Impact of Motivation on Organizational Performance: A Report

This report provides a comprehensive analysis of motivation in the working environment, exploring various motivational theories such as Mayo's theory, Herzberg's two-factor theory, and Maslow's hierarchy of needs. It examines how these theories are applied in organizations, specifically using Tesco as a case study. The report details the impact of motivation on organizational performance, highlighting how motivated employees contribute to enhanced efficiency, reduced absenteeism, and improved retention rates. Furthermore, it identifies key factors that define the effectiveness of applied motivation theories, including work culture, leadership, resource availability, and communication within teams. The report underscores the importance of aligning motivational strategies with organizational vision and capabilities to achieve long-term success and employee satisfaction. The report concludes by emphasizing the importance of a positive work environment and fair motivation techniques to optimize performance goals.

MOTIVATION IN THE WORKING
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1. Motivation theories..................................................................................................................3
2. Impact of motivation on organisational performance..............................................................4
TASK 2............................................................................................................................................5
Factors defining effectiveness of applied motivation theories ...................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Motivation is defined as the social, cognitive, financial or biological driving force which
inspires or encourages an individual to act according to certain behaviour (Heyns & Kerr, 2018).
It acts as one of the essential organisational aspect to increase the performance of employees as
well as organisation. This report will discuss various motivational theories and the way they are
implemented in leading British retailer- Tesco. It will also include a brief essay on analysis of
factors which affect the motivation theories and their application within organisation.
TASK 1
1. Motivation theories
Various motivational theories which are analysed and implemented by organisations are
as follows:
Mayo:
This theory mainly concerns towards with the employee motivation not only possible
when organization pays good salary or incentives. It mainly depends on relation as well. Without
having positive stratosphere or good relation with other badly impacts on individual attraction
towards with the performing task into business culture. Because employee when do task and day
they provide good services and other employees not communicate with well manner, leaders not
concern to communicate and share experience it affects in employee mind-set that its essential
term to develop positive environment for more productivity and improvement in business culture
(Pyszczynski & et.al., 2021). Tesco company manage higher concern towards with the expansion
of good relation development in their stores and for the good and positive relation expansion its
management mainly concern to take this theory for performance effectiveness and management
of working culture with positive relationship expansion with employees. Mayo theory utilization
develop employee motivation also it encourages and motivate towards with the expansion of
group development which has power to develop sustainability.
Mayo theory clearly represent that business performance effectiveness on possible when
employee perform task with group performance, and they say that employee working
effectiveness and attitude mainly depends on social culture activities or social dimension because
in case other employee prepare group and not engage others into their group like not engage new
employee into group it affects their mind-set. Therefore, it has been summarized that having god
culture or positive environment with relation has power to expansion of effective group with

positive working activities. Application of this theory defiantly develop higher motivation in
organization culture.
Herzberg:
According to this theory there are two factors: motivators and hygiene which inspire
employees to work with greater efficiency.
Motivators: These factor inspire individuals to work beyond their limit for achieving goals. For
instance, Tesco gives it employees attractive reward, financial security, supervision through 360-
degree feedback as well as good relationship via regular team meetings (Mahmoud & et.al.,
2020). These measures make employees highly motivated toward work.
Hygiene: Having this factor in business culture influence raise higher motivation in employee
and it develops more efficiency in working activities. Tesco industry higher consider and engage
towards with the expansion of and addition of hygiene factors involvement in business activities
because employee mainly prefer that when they perform tasks and provide services for growth
and new opportunity expansion of business mainly requires safety, quality, good supervision,
quality of relationship from company culture and senior authority. Also, job security is one of the
most essential or important aspects because without having this term in business because when
senior authority not develop higher consideration towards with this it badly impacts on employee
confidence which is not beneficial for long term so job security is one of the most essential term
when employee provide services for business effectiveness. If these factors are not taken into
consideration, then it can demotivate employees and Tesco may experience higher turnover rates.
Maslow:
According to Maslow’s hierarchy theory human behaviour can be influenced by following
five factors or needs. Thus organisations must emphasis on aiming at meeting these needs of
employees.
Physiological needs: For personal satisfaction and concentration basic needs of employees must
also be fulfilled. For instance, Tesco working environment and remuneration packages are
attractive enough that individuals feel satisfied and proud to be a part of organisation. For this
purpose, Tesco maintain all necessary workplace resources and hygiene condition and includes
employees in decision making. It makes them feel good and empower so that they can work with
more focus (Milliman, Gatling & Kim, 2018).

Safety needs: When workplace environment is safe from workplace hazards then employees can
pay more focus to their performance. Financial security also plays key role. Organisational
stability of Tesco, reward system as well as appreciation to life style diversity makes employee
feel safer. Staff satisfaction survey and daily meeting with line managers of Tesco make
employee highly comfortable in communication with the seniors. Thus employees can easily
tackle all their insecurities and can manage their performance.
Love and belongingness: For long term retention it is necessary for Tesco that its employees
must have sense of connectivity and emotional attachment with the firm (Gagné, Deci & Ryan,
2018). Thus Tesco also focus on team development and work place relationships so that there is
positive culture and conflicts does not discourage any employee from interacting or presenting
any idea.
Esteem needs: In order to meet the esteem needs such as skill development Tesco adopt variety
of measures. The personal development plan is built on basis of 360-degree feedback so that
individuals can accomplish their growth targets. To help individual with career planning Tesco
also provide them training and planning help so that individual can grow with organisation. It
helps to retain employees for long term.
Self-actualisation needs: It is equally important for Tesco to meet the actualisation needs of staff
members. When employees feel valued, confident and in state to access development opportunity
then they used to work with greater focus. For instance, Tesco reward scheme provide financial
benefits to employees (Popovich, 2021). Along with the monetary benefits Tesco also gives
working environment to enhance skill and knowledge. Good training programs and staff
satisfaction survey in which employees express their concerns about lifestyle or career tend to be
highly motivating for the employees of Tesco.
2. Impact of motivation on organisational performance
Motivation is an important driving force for enhancing the organisational performance.
There are complex challenges and stressful situations which every individual has to face and thus
to keep their performance highly standardised and efficient motivation tool act as mandatory
measure. When employees of Tesco are motivated then it gives them immense strength and
positive outlook to serve better for the company (Van Beverhoudt, 2021). For instance, there are
situations when Tesco employees have to put in their extra efforts for gaining competitive

advantage. In such situations Employee reward scheme of Tesco create a spark among
employees to work beyond their limit so that they can achieved the reward and appreciation. In
similarly way small gestures such as flexible working hour, gym membership encourage
employee to focus on work with better productivity. When Tesco takes these measures for their
employee then staff members used to enjoy at work place and thus their absenteeism is also
reduced and it significantly contribute in improving employee retention rate (Steinbauer & et.al.,
2018). When employees have self-willingness to accomplish their role and job duties then it
improves their efficiency and concentration at work. Thus operational quality is improved and
there are reduced chances of operational error. Lack of motivation can have adverse impact on
employee perspective as well as task efficiency. For instance, if any individuals at Tesco are not
satisfied with the hygiene or work condition or does not feel appreciated at work place then they
may not take initiatives to achieve goals. They will simply follow instructions and will remain in
search of opportunities to search for another job. Motivation also act as driving for achieving
work competencies and skills. When development needs of employees are satisfied by training
programs initiated by Tesco leaders then it makes them passionate about bringing creativity in
work and to achieve realistic goals. It also makes them think that organisation is progressive and
great opportunity for their development as well. Such changes make it easy for Tesco to easily
manage resources and to implement necessary changes for gaining competitive benefits. Fair
motivation techniques also create a positive culture at workplace which is necessary for
optimising the performance goals (Manganelli & et.al., 2018). Lack of motivation can make
work environment unfair and unproductive and thus Tesco performance may degrade. Also,
Tesco company leaders highly concern to towards with the new practices and management
theory application because it’s clearly evaluate that without positive culture in business work
environment impacts and effects on individual motivation and it has possibility and chances to
raise employee turnover problems as well. With appropriate and sustainable rules of motivation
and practices Tesco company highly influence their business performance because it mainly
concerns and believes on utilization of rules which develop motivation in employee because its
beneficial approach for task management and effectiveness management with effectiveness work
culture development.

TASK 2
Factors defining effectiveness of applied motivation theories
For long term success organisations use various approaches and techniques of motivation.
Tesco also uses different measures to ensure that its workforce is positive and inspired to achieve
even complex work goals. However, implementation of motivation theories is not an easy task.
Organisation need to consider different factors which influences these motivational theories. The
first factor which affects effectiveness of motivation is work culture and balance between
personal and professional life. There are organisations in which employees are not provided with
any kind of flexibility (Ling, Kothe & Mullan, 2019). Though they are given high job security
and financial rewards but their psychological needs and personal life is threatened to great
extent. In such situation motivational policies always proves to be ineffective. All individuals
have different needs.
Thus some individuals may get motivated with high pay scale but others may prefer
flexible working. Thus for better results it is required that a favourable and flexible work culture
must be developed. Another crucial factor affecting motivation is leadership. It is equally
important that leaders must have open communication and fair judgement and abilities so that
they can truly recognise the potential of others without any bias. It is very common that
employees usually do not have any complaints with reward system but they are highly
dissatisfied with the way in which employees are chosen for appreciation or rewards (Anderman,
2020). Thus it is the responsibility of the leaders to ensure that fair rewards and motivation is
given to each and every employee of organisation.
The third factor which plays a considerable role in employee motivation is resource
availability. With increasing competition in retail sectors organisations like Tesco are finding it
very hard to retain their talented employees. The competitive organisations of Tesco used to
provide some better resources or motivation factor. Though Tesco has shown good measures of
motivation but sometimes it may not be feasible for organisation to ensure all resources for
motivation which are expected by employees. The motivation resources or techniques must align
with the organisational vision and capabilities. However, these may not meet employee
expectation and thus they may feel de-motivate.
Tesco is very successful and huge brand and thus resource availability does not have
much impact on the effectiveness of motivation. However sometimes legislative barriers or

cultural diversity at work place can impose a limitation towards organisational efforts to
motivate their employees. It has been also observed that certain motivational needs such as
emotional or cognitive can be easily managed via communication. Thus the ways in which teams
communicate with each other and the way in which interaction takes place in work culture also
has great impact upon the emotional needs of employees and can affect their performance to
great extent (Wang & et.al., 2019). For improved motivation outcomes companies must ensure
that employees must be given a free environment to express themselves and leaders must
regularly take feedbacks from the employees.
CONCLUSION
It can be concluded from the above discussion that for sustainable growth and
performance it is necessary that employees must be motivated regularly. Motivation must not
only meet financial needs but it must also consider other aspects such as social and security
needs, recognition need as well as emotional needs. Thus it can also be stated that without a
highly motivated workforce organisation cannot sustain high performing employees and
competitive benefits.

REFERENCES
Books and Journals
Anderman, E.M., (2020). Achievement motivation theory: Balancing precision and
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Gagné, M., Deci, E.L. & Ryan, R.M., (2018). Self-determination theory applied to work
motivation and organizational behavior.
Heyns, M.M. & Kerr, M.D., (2018). Generational differences in workplace motivation. SA
Journal of Human Resource Management. 16(1). pp.1-10.
Ling, M., Kothe, E.J. & Mullan, B.A., (2019). Predicting intention to receive a seasonal
influenza vaccination using Protection Motivation Theory. Social Science &
Medicine. 233. pp.87-92.
Mahmoud, A.B. & et.al., (2020). “We aren't your reincarnation!” workplace motivation across
X, Y and Z generations. International Journal of Manpower.
Manganelli, L. & et.al., (2018). Self-determination theory can help you generate performance
and well-being in the workplace: A review of the literature. Advances in Developing
Human Resources. 20(2). pp.227-240.
Milliman, J., Gatling, A. & Kim, J.S., (2018). The effect of workplace spirituality on hospitality
employee engagement, intention to stay, and service delivery. Journal of Hospitality
and Tourism Management. 35. pp.56-65.
Popovich, S.V., (2021). Motivation theories and ways to improve it in your workplace.
Pyszczynski, T., & et.al., (2021). Terror management theory and the COVID-19
pandemic. Journal of Humanistic Psychology. 61(2). pp.173-189.
Steinbauer, R. & et.al., (2018). Workplace ostracism, self-regulation, and job performance:
Moderating role of intrinsic work motivation. The Journal of social
psychology.158(6). pp.767-783.
Van Beverhoudt, S.A., (2021). Self-Interested Behavior, Employee Motivation, Job Satisfaction,
and Workplace Performance (Doctoral dissertation, Grand Canyon University).
Wang, J. & et.al., (2019). Travellers' self-protections against health risks: An application of the
full Protection Motivation Theory. Annals of Tourism Research.78. p.102743.