Impact of Extrinsic and Intrinsic Factors on Employee Motivation and Retention: A Study on Tesco

This research aims to understand what extrinsic and intrinsic factor and company strategies motivate employees to remain in the organisation. A study on Tesco. The impact of extrinsic and intrinsic factors on staff motivation and retention, and the ability of staff development programs offered by the organisation to retain and motivate the employee are evaluated.

To understand what extrinsic and
intrinsic factor and company strategies
motivate employees to remain in the
organisation. A study on Tesco

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
Research questions.................................................................................................................3
Research aims and objective..................................................................................................3
LITERATURE REVIEW................................................................................................................4
What is the impact of extrinsic and intrinsic factors on staff motivation and retention ?......4
What is the ability of staff development programs offered by the organisation to retain and
motivate the employee?..........................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................5
Research methodology...........................................................................................................5
Research approach..................................................................................................................5
Research philosophy...............................................................................................................5
Sampling.................................................................................................................................6
Data collection methods.........................................................................................................6
Ethical considerations.............................................................................................................6
TIMELINE.......................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Motivation plays a vital role within workplace as it helps in encouraging, inspiring and
providing direction to employees so that they can give productive output in achieving the
business goals and objectives. It generally drives people to success by improving the
productivity, speed and quality of work. Motivation plays a significant role in retaining
employees so that they can stay with company for long run. There are various retention strategies
which are used by an organisation for retaining the employees within workplace. The topic is
chosen as helps in providing the strategies which can be used by company for reducing the
retention rate of employees (Hur, Moon and Jun, 2016). When company faces high retention it
can influence the profitability and growth of business. There are two major factors considered by
an employee such as intrinsic and extrinsic. These are the factors which are helpful in providing
motivation to employees so that their retention can be increased. Thus, this topic helps in
providing the insight view and benefits which can be gained by organisation by implementing
various retention strategies for motivating employees. From the outcome of this research,
students will avail the benefit as the get an opportunity to learn about the strategies which can be
used by firm for motivating their employees within workplace. The organisation chosen for the
research is Tesco which is one of the biggest retailer headquartered in England.
Research questions
 What is the impact of extrinsic and intrinsic factors on staff motivation and retention ?
 What is the ability of staff development programs offered by the organisation to retain
and motivate the employee?
Research aims and objective
Aim:
The aim of this research is to understand what extrinsic and intrinsic factor and company
strategies motivate employees to remain in the organisation. A study on Tesco
Objectives:
 To critically evaluate the impacts of extrinsic factors on staff motivation and retention
 To critically evaluate the impacts of intrinsic factors on staff motivation and retention
 Too critically evaluate the ability of staff development programs offered by the
organisation to retain and motivate the employee

Key aspects:
The key aspect of this research is collecting systematic information related to staff
motivation and retention strategies. The information which is collected is genuine and true that
doesn’t represent false interpretation related to employees and organisation.
LITERATURE REVIEW
What is the impact of extrinsic and intrinsic factors on staff motivation and retention ?
According to Mishra and Mishra, (2017), there are two types of factors which affect
motivation and retention of employees in the organisation. This is examined that by these factors
which assist employees to manage their workings and stay in the organisation for longer
duration of time. Extrinsic factors are related with attitude of recognition, social establishment,
money, rewards and many other aspects. By accumulating these factors employee may get higher
motivation level along with retaining in the organisation for longer period of time. Intrinsic
factors are defined as such factors which are self induced within employees. These factors ate
such as curiosity, problem solving, recognition and belonging of employee that help the
employees to stay motivated and manage their retention at their workplace. When an employees
is working for earning money then this is regarded as extrinsic factor and this will assist them to
stay motivated during their working and retain for the longer period of time in the organisation.
On the other hand, if an employees is getting recognition for their good deeds then this would be
regarded as intrinsic factor and this is going to motivate them for performing their roles within
the organisation and helps in retaining for longer period of time.
What is the ability of staff development programs offered by the organisation to retain and
motivate the employee?
According to Guterresa, Armanu. and Rofiaty, (2020), there are various staff
development programs which are offered by the organisation to their employees for satisfying
different objectives. For developing skills of employees continual self paced skill training
programs are managed by the organisation so that to develop skills of their employees. Using
these developed skills roles and responsibilities can be exerted by the employees in easy and
desired manner. On the other hand, communication is the another staff development programs
which is managed by the organisation in their organisation so that to maintain transparency can

be maintained within the organisation. In the context of retail industry staff development
programs would help in developing skills of employees so that they can cater their customers in
well-defined manner. These programs help in increasing employee collaboration and in this way
employees will be able to share their ideas through which motivation can be enhanced. On the
other hand, when employees are motivated overall working environment can also be improved
and the same manner employee retention can be increased.
RESEARCH METHODOLOGY
Research methodology
Research methodology is a tool which is used by the researcher for collecting,
identifying, processing and analysing the information in effective and efficient manner. Through
this tool, the reader can evaluate the validity and reliability of the study. Research methodology
is of two types they are: qualitative and quantitative research methodology. For this research the
researcher will choose quantitative methodology as it provides accurate facts and figures related
to the staff motivation and retention strategies (Lourie and Rata, 2017). The quantitative
methodology, the information can be gathered in significant manner and also it helps in
achieving the goals and objective in effective and efficient manner.
Research approach
Research approach is a procedure which includes steps of broad assumptions to detailed
methods of data analysis, collection and interpretation. It facilitates the information according the
need of researcher. Research approach are categorized into two forms they are deductive and
inductive. In this research, the chosen research approach is deductive research approach as it
helps in providing statistical information in appropriate way. It is mainly divided into two forms
such as deductive and inductive. Deductive research approach is chosen as it helps in providing
statistical information in effective and efficient manner. The deductive approach also supports
the research aims and objectives.
Research philosophy
Research philosophy is a tool which is used by the researcher for predicting the proper
output. There are mainly two types of research philosophy such as positivism and interpretivism.
Under this research, the chosen philosophy is positivism research philosophy as it helps in
attaining the goals and objective of research in smooth manner (Huang, Fang and Chen, 2017). It

also helps in gathering the numerical information in timely and systematic manner. The
interpretivism philosophy is not selected as it focuses on collecting non-numeric data.
Sampling
Sampling is a tool of research methodology in which few respondents are chosen from
large number of population. It is divided into two forms such as probability and non-probability
sampling. Under this research, the chosen sampling is probability sampling as it helps in
providing equal chance to respondents to share their opinions related to the questions. For this
research, the chosen number of respondents is 20 employee of Tesco that provides answers of the
following question in efficient manner. The participants are chosen on the basis of random
sampling method.
Data collection methods
Data collection method is also type of research methodology which helps in collecting the
data on the basis of two methods such primary data and secondary data. In this research, both the
data collection method is used. Primary data collection method focuses on collecting data
directly from the sources whereas secondary data method gathers information from second hand
sources. For collecting the first hand information, questionnaire is used whereas for collecting
second hand information the sources which are used are books, journals, articles and newspaper.
Ethical considerations
Ethical considerations play an important role while conducting the research, it is important
for the researcher to follow the ethics so that research can be accomplished in significant manner.
The few principles of ethics which is followed by researcher for completing the research are use
of the data must not output in any distress or damage, consent of study subjects can be
reasonably presumed and data must be de-identified before release to the investigator
(Mekonnen, 2020). They must focus on confidentiality of the research and also communicate the
information which is accurate and genuine.

TIMELINE

REFERENCES
Books and Journals
Guterresa, L.F.D.C., Armanu, A. and Rofiaty, R., 2020. The role of work motivation as a
mediator on the influence of education-training and leadership style on employee
performance. Management Science Letters, 10(7), pp.1497-1504.
Huang, R., Fang, Y. and Chen, X., 2017. Chinese lesson study: A deliberate practice, a research
methodology, and an improvement science. International Journal for Lesson and
Learning Studies.
Hur, W. M., Moon, T. and Jun, J. K., 2016. The effect of workplace incivility on service
employee creativity: the mediating role of emotional exhaustion and intrinsic
motivation. Journal of Services Marketing.
Lourie, M. and Rata, E., 2017. Using a realist research methodology in policy
analysis. Educational Philosophy and Theory, 49(1), pp.17-30.
Mekonnen, F. D., 2020. Evaluating the Effectiveness of'Learning by Doing'Teaching Strategy in
a Research Methodology Course, Hargeisa, Somaliland. African Educational Research
Journal, 8(1), pp.13-19.
Mishra, S. and Mishra, S., 2017. Impact of intrinsic motivational factors on employee retention
among Gen Y: A qualitative perspective. Parikalpana: KIIT Journal of
Management, 13(1), pp.31-42.
Smith, V., 2016. Impact of team building on the workplace: giving employees a chance to
collaborate. Journal of Aesthetic Nursing, 5(6), pp.308-309.