Investigating Employee Motivation and Customer Satisfaction at Tesco

This research project investigates the significant impact of employee motivation on customer satisfaction within Tesco, a leading retail organization. The study aims to assess factors affecting customer satisfaction, examine employee motivation, and analyze the effects of motivated employees on customer satisfaction. The methodology includes a literature review, qualitative research, and thematic analysis of primary data collected through questionnaires from both employees and customers. Key findings reveal that a majority of employees are satisfied with the work environment and believe management incorporates them in decision-making processes. Furthermore, the research highlights the importance of non-monetary benefits and a positive work environment in enhancing employee motivation, which in turn positively impacts customer satisfaction. The analysis also covers customer perspectives on service quality, employee behavior, and overall satisfaction levels. The report concludes with recommendations for Tesco to further enhance employee motivation and customer satisfaction, emphasizing the need for continuous improvement and a focus on employee needs. This report provides valuable insights for understanding the critical link between employee engagement and customer experience in the retail sector.

RESEARCH
PROJECT
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TABLE OF CONTENTS
chapter 1: introduction.....................................................................................................................5
1.1 Research project description..................................................................................................5
1.2 Research aim and objectives..................................................................................................5
1.3 Factors contribute to the process of research project selection..............................................6
1.4 Literature review....................................................................................................................7
1.5 Research methodology...........................................................................................................8
1.6 Action plan.............................................................................................................................8
1.7 Structure of the project...........................................................................................................9
Chapter 2: Literature review..........................................................................................................10
Introduction................................................................................................................................10
To assess the factors affecting customer satisfaction................................................................10
To examine several factors associated with employees motivation..........................................11
To analyze the effect of motivated employees on customer satisfaction...................................13
CHAPTER 3: RESEARCH METHODOLOGY ..........................................................................15
3.1 Methods and techniques.......................................................................................................15
3.2 Sampling..............................................................................................................................15
3.3 Data collection ....................................................................................................................16
3.4 Ethical consideration ...........................................................................................................17
Chapter 4: Data Collection and Analysis.......................................................................................18
4.1 Data Collection....................................................................................................................18
4.2 Data analysis........................................................................................................................20
5....................................................................................................................................................1
CHAPTER 5: CONCLUSION AND REMMENDATIONS........................................................31
5.1 Conclusion...........................................................................................................................31
5.2 Recommendation.................................................................................................................31
5.3 Area for further research consideration...............................................................................32
REFERENCES..............................................................................................................................33
APPENDIX:Questionnaire............................................................................................................35
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ILLUSTRATION INDEX
Illustration 1: Maslow's Need Hierarchy Pyramid.........................................................................12
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CHAPTER 1: INTRODUCTION
1.1 Research project description
Customer satisfaction is the most important aspect behind the success of any retail
organization. Companies make efforts to satisfy the needs of buyers by providing them quick
responses and through addressing their issues in a right manner. In this regard, employee
motivation is also an imperative concept because employee motivation is directly linked with the
customer satisfaction. Buyers are the king of market where company focuses on their desire and
preferences. Furthermore, employees are the keys to meet the expectations of buyers and to
increase the customer base towards corporation. This facilitates corporation to deliver good
quality of services to a large number of buyers. Apart from this, it is important for a corporation
to take into account the needs of workforce. By focusing on their needs, company can provide
them good quality of products and services (Eskildsen, Kristensen and Westlund, 2004).
Present report is based on Tesco which is the third largest retail store in the world in
context of profitability. It is based in UK which is a grocery & general merchandise firm. This
corporation has stores across 12 countries and serves as the grocery market leader in UK.
Further, corporation has diversified itself into several segments like clothing, furniture, toys and
books as well as electronics and more. Tesco caters the needs of its buyers effectively by
offering them several additional services. However, organization's employees are provided with
monetary and non-monetary benefits in order to enhance their level of motivation and
satisfaction. Accordingly, it leads to enhance the level of customer satisfaction as well as the
profitability of firm. Tesco uses several strategies to enhance customer satisfaction such loyalty
card scheme for customers, extra activities for workforce and other related activities which in
turn its objectives can be accomplished on right time. Furthermore, employees of corporation are
are provided good working environment whereby they can easily contribute towards increasing
customer base and determining high rate of return.
1.2 Research aim and objectives
The research aim and objectives are specified as follows thereby research will be
conducted in specified manner.
Aim:
To investigate the impact of employee motivation on customer satisfaction
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Objectives:
Research aim and objectives are crucial part of study for which research is done. In the
present study on impact of employee motivation on customer satisfaction following research
objectives will be formulated. It will help scholar to create database for the study and reach at the
aim of the same.
 To assess the factors affecting customer satisfaction.
 To examine several factors associated with employee’s motivation.
 To analyze the effect of motivated employees on customer satisfaction. To suggest different ways to enhance the employee motivation and customer satisfaction.
Research questions:
Research questions for the study are prepared in the light of formulated research
objectives. It will assist researcher to collect right kind of data to fulfill research purpose in an
appropriate manner-
 What are the different factors that are affecting customer satisfaction?
 What are the several factors that are associated with employee’s motivation?
 What is the effect of motivated employees on customer satisfaction?
 What are the different ways to enhance the employee motivation and customer
satisfaction?
1.3 Factors contribute to the process of research project selection
The main motive behind conducting this research is to minimize the intensity of
competition by adopting effective measures to cater the needs of buyers. This is because; now
days, corporations are facing competition because of changing preferences of buyers and high
turnover rate of employees. Here, rate of employee’s turnover and changing preferences of
consumers create barriers in meeting long as well as short term objectives of company. Also,
strategies implemented by the firm are not working well to retain the buyers. The issue is arising
because of de-motivated workforce as it affects their overall work and they cannot pay attention
on requirement of consumers. Owing to this, present study is being conducted to address all
these issues to enhance the customer satisfaction. Further, study will be done by focusing on two
factors that is level of motivation in employees and its impact on customer satisfaction. This will
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prove to be effective for the corporation to determine long run growth and success of corporation
in the marketplace.
1.4 Literature review
According to Eskildsen, Kristensen and Westlund (2004) motivated employees contribute
towards enhancing the customer satisfaction because of their response and concern towards
potential buyers. This is because; customers directly interact with the service providers or seller.
Owing to this, attitude and emotional appeal of workforce has the direct impact of consumer
satisfaction. However, organization ensures two way communication to ensure smooth flow of
communication among employees and customers but still this affects the level of satisfaction.
Paswan, Pelton and True (2005) asserted that in service industry, employees play a vital
role because of they contribute a positive influence on the customer satisfaction. This assists the
organization to build a positive impact in the marketplace and to persuade buyers for repeat
purchase. Apart from this, organization put efforts to ensure competitive position of company in
the market. For example, it is easy for any corporation to copy other in term of technology,
processes and organization structure but having dedicated employees is require crucial task. In
this regard, Plantinga (2006) reported that employees are influenced by two major factors that is
personal characteristics and workplace environment. This is because; workplace is the foremost
aspect where personnel devote much of their time. In case if they find an inappropriate
environment to work, they get affected in a negative manner and effect of the same can be seen
on customer satisfaction. Apart from this, personal characteristics consists of involvement of
workforce in the decision making process and incorporating their views while bringing change in
the current work environment.
The aforementioned factors play active role in giving motivation to employees so that
they can effectively contribute towards growth and success of the corporation. With the presence
of highly motivated workforce there will be high level of satisfaction among large number of
buyers. Podmoroff (2005) explained that for every organization it is required that employees are
valued and their needs are fulfilled. This aspect of corporation aids to deliver good quality of
services to large number of buyers so as to meet long as well as short term objectives of the
same.
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1.5 Research methodology
The research methodology is the most imperative part of study which consists of several
tools and techniques used in the study. For the current study qualitative type of investigation will
be used. Also, both primary and secondary data will be collected to gain in-depth knowledge for
the study. It leads to gather detail information for the topic under investigation (Punch, 2009). On
the other hand, research interpretivism research philosophy will be used to understand the
assumption and views on which research will be based. In addition to this, descriptive research
design will be used by which researcher can present the findings effectively (Sapsford and Jupp,
2006). Apart from this, thematic analysis will be used to analyze the collected data by
considering formulated research aim and objectives. Thus, selected tools and techniques are
helpful in driving valid conclusion fro the study and accordingly provide recommendation for the
improvement in corporation.
1.6 Action plan
The action plan of project will consist several action which will be covered in the project.
These are listed in following Gantt chart which provide researcher a guideline to complete the
project on right time. It facilitates to complete all research activities on right time so as to
achieve aim of the study. The following Gantt chart is showing that all research activities will be
completed in 16 weeks where research proposal will be prepared in 2 weeks. On the other hand,
background of research project will be prepared in two weeks.
Activity/ weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Preparing research
proposal
Creating a
background of
study
Setting objectives
Application of
various research
methodologies and
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approaches or
Conduct a
literature review
Primary data
collection
Data analysis
Draw Conclusion
Evaluation of the
business proposal
Implementation
1.7 Structure of the project
Structure of present research topic will be divided into several chapter. Each chapter will
provide detail information related to topic, its aim as well as findings. The first chapter of
research project will be of introduction. Under this topic general overview will be provided for
the study. It facilitates to describe all the methodologies to be used in the study. Further, second
chapter is of literature review which include secondary information of study wherein research get
in-depth knowledge. In addition to this, third chapter is of research methodology which will give
detail explanation of methods used for data collection and analysis. It proves to effective in
drawing valid conclusion and reaching at the aim of the study. In addition to this, four section
will be of data analysis which include analysis of collected data. At last fifth chapter is of
conclusion and recommendations wherein conclusion will be drawn in the light of research
objectives and accordingly suggestions will be provided fro the corporation under study.
Therefore, all chapters will be done as per the specified aim and objectives.
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CHAPTER 2: LITERATURE REVIEW
Introduction
Literature review basically refers to as the review on study which is conducted in the
past. Literature review is the most important part of study as it consists of several studies done
previously on the same topic. Under this researcher access to number of sources so as to get
detail information related to topic under investigation. For the present study o impact of
employee motivation on customer satisfaction themes are prepared and accordingly literature
review has been done.
To assess the factors affecting customer satisfaction
According to Bennett and Thiele (2004) customers are the basic unit or element for
whom products and services are designed and sold and all the operations and functioning is
carried out in order to sell those products and services to the customer. For this purpose, it is very
necessary for the enterprise to satisfy their customers. Customer satisfaction refers to as the term
which is often used in marketing and it measures that how well the expectations of the customers
are met out by using the particular product or services. If the customer will not get satisfy then
the products will not get sold.
Jüttner and et. al., (2013) examined that there are various quantitative factor which affect
the satisfaction level of customers. He found that there are correlation between the factors and
customer satisfaction. According to him these factors are billing queue time, number of times
after sales services are provided, customer care waiting time, etc. these factors have a direct
impact on the customer satisfaction. Moreover, it is explained that if these processes takes lesser
time than customer will be highly satisfied because the service of a firm have a more impact than
the product provided to the buyers. On the contrary, Swan and et.al., (2002) argued that thee are
qualitative factors which affect more for determining the level of satisfaction among customer.
He also stated that those factors put a long lasting impact on the minds of a customer than the
quantitative factors. Such factors are that quality and features of the product because if the
product is of high quality and have utmost features than it will meet the expectations of the
customers. Moreover, he commented that the behavior of an employee affects the customer
satisfaction as they can influence them in a more better manner than any other factor. Further, it
can be explained that employee of a firm is providing the best services, the way of interaction is
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quite good than customer will get influence and will buy the product. After the purchase of the
product, if staff member is listening to the complaints and resolving it on the spot than it will rise
the level of satisfaction among buyers. In the support of above discussion, Giese and Cote (2002)
commented that the employee plays a major role and it is considered to be the most important
factor in providing the highest satisfaction to the customers. It is because employees are one
which can influence the customers by providing better services in the form of assisting,
communicating, promoting, after sales services, etc.
To examine several factors associated with employees motivation
As per the viewpoint of Hill Roche and Allen (2007) employees are the human resource
of the company which assist in carrying out the operations and other functional activities in an
organization. Furthermore, employee motivation refers to as the energy, commitment and
creativity which an employee possess for carrying out the work at workplace. Eskildsen,
Kristensen and Westlund (2004) cited that, it is very important for the organization to enhance
the motivation among employees so that efficient working can be done. If the employee is highly
motivated than the performance of a worker will be highly effective and efficient while the low
motivation level will reduce the effectiveness of the performance by an employee.
It has been explained by Manolopoulos (2007) that there are various factors which are
related with the employee motivation. He stated that monetary factors helps in increasing the
level of motivation among employees. For this purpose, there are many monetary incentives
which should be provided to the employees in order to boost the morale in them. Like, bonuses,
extra incentives other than salary, monetary rewards, shared ownership, etc., If these are
provided to the employee than he will get motivated and thus, they will work in accordance to
accomplishment of a company's goal. As per the study of Paswan, Pelton and True (2005) it has
been assessed that enterprise should have appropriate reward system so that employee should
have knowledge about it and work accordingly. Moreover, company must have formalized wage
structure as this act as a motivational factor and employee have satisfaction that they will be paid
in an appropriate manner. This is how monetary incentives acts as a motivational factors for the
employees. However, Plantinga (2006) criticized that monetary factors solely does not prove to
be a factors associated for the employee motivation but there are also the employment of non-
monetary incentives which motivate the employees for working in an efficient manner. He
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explain that the factors are proper performance appraisal, need satisfaction, recognition, non-
monetary rewards, training and development, information about the company's goals, etc. Thus,
he recommended that if employee will be informed about the company's goal than he will get a
direction and thus, they will work in accordance with the achievement of those goal and a proper
guided employee will work more efficiently than less directed. Moreover, if there is unbiased
performance appraisal than it will boost the employee morale so that they can work for getting
better review. Similarly, if there is proper recognition, needs of the employee are getting satisfied
and they are provided with excellent working environment and culture than they will be highly
motivated.
Therefore, the study of Podmoroff (2005) reveals that along with the monetary factors,
the non monetary factors are also associated with the employee motivation and company should
aim to provide both types of incentives in order to raise the level of motivation among
employees. Company should aim to provide motivation as per the theory of Maslow need
hierarchy which states that there are 5 level of needs and if one level get satisfied than people
tends to satisfy next level of need. Similarly in organization, employee have basic needs such as
good salary than next level is of safety need that is there should be job security. If second level
get satisfy than employee look for satisfying third level that is belongingness where employee
get group, teams, etc. Further, than they want to satisfy esteem need that is recognition, rewards,
high position, etc. After that they want to satisfy the need of self actualization in which they want
top most position and promotion.
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(Source: Maslow’s Hierarchy of Needs for a Small Scale Business, 2011)
To analyze the effect of motivated employees on customer satisfaction
It has been perceived by Stum (2001) that highly motivated employee will provide
quality service to the customer and will influence the customer to do repeat business. It is known
that employee are the most important factor for the success and failure of an organization. They
do the research, manufacture the product as per the customer's need, sells the product and
provide after sales services. All these service influence the customers in one or the other manner.
If employees are not satisfied and have a full potential to provide services than they cannot
satisfy the customers at highest. Employee motivation has a direct impact on the customer
satisfaction. It is because, if employee is not motivated than they will not listen to customer's
need and complaints. Moreover, they will not communicate with them in an influential manner
and also the less motivated employee will behave in an inappropriate manner with the customers.
All these factor will leave the employee dissatisfied. However, Namasivayam (2005) argued that
in order to provide good services and satisfy the customers, it is necessary that proper motivation
should be provided to the employees and also training should be provided to them for the
shaping of an attitude and enhancing communication skills among them which will influence the
customers and ultimately satisfy them. Thus, it has been commented by White and Yu, (2005)
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Illustration 1: Maslow's Need Hierarchy Pyramid