OB ASSIGNMENT

TANUSHREE GORAI REG NO: 20BCE1269

TESCO CASE SOLUTION

Taylor ́ s motivational theory

In the year 1911 engineer named Frederick Taylor made one of earliest theories for
motivation. As per this theory, people work merely for money. In beginning years of
car assembly sector, work on the production line actually was on the basis of
producing quantity as well as was very much repetitive. Workers also were paid a
thing called ‘piece rate’, which was paid for each item that was produced. This loom
of paying by results in reality was seen well for business. The result was better
production yet it gave very little opportunity and encouragement to the employees and
made them less creative and innovative (Miner, 2007).

Source: (Fisher, Erdelez and McKechnie, 2005)

Bandura’s Self-Efficacy theory:

Tesco increase the self-efficacy of the employees by gives them the

opportunity to attend many training sessions and developments. Every
employee in Tesco has an access not just to the training they need to do for
their job, but also to leadership training to grow up within the company. And
also we can notice that Tesco opened recently (in 2011) the Tesco’s Asia
academy in South Korea. This academy graduate about 24,000 staff across
Asia, because of such facility we can be sure about the importance of self-
efficacy improvement for the employees in Tesco

Adam’s Equity theory:

Tesco is applying this theory by applying a fair and equal rewards system, it
can be mentioned below:

1. Share our success:

a. Shares in success: Tesco gives the employees whose complete a 1 year of

service and at the end of financial year shares in business.

b. Save as you earn: Tesco give the employees after a 1 year of service a
chance to save 50 £ every 4 weeks for 3-5 years, and the employees is free to
choose either if they want to redeemed as a tax free bonus, or it can be taken
as a cash whenever they want.

2. Staff privilege card: It is a staff loyalty card that gives 10% discount on
most of Tesco’s products.

3. Leisure Time: Tesco gives discounts and special offers for its staff on
theme parks, gym membership. Based on the above we noticed that Tesco
are using one of the best rewards systems which is the shares I business
reward because of such a reward most of Tesco’s employees have the sense
of belonging, and it’s gives them a feeling that the

company cares about them. And also it is one of the best motivating system
(the shares scheme) because the employees know when they perform better
that will increase the Tesco’s profits then the employees will get higher
dividends.