Analyzing Employee Motivation's Impact on Tesco's Business

This report examines the impact of employee motivation on performance and business growth, using Tesco as a case study. The introduction outlines the research project, its aims, objectives, and the rationale behind the study, highlighting the importance of employee motivation for productivity and profitability in a competitive market. The literature review provides a theoretical framework, while the methodology chapter details the research philosophy, approach, strategy, design, data collection methods (questionnaires), and sampling techniques. Data analysis focuses on key themes such as performance recognition, attractive rewards (salary), the motivational impact of rewards, and their importance in retaining high-performing employees. The findings, based on a questionnaire survey of Tesco employees, indicate that salary increases are a primary motivator and that rewards significantly enhance employee engagement and commitment. The report concludes with recommendations for Tesco's management to improve employee motivation and drive business success.

UNIT 8 RP

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Research Project Description................................................................................................1
1.2 Research aim and objectives.................................................................................................2
1.3 Literature Review..................................................................................................................2
1.4 Research Methodology..........................................................................................................3
1.5 Structure of Research Project................................................................................................4
CHAPTER 2 -Literature Review.....................................................................................................6
2.1 Introduction ..........................................................................................................................6
2.2 Literature Review..................................................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................11
3.1 Methodology, Methods and Techniques.............................................................................11
3.2 Sampling.............................................................................................................................13
3.3 Data Collection....................................................................................................................13
3.4 Ethical Considerations........................................................................................................14
CHAPTER 4 – Data collection and analysis ................................................................................15
4.1 Data collection....................................................................................................................17
4.2 Data analysis and Discussion..............................................................................................17
.......................................................................................................................................................19
CHAPTER 5- Conclusions and recommendations........................................................................29
5.1 Conclusions.........................................................................................................................29
5.2 Recommendation.................................................................................................................29
5.3 Areas to further study..........................................................................................................30
REFERENCES..............................................................................................................................31

CHAPTER 1: INTRODUCTION
1.1 Research Project Description
Title: “Employee motivation and its impact on the performance of employees and growth of
business. A case of Tesco.”
Introduction
In order to increase the productivity and profitability and to sustain in the competitive
market economy, it is essential for the business manager to keep their employee motivated and
satisfied (Závadský, Hitka and Potkány, 2015). Employee motivation is the degree of energy,
commitment and creativity that organisational employee brings to their job. Whether the
economy is growing or shrinking, finding ways to motivate employees is always a management
concern. Competing theories stress either incentives or employee involvement (Conrad, Ghosh
and Isaacson, 2015). In according with this context, the following research project will aid in
analysing the impact of employee motivation on their performance and growth of the
organisation by examining case of Tesco. The research project will be precisely and
systematically structured so that end users will able to comprehend it adequately. Appropriate
research methodology will be use in the following research project to increase its effectiveness.
Data will be collected as questionnaire format which will be given to the employees of Tesco, so
that their views can be gather. Eventually, recommendations will be provided by the researcher
to the management of Tesco so that they can move forward and made certain changes to increase
their effectiveness.
Background of study
In the era of globalisation and trade liberalisation, many new emerging organisations are
establishing and capturing market rapidly (Kampf, Hitka and Potkány, 2014). This lead to
increase in the competitive market situations in the market economy of United Kingdom. Tesco
is one of the leading British multinational grocery and general merchandise retailer with
headquarters in Welwyn Garden City, Hertfordshire, England. There are over 6553 stores
currently operating within and outside the boundary of United Kingdom with more than 475000
employees (Naile and Selesho, 2014). Thus, the organisation is suitable to analyse the impact of
employee motivation on their performance and growth of business.
Rationale of study
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The research project is based on analysing the impact of employee motivation on their
performance and growth of business by examining the case study of Tesco. The reason for
conducting the research project is to gather the information about the importance of employee
motivation and satisfaction. This will help the researcher, end users as well as managers of Tesco
to identify the level of motivations and changes they need to incorporate so that effectiveness in
the quality of products and profits can be increases.
1.2 Research aim and objectives
Aim
“To analyse the impact of employee motivation on their performance and growth of
business at Tesco.”
Objectives
 To explore the motivational level of employees at Tesco.
 To identify the impact of motivation on the performance of employees at Tesco.
 To investigate the commonly used motivation theories and approaches by the managers
of Tesco. To provide recommendations so that improvements can be made in the organisation.
Research Questions
 How to explore the motivational level of employees at Tesco?
 How do you identify the impact of motivation on the performance of employees at
Tesco?
 How you will investigate the commonly used motivation theories and approaches by the
managers of Tesco?
1.3 Literature Review
Literature review is the second chapter of research project where researcher will identify
and analyse the relevant articles and journals which are written by senior authors and scholars.
Literature review is an essential chapter of research project. It gives strong evidence to the
research and researcher will able to expand the level of knowledge about the title of study. In the
following research project, the researcher will analyse academic articles, journals, books for
literature review purpose. It will aim to give a robust theoretical framework for the research
project.
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1.4 Research Methodology
Research methodology is the third chapter of research project where researcher will aim
to use precise tools of research. In order to accomplish the aim and objectives of the research
project, it is very important for the researcher to use appropriate research methods. In this
context, the appropriate research methods are described below: Research Philosophy: Research philosophy the belief of the way through which the data
will be collected, analysed and interprets (Mackey and Gass, 2015). There are four types
of research philosophies and in this research project, the researcher will aim to use
positivism research philosophy. It relies on quantifiable observation that drive themselves
to statistical analysis. Research Approach: Research approach is the way through which the research will
going to conduct (Flick, 2015). There are three types of research approaches and in this
research project, the researcher will use both deductive and inductive approach of
research. This will help the researcher to accomplish the aims and objective of research. Research Strategy: Research strategies are general plan and guidelines through which the
researcher will able to achieve the goals and objective of research. In the following
research study, researcher will use both qualitative and quantitative research strategy. Research Design: Research design is the plan through which the researcher will answer
the research questions (Gast and Ledford, 2014). In the following research project,
researcher will use descriptive research design to answer the research questions. Data Collection: Data collection is the process of collecting and gathering relevant data
and information so that researcher will able to attain the aims and objectives of research
project. There are two sources of collection of data which are primary and secondary
source of data. In primary source, the data has been collected by researcher himself or
herself. Data will be collected as questionnaire format which will be given to employees
and workers working at Tesco. It will comprise both close and open ended questions. Sampling: Sampling is the process of taking small proportion of data from large pool of
information. In the following study, the researcher will take sample of 50 employees by
using simple random sampling method.
 Data Analysis: In the present research project, researcher will aim to use thematic
analysis for interpreting collected data adequately.
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1.5 Structure of Research Project
To accomplish the aim and objectives of research project, it is important for researcher to
construct research study precisely and systematically. The structure of research study is
described below: Chapter 1: Introduction- This is the first chapter of research project where researcher
will provide brief information about the title, rationale, research methodologies and
structure of research study. This chapter will aid in providing guidelines through which
end users will easily able to comprehend the aims and objectives research project. Chapter 2: Literature Review- This is the second chapter of research study, where
researcher will analyse the reviews of other authors and scholars to provide theoretical
framework for the research study. Chapter 3: Research Methodology- Research methodologies is the third chapter of
research project. Here researcher will describe the methodologies used by the researcher
for accomplishing the aims and objectives of the research study. Chapter 4: Findings and Analysis- This is the fourth chapter of research project, where
researcher will analysis and generate meaningful information from the data he or she has
collected. Chapter 5: Conclusion and Recommendations- This is the fifth and last chapter of
research project where researcher will provide synopsis of the present study. Further,
recommendations will be provided so that improvements can be made efficiently.
Activities and timeline
Activity 1th
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Identify
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Review of
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Drafting
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ogies
Complete
Proposal
Design
question
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Analysing
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Discussion
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Editing &
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CHAPTER 2 -Literature Review
2.1 Introduction
The current knowledge, substantive findings, statistical ad methodological contributions
to specific topics are been included in literature review . They are secondary sources and are
mostly linked with academic- oriented literature. In order to remain competitive and survive in
the long run organization mustLazaroiu, G., 2015 adapt to he changes in the market. The
managers seek for competitive advantage to stay competitive (Fu and Deshpande, 2014). On the
individual performance if the employees the overall organizational performance is dependent. It
is essential to study the factors that affect the individual and group performance in order to
increase the level of performance of employees. The factors such as motivation, job satisfaction,
organizational commitment etc affect the performance of the employees. In this chapter 2 the
employee motivation in context with performance of employees in the company will be
discussed. The research variable of the current study is employee motivation and employee
performance. In order to evaluate the impact of employee motivation on employee perforce this
research will be making use of research findings derived from literature review. A conceptual
framework is been framed by the researcher after examining the research findings that is been
obtained from the literature review.
2.2 Literature Review
Employee motivation
As stated by Lazaroiu, (2015), employee motivation can be defined as the creativity,
commitment and energy level in the organization. In order to motivate or encourage employees
an organization make use of different techniques for enhancing the economy and organization
performance. To motivate the employees that are working in the organization the life insurance,
health care, child care availability, company cars etc are some benefits that are been provided by
the company to its employees. On various factor such as performance appraisals, employee
motivation , employee satisfaction, compensation etc the performance of employees are
dependent on functionally. Among employees in the organization employee motivation is one of
the polices of managers to enhance the effectual job management. More success if been
formulated in the workplace due to motivation as the employees areas enhancing for improved
practices to complete their work. In order to motivate and retain skillful employees the different
methods of motivation are implemented by corporate organization. For enhancing the
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productivity of employees and longevity of employees within the organization the rewards'
system and flexibility in job design are the major motivators. However as per Paillé and Jin,
(2014), there are also factors that enhance the performance such as by giving training to
employees their skills can be improved. On the contrary it is been observed that when the
security in job is less and excess of pressure on the employees to performance better then it may
lead to high staff turnover. While retaining employees the manger must find ways to improve
performance. The absenteeism, high staff turnover can be prevented from this and also the
performance of the organization will also be maximized. By giving the employees the
opportunity to be art in decision-making process employee empowerment cab be enhanced and
towards the company this will also increase the commitment of the employees . In the
organization the performance of the employee can be maximized by appreciating their hard-work
and efforts and by rewarding high performances.
Types of motivation
By the intrinsic and extrinsic factors the motivation is highly stimulated. In enhancing the
performance of the employees these factors have a leading role. As per Lee, Back and Chan,
(2015), the extrinsic motivation is termed as external factors which stimulates the employee
performance and such as benefits, salary, bonuses, promotions, fringe etc are tangible rewards
that can be touched and feel. On the contrary intrinsic motivation is the inside desire of the
employee to do well for achieving the goals of the organization and to the psychological rewards
such as appreciation, recognition, development etc it is been related. In order to enhance the
performance of the employees it been discovered that both intrinsic and extrinsic factors are
highly required. In order to keep the employees motivated the extrinsic reward include monetary
rewards or cash rewards .The expectation of individual employees are been catered by extrinsic
rewards. It is been stated by Pulakos and Moye, (2015.), that it is the most efficient incentive
technique to increase the productivity of employees .On the contrary it is been stated by Nyberg,
Pieper and Trevor,( 2016), there is short -term influence of pay for performance notion. By
giving motivation the organization make sure that perception is been made among employees
that they are valuable asset for the company and it is been valued by the management that in the
progress of the company they play an essential role. The workforce moral is been boosted in this
way. The productivity will be more if the moral of the workforce is high both at the individual
and at organization level.
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Theories of motivation
Maslow's theory – By Mash low one of the earliest works in employee motivation and
satisfaction of job was presented. In motivation theories this work is considered as pioneer and
for many other theories it is served as a basis. Related to behavior of organization and
satisfaction of job Maslow's work provided valuable notions, concepts and ideas. As per this
theory there are some basic level of needs of a individual that needs to be fulfilled before a
individual develops strong desire for need of higher-level. By Ma-slow the term “meta
motivation” was coined in order to present the motivation level of a person which attempts to go
beyond the basic needs and constantly strives for improvement. The brain of human is complex
and the processes runs parallel and simultaneously. According to Nyberg, Pieper and Trevor,
(2016), the motivation level of a individual is affected due to theses process. The clear
statements were made by Maslow in context with these levels and on the satisfaction of a
person. For this study mash low theory is essential as it provides the most basic fact that
fulfilling the basic needs of a individual does not guarantee motivation. When a person is willing
to aim for improvement then motivation occurs. The meeting of basic requirements such as
salary do not guarantee encouragement to the employees to enhance and improve their
performance. The management need to target some higher level of needs in order to motivate
employees for constant improvement. In relation with motivation, the incentives need to be
provided to the employees by the management to pursue continuous improvement .
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Illustration 1: Maslow's theory
(Source:Maslow's Hierarchy of Needs, 2017)

Herzberg two factor theory – The herzberg two factor theory is one of the most prominent
theories that establish relationship between performance of the employees and motivation. In
order to help employees to excel at their jobs there are various factors that motivate employees.
On the works of maslow and porter herzberg based his theory .By meeting the low level needs of
employees the satisfaction in employees is not possible. The basic befits such as salaries, plenty
of working space etc do not make sure that employees are satisfied with the job. The higher
requirements of the employees needs to be met by the manager especially psychological needs
such as appreciation and recognition as stated Shin and Konrad, (2017). By planning personal
and professional development of employees the manager should seek improvement job .The
motivation and hygiene factors are being recognized by herzberg tow -factor theory that will
increase the performance of the employees. In order to excel employees at their job motivation
factors motivate employees and hygiene factors make sure that workforce remains happy and
satisfied at the job. The factors that develop satisfaction of job are different form the factors that
develop dissatisfaction of job among employees. In order to explain rge effective of these factors
the hygiene theory is been developed satisfied factors or motivators are the factors that increase
the satisfaction and the factors that develops dissatisfaction are termed as hygiene factor. As per
this theory it is been suggested both these factors need to be devoted by the managers. In order
to maximize trhe satisfaction in employee they must improve the former and discourage the later.
Different ways to motivate workers
As per Aryee, and Otaye,( 2016), for the hard-work and commitment of the employees
the incentives and bonuses can be provided to them as the extra beneficent motivation level of
the employees will be boosted from this and through this they will become more sincerer and
committed towards their job or work. In this category the pension schemes, paid leaves , family
tours etc are also included in this category. For the growth and development of the employees the
company can also provide training to its employees and involvement programs , talent session
etc .From this the employees will be highly motivated and they will become more productive and
committed towards the company and their employees turnover ratio will be less. In order to
increase the sales and profitability they will also highly support the firm. On the contrary note by
the working environment high impact is been influenced on the employee performance. The real
boosters of employee motivation are the achievement that is been received from the work that
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they do. The employee motivation is stimulated due to work security, satisfaction and safety etc.
The performance of the employees can be improved due to favourable environment .The most of
the employee motivation techniques that is being adopted by many organization to motivate and
encourage employees are rewarding polices, incentive schemes, enhancement employee
appraiser systems etc. The motivational and satisfaction of the employees can be increase if the
employee is doing right job as per his/her personality and skills etc. In order to maintain a high-
level of employee motivation a safe and secure environment need to be given to them. More
motivation can be given to the worker by providing them with human resource polices, flexible
time , work from home etc. The great motivational tools is creating a positive and employee-
friendly company culture.
Impact of employee motivation on performance of the organization
The livelihood of the company are its employees. About the work that they do and
outcomes received from the work directly have an impact on the performance of the
organization. For an instance if in the organization the employees are highly encourages,
motivated and energetic they will do anything in order to achieve the goals and objectives of the
business. In order to address any potential challenge as they keep the track of performance of the
industry. The organizational stability is build from the two- prong approach. On the contrary note
as stated by Chadwick, Super and Kwon,( 2015), if the motivation among the employees is low
then it is vulnerable to both internal and external challenge as the additional mile will not be take
by the employees to maintain stability of the organization. The under- performance is bee
achieved if the organization is unstable. The less working being will be accomplished of there is
a lack of motivation. To the performance and future success of the organization the increased
productivity can be denied Due to decreased success of the organization also there can be low
motivation. In comparison, with nobody motivated employees the motivated employees are
more proactive for the organization. With different likes and dislikes the employees are
individuals and will be motivated with different things. In a very impressive way the work will
be done by the employees if they are motivated and satisfied and happy. The output will also be
good in this case and however on the other side the motivate employees will also motive their
employees that are working in the organization. In decision-making process it is essential to
involve the employees. In the process the realistic expectation need to be created. Motivated
employee plays an essential role in accelerating development of organization. All the goals and
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