A Comparative Analysis: Tesco and Wal-Mart Motivation Systems Report

This report provides a comprehensive analysis of the organizational behavior of Tesco and Wal-Mart, focusing on their respective employee motivation strategies. It begins with an introduction to the companies, including historical data and business performance. The core of the report delves into the motivation systems employed by both retailers, differentiating between financial and non-financial incentives. It explores how Tesco and Wal-Mart apply various motivational theories to enhance employee engagement and productivity. A detailed SWOT analysis is conducted to evaluate the strengths, weaknesses, opportunities, and threats associated with their motivation approaches. The report assesses the overall effectiveness of these strategies and concludes with actionable recommendations for both companies to improve their motivation systems and, consequently, their organizational performance. The analysis covers aspects like employee reward programs, work-life balance initiatives, and the impact of company culture on employee satisfaction and output. The report leverages the provided assignment solution to provide a comparative analysis between the companies. This report helps to understand the impact of motivation on the overall success of the company.

Organization Behavior

Tesco and Wal-Mart
Table of Contents
Introduction................................................................................................................................1
History of companies with some business data..........................................................................1
Motivation System as whole......................................................................................................2
Financial Motivation of Tesco and Wal-Mart............................................................................2
Non- Financial Motivation of Tesco and Wal-Mart..................................................................3
Non-Financial Motivation System: TESCO...........................................................................4
Non-Financial Motivation System: Wal-Mart........................................................................4
SWOT Analysis of the overall motivation performance of Tesco and Wal-Mart.....................5
Assessment about the motivation system of Tesco and Wal-Mart............................................8
Action Plan as a recommendation for both the companies:.......................................................9
References................................................................................................................................12
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Tesco and Wal-Mart
Introduction
It has been noticed that organization behaviour plays an important role as it is linked with the
study of both group and individual performance that takes place within the workplace. In this
paper, the discussion will be made on the two companies: Tesco and Wal-Mart. By
considering these companies, the focus will be given on complex motivation system and
performance in relation to different theories of motivation. In the first phase of the report,
motivation system as whole will be elaborated by considering financial and non-financial
motivation techniques and then on the basis of that SWOT analysis will be done. Also, the
performance of organizations will be compared and at last an action plan will be
recommended that will assist to improve the performance by boosting the motivation system.
History of companies with some business data
Tesco:
Tesco is one of the retail company with headquarter in Welwyn Garden City, United
Kingdom. The company was founded in 1919 by Jack Cohen. The brand of Tesco first
appeared in 1924 and the store was opened in 1929 in Burnt Oak. In 1946, the company
decide to offer self-service and just after that in 1947, Tesco stores was floated on the stock
exchange with the share price of 25 pence. In 1948, the company opened its first store in
St.Albans, Hertfordshire (Tesco, 2020). In the year 2000, Tesco launched its online website
(Tesco.com) and the website serviced more than 20,000,000 clients visiting its website every
month. In 2012, Tesco introduced new Everyday Value range to replace Tesco value. New
services and products introduced in the market emphasized on the three areas such as quality,
offering healthy option and also improving packaging. In the Fiscal year 2015, Tesco
reported its revenue of £62.3 billion by excluding value added tax. So, by this it showcase 2%
decline in the revenue in comparison to the prior year. Tesco also has the overall market
capitalization of $19.9 billion (Tesco, 2020).
Wal-Mart
On the other hand, Wal-Mart was founded by Sam Walton at the age of 44. The company
went public in 1970 and also proceeds with a steady expansion. Sam achieved growth in the
market as he worked with the concept of providing low cost to attract its customers. By
showing the commitment towards the company achieved Presidential Medal of Freedom
which was given by President George H.W Bush in 1992. In 2007, the company launched its
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Tesco and Wal-Mart
site to enhance online purchasing. In 2015, the company employed 2.3 Million associates on
global platform and has served more than 200 Million customers every week at more than
11,000 stores in 27 countries. In 2015, the company also reported its worldwide revenue of
$485.7 with an increase of 2%.In December 2015; the company has the overall market
capitalization of almost $194 billion. In 2018, the company also changed its name from Wal-
Mart Stores, Inc. to Wal-Mart Inc (Walmart, 2020).
Motivation System as whole
It has been noticed that both the companies emphasize on motivating the employees. It has
been noticed that Tesco aim is to boost the motivation to workers by emphasizing both on
hygiene factors and satisfiers (Sanjeev and Surya, 2016). Tesco believes that if workforce is
motivated then it would be easy for them to achieve higher productivity in less time and also
it minimizes the labor costs. Tesco also stated that it is necessary to maintain trust and respect
and if employees are valued then it would be easy to enhance motivation and to create
positive environment in the workplace (Awadari and Kanwal, 2019). On the other hand, Wal-
Mart believes that motivation is a set of forces that direct the individuals to attain goals. Wal-
Mart is considered as the largest retailers who have been successful in boosting the overall
motivation level of the workers. So, there are various different financial and non- financial
techniques considered by Tesco and Wal-Mart to enhance the engagement and also
performance of the employees towards the given activities. There are various motivational
theories that are also implemented by the companies in relation to financial and non-financial
motivation.
Financial Motivation of Tesco and Wal-Mart
Financial motivation is the rewards which are received by the employees for their worthy
contribution towards the activities performed by them. On the other Non-financial rewards
are the different rewards that are not considered as the part of the worker’s pay (Hewett and
Conway, 2016). It is identified that Tesco considers both financial and non-financial rewards
for motivating the workers. For financial motivation company emphasizes on Frederick
Taylor motivational theories. As per this theory, the employees only work for money and this
approach of paying workers by the overall outcome has resulted in good business for the
company (Nelson and Quick, 2014). By following this theory, Tesco also emphasized on
“Employee Reward Programme” that has direct similarity with the Taylor’s theory. The
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Tesco and Wal-Mart
financial reward packages are one of the motivation factors for the Tesco employees. By
considering this theory, Tesco offer financial rewards such as
 Free shares after one-year service
 Save As You Earn shares available in high interest account
 Pension Scheme that offers equal contributions from the company
 Employee discount card
 Pay slip voucher
 Holiday discounts (Tesco, 2020c).
On the other hand, if compared with Wal-Mart it is researched that in terms of financial
motivation the company encourage their workers by giving limited services as they
believed that “Money and ownership alone aren’t enough”. In terms of financial rewards
Wal-Mart emphasized on encouraging the employees through health care benefits and
also financial benefit. The employees who are engaged in managing the operations of the
company can get health insurance at low price which also includes primary doctor,
pharmacies and also dental. In terms of financial benefits, the main emphasis is given on
offering the workers a chance to purchase the stock from Wal-Mart at low price and also
many times the employees get additional income that depends on the overall performance
of the company (Walmart, 2020b).
Non- Financial Motivation of Tesco and Wal-Mart
There are various motivation systems that are suggested by different authors which
mainly include financial and non-financial motivation system. Non – financial motivation
system is a system where employees are rewarded with non-monetary benefits such as:
• Appreciating the hard work of the employees.
• Providing them a sense of achievement.
• Giving them the opportunity for advancement.
• Giving them higher responsibility and empowering them.
• Providing a healthy work environment where job becomes enjoying.
Tesco and Wal-Mart, both the companies are involved in non-financial motivating
practices. An analysis of their non-financial motivation system is presented below.
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Tesco and Wal-Mart
Non-Financial Motivation System: TESCO
Tesco believes that a growth of the business depends upon two groups is individuals –
staff as well as customers. In order to maintain the high motivation of its staff Tesco
rewards its employees with different types of reward system with the objective of
providing them work life balance:
• Staff at Tesco is given flexible working hours.
• They also provide health benefits at reduced rates or free.
• Gym membership is given to the employees of Tesco on a discounted rate (Tesco,
2020c).
According to Taylor’s motivation theory – people mainly work for money. While
analysing this theory in Tesco’s point of view, it is found that company takes care of the
financial benefits of its employees; however, Tesco goes beyond Taylor’s theory by
rewarding its employees with Non – Financial benefits too. Tesco does a survey every
year in order to know the satisfaction level of its staff. This survey is called Viewpoint
and Tesco ensures that staff is motivated enough with the help is Survey Results. Some
nonfinancial benefits which staff of Tesco gets is long breaks of 4-12 weeks offs and it is
called as Lifestyle break. They provide Career Break too which may vary from 6 months
to 5 years and the staff gets the guarantee for job when they are returned. Pension scheme
is also there. Also, the company focuses on Tesco’s talent planning meetings through
which it is easy to fast track the management program and also it directs the employees to
reach the higher expectations (Tesco, 2020c).
Non-Financial Motivation System: Wal-Mart
Just like Tesco, Wal-Mart also takes care of its employees with Non – Financial
motivation. Wal-Mart as a company has been very successful in motivating its employees
with both Extrinsic and Intrinsic rewards. If we consider the Maslow’s Hierarchy of
Needs then it is found that Social and Self Esteem are the very important needs that
should be fulfilled for employee motivation (Itri et al., 2019).
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Tesco and Wal-Mart
Wal-Mart understands this very clearly. This is visible in the below statement made by
Sam Walton – “Individuals do not win but a team win. If you have worked for Wal-Mart;
Sam Walton was your partner and not the boss.” With the above statement, Sam Walton
has proved that he wants to give his employees a sense of togetherness and self-esteem
(Walmart, 2020b).
Wal-Mart uses terms “Association” and avoids using word “employees”. This is done in
order to ensure that Wal-Mart gives the value to its employees as they are the part of the
organization. Another important practice that Wal-Mart does is that they call all their
associates with their First names. Right from the junior most employees to the top
management; everyone is called by his/her first name. This makes the environment a
family-oriented business rather making it a boss oriented. Sam Walton said that money
and ownership is not everything. We must set higher goals and encourage competition
and then we should keep the score (Walmart, 2020b).
Top management at Wal-Mart ensures that associates are not given easy tasks but
challenging ones. They have implemented “cross – pollination” system where in
manager’s change their department from time to time in order to remain challenged. By
doing this, Wal-Mart ensures that employees feel respected. By considering this approach
company ensures to enhance the overall motivation of the workers towards the assigned
job role (Hidi, 2016).
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Tesco and Wal-Mart
SWOT Analysis of the overall motivation performance of Tesco and Wal-Mart
It has been examined that Tesco and Wal-Mart considered the different techniques and
theories to enhance the motivation level of the workers. By analysing the overall
motivation performance, it is seen that there are various Strength, weakness, opportunities
and threats linked to the company.
Swot analysis of Tesco
Strength:
By considering the overall analysis of motivational techniques of Tesco it is examined that
there are various strengths that can assist the company in accomplishing the set goals and
objectives. The first strength is linked with higher productivity as it can be said that Tesco
considers proper financial and non-financial motivation such as offering health benefits, gem
memberships and also proper work life balance. So, by considering this motivation factors it
the employees will be able to give higher productivity and also it boosts the engagement level
of the workers towards the assigned job role. The other strength is linked with positive
culture. Tesco provide proper platform to share views and opinions so that it will assist in
maintaining positivity among the workers.
The other strength is work life balance in which the employees can enjoy proper work life
balance which will directly boost the efficiency. The other strength is related with more
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Strength Higher productivity High engagement level of the
employees. Positive culture. Work life balance More training opportunities.
Weakness
 Enhances company overall
expenses.
 Effectiveness of Motivation
technique can vary in different
markets.
Opportunities Career progression Retain talented workforce
Threats
 Ageing workforce

Tesco and Wal-Mart
training opportunity as it can be said that Tesco focuses on proper feedback through which it
can be identified the improvement area of the employees. So, these are the strengths that are
directly related with the effective motivation techniques considered by the company.
Weakness:
If comparison is made with Wal-Mart it is identified that Tesco offers more monetary
rewards such as holiday discounts, gym membership Employee discount card and Pay slip
voucher. So, all the rewards offered by the company can enhance the overall expense in the
highly competitive business world. Also, as per the analysis the motivation techniques can
vary in different markets as Tesco has branches in many countries so at sometime people can
face the issue in relation to individual and personal needs.
Opportunities:
By considering the financial and non-financial rewards there are various opportunities that
can be grabbed by the employees and company. By considering development plans used by
Tesco the employees can easily focus on their career progression. Also, by offering different
rewards the company can retain the talented employees in the workplace. As employees only
seek for more benefits and if they are derived from the company itself then they will work
with motivation.
Threats
By considering all the non-financial and financial motivation technique, there can be threat
from ageing workforce. Ageing workforce seeks for the benefits but they are not able to give
their best, so it can enhance the overall cost of the management.
Swot analysis of Wal-Mart
Strength Maintain unity Enhance skills of workers Generate interest towards work
Weakness
 As compared to other companies
like Tesco, Wal-Mart offers less
benefits to employees.
Opportunities Can assist employees to work with
coordination.
Threats
 Retention of employees.
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Tesco and Wal-Mart
 Chances of expansion.
By analysing the overall motivation techniques and tools considered by Wal- Mart, there are
various strengths, weakness, opportunities and threats are identified.
Strength:
As examined Wal- Mart emphasizes on the concept of working in a team, so through this it
would help in maintaining unity among the individuals. Also, through cross – pollination the
company can enhance the overall skills and knowledge of the employees towards the
assigned job role which also creates generate interest towards the work among the employees.
Weakness
If it is compared with Tesco, it seems that Wal-Mart offers fewer benefits to the employees,
so it is important for the company to enhance more benefits so that motivation level towards
work can be boosted (Tesco, 2020c).
Opportunities
As company follows the approach to work in a team can assist the employees in maintaining
coordination towards the allocated work by management. Also, the next approach in which
first name is taken of junior and higher management can assist in excelling in different
markets as this approach positively affect the personality of the individuals and also enhances
the morale (Thibault Landry and Whillans, 2018).
Threats
The company can face the risk at the time of retaining the employees. As there are many
other competitors offering different benefits to the employees as compared to Wal-Mart. The
benefits provided by the company are limited so it can create issue at the time of retaining the
employees.
Therefore, it can be said that there are different strength, weakness, threats and opportunities
in relation to the overall motivation approach considered by the companies. It is important to
offer more benefits to the employees as it can assist in accomplishing the set goals and
objectives in the competitive market (Malik, Choi and Butt, 2019). The threats and weakness
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Tesco and Wal-Mart
are the major aspects on which the company should focus as it can assist and direct the
workers towards the set direction.
Assessment about the motivation system of Tesco and Wal-Mart
By considering the different ways and techniques used by the company, it can be said that
Tesco uses effective approach as compared to Wal-Mart. The benefits given by Wal-Mart are
limited as compared to Tesco. Tesco follows proper motivational theories and also
emphasizes more on employee development and growth. It has been examined that one of the
best techniques used by Tesco is Employee Reward Programme. By using this method, the
company can easily attain growth and success in the competitive market as it directly boosts
the motivational level of the workers towards work. On the other hand, the best approach
considered by Wal-Mart “is that they call all their associates with their First names”. By
considering this practice the company enhances the overall morale of the employees and also
do not create negative feeling among each other. In comparison to Tesco, Wal- Mart should
also emphasize talent planning as it can enhance the skill and knowledge of the workers
towards the task allocated to them. But on the other hand, it is identified that company should
focus on refining the training programs and also on enhancing the career development
opportunity as it will assist in enhancing the motivation level of the workers towards job role.
Action Plan as a recommendation for both the companies:
By analysing the overall motivation approaches, it is recommended for Tesco to consider
“Badge system” in the workplace. Tesco consider 360 degree feedback system to recognize
individuals, so by considering this the company should also reward performance by meeting
the set goals. It is noticed that a proven motivator for the employees is when they earn badge.
So, the best employee should be rewarded with a badge so that it could be remembered for
long and also it generates positivity which will assist in improving the overall performance
towards the assigned goals. On the other if comparison is made with Wal-Mart Company it is
recommended that company should emphasize more on giving feedback to its employees.
Wal-Mart should consider the approach of “setting smaller weekly goals”. This will not only
boost the performance of the employees but also create positive environment in the
workplace.
The other recommendation is related to collaborating with training agencies. The companies
should collaborate with training agencies so that training process can be more refined. The
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Tesco and Wal-Mart
companies should search for the top training agencies so that training can be given in a proper
manner to the individuals. There should be fun activities organized by the companies so that
individuals can generate interest towards the different training sessions. The timeline of
training should be set for 4 to 5 months and also the responsibility should be given to training
head, HR division and Agency head. At the time of giving training, the best tool to evaluate
the session can be balance scorecard as it will help to examine the overall skills and
knowledge attained by the individuals. So, these are the recommendations that should be
considered by both the companies to enhance the performance of the employees towards the
assigned goals and objectives.
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