Employee Motivation in the Retail Industry

This assignment delves into employee motivation within the retail industry. It examines the impact of various factors like salary, recognition, and fringe benefits on employee performance. The questionnaire aims to understand employees' perspectives on these factors and their influence on work satisfaction and company loyalty. Additionally, it explores strategies to enhance employee motivation and maintain a competitive edge in the retail sector.

Research Project
(The impact of motivation on employee’s
performance- A case study of Tesco
branches in London)

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview................................................................................................................................1
1.2 Rational (Background of research)........................................................................................1
1.3 Significance of research.........................................................................................................2
1.4 Aim........................................................................................................................................2
1.5 Research Objectives...............................................................................................................2
1.6 Research questions.................................................................................................................3
1.7 Planning of activities.............................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
2.1 Introduction............................................................................................................................4
2.2 Concept and theories of motivation.......................................................................................4
2.3 Employees performance........................................................................................................6
2.4 Impact of motivation on the performance of staff members.................................................6
2.5 Conclusion.............................................................................................................................7
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................8
3.1 Introduction............................................................................................................................8
3.2 Research approach.................................................................................................................8
3.3 Research design.....................................................................................................................8
3.4 Research philosophy..............................................................................................................8
3.5 Data collection technique......................................................................................................8
3.6 Sampling................................................................................................................................9
3.7 Data analysis and interpretation.............................................................................................9
3.8 Ethical issues.........................................................................................................................9
3.9 Research limitation................................................................................................................9
CHAPTER 4: FINDINGS AND DICUSSION.............................................................................10
4.1 Overview..............................................................................................................................10
4.2 Thematic analysis................................................................................................................10
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................17
5.1 Conclusion...........................................................................................................................17
5.2 Recommendations................................................................................................................17

REFERENCES..............................................................................................................................18
APPENDICES...............................................................................................................................20

CHAPTER 1: INTRODUCTION
TITLE: The impact of motivation on employee performance- A case study of TESCO branches
in London.
1.1 Overview
In the modern era, organizations are performing better than their rivals as there is huge
competition in the market. They all perform their operations in an effective way so that they can
generate high profitability and revenues. In this changing environment, some companies face
issues which cannot lead them towards success (Lazaroiu, 2015). So, they are more focused on
the approaches and strategies which can help them in enhancing the performance of employees
and management can also be improved. HRM is an approach that is used by an enterprise so that
they will be able to manage their most valuable assets. It involves some aspects like training,
recruitment, motivation, compensation and so on. Along with this, performance of workers is
directly related to their motivation level. If this will be high, then their satisfaction level is also
high and due to this overall productivity of firm can be enhanced.
The present research project is based on TESCO which is a British firm and they perform
their operations in all over the world. They have approx. 2500 outlets in many different countries
so they have strong customer base than their competitors (Skudiene and Auruskeviciene, 2012).
Along with this, present study is conducted on the 10 Tesco stores in London so that overall
motivation level among people can be evaluated. The manager of retail industry uses some
motivation tools and techniques so that level of turnover and absenteeism can be reduced to
some extent.
1.2 Rational (Background of research)
The present field of study is based on motivation level of employees and how this can
affect their performance. For this, a research has been conducted through which it can be
evaluated that this is the factor which can help the firm in retaining their employees. The current
issue is the performance of workers which is get affected due to low motivation level among
staff members. This issue has been arising due to improper management of the human resource
department.
Now, it is an issue because employees are the one who help firm in achieving the
competitive advantage and success at the market area (Fernandez and Pitts, 2011). If they are
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self-motivated then they will perform well so this issue is more significant for an enterprise. So,
current research is more focused on this and researcher has been use some tools and techniques
so it can be evaluated that how motivation factor can affect the performance of staff members.
1.3 Significance of research
The present research project is significant for organization in terms of theoretical as well as
practical. Some existing motivational theories has been explained in the context of retail industry
and along with this, it can also be explained that how culture can make a distinguish image of
respective firm. HR department is responsible to enhance the motivation level among people and
retain them so that efficiency can be achieved (Sandhya and Kumar, 2011). So, this thing can
add some relevant concept in existing literature which are conducted by other authors.
This kind of analysis is very helpful for business organization as through this they will be
able to identify the challenges which are faced by the existing employees. By providing some
rewards, incentives, compensation the motivation level among people can be increased to some
extent. So, in this way it can be evaluated effectively that employee’s performance is based on
their motivation.
1.4 Aim
The main aim of this research project is “To identify the impact of motivation on the
performance of employees”. The overall study is conducted on the staff members of TESCO in
10 stores of London so that their motivation level can be evaluated in more effective manner.
Whenever a researcher conducted analysis then first a purpose of study should be established so
that further analysis can be carried out effectively.
1.5 Research Objectives
Some objectives have been set by researcher so that they will be able to carry out analysis in
an appropriate manner. By establishing these, the research problem can be resolved more
efficiently. These goals are stated below:
 To identify the motivation level among all employees of TESCO.
 To assess the strategies which are adopted by retail industry in order to enhance the
motivation among workers.
 To evaluate the current performance of staff members at the work environment.
 To determine the impact of employee motivation on their performance.
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 To recommend some approaches to TESCO so that they will be able to sustain their
competitive advantage in more successful manner.
1.6 Research questions
There are some questions which are framed for the current project so that specified goals can
be accomplished. Some of these are as follows:
Q1. What are the motivational strategies which are adopted by TESCO?
Q2. How the current performance of firm can be evaluated?
Q3. What is the relationship between motivation of the workers and their performance?
Q4. What ways are through which the retail industry can gain competitiveness?
1.7 Planning of activities
All the activities can be planned as per their time in which those particular activities can be
completed. For this, a Gantt chart can be made so that overall operations can be performed
effectively.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
In the present section of research project, data has been gathered on the basis of secondary
resources such as books, journals, articles, internet, research papers etc. By reviewing different
past literature, important aspects of current field of study can be collected which will help the
researcher in order to carry out further analysis. Some theories related to motivation are also
explained in this section. On the basis of this, valid and reliable data can be achieving which will
help in drawing the valid outcome. The current study is based on to identify the motivation level
among staff members and how this may affect their performance. After conducting this, research
gap can also be reduced to some extent.
2.2 Concept and theories of motivation
According to the views of Sadri and Bowen (2011) motivation is a term or psychological
process and it is known as internal drive which can help an individual in order to fulfil their
unsatisfied need. It is a goal directed behaviour where workers are strongly committed towards
their work. Highly satisfied employees can perform well at the work environment as compare to
the people who have low motivation level. When they will perform good then due to this they
can help an enterprise in achieving the success as compare to other market players. On the
contrary, it has been stated by Block (2011) this is a very complex task for manager that they
have to continuously evaluate the performance of their employees. It is a kind of decision
making process, which help an individual in order to set the direction so that desired outcome
can be achieved in an appropriate way. The motivation can be enhanced on the basis of extrinsic
as well intrinsic factors.
Lester (2013) stated that there are some theories which can be used by business
organizations in order to enhance the motivation among people. These play a significant role in
improving the performance of current enterprise. These theories are like Maslow’s hierarchy of
need theory and Herzberg two factor theory. Abraham Maslow (1954), proposed a theory on the
basis of some needs like psychological, safety, belongings, self-esteem and self-actualization.
Psychological are related to basic like wages, salaries and safety are related to personal security,
financial, medical security, health& safety etc. Belongings is related love, esteem is related to
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self-respect and actualization can be related to the highly motivated person. If an enterprise
focused on these needs, then they can increase the satisfaction among them.
Source 1: McLeod, S., 2017
As per the views of Sadri and Bowen (2011) Herzberg is another theory which is focused
on hygiene and motivators factors. Hygiene factors are related to job security, relations, working
conditions, culture and company’s policies. On the other hand, motivators are related to job
satisfaction, recognition, achievement and so on. By providing these, an enterprise can increase
the motivation among their employees.
Source 1: Herzberg’s Two-Factor Theory of Motivation. 2017
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2.3 Employees performance
Kiel (2011) confronted that performance of an enterprise is based on the performance of
employees. So, if an organization wants to get succeed then they have to manage their human
resources effectively as this is depends upon their creativity and innovativeness. The employee’s
performance and organizational productivity are interlinked with each other. By giving proper
wages, salary, improved lifestyle to the people then they feel motivated and due to which
absenteeism and turnover is get reduced to some extent. It has been analysed byLazaroiu (2015)
that manager of firm has to continuously monitor the work of an individual so that people will be
able to know about their strengths and weaknesses. Along with this, the higher authority gets to
know about needs and demands of people which can help in increasing the satisfaction level of
staff members.
According to the views of Skudiene and Auruskeviciene (2012) job performance can be
evaluated on the basis of some dimensions like quantity, quality, job knowledge and
dependability. So, by measuring these, overall objectives can also be accomplished which are set
by the business organization.
2.4 Impact of motivation on the performance of staff members
According to the views of Ewen, Smith and Hulin (2015) there are some factors which can
influence the motivation level of people. Some of these factors are like rewards, compensation,
incentives, recognition, fringe benefits, monetary as well as non-monetary benefits. There is
direct relationship between employee motivation and job performance. Like if the level among
people is get increased and performance of staff members is also get increased and vice versa.
On the other hand, Fernandez and Pitts (2011) argued that some job characteristics should also
be possess within the staff members so that this kind of relationship can be exist between two
variables such as motivation and workers. Some of these characteristics are like skills,
knowledge, experience, innovativeness, creativity and so on. So, by adopting these competencies
an individual will be able to perform well which can lead them towards success.
It has been explained byDeShields Jr, Kara and Kaynak (2015) that there is a strong cyclic
relationship between performance, motivation and satisfaction. Like is performance is high then
their satisfaction level can also be increased and due to which they feel motivated and their
specified goals can be achieved in an effective way. Apart from this, work should also be
designed in an appropriate way so that staff members feel confident and their performance is get
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increased to some extent. Furthermore, the productivity of TESCO can be increased to some
extent which can help them in achieving competitiveness at the market area as compare to other
competitors.
2.5 Conclusion
After collecting data from different secondary resources, it can be concluded that
motivation is a factor which can help the person in performing well. An enterprise can offer
some rewards, compensation, incentives to their staff members so that they feel motivated. When
this level within an individual is get increased then they will be highly satisfied and due to which
quality work can be improved. Furthermore, Tesco should monitor the performance of
employees at workplace so that they will be able to know about their own strength and
weaknesses. By analysing this, they can achieve specified goals and objectives.
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
Research methodology is a kind of process that is used by researcher in order to
accomplish the specified questions. Here, in this section different methods, approach, resources,
analysing tools and techniques are explained in detail with their justification. By implementing
these, it can be evaluated that employee’s motivation can affect their performance.
3.2 Research approach
An effective approach should be used by researcher so that result can be derived after
resolving the issues. Deductive and inductive are two types of approaches which can be used by
researcher so that objectives can be resolved. In deductive, hypothesis has been created and
observation is done in an effective way. Here, in the current project inductive has been followed
in which theories are developed on the basis of observation. In this way, authenticate outcome
can be gained.
3.3 Research design
Some designs are there like descriptive, exploratory, experimental, correlational, causal
and so on. Through these, a plan can be prepared which will help the researcher in carried out
evaluation in an effective manner. Here, in the current research project descriptive design has
been followed so that in-depth understanding about the topic can be increased.
3.4 Research philosophy
In a philosophy, some assumptions are made by researcher which will act as a base for
current study. Positivism, interpretivism and realism are three philosophical approaches which
can help in completing the research in effective way. Positivism is a scientific approach where
different mathematical as well as statistical tools are used. In the current study, interpretivism has
been used so that human perception can be identified on their motivation level and how this may
affect their performance.
3.5 Data collection technique
Data collection techniques are those through which information regarding to the topic can
be gathered. There are two different sources such as primary and secondary. Primary is related to
the surveys like questionnaire, interviews, focus group and observation. Here, questionnaire has
been used by researcher in which questions has been asked to number of respondents. Apart from
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this, secondary sources are related to the books, journals, internet and so on. After collecting the
data from such sources, the overall literature gap between past and present research can be
reduced.
3.6 Sampling
There are some sampling techniques like probabilistic as well as non-probabilistic. In the
first approach, a selection criterion has been set and in another there is no criteria to select
number of respondents. Here, a random sampling techniques has been used by researcher so that
a sample can be extracted from large population. The survey is conducted on the employees of
10 TESCO stores which are established in London. Through the random approach, 2 employees
are selected from each store so total sample size which is selected for this study is 20. On the
basis of this motivation level can be increased and their performance can be improved.
3.7 Data analysis and interpretation
The data can be analysed on the basis of some evaluation techniques like thematic analysis,
case study and so on. Here, thematic approach is used by researcher which comes under
qualitative approach. In this, different themes are prepared with their graphical presentation. By
getting the views or opinion of respondents it can be evaluated that motivation level can affect
the job performance at the workplace.
3.8 Ethical issues
The research should be conducted by following all code of practices and legislative laws.
Through these, the overall analysis can be interpreted in more transparent manner. At the time of
evaluation, personal information of respondents is not shared with the anyone. Along with this,
the sources have been provided from where the information is taken so that ethical consideration
can be maintained. So, all ethical practices have been performed in carrying out the analysis.
3.9 Research limitation
There are some limitations of this research which are specified below:
 Due to time constraint the overall research is narrowed down to 10 branches of Tesco for
the further analysis. Because this is not possible to conduct a survey on all the stores of
Tesco worldwide.
 The fund was limited so it is not possible to conduct the research on such large scale.
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CHAPTER 4: FINDINGS AND DICUSSION
4.1 Overview
In this section, the data has been analysed on the basis of responses which are gathered
from different respondents. There are two types of research methods like qualitative as well as
quantitative. Here, in the present study qualitative approach has been used by researcher. Along
with this, thematic approach is used in which themes are prepared on the basis of questions
which are asked to the staff members. On the basis of their opinions, graphs have been prepared.
4.2 Thematic analysis
Theme 1: Mostly staff members are working in TESCO from 1 to 2 years.
Q1. From how many years have you been working in TESCO? Frequency
Less than 6 months 5
6 months to 1 year 4
1 to 2 years 8
More than 2 years 3
Findings: On the basis of above graphical representation, it can be concluded that there
are 25% respondents who are working from last 6 months, 20% are working from 6 months to 1
year, 40% are working from 1 to 2 years and other 15% are working over there from more than 2
years.
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Theme 2: Employees are highly satisfied with the working environment of TESCO.
Q2. Are you satisfied with the working environment of retail
industry?
Frequency
Highly satisfied 7
Satisfied 4
Neither satisfied nor dissatisfied 2
Dissatisfied 3
Highly dissatisfied 4
Findings: From the above findings, it can be summarized that there are approx. 35% staff
members who are highly satisfied, 20% are satisfied, 10% are neither satisfied or dissatisfied,
15% are dissatisfied and 20% are highly dissatisfied. So, in this way it can be evaluated that the
firm have an appropriate work culture.
Theme 3: Salary and promotion can motivate the staff members.
Q3. What kind of factors motivates you more? Frequency
Salary 7
Promotion 7
Recognition 3
Fringe benefits 2
Others 1
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Findings: After preparing this graph, it can be indicated that 35% respondents says salary
can enhance motivation of employees, 35% thinks promotions, 15% says recognition, 10% are in
favour of fringe benefits and 5% says there are other factors which can enhance motivation level
of employees.
Theme 4: The benefits which are provided by firm can influence the job performance in
excellent manner.
Q4. How the benefits which are provided by company influence
your work performance?
Frequency
Excellent 8
High 3
Very high 5
Don’t know 4
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Findings: There are approx. 40% respondents who says that performance can be
improved of employees excellently if an enterprise offer some extra benefits, 15% says high,
25% says very high and other 20% says other. So, in this manner it can be concluded that when
an enterprise provides some extra benefits then due to this their performance can be improved.
Theme 5: Overall productivity and staff retention can be achieved by offering benefits to
employees.
Q5. In your opinion, what kind of benefits can be achieved by
offering some extra benefits to employees?
Frequency
Profitability 3
Productivity 8
Staff retention 8
Others 1
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Findings: After conducting the analysis, it can be interpreted that there are 15%
respondents who says profitability can be improved, 40% thinks productivity can be enhanced,
40% are agreed that retention of staff members can be increased and other 5% says some other
benefits are there which are achieved by company after offering some benefits to the staff
members.
Theme 6: Yes, top executives involves the employees into the decision making process.
Q6. Does top management of TESCO involve you into the decision
making process?
Frequency
Yes 12
No 5
Occasionally 3
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Findings: On the basis of graphical representation, it can be interpreted that there are
approx 60% staff members who says that top management involve them into decision making
porcess, 25% says no and other 15% thinks that occasionaly top executives involves them into
decision making process.
Theme 7: Top executives are interested in enhancing the motivation level among
employees.
Q7. Are you agreeing that top management and managers are
interested in enhancing the motivation level among people?
Frequency
Strongly agree 7
Agree 4
Neither agree and no disagree 2
Disagree 5
Strongly disagree 2
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Findings: On the basis of above graph, it can be summarized that there are 35% are
strongly agree that top management is interested in enhancing the motivation level of people,
20% are agree, 10% have no reaction over this statement, 25% are disagree and 10% are strongly
disagree that managers & top management are interested into enhancing the motivation level of
people.
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CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
After carried out analysis, it can be summarized that organizations should be more focused
towards their management and administration department. In the changing environment, needs
and demands of people are changing continuously and due to this competition is get increased in
market. For this, companies should manage their human resources as they are the main asset of
firm. So, some rewards, compensation, incentives should be offered to the staff members so that
their motivation level can be increased and due to this their performance can also be improved.
There are some motivational theories such as Maslows’s and Herzberg. On the basis of these,
overall organizational productivity can be increased.
Some methodological approaches are used by researcher like descriptive design,
interpretivism philosophy, inductive approach, data collection techniques and random sampling.
By applying these, it can be evaluated that motivation level can highly affect the performance of
employees. After conducting the thematic analysis, it can be concluded that many respondents
give same responses for the number of questions. So, in this way Tesco can adopt some
strategies which will help them in enhancing their performance.
5.2 Recommendations
There are some recommendations which should be followed by organizations so that they
can achieve competitive advantage in an effective manner. By implementing these approaches,
an enterprise will be able to overcome their challenges so that effective outcome can be
achieved. Some of these are as follows:
 Training and development: Tesco should provide proper training and development
practices at the workplace so that skills and knowledge can be enhanced within
employees. Through this, they feel motivated and perform well at the work environment.
So, this may help a manager in order to increase the motivation level of staff members.
 Provide rewards on continuous basis: The higher authority of retail industry can provide
some rewards and benefits to their employees on continuous basis so that their self-
motivation level can be enhanced to some extent. Along with this, all rewards should be
provided in the timely manner.
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REFERENCES
Books and Journal
Block, M., 2011. Maslow’s hierarchy of needs. In Encyclopedia of child behavior and
development (pp. 913-915). Springer US.
DeShields Jr, O. W., Kara, A. and Kaynak, E., 2015. Determinants of business student
satisfaction and retention in higher education: applying Herzberg's two-factor theory.
International journal of educational management. 19(2). pp.128-139.
Ewen, R. B., Smith, P. C. and Hulin, C. L., 2015. An empirical test of the Herzberg two-factor
theory. Journal of applied psychology. 50(6). p.544.
Fernandez, S. and Pitts, D. W., 2011. Understanding employee motivation to innovate: Evidence
from front line employees in United States federal agencies. Australian Journal of
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Kerlinger, F.N. and Lee, H.B., 2012. Foundations of behavioral research.
Kiel, J. M., 2011. Reshaping Maslow's hierarchy of needs to reflect today's educational and
managerial philosophies. Journal of Instructional Psychology. 26(3). pp.167-167.
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Kumar, S. and Phrommathed, P., 2005. Research methodology (pp. 43-50). Springer US.
Lazaroiu, G., 2015. Employee Motivation and Job Performance. Linguistic and Philosophical
Investigations. 14. p.97.
Lester, D., 2013. Measuring Maslow's hierarchy of needs. Psychological Reports, 113(1), pp.15-
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Murry Jr, J.W. and Hammons, J.O., 2017 Delphi: A versatile methodology for conducting
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Peffers, K. and et.al., 2007. A design science research methodology for information systems
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Perry, C., 2011. Processes of a case study methodology for postgraduate research in marketing.
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Reigeluth, C.M. and Frick, T.W., 2014. Formative research: A methodology for creating and
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is still a reliable guide to motivating staff. Industrial engineer. 43(10). pp.44-49.
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Sandhya, K. and Kumar, D.P., 2011. Employee retention by motivation. Indian Journal of
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Scandura, T.A. and Williams, E.A., 2013. Research methodology in management: Current
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Online
Herzberg’s Two-Factor Theory of Motivation. 2017. [Online]. Available through:
<http://www.managementstudyguide.com/herzbergs-theory-motivation.htm>.
[Accessed on 28th July 2017].
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McLeod, S., 2017. Maslow's Hierarchy of Needs. [Online]. Available through: <
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July 2017].
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APPENDICES
Questionnaire
Name:
Age:
Gender:
Designation:
Q1. From how many years have you been working in TESCO?
 Less than 6 months
 6 months to 1 year
 1 to 2 years
 More than 2 years
Q2. Are you satisfied with the working environment of retail industry?
 Highly satisfied
 Satisfied
 Neither satisfied nor dissatisfied
 Dissatisfied
 Highly dissatisfied
Q3. What kind of factors motivates you more?
 Salary
 Promotion
 Recognition
 Fringe benefits
 Others
Q4. How the benefits which are provided by company influence your work performance?
 Excellent
 High
 Very high
 Don’t know
Q5. In your opinion, what kind of benefits can be achieved by offering some extra benefits to
employees?
 Profitability
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 Productivity
 Staff retention
 Others
Q6. Does top management of TESCO involve you into the decision making process?
 Yes
 No
 Occasionally
Q7. Are you agreeing that top management and managers are interested in enhancing the
motivation level among people?
 Strongly agree
 Agree
 Neither agree and no disagree
 Disagree
 Strongly disagree
Q8. Recommend some strategies so that retail industry will be able to sustain their competitive
advantage?
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