An investigation into the employment policies adopted at Tesco Plc and its impact on closing the gender pay gap

This research project investigates the employment policies adopted at Tesco Plc and their impact on closing the gender pay gap. It examines the issue of gender pay gap among female and male workforce, the factors leading to disparity in pays of working employees, and the HR strategies in place at Tesco. The study aims to provide insights to Tesco's HR managers and help them formulate effective policies and strategies.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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ExecutiveSummary
The thesis have been developed in order to identify the factors that cause he gender pay gap
in Tesco, UK and analyse the outcomes of the discriminatory pay practices. The first chapter
of the thesis paper highlights that well-written employment policies focus on helping business
in several ways and moreover, policies demonstrate that organizations is supposed to operate
in an efficient and effective manner. So, considering the stated fact and the background of
equal pay and employment policies, it can be mentioned that issue of gender pay gap at
Tesco Plc. is a serious concern and it requires to be addressed on highest priority with proper
investigation. The second chapter that is the literature review reflects the various aspects
related to gender pay gap in the corporate organisations across UK. The extent of pay based
discrimination is highlighted in this chapter that shows the gravity of the issue in UK as well
as in Tesco. The human capital theory as well as the Undervaluation theory have been used in
this section to analyse the factors that causes the gender based pay differences. The following
chapter is the research methodology. This chapter highlights the research, approach,
philosophy and design along with detailed layout of the data collection as well as data
analysis methods used here. The fourth chapter is the data findings and analysis chapter. This
section highlights the Gender pay gap among female and male workforce in Tesco followed
by the factors leading to disparity in pays of working employees in Tesco. The last chapter
provides a concluding statement against the research conducted.

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Table of Contents
CHAPTER 1: INTRODUCTION..............................................................................................3
1.1 Introduction.................................................................................................................3
1.2 Background to the research.........................................................................................3
1.3 Problem Statement.......................................................................................................4
1.4 Research aims and objectives......................................................................................5
1.5 Research Questions.....................................................................................................5
1.6 Significance of the study..................................................................................................5
1.6 Summary......................................................................................................................5
CHAPTER 2: LITERATURE REVIEW...................................................................................7
2.1 Introduction......................................................................................................................7
2.2 Gender pay gap among female and male workforce........................................................7
2.3 Underlining the factors leading to disparity in pays of working employees....................8
2.4 Differences in human capital...........................................................................................9
2.4.1 The Human Capital Theory.....................................................................................11
2.5 Undervaluation Theory..................................................................................................12
2.6 Strategies employed to tackle gender pay gap...............................................................13
2.7 Salary Transparency and elimination of negotiations....................................................14
CHAPTER 3: RESEARCH METHODOLOGY.....................................................................16
3.1 Introduction....................................................................................................................16
3.2 Research Philosophy......................................................................................................16

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3.3 Research Approach........................................................................................................16
3.4 Research Design.............................................................................................................17
3.5 Data collection process..................................................................................................18
3.6 Data Analysis Process....................................................................................................19
3.7 Research Ethics..............................................................................................................20
CHAPTER 4: DATA FINDINGS AND ANALYSIS.............................................................21
4.1 Theme 1: Gender pay gap among female and male workforce in Tesco.......................21
4.2 Theme 2: Factors leading to disparity in pays of working employees in Tesco............23
4.3 Theme 3: The institutionalised undervaluation..............................................................26
Discussion........................................................................................................................28
CHAPTER 4: CONCLUSION AND RECOMMENDATIONS.............................................30
Reference List..........................................................................................................................32

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Title- An investigation into the employment policies adopted at Tesco Plc and its impact
on closing the gender pay gap Business Dissertation
Organization- Tesco
CHAPTER 1: INTRODUCTION
1.1 Introduction
This research project performs an investigation of employment policies adapted at Tesco Plc
and its effect in closing the gender pay gap. It has been identified that employment policies
help employers to respond confidently if employees act inappropriately. However, it is
certain that employers, very often, do not have effective, clear or complaint policies
procedures. Employee policies and procedures are typically developed by organization’s
human resource department as well as distributed to all employees. So, inefficiencies and
flaws in the policies result in negativity and unethical occurrences, since the employees arwe
demotivated to work under the flawed and biased regulatory frameworks. The purpose of this
study is to investigate the employment policies of Tesco and the pay gap issuer recently
occurred at Tesco. Gender wage gap is nuanced and complex issue and thereby, this study
appropriately investigates the issues and analyse its impact. This chapter is an introductory
section which starts with providing a background to employment policies and issues of
gender pay gap in organizations. Based on the background suitable research questions and
objectives have been developed in the following.
1.2 Background to the research
Addabbo et al. (2015) mentioned that failure to pay women equally limit their abilities to
attain the economic stability; this means if women are paid equally as men, for example, the
poverty rate among women could decrease from 8.0% to 3.8%. Faccio, Marchica and Mura
(2016) performed a study and mentioned the fact that 121 occupations from 2017, financial

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adviser is the profession with the largest pay gaps are in finance. So, such sector continues to
be dominated by men which is a part of the reasons that their pay is higher than female
employees. It has also been identified that majority of time in United State are usually offered
higher salaries compared to female employees in the same organization. These evidences
clarifies the fact that there is a series of contradictions in the employment policies as limiting
women’s pay fuels inequality in the system. According to Campos et al. (2017), policies are
significant or necessary in a workplace because it helps as well as clarifies the standards
expected of both employers and employees and help organization as a whole to manage
because policies define what is acceptable and unacceptable in the workplace.
It is worth telling that well-written employment policies focus on helping business in
several ways and moreover, policies demonstrate that organizations is supposed to operate in
an efficient and effective manner. So, considering the stated fact and the background of equal
pay and employment policies, it can be mentioned that issue of gender pay gap at Tesco Plc
is a serious concern and it requires to be addressed on highest priority with proper
investigation. Existing employment policies of Tesco Plc indicate the fact that the
supermarket giant is committed to upholding human rights and support in full the UN
“Universal Declaration of Human Rights and International Labour Organization Core
Conventions” as on labour standards, working hours as well as safety for employees.
Nonetheless, there is clear contradiction between the policies made by Tesco and the incident
of unequal pay to women in the recent time. Thus, this study is determined to investigate the
stated the issue and find a suitable implications (Levanon and Grusky 2016).
1.3 Problem Statement
In the recent time, Tesco is observed to be having some overwhelming issues related to
disparity in employees’ pay and female employees in the organizations are said to be victims

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of unequal pay of wages. Despite the claim of having a stiff and fair employment policies, the
supermarket giant Tesco Plc. is found to be facing the trouble of disparity in employees’ pay.
1.4 Research aims and objectives
The aim of the study is to investigate the pay gap issue recently occurred at Tesco Plc United
Kingdom. Following are the key objectives to achieve the stated research aim
 To examine the issue of gender pay gap among female and male workforce of Tesco
PLC
 To investigate the underlying the factors of disparity in pays of working employees
 To assess the factors leading towards unequal wages for the female workforce in
Tesco outlets
 To investigate the HR strategies in place at Tesco’s and examine their expectation
1.5 Research Questions
 What is the issue of gender pay gap among female and male workforce of Tesco
PLC?
 What are the underlying factors of disparity in pays of working employees?
 What is the impact of factors leading towards unequal pay on female workforce in
Tesco PLC?
1.6 Significance of the study
The study helps to unfold the facts leading to unequal pay to female workforce in the
organizations. Moreover, the outcome of the study provides comprehensive insights to
Tesco’s HR managers about the business issue like disparity in wages. In addition, the
findings also helps the managers and supervisors of Tesco to rearrange or formulate the
policies or implement strategies to resolve the issues.

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1.6 Summary
This chapter builds the backbone of the entire dissertation as it introduces the topic in
detail along with the purpose of performing the study in the chosen context. Background to
study clarifies the fact that inequality in pay in female workforce is certainly a significant
issue in organizations. Thus, the study aims to investigate the employment policies of the
organization and then analyses the issues of disparity. On the basis of the objectives
developed in the chapter, review of literature has been performed in the following chapter.

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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Developing a comprehensive employee handbook is a must for any organization. Outlining
every organizational policy could provide team members with responses to common
questions. It has been identified that if it is considered from company’s perspectives, an
employee regulatory framework consisting of policies could prevent issue from occurring and
ensure everyone is treated in a consistent manner as well as provides a legal protection to
organization. This chapter of the dissertation provides a review of both employment policies
in the organizations and factors leading to disparity and its impact on female workforce of the
organizations. Review has been conducted by collecting data from secondary sources such as
books, journals and wide reading sources.
2.2 Gender pay gap among female and male workforce
O’Reilly et al. (2015) performed a study on gender gap but before getting into the
issue, authors have defined that gender gap is the gap between what men and women are paid
and most generally, it refers to the medium annual pay of all women who are employed as
full time compared to the same cohort of men. Authors of this study have referred other
estimates of gender pay is based on weekly or hourly earnings which could be specific to a
particular a group of women. Fortin, Bell and Böhm (2017) carried out a study and
mentioned the fact that over the decade, women have been making serious inroads into high
paying professions conventionally dominated by men. It is paradoxical that with so many
women stepping on lucrative fields, one might think that gender wage gap could be shrinking.
However, Atkinson, Casarico and Voitchovsky (2018) mentioned that this is not the
case; not only it is stagnant but in fact female candidates in some of the highest paying
professions tend to lose out the most relative male candidates. Brynin (2017) performed a

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study and provided the data fact that in the recent time American Association of University
Women discovered that women physicians as well as surgeons compensated 71% of every
dollar paid to their male counterparts –this is a 29% gap and 9 cents behind 80 cents on dollar
female colleagues are paid overall. This difference could be more pronounced especially for
financial managers, where there is gap of 35% and particularly in the legal field, the average
salary for men could be around $140,270. This is a hike of 24% than the earning of the
female colleagues ($106,837). Brynin and Perales (2015) mentioned that there is a familiar
explanation behind why every high-earning professionals tend to face a big gap. This
happens, according to the author, because women tend to gravitate toward lower-paying jobs
and specialities within their fields. Authors have mentioned the fact that female doctors, for
example, are more appropriate to work in paediatrics compared to more lucrative speciality of
orthopaedic surgery. Wilson (2016) provide the evidence that even the most accomplished
professional women might not negotiate their salary as aggressively as male employees do.
So, this can have a snowball effect on earning over the long period and the reason for this is
that employers develop the pay structure based on their previous compensation. Nonetheless,
if it is considered from real world perspective, it can be mentioned that sexism,
discrimination, plain and simple and this plays a great role in developing the stubborn gender
wage gap and particularly in male dominated careers.
2.3 Underlining the factors leading to disparity in pays of working employees
According to Cardoso, Guimarães and Portugal (2016), three fourth of the big organsiations
are paying more wages to the male employees of the organisation compared to female
employees, as evident in the gender pay gap reprtde by the government of UK. The average
median difference of pay between men and women in the bg corporate houses is 9.7%. as
analysed by, Pritchard and Morgan (2017), this deos not necessarily imply that the pay
difference for men and women working under the same job role is 9.7%. Rather, analysing

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the employability trends for discovering the factors that lads to this gender biased payment
disparity, it can be identified that male employees in the UK based organisations are more
likely to make it to the higher paid job roles, more easily than women. Compared to 29%
men, there are only 21% of the female workers who get the access to the top quartile. Among
the least paid workers, the disparity is similar but reversed. There are 31% of the female
employees in the quartile of the least paid workers.
(Source: Angelov, Johansson and Lindahl 2016)
It is this loping inequality of the payment levels which is the majr causative agent behind the
gender based pay gap identified in the several UK based companies that have identified their
pay gaps in their annual reports.
Another important factor that drives the payment inequality levels in the UK based
organisations is the proportion of female employees in their workforce. On an entirity, as the
number of fmale employees increase in a n organistaion, so des the percentage of men who
agravate the chances of male employees occupyimg the top quartile, as per the above

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derbived equation. As highlighted by Angelov, Johansson and Lindahl (2016), even in
companies where there is a female majority workforce, the top quartile is peresevred for the
male workers, hinting at a glass ceiling preservation of the men’s club at the topmost
position.
(Source: Angelov, Johansson and Lindahl 2016)
2.4 Differences in human capital
Differences in earning between male colleagues and female colleagues hold the differences
across several possible dimensions with the inclusion of experience and occupation. To
justify this fact, Maddrell et al. (2016) mentioned that if it is considered that more educated

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people tend to have higher earnings, it is quite usual to expect that the narrowing of the pay
gap between across the world can be partially explained on the basis of the fact that women
have been moving with men in terms of educational attainment.
(Source: Olivetti and Petrongolo 2016)
As the differences in education partially contribute to explain differences in pays, it is quite
natural to differentiate adjusted and unadjusted pay differences. Huffman, King and Reichelt
(2017) mentioned that when the gender pay gap is determined by comparing all male and
female employees, irrespective of differences in worker characteristics, the outcome is the
raw or unjustified pay gap. On the contrary, when the gap is known after considering the
underlying differences in education, experiences as well as other factors that matter most for
the pay gap, outcome is the adjusted pay gap. According to Boll et al. (2016), the idea of
adjusted pay gap is make comparison within the groups of workers with roughly similar jobs,
education and tenure and this could allow to tease out the degree to which multiple factors
could contribute to identify inequalities.

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2.4.1 The Human Capital Theory
One major reason behind the emergence of the gender pay gap, is the primitive
differences between ‘human capital’ output of the women compared to the male employees.
As per the findings of Conde-Ruiz and Marra de Artinano (2016), the factors responsible for
the reduced human capital are lower knowledge, skills as well as job experience. Sincem
women in the past did not have sufficient exposure to profesional education, they were
neither considered for the higher and more critical job roles, nor was the number of femnale
employees greater in any organisatin. As informed by (), since the later half of the 20th
century, this trend started to change when the importance of the women in the executive
positions started to increase. The same researchers opine that the same tjeory applies in the
retail powerehuses also. There is availability of large prportion of store front female
employees, however, the postion of the store managers are mostly occupied by the male
employees.. As an obvious outcome, the wage level of the female workers have been low. As
stated by (), the higher managemanet inherently expecs a lower productivity fron their end.
The circumstance with the male employees of UK on the other hand, is different. They enjoy
the comparative advantage in the context of investing time as well as resources in education
and career development, reflecting acceptance over a broader social context.
In recent times, the male advantage, highlighted in the above section, have weakened
(Blossfeld et al. 2015). As highlighted by Haasler and Gottschall (2015), one major reason
behind this is the standardisation of the women’s education that can in turn be cited as a
primary agent behind the decline of the gender pay gap. As researched by Carter, Franco and
Gine (2017), in Britain, the gender based differences across human capital explains a
shrinking proportion of pay gap. However, Figueroa-Domecq et al. (2015), implies that
standardisation of education is having its toll on bridging the pay gap among the employees
of the higher positions only. For evidence, the executive superviosrs are getting promoted to

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the positions of Business Development Managers. However, Avdeyeva (2015), states that
merit based promotions are raraely provided to the lower positioned employees, as it is done
in the case of the male employees.
2.5 Undervaluation Theory
The persisting gender pay differences suggest that there is an existence of stigma
related to occupational feminism. The work that is being done by women is undervalued,
socially as well as economically. The implications of this theory can be mostly observed in
the workplaces of UK. The theory further posits that the UK society specifically undervalues
certain work categories since they are done by women. Pritchard and Morgan (2017), states
that the pay practices are also socially constructed and hence leads to the undervaluation of
the women’s labour in various ways. In the retail outlets of UK, the typical male behaviours,
often decide the pay rate. These factors include performing for long hours, working for a
constantly long time span as well as their aggressive style of negotiation. Some of the women
cannot cope up with the target based job roles and thus cannot deliver the similar workload
compared to male employees and hence lose out in the long run. In fact, Magnusson and
Nermo (2017) observes that women are still perceived to be secondary earners, thereby
deriving more intrinsic rewards from their work compared to men, thereby justifying their
low earning rate. However, some researchers have proposed against this theory also.
Researchers like Kollmayer, Schober and Spiel (2018), opine that the ideas proposed by this
throry are gradually become redundant with the educational advancement of the society.
Devaluation has not taken a universal pattern in UK. In alignment, researchers like Cebrián
and Moreno (2015), inform that there are various job roles where women workers are
dominating, nowadays. Such job roles include clerical work, store operations and so on. In
recent times, women have also occupied the position of CSO or CFO in many listed
organisations. Such job roles are stereotypically not feminine. However, counter arguments

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have been presented by Cortes and Pan (2016), who opine that gender integrated occupations,
in comparison to specifically female oriented operations are better paid. Hence, it can be
implicated that women have gained in terms of wage rate through working in various skilled
occupations and there is emergence of an underlying trend in favour of women. The
emergence is accounting to a transition from a shift to skills based and non-manual economy.
An undermining argument against this theory is presented by Lagaert and Roose (2018), who
argue that work done by less skilled and/or educated women are always undervalued.
2.6 Strategies employed to tackle gender pay gap
Employee surveys conducted by Levanon and Grusky (2016), suggest that in recent
times, the most feasible reason for existence of gender pay gap in the country of UK is the
underrepresentation of the female employees in the senior job roles. In the current situation, it
is recommendable that implementation of properly designed policies, systems as well as
maintenance of suitable environment can be much effective in reducing biasnes in the
workplace environment. So far as the gendered pay gap in the retail sectors is concerned,
Adnan and Miaari (2018), opines that there is basic flaw in the recruitment procedures. They
suppose that the gendered language in the job advertisements, presence of demographic
information in the job applications and other such customs diminish the power and position
of the women employees. In the retail workplaces of UK, the women employees have proved
their efficiency in dealing with regular cusromers and thereby ensure their brand loyalty.
However, in situations like peak sales hours, male employees get the maximum exposure to
deal with the clients. One of the most discussed gender pay gap mitigation structure as per
Kahn (2016), is governmental interference in implementation of the Equal pay Act. Women
employees in the corporate sector (especially in the retail outlets) are burdened with the
pressure of bringing lawsuits in order to prove the discrimination that has been conducted
against them (Baker and Cornelson 2018). In this context, Nica and Molnar (2016), states that

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the role of government in solving this issue is crucial. The UK government can ask the
organisations to release data regarding the pay ratio of the male and the female employees of
the public included in their annual reports.
The strategy of subsidised childcare have been patronised by many authorities like
Steinþórsdóttir et al. (2018). The companies can allow more male employees to take more
paternal leaves in order to ensure the workplace flexibility. Social analysts like Banerjee and
Lee (2015), ensure that this will give the women employees the chance to revive their job. In
order to foster subsidised childcare state aided childcare can also be started. This has been
introduced as a new policy in UK. The families whose members (either males or females) are
working in the retail sector it can be barely worth working after bearing the nursery as well as
travel costs. This is where the role of state childcare comes in. Immediately as the paid
parental leave is over, women might revamp their jobs, if state childcare comes to their aid.
In UK, Carli and Eagly (2016), informs that at least 60900 stay at home mothers are there
who are willing to revive their jobs if they are able to keep up with the child care cost. This is
a great step that would help in ensuring that the gender based pay differences are mitigated.
2.7 Salary Transparency and elimination of negotiations
Researchers like Waddington (2015), assume that transparency at workplace and big
data accumulation are the key steps in mitigating the gender based pay gap. In case if the
employees are aware of their data, they would be in a better position to tackle the current
situation in a way that can help in decreasing the pay gap. Furthermore, in this context,
Woodhams, Lupton and Cowling (2015) opines that being aware of the salary ranges of
various job roles helps not only the women, but all employees in general to get the
information required in order to be paid fairly as well as equally.

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Elimination of negotiations similarly play a crucial role in mitigating the gender based
pay gap. The studies conducted by Friedman, Laurison and Macmillan (2017), in the UK
workplaces show that in the retail sectors of UK, negotiations from women regarding higher
salaries generally encounter negative reactions of the senior leaders in the organisations, quite
contrasted to the situations when the male employees present arguments in favour of
enhancing their salaries. Hence, Bierema (2016) advocates the formation of a no negotiation
policy for enhancement of the wages of employees, especially at the retail sectors. This
strategy can have a significant impact up on the aspect of decreasing the wage differences
between the male and the female employees. However, in sharp contrast, Figueroa-Domecq
et al. (2015), opines that this does not imply that implementation of a no negotiation policy
does not necessarily imply that women will not negotiate for the more challenging as well as
satisfying job roles so that they can boost their success proximity. Pay transparency will not
certainly bring financial motivation for the female employees, rather it might help to
empower women to understand what is at stake, thereby ensuring an equal playing field.

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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
This chapter of the dissertation provides the description of the research techniques which are
applied to the study. Research Methodology is a particular procedure used to identify, choose,
and analyse information regarding a subject. Moreover, it is certain that appropriate selection
and application of research techniques determine the research outcome. In the present study,
major emphasis is on qualitative data analysis. This chapter discusses how each method has
been selected and applied with suitable justification.
3.2 Research Philosophy
The research philosophies generally used in thesis papers are mostly among
positivism, Interpretivism and pragmatism. However, pragmatism can be counted as an
amalgamation of positivism as well as Interpretivism. Positivism prefers the scientific
approach to study thereby ensuring the validity, accuracy as well as the relevancy of the
accumulated data. However, there is difference between Interpretivism and the other
approaches. The other approaches helps to refer to the different opinions of the researchers as
well as scholars that have been extracted from empirical findings. In the same way,
Interpretivismhelps in extracting the previous references as well as the already done
researches. This helped the researcher to save time by preventing the repetitions of the
confirmed conclusions and devote more time on analysing and mitigating the research gaps
which have not been explored yet.
The selection of Interpretivism in this paper would allow the researcher to extract
references to the from the previously conducted research work of the different researchers as
well as scholars based on the theories like Human Capital theory, Undervaluation Theory and
so on in context to analysing the gender pay gap in the UK based organisations.

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3.3 Research Approach
In most of the effective for research papers, Inductive and deductive research
approaches are generally followed. The inductive approach advocates the development of
new theories as well as ideologies by the researcher in support of the topic of the research
study. In contrast, deductive approach allows the researcher to accumulate information and
did use his or her observations as well as research findings based on the empirical research
already conducted by previous researchers.
In the course of this research study the directive research method have been selected for
analysis and deduction of data from already research as well as established information
presented by eminent research Scholars as well as researchers. The research Works from
where data have been accumulated are already referred to in various research works and
hence approved by various other researchers also. Therefore, it can be communicated that the
data extracted from other research works that have been used for this research study
absolutely correct, accurate and relevant to the research topic. Pre-existing research data on
the cause and impact of gender based pay among the companies based in UK have been
statistically as well as graphically established and represented by various scholars in their
research work. The statistical data from those research works have been integrated in this
research study also.
3.4 Research Design
The popular research designs used in common forms of thesis development are descriptive,
explanatory as well as exploratory research designs. Selection of appropriate Research
Design is a significant part of the research Framework based upon which the research study
has been developed

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Explanatory Research Design aims at analysing the different aspects based on which are
research work has been contacted. In contrast, exploratory design helps the researcher to step
on the path that is less explored by previous Scholars and researchers and hence address the
research gaps identified in the empirical research works. In the end, descriptive Research
Design have been explained by researchers likeFaccio, Marchica and Mura(2016), as a
perfect blend of exploratory as well as explanatory research designs that helps a researcher to
ensure that he gets sufficient scope to implement his own perception of research by extracting
and analysing as well as developing a proper data frame work based on his research topic
where he can lay down his personal justification as well as approaches intended to make this
research study relevant and accurate.
This research study uses descriptive Research Design since the researcher finds this Research
Design appropriate to the topic of research
Find this Research Design appropriate to the topic of research. This Research Design will
help the researchers to explicitly explore the empirical research materials presented by
eminent Scholars as well as researchers pertaining to the impact of gender pay gap in various
UK based companies. This will in turn provide a scope to identify the research gap in the
empirical literature also so that the researcher can conduct his own research study in order to
fulfil the gap and thereby make his own research work more concrete and relevant.
3.5 Data collection process
In any form of research study, primary as well as the secondary methods of data collection
are the mostly used methodologies. Primary research allows the researcher the opportunity to
collect data from a major population. However in many cases it has been found that the vast
target audience based upon which the research study has been conducted has been irrelevant
to the research topic. On the conference, secondary data collection process allowed in depth

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research of the information collected from the previously existing resources like journal
articles, government websites, books, online newspapers come official websites as these are
sources that offer accurate as well as genuine data regarding the research topic in particular.
The empirical research that has already been conducted by the researchers in the scope of
these research materials can be really used by the researcher to substantiate the perception he
is attempting to present in his research study.
In this research work, the researcher has pertains to the secondary process of Data Collection.
Journal articles, official Website, official newspaper Publications books as well as other
similar sources have turned out to be good source of secondary information that would help
the researcher to discuss the various theories that have been highlighted in the literature
review section. The relevancy of the theories in the context of the gender pay gap issue in
Tesco can be highlighted through secondary research in an appropriate way. Additionally, the
secondary research process would also help the research to evaluate the causes that led to the
emergence of gender pay gap in the company.
3.6 Data Analysis Process
Qualitative as well as quantitative process of data analysis are mostly carried out in the
research studies. Qualitative research analysis helps in evaluating the research topic by
measuring the impact and philosophical perceptions behind it. It helps in critical analysis of
the research topic based on the data that has been activated by the researcher with the help of
the secondary data collection methods. On the contrary, quantitative process of data analysis
allows the researcher to analyse the topic of research based on statistical presentations along
which the method of logical reasoning.
In the course of this research study, qualitative data analysis process has been utilised by the
researcher as it allows him a proper scope to critically analyse the topic along with

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understanding and connecting the theoretical frameworks that helps to substantiate the cause
and effect of gender base pay in the Tesco Company. Qualitative analysis will allow the
researcher to make a comparative study between the theoretical framework and the real life
context of gender based pay which is a brave issue in most of the UK based organisations
including Tesco. This critical data analysis process also allows research to conduct critical
analysis by means of development of research themes out of the most relevant keywords that
has been used by the researcher in the literature review section. Qualitative data analysis
process also helps a researcher to align the research study with the research in and objectives
that have been proposed in the introductory chapter of this research work.
3.7 Research Ethics
The research complies with all important ethical norms that are needed to be followed Indore
course of conducting a research study for retaining accuracy, authenticity as well as effective
outcome of the research work. The researcher places substantial importance to the need of
maintaining the confidentiality of the data accumulated in the course of conducting research
study. The collected information has mean however preserved in order to protect the
authenticity of the research study conducted by the researcher for this thesis. The researcher
also refrains from performing any sort of manipulation in the way of collecting the data as
that would diminish and ruin the authenticity as well as relevance of this research study.
Lastly, it can be mentioned that the researcher acknowledge all sources of data flow in text
citations in the course of this research work which has also served the purpose of reference
for this paper. This also health the researcher to avoid Plagiarism is work which can diminish
the value of research ethics.

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CHAPTER 4: DATA FINDINGS AND ANALYSIS
4.1 Theme 1: Gender pay gap among female and male workforce in Tesco
The discriminatory pay policy of Tesco for their male and female workers have
gradually started to make headlines in the recent times. There is huge discrimination between
the payment procedures of the thousands of male warehouse workers compared to the floor
shop female workers of the company. The shop assistants of Tesco earn about £3 per hour
less than the male warehouse employees for comparable work done by both categories of
workers. On one hand, the store staff earns about £8 for each hour and other hand, the
warehouse staff earns about £8.50 to £11, for comparable work. As a protest against this
discriminatory policy, various forum like Leigh Day have taken pledge to the judicial forum.
In contrast, Avdeyeva (2015), reflects that, the scenario of pay discrimination between the
male and female employees are coming out in the open because the female employees are
now fighting back. Although, the number of women employees who are coming out in the
front to protest is about 1000 only on an average, which is negligible compared to the entire
women workforce employed by the organisation, still it is perplexing to see the women
becoming aware of their employment positions and desiring for better workplace and
payment policies. As discussed by production analysts like Reuben, Sapienza, and Zingales
(2015), the work done by female store operators are quite hectic, involving interactions with
customers, dealing with money collection and profit accounting, doing majority of the heavy
store lifting works and so on. Comparably, the work done by the warehouse employees
(male) are no more significant that the job roles that the front store employees need to
undertake. As reported by few store employees of Tesco, UK in an empirical survey, the
gender pay discrimination is an inherently biased policy that is being repetitively
implemented by the employers over the years and keeps the female employees in the store

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front operating positions as well as in various back office positions as well, significantly
underpaid in the workplace domain of Tesco.
Researchers like Abraham (2017), have studied the status of the gender pay gap in Tesco in
the light of the UK law that enshrines a predominant policy dating from 1984 that equal pay
is to be granted for the similar job roles within the business domain of a same company. In
consideration, the same researchers have also highlighted that the organisation got more than
34 years since that time, to align their workplace policies with the regulation. However, the
discriminated pay decisions undertaken by the company have went on at a same scale. For
these 34 years, the company, rather than marginalising their discriminatory pay policy, have
attempted to hide the statistics that can reveal that differences in their pay scale for the men
and the women. In alignment to this finding, researchers like Pritchard and Morgan (2017),
have highlighted that the discriminatory pay policy is an inherent aspect of the organisational
culture that have been carried forward by Tesco for decades.
In fact, store survey by third party agencies reveal the women employees take up
greater work load compared to the warehouse or the back office employees (male). They are
not only involved in the front store operations like dealing with the customers or taking
account of the daily sales, rather they are also responsible for the generation of the store wise
daily and monthly profit generation reports as well as stock loading and unloading from the
in store carriages and the lorries as well. They are the ones who take then stock up to the
shelves and stock pile the products. Hence, they are responsible for the sales posting of the
products also. In the survey reports of the famous firm survey organisations like Nielsen,
these findings have been revealed.
Various legal challenges have been raised against the employee treatment policies of
Tesco. As Cebrián and Moreno (2015), describes, if the equal pay claim against Tesco in

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Britain is failed, Tesco might have to give up to £4 billion cash compensation. The company
might need to pay £20k as back pay to each female employees for up to 2 lakh floor
employees. However, a contrasting view have been presented by Cortes and Pan (2016), also.
He believes that the legal procedure would go through the employment tribunal and might
also take up to many years to come up with any distinct conclusion. In this context, the
spokesperson of Tesco have claimed that they have not received any sort of claim, internally
or externally from the employees. As evident in the mission and vision of the company, the
organisation thinks that Tesco has an accomplished and most suitable atmosphere for the
people of UK to advance their career, irrespective of their gender, education or background.
The organisation also shares the objective of ensuring that all their employees are receiving
fair payment equally from any and every job role that they undertake.
4.2 Theme 2: Factors leading to disparity in pays of working employees in Tesco
The UK retail report of Tesco supermarkets reveal a 12% mean gender based pay gap
on an hourly basis. This report have been published in the year 2017. Based on the gender
pay gap reporting regulation of the UK Government, Tesco has released their gender pay gap
report for the 225000 employees who are working all over the Tesco stores of UK. The report
published by the organisation shows that there is huge difference between the main bonus pay
as well as the median bonus pay for the men and the women employees of the organisation,
the proportion of male employees who were awarded with bonus pay is much higher than that
received by the female employees. Most female employees are existing in the lower, lower
middle as well as the upper middle pay bands of the organisation. On the other hand a
significant proportion of male employees were found to occupy the upper quartile pay bands.
Strategic analysis of the reports published by Tesco regarding pay gap in the company
byLagaert and Roose(2018), shows that the gender pay gap on an hourly basis as of the

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financial year 2018-19 is about 8.8%. The mean gender difference for the year 2017-18 has
been 42.6% and median pay difference for the bonus payment has been over 27%. In the last
five financial years, Tesco has seen about 67.6 percent of their female employees to be
existing in the lowest pay quartile. Compared to that, the organisation so only 40. 7% of their
female employees going to occupy the highest pay quartile in the same time period.
The justification provided by the organisation against this gender pay gap firstly
highlights the fact that male employees are more comfortable to work in fluctuating shifts.
These fluctuating work hours are accountable for the pay premium that are earned by the
organisation. Example of such that shifts are night shifts Sundays as well as the bank
holidays. In case if the premium payments are excluded from the gender pay gap figures, the
median pay gap difference would come down to only 2.5 % (Levanon and Grusky 2016).
Hence, working in flexible and fluctuating shifts can be considered to be a significant reason
for the existence of gender pay gap in the retail sector of the company. Another factor
because of which the male members of the organisation are enjoying more workplace
benefits is that in the senior job roles greater proportion of male employees are engaged. As
per the social analysts like Adnan and Miaari(2018), the employees of same gender are able
to recognise and connect to the development needs of the employee group of that particular
Gender Group easily because of which the bonus opportunities of the male employees are
always higher. The husband of the hourly pay gap of TESCO is a direct impact of this
common sales bonus paid to the employees in proportion to their working hours. Important
fact observed by Adnan and Miaari(2018), shows that the trend of recruiting woman as part
time employees has increased because of which the bonus pay gap of the organisation is
being affected. This is because the employees of the organisation get their bonus paid in
proportion to their working hours.

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After payment of full bonuses the part time employee performance is anodized on an
equivalent basis taking into account the crediting for part time staff. The accounting of the
pro rating for the part time staff will also be helpful in reducing the gender based pay gap
down to about 7%. However, analysis by Kahn(2016), shows that the organisation has taken
several steps to enhance workplace diversity Android reduce gender pay gap. The gender
diversity target that has been taken up by the organisation involved and objective of having at
least one third women members in its board by the year 2022. The organisational leaders
suppose that the workplace demands and pay requirements of the women employees would
be addressed in a better way if such development happens. In factNica and Molnar(2016),
reports that Tesco has also enhanced their learning and development opportunities for
empowering the women employees. This is why, Tesco has teamed up with Everywoman
network for the female employees in business so that they can Foster the learning and needs
of the women. HoweverSteinþórsdóttir et al. (2018), observes that the organisation needs to
increase their application against the shared parental leaves. This will help to influence more
women to come back and revamp the job roles after going on for the maternity leave period.
Disco is waiting to introduce working options like term time only contracts comma seasonal
work facility and also job sharing among friends and family. After receiving feedback from
the female employees regarding the job role pressure that the handle, the organisation has
also decided to introduce trailing Technology that would give the female employees more
control over the work schedules they handle. In this context, analysts like Banerjee and
Lee(2015), strongly advocates the policy of formation of inclusive advisory panel by Tesco
which will works constantly towards development of Framework that will provide best
support to diversify the employee groups and will be conducting a pilot scheme with
Timewise Group to track the impact of the implemented policies after every 6 months. This
third party survey of the organisation will help the leaders to understand the original state of

28MANAGEMENT
affairs in the company. Besides their primordial initiatives, the survey will also be conducted
to analyse how to unblock career progression for the female employees by fostering greater
and more flexible working opportunities in every job role taken up by the female employees
and in fact the entire employee base of the organisation.
However, a contrasted perception have been presented by Carli and Eagly(2016), who
monitors that the gender pay gap analysis that is conducted by the organisation after every 10
years, needs to be done on a more frequent basis to track employee development outcomes
more accurately.
4.3 Theme 3: The institutionalised undervaluation
Equal pay have been considered to be a fundamental marker for gender equality in most of
the Institutions as well as organisations across UK. However, researchers like
Waddington(2015),perceive that equal pay is notoriously difficult to be achieved, as a target.
There are ample policy measures that emphasizes equal pay for the corporate organisations in
UK including the equal pay legislation that has been utilised by the government to promote
the culture of equal pay. However, in spite of that gender pay gap pulses all around the globe.
This is emphatically true in the context of the private sector organisations of UK where recent
records of gender based pay disputes have been detected.
Tesco ranks among the top charters in the context of gender based pay dispute in UK
followed by BBC as well as the local governments of Glasgow and Birmingham. As analysed
by social experts likeWoodhams, Lupton and Cowling(2015), the main contribution factors
that faster gender pay gap in the organisations is the undervaluation of the work done by
women. This pay difference have been institutionalized within the structure of labour market
practices like as collective bargaining. The organisational culture of Tesco in UK should
acknowledge the monetary value associated with the feminised work or the work done by

29MANAGEMENT
women. In Tesco one of the main outcomes of their pay system is the production of a credible
hierarchy. Neutral appearing payment systems offers on warranted legitimacy for
discrimination in pay practices in the favour of male workers.
The agreement provided to the workers, irrespective of their gender claims that equal wages
are being faced for workers of every department based on job demand as well as workplace
performance. However the big picture still remains the same. During the 1930, the operations
of women in the store front was unthinkable. The Legacy has been carried forward in the
form of discriminatory practices in terms of payment. In order to Foster global economy as
well as hike the revenue scale, women employees have being employed on a large scale.
However, the value attached to their performance in terms of achieving the organisational
objectives or enhancing the revenue generation of the company have still been Limited.
There is a parallely different wage level based on which the base pay of the male and female
employees of the organisation are determined. For decades comma organisation has not been
into analytical evaluation of the payment policies. The local government of the places where
Tesco runs their stores are all having collective agreements in favour of equal payment
structure for men and women. However, the prevalence of organisational Goodwill allowed
the company to carry on their age old payment system as well as job ranking structure. Tesco
has however confirmed that major reforms are likely to come in the organisational policy that
is to be introduced afresh in 2021. New collective agreements are supposed to replace the old
ones. As analysed by Friedman, Laurison and Macmillan(2017), in the feminized job roles in
Tesco, very few men are there who comes in which comparison with them. If an intern
analysis is conducted among the various departments of the company, Bierema(2016), states
that the wage difference might be observed to be varying up to 30 to 32% also. The same
researchersperceive that it is shocking to wonder how to score good conduct this
incomparable which discrimination under the eye of the strict Governance of the European

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Union trade policies. However, researchers likeAddabbo et al. (2015), states that feminization
is never a justification for payment of lower wages. For equal pay people must recognise the
monetary value associated with the work done by the male as well as female workers. The
most important step in the way of mitigating this payment disparity has been taken by the
central governments of various UK countries like Iceland Norway and so on. A standardized
payment Framework have been implemented which requires that the corporate transnational
companies operating in their Nation should report the base pay structure that their following.
In this context, the government have the rights of collecting specimen pay slip of random
workers for ensuring that the company policy is aligned to the equal pay Standard of the
government.
Discussion
The analysis of fee structure at Tesco reveals that women are still perceived to be secondary
earners by the company. The most perceived thought is that male employees are more
sustainable and hence more profitable for the organisation. Perhaps, the difference in human
capital that is stereotyped in UK is responsible for this discriminatory mind set of Tesco. The
organisational managers naturally perceive that the work value that can be contributed by any
mail employee is much greater than that of any female employed. This is perhaps why the
organisational leaders have shown an increased reluctance towards promoting the female in
employees in senior positions of the company. In this context both the human capital theory
and undervaluation theory highly contextual towards the practice of gender based pay
discrimination by Tesco UK. Repeated policy changes by the government to implicate equal
pay practices in the UK based organisations have been ineffective. The organisation so far
had not revised their policies of payment. However comma the protest and legal challenge
thrown by the store front employees of Tesco bringing forth an allegation of getting 3 Pounds
per hour less compared to the male warehouse employees have had significant impact upon

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the organisation. The female employees received only 8 pound per hour whereas for
comparable work the male employees have been receiving about 11 pound hourly. This issue
has been raised in the International Court of Justice as well as in the EU regulatory authority
also. As an immediate response Tesco has released that they are going to introduce a refined
pay policy by the end of 2020. However, the spokesperson for Disco has also disagreed to
admit that the women employees are mistreated in financial terms in the organisation. They
believed that it is a progressive organisation where employees irrespective of gender caste or
religion can make a wonderful progress with their career.

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CHAPTER 4: CONCLUSION AND RECOMMENDATIONS
The outcomes of this study insisted on the fact that things such as racial bias, disability and
access to education and age come into play. As a result different groups of women could
experience different sort of gaps in pay. Gender pay gap could vary substantially from state to
state because of the factors like the primary industries in the state and opportunities they
create, demographics such as race/ethnicity, age and educational level, regional differences in
attitudes and beliefs regarding the work and gender. In this context, the conception of
adjusted pay gap can be discussed also. The idea of adjusted pay gap is to make comparison
within the groups of workers with roughly similar jobs, education and tenure and this could
allow to tease out the degree to which multiple factors could contribute to identify
inequalities. The literature review section highlights the Human Capital Theory as well as the
Undervaluation model in order to showcase the gravity of the gender pay gap issue in the
country. In the retail workplaces of UK, the women employees have proved their efficiency
in dealing with high profile clients. However, in situations like peak sales hours, male
employees get the maximum exposure to deal with the clients. One of the most discussed
gender pay gap mitigation structure is governmental interference in implementation of the
Equal pay Act. Women employees in the corporate sector (especially in the retail outlets) are
burdened with the pressure of bringing lawsuits in order to prove the discrimination that has
been conducted against them. The role of government in solving this issue is crucial. The UK
government can ask the organisations to release data regarding the pay ratio of the male and
the female employees of the public included in their annual reports.
Recommendations
The first strategy for mitigating the gender pay difference is the implementation of pay
differences. This policy would allow the companies to foster a meritocracy. Those who have

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the maximum productivity would get highest payment as an implementation of this scheme.
The highest pay wouldn’t go to those who ask for it, to those who threaten to quit, or to those
who are friends with the boss, but, instead it would go to those that actually deserve more
pay. Some tech companies are already implementing these strategies in order to reduce the
gender pay gap. According to the Guardian, UK based Analytics Company, SumAll provides
an online document so employees can view the salaries and pay histories of all their
colleagues. Tesco can implement the same policy also.
The second recommended strategy is that of elimination of negotiation. It have been revealed
in empirical studies that the women are not able to perform well in negotiations. It will be
difficult to eliminate negotiation for the higher positions. However, fir the entry level
employees, as in Tesco, the process negotiated appraisal can be eliminated easily.

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