
and have less absenteeism.
However, human nature is very complex and to understand the motivating factor
of every employee is a difficult task. Employee motivation differs from one employee to
one another which depending upon views, and personal aims, and goals of an employee.
Thus, to create a more motivated workforce, effective leadership and management is
required to appreciate their employees. Employers or managers should first investigate
the drives and needs of their employees and how these concepts relate to individual goals
and behavior.
2.0 Contents
2.1 Theories and Concepts in Workplace
2.1.1 Theories of Motivation in Workplace
In workplace, motivation is the forces that cannot be less due to its importance in
affecting ones direction, intensity and persistence of voluntary behavior. Workplace
motivation is very needed due to the routine of daily work might be boring and repeating
the same job for a long period. Motivated employees are willing to exert a particular
level of effort, for a certain amount of time in order to achieve certain goals in workplace.
From the point of view in psychology, motivation is defined as the process that initiate,
guides and maintains goal-oriented behaviors. Furthermore, motivation is what causes us
to act, whether it is getting a glass of water to reduce thirst or reading a book to gain
knowledge. It is well defined that employees need to be motivated and initiate them to
achieve certain goals in a positive way.
2.1.2 Maslows Need Hierarchy Theory
Back in 1943, Abraham Maslow has proposed a theory of Maslows hierarchy of
needs in his paper of A Theory of Human Motivation. He described his theories in the
form of hierarchy which is called Maslows Needs Hierarchy Theory. The diagram 1.0
below shows the Maslows Needs Hierarchy Theory.
Basically, the hierarchy proposed that human has 5 main needs. Motivation
theory of needs is arranged in a hierarchy, whereby people are motivated to fulfill a
higher need as a lower one become gratified.
Physiological in workplace
The lowest need has strongest effect since physiological needs are essential for
overall human well being. Those needs are, for example breathing, food water, sex,
sleeping, excretion and homeostasis. When the lowest need is satisfied or being fulfilled,
next higher need becomes the primary motivator. When it applies in workplace, it can be
translated as employees need satisfying salaries, flexible work time, and enough rest time
during working hours. One needs to work to gain outcome in terms of money to sustain
their daily life.
Safety in workplace
The next hierarchy of need that has been proposed is safety. Secure and stable
environment and the absence of pain, threat and illness are also importance motivators.
Employees would like to have a safe and stable workplace to motivate them. However,
there are still many jobs that did not fulfilled this need for example, fire fighters, soldiers,
policemen, bomb squads, miners and other dangerous jobs. Job security gains more
priority nowadays as more jobs with safer workplace are introduced. Therefore, higher
salaries are paid for the risky job and high risk occupation life insurance is required for
these jobs employees. This requirement is needed to fulfill employees desire to work in
a safer environment.
Belongingness in workplace
Human needs love, affection and friendship in their life. The sense of belonging
and acceptance among their social groups are important to human regardless if these
groups are small or large. This level is strongly needed to be fulfilled during childhood.
Deficiencies within this level of Maslows hierarchy may lead to many negative emotions
for example, loneliness, social anxiety and clinical depression in the absence of love and
belonging element.
When apply in the work society, employees need friendship and interaction in
their workplace in order to motivate them. Without the belongingness, they might feel
depressed and facing work-related stress in workplace.
Esteem in work society
Human need to be respected and this may include the need to have self- esteem
and self-respect. Esteem presents the typical human desire to be accepted and valued by
others. Personal achievement, recognition in the society and respect is what human need.
Low self-esteem or an inferiority complex may result from imbalances during this level
in the hierarchy. People with low self-esteem often need respect from others. They often
feel depression, lack of confident and lack of strength in terms of competency.
Esteem comes to the same meaning in terms of workplace. Opportunities have to
be given to employees to ensure they gain self-confidence and high self-esteem in
workplace. This might be a key of success in work society nowadays. With selfconfidence, employees know their potential and strength, this is called self-recognition.
To succeed in achieving goals, self-esteem is a need that could not be lack of.
Self-actualization
A persons need to recognize and realize his or hers full potential by experience.
Everyone born in this world has its own value to be contributed to the society. Maslow
describes this level as the desire to accomplish everything than one can, to become the
most than one can be. However, to understand this level of need, the person must not
only achieve the previous needs, but master them. Same goes to individuals in work
society, realization and recognition of own potential are important.
His Theory of Scientific Management argues that workers do not naturally enjoy
work and so need close supervision and control. Therefore managers should break down
production into a series of small tasks.
training and tools so they can work as efficiently as possible on one set task. Workers are
then paid according to the number of items they produce in a set period of time- piecerate pay. As a result workers are encouraged to work hard and maximized their
productivity.
Taylors methods were widely adopted as businesses saw the benefits of increased
productivity levels and lower unit costs. The most notably advocate was Henry Ford who
used them to design the first ever production line, making Ford cars. This was the start of
the era of mass production and workers were paid piece rate that is, paid for every item
produced.
This approach of paying workers by results was good for the business. The outcome was
greater production but gave little opportunity, encouragement or time for employees to think for
themselves or be creative in what they did. This limited people's development and their use
within the company.
For example, an internal factor may be the desire to learn a new skill and reward
them. Meanwhile, the external factors may include the sales targets and if incentives are
not being achieved, a more negative motivator might be given.
From his researches, Mayo concluded that employees can be motivated by better
communications between managers and workers. Greater manager involvement in
employee workplace is needed too in order to increase level of attention they were
receiving. Team working is equally important in workplace as collectivism can make the
best decision than individual and effectively motivate employees.
In workplace practices, top managers should re-organize production to encourage
greater use of team work and introduce personnel departments to encourage greater
manager involvement in looking after employees interests. His theory are said to be
most closely fits in with a paternalistic style of management.
2.1.5 Herzbergs Two-Factor Theory
Frederick Herzberg (in the late 1950s) proposed his Herzbergs theory in his book
entitled The Motivation to Work. The theory proposed is through interviewing a group
of employees in order to find out factors of satisfaction and dissatisfaction on their job.
Based on his content theory, he explained the factors of an individuals motivation by
identifying their needs and desires, what can satisfy their needs and desires and by how
they pursue to satisfy these desires. Hence, he developed his theory into two dimension
factors to the job satisfaction which are Motivational factors and Hygiene factors. Both
factors can motivate the employees but they work for different reasons. The Hygiene
factors can de-motivate and leading to the dissatisfaction if they were absent or
inadequate such as salary, company policy, work condition, relationship with boss and
peers. However, the Motivational factors can motivate or leading to satisfaction such as
achievement, recognition, responsibility and advancement. According to what Herzberg
said that the dissatisfaction could be avoided by improving in Hygiene factors and these
improvement need a motivation by creating a suitable conditions for the employees to
feel fulfilled in the workplace.
union to give people a sense of belonging. In addition, Tesco too had improved training
on manual handling for their staff and implemented to improve the accident reporting
system in order to help stores target the main causes of accidents. It will ensure health
and safety in the workplace. (The Times, 2010)
As in Maslow Needs Hierarchy Theory, the last and the lowest needs which is
physiological needs. Tesco provides a place of work, regular monthly salary and essential
facilities such as a restaurant and lockers for workers personal belongings.
2.2.2 Taylors Motivational Theory
This theory shares the same similarity with Tescos Employee Reward Program.
The financial reward is one of the motivating factors. However, there are other factors
besides money to motivate their staff. Tesco goes far beyond Taylors theories. Tesco
supports varied lifestyle of individual employees through relevant and targeted benefits.
(The Times, 2010)
One of the factors that motivate employees to improve their output or outcome is
the desire to serve people, improve interpersonal skills and to achieve promotion. The
desire to strive to learn and improve self-development is also the key that can motivate
employees to perform better in their performances.
Moreover, employees are motivated when they feel content in their work when
their employer creates a good working environment where employees feel appreciated
through increased in communication and being asked by their opinions. Through training
too, Tesco can develop a better employee that can produce a better output. This will help
enhance their knowledge, skills and sense of job satisfaction. (The Times, 2010)
2.2.3 The Mayo Effect
This effect is practiced in Tesco. The key to motivate employees is by
communication. One to one discussion with managers, through the company intranet or
newsletters and through more formal structures such as appraisals is some examples of
the key. For example, line managers hold meetings daily to update the staff on whats
happening for the day and to give out value awards.
Employees achievement is
celebrated and awards are given to any given staff who uphold Tescos vision and
provide the best service to customers
2.2.4 Herzbergs Two-Factor Theory
Tesco apply this theory by motivating its employees both by paying attention to
hygiene factors and by enabling satisfiers. For example, it motivates and empowers its
employees by timely communication and delegating responsibility by involving staff in
decision making. Employees are able to have pay raise and a forums are held every year
to encourage communications. This shows that Tesco recognize and rewards their
workers. Furthermore, workers in Tesco can be motivated by making choices on which
food goes into the menus. Thus, this will increase their use of the restaurants. (The Times,
2010)
2.3 Problem Statement in Tesco Company
2.3.1 Attitude Problems of Employees in Tesco Malaysia
The attitude of employees may not be of much a concern by the top management
of Tesco company in Malaysia as they always facing shortage of employees. Tesco has
established 45 stores including Tesco Extra in nationwide of Malaysia since 2001.
Therefore, securing adequate staff is of paramount importance. Due to the thinning pool
in human resource, the ratio of bad: average: good workers are now at 100:15:1. The
ratio indicates that the good workers are very few in number instead of those with
moderate and bad attitude workers. Recruitment of employees cannot be done properly
and Tesco is faced with this attitude problem of employees in workplace. As a result,
good employees are leaving the Tesco to a better company. As in case studies shown that
Tesco Company has apply the Maslow hierarchy theory that all employees have the same
needs, same attitude and therefore same motivation are provided. This is a wrong
assumption to differentiate good and bad workers. In conclusion, Tesco will chase away
good employees and leave with bad attitude employees in the company. This might due
to the top managerial department treating good and bad workers the same way and lead to
job dissatisfaction among good workers.
overexploited and not well paid. It is believed that Tesco in Malaysia hire Bangladeshi
workers from a contract supplier and not hire them directly. The Bangladeshi workers are
not appreciative as they seem not to have a better work security and benefits that those
received from contract boss. This will eventually make them show less dedication and
motivation to work.
The effect of demotivated workers will affect their performances and the
outcomes too. Unsatisfied workers will tend to serve customers with bad services. For
example, rude to customers, unhelpful, unfriendly, superior challenged and many more
might bring a huge impact to the company. Nevertheless, the impact on the customers
with received bad services will results in the companys image tarnished or badly
affected. As Taylor proposed in his research, Tesco has implemented this motivational
theory that only salaries could motivate them to work. However, every single Tescos
employees are totally different either in their behavior and attitudes, salaries do not really
motivated them to perform well in their job due to boredom and less challenging factors.
Different employee has different needs and might not just work for money. This brings
them to involuntarily treat their customers badly and impact the companys image.
Slowly, the financial well being of Tesco Company might be affected if this problem
continues.
3.0 Recommendations
3.1 Suggestions on how Tesco Company can utilize the motivation theories more
effectively.
In the content part, some problem of Tesco companies currently encountered has
been listed out. Although some theories and concepts in organizational behavior are used,
it is said to be not enough. This might due to the theory itself have some weaknesses that
cannot be fully apply as organizational management method.
For example, Maslow Needs Hierarchy Theory proposed that every human needs
and wants something. However, not every employee has the same characteristics and
needs.
The theory used must be flexible enough by treating different people with
different management method, allocate them into different department and understand
their own potential.
One good way to strengthen this theory is focus the third and forth level of the
Maslow Needs Hierarchy Theory. Tesco are recommended to implement the Employee
Stock Ownership Plan (ESOP). It is a contribution plan that provides a companys
workers with an ownership interest in the company. By giving Tescos employees with
stock ownership, they are equally gaining the respect from the company. Shares are
recommended to hold in the ESOP trust until the employee retires and leaves Tesco. This
may effectively enable Tesco Company to make those good employees to stay in the
company. When Tesco Company earned profits, the same goes to the employees.
On the other hand, the theory that proposed by Elton Mayo are really useful to
strengthen the third level of the Maslow Needs Hierarchy Theory. Communication in
workplace is the best way of gaining love and friendship. The top management should
always show interest among their employees, communicate well with them, always work
as a team to enable them feel satisfied on their working environment. As a result, they
are able to maximize their work performance and help Tesco gain more profits. By
implementing this, motivated employees can enhance their esteem and belongingness in
the workplace and make them perform well.
Although the concept that proposed in Taylors motivation theory might be useful
in some managing part of Tesco, not all of them can fit exactly what the company needs.
In workplace, not every employee work purely for money due to the different
personality and background of themselves. Tesco Company is suggested to give out
personality form for potential recruits to fill out before recruiting them. By knowing their
personality and background, the company can assign them to the right department. Of
course, every employee has different personality.
characteristic is the best way to figure out how they can be motivated.
Providing career coaching is indeed important to help employees to reach the next
level professionally.
on classes, days off, pool in the office and employee of the month/quarter/year. Besides,
Tesco can improve Total Rewards Communication. For example, shares of company will
be given to employee for free after working for few years, and get a proportion of profits
that company generated. Employees may use their bonus or saving to buy company shares
with a 20% discount, rather than buying with market price. If they put the shares in trust for
5 years, they will get their bonus, with no tax. Through this Total Rewards Communication,
Tesco can ensure that their employees understand their total reward opportunities,
enhancing their recognition program and creating variable pay options that provide clear
linkage to an individuals increased performance. Tesco can use this drive to solve the
employees attitude problems.
Drive to Bond : this is the drive to form social relationships and develop mutual
caring commitments with others. (McShane and Von Glinow, 2010). Research has
repeatedly shown that we tend to bond with others of similar demographics and outlook.
This drive is mostly met through an Organizations Culture. Organizations culture is one
that cherishes teamwork and focused on employee first and are crucial to this drive being
met. Once employees are successful in establishing individual relationships the connections
can grow to include groups and work teams.The drive to bond leads to interactions of
healthy support among work teams if supported with team-based rewards and professional
goals. This drive motivates people to cooperate and consequently is a fundamental
ingredient in the success of organizations and the development of societies.
Drive to Learn : this is the drive to satisfy our curiosity, to know and understand
ourselves and the environment around us. (McShane and Von Glinow, 2010). It also relates
to understanding one's role in the firm and the significance of that role. This drive is
fulfilled primarily through Job and Organizational Structure. Organizations need to ensure
that the various job roles within the company provide employees with stimulation that
challenges them or allows them to grow. Job roles that satisfy this drive should provide
personal meaning and fulfillment, roles should engender a feeling of contribution to the
organization, organizational structures that provide growth opportunities within the
company, learning offerings training or seminars that provide employees with new skills
and knowledge and sharing or rotational opportunities that can provide new challenges are
the key to fulfilling this particular drive. Tesco can retain their employees by using this
drive; their employees can learn new skills, feel challenged and no longer feel bored in
their job.
Drive to Defend : this is the drive to protect ourselves physically and socially. (McShane
and Von Glinow, 2010). This drive is met mostly through an employees feeling of
alignment and connection to the organization and can be done through a companys
Vision/Reputation and their Performance Management System. Organizations that have a
strong vision or positive reputation in the marketplace can help create that alignment with
employees. The company should be perceived fair, ethical and providing a valued service.
Organizations performance management systems can also help through giving insight into
the companys vision. Performance management system should be one that is open and
transparent, perceived to be fair, provides direction and that is trusted by employees. Tesco
in Malaysia hire Bangladeshi workers from a contract supplier and not hire them directly
and do not pay well for their hard work. With this drive, Tesco can provide the Bangladeshi
workers a better work security and benefits that those received from contract boss. This
will eventually make them more dedication and motivation to work.
Besides using Four-Drive Theory, Learned Needs Theory which was investigated
by a psychologist David McClelland can also be implemented in Tesco. According to the
2.0 Case Study in Tesco, Maslow is one of the motivation thoeries applied by Tesco, yet,
there are limitations of the Maslows work. Maslow is much more concerned about
personals need. It noted that individual characteristics influence the strength of higherorder needs. However, it is essential to note that not all employees are governed by same
set of needs. Different individuals may be driven by different needs at same point of time.
In particular, McClelland recognized that a persons needs can be strengthened through
reinforcement, learning and social condition. (McShane and Von Glinow, 2010)
Learned Need Theory states that human behavior is affected by three needs Need for Achievement, Power and Affiliation. These needs influence the level of
motivation of people and how effective they will be at their job roles. This motivation is
influenced by aspects of a persons life which leads to varying levels of needs being
present from person to person.
Need for Achievement (nAch) is drive to excel, achieve and success. An
individual with a need for achievement will want to accomplish challenging goals
through their own effort. They are more concerned on their personal achievement rather
than with rewards of success. Taylors Motivational is really one of the motivations
which best fit unmotivated employees. Some of the employees prefer to get benefit such
as bonus, promotion or pay vise to satisfy them in work. Instead, there are also some
employees with higher need of achievement, money is not a tool for motivating them
while they desire to receive unambiguous feedback and recognition for their success
publicly. Hence, Taylor theory is not suitable for all the people. Manager of the Tesco
should be more concern of their employees as different motivation is different for every
employee.
Due to the repetitiveness of jobs, it makes Tesco employees feel less challenging and less
motivated for them to continue their job. Tesco should give more chance and freedom in
decision making for everyone especially people with high nAch. High nAch people like
to work in difficult, challenging and competitive work situation because they are very
good in overcoming difficult problems or situations. Achievement-motivation is
important as it helps an organization to grow faster and move towards prosperity with the
support of such achievement seeking employees.
Need for Affiliation describes a desire to seek approval from others, conform to
their wishes and expectations and avoid conflict and confrontation. In a business setting,
this is the necessity for managers to build warm and caring relationships in order to
motivate their fellow employees. Since Tesco hiring huge quantity of Bangalesh worker,
Tesco should provide the Bangalesh workers training to create and maintain social
relationships, enjoy being a part of groups and have a desire to feel loved and accepted.
When the workers feel loved and accepted, they may take a special interest in work that
provides companionship and social approval and prefer cooperative situations rather than
competitive ones. Besides, employees who with a high need of affiliation need
harmonious relationships, with other people and need to feel accepted by others. They
tend to conform to the norms to their work group. High need of affiliation individuals
prefer work that provides significant personal interaction. They perform well in customer
service and client interaction situations
Need for Power (nPow) is a desire to influence and control other individuals
behavior based on personal wish or known as desire for authority. For those individuals
who have this need for power may like to lead, be influential and to make an impact.
There are two different kinds of need for power which are personalized power and
socialized power. Personalized power is a negative need for power as an individual only
enjoy using their power for their own sake and use it to advance personal interest. Thus,
for those individuals belong to personalized power may just seek authority over others
and feel that others do not be effective working towards the businesss goal even may
damaged it. However, socialized power is a positive need for power as an individual
desire power for helping other people. For those individuals belong to socialized power
may have need for power to lead the teams to achieve the goals together. Hence, this kind
of need for power may bring benefit to the business.
Based on the problem stated in content part, there are many good employees
resigned from Tesco since Tesco Company treated the same way to the good and bad
employees in the company. Moreover, the good employees may feel that the company
does not appreciate their talent and potential since the company does not have
empowered significant tasks for them to follow. It is because those good and potential
employees may desire authority when they perform their work in the workplace. In order
to overcome this problem, Tesco Company should implement this need for power from
Learned Needs Theory. Tesco should give more power and opportunities for the good
and potential employees to perform their skills. For example, they should empower some
tasks for those good employees to work on and thus the employees may feel that they are
appreciated by the company. For those who performs well in the job may be given chance
to held their post. As a result, they may feel loyal to the company and may not resign
from the job which let them fulfill the need for power.
4.0 Conclusion
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